HF 2441

1st Engrossment - 94th Legislature (2025 - 2026) Posted on 06/03/2025 11:10am

A bill for an act
relating to jobs; establishing a biennial budget for workforce, labor, and economic
development; appropriating money for the Department of Employment and
Economic Development, Explore Minnesota, Department of Labor and Industry,
Workers' Compensation Court of Appeals, and Bureau of Mediation Services;
making various policy and technical changes; requiring reports; amending
Minnesota Statutes 2024, sections 116J.431, subdivision 2; 116J.8733, subdivision
4; 116J.8752, subdivision 2; 116L.03, subdivision 2; 116L.04, subdivisions 1, 1a;
116L.05, subdivision 5; 116L.562, subdivisions 1, 3; 116L.98, subdivision 2;
116U.05; 116U.06; 116U.15; 116U.30; 116U.35; 177.27, subdivision 5; 181.211,
subdivisions 7, 8; 181.988, subdivision 2; 248.07, subdivisions 7, 8; 326B.0981,
subdivision 4; 326B.198, subdivisions 2, 3; 326B.31, subdivision 29; 326B.33,
subdivision 21; 469.54, subdivision 4; Laws 2023, chapter 53, article 20, section
2, subdivisions 2, as amended, 3, as amended; article 21, section 7, as amended;
Laws 2023, chapter 64, article 15, section 30; Laws 2024, chapter 120, article 1,
sections 2, subdivision 3; 4; Laws 2024, chapter 127, article 14, section 3; repealing
Minnesota Statutes 2024, sections 116L.35; 116L.98, subdivision 7; Laws 2024,
chapter 120, article 1, section 13.

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 "2026" and "2027" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2026, or June 30, 2027,
respectively. "The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The
biennium" is fiscal years 2026 and 2027.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2025 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 2026 new text end		new text begin 2027 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 145,034,000 new text end

new text begin $ new text end

new text begin 109,490,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 80,513,000 new text end	new text begin 80,513,000 new text end
new text begin Family and Medical Benefit Insurance new text end	new text begin 40,544,000 new text end	new text begin 5,000,000 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 23,277,000 new text end	new text begin 23,277,000 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 20,489,000 new text end

new text begin 20,489,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 19,789,000 new text end	new text begin 19,789,000 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 (a) $1,037,000 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, 2029.
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) $2,725,000 each year is for the small
business assistance partnerships program
under Minnesota Statutes, section 116J.682.
All grant awards must be for two consecutive
years. Grants must be awarded in the first year.
The department may use up to five percent of
the appropriation for administrative purposes.
new text end

new text begin (d) $350,000 each year is for administration
of the community energy transition office
under Minnesota Statutes, section 116J.5491.
new text end

new text begin (e) $1,022,000 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 (f) $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 (g) $139,000 each year is for the Center for
Rural Policy and Development.
new text end

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

new text begin (i) $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 (j)(1) $1,500,000 each year is for grants to
local communities to increase the number of
quality child care providers to support
economic development. Fifty percent of grant
money must go to communities located outside
the seven-county metropolitan area as defined
in Minnesota Statutes, section 473.121,
subdivision 2.
new text end

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

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

new text begin (k) $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 (l) $1,000,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations. This appropriation is available
until June 30, 2029. The Minnesota Initiative
Foundations must use grant money under this
section to:
new text end

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

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

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

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

new text begin (m) $1,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761.
new text end

new text begin (n) $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 is
available until expended. Of this amount, up
to four percent is for administration and
monitoring of the program.
new text end

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

new text begin (p) $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 (q) $3,000,000 each year is for the CanStartup
program under Minnesota Statutes, section
116J.659.
new text end

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

new text begin 26,615,000 new text end

new text begin 26,615,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 11,263,000 new text end	new text begin 11,263,000 new text end
new text begin Workforce Development new text end	new text begin 15,352,000 new text end	new text begin 15,352,000 new text end

new text begin (a) $500,000 each year is from the workforce
development fund 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) $1,275,000 each year is for the
transformative career pathways 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.
new text end

new text begin (c) $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 (d) $3,990,000 each year from the general fund
and $5,954,000 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 (e) $500,000 each year is from the workforce
development fund for current Minnesota
affiliates of OIC of America, Inc. This
appropriation must be divided equally among
the eligible centers.
new text end

new text begin (f) $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, job 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 (g) $1,125,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals including 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 paragraph 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 (h) $1,500,000 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 must be for two consecutive
years. Grants must be awarded in the first year.
new text end

new text begin (i) $1,000,000 each year is from the workforce
development fund for the youthbuild program
under Minnesota Statutes, sections 116L.361
to 116L.366.
new text end

new text begin (j) $4,050,000 each year is from the workforce
development fund for the Minnesota youth
program under Minnesota Statutes, sections
116L.56 and 116L.561.
new text end

new text begin (k) $750,000 each year is for the Office of
New Americans under Minnesota Statutes,
section 116J.4231.
new text end

new text begin (l) $25,000 each year is for a grant to the
University of Minnesota Tourism Center for
ongoing system maintenance, management,
and content updates for 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.
new text end

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

new text begin (n)(1) $250,000 each year is for the
commissioner to, in consultation with the
commissioner of children, youth, and families,
purchase and operate an online early childhood
development professional educator program
to be available at no cost to early childhood
educators, Minnesota residents, and high
school students. Of this amount, up to $50,000
each year is for reimbursing participating
schools for the expense of supporting the
program. School reimbursements must be done
on a first-come, first-served basis, though at
least 50 percent must go to schools outside the
seven-county metropolitan area, as defined in
Minnesota Statutes, section 473.121,
subdivision 2.
new text end

new text begin (2) The program selected must:
new text end

new text begin (i) include all of the coursework in English or
Spanish necessary to earn a child development
associate credential upon successful
completion;
new text end

new text begin (ii) provide courses allowing for the award of
continuing education units accredited by the
International Accreditors for Continuing
Education and Training;
new text end

new text begin (iii) provide health and safety courses meeting
federal annual training requirements under the
child care development block grant and the
child care and development fund;
new text end

new text begin (iv) be usable for students in high school
career and technical programs if requested by
school districts;
new text end

new text begin (v) be based on research and developmentally
appropriate practices as defined by national
professional organizations such as the National
Association for the Education of Young
Children;
new text end

new text begin (vi) include content that spans early childhood
development from birth to age five and that
covers topics such as developmental
milestones, health and safety, working with
children with special needs, supporting
families, the Science of Reading, and running
a high-quality early education program;
new text end

new text begin (vii) include videos, interactive games,
knowledge checks, and writing assignments;
new text end

new text begin (viii) have a system for program administrators
and state agencies to capture course
completion data, certification status, and
individual and group professional development
progress;
new text end

new text begin (ix) be accessible on a range of computers,
tablets, and mobile devices;
new text end

new text begin (x) include professional development
opportunities that are both synchronous and
asynchronous;
new text end

new text begin (xi) foster a professional learning community
with access to early childhood content experts
and opportunities to share knowledge with
peers around the country;
new text end

new text begin (xii) provide a user-friendly system with
support by a customer help desk; and
new text end

new text begin (xiii) support a professional development
system housed on a learning management
system with proven capability to provide
reliable simultaneous access to a network of
early educators.
new text end

new text begin (o) $448,000 each year is for a grant to the
Minnesota STEM Ecosystem. Grant money
must be used to support STEM learning
opportunities and workforce development
within the science and technology areas. The
Minnesota STEM Ecosystem may award
grants to programs that support STEM
learning and workforce development to ensure
strategic alignment of STEM initiatives across
the state.
new text end

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

new text begin 5,028,000 new text end

new text begin 5,028,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General Fund new text end	new text begin 4,933,000 new text end	new text begin 4,933,000 new text end
new text begin Workforce Development new text end	new text begin 95,000 new text end	new text begin 95,000 new text end

new text begin Of these amounts, $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 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.
new text end

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

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

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

new text begin 41,691,000 new text end

new text begin 41,691,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 33,861,000 new text end	new text begin 33,861,000 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) $16,800,000 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) $2,555,000 each year is for grants to
programs that provide employment support
services to persons with mental illness under
Minnesota Statutes, sections 268A.13 and
268A.14.
new text end

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

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

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

new text begin 8,425,000 new text end

new text begin 8,425,000 new text end

new text begin Of these amounts, $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 Subd. 8. new text end new text begin Paid Leave new text end

new text begin 40,544,000 new text end

new text begin 5,000,000 new text end

new text begin This appropriation is from the family and
medical benefit insurance account for the
purposes of Minnesota Statutes, chapter 268B.
new text end

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

new text begin $ new text end

new text begin 17,032,000 new text end

new text begin $ new text end

new text begin 17,032,000 new text end

new text begin Of these amounts, $500,000 each year must
be matched from nonstate sources to develop
maximum private sector involvement in
tourism. Each $1 of state incentive must be
matched with $6 of private sector money.
"Matched" means revenue to the state or
documented in-kind, soft match, or cash
expenditures directly expended to support
Explore Minnesota under Minnesota Statutes,
section 116U.05. The incentive in fiscal year
2026 is based on fiscal year 2025 private
sector contributions. The incentive in fiscal
year 2027 is based on fiscal year 2026 private
sector contributions. This incentive is ongoing.
new text end

Sec. 4. new text begin DEPARTMENT OF LABOR AND INDUSTRY 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 51,128,000 new text end

new text begin $ new text end

new text begin 50,657,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 9,160,000 new text end	new text begin 9,179,000 new text end
new text begin Family and Medical Benefit new text end	new text begin 366,000 new text end	new text begin -0- new text end
new text begin Workers' Compensation new text end	new text begin 34,776,000 new text end	new text begin 34,652,000 new text end
new text begin Workforce Development new text end	new text begin 6,826,000 new text end	new text begin 6,826,000 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 General Support new text end

new text begin 10,990,000 new text end

new text begin 11,300,000 new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

new text begin Subd. 3. new text end new text begin Labor Standards new text end

new text begin 9,031,000 new text end

new text begin 8,731,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,969,000 new text end	new text begin 7,035,000 new text end
new text begin Family and Medical Benefit new text end	new text begin 366,000 new text end	new text begin -0- new text end
new text begin Workforce Development new text end	new text begin 1,696,000 new text end	new text begin 1,696,000 new text end

new text begin (a) $2,046,000 each year is for wage theft
prevention.
new text end

new text begin (b) $1,696,000 each year is from the
workforce development fund for prevailing
wage enforcement.
new text end

new text begin (c) $355,000 each year is for education and
training related to employee misclassification.
new text end

new text begin (d) $1,899,000 each year is for enforcement
and other duties regarding earned sick and safe
time under Minnesota Statutes, chapter 177,
and sections 181.9445 to 181.9448.
new text end

new text begin (e) $134,000 each year is for outreach and
enforcement efforts related to changes to the
nursing mothers, lactating employees, and
pregnancy accommodations law under
Minnesota Statutes, chapter 181.
new text end

new text begin (f) $169,000 each year is for the purposes of
the Safe Workplaces for Meat and Poultry
Processing Workers Act.
new text end

new text begin (g) $141,000 each year is to inform and
educate employers relating to Minnesota
Statutes, section 181.960.
new text end

new text begin (h) $123,000 each year is for the purposes of
enforcement, education, and outreach
regarding Minnesota Statutes, sections
181C.02 and 181C.03.
new text end

new text begin (i) $366,000 the first year and $0 the second
year are from the family and medical benefit
insurance account for the purposes of
Minnesota Statutes, chapter 268B.
new text end

new text begin (j)(1) $163,000 each year is for the
misclassification fraud impact report and for
legal, technical, and clerical staff support for
the report. Amounts appropriated are available
in either year and are available until June 30,
2027.
new text end

new text begin (2) The commissioner of labor and industry
may enter into interagency agreements with
the commissioners of employment and
economic development and revenue to transfer
funds appropriated under clause (1) to cover
costs associated with the misclassification
fraud impact report.
new text end

new text begin Subd. 4. new text end new text begin Workers' Compensation new text end

new text begin 15,725,000 new text end

new text begin 15,725,000 new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

new text begin Subd. 5. new text end new text begin Workplace Safety new text end

new text begin 8,061,000 new text end

new text begin 7,627,000 new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

new text begin Subd. 6. new text end new text begin Employment-Based Initiatives new text end

new text begin 2,404,000 new text end

new text begin 2,404,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 33,000 new text end	new text begin 33,000 new text end
new text begin Workforce Development new text end	new text begin 2,371,000 new text end	new text begin 2,371,000 new text end

new text begin (a) $500,000 each year is from the workforce
development fund for the dual-training
pipeline program. Of this amount, $200,000
each year is for the identification of
competency standards under Minnesota
Statutes, section 175.45, for fields other than
the legal cannabis industry.
new text end

new text begin (b) $33,000 each year is to identify
occupational competency standards and
provide technical assistance for developing
dual-training programs under Minnesota
Statutes, section 175.45, for the legal cannabis
industry.
new text end

new text begin (c) $1,500,000 each year is from the workforce
development fund for youth skills training
grants under Minnesota Statutes, section
175.46.
new text end

new text begin (d) $371,000 each year is from the workforce
development fund for administration of the
youth skills training grants program under
Minnesota Statutes, section 175.46.
new text end

new text begin Subd. 7. new text end new text begin Combative Sports new text end

new text begin 254,000 new text end

new text begin 254,000 new text end

new text begin Subd. 8. new text end new text begin Apprenticeship new text end

new text begin 4,259,000 new text end

new text begin 4,259,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 1,500,000 new text end	new text begin 1,500,000 new text end
new text begin Workforce Development new text end	new text begin 2,759,000 new text end	new text begin 2,759,000 new text end

new text begin (a) $1,000,000 each year is from the workforce
development fund for labor education and
advancement program grants under Minnesota
Statutes, section 178.11.
new text end

new text begin (b) $225,000 each year is from the workforce
development fund for grants to Building
Strong Communities, Inc. for the Helmets to
Hardhats Minnesota initiative. Grant money
must be used to recruit, retain, assist, and
support National Guard, reserve, and active
duty military members' and veterans'
participation in apprenticeship programs
registered with the Department of Labor and
Industry and connect service members and
veterans with career training and employment
in the building and construction industry. The
recruitment, selection, employment, and
training must be without discrimination due
to race, color, creed, religion, national origin,
sex, sexual orientation, marital status, physical
or mental disability, receipt of public
assistance, or age.
new text end

new text begin (c) $1,500,000 each year is for a registered
teacher apprenticeship competitive grant
program. Funds must be awarded through a
competitive request for proposal process.
Grant awards must be used to establish,
administer, and operationalize registered
teacher apprenticeship programs and joint
apprenticeship training committees statewide
in accordance with the requirements of
Minnesota Statutes, chapter 178. Grant money
may be used to:
new text end

new text begin (1) fund personnel costs;
new text end

new text begin (2) design and update related instruction for
the programs in coordination with teacher
preparation providers approved by the
Professional Educators Licensing and
Standards Board;
new text end

new text begin (3) purchase equipment, training materials,
and software licenses for apprentice tracking
systems for the programs;
new text end

new text begin (4) fund marketing costs associated with the
recruitment of signatory school districts,
journeyworker teachers, and apprentices; and
new text end

new text begin (5) fund subawards to signatory school
districts to offset costs for participation in the
program. Subawards may be used for:
new text end

new text begin (i) apprentice tuition, scholarships, and other
supportive services; and
new text end

new text begin (ii) journeyworker teacher stipends.
new text end

new text begin Grant money may not be used to pay for
apprentice wages and registered apprentices
must not incur any cost for their participation
in the apprenticeship programs.
Notwithstanding any law to the contrary,
payments under clause (5) must not be
considered income, assets, or personal
property for purposes of determining eligibility
or recertifying eligibility for aid authorized by
Minnesota Statutes, section 136A.1465.
new text end

new text begin By January 15 every year, beginning in 2028,
the commissioner must report to the legislative
committees with jurisdiction over kindergarten
through grade 12 education, higher education,
labor, and workforce development on how
teacher apprenticeship program funding was
used and recommendations for statutory or
rule changes to facilitate program
improvement and expansion of teacher
apprenticeship programs as a pathway to
teacher licensure.
new text end

new text begin Subd. 9. new text end new text begin Nursing Home Workforce Standards Board new text end

new text begin 404,000 new text end

new text begin 357,000 new text end

Sec. 5. new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end

new text begin 3,775,000 new text end

new text begin $ new text end

new text begin 3,775,000 new text end

new text begin Of these amounts, $751,000 each year is for
purposes of the Public Employment Relations
Board under Minnesota Statutes, section
179A.041.
new text end

Sec. 6. new text begin WORKERS' COMPENSATION COURT OF APPEALS new text end

new text begin $ new text end

new text begin 2,962,000 new text end

new text begin $ new text end

new text begin 2,895,000 new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

Sec. 7. new text begin DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin $250,000 each year is for child care
improvement grants under Minnesota Statutes,
section 142D.20, subdivision 3, paragraph (a),
clause (7). Notwithstanding Minnesota
Statutes, section 16B.98, subdivision 14, the
amount for administrative costs under these
appropriations is $0.
new text end

ARTICLE 2

APPROPRIATION MODIFICATIONS

Section 1.

Laws 2023, chapter 53, article 20, section 2, subdivision 2, as amended by Laws
2024, chapter 120, article 1, section 6, is amended to read:

Subd. 2. Business and Community Development

195,061,000

139,104,000

Appropriations by Fund
General	193,011,000	137,054,000
Remediation	700,000	700,000
Workforce Development	1,350,000	1,350,000

(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.

(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.

(c) $2,500,000 the first year is for Launch
Minnesota. This is a onetime appropriation.
Of this amount:

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

(2) $500,000 is for administration of Launch
Minnesota; and

(3) $500,000 is for grantee activities at Launch
Minnesota.

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

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

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

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

(iii) partner with large businesses;

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

(v) assist with scientific and technical writing;

(vi) help manage federal grants and contracts;
and

(vii) support cost accounting and sole-source
procurement opportunities.

(e) $10,000,000 the first year is for new text begin transfer to
new text end the Minnesota Expanding Opportunity Fund
Program new text begin special revenue account new text end under
Minnesota Statutes, section 116J.8733. This
is a onetime deleted text begin appropriation deleted text end new text begin transfer new text end and is
available until June 30, 2025.

(f) $6,425,000 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 for this appropriation is $2,725,000
in fiscal year 2026 and each year thereafter.

(g) $350,000 each year is for administration
of the community energy transition office.

(h) $5,000,000 each year is transferred from
the general fund to the community energy
transition account for grants under Minnesota
Statutes, section 116J.55. This is a onetime
transfer.

(i) $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.

(j) $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.

(k) $389,000 each year is for the Center for
Rural Policy and Development. The base for
this appropriation is $139,000 in fiscal year
2026 and each year thereafter.

(l) $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.

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

(n) $6,500,000 each year is 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 for this appropriation
is $1,500,000 in fiscal year 2026 and each year
thereafter.

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.

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.

(o) $500,000 each year is for the Office of
Child Care Community Partnerships. Of this
amount:

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

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

(p) $3,500,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations. This appropriation is available
until June 30, 2027. The base for this
appropriation is $1,000,000 in fiscal year 2026
and each year thereafter. The Minnesota
Initiative Foundations must use grant money
under this section to:

(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;

(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;

(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

(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.

(q) $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.

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

(s) $4,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761.
The base for this appropriation is $2,246,000
in fiscal year 2026 and each year thereafter.
This appropriation is available until expended.

(t) $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.

(u) $325,000 the first year is for the Minnesota
Film and TV Board. The appropriation 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
up to $50,000 is available on July 1 even if
the required matching contribution has not
been received by that date. This is a onetime
appropriation.

(v) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

(w) $500,000 the first 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. This is a
onetime appropriation.

(x) $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.

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

(z) $47,475,000 the first year and $50,475,000
the second year are for the PROMISE grant
program. This is a onetime appropriation and
is available until June 30, 2027. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
the second year. Of this amount:

(1) $475,000 each year is for administration
of the PROMISE grant program;

(2) $7,500,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations to serve businesses in greater
Minnesota. Of this amount, $600,000 each
year is for grants to businesses with less than
$100,000 in revenue in the prior year; and

(3) $39,500,000 the first year and $42,500,000
the second year are for grants to the
Neighborhood Development Center. Of this
amount, the following amounts are designated
for the following areas:

(i) $16,000,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods. Of this
amount, $1,000,000 each year is for grants to
businesses with less than $100,000 in revenue
in the prior year;

(ii) deleted text begin $13,500,000 deleted text end new text begin $12,500,000 new text end each year is for
South Minneapolis' Lake Street, 38th and
Chicago, Franklin, Nicollet, and Riverside
corridors. Of this amount, $750,000 each year
is for grants to businesses with less than
$100,000 in revenue in the prior year;

(iii) $10,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods. Of this amount,
$750,000 each year is for grants to businesses
with less than $100,000 in revenue in the prior
year;

(iv) $1,000,000 the first year is for South
Minneapolis' Hennepin Avenue Commercial
corridor, South Hennepin Community
corridor, and Uptown Special Service District;
and

(v) $3,000,000 the second year is for grants
to businesses in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and
Washington, excluding the cities of
Minneapolis and St. Paul.

(aa) $15,150,000 each year is for the
PROMISE loan program. This is a onetime
appropriation and is available until June 30,
2027. Of this amount:

(1) $150,000 each year is for administration
of the PROMISE loan program;

(2) $3,000,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations to serve businesses in greater
Minnesota; and

(3) $12,000,000 each year is for grants to the
Metropolitan Economic Development
Association (MEDA). Of this amount, the
following amounts are designated for the
following areas:

(i) $4,500,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods;

(ii) $4,500,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
Franklin, Nicollet, and Riverside corridors;
and

(iii) $3,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods.

(bb) $1,500,000 each year is for a grant to the
Metropolitan Consortium of Community
Developers for the community wealth-building
grant program pilot project. Of this amount,
up to two percent is for administration and
monitoring of the community wealth-building
grant program pilot project. This is a onetime
appropriation.

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

(dd) $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. In selecting vendors
and exhibitors for Expo 2027, the host
organization shall prioritize outreach to,
collaboration with, and inclusion of businesses
that are majority owned by people of color,
women, and people with disabilities. The host
organization and 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. If the
project is not approved by the Bureau
International des Expositions, the money shall
transfer to the Minnesota investment fund
under Minnesota Statutes, section 116J.8731.
Any unencumbered balance remaining at the
end of the first year does not cancel but is
available for the second year.

(ee) $5,000,000 the first year is for a grant to
the Neighborhood Development Center for
small business programs, including training,
lending, business services, and real estate
programming; small business incubator
development in the Twin Cities and outside
the seven-county metropolitan area; and
technical assistance activities for partners
outside the seven-county metropolitan area;
and for high-risk, character-based loan capital
for nonrecourse loans. 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.

(ff) $5,000,000 the first year is for transfer to
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, and the remainder is for a grant to
the Local Initiatives Support Corporation -
Twin Cities to serve as a partner organization
under the program. This is a onetime
appropriation.

(gg) $5,000,000 the first year is for the
Canadian border counties economic relief
program under article 5. Of this amount, up
to $1,000,000 is for Tribal economic
development and $2,100,000 is for a grant to
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.

(hh) $1,000,000 each year is for a grant to
African Economic Development Solutions.
This is a onetime appropriation and is
available until June 30, 2026. Of this amount:

(1) $500,000 each year is for a loan fund that
must address pervasive economic inequities
by supporting business ventures of
entrepreneurs in the African immigrant
community; and

(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.

(ii) $1,500,000 each year is for a grant to the
Latino Economic Development Center. This
is a onetime appropriation and is available
until June 30, 2025. Of this amount:

(1) $750,000 each year is to assist, support,
finance, and launch microentrepreneurs by
delivering training, workshops, and
one-on-one consultations to businesses; and

(2) $750,000 each year is to guide prospective
entrepreneurs in their start-up process by
introducing them to key business concepts,
including business start-up readiness. Grant
proceeds must be used to offer workshops on
a variety of topics throughout the year,
including finance, customer service,
food-handler training, and food-safety
certification. Grant proceeds may also be used
to provide lending to business startups.

(jj) $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.

(kk) $2,000,000 the first year is for a grant to
WomenVenture to:

(1) support child care providers through
business training and shared services programs
and to create materials that could be used, free
of charge, for start-up, expansion, and
operation of child care businesses statewide,
with the goal of helping new and existing child
care businesses in underserved areas of the
state become profitable and sustainable; and

(2) 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 the money include but are not
limited to:

(i) leasehold improvements;

(ii) additions, alterations, remodeling, or
renovations to rented space;

(iii) inventory or supplies;

(iv) machinery or equipment purchases;

(v) working capital; and

(vi) debt refinancing.

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 is a onetime
appropriation and is available until June 30,
2026.

By December 15, 2026, WomenVenture must
submit a report to the chairs and ranking
minority 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.

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

(mm) $5,000,000 the first year is for a grant
to the African Development Center to provide
loans to purchase commercial real estate and
to expand organizational infrastructure. This
appropriation is available until June 30, 2025.
Of this amount:

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

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

(3) $836,000 is for increasing organizational
capacity;

(4) $300,000 is for the safe 2 eat project of
inclusive assistance with required restaurant
licensing examinations; and

(5) $700,000 is for a center for community
resources for language and technology
assistance for small businesses.

(nn) $7,000,000 the first year is for grants to
the Minnesota Initiative Foundations to
capitalize their revolving loan funds, which
address unmet financing needs of for-profit
business start-ups, expansions, and ownership
transitions; nonprofit organizations; and
developers of housing to support the
construction, rehabilitation, and conversion
of housing units. Of the amount appropriated:

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

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

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

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

(5) $2,000,000 is for a grant to the Initiative
Foundation of which $1,000,000 is for
redevelopment of the St. Cloud Youth and
Family Center; and

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

(oo) $500,000 each 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.
This is a onetime appropriation. 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:

(1) the grants awarded during the past 12
months;

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

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

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

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

(1) at least 33.3 percent to businesses owned
by members of racial minority communities;
and

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

(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 is a
onetime appropriation and is available until
June 30, 2026.

(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:

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

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

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.

(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. The grant
recipient under this paragraph shall submit
reports on the uses of the money appropriated,
the number of jobs created due to the
appropriation, wage information, and the city
and state in which the additional
manufacturing activity was located to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
economic development. An initial report shall
be submitted by December 15, 2023, and a
final report is due by December 15, 2025. This
is a onetime appropriation.

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

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

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

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

(ww) $80,000 the first year is for a grant to
the Neighborhood Development Center for
small business competitive grants to software
companies working to improve employee
engagement and workplace culture and to
reduce turnover.

(xx)(1) $3,000,000 in the first year is for a
grant to the Center for Economic Inclusion for
strategic, data-informed investments in job
creation strategies that respond to the needs
of underserved populations statewide. This
may include 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. This appropriation is
available until June 30, 2025.

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

(yy) $500,000 the first year is for a grant to
the Asian Economic Development Association
for asset building and financial empowerment
for entrepreneurs and small business owners,
small business development and technical
assistance, and cultural placemaking. This is
a onetime appropriation.

(zz) $500,000 each year is for a grant to
Isuroon to support primarily African
immigrant women with entrepreneurial
training to start, manage, and grow
self-sustaining microbusinesses, develop
incubator space for these businesses, and
provide support with financial and language
literacy, systems navigation to eliminate
capital access disparities, marketing, and other
technical assistance. This is a onetime
appropriation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively to July 1, 2023.
new text end

Sec. 2.

Laws 2023, chapter 53, article 20, section 2, subdivision 3, as amended by Laws
2024, chapter 120, article 1, section 7, is amended to read:

Subd. 3. Employment and Training Programs

112,038,000

104,499,000

Appropriations by Fund
	2024	2025
General	91,036,000	83,497,000
Workforce Development	21,002,000	21,002,000

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

(b) $25,000,000 each year is 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:

(1) $18,500,000 each year is for job and
entrepreneurial skills training grants under
Minnesota Statutes, section 116L.43,
subdivision 2;

(2) $1,500,000 each year is for diversity and
inclusion training for small employers under
Minnesota Statutes, section 116L.43,
subdivision 3; and

(3) $5,000,000 each year is for capacity
building grants under Minnesota Statutes,
section 116L.43, subdivision 4.

The base for this appropriation is $1,275,000
in fiscal year 2026 and each year thereafter.

(c) $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.

(d) $10,000,000 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. This is
a onetime appropriation.

(e) Of the amounts appropriated in paragraph
(d), the commissioner must make $7,000,000
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
(d). Education and training may include:

(1) student tutoring and testing support
services;

(2) training and employment placement in high
wage and high growth employment;

(3) assistance in obtaining industry-specific
certifications;

(4) remedial training leading to enrollment in
employment training programs or services;

(5) real-time work experience;

(6) career and educational counseling;

(7) work experience and internships; and

(8) supportive services.

(f) Of the amount appropriated in paragraph
(d), $2,000,000 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 (d). Grant awards may
be used for:

(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;

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

(3) industry-specific training.

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

(1) serve as the primary contact for businesses
in that area;

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

(3) work with the local area board and its
partners to identify candidates for openings in
small and midsize companies in the local area.

(h) $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.

(i) $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.

(j) $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.

(k) $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.

(l) $750,000 each year from the general fund
and $6,698,000 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 for this appropriation is $750,000
from the general fund and $3,348,000 from
the workforce development fund beginning in
fiscal year 2026 and each year thereafter.

(m) $1,093,000 each year is from the general
fund and $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota Statutes,
sections 116L.361 to 116L.366. The base for
this appropriation is $1,000,000 from the
workforce development fund in fiscal year
2026 and each year thereafter.

(n) $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. The base for this
appropriation is $0 from the general fund and
$4,050,000 from the workforce development
fund in fiscal year 2026 and each year
thereafter.

(o) $750,000 each year is for the Office of
New Americans under Minnesota Statutes,
section 116J.4231.

(p) $1,000,000 each year from the workforce
development fund 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.

(q) $750,000 each year is for grants to the
Minneapolis Park and Recreation Board's Teen
Teamworks youth employment and training
programs. This is a onetime appropriation and
available until June 30, 2027. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
in the second year.

(r) $900,000 each year is for a grant to Avivo
to provide low-income individuals with career
education and job skills training that is fully
integrated with chemical and mental health
services. 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. This is a onetime
appropriation.

(s) $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. This is a onetime
appropriation.

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

(u) $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:

(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

(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.

(v) $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.

(w) $1,000,000 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:

(1) $900,000 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

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

(x) $250,000 each year from the workforce
development fund 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.

(y) $250,000 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. This is a onetime
appropriation.

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

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

(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.

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

(aa) $1,500,000 each year from the workforce
development fund 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.

(bb) $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.

(cc) $2,000,000 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:

(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;

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

(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.

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

(dd) $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.

(ee) $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.

(ff) $450,000 each year is for grants to
Minnesota Diversified Industries to provide
inclusive employment opportunities and
services for people with disabilities. This is a
onetime appropriation.

(gg) $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.

(hh) $1,264,000 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.

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

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

(kk) $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 for this appropriation
is $25,000 in fiscal year 2026 and each year
thereafter for ongoing system maintenance,
management, and content updates.

(ll) $3,000,000 the first year is for competitive
grants to support high school 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.
This is a onetime appropriation and is
available until June 30, 2028.

(mm) $750,000 each year is for grants to the
nonprofit Sanneh Foundation to fund
out-of-school and summer programs focused
on mentoring and behavioral, social, and
emotional learning interventions and
enrichment activities directed toward
low-income students of color. This is a
onetime appropriation and available until June
30, 2027.

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

(oo) $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.

(pp) $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.

(qq) $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.

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

(ss) $3,000,000 each year is for a grant to
Community Action Partnership of Hennepin
County. This is a onetime appropriation. Of
this amount:

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

(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.

(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. Any unencumbered
balance remaining at the end of the first year
does not cancel but is available in the second
year.

(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. This is a onetime
appropriation.

(vv) $400,000 each year from the workforce
development fund is for a grant to Hired to
expand their career pathway job training and
placement program that connects lower-skilled
job seekers to entry-level and gateway jobs in
high-growth sectors. This is a onetime
appropriation.

(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.

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

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

(zz) $589,000 the first year and $588,000 the
second year are for grants to the Black
Women's Wealth Alliance to provide
low-income individuals with job skills
training, career counseling, and job placement
assistance. This is a onetime appropriation.

(aaa) $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.

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.

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

(ccc) $500,000 each year is for a grant to
Ramsey County for a technology training
pathway program focused on intergenerational
community tech work for residents who are
at least 18 years old and no more than 24 years
old and whose household income is at or
below 200 percent of the federal poverty level.
Grant money may be used for program
administration, training, training stipends,
wages, and support services. This is a onetime
appropriation new text begin and is available until December
31, 2027 new text end .

(ddd) $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.

(eee) $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.

(fff) $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 is a onetime appropriation
and available until June 30, 2026.

(ggg) $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.

(hhh) $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.

(iii) $3,000,000 each year is for a grant to
Youthprise to provide economic development
services designed to enhance long-term
economic self-sufficiency in communities with
concentrated African populations deleted text begin statewide.
Of these amounts, 50 percent is for subgrants
to Ka Joog and 50 percent is for competitive
subgrants to community organizations deleted text end new text begin by
offering subgrants to community
organizations new text end . This is a onetime appropriation new text begin
and money is available until June 30, 2026 new text end .

(jjj) $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. This is a
onetime appropriation.

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

(lll) $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.

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.

(mmm) $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.

(nnn) $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.

(ooo) $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.

(ppp) $500,000 each year is for a grant to Al
Maa'uun, formerly the North at Work program,
for a strategic intervention program designed
to target and connect program participants to
meaningful, sustainable living wage
employment. This is a onetime appropriation.

(qqq) $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.

(rrr) $500,000 each year is for a grant to the
Central Minnesota Community Empowerment
Organization for 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.

(sss) $270,000 each year is for a grant to the
Stairstep Foundation for community-based
workforce development efforts. This is a
onetime appropriation.

(ttt) $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. This is a onetime
appropriation.

(uuu) $150,000 each year is for prevailing
wage staff under Minnesota Statutes, section
116J.871, subdivision 2.

(vvv) $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:

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

(2) on-the-job training opportunities with local
businesses;

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

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

(www)(1) $250,000 each year is for a grant
to Greater Rochester Advocates for
Universities and Colleges (GRAUC), a
collaborative organization representing health
care, business, workforce development, and
higher education institutions, for expenses
relating to starting up a state-of-the-art
simulation center for training health care
workers in southeast Minnesota. Once
established, this center must be self-sustaining
through user fees. Eligible expenses include
leasing costs, developing and providing
training, and operational costs. This is a
onetime appropriation.

(2) By January 15, 2025, GRAUC must submit
a report, including an independent financial
audit of the use of grant money, to the chairs
and ranking minority members of the
legislative committees having jurisdiction over
higher education and economic development.
This report must include details on the training
provided at the simulation center, including
the names of all organizations that use the
center for training, the number of individuals
each organization trained, and the type of
training provided.

(xxx)(1) $350,000 each year is for a grant to
the Minnesota Association of Black Lawyers
for a pilot program supporting black
undergraduate students pursuing admission to
law school. This is a onetime appropriation.

(2) The program must:

(i) enroll an initial cohort of ten to 20 black
Minnesota resident students attending a
baccalaureate degree-granting postsecondary
institution in Minnesota full time;

(ii) support each of the program's students with
an academic scholarship in the amount of
$4,000 per academic year;

(iii) organize events and programming,
including but not limited to one-on-one
mentoring, to familiarize enrolled students
with law school and legal careers; and

(iv) provide the program's students free test
preparation materials, academic support, and
registration for the Law School Admission
Test (LSAT) examination.

(3) The Minnesota Association of Black
Lawyers may use grant funds under clause (1)
for costs related to:

(i) student scholarships;

(ii) academic events and programming,
including food and transportation costs for
students;

(iii) LSAT preparation materials, courses, and
registrations; and

(iv) hiring staff for the program.

(4) By January 30, 2024, and again by January
30, 2025, the Minnesota Association of Black
Lawyers must submit a report to the
commissioner and to the chairs and ranking
minority members of legislative committees
with jurisdiction over workforce development
finance and policy and higher education
finance and policy. The report must include
an accurate and detailed account of the pilot
program, its outcomes, and its revenues and
expenses, including the use of all state funds
appropriated in clause (1).

(yyy) $2,000,000 the first year is for a grant
to the Power of People Leadership Institute
(POPLI) to expand pre- and post-release
personal development and leadership training
and community reintegration services, to
reduce recidivism, and increase access to
employment. This is a onetime appropriation
and is available until June 30, 2025.

(zzz) $500,000 the first year is to the
Legislative Coordinating Commission for the
Working Group on Youth Interventions. This
is a onetime appropriation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Laws 2023, chapter 53, article 21, section 7, as amended by Laws 2024, chapter
120, article 1, section 12; and Laws 2024, chapter 125, article 8, section 9, is amended to
read:

Sec. 7. APPROPRIATIONS.

(a) $50,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund
account to the commissioner of employment and economic development deleted text begin for providing
businesses with matching funds required by federal programs deleted text end . Money awarded under this
program is made retroactive to February 1, 2023, for applications and projects. The
commissioner may use up to two percent of this appropriation for administration. This is a
onetime appropriation and is available until deleted text begin June 30, 2027 deleted text end new text begin spent new text end . deleted text begin Any funds that remain
unspent are canceled to the general fund.
deleted text end

(b) $100,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund
account to the commissioner of employment and economic development to match existing
federal funds made available in the Consolidated Appropriations Act, Public Law 117-328.
This appropriation must be used to (1) construct and operate a bioindustrial manufacturing
pilot innovation facility, biorefinery, or commercial campus utilizing agricultural feedstocks
or (2) for a Minnesota aerospace center for research, development, and testing, or both (1)
and (2). This appropriation is not subject to the grant limit requirements of Minnesota
Statutes, section 116J.8752, subdivisions 4, paragraph (b), and 5. Notwithstanding Minnesota
Statutes, section 116J.8752, subdivision 4, paragraph (a), this appropriation may include
land acquisition as an eligible use to construct a bioindustrial manufacturing pilot innovation
facility, a biorefinery, and an aerospace center for research, development, and testing. The
commissioner may use up to two percent of this appropriation for administration. This is a
onetime appropriation and is available until deleted text begin June 30, 2027 deleted text end new text begin spent new text end . deleted text begin Any funds that remain
unspent are canceled to the general fund.
deleted text end

(c) $240,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund
account to the commissioner of employment and economic development to match federal
funds made available in the Chips and Science Act, Public Law 117-167. Money awarded
under this program is made retroactive to February 1, 2023, for applications and projects.
This appropriation is not subject to Minnesota Statutes, section 116J.8752, subdivision 5.
The commissioner may use up two percent for administration. This is a onetime appropriation
and is available until deleted text begin June 30, 2027 deleted text end new text begin spent new text end . deleted text begin Any funds that remain unspent are canceled to
the general fund.
deleted text end

(d) The commissioner may use the appropriation under paragraph (c) to allocate up to
15 percent of the total project cost with a maximum of $75,000,000 per project for the
purpose of constructing, modernizing, or expanding commercial facilities on the front- and
back-end fabrication of leading-edge, current-generation, and mature-node semiconductors;
funding semiconductor materials and manufacturing equipment facilities; and for research
and development facilities.

(e) The commissioner may use the appropriation under paragraph (c) to award:

(1) grants to institutions of higher education for developing and deploying training
programs and to build pipelines to serve the needs of industry; and

(2) grants to increase the capacity of institutions of higher education 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 50
percent of the total project funding from other sources. Use of this funding must be supported
by businesses receiving funds under clause (1).

(f) Money appropriated in paragraphs (a), (b), and (c) may be transferred between
appropriations within the Minnesota forward fund account by the commissioner of
employment and economic development with approval of the commissioner of management
and budget. The commissioner must notify the Legislative Advisory Commission at least
15 days prior to changing appropriations under this paragraph.

Sec. 4.

Laws 2023, chapter 64, article 15, section 30, is amended to read:

Sec. 30. APPROPRIATION; CITY OF MINNEAPOLIS; GRANT.

(a) $10,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of employment and economic development for a grant to the city of
Minneapolis. This is a onetime appropriation. deleted text begin The grant must be paid by July 15, 2023. deleted text end The
city of Minneapolis may use up to one percent of the grant for administrative costs. new text begin This
appropriation is available until June 30, 2027.
new text end

(b) Of the amount granted to the city of Minneapolis under paragraph (a), $8,000,000
must be used for a grant to a foundation that provides business advising, branding and
marketing support, and real estate consulting to businesses located on Lake Street in
Minneapolis, between 30th Avenue South and Nicollet Avenue. The organization must use
the funds for direct business support or direct corridor support, including assistance with
marketing, placemaking, and public relations services.

(c) Of the amount granted to the city of Minneapolis under paragraph (a), $2,000,000
must be used for property acquisition in the city of Minneapolis at 1860 28th Street East
and 2717 Longfellow Avenue.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Laws 2024, chapter 120, article 1, section 2, subdivision 3, is amended to read:

Subd. 3. Employment and Training Programs

$

-0-

$

12,207,000

Appropriations by Fund
	2024	2025
General	-0-	50,000
Workforce Development	-0-	12,157,000

(a) $400,000 the second year is from the
workforce development fund for a grant to
Sabathani Community Center for specialized
community outreach and engagement, a
marketing and communication plan, program
evaluation, personal empowerment training
for men, empowerment and truancy
curriculum for youth, wellness training for
seniors, a workforce strategies mentorship and
jobs training program, a 15-passenger van,
and service kiosks for the Sabathani
Community Center, including a onetime paid
internship to support these programs. This is
a onetime appropriation.

(b) $700,000 the second year is from the
workforce development fund for a grant to the
Shakopee Chamber Foundation for the
Shakopee area workforce development
scholarship pilot program. This is a onetime
appropriation and is available until June 30,
2027. The commissioner of employment and
economic development may enter into an
interagency agreement with the Office of
Higher Education, including agreements to
transfer funds and to administer the program.

(c) $100,000 the second year is from the
workforce development fund for a grant to
Inspire Change Clinic for their health care
fellowship program designed to create
pathways to medicine for high school and
college students interested in pursuing a career
in the health care workforce. The health care
fellowship program is intended to remove
barriers for minority students, foster
inclusivity and diversity in the health care
sector, and provide valuable opportunities for
students, including mentorship programs,
access to renowned health institutions in the
state of Minnesota, and hands-on work
experience. In addition to the reporting
requirements in section 14, the commissioner
must include the number of participants served
by the grant and provide information about
program outcomes. This is a onetime
appropriation.

(d) $250,000 the second year is from the
workforce development fund for a grant to
Bolder Options Youth Mentoring Program to
provide disadvantaged youth ages 12 to 22
with intensive one-to-one wellness,
goal-setting, and academic-focused
mentorship; programming that teaches life and
job-seeking skills; career and college
achievement coaches; and connections to
employment, job training, and education
opportunities. The grant must serve youth in
the Bolder Options program in the Twin Cities
and the city of Rochester. In addition to the
reporting requirements in section 14, the
commissioner must include the number of
participants served by the grant. This is a
onetime appropriation.

(e) $1,000,000 the second year is from the
workforce development fund for a grant to
Change Starts With Community for a violence
prevention program. Grant money must be
used to establish a comprehensive workforce
development initiative, specifically tailored
for at-risk youth and adults, located on site at
Shiloh Cares Food Shelf in the city of
Minneapolis. This is a onetime appropriation.

(f) $100,000 the second year is from the
workforce development fund for a grant to
InspireMSP to develop programming to assist
middle school-aged children in Minneapolis
and St. Paul to develop an interest in and
connect with the creative industry in
Minnesota. Money must be used for program
development and career exploration in the
creative industry for historically excluded
youth by providing access to essential
resources, networks, and hands-on experience.
This is a onetime appropriation.

(g) $100,000 the second year is from the
workforce development fund for a grant to
Lake County Ambulance Service to establish
a training program for Cook County and Lake
County high school students interested in
pursuing careers as emergency medical
technicians. This is a onetime appropriation.

(h) $350,000 the second year is from the
workforce development fund for a grant to the
city of Austin to develop and implement
training programs for water operators and
wastewater operators. Riverland Community
College must offer the training programs. This
is a onetime appropriation and is available
until June 30, 2027. Of this amount, the city
of Austin may use up to five percent for
administration of the program. The
commissioner must provide an annual report
by January 5 of each year until January 5,
2028, regarding the use of grant funds under
this paragraph to the chairs and ranking
minority members of the legislative
committees with jurisdiction over economic
development and higher education. The report
must include the number of students enrolled
and number of students who have completed
courses funded by this appropriation.

(i) $250,000 the second year is from the
workforce development fund for a grant to the
Greater Minneapolis Council of Churches for
a STEM training and career preparation
program targeted at the needs of BIPOC youth.
The program shall serve youth who are at least
11 years of age and less than 24 years of age
and shall provide career training, job skills
development, mentorship, and employment
opportunities. This is a onetime appropriation
and is available until June 30, 2027.

(j) $200,000 the second year is from the
workforce development fund and is for a grant
to the Jobs Foundation for direct training,
support services, safety enhancements, and
economic support for formerly incarcerated
individuals participating in the Repowered
work readiness program. This is a onetime
appropriation.

(k) $100,000 the second year is from the
workforce development fund for a grant to the
North Minneapolis Pet Resource Center, also
known as Mypitbullisfamilycom.Inc,
Community Animal Medicine Professionals
(CAMP) program to provide training,
professional development workshops,
mentorship and leadership programs, and
develop recruitment and retention strategies.
This is a onetime appropriation.

(l) $1,000,000 the second year is from the
workforce development fund and is for a grant
to African Immigrants Community Services
for workforce development for new
Americans. This is a onetime appropriation.

(m) $1,000,000 the second year is from the
workforce development fund and is for a grant
to WomenVenture for supporting child care
providers by providing business training,
mentorship, services, and educational
materials, by facilitating shared administrative
staff and pooled management of services such
as banking and payroll, by providing child
care management software and software
training, and by distributing subgrants and
loans, which may be forgivable at
WomenVenture's discretion. This is a onetime
appropriation and is available until June 30,
2027.

(n) $1,000,000 the second year is from the
workforce development fund and is for a grant
to the Black Chamber of Commerce for
technical support to Black-owned small
businesses, for implementing initiatives to
address barriers facing the Black business
community, and for networking, mentorship,
and training programs. This is a onetime
appropriation and is available until June 30,
2027.

(o) $250,000 the second year is from the
workforce development fund and is for a grant
to the Karen Organization of Minnesota for
job training and financial support and
incentives for job training participants. This
is a onetime appropriation.

(p) $100,000 the second year is from the
workforce development fund and is for a grant
to Indigenous Roots for soft skills training and
career readiness training for youth. This is a
onetime appropriation.

(q) $100,000 the second year is from the
workforce development fund and is for a grant
to Ramsey County for a subgrant with People
in Action to provide workforce development
programming. This amount is available until
June 30, 2026, and 40 percent of the amount
must be expended within the city of St. Paul.
Grants provided by People in Action must be
awarded through at least two requests for
proposals. This is a onetime appropriation.

(r) $500,000 the second year is from the
workforce development fund and is for a grant
to the Metro Youth Diversion Center to
support its Youth-Care Assessment and
Readiness Education program to enhance
workforce development opportunities for
youth with a focus on underrepresented East
African students. This is a onetime
appropriation.

(s) $174,000 the second year is from the
workforce development fund and is for a grant
to Independent School District No. 709,
Duluth, for a software subscription to facilitate
the career planning of students. This is a
onetime appropriation.

(t) $171,000 the second year is from the
workforce development fund and is for a grant
to Independent School District No. 704,
Proctor, to develop a regional career and
technical education program to serve
Independent School District No. 704, Proctor,
Independent School District No. 700,
Hermantown, and Independent School District
No. 99, Esko. This is a onetime appropriation.

(u) $1,000,000 the second year is from the
workforce development fund and is for a grant
to the city of Brooklyn Park for the Brooklyn
Park Small Business Center and for the city
to expand the workforce development
programming of Brooklyn Park and Brooklyn
Center through workforce development
programs serving primarily underrepresented
populations, including such programs as
Brooklynk, Career Pathways, Youth
Entrepreneurship, and Community Partnership.
This is a onetime appropriation and is
available until June 30, 2027.

(v) $500,000 the second year is from the
workforce development fund and is for a grant
to Riverside Plaza Tenant Association to
address employment, economic, and
technology access disparities for low-income
unemployed or underemployed individuals
through training in health care, technology,
and construction or skilled trades industries.
This is a onetime appropriation.

(w) $300,000 the second year is from the
workforce development fund and is for a grant
to African Career, Education, and Resources,
Inc., to develop a program for health care
skills training and computer skills training in
collaboration with the Organization of
Liberians in Minnesota. This is a onetime
appropriation.

(x) $75,000 the second year is from the
workforce development fund and is for a grant
to Equitable Development Action for it to fund
programs and provide technical assistance to
underserved businesses. This is a onetime
appropriation.

(y) $50,000 the second year is from the
workforce development fund and is for a grant
to HIRPHA International for use on youth
apprenticeships, entrepreneurship training,
computer skills, and work readiness training.
This is a onetime appropriation.

(z) $200,000 the second year is from the
workforce development fund and is for a grant
to YWCA St. Paul for a strategic intervention
program designed to target and connect
program participants to meaningful,
sustainable living wage employment. This is
a onetime appropriation.

(aa) $50,000 the second year is from the
workforce development fund and is for a grant
to United Senior Lao American Association
to provide job and skills training for an
underserved population. This is a onetime
appropriation.

(bb) $100,000 the second year is from the
workforce development fund and is for a grant
to Hmong American Farmers Association for
workforce readiness, employment exploration,
and skills development. This is a onetime
appropriation.

(cc) $240,000 the second year is from the
workforce development fund and is for a grant
to MN Zej Zog for workforce readiness,
employment exploration, and skills
development. This is a onetime appropriation.

(dd) $100,000 the second year is from the
workforce development fund and is for a grant
to Ramsey County for a Justice Impact
Navigator to support Ramsey County residents
who have a justice impact or who are
reentering the community after incarceration
to connect to resources with a focus on
employment and training supports. Funds must
be used for a navigator pilot and other
administrative expenses such as outreach,
marketing, and resources for residents. This
is a onetime appropriation.

(ee) $100,000 the second year is from the
workforce development fund and is for a grant
to Ramsey County for a Digital Equity
Specialist to support Ramsey County residents
with digital literacy resources and skills to
connect to employment and training supports.
Funds must be used for a digital navigator
pilot serving in Ramsey County Career Labs
and community-based locations and other
administrative expenses, such as outreach,
marketing, and resources for residents. This
is a onetime appropriation.

(ff) $100,000 the second year is from the
workforce development fund for a grant to
Film North to attract a film festival. This is a
onetime appropriation. The commissioner of
employment and economic development may
enter into an interagency agreement with
Explore Minnesota, including agreements to
transfer funds and administer the grant.

(gg) $400,000 the second year is from the
workforce development fund for a grant to the
Twin Cities Urban League for support,
capacity building, and expansion of the Work
Readiness Program. This is a onetime
appropriation.

(hh) $500,000 the second year is from the
workforce development fund for a grant to
Arrowhead Opportunity Agency for the
purposes of expanding workforce development
opportunities deleted text begin in the region deleted text end new text begin through the creation
of a regional hub building where services can
be provided new text end . new text begin Money may be used for the costs
of acquiring and refurbishing a building to
serve as the hub. new text end This is a onetime
appropriation new text begin and is available until June 30,
2026 new text end .

(ii) $597,000 the second year is from the
workforce development fund 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.
The commissioner of employment and
economic development may enter into an
interagency agreement with Explore
Minnesota, including agreements to transfer
funds and administer the grant.

(jj) $50,000 the second year is from the
general fund for a grant to Block Builders
Foundation. This appropriation must be used
for programming targeted toward at-risk youth
coaching, financial literacy education, juvenile
offender diversion programming, and
community outreach. This is a onetime
appropriation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Laws 2024, chapter 120, article 1, section 4, is amended to read:

Sec. 4. EXPLORE MINNESOTA

$

-0-

$

4,475,000

(a) $825,000 the second year is for Explore
Minnesota Film. This appropriation is added
to the Explore MN base in fiscal year 2026
and each year thereafter.

(b) $400,000 the second year is for deleted text begin a grant to
Ka Joog for deleted text end Somali community and cultural
festivals and events, including festivals and
events in greater Minnesota. This is a onetime
appropriation new text begin and is available until June 30,
2026 new text end .

(c) $2,000,000 the second year is for a grant
to the 2026 Special Olympics USA Games to
expend on providing food and housing to 2026
Special Olympics USA Games athletes. This
is a onetime appropriation.

(d) $1,250,000 the second 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 begin EFFECTIVE DATE. new text end

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

Sec. 7.

Laws 2024, chapter 127, article 14, section 3, is amended to read:

Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY

$

-0-

$

225,000

This appropriation is for the single-egress
stairway apartment building report under
article 15, section 46. This is a onetime
appropriation new text begin and is available until June 30,
2026 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin APPROPRIATION CANCELLATION; JOB CREATION FUND.
new text end

new text begin $3,000,000 of the appropriation in fiscal year 2025 from the general fund as appropriated
under Laws 2023, chapter 53, article 20, section 2, subdivision 2, paragraph (q), is canceled
to the general fund. This is a onetime cancellation.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9. new text begin REPEALER.
new text end

new text begin Laws 2024, chapter 120, article 1, section 13, new text end new text begin is repealed retroactively from July 1, 2024.
new text end

ARTICLE 3

DEED POLICY

Section 1.

Minnesota Statutes 2024, section 116J.431, subdivision 2, is amended to read:

Subd. 2.

Eligible projects.

(a) An economic development project for which a county or
city may be eligible to receive a grant under this section includes:

(1) manufacturing;

(2) technology;

(3) warehousing and distribution;

(4) research and development;

(5) agricultural processing, defined as transforming, packaging, sorting, or grading
livestock or livestock products new text begin or plants and plant-based products new text end into goods that are used
for intermediate or final consumption, including goods for nonfood use; or

(6) industrial park development that would be used by any other business listed in this
subdivision even if no business has committed to locate in the industrial park at the time
the grant application is made.

(b) Up to 15 percent of the development of a project may be for a purpose that is not
included under this subdivision as an eligible project. A city or county must provide notice
to the commissioner for the commissioner's approval of the proposed project.

Sec. 2.

Minnesota Statutes 2024, section 116J.8733, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Revolving loan fund deleted text end new text begin Minnesota expanding opportunity account new text end .

(a) deleted text begin The
commissioner shall establish a revolving loan fund to make loans to nonprofit corporations,
Tribal economic development entities, and community development financial institutions
for the purpose of increasing nonprofit corporation, Tribal economic development entity,
and community development financial institution capital and lending activities with
Minnesota small businesses. deleted text end new text begin A Minnesota expanding opportunity account is created in the
special revenue fund in the state treasury. Money in the account is appropriated to the
commissioner for revolving loans to nonprofit corporations for the purpose of increasing
nonprofit corporation capital and lending activities with Minnesota small businesses.
new text end

(b) Nonprofit corporations deleted text begin , Tribal economic development entities, and community
development financial institutions deleted text end that receive loans from the commissioner under the
program must establish appropriate accounting practices for the purpose of tracking eligible
loans.

new text begin (c) All loan repayments must be paid into the Minnesota expanding opportunity account
created in this section to fund additional loans.
new text end

Sec. 3.

Minnesota Statutes 2024, section 116J.8752, subdivision 2, is amended to read:

Subd. 2.

Purpose.

The Minnesota forward fund account 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, new text begin and new text end develop properties for business
use deleted text begin , and leverage to meet matching requirements of federal funding deleted text end for resiliency in economic
security and economic enhancement opportunities that provide the public high-quality
employment opportunities.

Sec. 4.

Minnesota Statutes 2024, section 116L.03, subdivision 2, is amended to read:

Subd. 2.

Appointment.

The Minnesota Job Skills Partnership Board consists of: seven
members appointed by the governor, the commissioner of employment and economic
development new text begin or the commissioner's designee new text end , the chancellor, or the chancellor's designee,
of the Minnesota State Colleges and Universities, the president, or the president's designee,
of the University of Minnesota, and two nonlegislator members, one appointed by the
Subcommittee on Committees of the senate Committee on Rules and Administration and
one appointed by the speaker of the house. If the chancellor or the president of the university
makes a designation under this subdivision, the designee must have experience in technical
education. Four of the appointed members must be members of the governor's Workforce
Development Board, of whom two must represent organized labor and two must represent
business and industry. One of the appointed members must be a representative of a nonprofit
organization that provides workforce development or job training services.

Sec. 5.

Minnesota Statutes 2024, section 116L.04, subdivision 1, is amended to read:

Subdivision 1.

Partnership program.

(a) The partnership program may provide
grants-in-aid to educational or other nonprofit educational institutions using the following
guidelines:

(1) the educational or other nonprofit educational institution is a provider of training
within the state in either the public or private sector;

(2) the program involves skills training that is an area of employment need; and

(3) preference will be given to educational or other nonprofit training institutions which
serve economically disadvantaged people, minorities, or those who are victims of economic
dislocation and to businesses located in rural areas.

(b) A single grant to any one institution shall not exceed deleted text begin $400,000 deleted text end new text begin $500,000 new text end . A portion
of a grant may be used for preemployment training.

(c) Each institution must provide for the dissemination of summary results of a
grant-funded project, including, but not limited to, information about curriculum and all
supporting materials developed in conjunction with the grant. Results of projects developed
by any Minnesota State Colleges and Universities system institution must be disseminated
throughout the system.

new text begin (d) At the discretion of the board, higher education institutions may charge up to a
15-percent increase on the direct project costs, not including equipment costs.
new text end

Sec. 6.

Minnesota Statutes 2024, section 116L.04, subdivision 1a, is amended to read:

Subd. 1a.

Pathways program.

new text begin (a) new text end The pathways program may provide grants-in-aid
for developing programs which assist in the transition of persons from welfare to work and
assist individuals at or below 200 percent of the federal poverty guidelines. The program
is to be operated by the board. The board shall consult and coordinate with program
administrators at the Department of Employment and Economic Development to design
and provide services for temporary assistance for needy families recipients.

new text begin (b) new text end Pathways grants-in-aid may be awarded to educational or other nonprofit training
institutions or to workforce development intermediaries for education and training programs
and services supporting education and training programs that serve eligible recipients.

Preference shall be given to projects that:

(1) provide employment with benefits paid to employees;

(2) provide employment where there are defined career paths for trainees;

(3) pilot the development of an educational pathway that can be used on a continuing
basis for transitioning persons from welfare to work; and

(4) demonstrate the active participation of Department of Employment and Economic
Development workforce centers, Minnesota State College and University institutions and
other educational institutions, and local welfare agencies.

new text begin (c) new text end Pathways projects must demonstrate the active involvement and financial commitment
of a participating business. Pathways projects must be matched with cash or in-kind
contributions on at least a one-half-to-one ratio by a participating business.

new text begin (d) new text end A single grant to any one institution shall not exceed deleted text begin $400,000 deleted text end new text begin $500,000 new text end . A portion
of a grant may be used for preemployment training.

new text begin (e) At the discretion of the board, higher education institutions may charge up to a
15-percent increase on the direct project costs, not including equipment costs.
new text end

Sec. 7.

Minnesota Statutes 2024, section 116L.05, subdivision 5, is amended to read:

Subd. 5.

Use of workforce development funds.

After deleted text begin March deleted text end new text begin September new text end 1 of any fiscal
year, the board may use workforce development funds for the purposes outlined in sections
116L.02 and 116L.04, or to provide incumbent worker training services under section
116L.18 if the following conditions have been met:

(1) the board examines relevant economic indicators, including the projected number
of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of declining
and expanding industries, the number of initial applications for and the number of exhaustions
of unemployment benefits, job vacancy data, and any additional relevant information brought
to the board's attention;

(2) the board accounts for all allocations made in section 116L.17, subdivision 2;

(3) based on the past expenditures and projected revenue, the board estimates future
funding needs for services under section 116L.17 for the remainder of the current fiscal
year and the next fiscal year;

(4) the board determines there will be unspent funds after meeting the needs of dislocated
workers in the current fiscal year and there will be sufficient revenue to meet the needs of
dislocated workers in the next fiscal year; and

(5) the board reports its findings in clauses (1) to (4) to the chairs of legislative
committees with jurisdiction over the workforce development fund, to the commissioners
of revenue and management and budget, and to the public.

Sec. 8.

Minnesota Statutes 2024, section 116L.562, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The commissioner shall award grants to eligible
organizations for the purpose of providing workforce development and training opportunities new text begin
or preemployment services and mentorship opportunities new text end to economically disadvantaged
or at-risk youth ages 14 to 24.

Sec. 9.

Minnesota Statutes 2024, section 116L.562, subdivision 3, is amended to read:

Subd. 3.

Competitive grant awards.

(a) In awarding competitive grants, priority shall
be given to programs that:

(1) provide students with information about education and training requirements for
careers in high-growth, in-demand occupations;

(2) serve youth from communities of color who are underrepresented in the workforce;
or

(3) serve youth with disabilities.

(b) Eligible organizations must have demonstrated effectiveness in administering youth
deleted text begin workforce deleted text end programs and must leverage nonstate or private sector funds.

(c) New eligible applicants must be youth-serving organizations with significant capacity
and demonstrable youth development experience and outcomes to operate deleted text begin a youth workforce
development deleted text end new text begin an eligible new text end project.

(d) If a program is not operated by a local unit of government or a workforce development
board, the grant recipient must coordinate the program with the local workforce development
board.

Sec. 10.

Minnesota Statutes 2024, section 116L.98, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

(b) "Credential" means deleted text begin postsecondary deleted text end degrees, diplomas, licenses, and certificates
awarded in recognition of an individual's attainment of measurable technical or occupational
skills necessary to obtain employment or advance with an occupation. This definition does
not include certificates awarded by workforce investment boards or work-readiness
certificates.

(c) "Exit" means to have not received service under a workforce program for 90
consecutive calendar days. The exit date is the last date of service.

(d) "Net impact" means the use of matched control groups and regression analysis to
estimate the impacts attributable to program participation net of other factors, including
observable personal characteristics and economic conditions.

(e) "Pre-enrollment" means the period of time before an individual was enrolled in a
workforce program.

Sec. 11.

Minnesota Statutes 2024, section 116U.05, is amended to read:

116U.05 EXPLORE MINNESOTA new text begin ; ESTABLISHMENT new text end .

Explore Minnesota is 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 and oversees Explore Minnesota Tourism deleted text begin and deleted text end new text begin , new text end Explore Minnesota
for Business new text begin , and Explore Minnesota Film new text end divisions. The director serves in the unclassified
service and must be qualified by experience and training in related fields.

Sec. 12.

Minnesota Statutes 2024, section 116U.06, is amended to read:

116U.06 EXPLORE MINNESOTA TOURISM.

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

Sec. 13.

Minnesota Statutes 2024, section 116U.15, is amended to read:

116U.15 MISSION.

(a) The mission of Explore Minnesota is to deleted text begin promote and facilitate increased travel to
and within the state of Minnesota, promote overall livability, and promote workforce and
economic opportunity in Minnesota deleted text end new text begin support the growth of Minnesota's economy through
the management of the state's tourism, livability and economic opportunity, outdoor
recreation, film, and other statewide promotion efforts as directed new text end . To further the mission
of Explore Minnesota, the office is advised by new text begin various advisory new text end councils deleted text begin focused on tourism
and talent attraction and business marketing deleted text end . Its goals are to:

(1) expand public and private partnerships through increased interagency efforts and
increased tourism and business 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.

(b) 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. 14.

Minnesota Statutes 2024, 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 new text begin Explore new text end Minnesota deleted text begin travel, tourism, overall
livability, and workforce and economic opportunity deleted text end promotion efforts with other state
agencies and develop multiagency marketing strategies when appropriate;

(3) promote and encourage the expansion and development of deleted text begin international tourism,
trade, and Minnesota livability marketing deleted text end new text begin programs that support the mission of the office new text end ;

(4) advertise and disseminate information about deleted text begin Minnesota travel, tourism, and workforce
and economic development opportunities deleted text end new text begin Explore Minnesota and its activities that support
the mission of the office new text end ;

(5) deleted text begin aid various deleted text end new text begin provide new text end local communities new text begin a reasonable level of support new text end to improve their
deleted text begin travel, tourism, and overall livability deleted text end marketing programs new text begin as they relate to the mission of
the office new text end ;

(6) coordinate and implement comprehensive state deleted text begin travel, tourism, workforce and
economic development, and overall livability deleted text end new text begin mission-driven new text end marketing programs that take
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 organizations with information, deleted text begin technical
assistance deleted text end new text begin educational opportunities new text end , training, and advice on deleted text begin using state tourism and livability
information and deleted text end new text begin promotional new text end programs new text begin related to the office's mission new text end ; and

(9) generally gather, compile, and make available statistical information relating to
deleted text begin Minnesota travel, tourism, workforce and economic development, overall livability, and
related areas in this state deleted text end new text begin the office's mission new text end . The director has the 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 deleted text begin for travel, tourism, workforce and economic
development, and overall livability development and marketing deleted text end new text begin , as it relates to the mission
of the office, new text end from other agencies, organizations, and businesses;

(2) apply for, accept, and disburse grants and other aids for deleted text begin tourism deleted text end 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, and local, statewide, and regional 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 deleted text begin in the area
of travel, tourism, workforce and economic development, and overall livability deleted text end ;

(7) monitor and study trends in the related industries and provide resources and training
to address change;

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

(9) enter into 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 to promote international travel and to implement this
chapter.

(c) Contracts for goods and deleted text begin nonprofessional deleted text end new text begin services and professional new text end 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. new text begin Professional technical service new text end contracts new text begin that promote
Minnesota as a tourism travel destination or a talent attraction new text end may be negotiated and are
not subject to the provisions of chapter 16C relating to competitive bidding.

Sec. 15.

Minnesota Statutes 2024, section 116U.35, is amended to read:

116U.35 PROMOTIONAL EXPENSES.

To promote deleted text begin travel, tourism, workforce and economic development, and overall livability
of the state deleted text end new text begin programs that align with Explore Minnesota's mission new text end , 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 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.

Sec. 16.

Minnesota Statutes 2024, section 248.07, subdivision 7, is amended to read:

Subd. 7.

Blind, vending deleted text begin stands and machines deleted text end new text begin facilities new text end on governmental property;
liability limited.

(a) Notwithstanding any other law, for the rehabilitation of blind persons
the commissioner shall have exclusive authority to establish and to operate vending deleted text begin stands
and vending machines deleted text end new text begin facilities new text end in all buildings and properties owned or rented exclusively
by the Minnesota State Colleges and Universities at a state university, a community college,
a consolidated community technical college, or a technical college served by the
commissioner before January 1, 1996, or by any department or agency of the state of
Minnesota except the Department of Natural Resources properties operated directly by the
Division of State Parks and not subject to private leasing. Vending deleted text begin stands and machines deleted text end new text begin
facilities new text end authorized under this subdivision may dispense nonalcoholic beverages, food,
candies, tobacco, souvenirs, notions, and related items and must be operated on the same
basis as other vending deleted text begin stands deleted text end new text begin facilities new text end for the blind established and supervised by the
commissioner under federal law. The commissioner shall waive this authority to displace
any present private individual concessionaire in any state-owned or rented building or
property who is operating under a contract with a specific renewal or termination date, until
the renewal or termination date. With the consent of the governing body of a governmental
subdivision of the state, the commissioner may establish and supervise vending deleted text begin stands and
vending machines deleted text end new text begin facilities new text end for the blind in any building or property exclusively owned or
rented by the governmental subdivision.

(b) The Department of Employment and Economic Development is not liable under
chapter 176 for any injury sustained by a blind vendor's employee or agent. The Department
of Employment and Economic Development, its officers, and its agents are not liable for
the acts or omissions of a blind vendor or of a blind vendor's employee or agent that may
result in the blind vendor's liability to third parties. The Department of Employment and
Economic Development, its officers, and its agents are not liable for negligence based on
any theory of liability for claims arising from the relationship created under this subdivision
with the blind vendor.

Sec. 17.

Minnesota Statutes 2024, section 248.07, subdivision 8, is amended to read:

Subd. 8.

Use of revolving fund, licenses for operation of vending deleted text begin stands deleted text end new text begin facilities new text end .

(a)
The revolving fund created by Laws 1947, chapter 535, section 5, is continued as provided
in this subdivision and shall be known as the revolving fund for vocational rehabilitation
of the blind. It shall be used for the purchase of equipment and supplies for establishing and
operating of vending deleted text begin stands deleted text end new text begin facilities new text end by blind persons. All income, receipts, earnings, and
federal vending deleted text begin machine deleted text end new text begin facility new text end income due to the operation of vending deleted text begin stands deleted text end new text begin facilities new text end
operated under this subdivision shall also be paid into the fund. All interest earned on money
accrued in the fund must be credited to the fund by the commissioner of management and
budget. All equipment, supplies, and expenses for setting up these deleted text begin stands deleted text end new text begin facilities new text end shall be
paid for from the fund.

(b) The commissioner is authorized to use the money available in the revolving fund
that originated as operational charges to individuals licensed under this subdivision for the
establishment, operation, and supervision of vending deleted text begin stands deleted text end new text begin facilities new text end by blind persons for
the following purposes:

(1) purchase, upkeep and replacement of equipment;

(2) expenses incidental to the setting up of new deleted text begin stands deleted text end new text begin facilities new text end and improvement of old
deleted text begin stands deleted text end new text begin facilities new text end ;

(3) reimbursement under section 15.059 to individual blind vending operators for
reasonable expenses incurred in attending supervisory meetings as called by the commissioner
and other expenditures for management services consistent with federal law; and

(4) purchase of fringe benefits for blind vending operators and their employees such as
group health insurance, retirement program, vacation or sick leave assistance provided that
the purchase of any fringe benefit is approved by a majority vote of blind vending operators
licensed pursuant to this subdivision after the commissioner provides to each blind vending
operator information on all matters relevant to the fringe benefits. "Majority vote" means
a majority of blind vending operators voting. Fringe benefits shall be paid only from
assessments of operators for specific benefits, gifts to the fund for fringe benefit purposes,
and vending income which is not assignable to an individual deleted text begin stand deleted text end new text begin facility new text end .

(c) Money originally deposited as merchandise and supplies repayments by individuals
licensed under this subdivision may be expended for initial and replacement stocks of
supplies and merchandise. Money originally deposited from vending income on federal
property must be spent consistent with federal law.

(d) All other deposits may be used for the purchase of general liability insurance or any
other expense related to the operation and supervision of vending deleted text begin stands deleted text end new text begin facilities new text end .

(e) The commissioner shall issue each license for the operation of a vending deleted text begin stand deleted text end new text begin facility new text end
or vending machine for an indefinite period but may terminate any license in the manner
provided. In granting licenses for new or vacated deleted text begin stands deleted text end new text begin facilities new text end preference on the basis
of seniority of experience in operating deleted text begin stands deleted text end new text begin facilities new text end under the control of the commissioner
shall be given to capable operators who are deemed competent to handle the enterprise
under consideration. Application of this preference shall not prohibit the commissioner from
selecting an operator from the community in which the deleted text begin stand deleted text end new text begin facility new text end is located.

Sec. 18.

Minnesota Statutes 2024, section 469.54, subdivision 4, is amended to read:

Subd. 4.

Credit for parking revenue.

(a) By March 1 of the year following the year in
which the parking facilities or structures are constructed within the district, the city must
certify to the commissioner:

(1) the total amount of revenue generated by the parking facilities and structures in the
preceding year; and

(2) the total amount necessary for operational and maintenance expenses of the facilities
or structures in the deleted text begin current deleted text end new text begin preceding new text end year.

(b) By July 1 of each year thereafter, for a period of 25 years, the commissioner must
confirm or revise the amounts as reported. An amount equal to 50 percent of the amount of
revenue received by the city by the parking structures and facilities in the deleted text begin previous deleted text end new text begin preceding new text end
year that is greater than the amount necessary for operational and maintenance expenses of
the facilities or structures in the deleted text begin current deleted text end new text begin preceding new text end year must be paid by the city to the
commissioner of employment and economic development by September 1 for deposit into
the general fund.

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 116L.35; and 116L.98, subdivision 7, new text end new text begin are repealed.
new text end

ARTICLE 4

DEPARTMENT OF LABOR AND INDUSTRY POLICY

Section 1.

Minnesota Statutes 2024, section 177.27, subdivision 5, is amended to read:

Subd. 5.

Civil actions.

The commissioner may bring an action in the district court where
an employer resides or where the commissioner maintains an office to enforce or require
compliance with orders issued under subdivision 4. new text begin In addition to any other remedy provided
by law, the commissioner may also apply in the district court where an employer resides or
where the commissioner maintains an office for an order enjoining and restraining violations
of any statute or rule listed in subdivision 4.
new text end

Sec. 2.

Minnesota Statutes 2024, section 181.211, subdivision 7, is amended to read:

Subd. 7.

Nursing home.

"Nursing home" means a nursing home licensed under chapter
144A new text begin and reimbursed under chapter 256R new text end , or a boarding care home licensed under sections
144.50 to 144.56 new text begin and reimbursed under chapter 256R new text end .

Sec. 3.

Minnesota Statutes 2024, section 181.211, subdivision 8, is amended to read:

Subd. 8.

Nursing home employer.

"Nursing home employer" means an employer of
nursing home workers in a deleted text begin licensed, Medicaid-certified facility that is reimbursed under
chapter deleted text end deleted text begin 256R deleted text end new text begin nursing home as defined under subdivision 7 new text end .

Sec. 4.

Minnesota Statutes 2024, section 181.988, subdivision 2, is amended to read:

Subd. 2.

Covenants not to compete void and unenforceable.

(a) Any covenant not to
compete contained in a contract or agreement is void and unenforceable.

(b) Notwithstanding paragraph (a), a covenant not to compete is valid and enforceable
if:

new text begin (1) the covenant not to compete restricts an employee from engaging in competition for
no more than one year and the employee received a clear, written explanation of the covenant
not to compete prior to entering into the contract or agreement, and either:
new text end

new text begin (i) the employee has a salary of $200,000 or more and whose primary duties include:
new text end

new text begin (A) research and development or the creation, analysis, or modification of confidential,
proprietary, or trade secret information; or
new text end

new text begin (B) management of a project, team, or department with responsibility over research and
development or the creation, analysis, or modification of confidential, proprietary, or trade
secret information; or
new text end

new text begin (ii) the employee has a salary of $500,000 or more regardless of the employee's primary
job duties;
new text end

deleted text begin (1) deleted text end new text begin (2) new text end the covenant not to compete is agreed upon during the sale of a business. The
person selling the business and the partners, members, or shareholders, and the buyer of the
business may agree on a temporary and geographically restricted covenant not to compete
that will prohibit the seller of the business from carrying on a similar business within a
reasonable geographic area and for a reasonable length of time; or

deleted text begin (2) deleted text end new text begin (3) new text end the covenant not to compete is agreed upon in anticipation of the dissolution of
a business. The partners, members, or shareholders, upon or in anticipation of a dissolution
of a partnership, limited liability company, or corporation may agree that all or any number
of the parties will not carry on a similar business within a reasonable geographic area where
the business has been transacted.

(c) Nothing in this subdivision shall be construed to render void or unenforceable any
other provisions in a contract or agreement containing a void or unenforceable covenant
not to compete.

(d) In addition to injunctive relief and any other remedies available, a court may award
an employee who is enforcing rights under this section reasonable attorney fees.

new text begin (e) For the purposes of this subdivision, the term "trade secret" means all forms and
types of scientific, technical, or engineering information, including patterns, plans,
compilations, program devices, formulas, designs, prototypes, methods, techniques, processes,
procedures, programs, or codes; whether tangible or intangible, and whether or how stored,
compiled, or memorialized physically, electronically, graphically, photographically, or in
writing, if:
new text end

new text begin (1) the owner thereof has taken reasonable measures to keep such information secret;
and
new text end

new text begin (2) the information derives independent economic value, actual or potential, from not
being generally known to, and not being readily ascertainable through proper means by,
another person who can obtain economy value from the disclosure or use of the information.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2024, section 326B.0981, subdivision 4, is amended to read:

Subd. 4.

Internet continuing education.

(a) The design and delivery of an Internet
continuing education course must be approved by the International Distance Education
Certification Center (IDECC) or the International deleted text begin Association deleted text end new text begin Accreditors new text end for Continuing
Education and Training (IACET) before the course is submitted for the commissioner's
approval. The approval must accompany the course submitted.

(b) Paragraphs (a) and (d) do not apply to approval of an Internet continuing education
course for manufactured home installers. An Internet continuing education course for
manufactured home installers must be approved by the United States Department of Housing
and Urban Development or by the commissioner of labor and industry. The approval must
accompany the course completion certificate issued to each student by the course sponsor.

(c) Paragraph (a) does not apply to approval of an Internet continuing education course
for elevator constructors. An Internet continuing education course for elevator constructors
must be approved by the commissioner of labor and industry. The approval must accompany
the course completion certificate issued to each student by the course sponsor.

(d) An Internet continuing education course must:

(1) specify the minimum computer system requirements;

(2) provide encryption that ensures that all personal information, including the student's
name, address, and credit card number, cannot be read as it passes across the Internet;

(3) include technology to guarantee seat time;

(4) include a high level of interactivity;

(5) include graphics that reinforce the content;

(6) include the ability for the student to contact an instructor or course sponsor within
a reasonable amount of time;

(7) include the ability for the student to get technical support within a reasonable amount
of time;

(8) include a statement that the student's information will not be sold or distributed to
any third party without prior written consent of the student. Taking the course does not
constitute consent;

(9) be available 24 hours a day, seven days a week, excluding minimal downtime for
updating and administration, except that this provision does not apply to live courses taught
by an actual instructor and delivered over the Internet;

(10) provide viewing access to the online course at all times to the commissioner,
excluding minimal downtime for updating and administration;

(11) include a process to authenticate the student's identity;

(12) inform the student and the commissioner how long after its purchase a course will
be accessible;

(13) inform the student that license education credit will not be awarded for taking the
course after it loses its status as an approved course;

(14) provide clear instructions on how to navigate through the course;

(15) provide automatic bookmarking at any point in the course;

(16) provide questions after each unit or chapter that must be answered before the student
can proceed to the next unit or chapter;

(17) include a reinforcement response when a quiz question is answered correctly;

(18) include a response when a quiz question is answered incorrectly;

(19) include a final examination in which the student must correctly answer 70 percent
of the questions;

(20) allow the student to go back and review any unit at any time, except during the final
examination;

(21) provide a course evaluation at the end of the course. At a minimum, the evaluation
must ask the student to report any difficulties caused by the online education delivery
method;

(22) provide a completion certificate when the course and exam have been completed
and the provider has verified the completion. Electronic certificates are sufficient and shall
include the name of the provider, date and location of the course, educational program
identification that was provided by the department, hours of instruction or continuing
education hours, and licensee's or attendee's name and license, certification, or registration
number or the last four digits of the licensee's or attendee's Social Security number; and

(23) allow the commissioner the ability to electronically review the class to determine
if credit can be approved.

(e) The final examination must be either an encrypted online examination or a paper
examination that is monitored by a proctor who certifies that the student took the examination.

Sec. 6.

Minnesota Statutes 2024, section 326B.198, subdivision 2, is amended to read:

Subd. 2.

Installation requirements.

(a) The installation of underground
telecommunications infrastructure that is located within ten feet of existing underground
utilities or that crosses the existing underground utilities must be performed by
safety-qualified underground telecommunications installers as follows:

(1) the location of existing utilities by hand- or hydro-excavation or other accepted
methods must be performed by a safety-qualified underground telecommunications installer; new text begin
and
new text end

(2) where telecommunications infrastructure is installed by means of directional drilling,
the monitoring of the location and depth of the drill head must be performed by a
safety-qualified underground telecommunications installer deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (3) no fewer than two safety-qualified underground telecommunications installers must
be present at all times at any location where telecommunications infrastructure is being
installed by means of directional drilling.
deleted text end

deleted text begin (b) deleted text end deleted text begin Beginning July 1, 2025, all installations of underground telecommunications
infrastructure subject to this subdivision within the seven-county metropolitan area must
be performed by safety-qualified underground telecommunications installers that meet the
requirements of this subdivision deleted text end deleted text begin .
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end Beginning January 1, 2026, all installations of underground telecommunications
infrastructure subject to this subdivision within this state must be performed by
safety-qualified underground telecommunications installers that meet the requirements of
this subdivision.

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.

Minnesota Statutes 2024, section 326B.198, subdivision 3, is amended to read:

Subd. 3.

Certification Standards.

(a) The commissioner of labor and industry, in
consultation with the Office of Broadband, shall approve standards for a safety-qualified
underground telecommunications installer certification program that requires a person to:

(1) complete a 40-hour initial course that includes classroom and hands-on instruction
covering proper work procedures for safe installation of underground utilities, including:

(i) regulations applicable to excavation near existing utilities;

(ii) identification, location, and verification of utility lines using hand- or
hydro-excavation or other accepted methods;

(iii) response to line strike incidents;

(iv) traffic control procedures;

(v) use of a tracking device to safely guide directional drill equipment along a drill path;
and

(vi) avoidance and mitigation of safety hazards posed by underground utility installation
projects;

(2) demonstrate knowledge of the course material by successfully completing an
examination approved by the commissioner; and

(3) complete a four-hour refresher course within three years of completing the original
course and every three years thereafter in order to maintain certification.

(b) The commissioner must develop an approval process for training providers under
this subdivision and may suspend or revoke the approval of any training provider that fails
to demonstrate consistent delivery of approved curriculum or success in preparing participants
to complete the examination.

new text begin (c) An approved training provider may apply for approval of classroom instruction course
material delivered up to two years prior to becoming an approved training provider and
before January 1, 2026, as being equivalent or substantially equivalent to classroom
instruction course material that is contained in the approved program. An application must
provide a copy of all written materials used for the training for which equivalent credit is
sought, the specific subjects covered in the training, the name and qualifications of the
training provider, a description of the delivery method for the training, and the date of the
training. Once approved, a training provider may grant full or partial retroactive credit for
completion of classroom instruction training delivered prior to the commissioner's decision
to approve a program. A person granted retroactive credit must successfully complete the
examination that the training provider is approved to administer in order to be certified as
a safety-qualified underground telecommunications installer.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2024, section 326B.31, subdivision 29, is amended to read:

Subd. 29.

Technology circuits or systems.

"Technology circuits or systems" means
class 2 deleted text begin or deleted text end new text begin , new text end class 3 new text begin , or class 4 new text end circuits or systems for, but not limited to, remote control,
signaling, control, alarm, and audio signal, including associated components as covered by
the National Electrical Code, deleted text begin articles 640, 645, 650, 725, 760, 770, and 780, deleted text end and which are
isolated from circuits or systems other than class 2 deleted text begin or deleted text end new text begin , new text end class 3 new text begin , or class 4 new text end by a demarcation
and are not process control circuits or systems; antenna and communication circuits or
systems as covered by deleted text begin chapter 8 of deleted text end the National Electrical Code; and circuitry and equipment
deleted text begin for indoor lighting and outdoor landscape lighting systems that are supplied by the secondary
circuit of an isolating power supply operating at 30 volts or less as deleted text end new text begin for low-voltage lighting,
limited to a class 2 or class 3 power supply new text end covered by the new text begin Low-Voltage Lighting article in
the new text end National Electrical Code deleted text begin , article 411 deleted text end . The planning, laying out, installing, altering, and
repairing of technology circuits or systems must be performed in accordance with the
applicable requirements of the National Electrical Code pursuant to section 326B.35.

Sec. 9.

Minnesota Statutes 2024, section 326B.33, subdivision 21, is amended to read:

Subd. 21.

Exemptions from licensing.

(a) An individual who is a maintenance electrician
is not required to hold or obtain a license under sections 326B.31 to 326B.399 if:

(1) the individual is engaged in the maintenance and repair of electrical equipment,
apparatus, and facilities that are owned or leased by the individual's employer and that are
located within the limits of property operated, maintained, and either owned or leased by
the individual's employer;

(2) the individual is supervised by:

(i) the responsible master electrician for a contractor who has contracted with the
individual's employer to provide services for which a contractor's license is required; or

(ii) a licensed master electrician, a licensed maintenance electrician, an electrical engineer,
or, if the maintenance and repair work is limited to technology circuits or systems work, a
licensed power limited technician; and

(3) the individual's employer has on file with the commissioner a current certificate of
responsible person, signed by the responsible master electrician of the contractor, the licensed
master electrician, the licensed maintenance electrician, the electrical engineer, or the
licensed power limited technician, and stating that the person signing the certificate is
responsible for ensuring that the maintenance and repair work performed by the employer's
employees complies with the Minnesota Electrical Act and the rules adopted under that act.
The employer must pay a filing fee to file a certificate of responsible person with the
commissioner. The certificate shall expire two years from the date of filing. In order to
maintain a current certificate of responsible person, the employer must resubmit a certificate
of responsible person, with a filing fee, no later than two years from the date of the previous
submittal.

(b) Employees of a licensed electrical or technology systems contractor or other employer
where provided with supervision by a master electrician in accordance with subdivision 1,
or power limited technician in accordance with subdivision 7, paragraph (a), clause (1), are
not required to hold a license under sections 326B.31 to 326B.399 for the planning, laying
out, installing, altering, and repairing of technology circuits or systems except planning,
laying out, or installing:

(1) in other than residential dwellings, class 2 or class 3 remote control circuits that
control circuits or systems other than class 2 or class 3, except circuits that interconnect
these systems through communication, alarm, and security systems are exempted from this
paragraph;

(2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing
physically unprotected circuits other than class 2 or class 3; deleted text begin or
deleted text end

new text begin (3) class 4 circuits or systems; or
new text end

deleted text begin (3) deleted text end new text begin (4) new text end technology circuits or systems in hazardous classified locations as covered by
the National Electrical Code.

(c) Companies and their employees that plan, lay out, install, alter, or repair class 2 and
class 3 remote control wiring associated with plug or cord and plug connected appliances
other than security or fire alarm systems installed in a residential dwelling are not required
to hold a license under sections 326B.31 to 326B.399.

(d) Heating, ventilating, air conditioning, and refrigeration contractors and their
employees are not required to hold or obtain a license under sections 326B.31 to 326B.399
when performing heating, ventilating, air conditioning, or refrigeration work as described
in section 326B.38.

(e) Employees of any electrical, communications, or railway utility, cable communications
company as defined in section 238.02, or a telephone company as defined under section
237.01 or its employees, or of any independent contractor performing work on behalf of
any such utility, cable communications company, or telephone company, shall not be required
to hold a license under sections 326B.31 to 326B.399:

(1) while performing work on installations, materials, or equipment which are owned
or leased, and operated and maintained by such utility, cable communications company, or
telephone company in the exercise of its utility, antenna, or telephone function, and which:

(i) are used exclusively for the generation, transformation, distribution, transmission, or
metering of electric current, or the operation of railway signals, or the transmission of
intelligence and do not have as a principal function the consumption or use of electric current
or provided service by or for the benefit of any person other than such utility, cable
communications company, or telephone company; deleted text begin and
deleted text end

(ii) are generally accessible only to employees of such utility, cable communications
company, or telephone company or persons acting under its control or direction; and

(iii) are not on the load side of the service point or point of entrance for communication
systems;

(2) while performing work on installations, materials, or equipment which are a part of
the street lighting operations of such utility; or

(3) while installing or performing work on outdoor area lights which are directly
connected to a utility's distribution system and located upon the utility's distribution poles,
and which are generally accessible only to employees of such utility or persons acting under
its control or direction.

(f) An individual who physically performs electrical work on a residential dwelling that
is located on a property the individual owns and actually occupies as a residence or owns
and will occupy as a residence upon completion of its construction is not required to hold
or obtain a license under sections 326B.31 to 326B.399 if the residential dwelling has a
separate electrical utility service not shared with any other residential dwelling.

(g) Companies and their employees licensed under section 326B.164 shall not be required
to hold or obtain a license under sections 326B.31 to 326B.399 while performing elevator
work.

Sec. 10. new text begin MISCLASSIFICATION FRAUD IMPACT REPORT.
new text end

new text begin (a) Every two years, the commissioners of revenue, employment and economic
development, and labor and industry must coordinate to conduct an analysis of the costs of
misclassification to illustrate how misclassification impacts misclassified workers,
government programs, and tax collections.
new text end

new text begin (b) By January 15 of every odd-numbered year, beginning January 15, 2027, the
commissioner of labor and industry must report on the analysis performed under paragraph
(a) to the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes, workforce, and labor. The commissioner of labor and industry may contract
with external experts or an independent third party to conduct a study, develop a report, and
perform other functions.
new text end

new text begin (c) At a minimum, the study and report must provide:
new text end

new text begin (1) an estimate of the number of workers experiencing misclassification in Minnesota;
new text end

new text begin (2) an estimate of the cost of misclassification to impacted workers;
new text end

new text begin (3) an estimate of the prevalence of misclassification by industry; and
new text end

new text begin (4) an estimate of the impact to:
new text end

new text begin (i) the unemployment insurance trust fund;
new text end

new text begin (ii) the family and medical benefit insurance account;
new text end

new text begin (iii) state income tax collection;
new text end

new text begin (iv) the workers' compensation fund; and
new text end

new text begin (v) the workforce development fund.
new text end

new text begin (d) Data and information relevant to the required report elements in paragraph (c) must
be provided to the commissioner of labor and industry for purposes of the study and report,
including but not limited to the following:
new text end

new text begin (1) from the Department of Employment and Economic Development, information and
data relevant to:
new text end

new text begin (i) the unemployment insurance trust fund;
new text end

new text begin (ii) the family and medical benefit insurance account;
new text end

new text begin (iii) unemployment insurance program audits and findings; and
new text end

new text begin (iv) the workforce development fund;
new text end

new text begin (2) from the Department of Revenue, information and data relevant to:
new text end

new text begin (i) misclassification tax audits and findings;
new text end

new text begin (ii) income tax collection; and
new text end

new text begin (iii) 1099 filings; and
new text end

new text begin (3) from the Department of Labor and Industry, information and data relevant to:
new text end

new text begin (i) misclassification complaints, investigations, and findings; and
new text end

new text begin (ii) the workers' compensation fund.
new text end

APPENDIX

Repealed Minnesota Statutes: H2441-1

116L.35 INVENTORY OF ECONOMIC DEVELOPMENT PROGRAMS.

(a) By January 15, 2020, and by January 15 of each even-numbered year thereafter, the commissioner of employment and economic development must submit a report to the chairs of the legislative committees with jurisdiction over economic development that provides an inventory of all economic development programs, including any workforce development programs, either provided by or overseen by any agency of the state of Minnesota.

(b) Programs related to economic development that must be included in the report include those that:

(1) receive federal funds or state funds;

(2) provide assistance to either businesses or individuals; or

(3) support internships, apprenticeships, career and technical education, or any form of employment training.

(c) For each economic development program, the report must include, at a minimum, the following information:

(1) details of program costs;

(2) the number of staff, both within the department and any outside organization;

(3) the number of program participants;

(4) the demographic information including, but not limited to, race, age, gender, and income of program participants;

(5) a list of any and all subgrantees receiving funds from the program, as well as the amount of funding received;

(6) information about other sources of funding including other public or private funding or in-kind donations;

(7) evidence that:

(i) the organization administering a program;

(ii) a business receiving a loan for a new or expanded business from a program; or

(iii) a subgrantee of a program is in good standing with the Minnesota Secretary of State and the Minnesota Department of Revenue;

(8) a short description of what each program does; and

(9) to the extent practical, quantifiable measures of program success.

(d) In addition to the information required under paragraph (c), a program related to economic development under paragraph (b) that requests an increase in state funding over the previous biennium must provide the following:

(1) detailed information regarding the need for increased funds; and

(2) the planned uses of the increased funds.

116L.98 WORKFORCE PROGRAM OUTCOMES.

Subd. 7.

Workforce program net impact analysis.

(a) By January 15, 2015, the commissioner must report to the committees of the house of representatives and the senate having jurisdiction over economic development and workforce policy and finance on the results of the net impact pilot project already underway as of the date of enactment of this section.

(b) The commissioner shall contract with an independent entity to conduct an ongoing net impact analysis of the programs included in the net impact pilot project under paragraph (a), career pathways programs, and any other programs deemed appropriate by the commissioner. The net impact methodology used by the independent entity under this paragraph must be based on the methodology and evaluation design used in the net impact pilot project under paragraph (a).

(c) By January 15, 2017, and every four years thereafter, the commissioner must report to the committees of the house of representatives and the senate having jurisdiction over economic development and workforce policy and finance the following information for each program subject to paragraph (b):

(1) the net impact of workforce services on individual employment, earnings, and public benefit usage outcomes; and

(2) a cost-benefit analysis for understanding the monetary impacts of workforce services from the participant and taxpayer points of view.

The report under this paragraph must be made available to the public in an electronic format on the Department of Employment and Economic Development's website.

(d) The department is authorized to create and maintain data-sharing agreements with other departments, including corrections, human services, and any other department that are necessary to complete the analysis. The department shall supply the information collected for use by the independent entity conducting net impact analysis pursuant to the data practices requirements under chapters 13, 13A, 13B, and 13C.

Repealed Minnesota Session Laws: H2441-1

Laws 2024, chapter 120, article 1, section 13

Sec. 13. new text begin JOB CREATION FUND; TRANSFER OUT. new text end

new text begin $3,000,000 in fiscal year 2025 is transferred from the job creation fund under Minnesota Statutes, section 116J.8748, to the general fund. This is a onetime transfer. new text end