Minnesota Session Laws - 2023, Regular Session

CHAPTER 53--S.F.No. 3035

An act

relating to state government; establishing a biennial budget for jobs, labor, and economic development; appropriating money for the Department of Labor and Industry, Department of Employment and Economic Development, Bureau of Mediation Services, and Workers' Compensation Court of Appeals; making labor policy changes; establishing workforce standards for agriculture and food processing workers, meat and poultry workers, and warehouse workers; establishing a Nursing Home Workforce Standards Board; regulating combative sports; prohibiting covenants not to compete; regulating building and construction contracts; modifying provisions of the Public Employment Relations Board; establishing wage protections for construction workers; establishing earned sick and safe time; modifying economic development provisions; modifying Explore Minnesota provisions; establishing a Capitol Area Community Vitality Task Force; establishing the PROMISE Act; creating the Minnesota Forward Fund; creating the Minnesota Climate Innovation Finance Authority; authorizing rulemaking; requiring reports; creating accounts; creating penalties;

amending Minnesota Statutes 2022, sections 13.43, subdivision 6; 15.71, by adding subdivisions; 15.72, by adding a subdivision; 116J.5492, subdivisions 8, 10; 116J.55, subdivisions 1, 5, 6; 116J.871, subdivisions 1, 2; 116J.8748, subdivisions 3, 4, 6, by adding a subdivision; 116L.361, subdivision 7; 116L.362, subdivision 1; 116L.364, subdivision 3; 116L.365, subdivision 1; 116L.56, subdivision 2; 116L.561, subdivision 5; 116L.562, subdivision 2; 116U.05; 116U.10; 116U.15; 116U.20; 116U.30; 116U.35; 120A.414, subdivision 2; 122A.181, subdivision 5; 122A.26, subdivision 2; 122A.40, subdivision 5; 122A.41, subdivision 2; 175.16, subdivision 1; 177.26, subdivisions 1, 2; 177.27, subdivisions 1, 2, 4, as amended, 7, 8, 9, 10; 177.42, subdivision 2; 178.01; 178.011, subdivision 7; 178.03, subdivision 1; 178.11; 179.86, subdivisions 1, 3, by adding subdivisions; 179A.03, subdivisions 14, 18, 19; 179A.041, by adding a subdivision; 179A.06, subdivision 6; 179A.07, subdivisions 1, 6, by adding subdivisions; 179A.10, subdivision 2; 179A.12, subdivisions 6, 11, by adding a subdivision; 181.03, subdivision 6; 181.032; 181.06, subdivision 2; 181.14, subdivision 1; 181.171, subdivision 4; 181.172; 181.275, subdivision 1; 181.635, subdivisions 1, 2, 3, 4, 6; 181.85, subdivisions 2, 4; 181.86, subdivision 1; 181.87, subdivisions 2, 3, 7; 181.88; 181.89, subdivision 2, by adding a subdivision; 181.932, subdivision 1; 181.939; 181.940, subdivisions 2, 3; 181.941, subdivision 3; 181.9413; 181.942; 181.9435, subdivision 1; 181.9436; 181.944; 181.945, subdivision 3; 181.9456, subdivision 3; 181.956, subdivision 5; 181.964; 182.654, subdivision 11; 182.659, subdivisions 1, 8; 182.66, by adding a subdivision; 182.661, by adding a subdivision; 182.666, subdivisions 1, 2, 3, 4, 5, by adding a subdivision; 182.676; 326B.092, subdivision 6; 326B.093, subdivision 4; 326B.096; 326B.103, subdivision 13, by adding subdivisions; 326B.106, subdivisions 1, 4, by adding a subdivision; 326B.163, subdivision 5, by adding a subdivision; 326B.164, subdivision 13; 326B.31, subdivision 30; 326B.32, subdivision 1; 326B.36, subdivision 7, by adding a subdivision; 326B.802, subdivision 15; 326B.805, subdivision 6; 326B.921, subdivision 8; 326B.925, subdivision 1; 326B.988; 337.01, subdivision 3; 337.05, subdivision 1; 341.21, subdivisions 2a, 2b, 2c, 4f, 7, by adding a subdivision; 341.221; 341.25; 341.27; 341.28, subdivisions 2, 3, by adding subdivisions; 341.30, subdivision 4; 341.32, subdivision 2; 341.321; 341.33; 341.355; 469.40, subdivision 11; 469.47, subdivisions 1, 5, 6; 572B.17; Laws 2021, First Special Session chapter 4, article 2, section 2, subdivision 1; article 8, section 30; Laws 2021, First Special Session chapter 10, article 2, section 24; Laws 2023, chapter 24, sections 2, subdivisions 1, 2; 3; proposing coding for new law in Minnesota Statutes, chapters 13; 16A; 116J; 116L; 116U; 177; 179; 181; 182; 216C; 327; 341; repealing Minnesota Statutes 2022, sections 177.26, subdivision 3; 179A.12, subdivision 2; 181.9413; Laws 2019, First Special Session chapter 7, article 2, section 8, as amended.

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

ARTICLE 1

LABOR POLICY

Section 1.

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

Subdivision 1.

Definitions.

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

(b) "Economic development" means financial assistance provided to a person directly or to a local unit of government or nonprofit organization on behalf of a person who is engaged in the manufacture or sale of goods and services. Economic development does not include (1) financial assistance for rehabilitation of existing housing deleted text begin or deleted text end new text begin ; new text end (2) financial assistance for new housing construction in which total financial assistance at a single project site is less than $100,000 new text begin ; or (3) financial assistance for the new construction of fully detached single-family affordable homeownership units for which the financial assistance covers no more than ten fully detached single-family affordable homeownership units. For purposes of this paragraph, "affordable homeownership" means housing targeted at households with incomes, at initial occupancy, at or below 115 percent of the state or area median income, whichever is greater, as determined by the United States Department of Housing and Urban Development new text end .

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

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

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

Sec. 2.

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

Subd. 2.

Prevailing wage required.

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

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

Sec. 3.

Minnesota Statutes 2022, section 175.16, subdivision 1, is amended to read:

Subdivision 1.

Established.

The Department of Labor and Industry shall consist of the following divisions: Division of Workers' Compensation, Division of Construction Codes and Licensing, Division of Occupational Safety and Health, Division of Statistics, Division of Labor Standards new text begin , new text end and new text begin Division of new text end Apprenticeship, and such other divisions as the commissioner of the Department of Labor and Industry may deem necessary and establish. Each division of the department and persons in charge thereof shall be subject to the supervision of the commissioner of the Department of Labor and Industry and, in addition to such duties as are or may be imposed on them by statute, shall perform such other duties as may be assigned to them by the commissioner. Notwithstanding any other law to the contrary, the commissioner is the administrator and supervisor of all of the department's dispute resolution functions and personnel and may delegate authority to compensation judges and others to make determinations under sections 176.106, 176.238, and 176.239 and to approve settlement of claims under section 176.521.

Sec. 4.

Minnesota Statutes 2022, section 177.26, subdivision 1, is amended to read:

Subdivision 1.

Creation.

The Division of Labor Standards deleted text begin and Apprenticeship deleted text end in the Department of Labor and Industry is supervised and controlled by the commissioner of labor and industry.

Sec. 5.

Minnesota Statutes 2022, section 177.26, subdivision 2, is amended to read:

Subd. 2.

Powers and duties.

The Division of Labor Standards deleted text begin and Apprenticeship deleted text end shall administer this chapter and chapters deleted text begin 178, deleted text end 181, 181A, and 184.

Sec. 6.

Minnesota Statutes 2022, section 177.27, subdivision 4, as amended by Laws 2023, chapter 30, section 1, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, new text begin 179.86, new text end 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), new text begin 181.214 to 181.217, new text end 181.275, subdivision 2a, new text begin 181.635, new text end 181.722, 181.79, new text begin 181.85 to 181.89, new text end 181.939 to 181.943, and 181.987, or with any rule promulgated under section 177.28 new text begin , 181.213, or 181.215 new text end . The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 or 181.987 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 or 181.987 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner.

Sec. 7.

Minnesota Statutes 2022, section 178.01, is amended to read:

178.01 PURPOSES.

The purposes of this chapter are: to open to all people regardless of race, sex, creed, color or national origin, the opportunity to obtain training and on-the-job learning that will equip them for profitable employment and citizenship; to establish as a means to this end, a program of voluntary apprenticeship under approved apprenticeship agreements providing facilities for their training and guidance in the arts, skills, and crafts of industry and trade or occupation, with concurrent, supplementary instruction in related subjects; to promote apprenticeship opportunities under conditions providing adequate training and on-the-job learning and reasonable earnings; to relate the supply of skilled workers to employment demands; to establish standards for apprentice training; to establish an Apprenticeship Board and apprenticeship committees to assist in effectuating the purposes of this chapter; to provide for a Division of deleted text begin Labor Standards and deleted text end Apprenticeship within the Department of Labor and Industry; to provide for reports to the legislature regarding the status of apprentice training in the state; to establish a procedure for the determination of apprenticeship agreement controversies; and to accomplish related ends.

Sec. 8.

Minnesota Statutes 2022, section 178.011, subdivision 7, is amended to read:

Subd. 7.

Division.

"Division" means the department's deleted text begin Labor Standards and deleted text end Apprenticeship Division, established under sections 175.16 and 178.03, and the State Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29, section 29.2.

Sec. 9.

Minnesota Statutes 2022, section 178.03, subdivision 1, is amended to read:

Subdivision 1.

Establishment of division.

There is established a Division of deleted text begin Labor Standards and deleted text end Apprenticeship in the Department of Labor and Industry. This division shall be administered by a director, and be under the supervision of the commissioner.

Sec. 10.

Minnesota Statutes 2022, section 178.11, is amended to read:

178.11 LABOR EDUCATION ADVANCEMENT GRANT PROGRAM.

The commissioner shall establish the labor education advancement grant program for the purpose of facilitating the participation new text begin or retention new text end of deleted text begin minorities deleted text end new text begin people of color, Indigenous people, new text end and women in deleted text begin apprenticeable trades and occupations deleted text end new text begin registered apprenticeship programs new text end . The commissioner shall award grants to community-based new text begin and nonprofit new text end organizations new text begin and Minnesota Tribal governments as defined in section 10.65, new text end serving the targeted populations on a competitive request-for-proposal basis. Interested organizations shall apply for the grants in a form prescribed by the commissioner. As part of the application process, applicants must provide a statement of need for the grant, a description of the targeted population and apprenticeship opportunities, a description of activities to be funded by the grant, evidence supporting the ability to deliver services, information related to coordinating grant activities with other employment and learning programs, identification of matching funds, a budget, and performance objectives. Each submitted application shall be evaluated for completeness and effectiveness of the proposed grant activity.

Sec. 11.

Minnesota Statutes 2022, section 179A.10, subdivision 2, is amended to read:

Subd. 2.

State employees.

new text begin (a) new text end Unclassified employees, unless otherwise excluded, are included within the units which include the classifications to which they are assigned for purposes of compensation. Supervisory employees shall only be assigned to units 12 deleted text begin , deleted text end new text begin and new text end 16 deleted text begin , and 18 deleted text end . The following are the appropriate units of executive branch state employees:

(1) law enforcement unit;

(2) craft, maintenance, and labor unit;

(3) service unit;

(4) health care nonprofessional unit;

(5) health care professional unit;

(6) clerical and office unit;

(7) technical unit;

(8) correctional guards unit;

(9) state university instructional unit;

(10) state college instructional unit;

(11) state university administrative unit;

(12) professional engineering unit;

(13) health treatment unit;

(14) general professional unit;

(15) professional state residential instructional unit;

(16) supervisory employees unit;

(17) public safety radio communications operator unit; deleted text begin and deleted text end

(18) deleted text begin law enforcement supervisors unit. deleted text end new text begin licensed peace officer special unit; and new text end

new text begin (19) licensed peace officer leader unit. new text end

Each unit consists of the classifications or positions assigned to it in the schedule of state employee job classification and positions maintained by the commissioner. The commissioner may only make changes in the schedule in existence on the day prior to August 1, 1984, as required by law or as provided in subdivision 4.

new text begin (b) The following positions are included in the licensed peace officer special unit: new text end

new text begin (1) State Patrol lieutenant; new text end

new text begin (2) NR district supervisor - enforcement; new text end

new text begin (3) assistant special agent in charge; new text end

new text begin (4) corrections investigation assistant director 2; new text end

new text begin (5) corrections investigation supervisor; and new text end

new text begin (6) commerce supervisor special agent. new text end

new text begin (c) The following positions are included in the licensed peace officer leader unit: new text end

new text begin (1) State Patrol captain; new text end

new text begin (2) NR program manager 2 enforcement; and new text end

new text begin (3) special agent in charge. 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. 12.

new text begin [181.536] POSTING OF VETERANS' BENEFITS AND SERVICES. new text end

new text begin Subdivision 1. new text end

new text begin Poster creation; content. new text end

new text begin (a) The commissioner shall consult with the commissioner of veterans affairs to create and distribute a veterans' benefits and services poster. new text end

new text begin (b) The poster must, at a minimum, include information regarding the following benefits and services available to veterans: new text end

new text begin (1) contact and website information for the Department of Veterans Affairs and the department's veterans' services program; new text end

new text begin (2) substance use disorder and mental health treatment; new text end

new text begin (3) educational, workforce, and training resources; new text end

new text begin (4) tax benefits; new text end

new text begin (5) Minnesota state veteran drivers' licenses and state identification cards; new text end

new text begin (6) eligibility for unemployment insurance benefits under state and federal law; new text end

new text begin (7) legal services; and new text end

new text begin (8) contact information for the U.S. Department of Veterans Affairs Veterans Crisis Line. new text end

new text begin (c) The commissioner must annually review the poster's content and update the poster to include the most current information available. new text end

new text begin Subd. 2. new text end

new text begin Mandatory posting. new text end

new text begin Every employer in the state with more than 50 full-time equivalent employees shall display the poster created pursuant to this section in a conspicuous place accessible to employees in the workplace. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2022, section 181.9435, subdivision 1, is amended to read:

Subdivision 1.

Investigation.

The Division of Labor Standards deleted text begin and Apprenticeship deleted text end shall receive complaints of employees against employers relating to sections 181.172, paragraph (a) or (d), and 181.939 to 181.9436 and investigate informally whether an employer may be in violation of sections 181.172, paragraph (a) or (d), and 181.939 to 181.9436. The division shall attempt to resolve employee complaints by informing employees and employers of the provisions of the law and directing employers to comply with the law. For complaints related to section 181.939, the division must contact the employer within two business days and investigate the complaint within ten days of receipt of the complaint.

Sec. 14.

Minnesota Statutes 2022, section 181.9436, is amended to read:

181.9436 POSTING OF LAW.

The Division of Labor Standards deleted text begin and Apprenticeship deleted text end shall develop, with the assistance of interested business and community organizations, an educational poster stating employees' rights under sections 181.940 to 181.9436. The department shall make the poster available, upon request, to employers for posting on the employer's premises.

Sec. 15.

Minnesota Statutes 2022, section 182.666, subdivision 1, is amended to read:

Subdivision 1.

Willful or repeated violations.

Any employer who willfully or repeatedly violates the requirements of section 182.653, or any standard, rule, or order adopted under the authority of the commissioner as provided in this chapter, may be assessed a fine not to exceed deleted text begin $70,000 deleted text end new text begin $156,259 new text end for each violation. The minimum fine for a willful violation is deleted text begin $5,000 deleted text end new text begin $11,162 new text end .

Sec. 16.

Minnesota Statutes 2022, section 182.666, subdivision 2, is amended to read:

Subd. 2.

Serious violations.

Any employer who has received a citation for a serious violation of its duties under section 182.653, or any standard, rule, or order adopted under the authority of the commissioner as provided in this chapter, shall be assessed a fine not to exceed deleted text begin $7,000 deleted text end new text begin $15,625 new text end for each violation. If a serious violation under section 182.653, subdivision 2, causes or contributes to the death of an employee, the employer shall be assessed a fine of up to $25,000 new text begin for each violation new text end .

Sec. 17.

Minnesota Statutes 2022, section 182.666, subdivision 3, is amended to read:

Subd. 3.

Nonserious violations.

Any employer who has received a citation for a violation of its duties under section 182.653, subdivisions 2 to 4, where the violation is specifically determined not to be of a serious nature as provided in section 182.651, subdivision 12, may be assessed a fine of up to deleted text begin $7,000 deleted text end new text begin $15,625 new text end for each violation.

Sec. 18.

Minnesota Statutes 2022, section 182.666, subdivision 4, is amended to read:

Subd. 4.

Failure to correct a violation.

Any employer who fails to correct a violation for which a citation has been issued under section 182.66 within the period permitted for its correction, which period shall not begin to run until the date of the final order of the commissioner in the case of any review proceedings under this chapter initiated by the employer in good faith and not solely for delay or avoidance of penalties, may be assessed a fine of not more than deleted text begin $7,000 deleted text end new text begin $15,625 new text end for each day during which the failure or violation continues.

Sec. 19.

Minnesota Statutes 2022, section 182.666, subdivision 5, is amended to read:

Subd. 5.

Posting violations.

Any employer who violates any of the posting requirements, as prescribed under this chapter, except those prescribed under section 182.661, subdivision 3a, shall be assessed a fine of up to deleted text begin $7,000 deleted text end new text begin $15,625 new text end for each violation.

Sec. 20.

Minnesota Statutes 2022, section 182.666, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Increases for inflation. new text end

new text begin (a) The commissioner shall increase the fines in subdivisions 1 to 5, except for the fine for a serious violation under section 182.653, subdivision 2, that causes or contributes to the death of an employee, to the amounts of the corresponding federal penalties for the specified violations promulgated in United States Code, title 29, section 666, subsections (a) and (b), as amended through November 5, 1990, and adjusted according to United States Code, title 28, section 2461, note (Federal Civil Penalties Inflation Adjustment), as amended through November 2, 2015. A maximum fine shall not be reduced under this subdivision. The fines shall be increased to the nearest one dollar. new text end

new text begin (b) A fine increased under this subdivision takes effect on the next October 1 after any increases to the corresponding federal penalties and applies to all fines assessed on or after October 1. new text end

new text begin (c) No later than September 1 of each year, the commissioner shall give notice in the State Register of any increases to the corresponding federal penalties and the resulting increase to the fines in subdivisions 1 to 5. new text end

Sec. 21.

new text begin [182.677] ERGONOMICS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the definitions in this subdivision apply unless otherwise specified. new text end

new text begin (b) "Health care facility" means a hospital with a North American Industrial Classification system code of 622110, 622210, or 622310; an outpatient surgical center with a North American Industrial Classification system code of 621493; and a nursing home with a North American Industrial Classification system code of 623110. new text end

new text begin (c) "Warehouse distribution center" means an employer with 100 or more employees in Minnesota and a North American Industrial Classification system code of 493110, 423110 to 423990, 424110 to 424990, 454110, or 492110. new text end

new text begin (d) "Meatpacking site" means a meatpacking or poultry processing site with 100 or more employees in Minnesota and a North American Industrial Classification system code of 311611 to 311615, except 311613. new text end

new text begin (e) "Musculoskeletal disorder" or "MSD" means a disorder of the muscles, nerves, tendons, ligaments, joints, cartilage, blood vessels, or spinal discs. new text end

new text begin Subd. 2. new text end

new text begin Ergonomics program required. new text end

new text begin (a) Every licensed health care facility, warehouse distribution center, or meatpacking site in the state shall create and implement an effective written ergonomics program establishing the employer's plan to minimize the risk of its employees developing or aggravating musculoskeletal disorders. The ergonomics program shall focus on eliminating the risk. To the extent risk exists, the ergonomics program must include feasible administrative or engineering controls to reduce the risk. new text end

new text begin (b) The program shall include: new text end

new text begin (1) an assessment to identify and reduce musculoskeletal disorder risk factors in the facility; new text end

new text begin (2) an initial and ongoing training of employees on ergonomics and its benefits, including the importance of reporting early symptoms of musculoskeletal disorders; new text end

new text begin (3) a procedure to ensure early reporting of musculoskeletal disorders to prevent or reduce the progression of symptoms, the development of serious injuries, and lost-time claims; new text end

new text begin (4) a process for employees to provide possible solutions that may be implemented to reduce, control, or eliminate workplace musculoskeletal disorders; new text end

new text begin (5) procedures to ensure that physical plant modifications and major construction projects are consistent with program goals; and new text end

new text begin (6) annual evaluations of the ergonomics program and whenever a change to the work process occurs. new text end

new text begin Subd. 3. new text end

new text begin Annual evaluation of program required. new text end

new text begin There must be an established procedure to annually assess the effectiveness of the ergonomics program, including evaluation of the process to mitigate work-related risk factors in response to reporting of symptoms of musculoskeletal disorders by employees. The annual assessment shall determine the success of the implemented ergonomic solutions and whether goals set by the ergonomics program have been met. new text end

new text begin Subd. 4. new text end

new text begin Employee training. new text end

new text begin (a) An employer subject to this section must train all employees on the following: new text end

new text begin (1) the name of each individual on the employer's safety committee; new text end

new text begin (2) the facility's ergonomic program; new text end

new text begin (3) the early signs and symptoms of musculoskeletal injuries and the procedures for reporting them; new text end

new text begin (4) the procedures for reporting injuries and other hazards; new text end

new text begin (5) any administrative or engineering controls related to ergonomic hazards that are in place or will be implemented for their positions; and new text end

new text begin (6) the requirements of subdivision 9. new text end

new text begin (b) New employees must be trained according to paragraph (a) prior to starting work. Current employees must receive initial training and ongoing annual training in accordance with the employer's ergonomics program. The employer must provide the training during working hours and compensate the employee for attending the training at the employee's standard rate of pay. All training must be in a language and with vocabulary that the employee can understand. new text end

new text begin (c) Updates to the information conveyed in the training shall be communicated to employees as soon as practicable. new text end

new text begin Subd. 5. new text end

new text begin Involvement of employees. new text end

new text begin Employers subject to this section must solicit feedback for its ergonomics program through its safety committee required by section 182.676, in addition to any other opportunities for employee participation the employer may provide. The safety committee must be directly involved in ergonomics worksite assessments and participate in the annual evaluation required by subdivision 3. new text end

new text begin Subd. 6. new text end

new text begin Workplace program or AWAIR. new text end

new text begin An employer subject to this section must reference its ergonomics program in a written Workplace Accident and Injury Reduction (AWAIR) program required by section 182.653, subdivision 8. new text end

new text begin Subd. 7. new text end

new text begin Recordkeeping. new text end

new text begin An employer subject to this section must maintain: new text end

new text begin (1) a written certification dated and signed by each person who provides training and containing the name and job title of each employee who receives training pursuant to this section. The certifications must include the date training was conducted. The certification completed by the training providers must state that the employer has provided training consistent with the requirements of this section and include a brief summary or outline of the information that was included in the training session; new text end

new text begin (2) a record of all worker visits to on-site medical or first aid personnel for the last five years, regardless of severity or type of illness or injury; and new text end

new text begin (3) a record of all musculoskeletal disorders suffered by employees for the last five years. new text end

new text begin Subd. 8. new text end

new text begin Availability of records. new text end

new text begin (a) The employer must ensure that the certification records required by subdivision 7, clause (1), are up to date and available to the commissioner, employees, and authorized employee representatives, if any, upon request. new text end

new text begin (b) Upon the request of the commissioner, an employee who is a member of the facility's safety committee, or an authorized employee representative, the employer must provide the requestor a redacted version of the medical or first aid records and records of all musculoskeletal disorders. The name, contact information, and occupation of an employee, and any other information that would reveal the identity of an employee, must be removed in the redacted version. The redacted version must only include, to the extent it would not reveal the identity of an employee, the location where the employee worked, the date of the injury or visit, a description of the medical treatment or first aid provided, and a description of the injury suffered. new text end

new text begin (c) The employer must also make available to the commissioner and the employee who is the subject of the records the unredacted medical or first aid records and unredacted records of musculoskeletal disorders required by subdivision 7, clause (2), upon request. new text end

new text begin Subd. 9. new text end

new text begin Reporting encouraged. new text end

new text begin Any employer subject to this section must not institute or maintain any program, policy, or practice that discourages employees from reporting injuries, hazards, or safety and health standard violations, including ergonomic-related hazards and symptoms of musculoskeletal disorders. new text end

new text begin Subd. 10. new text end

new text begin Training materials. new text end

new text begin The commissioner shall make training materials on implementation of this section available to all employers, upon request, at no cost as part of the duties of the commissioner under section 182.673. new text end

new text begin Subd. 11. new text end

new text begin Enforcement. new text end

new text begin This section shall be enforced by the commissioner under sections 182.66 and 182.661. A violation of this section is subject to the penalties provided under section 182.666. new text end

new text begin Subd. 12. new text end

new text begin Grant program. new text end

new text begin (a) The commissioner shall establish an ergonomics grant program to provide matching funding for employers who are subject to this section to make ergonomic improvements recommended by an on-site safety survey. Minnesota Rules, chapter 5203, applies to the administration of the grant program. new text end

new text begin (b) To be eligible for a grant under this section, an employer must: new text end

new text begin (1) be a licensed health care facility, warehouse distribution center, or meatpacking site as defined by subdivision 1; new text end

new text begin (2) have current workers' compensation insurance provided through the assigned risk plan, provided by an insurer subject to penalties under chapter 176, or as an approved self-insured employer; and new text end

new text begin (3) have an on-site safety survey with results that recommend specific equipment or practices that will reduce the risk of injury or illness to employees and prevent musculoskeletal disorders. This survey must have been conducted by a Minnesota occupational safety and health compliance investigator or workplace safety consultant, an in-house safety and health committee, a workers' compensation insurance underwriter, a private consultant, or a person under contract with the assigned risk plan. new text end

new text begin (c) Grant funds may be used for all or part of the cost of the following: new text end

new text begin (1) purchasing and installing recommended equipment intended to prevent musculoskeletal disorders; new text end

new text begin (2) operating or maintaining recommended equipment intended to prevent musculoskeletal disorders; new text end

new text begin (3) property, if the property is necessary to meet the recommendations of the on-site safety survey that are related to prevention of musculoskeletal disorders; new text end

new text begin (4) training required to operate recommended safety equipment to prevent musculoskeletal disorders; and new text end

new text begin (5) tuition reimbursement for educational costs related to identifying ergonomic-related issues that are related to the recommendations of the on-site safety survey. new text end

new text begin (d) The commissioner shall evaluate applications, submitted on forms developed by the commissioner, based on whether the proposed project: new text end

new text begin (1) is technically and economically feasible; new text end

new text begin (2) is consistent with the recommendations of the on-site safety survey and the objective of reducing risk of injury or illness to employees and preventing musculoskeletal disorders; new text end

new text begin (3) was submitted by an applicant with sufficient experience, knowledge, and commitment for the project to be implemented in a timely manner; new text end

new text begin (4) has the necessary financial commitments to cover all project costs; new text end

new text begin (5) has the support of all public entities necessary for its completion; and new text end

new text begin (6) complies with federal, state, and local regulations. new text end

new text begin (e) Grants under this section shall provide a match of up to $10,000 for private funds committed by the employer to implement the recommended ergonomics-related equipment or practices. new text end

new text begin (f) Grants will be awarded to all applicants that meet the eligibility and evaluation criteria under paragraphs (b), (c), and (d) until funding is depleted. If there are more eligible requests than funding, awards will be prorated. new text end

new text begin (g) Grant recipients are not eligible to apply for another grant under chapter 176 until two years after the date of the award. new text end

new text begin Subd. 13. new text end

new text begin Standard development. new text end

new text begin The commissioner may propose an ergonomics standard using the authority provided in section 182.655. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024, except subdivisions 9 and 12 are effective July 1, 2023. new text end

Sec. 22.

Minnesota Statutes 2022, section 326B.092, subdivision 6, is amended to read:

Subd. 6.

Fees nonrefundable.

Application and examination fees, license fees, license renewal fees, and late fees are nonrefundable except for:

(1) license renewal fees received more than two years after expiration of the license, as described in section 326B.094, subdivision 2;

(2) any overpayment of fees; and

(3) if the license is not new text begin issued or new text end renewed, the contractor recovery fund fee and any additional assessment paid under subdivision 7, paragraph (e).

Sec. 23.

Minnesota Statutes 2022, section 326B.096, is amended to read:

326B.096 REINSTATEMENT OF LICENSES.

Subdivision 1.

Reinstatement after revocation.

(a) If a license is revoked under this chapter and if an applicant for a license needs to pass an examination administered by the commissioner before becoming licensed, then, in order to have the license reinstated, the person who holds the revoked license must:

(1) retake the examination and achieve a passing score; and

(2) meet all other requirements for an initial license, including payment of the application and examination fee and the license fee. The person holding the revoked license is not eligible for Minnesota licensure without examination based on reciprocity.

(b) If a license is revoked under a chapter other than this chapter, then, in order to have the license reinstated, the person who holds the revoked license must:

(1) apply for reinstatement to the commissioner no later than two years after the effective date of the revocation;

(2) pay a deleted text begin $100 deleted text end new text begin $50 new text end reinstatement application fee and any applicable renewal license fee; and

(3) meet all applicable requirements for licensure, except that, unless required by the order revoking the license, the applicant does not need to retake any examination and does not need to repay a license fee that was paid before the revocation.

Subd. 2.

Reinstatement after suspension.

If a license is suspended, then, in order to have the license reinstated, the person who holds the suspended license must:

(1) apply for reinstatement to the commissioner no later than two years after the completion of the suspension period;

(2) pay a deleted text begin $100 deleted text end new text begin $50 new text end reinstatement application fee and any applicable renewal license fee; and

(3) meet all applicable requirements for licensure, except that, unless required by the order suspending the license, the applicant does not need to retake any examination and does not need to repay a license fee that was paid before the suspension.

Subd. 3.

Reinstatement after voluntary termination.

A licensee who is not an individual may voluntarily terminate a license issued to the person under this chapter. If a licensee has voluntarily terminated a license under this subdivision, then, in order to have the license reinstated, the person who holds the terminated license must:

(1) apply for reinstatement to the commissioner no later than the date that the license would have expired if it had not been terminated;

(2) pay a deleted text begin $100 deleted text end new text begin $25 new text end reinstatement application fee and any applicable renewal license fee; and

(3) meet all applicable requirements for licensure, except that the applicant does not need to repay a license fee that was paid before the termination.

Sec. 24.

Minnesota Statutes 2022, section 326B.103, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Electric vehicle capable space. new text end

new text begin "Electric vehicle capable space" means a designated automobile parking space that has electrical infrastructure, including but not limited to raceways, cables, electrical capacity, and panelboard or other electrical distribution space necessary for the future installation of an electric vehicle charging station. new text end

Sec. 25.

Minnesota Statutes 2022, section 326B.103, is amended by adding a subdivision to read:

new text begin Subd. 6b. new text end

new text begin Electric vehicle charging station. new text end

new text begin "Electric vehicle charging station" means a designated automobile parking space that has a dedicated connection for charging an electric vehicle. new text end

Sec. 26.

Minnesota Statutes 2022, section 326B.103, is amended by adding a subdivision to read:

new text begin Subd. 6c. new text end

new text begin Electric vehicle ready space. new text end

new text begin "Electric vehicle ready space" means a designated automobile parking space that has a branch circuit capable of supporting the installation of an electric vehicle charging station. new text end

Sec. 27.

Minnesota Statutes 2022, section 326B.103, is amended by adding a subdivision to read:

new text begin Subd. 10a. new text end

new text begin Parking facilities. new text end

new text begin "Parking facilities" includes parking lots, garages, ramps, or decks. new text end

Sec. 28.

Minnesota Statutes 2022, section 326B.103, subdivision 13, is amended to read:

Subd. 13.

State licensed facility.

"State licensed facility" means a building and its grounds that are licensed by the state as a hospital, nursing home, supervised living facility, new text begin assisted living facility, including assisted living facility with dementia care, new text end free-standing outpatient surgical center, correctional facility, boarding care home, or residential hospice.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023. new text end

Sec. 29.

Minnesota Statutes 2022, section 326B.106, subdivision 1, is amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections 326B.101 to 326B.194, the commissioner shall by rule and in consultation with the Construction Codes Advisory Council establish a code of standards for the construction, reconstruction, alteration, and repair of buildings, governing matters of structural materials, design and construction, fire protection, health, sanitation, and safety, including design and construction standards regarding heat loss control, illumination, and climate control. The code must also include duties and responsibilities for code administration, including procedures for administrative action, penalties, and suspension and revocation of certification. The code must conform insofar as practicable to model building codes generally accepted and in use throughout the United States, including a code for building conservation. In the preparation of the code, consideration must be given to the existing statewide specialty codes presently in use in the state. Model codes with necessary modifications and statewide specialty codes may be adopted by reference. The code must be based on the application of scientific principles, approved tests, and professional judgment. To the extent possible, the code must be adopted in terms of desired results instead of the means of achieving those results, avoiding wherever possible the incorporation of specifications of particular methods or materials. To that end the code must encourage the use of new methods and new materials. Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to similar buildings without significant modifications including provisions for use of building systems as specified in the industrial/modular program specified in section 326B.194. Additional plan review fees associated with similar plans must be based on costs commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six years thereafter, the commissioner shall review the new model building codes and adopt the model codes as amended for use in Minnesota, within two years of the published edition date. The commissioner may adopt amendments to the building codes prior to the adoption of the new building codes to advance construction methods, technology, or materials, or, where necessary to protect the health, safety, and welfare of the public, or to improve the efficiency or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model residential energy code and the new model commercial energy code in accordance with federal law for which the United States Department of Energy has issued an affirmative determination in compliance with United States Code, title 42, section 6833. The commissioner may adopt amendments prior to adoption of the new energy codes, as amended for use in Minnesota, to advance construction methods, technology, or materials, or, where necessary to protect the health, safety, and welfare of the public, or to improve the efficiency or use of a building.

new text begin (e) Beginning in 2024, the commissioner shall act on the new model commercial energy code by adopting each new published edition of ASHRAE 90.1 or a more efficient standard. The commercial energy code in effect in 2036 and thereafter must achieve an 80 percent reduction in annual net energy consumption or greater, using the ASHRAE 90.1-2004 as a baseline. The commissioner shall adopt commercial energy codes from 2024 to 2036 that incrementally move toward achieving the 80 percent reduction in annual net energy consumption. By January 15 of the year following each new code adoption, the commissioner shall make a report on progress under this section to the legislative committees with jurisdiction over the energy code. new text end

new text begin (f) Nothing in this section shall be interpreted to limit the ability of a public utility to offer code support programs, or to claim energy savings resulting from such programs, through its energy conservation and optimization plans approved by the commissioner of commerce under section 216B.241 or an energy conservation and optimization plan filed by a consumer-owned utility under section 216B.2403. new text end

Sec. 30.

Minnesota Statutes 2022, section 326B.106, subdivision 4, is amended to read:

Subd. 4.

Special requirements.

(a) Space for commuter vans. The code must require that any parking ramp or other parking facility constructed in accordance with the code include an appropriate number of spaces suitable for the parking of motor vehicles having a capacity of seven to 16 persons and which are principally used to provide prearranged commuter transportation of employees to or from their place of employment or to or from a transit stop authorized by a local transit authority.

(b) Smoke detection devices. The code must require that all dwellings, lodging houses, apartment houses, and hotels as defined in section 299F.362 comply with the provisions of section 299F.362.

(c) Doors in nursing homes and hospitals. The State Building Code may not require that each door entering a sleeping or patient's room from a corridor in a nursing home or hospital with an approved complete standard automatic fire extinguishing system be constructed or maintained as self-closing or automatically closing.

(d) Child care facilities in churches; ground level exit. A licensed day care center serving fewer than 30 preschool age persons and which is located in a belowground space in a church building is exempt from the State Building Code requirement for a ground level exit when the center has more than two stairways to the ground level and its exit.

(e) Family and group family day care. Until the legislature enacts legislation specifying appropriate standards, the definition of dwellings constructed in accordance with the International Residential Code as adopted as part of the State Building Code applies to family and group family day care homes licensed by the Department of Human Services under Minnesota Rules, chapter 9502.

(f) Enclosed stairways. No provision of the code or any appendix chapter of the code may require stairways of existing multiple dwelling buildings of two stories or less to be enclosed.

(g) Double cylinder dead bolt locks. No provision of the code or appendix chapter of the code may prohibit double cylinder dead bolt locks in existing single-family homes, townhouses, and first floor duplexes used exclusively as a residential dwelling. Any recommendation or promotion of double cylinder dead bolt locks must include a warning about their potential fire danger and procedures to minimize the danger.

(h) Relocated residential buildings. A residential building relocated within or into a political subdivision of the state need not comply with the State Energy Code or section 326B.439 provided that, where available, an energy audit is conducted on the relocated building.

(i) Automatic garage door opening systems. The code must require all residential buildings as defined in section 325F.82 to comply with the provisions of sections 325F.82 and 325F.83.

(j) Exterior wood decks, patios, and balconies. The code must permit the decking surface and upper portions of exterior wood decks, patios, and balconies to be constructed of (1) heartwood from species of wood having natural resistance to decay or termites, including redwood and cedars, (2) grades of lumber which contain sapwood from species of wood having natural resistance to decay or termites, including redwood and cedars, or (3) treated wood. The species and grades of wood products used to construct the decking surface and upper portions of exterior decks, patios, and balconies must be made available to the building official on request before final construction approval.

(k) Bioprocess piping and equipment. No permit fee for bioprocess piping may be imposed by municipalities under the State Building Code, except as required under section 326B.92 subdivision 1. Permits for bioprocess piping shall be according to section 326B.92 administered by the Department of Labor and Industry. All data regarding the material production processes, including the bioprocess system's structural design and layout, are nonpublic data as provided by section 13.7911.

(l) Use of ungraded lumber. The code must allow the use of ungraded lumber in geographic areas of the state where the code did not generally apply as of April 1, 2008, to the same extent that ungraded lumber could be used in that area before April 1, 2008.

(m) Window cleaning safety. deleted text begin The code must require the installation of dedicated anchorages for the purpose of suspended window cleaning on (1) new buildings four stories or greater; and (2) buildings four stories or greater, only on those areas undergoing reconstruction, alteration, or repair that includes the exposure of primary structural components of the roof. deleted text end new text begin The commissioner shall adopt rules, using the expedited rulemaking process in section 14.389, requiring window cleaning safety features that comply with a nationally recognized standard as part of the State Building Code. Window cleaning safety features shall be provided for all windows on: new text end

new text begin (1) new buildings where determined by the code; and new text end

new text begin (2) existing buildings undergoing alterations where both of the following conditions are met: new text end

new text begin (i) the windows do not currently have safe window cleaning features; and new text end

new text begin (ii) the proposed work area being altered can include provisions for safe window cleaning. new text end

deleted text begin The commissioner may waive all or a portion of the requirements of this paragraph related to reconstruction, alteration, or repair, if the installation of dedicated anchorages would not result in significant safety improvements due to limits on the size of the project, or other factors as determined by the commissioner. deleted text end

new text begin (n) Adult-size changing facilities. The commissioner shall adopt rules requiring adult-size changing facilities as part of the State Building Code. 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. 31.

Minnesota Statutes 2022, section 326B.106, is amended by adding a subdivision to read:

new text begin Subd. 16. new text end

new text begin Electric vehicle charging. new text end

new text begin The code shall require a minimum number of electric vehicle ready spaces, electric vehicle capable spaces, and electric vehicle charging stations either within or adjacent to new commercial and multifamily structures that provide on-site parking facilities. Residential structures with fewer than four dwelling units are exempt from this subdivision. new text end

Sec. 32.

Minnesota Statutes 2022, section 326B.802, subdivision 15, is amended to read:

Subd. 15.

Special skill.

"Special skill" means one of the following eight categories:

(a) Excavation. Excavation includes work in any of the following areas:

(1) excavation;

(2) trenching;

(3) grading; and

(4) site grading.

(b) Masonry and concrete. Masonry and concrete includes work in any of the following areas:

(1) drain systems;

(2) poured walls;

(3) slabs and poured-in-place footings;

(4) masonry walls;

(5) masonry fireplaces;

(6) masonry veneer; and

(7) water resistance and waterproofing.

(c) Carpentry. Carpentry includes work in any of the following areas:

(1) rough framing;

(2) finish carpentry;

(3) doors, windows, and skylights;

(4) porches and decks, excluding footings;

(5) wood foundations; and

(6) drywall installation, excluding taping and finishing.

(d) Interior finishing. Interior finishing includes work in any of the following areas:

(1) floor covering;

(2) wood floors;

(3) cabinet and counter top installation;

(4) insulation and vapor barriers;

(5) interior or exterior painting;

(6) ceramic, marble, and quarry tile;

(7) ornamental guardrail and installation of prefabricated stairs; and

(8) wallpapering.

(e) Exterior finishing. Exterior finishing includes work in any of the following areas:

(1) siding;

(2) soffit, fascia, and trim;

(3) exterior plaster and stucco;

(4) painting; and

(5) rain carrying systems, including gutters and down spouts.

(f) Drywall and plaster. Drywall and plaster includes work in any of the following areas:

(1) installation;

(2) taping;

(3) finishing;

(4) interior plaster;

(5) painting; and

(6) wallpapering.

(g) Residential roofing. Residential roofing includes work in any of the following areas:

(1) roof coverings;

(2) roof sheathing;

(3) roof weatherproofing and insulation; deleted text begin and deleted text end

(4) repair of roof support system, but not construction of new roof support system new text begin ; and new text end

new text begin (5) penetration of roof coverings for purposes of attaching a solar photovoltaic system new text end .

(h) General installation specialties. Installation includes work in any of the following areas:

(1) garage doors and openers;

(2) pools, spas, and hot tubs;

(3) fireplaces and wood stoves;

(4) asphalt paving and seal coating; deleted text begin and deleted text end

(5) ornamental guardrail and prefabricated stairs new text begin ; and new text end

new text begin (6) assembly of the support system for a solar photovoltaic system new text end .

Sec. 33.

new text begin RULEMAKING AUTHORITY. new text end

new text begin The commissioner of labor and industry shall adopt rules, using the expedited rulemaking process in Minnesota Statutes, section 14.389, that set forth adult-size changing facilities to conform with the addition of Minnesota Statutes, section 326B.106, subdivision 4, paragraph (n), under this act. 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. 34.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 177.26, subdivision 3, new text end new text begin is repealed. new text end

ARTICLE 2

AGRICULTURE AND FOOD PROCESSING WORKERS

Section 1.

Minnesota Statutes 2022, section 179.86, subdivision 1, is amended to read:

Subdivision 1.

Definition.

For the purpose of this section, "employer" means an employer in the meatpacking new text begin or poultry processing new text end industry.

Sec. 2.

Minnesota Statutes 2022, section 179.86, subdivision 3, is amended to read:

Subd. 3.

Information provided to employee by employer.

(a) new text begin At the start of employment, new text end an employer must provide an explanation in an employee's native language of the employee's rights and duties as an employee deleted text begin either deleted text end new text begin both new text end person to person deleted text begin or deleted text end new text begin and new text end through written materials that, at a minimum, include:

(1) a complete description of the salary and benefits plans as they relate to the employee;

(2) a job description for the employee's position;

(3) a description of leave policies;

(4) a description of the work hours and work hours policy; deleted text begin and deleted text end

(5) a description of the occupational hazards known to exist for the position deleted text begin . deleted text end new text begin ; and new text end

new text begin (6) when workers' compensation insurance coverage is required by chapter 176, the name of the employer's workers' compensation insurance carrier, the carrier's phone number, and the insurance policy number. new text end

(b) The explanation must also include information on the following employee rights as protected by state or federal law and a description of where additional information about those rights may be obtained:

(1) the right to organize and bargain collectively and refrain from organizing and bargaining collectively;

(2) the right to a safe workplace; deleted text begin and deleted text end

(3) the right to be free from discrimination deleted text begin . deleted text end new text begin ; and new text end

new text begin (4) the right to workers' compensation insurance coverage. new text end

new text begin (c) The Department of Labor and Industry shall provide a standard explanation form for use at the employer's option for providing the information required in this subdivision. The form shall be available in English and Spanish and additional languages upon request. new text end

new text begin (d) The requirements under this subdivision are in addition to the requirements under section 181.032. new text end

Sec. 3.

Minnesota Statutes 2022, section 179.86, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Civil action. new text end

new text begin An employee injured by a violation of this section has a cause of action for damages for the greater of $1,000 per violation or twice the employee's actual damages, plus costs and reasonable attorney fees. A damage award shall be the greater of $1,400 or three times actual damages for an employee injured by an intentional violation of this section. new text end

Sec. 4.

Minnesota Statutes 2022, section 179.86, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Fine. new text end

new text begin The commissioner of labor and industry shall fine an employer not less than $400 or more than $1,000 for each violation of subdivision 3. The fine shall be payable to the employee aggrieved. new text end

Sec. 5.

Minnesota Statutes 2022, section 181.14, subdivision 1, is amended to read:

Subdivision 1.

Prompt payment required.

(a) When any such employee quits or resigns employment, the wages or commissions earned and unpaid at the time the employee quits or resigns shall be paid in full not later than the first regularly scheduled payday following the employee's final day of employment, unless an employee is subject to a collective bargaining agreement with a different provision. Wages are earned and unpaid if the employee was not paid for all time worked at the employee's regular rate of pay or at the rate required by law, including any applicable statute, regulation, rule, ordinance, government resolution or policy, contract, or other legal authority, whichever rate of pay is greater. If the first regularly scheduled payday is less than five calendar days following the employee's final day of employment, full payment may be delayed until the second regularly scheduled payday but shall not exceed a total of 20 calendar days following the employee's final day of employment.

(b) Notwithstanding the provisions of paragraph (a), in the case of migrant workers, as defined in section 181.85, the wages or commissions earned and unpaid at the time the employee quits or resigns shall become due and payable within deleted text begin five deleted text end new text begin three new text end days thereafter.

Sec. 6.

Minnesota Statutes 2022, section 181.635, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

The definitions in this subdivision apply to this section.

(a) "Employer" means a person who employs another to perform a service for hire. Employer includes any agent or attorney of an employer who, for money or other valuable consideration paid or promised to be paid, performs any recruiting.

(b) "Person" means a corporation, partnership, limited liability company, limited liability partnership, association, individual, or group of persons.

(c) "Recruits" means to induce an individual, directly or through an agent, to relocate to Minnesota new text begin or within Minnesota new text end to work in food processing by an offer of employment new text begin or of the possibility of employment new text end .

(d) "Food processing" means canning, packing, or otherwise processing poultry or meat for consumption.

(e) "Terms and conditions of employment" means the following:

(1) nature of the work to be performed;

(2) wage rate, nature and amount of deductions for tools, clothing, supplies, or other items;

(3) anticipated hours of work per week, including overtime;

(4) anticipated slowdown or shutdown or if hours of work per week vary more than 25 percent from clause (3);

(5) duration of the work;

(6) workers' compensation coverage and name, address, and telephone number of insurer and Department of Labor and Industry;

(7) employee benefits available, including any health plans, sick leave, or paid vacation;

(8) transportation and relocation arrangements with allocation of costs between employer and employee;

(9) availability and description of housing and any costs to employee associated with housing; and

(10) any other item of value offered, and allocation of costs of item between employer and employee.

Sec. 7.

Minnesota Statutes 2022, section 181.635, subdivision 2, is amended to read:

Subd. 2.

Recruiting; required disclosure.

new text begin (a) new text end An employer shall provide written disclosure of the terms and conditions of employment to a person at the time it recruits the person to relocate to work in the food processing industry. The disclosure requirement does not apply to an exempt employee as defined in United States Code, title 29, section 213(a)(1). The disclosure must be written in English and Spanish, new text begin or English and another language if the person's preferred language is not English or Spanish, new text end dated and signed by the employer and the person recruited, and maintained by the employer for deleted text begin two deleted text end new text begin three new text end years. A copy of the signed and completed disclosure must be delivered immediately to the recruited person. The disclosure may not be construed as an employment contract.

new text begin (b) The requirements under this subdivision are in addition to the requirements under section 181.032. new text end

Sec. 8.

Minnesota Statutes 2022, section 181.635, subdivision 3, is amended to read:

Subd. 3.

Civil action.

A person injured by a violation of this section has a cause of action for damages for the greater of deleted text begin $500 deleted text end new text begin $1,000 new text end per violation or twice their actual damages, plus costs and reasonable attorney's fees. A damage award shall be the greater of deleted text begin $750 deleted text end new text begin $1,400 new text end or three times actual damages for a person injured by an intentional violation of this section.

Sec. 9.

Minnesota Statutes 2022, section 181.635, subdivision 4, is amended to read:

Subd. 4.

Fine.

The Department of Labor and Industry shall fine an employer not less than deleted text begin $200 deleted text end new text begin $400 new text end or more than deleted text begin $500 deleted text end new text begin $1,000 new text end for each violation of this section. new text begin The fine shall be payable to the employee aggrieved. new text end

Sec. 10.

Minnesota Statutes 2022, section 181.635, subdivision 6, is amended to read:

Subd. 6.

Standard disclosure form.

The Department of Labor and Industry shall provide a standard form for use at the employer's option in making the disclosure required in subdivision 2. The form shall be available in English and Spanish new text begin and additional languages upon request new text end .

Sec. 11.

Minnesota Statutes 2022, section 181.85, subdivision 2, is amended to read:

Subd. 2.

Agricultural labor.

"Agricultural labor" means field labor associated with the cultivation and harvest of fruits and vegetables and work performed in processing fruits and vegetables for market new text begin , as well as labor performed in agriculture as defined in Minnesota Rules, part 5200.0260 new text end .

Sec. 12.

Minnesota Statutes 2022, section 181.85, subdivision 4, is amended to read:

Subd. 4.

Employer.

"Employer" means deleted text begin a processor of fruits or vegetables deleted text end new text begin an individual, partnership, association, corporation, business trust, or any person or group of persons new text end that employs, either directly or indirectly through a recruiter, deleted text begin more than 30 deleted text end new text begin one or more new text end migrant workers deleted text begin per deleted text end deleted text begin day for more than seven days deleted text end in any calendar year.

Sec. 13.

Minnesota Statutes 2022, section 181.86, subdivision 1, is amended to read:

Subdivision 1.

Terms.

new text begin (a) new text end An employer that recruits a migrant worker shall provide the migrant worker, at the time the worker is recruited, with a written employment statement which shall state clearly and plainly, in English and Spanish new text begin , or English and another language if the worker's preferred language is not English or Spanish new text end :

(1) the date on which and the place at which the statement was completed and provided to the migrant worker;

(2) the name and permanent address of the migrant worker, of the employer, and of the recruiter who recruited the migrant worker;

(3) the date on which the migrant worker is to arrive at the place of employment, the date on which employment is to begin, the approximate hours of employment, and the minimum period of employment;

(4) the crops and the operations on which the migrant worker will be employed;

(5) the wage rates to be paid;

(6) the payment terms, as provided in section 181.87;

(7) any deduction to be made from wages; deleted text begin and deleted text end

(8) whether housing will be provided deleted text begin . deleted text end new text begin ; and new text end

new text begin (9) when workers' compensation insurance coverage is required by chapter 176, the name of the employer's workers' compensation insurance carrier, the carrier's phone number, and the insurance policy number. new text end

new text begin (b) The Department of Labor and Industry shall provide a standard employment statement form for use at the employer's option for providing the information required in subdivision 1. The form shall be available in English and Spanish and additional languages upon request. new text end

new text begin (c) The requirements under this subdivision are in addition to the requirements under section 181.032. new text end

Sec. 14.

Minnesota Statutes 2022, section 181.87, subdivision 2, is amended to read:

Subd. 2.

Biweekly pay.

The employer shall pay wages due to the migrant worker at least every two weeks, except on termination, when the employer shall pay within three days new text begin unless payment is required sooner pursuant to section 181.13 new text end .

Sec. 15.

Minnesota Statutes 2022, section 181.87, subdivision 3, is amended to read:

Subd. 3.

Guaranteed hours.

The employer shall guarantee to each recruited migrant worker a minimum of 70 hours pay for work in any two successive weeks and, should the pay for hours actually offered by the employer and worked by the migrant worker provide a sum of pay less than the minimum guarantee, the employer shall pay the migrant worker the difference within three days after the scheduled payday for the pay period involved. Payment for the guaranteed hours shall be at the hourly wage rate, if any, specified in the employment statement, or the federal new text begin , state, or local new text end minimum wage, whichever is deleted text begin higher deleted text end new text begin highest new text end . Any pay in addition to the hourly wage rate specified in the employment statement shall be applied against the guarantee. This guarantee applies for the minimum period of employment specified in the employment statement beginning with the date on which employment is to begin as specified in the employment statement. The date on which employment is to begin may be changed by the employer by written, telephonic, or telegraphic notice to the migrant worker, at the worker's last known new text begin physical new text end address new text begin or email address new text end , no later than ten days prior to the previously stated beginning date. The migrant worker shall contact the recruiter to obtain the latest information regarding the date upon which employment is to begin no later than five days prior to the previously stated beginning date. This guarantee shall be reduced, when there is no work available for a period of seven or more consecutive days during any two-week period subsequent to the commencement of work, by five hours pay for each such day, when the unavailability of work is caused by climatic conditions or an act of God, provided that the employer pays the migrant worker, on the normal payday, the sum of deleted text begin $5 deleted text end new text begin $50 new text end for each such day.

Sec. 16.

Minnesota Statutes 2022, section 181.87, subdivision 7, is amended to read:

Subd. 7.

Statement itemizing deductions from wages.

The employer shall provide a written statement at the time wages are paid clearly itemizing each deduction from wages. new text begin The written statement shall also comply with all other requirements for an earnings statement in section 181.032. new text end

Sec. 17.

Minnesota Statutes 2022, section 181.88, is amended to read:

181.88 RECORD KEEPING.

Every employer subject to the provisions of sections 181.85 to 181.90 shall maintain complete and accurate records deleted text begin of the names of, the daily hours worked by, the rate of pay for and the wages paid each pay period to deleted text end new text begin for new text end every individual migrant worker recruited by that employer deleted text begin , deleted text end new text begin as required by section 177.30 new text end and shall deleted text begin preserve the records deleted text end new text begin also maintain the employment statements required under section 181.86 new text end for a period of at least three years.

Sec. 18.

Minnesota Statutes 2022, section 181.89, subdivision 2, is amended to read:

Subd. 2.

Judgment; damages.

If the court finds that any defendant has violated the provisions of sections 181.86 to 181.88, the court shall enter judgment for the actual damages incurred by the plaintiff or the appropriate penalty as provided by this subdivision, whichever is greater. The court may also award court costs and a reasonable attorney's fee. The penalties shall be as follows:

(1) whenever the court finds that an employer has violated the record-keeping requirements of section 181.88, deleted text begin $50 deleted text end new text begin $200 new text end ;

(2) whenever the court finds that an employer has recruited a migrant worker without providing a written employment statement as provided in section 181.86, subdivision 1, deleted text begin $250 deleted text end new text begin $800 new text end ;

(3) whenever the court finds that an employer has recruited a migrant worker after having provided a written employment statement, but finds that the employment statement fails to comply with the requirement of section 181.86, subdivision 1 or section 181.87, deleted text begin $250 deleted text end new text begin $800 new text end ;

(4) whenever the court finds that an employer has failed to comply with the terms of an employment statement which the employer has provided to a migrant worker or has failed to comply with any payment term required by section 181.87, deleted text begin $500 deleted text end new text begin $1,600 new text end ;

(5) whenever the court finds that an employer has failed to pay wages to a migrant worker within a time period set forth in section 181.87, subdivision 2 or 3, deleted text begin $500 deleted text end new text begin $1,600 new text end ; and

(6) whenever penalties are awarded, they shall be awarded severally in favor of each migrant worker plaintiff and against each defendant found liable.

Sec. 19.

Minnesota Statutes 2022, section 181.89, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Enforcement. new text end

new text begin In addition to any other remedies available, the commissioner may assess the penalties in subdivision 2 and provide the penalty to the migrant worker aggrieved by the employer's noncompliance. new text end

ARTICLE 3

NURSING HOME WORKFORCE STANDARDS

Section 1.

new text begin TITLE. new text end

new text begin Minnesota Statutes, sections 181.211 to 181.217, shall be known as the "Minnesota Nursing Home Workforce Standards Board Act." new text end

Sec. 2.

Minnesota Statutes 2022, section 177.27, subdivision 7, is amended to read:

Subd. 7.

Employer liability.

If an employer is found by the commissioner to have violated a section identified in subdivision 4, or any rule adopted under section 177.28 new text begin , 181.213, or 181.215 new text end , and the commissioner issues an order to comply, the commissioner shall order the employer to cease and desist from engaging in the violative practice and to take such affirmative steps that in the judgment of the commissioner will effectuate the purposes of the section or rule violated. The commissioner shall order the employer to pay to the aggrieved parties back pay, gratuities, and compensatory damages, less any amount actually paid to the employee by the employer, and for an additional equal amount as liquidated damages. Any employer who is found by the commissioner to have repeatedly or willfully violated a section or sections identified in subdivision 4 shall be subject to a civil penalty of up to $1,000 for each violation for each employee. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered. In addition, the commissioner may order the employer to reimburse the department and the attorney general for all appropriate litigation and hearing costs expended in preparation for and in conducting the contested case proceeding, unless payment of costs would impose extreme financial hardship on the employer. If the employer is able to establish extreme financial hardship, then the commissioner may order the employer to pay a percentage of the total costs that will not cause extreme financial hardship. Costs include but are not limited to the costs of services rendered by the attorney general, private attorneys if engaged by the department, administrative law judges, court reporters, and expert witnesses as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's order from the date the order is signed by the commissioner until it is paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish escrow accounts for purposes of distributing damages.

Sec. 3.

new text begin [181.211] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The terms defined in this section apply to sections 181.211 to 181.217. new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin "Board" means the Minnesota Nursing Home Workforce Standards Board established under section 181.212. new text end

new text begin Subd. 3. new text end

new text begin Certified worker organization. new text end

new text begin "Certified worker organization" means a worker organization that is certified by the board to conduct nursing home worker trainings under section 181.214. new text end

new text begin Subd. 4. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of labor and industry. new text end

new text begin Subd. 5. new text end

new text begin Compensation. new text end

new text begin "Compensation" means all income and benefits paid by a nursing home employer to a nursing home worker or on behalf of a nursing home worker, including but not limited to wages, bonuses, differentials, paid leave, pay for scheduling changes, and pay for training or occupational certification. new text end

new text begin Subd. 6. new text end

new text begin Employer organization. new text end

new text begin "Employer organization" means: new text end

new text begin (1) an organization that is exempt from federal income taxation under section 501(c)(6) of the Internal Revenue Code and that represents nursing home employers; or new text end

new text begin (2) an entity that employers, who together employ a majority of nursing home workers in Minnesota, have selected as a representative. new text end

new text begin Subd. 7. new text end

new text begin Nursing home. new text end

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

new text begin Subd. 8. new text end

new text begin Nursing home employer. new text end

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

new text begin Subd. 9. new text end

new text begin Nursing home worker. new text end

new text begin "Nursing home worker" means any worker who provides services in a nursing home in Minnesota, including direct care staff, non-direct care staff, and contractors, but excluding administrative staff, medical directors, nursing directors, physicians, and individuals employed by a supplemental nursing services agency. new text end

new text begin Subd. 10. new text end

new text begin Worker organization. new text end

new text begin "Worker organization" means an organization that is exempt from federal income taxation under section 501(c)(3), 501(c)(4), or 501(c)(5) of the Internal Revenue Code, that is not dominated or interfered with by any nursing home employer within the meaning of United States Code, title 29, section 158a(2), and that has at least five years of demonstrated experience engaging with and advocating for nursing home workers. new text end

Sec. 4.

new text begin [181.212] MINNESOTA NURSING HOME WORKFORCE STANDARDS BOARD; ESTABLISHMENT. new text end

new text begin Subdivision 1. new text end

new text begin Board established; membership. new text end

new text begin (a) The Minnesota Nursing Home Workforce Standards Board is created with the powers and duties established by law. The board is composed of the following voting members: new text end

new text begin (1) the commissioner of human services or a designee; new text end

new text begin (2) the commissioner of health or a designee; new text end

new text begin (3) the commissioner of labor and industry or a designee; new text end

new text begin (4) three members who represent nursing home employers or employer organizations, appointed by the governor in accordance with section 15.066; and new text end

new text begin (5) three members who represent nursing home workers or worker organizations, appointed by the governor in accordance with section 15.066. new text end

new text begin (b) In making appointments under clause (4), the governor shall consider the geographic distribution of nursing homes within the state. new text end

new text begin Subd. 2. new text end

new text begin Terms; vacancies. new text end

new text begin (a) Board members appointed under subdivision 1, clause (4) or (5), shall serve four-year terms following the initial staggered-lot determination. new text end

new text begin (b) For members appointed under subdivision 1, clause (4) or (5), the governor shall fill vacancies occurring prior to the expiration of a member's term by appointment for the unexpired term. A member appointed under subdivision 1, clause (4) or (5), must not be appointed to more than two consecutive terms. new text end

new text begin (c) A member serves until a successor is appointed. new text end

new text begin Subd. 3. new text end

new text begin Chairperson. new text end

new text begin The board shall elect a member by majority vote to serve as its chairperson and shall determine the term to be served by the chairperson. new text end

new text begin Subd. 4. new text end

new text begin Staffing. new text end

new text begin The commissioner may employ an executive director for the board and other personnel to carry out duties of the board under sections 181.211 to 181.217. new text end

new text begin Subd. 5. new text end

new text begin Board compensation. new text end

new text begin Compensation of board members is governed by section 15.0575. new text end

new text begin Subd. 6. new text end

new text begin Application of other laws. new text end

new text begin Meetings of the board are subject to chapter 13D. The board is subject to chapter 13. The board shall comply with section 15.0597. new text end

new text begin Subd. 7. new text end

new text begin Voting. new text end

new text begin The affirmative vote of five board members is required for the board to take any action, including actions necessary to establish minimum nursing home employment standards under section 181.213. new text end

new text begin Subd. 8. new text end

new text begin Hearings and investigations. new text end

new text begin To carry out its duties, the board shall hold public hearings on, and conduct investigations into, working conditions in the nursing home industry in accordance with section 181.213. new text end

new text begin Subd. 9. new text end

new text begin Department support. new text end

new text begin The commissioner shall provide staff support to the board. The support includes professional, legal, technical, and clerical staff necessary to perform rulemaking and other duties assigned to the board. The commissioner shall supply necessary office space and supplies to assist the board in its duties. new text end

new text begin Subd. 10. new text end

new text begin Antitrust compliance. new text end

new text begin The board shall establish operating procedures that meet all state and federal antitrust requirements and may prohibit board member access to data to meet the requirements of this subdivision. new text end

new text begin Subd. 11. new text end

new text begin Annual report. new text end

new text begin By December 1, 2023, and each December 1 thereafter, the executive director of the board shall submit a report to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over labor and human services on any actions taken and any standards adopted by the board. new text end

Sec. 5.

new text begin [181.213] DUTIES OF THE BOARD; MINIMUM NURSING HOME EMPLOYMENT STANDARDS. new text end

new text begin Subdivision 1. new text end

new text begin Authority to establish minimum nursing home employment standards. new text end

new text begin (a) The board must adopt rules establishing minimum nursing home employment standards that are reasonably necessary and appropriate to protect the health and welfare of nursing home workers, to ensure that nursing home workers are properly trained about and fully informed of their rights under sections 181.211 to 181.217, and to otherwise satisfy the purposes of sections 181.211 to 181.217. Standards established by the board must include standards on compensation for nursing home workers, and may include recommendations under paragraph (c). The board may not adopt standards that are less protective of or beneficial to nursing home workers as any other applicable statute or rule or any standard previously established by the board unless there is a determination by the board under subdivision 2 that existing standards exceed the operating payment rate and external fixed costs payment rates included in the most recent budget and economic forecast completed under section 16A.103. In establishing standards under this section, the board must establish statewide standards, and may adopt standards that apply to specific nursing home occupations. new text end

new text begin (b) The board must adopt rules establishing initial standards for wages for nursing home workers no later than August 1, 2024. The board may use the authority in section 14.389 to adopt rules under this paragraph. The board shall consult with the department in the development of these standards prior to beginning the rule adoption process. new text end

new text begin (c) To the extent that any minimum standards that the board finds are reasonably necessary and appropriate to protect the health and welfare of nursing home workers fall within the jurisdiction of chapter 182, the board shall not adopt rules establishing the standards but shall instead recommend the occupational health and safety standards to the commissioner. The commissioner shall adopt nursing home health and safety standards under section 182.655 as recommended by the board, unless the commissioner determines that the recommended standard is outside the statutory authority of the commissioner, presents enforceability challenges, is infeasible to implement, or is otherwise unlawful and issues a written explanation of this determination. new text end

new text begin Subd. 2. new text end

new text begin Investigation of market conditions. new text end

new text begin (a) The board must investigate market conditions and the existing wages, benefits, and working conditions of nursing home workers for specific geographic areas of the state and specific nursing home occupations. Based on this information, the board must seek to adopt minimum nursing home employment standards that meet or exceed existing industry conditions for a majority of nursing home workers in the relevant geographic area and nursing home occupation. Except for standards exceeding the threshold determined in paragraph (d), initial employment standards established by the board are effective beginning January 1, 2025, and shall remain in effect until any subsequent standards are adopted by rules. new text end

new text begin (b) The board must consider the following types of information in making determinations that employment standards are reasonably necessary to protect the health and welfare of nursing home workers: new text end

new text begin (1) wage rate and benefit data collected by or submitted to the board for nursing home workers in the relevant geographic area and nursing home occupations; new text end

new text begin (2) statements showing wage rates and benefits paid to nursing home workers in the relevant geographic area and nursing home occupations; new text end

new text begin (3) signed collective bargaining agreements applicable to nursing home workers in the relevant geographic area and nursing home occupations; new text end

new text begin (4) testimony and information from current and former nursing home workers, worker organizations, nursing home employers, and employer organizations; new text end

new text begin (5) local minimum nursing home employment standards; new text end

new text begin (6) information submitted by or obtained from state and local government entities; and new text end

new text begin (7) any other information pertinent to establishing minimum nursing home employment standards. new text end

new text begin (c) In considering wage and benefit increases, the board must determine the impact of nursing home operating payment rates determined pursuant to section 256R.21, subdivision 3, and the employee benefits portion of the external fixed costs payment rate determined pursuant to section 256R.25. If the board, in consultation with the commissioner of human services, determines the operating payment rate and employee benefits portion of the external fixed costs payment rate will increase to comply with the new employment standards, the board shall report to the legislature the increase in funding needed to increase payment rates to comply with the new employment standards and must make implementation of any new nursing home employment standards contingent upon an appropriation, as determined by sections 256R.21 and 256R.25, to fund the rate increase necessary to comply with the new employment standards. new text end

new text begin (d) In evaluating the impact of the employment standards on payment rates determined by sections 256R.21 and 256R.25, the board, in consultation with the commissioner of human services, must consider the following: new text end

new text begin (1) the statewide average wage rates for employees pursuant to section 256R.10, subdivision 5, and benefit rates pursuant to section 256R.02, subdivisions 18 and 22, as determined by the annual Medicaid cost report used to determine the operating payment rate and the employee benefits portion of the external fixed costs payment rate for the first day of the calendar year immediately following the date the board has established minimum wage and benefit levels; new text end

new text begin (2) compare the results of clause (1) to the operating payment rate and employee benefits portion of the external fixed costs payment rate increase for the first day of the second calendar year after the adoption of any nursing home employment standards included in the most recent budget and economic forecast completed under section 16A.103; and new text end

new text begin (3) if the established nursing home employment standards result in an increase in costs that exceed the operating payment rate and external fixed costs payment rate increase included in the most recent budget and economic forecast completed under section 16A.103, effective on the proposed implementation date of the new nursing home employment standards, the board must determine if the rates will need to be increased to meet the new employment standards and the standards must not be effective until an appropriation sufficient to cover the rate increase and federal approval of the rate increase is obtained. new text end

new text begin (e) The budget and economic forecasts completed under section 16A.103 shall not assume an increase in payment rates determined under chapter 256R resulting from the new employment standards until the board certifies the rates will need to be increased and the legislature appropriates funding for the increase in payment rates. new text end

new text begin Subd. 3. new text end

new text begin Review of standards. new text end

new text begin At least once every two years, the board shall: new text end

new text begin (1) conduct a full review of the adequacy of the minimum nursing home employment standards previously established by the board; and new text end

new text begin (2) following that review, adopt new rules, amend or repeal existing rules, or make recommendations to adopt new rules or amend or repeal existing rules for minimum nursing home employment standards using the expedited rulemaking process in section 14.389, as appropriate to meet the purposes of sections 181.211 to 181.217. new text end

new text begin Subd. 4. new text end

new text begin Variance and waiver. new text end

new text begin The board shall adopt procedures for considering temporary variances and waivers of the established standards for individual nursing homes based on the board's evaluation of the risk of closure or receivership under section 144A.15, due to compliance with all or part of an applicable standard. new text end

new text begin Subd. 5. new text end

new text begin Conflict. new text end

new text begin (a) In the event of a conflict between a standard established by the board in rule and a rule adopted by another state agency, the rule adopted by the board shall apply to nursing home workers and nursing home employers. new text end

new text begin (b) Notwithstanding paragraph (a), in the event of a conflict between a standard established by the board in rule and a rule adopted by another state agency, the rule adopted by the other state agency shall apply to nursing home workers and nursing home employers if the rule adopted by the other state agency is adopted after the board's standard and the rule adopted by the other state agency is more protective or beneficial than the board's standard. new text end

new text begin (c) Notwithstanding paragraph (a), if the commissioner of health determines that a standard established by the board in rule or recommended by the board conflicts with requirements in federal regulations for nursing home certification or with state statutes or rules governing licensure of nursing homes, the federal regulations or state nursing home licensure statutes or rules shall take precedence, and the conflicting board standard or rule shall not apply to nursing home workers or nursing home employers. new text end

new text begin Subd. 6. new text end

new text begin Effect on other agreements. new text end

new text begin Nothing in sections 181.211 to 181.217 shall be construed to: new text end

new text begin (1) limit the rights of parties to a collective bargaining agreement to bargain and agree with respect to nursing home employment standards; or new text end

new text begin (2) diminish the obligation of a nursing home employer to comply with any contract, collective bargaining agreement, or employment benefit program or plan that meets or exceeds, and does not conflict with, the minimum standards and requirements in sections 181.211 to 181.217 or established by the board. new text end

Sec. 6.

new text begin [181.214] DUTIES OF THE BOARD; TRAINING FOR NURSING HOME WORKERS. new text end

new text begin Subdivision 1. new text end

new text begin Certification of worker organizations. new text end

new text begin The board shall certify worker organizations that it finds are qualified to provide training to nursing home workers according to this section. The board shall by rule establish certification criteria that a worker organization must meet in order to be certified and provide a process for renewal of certification upon the board's review of the worker organization's compliance with this section. In adopting rules to establish certification criteria under this subdivision, the board may use the authority in section 14.389. The criteria must ensure that a worker organization, if certified, is able to provide: new text end

new text begin (1) effective, interactive training on the information required by this section; and new text end

new text begin (2) follow-up written materials and responses to inquiries from nursing home workers in the languages in which nursing home workers are proficient. new text end

new text begin Subd. 2. new text end

new text begin Curriculum. new text end

new text begin (a) The board shall establish requirements for the curriculum for the nursing home worker training required by this section. A curriculum must at least provide the following information to nursing home workers: new text end

new text begin (1) the applicable compensation and working conditions in the minimum standards or local minimum standards established by the board; new text end

new text begin (2) the antiretaliation protections established in section 181.216; new text end

new text begin (3) information on how to enforce sections 181.211 to 181.217 and on how to report violations of sections 181.211 to 181.217 or of standards established by the board, including contact information for the Department of Labor and Industry, the board, and any local enforcement agencies, and information on the remedies available for violations; new text end

new text begin (4) the purposes and functions of the board and information on upcoming hearings, investigations, or other opportunities for nursing home workers to become involved in board proceedings; new text end

new text begin (5) other rights, duties, and obligations under sections 181.211 to 181.217; new text end

new text begin (6) any updates or changes to the information provided according to clauses (1) to (5) since the most recent training session; new text end

new text begin (7) any other information the board deems appropriate to facilitate compliance with sections 181.211 to 181.217; and new text end

new text begin (8) information on labor standards in other applicable local, state, and federal laws, rules, and ordinances regarding nursing home working conditions or nursing home worker health and safety. new text end

new text begin (b) Before establishing initial curriculum requirements, the board must hold at least one public hearing to solicit input on the requirements. new text end

new text begin Subd. 3. new text end

new text begin Topics covered in training session. new text end

new text begin A certified worker organization is not required to cover all of the topics listed in subdivision 2 in a single training session. A curriculum used by a certified worker organization may provide instruction on each topic listed in subdivision 2 over the course of up to three training sessions. new text end

new text begin Subd. 4. new text end

new text begin Annual review of curriculum requirements. new text end

new text begin The board must review the adequacy of its curriculum requirements at least annually and must revise the requirements as appropriate to meet the purposes of sections 181.211 to 181.217. As part of each annual review of the curriculum requirements, the board must hold at least one public hearing to solicit input on the requirements. new text end

new text begin Subd. 5. new text end

new text begin Duties of certified worker organizations. new text end

new text begin A certified worker organization: new text end

new text begin (1) must use a curriculum for its training sessions that meets requirements established by the board; new text end

new text begin (2) must provide trainings that are interactive and conducted in the languages in which the attending nursing home workers are proficient; new text end

new text begin (3) must, at the end of each training session, provide attending nursing home workers with follow-up written or electronic materials on the topics covered in the training session, in order to fully inform nursing home workers of their rights and opportunities under sections 181.211 to 181.217; new text end

new text begin (4) must make itself reasonably available to respond to inquiries from nursing home workers during and after training sessions; and new text end

new text begin (5) may conduct surveys of nursing home workers who attend a training session to assess the effectiveness of the training session and industry compliance with sections 181.211 to 181.217 and other applicable laws, rules, and ordinances governing nursing home working conditions or worker health and safety. new text end

new text begin Subd. 6. new text end

new text begin Nursing home employer duties regarding training. new text end

new text begin (a) A nursing home employer must submit written documentation to the board to certify that every two years each of its nursing home workers completes one hour of training that meets the requirements of this section and is provided by a certified worker organization. A nursing home employer may, but is not required to, host training sessions on the premises of the nursing home. new text end

new text begin (b) If requested by a certified worker organization, a nursing home employer must, after a training session provided by the certified worker organization, provide the certified worker organization with the names and contact information of the nursing home workers who attended the training session, unless a nursing home worker opts out according to paragraph (c). new text end

new text begin (c) A nursing home worker may opt out of having the worker's nursing home employer provide the worker's name and contact information to a certified worker organization that provided a training session attended by the worker by submitting a written statement to that effect to the nursing home employer. new text end

new text begin Subd. 7. new text end

new text begin Training compensation. new text end

new text begin A nursing home employer must compensate its nursing home workers at their regular hourly rate of wages and benefits for each hour of training completed as required by this section and reimburse any reasonable travel expenses associated with attending training sessions not held on the premises of the nursing home. new text end

Sec. 7.

new text begin [181.215] REQUIRED NOTICES. new text end

new text begin Subdivision 1. new text end

new text begin Provision of notice. new text end

new text begin (a) Nursing home employers must provide notices informing nursing home workers of the rights and obligations provided under sections 181.211 to 181.217 of applicable minimum nursing home employment standards and local minimum standards and that for assistance and information, nursing home workers should contact the Department of Labor and Industry. A nursing home employer must provide notice using the same means that the nursing home employer uses to provide other work-related notices to nursing home workers. Provision of notice must be at least as conspicuous as: new text end

new text begin (1) posting a copy of the notice at each work site where nursing home workers work and where the notice may be readily seen and reviewed by all nursing home workers working at the site; or new text end

new text begin (2) providing a paper or electronic copy of the notice to all nursing home workers and applicants for employment as a nursing home worker. new text end

new text begin (b) The notice required by this subdivision must include text provided by the board that informs nursing home workers that they may request the notice to be provided in a particular language. The nursing home employer must provide the notice in the language requested by the nursing home worker. The board must assist nursing home employers in translating the notice in the languages requested by their nursing home workers. new text end

new text begin Subd. 2. new text end

new text begin Minimum content and posting requirements. new text end

new text begin The board must adopt rules under section 14.389 specifying the minimum content and posting requirements for the notices required in subdivision 1. The board must make available to nursing home employers a template or sample notice that satisfies the requirements of this section and rules adopted under this section. new text end

Sec. 8.

new text begin [181.216] RETALIATION PROHIBITED. new text end

new text begin (a) A nursing home employer shall not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against a nursing home worker because the person has exercised or attempted to exercise rights protected under this act, including but not limited to: new text end

new text begin (1) exercising any right afforded to the nursing home worker under sections 181.211 to 181.217; new text end

new text begin (2) participating in any process or proceeding under sections 181.211 to 181.217, including but not limited to board hearings, board or department investigations, or other related proceedings; or new text end

new text begin (3) attending or participating in the training required by section 181.214. new text end

new text begin (b) It shall be unlawful for an employer to: new text end

new text begin (1) inform another employer that a nursing home worker or former nursing home worker has engaged in activities protected under sections 181.211 to 181.217; or new text end

new text begin (2) report or threaten to report the actual or suspected citizenship or immigration status of a nursing home worker, former nursing home worker, or family member of a nursing home worker to a federal, state, or local agency for exercising or attempting to exercise any right protected under this act. new text end

new text begin (c) A person found to have experienced retaliation in violation of this section shall be entitled to back pay and reinstatement to the person's previous position, wages, benefits, hours, and other conditions of employment. new text end

Sec. 9.

new text begin [181.217] ENFORCEMENT. new text end

new text begin Subdivision 1. new text end

new text begin Minimum nursing home employment standards. new text end

new text begin Except as provided in section 181.213, subdivision 4, paragraph (b) or (c), the minimum wages and other compensation established by the board in rule as minimum nursing home employment standards shall be the minimum wages and other compensation for nursing home workers or a subgroup of nursing home workers as a matter of state law. Except as provided in section 181.213, subdivision 4, paragraph (b) or (c), it shall be unlawful for a nursing home employer to employ a nursing home worker for lower wages or other compensation than that established as the minimum nursing home employment standards. new text end

new text begin Subd. 2. new text end

new text begin Investigations. new text end

new text begin The commissioner may investigate possible violations of sections 181.214 to 181.217 or of the minimum nursing home employment standards established by the board whenever it has cause to believe that a violation has occurred, either on the basis of a report of a suspected violation or on the basis of any other credible information, including violations found during the course of an investigation. new text end

new text begin Subd. 3. new text end

new text begin Civil action by nursing home worker. new text end

new text begin (a) One or more nursing home workers may bring a civil action in district court seeking redress for violations of sections 181.211 to 181.217 or of any applicable minimum nursing home employment standards or local minimum nursing home employment standards. Such an action may be filed in the district court of the county where a violation or violations are alleged to have been committed or where the nursing home employer resides, or in any other court of competent jurisdiction, and may represent a class of similarly situated nursing home workers. new text end

new text begin (b) Upon a finding of one or more violations, a nursing home employer shall be liable to each nursing home worker for the full amount of the wages, benefits, and overtime compensation, less any amount the nursing home employer is able to establish was actually paid to each nursing home worker, and for an additional equal amount as liquidated damages. In an action under this subdivision, nursing home workers may seek damages and other appropriate relief provided by section 177.27, subdivision 7, or otherwise provided by law, including reasonable costs, disbursements, witness fees, and attorney fees. A court may also issue an order requiring compliance with sections 181.211 to 181.217 or with the applicable minimum nursing home employment standards or local minimum nursing home employment standards. A nursing home worker found to have experienced retaliation in violation of section 181.216 shall be entitled to back pay and reinstatement to the worker's previous position, wages, benefits, hours, and other conditions of employment. new text end

new text begin (c) An agreement between a nursing home employer and nursing home worker or labor union that fails to meet the minimum standards and requirements in sections 181.211 to 181.217 or established by the board is not a defense to an action brought under this subdivision. new text end

Sec. 10.

new text begin INITIAL APPOINTMENTS. new text end

new text begin The governor shall make initial appointments to the Minnesota Nursing Home Workforce Standards Board under Minnesota Statutes, section 181.212, no later than August 1, 2023. Notwithstanding Minnesota Statutes, section 181.212, subdivision 2, the initial terms of members appointed under Minnesota Statutes, section 181.212, subdivision 1, clauses (4) and (5), shall be determined by lot by the secretary of state and shall be as follows: new text end

new text begin (1) one member appointed under each of Minnesota Statutes, section 181.212, subdivision 1, clauses (4) and (5), shall serve a two-year term; new text end

new text begin (2) one member appointed under each of Minnesota Statutes, section 181.212, subdivision 1, clauses (4) and (5), shall serve a three-year term; and new text end

new text begin (3) one member appointed under each of Minnesota Statutes, section 181.212, subdivision 1, clauses (4) and (5), shall serve a four-year term. new text end

new text begin The commissioner of labor and industry must convene the first meeting within 30 days after the governor completes appointments to the board. The board must elect a chair at its first meeting. 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

ARTICLE 4

COMBATIVE SPORTS

Section 1.

Minnesota Statutes 2022, section 341.21, subdivision 2a, is amended to read:

Subd. 2a.

Combatant.

"Combatant" means an individual who employs the act of attack and defense as a new text begin professional new text end boxer, new text begin professional or amateur new text end tough person, deleted text begin martial artist deleted text end new text begin professional or amateur kickboxer new text end , or new text begin professional or amateur new text end mixed martial artist while engaged in a combative sport.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 341.21, subdivision 2b, is amended to read:

Subd. 2b.

Combative sport.

"Combative sport" means a sport that employs the act of attack and defense with the fists, with or without using padded gloves, or feet that is practiced as a sport under the rules of the Association of Boxing Commissions, unified rules for mixed martial arts, or their equivalent. Combative sports include professional boxing deleted text begin and deleted text end new text begin , new text end professional and amateur tough person new text begin , professional or amateur kickboxing, new text end and professional and amateur mixed martial arts contests.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2022, section 341.21, subdivision 2c, is amended to read:

Subd. 2c.

Combative sports contest.

"Combative sports contest" means a professional boxing, a professional or amateur tough person, new text begin a professional or amateur kickboxing, new text end or a professional or amateur deleted text begin martial art contest or deleted text end mixed martial arts contest, bout, competition, match, or exhibition.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2022, section 341.21, subdivision 4f, is amended to read:

Subd. 4f.

Martial art.

"Martial art" means a variety of weaponless disciplines of combat or self-defense that utilize physical skill and coordination, and are practiced as combat sports. The disciplines include, but are not limited to, Wing Chun, deleted text begin kickboxing, deleted text end Tae kwon do, savate, karate, deleted text begin Muay Thai, deleted text end sanshou, Jiu Jitsu, judo, ninjitsu, kung fu, Brazilian Jiu Jitsu, wrestling, grappling, tai chi, and other weaponless martial arts disciplines.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2022, section 341.21, is amended by adding a subdivision to read:

new text begin Subd. 4i. new text end

new text begin Kickboxing. new text end

new text begin "Kickboxing" means the act of attack and defense with the fists using padded gloves and bare feet. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2022, section 341.21, subdivision 7, is amended to read:

Subd. 7.

Tough person contest.

"Tough person contest," including contests marketed as tough man or tough woman contests, means a deleted text begin contest of two-minute rounds consisting of not more than four rounds between two or more individuals who use their hands, or their feet, or both in any manner. Tough person contest includes kickboxing and other recognized martial art contest deleted text end new text begin boxing match or similar contest where each combatant wears headgear and gloves that weigh at least 12 ounces new text end .

Sec. 7.

Minnesota Statutes 2022, section 341.221, is amended to read:

341.221 ADVISORY COUNCIL.

(a) The commissioner must appoint a Combative Sports Advisory Council to advise the commissioner on the administration of duties under this chapter.

(b) The council shall have deleted text begin nine deleted text end new text begin five new text end members appointed by the commissioner. deleted text begin One member must be a retired judge of the Minnesota District Court, Minnesota Court of Appeals, Minnesota Supreme Court, the United States District Court for the District of Minnesota, or the Eighth Circuit Court of Appeals. At least four deleted text end new text begin All five new text end members must have knowledge of deleted text begin the boxing industry. At least four members must have knowledge of the mixed martial arts industry deleted text end new text begin combative sports new text end . The commissioner shall make serious efforts to appoint qualified women to serve on the council.

deleted text begin (c) Council members shall serve terms of four years with the terms ending on the first Monday in January. deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end The council shall annually elect from its membership a chair.

deleted text begin (e) deleted text end new text begin (d) new text end Meetings shall be convened by the commissioner, or by the chair with the approval of the commissioner.

deleted text begin (f) The commissioner shall designate two of the members to serve until the first Monday in January 2013; two members to serve until the first Monday in January 2014; two members to serve until the first Monday in January 2015; and three members to serve until the first Monday in January 2016. deleted text end

new text begin (e) Appointments to the council and the terms of council members are governed by sections 15.059 and 15.0597. new text end

deleted text begin (g) deleted text end new text begin (f) new text end Removal of members, filling of vacancies, and compensation of members shall be as provided in section 15.059.

new text begin (g) Meetings convened for the purpose of advising the commissioner on issues related to a challenge filed under section 341.345 are exempt from the open meeting requirements of chapter 13D. new text end

Sec. 8.

Minnesota Statutes 2022, section 341.25, is amended to read:

341.25 RULES.

(a) The commissioner may adopt rules that include standards for the physical examination and condition of combatants and referees.

(b) The commissioner may adopt other rules necessary to carry out the purposes of this chapter, including, but not limited to, the conduct of all combative sport contests and their manner, supervision, time, and place.

deleted text begin (c) The commissioner must adopt unified rules for mixed martial arts contests. deleted text end

deleted text begin (d) The commissioner may adopt the rules of the Association of Boxing Commissions, with amendments. deleted text end

deleted text begin (e) deleted text end new text begin (c) new text end The new text begin most recent version of the new text end Unified Rules of Mixed Martial Arts, as promulgated by the Association of Boxing Commissions deleted text begin and amended August 2, 2016, are deleted text end new text begin , is new text end incorporated by reference and made a part of this chapter except as qualified by this chapter and Minnesota Rules, chapter 2202. In the event of a conflict between this chapter and the Unified Rules, this chapter must govern.

new text begin (d) The most recent version of the Unified Rules of Boxing, as promulgated by the Association of Boxing Commissions, is incorporated by reference and made a part of this chapter except as qualified by this chapter and Minnesota Rules, chapter 2201. In the event of a conflict between this chapter and the Unified Rules, this chapter must govern. new text end

new text begin (e) The most recent version of the Unified Rules of Kickboxing, as promulgated by the Association of Boxing Commissions, is incorporated by reference and made a part of this chapter except as qualified by this chapter and any applicable Minnesota Rules. In the event of a conflict between this chapter and the Unified Rules, this chapter must govern. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2022, section 341.27, is amended to read:

341.27 COMMISSIONER DUTIES.

The commissioner shall:

(1) issue, deny, renew, suspend, or revoke licenses;

(2) make and maintain records of its acts and proceedings including the issuance, denial, renewal, suspension, or revocation of licenses;

(3) keep public records of the council open to inspection at all reasonable times;

(4) develop rules to be implemented under this chapter;

(5) conform to the rules adopted under this chapter;

(6) develop policies and procedures for regulating boxing new text begin , kickboxing, new text end and mixed martial arts;

new text begin (7) approve regulatory bodies to oversee martial arts and amateur boxing contests under section 341.28, subdivision 5; new text end

deleted text begin (7) deleted text end new text begin (8) new text end immediately suspend an individual license for a medical condition, including but not limited to a medical condition resulting from an injury sustained during a match, bout, or contest that has been confirmed by the ringside physician. The medical suspension must be lifted after the commissioner receives written information from a physician licensed in the home state of the licensee indicating that the combatant may resume competition, and any other information that the commissioner may by rule require. Medical suspensions are not subject to section 326B.082 or the contested case procedures provided in sections 14.57 to 14.69; and

deleted text begin (8) deleted text end new text begin (9) new text end immediately suspend an individual combatant license for a mandatory rest period, which must commence at the conclusion of every combative sports contest in which the license holder competes and does not receive a medical suspension. A rest suspension must automatically lift after 14 calendar days from the date the combative sports contest passed without notice or additional proceedings. Rest suspensions are not subject to section 326B.082 or the contested case procedures provided in sections 14.57 to 14.69.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2022, section 341.28, subdivision 2, is amended to read:

Subd. 2.

Regulatory authority; tough person contests.

All professional and amateur tough person contests are subject to this chapter. All tough person contests are subject to new text begin the most recent version of the Unified Rules of Boxing, as promulgated by the new text end Association of Boxing Commissions deleted text begin rules deleted text end . Every contestant in a tough person contest shall have a physical examination prior to their bouts. Every contestant in a tough person contest shall wear new text begin headgear and new text end padded gloves that weigh at least 12 ounces. deleted text begin All tough person bouts are limited to two-minute rounds and a maximum of four total rounds. deleted text end Officials at all tough person contests shall be licensed under this chapter.

Sec. 11.

Minnesota Statutes 2022, section 341.28, subdivision 3, is amended to read:

Subd. 3.

Regulatory authority; mixed martial arts contests deleted text begin ; similar sporting events deleted text end .

All professional and amateur mixed martial arts contests deleted text begin , martial arts contests except amateur contests regulated by the Minnesota State High School League (MSHSL), recognized martial arts studios and schools in Minnesota, and recognized national martial arts organizations holding contests between students, ultimate fight contests, and similar sporting events deleted text end are subject to this chapter and all officials at these events must be licensed under this chapter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2022, section 341.28, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Regulatory authority; kickboxing contests. new text end

new text begin All professional and amateur kickboxing contests are subject to this chapter and all officials at these events must be licensed under this chapter. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2022, section 341.28, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Regulatory authority; martial arts and amateur boxing. new text end

new text begin (a) Unless this chapter specifically states otherwise, contests or exhibitions for martial arts and amateur boxing are exempt from the requirements of this chapter and officials at these events are not required to be licensed under this chapter. new text end

new text begin (b) Martial arts and amateur boxing contests, unless subject to the exceptions set forth in subdivision 6, must be regulated by a nationally recognized organization approved by the commissioner. The organization must have a set of written standards, procedures, or rules used to sanction the combative sports it oversees. new text end

new text begin (c) Any regulatory body overseeing a martial arts or amateur boxing event must submit bout results to the commissioner within 72 hours after the event. If the regulatory body issues suspensions, the regulatory body must submit to the commissioner a list of any suspensions resulting from the event within 72 hours after the event. Regulatory bodies that oversee combative sports or martial arts contests under subdivision 6 are not subject to this paragraph. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2022, section 341.28, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Regulatory authority; certain students. new text end

new text begin Combative sports or martial arts contests regulated by the Minnesota State High School League, National Collegiate Athletic Association, National Junior Collegiate Athletic Association, National Association of Intercollegiate Athletics, or any similar organization that governs interscholastic athletics are not subject to this chapter and officials at these events are not required to be licensed under this chapter. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2022, section 341.30, subdivision 4, is amended to read:

Subd. 4.

Prelicensure requirements.

(a) Before the commissioner issues a promoter's license to an individual, corporation, or other business entity, the applicant shall deleted text begin , a minimum of six weeks before the combative sport contest is scheduled to occur, deleted text end complete a licensing application on the Office of Combative Sports website or on forms deleted text begin furnished or approved deleted text end new text begin prescribed new text end by the commissioner and shall:

deleted text begin (1) provide the commissioner with a copy of any agreement between a combatant and the applicant that binds the applicant to pay the combatant a certain fixed fee or percentage of the gate receipts; deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end show on the licensing application the owner or owners of the applicant entity and the percentage of interest held by each owner holding a 25 percent or more interest in the applicant;

deleted text begin (3) deleted text end new text begin (2) new text end provide the commissioner with a copy of the latest financial statement of the applicant;

deleted text begin (4) provide the commissioner with a copy or other proof acceptable to the commissioner of the insurance contract or policy required by this chapter; deleted text end

deleted text begin (5) deleted text end new text begin (3) new text end provide proof, where applicable, of authorization to do business in the state of Minnesota; and

deleted text begin (6) deleted text end new text begin (4) new text end deposit with the commissioner a deleted text begin cash bond or deleted text end surety bond in an amount set by the commissioner, which must not be less than $10,000. The bond shall be executed in favor of this state and shall be conditioned on the faithful performance by the promoter of the promoter's obligations under this chapter and the rules adopted under it.

(b) Before the commissioner issues a license to a combatant, the applicant shall:

(1) submit to the commissioner the results of deleted text begin a deleted text end current medical deleted text begin examination deleted text end new text begin examinations new text end on forms deleted text begin furnished or approved deleted text end new text begin prescribed new text end by the commissioner new text begin that state that the combatant is cleared to participate in a combative sport contest new text end . deleted text begin The medical examination must include an ophthalmological and neurological examination, and documentation of test results for HBV, HCV, and HIV, and any other blood test as the commissioner by rule may require. The ophthalmological examination must be designed to detect any retinal defects or other damage or condition of the eye that could be aggravated by combative sports. The neurological examination must include an electroencephalogram or medically superior test if the combatant has been knocked unconscious in a previous contest. The commissioner may also order an electroencephalogram or other appropriate neurological or physical examination before any contest if it determines that the examination is desirable to protect the health of the combatant. The commissioner shall not issue a license to an applicant submitting positive test results for HBV, HCV, or HIV; deleted text end new text begin The applicant must undergo and submit the results of the following medical examinations, which do not exempt a combatant from the requirements in section 341.33: new text end

new text begin (i) a physical examination performed by a licensed medical doctor, doctor of osteopathic medicine, advance practice nurse practitioner, or a physician assistant. Physical examinations are valid for one year from the date of the exam; new text end

new text begin (ii) an ophthalmological examination performed by an ophthalmologist or optometrist that includes dilation designed to detect any retinal defects or other damage or a condition of the eye that could be aggravated by combative sports. Ophthalmological examinations are valid for one year from the date of the exam; new text end

new text begin (iii) blood work results for HBsAg (Hepatitis B surface antigen), HCV (Hepatitis C antibody), and HIV. Blood work results are good for one year from the date blood was drawn. The commissioner shall not issue a license to an applicant submitting positive test results for HBsAg, HCV, or HIV; and new text end

new text begin (iv) other appropriate neurological or physical examinations before any contest, if the commissioner determines that the examination is desirable to protect the health of the combatant; new text end

(2) complete a licensing application on the Office of Combative Sports website or on forms deleted text begin furnished or approved deleted text end new text begin prescribed new text end by the commissioner; and

(3) provide proof that the applicant is 18 years of age. Acceptable proof is a photo driver's license, state photo identification card, passport, or birth certificate combined with additional photo identification.

new text begin (c) Before the commissioner issues a license to a referee, judge, or timekeeper, the applicant must submit proof of qualifications that may include certified training from the Association of Boxing Commissions, licensure with other regulatory bodies, professional references, or a log of bouts worked. new text end

new text begin (d) Before the commissioner issues a license to a ringside physician, the applicant must submit proof that they are licensed to practice medicine in the state of Minnesota and in good standing. new text end

Sec. 16.

Minnesota Statutes 2022, section 341.32, subdivision 2, is amended to read:

Subd. 2.

Expiration and application.

Licenses new text begin issued on or after January 1, 2023, shall new text end expire deleted text begin annually on December 31 deleted text end new text begin one year after the date of issuance new text end . A license may be applied for each year by filing an application for licensure and satisfying all licensure requirements established in section 341.30, and submitting payment of the license fees established in section 341.321. An application for a license and renewal of a license must be on a form provided by the commissioner.

Sec. 17.

Minnesota Statutes 2022, section 341.321, is amended to read:

341.321 FEE SCHEDULE.

(a) The fee schedule for professional and amateur licenses issued by the commissioner is as follows:

(1) referees, $25;

(2) promoters, $700;

(3) judges and knockdown judges, $25;

(4) trainers and seconds, deleted text begin $80 deleted text end new text begin $40 new text end ;

(5) timekeepers, $25;

(6) professional combatants, $70;

(7) amateur combatants, deleted text begin $50 deleted text end new text begin $35 new text end ; and

(8) ringside physicians, $25.

deleted text begin License fees for promoters are due at least six weeks prior to the combative sport contest. deleted text end All deleted text begin other deleted text end license fees shall be paid no later than the weigh-in prior to the contest. No license may be issued until all prelicensure requirements new text begin in section 341.30 new text end are satisfied and fees are paid.

(b) deleted text begin The commissioner shall establish a contest fee for each combative sport contest and shall consider the size and type of venue when establishing a contest fee. The deleted text end new text begin A promoter or event organizer of an event regulated by the Department of Labor and Industry must pay, per event, a new text end combative sport contest fee deleted text begin is deleted text end new text begin of new text end $1,500 per event or deleted text begin not more than deleted text end four percent of the gross ticket sales, whichever is greater deleted text begin , as determined by the commissioner when the combative sport contest is scheduled deleted text end . new text begin The fee must be paid as follows: new text end

deleted text begin (c) A professional or amateur combative sport contest fee is nonrefundable and shall be paid as follows: deleted text end

(1) $500 at the time the combative sport contest is scheduled; deleted text begin and deleted text end

(2) $1,000 at the weigh-in prior to the contest deleted text begin . deleted text end new text begin ; new text end

new text begin (3) if four percent of the gross ticket sales is greater than $1,500, the balance is due to the commissioner within 14 days of the completed contest; and new text end

new text begin (4) the value of all complimentary tickets distributed for an event, to the extent they exceed five percent of total event attendance, counts toward gross tickets sales for the purposes of determining a combative sports contest fee. For purposes of this clause, the lowest advertised ticket price shall be used to calculate the value of complimentary tickets. new text end

deleted text begin If four percent of the gross ticket sales is greater than $1,500, the balance is due to the commissioner within seven days of the completed contest. deleted text end

deleted text begin (d) The commissioner may establish the maximum number of complimentary tickets allowed for each event by rule. deleted text end

deleted text begin (e) deleted text end new text begin (c) new text end All fees and penalties collected by the commissioner must be deposited in the commissioner account in the special revenue fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023, except that the amendments to paragraph (b) are effective for combative sports contests scheduled to occur on or after January 1, 2024. new text end

Sec. 18.

new text begin [341.322] PAYMENT SCHEDULE. new text end

new text begin The commissioner may establish a schedule of payments to be paid by a promoter to referees, judges and knockdown judges, timekeepers, and ringside physicians. new text end

Sec. 19.

new text begin [341.323] EVENT APPROVAL. new text end

new text begin Subdivision 1. new text end

new text begin Preapproval documentation. new text end

new text begin Before the commissioner approves a combative sports contest, the promoter shall provide the commissioner, at least six weeks before the combative sport contest is scheduled to occur, information about the time, date, and location of the contest and at least 72 hours before the combative sport contest is scheduled to occur: new text end

new text begin (1) a copy of any agreement between a combatant and the promoter that binds the promoter to pay the combatant a certain fixed fee or percentage of the gate receipts; new text end

new text begin (2) a copy or other proof acceptable to the commissioner of the insurance contract or policy required by this chapter; new text end

new text begin (3) proof acceptable to the commissioner that the promoter will provide, at the cost of the promoter, at least one uniformed security guard or uniformed off-duty member of law enforcement to provide security at any event regulated by the Department of Labor and Industry. The commissioner may require a promoter to take additional security measures to ensure the safety of participants and spectators at an event; and new text end

new text begin (4) proof acceptable to the commissioner that the promoter will provide an ambulance service as required by section 341.324. new text end

new text begin Subd. 2. new text end

new text begin Proper licensure. new text end

new text begin Before the commissioner approves a combative sport contest, the commissioner must ensure that the promoter is properly licensed under this chapter. The promoter must maintain proper licensure from the time it schedules a combative sports contest through the date of the contest. new text end

new text begin Subd. 3. new text end

new text begin Discretion. new text end

new text begin Nothing in this section limits the commissioner's discretion in deciding whether to approve a combative sport contest or event. new text end

Sec. 20.

new text begin [341.324] AMBULANCE. new text end

new text begin A promoter must ensure, at the cost of the promoter, that a licensed ambulance service with two emergency medical technicians is on the premises during a combative sports contest. new text end

Sec. 21.

Minnesota Statutes 2022, section 341.33, is amended to read:

341.33 PHYSICAL EXAMINATION REQUIRED; FEES.

Subdivision 1.

Examination by physician.

All combatants must be examined by a physician licensed by this state within 36 hours before entering the ring, and the examining physician shall immediately file with the commissioner a written report of the examination. The physician's examination may report on the condition of the combatant's heart and general physical and general neurological condition. The physician's report may record the condition of the combatant's nervous system and brain as required by the commissioner. The physician may prohibit the combatant from entering the ring if, in the physician's professional opinion, it is in the best interest of the combatant's health. The cost of the examination is payable by the promoter conducting the contest or exhibition.

Subd. 2.

Attendance of physician.

A promoter holding or sponsoring a combative sport contest shall have in attendance a physician licensed by deleted text begin this state deleted text end new text begin Minnesota new text end . deleted text begin The commissioner may establish a schedule of fees to be paid to each attending physician by the promoter holding or sponsoring the contest. deleted text end

Sec. 22.

new text begin [341.331] PROHIBITED PERFORMANCE ENHANCING SUBSTANCES AND TESTING. new text end

new text begin Subdivision 1. new text end

new text begin Performance enhancing substances and masking agents prohibited. new text end

new text begin All combatants are prohibited from using the substances listed in the following classes contained in the World Anti-Doping Code published by the World Anti-Doping Agency, unless a combatant meets an applicable exception set forth therein: new text end

new text begin (1) S0, nonapproved substances; new text end

new text begin (2) S1, anabolic agents; new text end

new text begin (3) S2, peptide hormones, growth factors, and related substances and mimetics; new text end

new text begin (4) S3, beta-2 agonists; new text end

new text begin (5) S4, hormone and metabolic modulators; and new text end

new text begin (6) S5, diuretics and masking agents. new text end

new text begin Subd. 2. new text end

new text begin Testing. new text end

new text begin The commissioner may administer drug testing to discover violations of subdivision 1 as follows: new text end

new text begin (a) The commissioner may require a combatant to submit to a drug test to determine if substances are present in the combatant's system in violation of subdivision 1. This testing may occur at any time after the official weigh-in, on the day of the contest in which the combatant is participating, or within 24 hours of competing in a combative sports contest in a manner prescribed by the commissioner. The commissioner may require testing based on reasonable cause or random selection. Grounds for reasonable cause includes observing or receiving credible information that a combatant has used prohibited performance enhancing drugs. If testing is based on random selection, both combatants competing in a selected bout shall submit to a drug test. new text end

new text begin (b) Specimens may include urine, hair samples, or blood. Specimens shall be tested at a facility acceptable to the commissioner. Results of all drug tests shall be submitted directly to the commissioner. new text end

new text begin (c) The promoter shall pay the costs relating to drug testing combatants. Any requests for follow-up or additional testing must be paid by the combatant. new text end

new text begin Subd. 3. new text end

new text begin Discipline. new text end

new text begin (a) If a combatant fails to provide a sample for drug testing when required, and the request is made before a bout, the combatant shall not be allowed to compete in the bout. If the request is made after a bout, and the combatant fails to provide a sample for drug testing, the combatant shall be subject to disciplinary action under section 341.29. new text end

new text begin (b) If a combatant's specimen tests positive for any prohibited substances, the combatant shall be subject to disciplinary action under section 341.29. new text end

new text begin (c) A combatant who is disciplined and was the winner of a bout shall be disqualified and the decision shall be changed to no contest. The results of a bout shall remain unchanged if a combatant who is disciplined was the loser of the bout. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

new text begin [341.345] CHALLENGING THE OUTCOME OF A COMBATIVE SPORT CONTEST. new text end

new text begin Subdivision 1. new text end

new text begin Challenge. new text end

new text begin (a) If a combatant disagrees with the outcome of a combative sport contest regulated by the Department of Labor and Industry in which the combatant participated, the combatant may challenge the outcome. new text end

new text begin (b) If a third party makes a challenge on behalf of a combatant, the third party must provide written confirmation that they are authorized to make the challenge on behalf of the combatant. The written confirmation must contain the combatant's signature and must be submitted with the challenge. new text end

new text begin Subd. 2. new text end

new text begin Form. new text end

new text begin A challenge must be submitted on a form prescribed by the commissioner, set forth all relevant facts and the basis for the challenge, and state what remedy is being sought. A combatant may submit photos, videos, documents, or any other evidence the combatant would like the commissioner to consider in connection to the challenge. A combatant may challenge the outcome of a contest only if it is alleged that: new text end

new text begin (1) the referee made an incorrect call or missed a rule violation that directly affected the outcome of the contest; new text end

new text begin (2) there was collusion amongst officials to affect the outcome of the contest; or new text end

new text begin (3) scores were miscalculated. new text end

new text begin Subd. 3. new text end

new text begin Timing. new text end

new text begin A challenge must be submitted within ten days of the contest. new text end

new text begin (a) For purposes of this subdivision, the day of the contest shall not count toward the ten-day period. If the tenth day falls on a Saturday, Sunday, or legal holiday, then a combatant shall have until the next day that is not a Saturday, Sunday, or legal holiday to submit a challenge. new text end

new text begin (b) The challenge must be submitted to the commissioner at the address, fax number, or email address designated on the commissioner's website. The date on which a challenge is submitted by mail shall be the postmark date on the envelope in which the challenge is mailed. If the challenge is faxed or emailed, it must be received by the commissioner by 4:30 p.m. Central Time on the day the challenge is due. new text end

new text begin Subd. 4. new text end

new text begin Opponent's response. new text end

new text begin If the requirements of subdivisions 1 to 3 are met, the commissioner shall send a complete copy of the challenge documents, along with any supporting materials submitted, to the opposing combatant by mail, fax, or email. The opposing combatant has 14 days from the date the commissioner sends the challenge and supporting materials to submit a response to the commissioner. Additional response time is not added when the commissioner sends the challenge to the opposing combatant by mail. The opposing combatant may submit photos, videos, documents, or any other evidence the opposing combatant would like the commissioner to consider in connection to the challenge. The response must be submitted to the commissioner at the address, fax number, or email address designated on the commissioner's website. The date on which a response is submitted by mail is the postmark date on the envelope in which the response is mailed. If the response is faxed or emailed, it must be received by the commissioner by 4:30 p.m. Central Time on the day the response is due. new text end

new text begin Subd. 5. new text end

new text begin Licensed official review. new text end

new text begin The commissioner may, if the commissioner determines it would be helpful in resolving the issues raised in the challenge, send a complete copy of the challenge or response, along with any supporting materials submitted, to any licensed official involved in the combative sport contest at issue by mail, fax, or email and request the official's views on the issues raised in the challenge. new text end

new text begin Subd. 6. new text end

new text begin Order. new text end

new text begin The commissioner shall issue an order on the challenge within 60 days after receiving the opposing combatant's response. If the opposing combatant does not submit a response, the commissioner shall issue an order on the challenge within 75 days after receiving the challenge. new text end

new text begin Subd. 7. new text end

new text begin Nonacceptance. new text end

new text begin If the requirements of subdivisions 1 through 3 are not met, the commissioner must not accept the challenge and may send correspondence to the person who submitted the challenge stating the reasons for nonacceptance of the challenge. A combatant has no further appeal rights if the combatant's challenge is not accepted by the commissioner. new text end

new text begin Subd. 8. new text end

new text begin Administrative hearing. new text end

new text begin After the commissioner issues an order under subdivision 6, each combatant under section 326B.082, subdivision 8, has 30 days after service of the order to submit a request for hearing before an administrative law judge. new text end

Sec. 24.

Minnesota Statutes 2022, section 341.355, is amended to read:

341.355 CIVIL PENALTIES.

When the commissioner finds that a person has violated one or more provisions of any statute, rule, or order that the commissioner is empowered to regulate, enforce, or issue, the commissioner may impose, for each violation, a civil penalty of up to $10,000 for each violation, or a civil penalty that deprives the person of any economic advantage gained by the violation, or both. new text begin The commissioner may also impose these penalties against a person who has violated section 341.28, subdivision 5, paragraph (b) or (c). new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 5

MEAT AND POULTRY PROCESSING

Section 1.

new text begin [179.87] TITLE. new text end

new text begin Sections 179.87 to 179.8757 may be titled the "Safe Workplaces for Meat and Poultry Processing Workers Act." new text end

Sec. 2.

new text begin [179.871] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of sections 179.87 to 179.8757, the terms in this section have the meanings given. new text end

new text begin Subd. 2. new text end

new text begin Authorized employee representative. new text end

new text begin "Authorized employee representative" has the meaning given in section 182.651, subdivision 22. new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of labor and industry or the commissioner's designee. new text end

new text begin Subd. 4. new text end

new text begin Coordinator. new text end

new text begin "Coordinator" means the meatpacking industry worker rights coordinator or the coordinator's designee. new text end

new text begin Subd. 5. new text end

new text begin Meat-processing worker. new text end

new text begin "Meat-processing worker" or "worker" means any individual who a meat-processing employer suffers or permits to work directly in contact with raw meatpacking products in a meatpacking operation, including independent contractors and persons performing work for an employer through a temporary service or staffing agency. Workers in a meatpacking operation who inspect or package meatpacking products and workers who clean, maintain, or sanitize equipment or surfaces are included in the definition of a meat-processing worker. Meat-processing worker does not include a federal, state, or local government inspector. new text end

new text begin Subd. 6. new text end

new text begin Meatpacking operation. new text end

new text begin "Meatpacking operation" or "meat-processing employer" means a meatpacking or poultry processing site with 100 or more employees in Minnesota and a North American Industrial Classification system (NAICS) code of 311611 to 311615, excluding NAICS code 311613. Meatpacking operation or meat-processing employer does not mean a grocery store, butcher shop, meat market, deli, restaurant, or other business preparing meatpacking products for immediate consumption or for sale in a retail establishment or otherwise directly to an end-consumer. new text end

new text begin Subd. 7. new text end

new text begin Meatpacking products. new text end

new text begin "Meatpacking products" means meat food products and poultry food products as defined in section 31A.02, subdivision 10. new text end

Sec. 3.

new text begin [179.8715] WORKER RIGHTS COORDINATOR. new text end

new text begin (a) The commissioner must appoint a meatpacking industry worker rights coordinator in the Department of Labor and Industry and provide the coordinator with necessary office space, furniture, equipment, supplies, and assistance. new text end

new text begin (b) The commissioner must enforce sections 179.87 to 179.8757, including inspecting, reviewing, and recommending improvements to the practices and procedures of meatpacking operations in Minnesota. A meat-processing employer must grant the commissioner full access to all meatpacking operations in this state at any time that meatpacking products are being processed or meat-processing workers are on the job. new text end

new text begin (c) No later than December 1 each year, beginning December 1, 2024, the coordinator must submit a report to the governor and the chairs and ranking minority members of the legislative committees with jurisdiction over labor. The report must include recommendations to promote better treatment of meat-processing workers. The coordinator shall also post the report on the Department of Labor and Industry's website. new text end

Sec. 4.

new text begin [179.872] REFUSAL TO WORK UNDER DANGEROUS CONDITIONS. new text end

new text begin A meat-processing worker has the right to refuse to work under dangerous conditions in accordance with section 182.654, subdivision 11. Pursuant to section 182.654, subdivision 11, the worker shall continue to receive pay and shall not be subject to discrimination. new text end

Sec. 5.

new text begin [179.875] ENFORCEMENT AND COMPLIANCE. new text end

new text begin Subdivision 1. new text end

new text begin Administrative enforcement. new text end

new text begin The commissioner, either on the commissioner's initiative or in response to a complaint, may inspect a meatpacking operation and subpoena records and witnesses as provided in sections 175.20, 177.27, and 182.659. If a meat-processing employer does not comply with the commissioner's inspection, the commissioner may seek relief as provided in this section or chapter 175 or 182. new text end

new text begin Subd. 2. new text end

new text begin Compliance authority. new text end

new text begin The commissioner may issue a compliance order under section 177.27, subdivision 4, requiring an employer to comply with sections 179.8755, paragraphs (b) and (c); 179.8756, subdivisions 1 to 3 and 4, paragraphs (f) and (g); and 179.8757. The commissioner also has authority, pursuant to section 182.662, subdivision 1, to issue a stop-work or business-closure order when there is a condition or practice that could result in death or serious physical harm. new text end

new text begin Subd. 3. new text end

new text begin Private civil action. new text end

new text begin If a meat-processing employer does not comply with a provision in sections 179.87 to 179.8757, an aggrieved worker, authorized employee representative, or other person may bring a civil action in a court of competent jurisdiction within three years of an alleged violation and, upon prevailing, must be awarded the relief provided in this section. Pursuing administrative relief is not a prerequisite for bringing a civil action. new text end

new text begin Subd. 4. new text end

new text begin Other government enforcement. new text end

new text begin The attorney general may enforce sections 179.87 to 179.8757 under section 8.31. new text end

new text begin Subd. 5. new text end

new text begin Relief. new text end

new text begin (a) In a civil action or administrative proceeding brought to enforce sections 179.87 to 179.8757, the court or commissioner must order relief as provided in this subdivision. new text end

new text begin (b) For any violation of sections 179.87 to 179.8757: new text end

new text begin (1) an injunction to order compliance and restrain continued violations; new text end

new text begin (2) payment to a prevailing worker by a meat-processing employer of reasonable costs, disbursements, and attorney fees; and new text end

new text begin (3) a civil penalty payable to the state of not less than $100 per day per worker affected by the meat-processing employer's noncompliance with sections 179.87 to 179.8757. new text end

new text begin (c) Any worker who brings a complaint under sections 179.87 to 179.8757 and suffers retaliation is entitled to treble damages in addition to lost pay and recovery of attorney fees and costs. new text end

new text begin (d) Any company who is found to have retaliated against a meat-processing worker must pay a fine of up to $10,000 to the commissioner, in addition to other penalties available under the law. new text end

new text begin Subd. 6. new text end

new text begin Whistleblower enforcement; penalty distribution. new text end

new text begin (a) The relief provided in this section may be recovered through a private civil action brought on behalf of the commissioner in a court of competent jurisdiction by another individual, including an authorized employee representative, pursuant to this subdivision. new text end

new text begin (b) The individual must give written notice to the coordinator of the specific provision or provisions of sections 179.87 to 179.8757 alleged to have been violated. The individual or representative organization may commence a civil action under this subdivision if no enforcement action is taken by the commissioner within 30 days. new text end

new text begin (c) Civil penalties recovered pursuant to this subdivision must be distributed as follows: new text end

new text begin (1) 70 percent to the commissioner for enforcement of sections 179.87 to 179.8757; and new text end

new text begin (2) 30 percent to the individual or authorized employee representative. new text end

new text begin (d) The right to bring an action under this subdivision shall not be impaired by private contract. A public enforcement action must be tried promptly, without regard to concurrent adjudication of a private claim for the same alleged violation. new text end

Sec. 6.

new text begin [179.8755] RETALIATION AGAINST EMPLOYEES AND WHISTLEBLOWERS PROHIBITED. new text end

new text begin (a) Pursuant to section 182.669, no meat-processing employer or other person may discharge or discriminate against a worker because the worker has raised a concern about a meatpacking operation's health and safety practices to the employer or otherwise exercised any right authorized under sections 182.65 to 182.674. new text end

new text begin (b) No meat-processing employer or other person may attempt to require any worker to sign a contract or other agreement that would limit or prevent the worker from disclosing information about workplace health and safety practices or hazards, or to otherwise abide by a workplace policy that would limit or prevent such disclosures. Any such agreements or policies are hereby void and unenforceable as contrary to the public policy of this state. An employer's attempt to impose such a contract, agreement, or policy shall constitute an adverse action enforceable under section 179.875. new text end

new text begin (c) Reporting or threatening to report a meat-processing worker's suspected citizenship or immigration status, or the suspected citizenship or immigration status of a family member of the worker, to a federal, state, or local agency because the worker exercises a right under sections 179.87 to 179.8757 constitutes an adverse action for purposes of establishing a violation of that worker's rights. For purposes of this paragraph, "family member" means a spouse, parent, sibling, child, uncle, aunt, niece, nephew, cousin, grandparent, or grandchild related by blood, adoption, marriage, or domestic partnership. new text end

Sec. 7.

new text begin [179.8756] MEATPACKING WORKER CHRONIC INJURIES AND WORKPLACE SAFETY. new text end

new text begin Subdivision 1. new text end

new text begin Facility committee. new text end

new text begin (a) The meat-processing employer's ergonomics program under section 182.677, subdivision 2, must be developed and implemented by a committee of individuals who are knowledgeable of the tasks and work processes performed by workers at the employer's facility. The committee must include: new text end

new text begin (1) a certified professional ergonomist; new text end

new text begin (2) a licensed, board-certified physician, with preference given to a physician who has specialized experience and training in occupational medicine; and new text end

new text begin (3) at least three workers employed in the employer's facility who have completed a general industry outreach course approved by the commissioner, one of whom must be an authorized employee representative if the employer is party to a collective bargaining agreement. new text end

new text begin (b) If it is not practicable for a certified professional ergonomist or a licensed, board-certified physician to be a member of the committee required by paragraph (a), the meatpacking employer must have their safe-worker program reviewed by a certified professional ergonomist and a licensed, board-certified physician prior to implementation of the program and annually thereafter. new text end

new text begin Subd. 2. new text end

new text begin New task and annual safety training. new text end

new text begin (a) Meat-processing employers must provide every worker who is assigned a new task if the worker has no previous work experience with training on how to safely perform the task, the ergonomic and other hazards associated with the task, and training on the early signs and symptoms of musculoskeletal injuries and the procedures for reporting them. The employer must give a worker an opportunity within 30 days of receiving the new task training to receive refresher training on the topics covered in the new task training. The employer must provide this training in a language and with vocabulary that the employee can understand. new text end

new text begin (b) Meat-processing employers must provide each worker with no less than eight hours of safety training each year. This annual training must address health and safety topics that are relevant to the establishment and the worker's job assignment, such as cuts, lacerations, amputations, machine guarding, biological hazards, lockout/tagout, hazard communication, ergonomic hazards, and personal protective equipment. At least two of the eight hours of annual training must be on topics related to the facility's ergonomic injury prevention program, including the assessment of surveillance data, the ergonomic hazard prevention and control plan, and the early signs and symptoms of musculoskeletal disorders and the procedures for reporting them. The employer must provide this training in a language and with vocabulary that the employee can understand. new text end

new text begin Subd. 3. new text end

new text begin Medical services and qualifications. new text end

new text begin (a) Meat-processing employers must ensure that: new text end

new text begin (1) all first-aid providers, medical assistants, nurses, and physicians engaged by the employer are licensed and perform their duties within the scope of their licensed practice; new text end

new text begin (2) medical management of musculoskeletal disorders is under direct supervision of a licensed physician specializing in occupational medicine who will advise on best practices for management and prevention of work-related musculoskeletal disorders; and new text end

new text begin (3) medical management of musculoskeletal injuries follows the most current version of the American College of Occupational and Environmental Medicine practice guidelines. new text end

new text begin (b) The coordinator may compile, analyze, and publish annually, either in summary or detailed form, all reports or information obtained under sections 179.87 to 179.8757, including information about ergonomics programs, and may cooperate with the United States Department of Labor in obtaining national summaries of occupational deaths, injuries, and illnesses. The coordinator and authorized employee representative must preserve the anonymity of each employee with respect to whom medical reports or information is obtained. new text end

new text begin (c) Meat-processing employers must not institute or maintain any program, policy, or practice that discourages employees from reporting injuries, hazards, or safety standards violations. new text end

new text begin Subd. 4. new text end

new text begin Pandemic protections. new text end

new text begin (a) This subdivision applies during a peacetime public health emergency declared under section 12.31, subdivision 2, that involves airborne transmission. new text end

new text begin (b) Meat-processing employers must maintain a radius of space around and between each worker according to the Centers for Disease Control and Prevention guidelines unless a nonporous barrier separates the workers. An employer may accomplish such distancing by increasing physical space between workstations, slowing production speeds, staggering shifts and breaks, adjusting shift size, or a combination thereof. The employer must reconfigure common or congregate spaces to allow for such distancing, including lunch rooms, break rooms, and locker rooms. The employer must reinforce social distancing by allowing workers to maintain six feet of distance along with the use of nonporous barriers. new text end

new text begin (c) Meat-processing employers must provide employees with face masks and must make face shields available on request. Face masks, including replacement face masks, and face shields must be provided at no cost to the employee. All persons present at the meatpacking operation must wear face masks in the facility except in those parts of the facility where infection risk is low because workers work in isolation. new text end

new text begin (d) Meat-processing employers must provide all meat-processing workers with the ability to frequently and routinely sanitize their hands with either hand-washing or hand-sanitizing stations. The employer must ensure that restrooms have running hot and cold water and paper towels and are in sanitary condition. The employer must provide gloves to those who request them. new text end

new text begin (e) Meat-processing employers must clean and regularly disinfect all frequently touched surfaces in the workplace, such as workstations, training rooms, machinery controls, tools, protective garments, eating surfaces, bathrooms, showers, and other similar areas. Employers must install and maintain ventilation systems that ensure unidirectional air flow, outdoor air, and filtration in both production areas and common areas such as cafeterias and locker rooms. new text end

new text begin (f) Meat-processing employers must disseminate all required communications, notices, and any published materials regarding these protections in English, Spanish, and other languages as required for employees to understand the communication. new text end

new text begin (g) Consistent with sections 177.253 and 177.254, meat-processing employers must provide adequate break time for workers to use the bathroom, wash their hands, and don and doff protective equipment. Nothing in this subdivision relieves an employer of its obligation to comply with federal and state wage and hour laws. new text end

new text begin (h) Meat-processing employers must provide sufficient personal protective equipment for each employee for each shift, plus replacements, at no cost to the employee. Meat-processing employers must provide training in proper use of personal protective equipment, safety procedures, and sanitation. new text end

new text begin (i) Meat-processing employers must record all injuries and illnesses in the facility and make these records available upon request to the health and safety committee. The name, contact information, and occupation of an employee, and any other information that would reveal the identity of an employee, must be removed. The redacted records must only include, to the extent it would not reveal the identity of an employee, the location where the employee worked, the date of the injury or visit, a description of the medical treatment or first aid provided, and a description of the injury suffered. The employer also must make its records available to the commissioner, and where there is a collective bargaining agreement, to the authorized bargaining representative. new text end

new text begin (j) Except for paragraphs (f) and (g), this subdivision shall be enforced by the commissioner under sections 182.66 and 182.661. A violation of this subdivision is subject to the penalties provided under section 182.666. Paragraphs (f) and (g) are enforceable by the commissioner as described in section 179.875, subdivision 2. new text end

new text begin (k) The entirety of this subdivision may also be enforced as described in section 179.875, subdivisions 3 to 6. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024, except subdivision 4, which is effective July 1, 2023. new text end

Sec. 8.

new text begin [179.8757] NOTIFICATION REQUIRED. new text end

new text begin (a) Meat-processing employers must provide written information and notifications about employee rights under section 179.86 and sections 179.87 to 179.8757 to workers in their language of fluency at least annually. If a worker is unable to understand written information and notifications, the employer must provide such information and notices orally in the worker's language of fluency. new text end

new text begin (b) The coordinator must notify covered employers of the provisions of sections 179.87 to 179.8757 and any recent updates at least annually. new text end

new text begin (c) The coordinator must place information explaining sections 179.87 to 179.8757 on the Department of Labor and Industry's website in at least English, Spanish, and any other language that at least ten percent of meat-processing workers communicate in fluently. The coordinator must also make the information accessible to persons with impaired visual acuity. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2022, section 182.654, subdivision 11, is amended to read:

Subd. 11.

Refusal to work under dangerous conditions.

An employee acting in good faith has the right to refuse to work under conditions which the employee reasonably believes present an imminent danger of death or serious physical harm to the employee.

A reasonable belief of imminent danger of death or serious physical harm includes but is not limited to a reasonable belief of the employee that the employee has been assigned to work in an unsafe or unhealthful manner with a hazardous substance, harmful physical agent or infectious agent.

An employer may not discriminate against an employee for a good faith refusal to perform assigned tasks if the employee has requested that the employer correct the hazardous conditions but the conditions remain uncorrected.

An employee who has refused in good faith to perform assigned tasks and who has not been reassigned to other tasks by the employer shall, in addition to retaining a right to continued employment, receive pay for the tasks which would have been performed if (1) the employee requests the commissioner to inspect and determine the nature of the hazardous condition, and (2) the commissioner determines that the employee, by performing the assigned tasks, would have been placed in imminent danger of death or serious physical harm.

new text begin Additionally, an administrative law judge may order, in addition to the relief found in section 182.669: new text end

new text begin (1) reinstatement of the worker to the same position held before any adverse personnel action or to an equivalent position; reinstatement of full fringe benefits and seniority rights; compensation for unpaid wages, benefits, and other remuneration; or front pay in lieu of reinstatement; and new text end

new text begin (2) compensatory damages payable to the aggrieved worker equal to the greater of $5,000 or twice the actual damages, including unpaid wages, benefits, and other remuneration and punitive damages. new text end

ARTICLE 6

COVENANTS NOT TO COMPETE

Section 1.

new text begin [181.988] COVENANTS NOT TO COMPETE VOID IN EMPLOYMENT AGREEMENTS; SUBSTANTIVE PROTECTIONS OF MINNESOTA LAW APPLY. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Covenant not to compete" means an agreement between an employee and employer that restricts the employee, after termination of the employment, from performing: new text end

new text begin (1) work for another employer for a specified period of time; new text end

new text begin (2) work in a specified geographical area; or new text end

new text begin (3) work for another employer in a capacity that is similar to the employee's work for the employer that is party to the agreement. new text end

new text begin A covenant not to compete does not include a nondisclosure agreement, or agreement designed to protect trade secrets or confidential information. A covenant not to compete does not include a nonsolicitation agreement, or agreement restricting the ability to use client or contact lists, or solicit customers of the employer. new text end

new text begin (b) "Employer" means any individual, partnership, association, corporation, business, trust, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee. new text end

new text begin (c) "Employee" as used in this section means any individual who performs services for an employer, including independent contractors. new text end

new text begin (d) "Independent contractor" means any individual whose employment is governed by a contract and whose compensation is not reported to the Internal Revenue Service on a W-2 form. For purposes of this section, independent contractor also includes any corporation, limited liability corporation, partnership, or other corporate entity when an employer requires an individual to form such an organization for purposes of entering into a contract for services as a condition of receiving compensation under an independent contractor agreement. new text end

new text begin Subd. 2. new text end

new text begin Covenants not to compete void and unenforceable. new text end

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

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

new text begin (1) 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 new text end

new text begin (2) 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. new text end

new text begin (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. new text end

new text begin (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 end

new text begin Subd. 3. new text end

new text begin Choice of law; venue. new text end

new text begin (a) An employer must not require an employee who primarily resides and works in Minnesota, as a condition of employment, to agree to a provision in an agreement or contract that would do either of the following: new text end

new text begin (1) require the employee to adjudicate outside of Minnesota a claim arising in Minnesota; or new text end

new text begin (2) deprive the employee of the substantive protection of Minnesota law with respect to a controversy arising in Minnesota. new text end

new text begin (b) Any provision of a contract or agreement that violates paragraph (a) is voidable at any time by the employee and if a provision is rendered void at the request of the employee, the matter shall be adjudicated in Minnesota and Minnesota law shall govern the dispute. new text end

new text begin (c) 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 end

new text begin (d) For purposes of this section, adjudication includes litigation and arbitration. new text end

new text begin (e) This subdivision applies only to claims arising under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023, and applies to contracts and agreements entered into on or after that date. new text end

ARTICLE 7

BUILDING AND CONSTRUCTION CONTRACTS

Section 1.

Minnesota Statutes 2022, section 15.71, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Indemnification agreement. new text end

new text begin "Indemnification agreement" means an agreement by the promisor to indemnify, defend, or hold harmless the promisee against liability or claims of liability for damages arising out of bodily injury to persons or out of physical damage to tangible or real property. new text end

Sec. 2.

Minnesota Statutes 2022, section 15.71, is amended by adding a subdivision to read:

new text begin Subd. 1b. new text end

new text begin Promisee. new text end

new text begin "Promisee" includes that party's independent contractors, agents, employees, or indemnitees. new text end

Sec. 3.

Minnesota Statutes 2022, section 15.72, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Unenforceability of certain agreements. new text end

new text begin (a) An indemnification agreement contained in, or executed in connection with, a contract for a public improvement is unenforceable except to the extent that: new text end

new text begin (1) the underlying injury or damage is attributable to the negligent or otherwise wrongful act or omission, including breach of a specific contractual duty, of the promisor or the promisor's independent contractors, agents, employees, or delegatees; or new text end

new text begin (2) an owner, a responsible party, or a governmental entity agrees to indemnify a contractor directly or through another contractor with respect to strict liability under environmental laws. new text end

new text begin (b) A provision in a public building or construction contract that requires a party to provide insurance coverage to one or more other parties, including third parties, for the negligence or intentional acts or omissions of any of those other parties, including third parties, is against public policy and is void and unenforceable. new text end

new text begin (c) Paragraph (b) does not affect the validity of a provision that requires a party to provide or obtain workers' compensation insurance, construction performance or payment bonds, builder's risk policies, owner or contractor-controlled insurance programs or policies, or project-specific insurance for claims arising out of the promisor's negligent acts or omissions or the negligent acts or omissions of the promisor's independent contractors, agents, employees, or delegatees. new text end

new text begin (d) Paragraph (b) does not affect the validity of a provision that requires the promisor to provide or obtain insurance coverage for the promisee's vicarious liability, or liability imposed by warranty, arising out of the acts or omissions of the promisor. new text end

new text begin (e) Paragraph (b) does not apply to building and construction contracts for work within 50 feet of public or private railroads, or railroads regulated by the Federal Railroad Administration. new text end

Sec. 4.

Minnesota Statutes 2022, section 337.01, subdivision 3, is amended to read:

Subd. 3.

Indemnification agreement.

"Indemnification agreement" means an agreement by the promisor to indemnify new text begin , defend, new text end or hold harmless the promisee against liability or claims of liability for damages arising out of bodily injury to persons or out of physical damage to tangible or real property.

Sec. 5.

Minnesota Statutes 2022, section 337.05, subdivision 1, is amended to read:

Subdivision 1.

Agreements valid.

(a) Except as otherwise provided in paragraph (b), sections 337.01 to 337.05 do not affect the validity of agreements whereby a promisor agrees to provide specific insurance coverage for the benefit of others.

(b) A provision that requires a party to provide insurance coverage to one or more other parties, including third parties, for the negligence or intentional acts or omissions of any of those other parties, including third parties, is against public policy and is void and unenforceable.

(c) Paragraph (b) does not affect the validity of a provision that requires a party to provide or obtain workers' compensation insurance, construction performance or payment bonds, deleted text begin or project-specific insurance, including, without limitation, builder's risk policies or owner or contractor-controlled insurance programs or policies deleted text end new text begin builder's risk policies, owner or contractor-controlled insurance programs or policies, or project-specific insurance for claims arising out of the promisor's negligent acts or omissions or the negligent acts or omissions of the promisor's independent contractors, agents, employees, or delegatees new text end .

(d) Paragraph (b) does not affect the validity of a provision that requires the promisor to provide or obtain insurance coverage for the promisee's vicarious liability, or liability imposed by warranty, arising out of the acts or omissions of the promisor.

(e) Paragraph (b) does not apply to building and construction contracts for work within 50 feet of public or private railroads, or railroads regulated by the Federal Railroad Administration.

Sec. 6.

new text begin EFFECTIVE DATE. new text end

new text begin Sections 1 to 5 are effective the day following final enactment and apply to agreements entered into on or after that date. new text end

ARTICLE 8

PUBLIC EMPLOYMENT RELATIONS BOARD

Section 1.

Minnesota Statutes 2022, section 13.43, subdivision 6, is amended to read:

Subd. 6.

Access by labor organizations new text begin , Bureau of Mediation Services, Public Employment Relations Board new text end .

Personnel data may be disseminated to labor organizations new text begin and the Public Employment Relations Board new text end to the extent that the responsible authority determines that the dissemination is necessary to conduct elections, notify employees of fair share fee assessments, and implement the provisions of chapters 179 and 179A. Personnel data shall be disseminated to labor organizations new text begin , the Public Employment Relations Board, new text end and deleted text begin to deleted text end the Bureau of Mediation Services to the extent the dissemination is ordered or authorized by the commissioner of the Bureau of Mediation Services new text begin or the Public Employment Relations Board or its employees or agents new text end .

Sec. 2.

new text begin [13.7909] PUBLIC EMPLOYMENT RELATIONS BOARD DATA. new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "board" means the Public Employment Relations Board. new text end

new text begin Subd. 2. new text end

new text begin Charge and complaint data. new text end

new text begin (a) Except as provided in paragraphs (b) and (c), all data maintained by the board about a charge of unfair labor practices and appeals of determinations of the commissioner under section 179A.12, subdivision 11, are classified as protected nonpublic data or confidential data prior to being admitted into evidence at a hearing conducted pursuant to section 179A.13. Data that are admitted into evidence at a hearing conducted pursuant to section 179A.13 are public unless subject to a protective order as determined by the board or a hearing officer. new text end

new text begin (b) Statements by individuals that are provided to the board are private data on individuals, as defined by section 13.02, subdivision 12, prior to being admitted into evidence at a hearing conducted pursuant to section 179A.13, and become public once admitted into evidence. new text end

new text begin (c) The following data are public at all times: new text end

new text begin (1) the filing date of unfair labor practice charges; new text end

new text begin (2) the status of unfair labor practice charges as an original or amended charge; new text end

new text begin (3) the names and job classifications of charging parties and charged parties; new text end

new text begin (4) the provisions of law alleged to have been violated in unfair labor practice charges; new text end

new text begin (5) the complaint issued by the board; and new text end

new text begin (6) unless subject to a protective order: new text end

new text begin (i) the full and complete record of an evidentiary hearing before a hearing officer, including the hearing transcript, exhibits admitted into evidence, and posthearing briefs; new text end

new text begin (ii) recommended decisions and orders of hearing officers pursuant to section 179A.13, subdivision 1, paragraph (i); new text end

new text begin (iii) exceptions to the hearing officer's recommended decision and order filed with the board pursuant to section 179A.13, subdivision 1, paragraph (k); new text end

new text begin (iv) party and nonparty briefs filed with the board; and new text end

new text begin (v) decisions and orders issued by the board. new text end

new text begin (d) The board may make any data classified as private, protected nonpublic, or confidential pursuant to this subdivision accessible to any person or party if the access will aid the implementation of chapters 179 and 179A or ensure due process protection of the parties. new text end

Sec. 3.

Minnesota Statutes 2022, section 179A.041, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Open Meeting Law; exceptions. new text end

new text begin Chapter 13D does not apply to meetings of the board when it is deliberating on the merits of unfair labor practice charges under sections 179.11, 179.12, and 179A.13; reviewing a recommended decision and order of a hearing officer under section 179A.13; or reviewing decisions of the commissioner of the Bureau of Mediation Services relating to unfair labor practices under section 179A.12, subdivision 11. 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

ARTICLE 9

WAREHOUSE WORKERS

Section 1.

new text begin [182.6526] WAREHOUSE DISTRIBUTION WORKER SAFETY. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The terms defined in this subdivision have the meanings given. new text end

new text begin (b) "Aggregated employee work speed data" means a compilation of employee work speed data for multiple employees, in summary form, assembled in full or in another form such that the data cannot be identified with any individual. new text end

new text begin (c) "Commissioner" means the commissioner of labor and industry. new text end

new text begin (d)(1) Except as provided in clause (2), "employee" means an employee who works at a warehouse distribution center. new text end

new text begin (2) For the purposes of subdivisions 2, 3, and 4 only, "employee" means a nonexempt employee performing warehouse work occurring on the property of a warehouse distribution center and does not include a nonexempt employee performing solely manufacturing, administrative, sales, accounting, human resources, or driving work at or to and from a warehouse distribution center. new text end

new text begin (e) "Employee work speed data" means information an employer collects, stores, analyzes, or interprets relating to an individual employee's performance of a quota, including but not limited to quantities of tasks performed, quantities of items or materials handled or produced, rates or speeds of tasks performed, measurements or metrics of employee performance in relation to a quota, and time categorized as performing tasks or not performing tasks. Employee work speed data does not include itemized earnings statements pursuant to chapter 181, except for any content of those records that includes employee work speed data as defined in this paragraph. new text end

new text begin (f) "Employer" means a person who directly or indirectly, or through an agent or any other person, including through the services of a third-party employer, temporary service, or staffing agency or similar entity, employs or exercises control over the wages, hours, or working conditions of 250 or more employees at a single warehouse distribution center or 1,000 or more employees at one or more warehouse distribution centers in the state. For purposes of this paragraph, all employees of an employer's unitary business, as defined in section 290.17, subdivision 4, shall be counted in determining the number of employees employed at a single warehouse distribution center or at one or more warehouse distribution centers in the state. new text end

new text begin (g) "Warehouse distribution center" means an establishment as defined by any of the following North American Industry Classification System (NAICS) codes: new text end

new text begin (1) 493110 for General Warehousing and Storage; new text end

new text begin (2) 423 for Merchant Wholesalers, Durable Goods; new text end

new text begin (3) 424 for Merchant Wholesalers, Nondurable Goods; new text end

new text begin (4) 454110 for Electronic Shopping and Mail-Order Houses; and new text end

new text begin (5) 492110 for Couriers and Express Delivery Services. new text end

new text begin (h) "Quota" means a work standard under which: new text end

new text begin (1) an employee or group of employees is assigned or required to perform at a specified productivity speed, or perform a quantified number of tasks, or handle or produce a quantified amount of material, or perform without a certain number of errors or defects, as measured at the individual or group level within a defined time period; or new text end

new text begin (2) an employee's actions are categorized and measured between time performing tasks and not performing tasks, and the employee's failure to complete a task performance standard may have an adverse impact on the employee's continued employment. new text end

new text begin Subd. 2. new text end

new text begin Written description required. new text end

new text begin (a) Each employer shall provide to each employee a written description of each quota to which the employee is subject and how it is measured, including the quantified number of tasks to be performed or materials to be produced or handled or the limit on time categorized as not performing tasks, within the defined time period, and any potential adverse employment action that could result from failure to meet the quota. new text end

new text begin (b) The written description must be understandable in plain language and in the language identified by each employee as the primary language of that employee. new text end

new text begin (c) The written description must be provided: new text end

new text begin (1) upon hire or within 30 days of the effective date of this section; and new text end

new text begin (2) no fewer than one working day prior to the effective date of any increase of an existing quota and no later than the time of implementation for any decrease of an existing quota. new text end

new text begin (d) An employer shall not take adverse employment action against an employee for failure to meet a quota that has not been disclosed to the employee. new text end

new text begin Subd. 3. new text end

new text begin Breaks. new text end

new text begin An employee shall not be required to meet a quota that prevents compliance with meal or rest or prayer periods; use of restroom facilities, including reasonable travel time to and from restroom facilities as provided under section 177.253, subdivision 1; or occupational health and safety standards under this chapter or Minnesota Rules, chapter 5205. An employer shall not take adverse employment action against an employee for failure to meet a quota that does not allow a worker to comply with meal or rest or prayer periods or occupational health and safety standards under this chapter. new text end

new text begin Subd. 4. new text end

new text begin Employee work speed data. new text end

new text begin (a) Employees have the right to request orally or in writing from their direct supervisor or another representative designated by the employer, and the employer shall provide within four business days: (1) a written description of each quota to which the employee is subject; (2) a copy of the most recent 90 days of the employee's own personal employee work speed data; and (3) a copy of the most recent 90 days of aggregated employee work speed data for similar employees at the same work site. new text end

new text begin The written description of each quota must meet the requirements of subdivision 2, paragraph (b), and the employee work speed data must be provided in a manner understandable to the employee. An employee may make a request under this paragraph no more than four times per year. new text end

new text begin (b) If an employer disciplines an employee for failure to meet a quota, the employer must, at the time of discipline, provide the employee with a written copy of the most recent 90 days of the employee's own personal employee work speed data. If an employer dismisses an employee for any reason, they must, at the time of firing, provide the employee with a written copy of the most recent 90 days of the employee's own personal employee work speed data. An employer shall not retaliate against an employee for requesting data under this subdivision. Discipline means taking a formal action, documented in writing, and does not mean conversations surrounding performance improvement or training. An employer must formally document any disciplinary action. new text end

new text begin Subd. 5. new text end

new text begin High rates of injury. new text end

new text begin If a particular work site or employer is found to have an employee incidence rate in a given year, based on data reported to the federal Occupational Safety and Health Administration, of at least 30 percent higher than that year's average incidence rate for the relevant NAICS codes, the commissioner shall open an investigation of violations under this section. The employer must also hold its safety committee meetings as provided under section 182.676 monthly until, for two consecutive years, the work site or employer does not have an employee incidence rate 30 percent higher than the average yearly incidence rate for the relevant NAICS code. new text end

new text begin Subd. 6. new text end

new text begin Enforcement. new text end

new text begin (a) Subdivisions 2, paragraphs (a) to (c), 4, and 5 shall be enforced by the commissioner under sections 182.66, 182.661, and 182.669. A violation of this section is subject to the penalties provided under sections 182.666 and 182.669. new text end

new text begin (b) A current or former employee aggrieved by a violation of this section may bring a civil cause of action for damages and injunctive relief to obtain compliance with this section; may receive other equitable relief as determined by a court, including reinstatement with back pay; and may, upon prevailing in the action, recover costs and reasonable attorney fees in that action. A cause of action under this section must be commenced within one year of the date of the violation. new text end

new text begin (c) Nothing in this section shall be construed to prevent local enforcement of occupational health and safety standards that are more restrictive than this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023. new text end

ARTICLE 10

CONSTRUCTION WORKER WAGE PROTECTIONS

Section 1.

Minnesota Statutes 2022, section 177.27, subdivision 1, is amended to read:

Subdivision 1.

Examination of records.

The commissioner may enter during reasonable office hours or upon request and inspect the place of business or employment of any employer of employees working in the state, to examine and inspect books, registers, payrolls, and other records of any employer that in any way relate to wages, hours, and other conditions of employment of any employees. The commissioner may transcribe any or all of the books, registers, payrolls, and other records as the commissioner deems necessary or appropriate and may question the employees to ascertain compliance with sections 177.21 to 177.435 new text begin and 181.165 new text end . The commissioner may investigate wage claims or complaints by an employee against an employer if the failure to pay a wage may violate Minnesota law or an order or rule of the department.

Sec. 2.

Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, new text begin 181.165, new text end 181.172, paragraph (a) or (d), 181.275, subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, or with any rule promulgated under section 177.28. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 new text begin or 181.165 new text end if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 new text begin or 181.165 new text end and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69 new text begin or 181.165 new text end . If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner. new text begin For the purposes of this subdivision, an employer includes a contractor that has assumed a subcontractor's liability within the meaning of section 181.165. new text end

Sec. 3.

Minnesota Statutes 2022, section 177.27, subdivision 8, is amended to read:

Subd. 8.

Court actions; suits brought by private parties.

An employee may bring a civil action seeking redress for a violation or violations of sections 177.21 to 177.44 new text begin and 181.165 new text end directly to district court. An employer who pays an employee less than the wages and overtime compensation to which the employee is entitled under sections 177.21 to 177.44 new text begin or a contractor that has assumed a subcontractor's liability as required by section 181.165, new text end is liable to the employee for the full amount of the wages, gratuities, and overtime compensation, less any amount the employer new text begin or contractor new text end is able to establish was actually paid to the employee and for an additional equal amount as liquidated damages. In addition, in an action under this subdivision the employee may seek damages and other appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement between the employee and the employer to work for less than the applicable wage is not a defense to the action.

Sec. 4.

Minnesota Statutes 2022, section 177.27, subdivision 9, is amended to read:

Subd. 9.

District court jurisdiction.

Any action brought under subdivision 8 may be filed in the district court of the county wherein a violation or violations of sections 177.21 to 177.44 new text begin or 181.165 new text end are alleged to have been committed, where the respondent resides or has a principal place of business, or any other court of competent jurisdiction. The action may be brought by one or more employees.

Sec. 5.

Minnesota Statutes 2022, section 177.27, subdivision 10, is amended to read:

Subd. 10.

Attorney fees and costs.

In any action brought pursuant to subdivision 8, the court shall order an employer who is found to have committed a violation or violations of sections 177.21 to 177.44 new text begin or 181.165 new text end to pay to the employee or employees reasonable costs, disbursements, witness fees, and attorney fees.

Sec. 6.

new text begin [181.165] WAGE PROTECTION; CONSTRUCTION WORKERS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Claimant" means any person claiming unpaid wages, fringe benefits, penalties, or resulting liquidated damages that are owed as required by law, including any applicable statute, regulation, rule, ordinance, government resolution or policy, contract, or other legal authority. new text end

new text begin (c) "Commissioner" refers to the commissioner of labor and industry. new text end

new text begin (d) "Construction contract" means a written or oral agreement for the construction, reconstruction, erection, alteration, remodeling, repairing, maintenance, moving, or demolition of any building, structure, or improvement, or relating to the excavation of or development or improvement to land. For purposes of this section, a construction contract shall not include a home improvement contract for the performance of a home improvement between a home improvement contractor and the owner of an owner-occupied dwelling, and a home construction contract for one- or two-family dwelling units except where such contract or contracts results in the construction of more than ten one- or two-family owner-occupied dwellings at one project site annually. new text end

new text begin (e) "Contractor" means any person, firm, partnership, corporation, association, company, organization, or other entity, including a construction manager, general or prime contractor, joint venture, or any combination thereof, along with their successors, heirs, and assigns, which enters into a construction contract with an owner. An owner shall be deemed a contractor and liable as such under this section if said owner has entered into a construction contract with more than one contractor or subcontractor on any construction site. new text end

new text begin (f) "Owner" means any person, firm, partnership, corporation, association, company, organization, or other entity, or a combination of any thereof, with an ownership interest, whether the interest or estate is in fee, as vendee under a contract to purchase, as lessee or another interest or estate less than fee that causes a building, structure, or improvement, new or existing, to be constructed, reconstructed, erected, altered, remodeled, repaired, maintained, moved, or demolished or that causes land to be excavated or otherwise developed or improved. new text end

new text begin (g) "Subcontractor" means any person, firm, partnership, corporation, company, association, organization or other entity, or any combination thereof, that is a party to a contract with a contractor or party to a contract with the contractor's subcontractors at any tier to perform any portion of work within the scope of the contractor's construction contract with the owner, including where the subcontractor has no direct privity of contract with the contractor. When the owner is deemed a contractor, subcontractor also includes the owner's contractors. new text end

new text begin Subd. 2. new text end

new text begin Assumption of liability. new text end

new text begin (a) A contractor entering into a construction contract shall assume and is liable for any unpaid wages, fringe benefits, penalties, and resulting liquidated damages owed to a claimant or third party acting on the claimant's behalf by a subcontractor at any tier acting under, by, or for the contractor or its subcontractors for the claimant's performance of labor. new text end

new text begin (b) A contractor or any other person shall not evade or commit any act that negates the requirements of this section. No agreement by an employee or subcontractor to indemnify a contractor or otherwise release or transfer liability assigned to a contractor under this section shall be valid. However, if a contractor has satisfied unpaid wage claims of an employee and incurred fees and costs in doing so, such contractor may then pursue actual and liquidated damages from any subcontractor who caused the contractor to incur those damages. new text end

new text begin (c) A contractor shall not evade liability under this section by claiming that a person is an independent contractor rather than an employee of a subcontractor unless the person meets the criteria required by section 181.723, subdivision 4. new text end

new text begin Subd. 3. new text end

new text begin Enforcement. new text end

new text begin (a) In the case of a complaint filed with the commissioner under section 177.27, subdivision 1, or a private civil action by an employee under section 177.27, subdivision 8, such employee may designate any person, organization, or collective bargaining agent authorized to file a complaint with the commissioner or in court pursuant to this section to make a wage claim on the claimant's behalf. new text end

new text begin (b) In the case of an action against a subcontractor, the contractor shall be jointly and severally liable for any unpaid wages, benefits, penalties, and any other remedies available pursuant to this section. new text end

new text begin (c) Claims shall be brought consistent with section 541.07, clause (5), for the initiation of such claim under this section in a court of competent jurisdiction or the filing of a complaint with the commissioner or attorney general. The provisions of this section do not diminish, impair, or otherwise infringe on any other right of an employee to bring an action or file a complaint against any employer. new text end

new text begin Subd. 4. new text end

new text begin Payroll records; data. new text end

new text begin (a) Within 15 days of a request by a contractor to a subcontractor, the subcontractor, and any other subcontractors hired under contract to the subcontractor shall provide payroll records, which, at minimum, contain all lawfully required information for all workers providing labor on the project. The payroll records shall contain sufficient information to apprise the contractor or subcontractor of such subcontractor's payment of wages and fringe benefit contributions to a third party on the workers' behalf. Payroll records shall be marked or redacted to an extent only to prevent disclosure of the employee's Social Security number. new text end

new text begin (b) Within 15 days of a request of a contractor or a contractor's subcontractor, any subcontractor that performs any portion of work within the scope of the contractor's construction contract with an owner shall provide: new text end

new text begin (1) the names of all employees and independent contractors of the subcontractor on the project, including the names of all those designated as independent contractors and, when applicable, the name of the contractor's subcontractor with whom the subcontractor is under contract; new text end

new text begin (2) the anticipated contract start date; new text end

new text begin (3) the scheduled duration of work; new text end

new text begin (4) when applicable, local unions with which such subcontractor is a signatory contractor; and new text end

new text begin (5) the name and telephone number of a contact for the subcontractor. new text end

new text begin (c) Unless otherwise required by law, a contractor or subcontractor shall not disclose an individual's personal identifying information to the general public, except that the contractor or subcontractor can confirm that the individual works for them and provide the individual's full name. new text end

new text begin Subd. 5. new text end

new text begin Payments to contractors and subcontractors. new text end

new text begin Nothing in this section shall alter the owner's obligation to pay a contractor, or a contractor's obligation to pay a subcontractor as set forth in section 337.10, except as expressly permitted by this section. new text end

new text begin Subd. 6. new text end

new text begin Exemptions. new text end

new text begin (a) Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of any employee under any collective bargaining agreement. This section shall not apply to any contractor or subcontractor that is a signatory to a bona fide collective bargaining agreement with a building and construction trade labor organization that: (1) contains a grievance procedure that may be used to recover unpaid wages on behalf of employees covered by the agreement; and (2) provides for collection of unpaid contributions to fringe benefit trust funds established pursuant to United States Code, title 29, section 186(c)(5)-(6), by or on behalf of such trust funds. new text end

new text begin (b) This section does not apply to work for which prevailing wage rates apply under sections 177.41 to 177.44. new text end

Sec. 7.

Minnesota Statutes 2022, section 181.171, subdivision 4, is amended to read:

Subd. 4.

Employer; definition.

"Employer" means any person having one or more employees in Minnesota and includes the state new text begin or a contractor that has assumed a subcontractor's liability within the meaning of section 181.165 new text end and any political subdivision of the state. This definition applies to this section and sections 181.02, 181.03, 181.031, 181.032, 181.06, 181.063, 181.10, 181.101, 181.13, 181.14, and 181.16.

Sec. 8.

new text begin EFFECTIVE DATE. new text end

new text begin Sections 1 to 7 are effective August 1, 2023, and apply to contracts or agreements entered into, renewed, modified, or amended on or after that date. new text end

ARTICLE 11

MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 13.43, subdivision 6, is amended to read:

Subd. 6.

Access by labor organizations.

new text begin (a) new text end Personnel data deleted text begin may deleted text end new text begin must new text end be disseminated to labor organizations to the extent deleted text begin that the responsible authority determines that the dissemination is deleted text end necessary to conduct elections, deleted text begin notify employees of fair share fee assessments, deleted text end new text begin investigate and process grievances, new text end and implement the provisions of chapters 179 and 179A. Personnel data shall be disseminated to labor organizations and to the Bureau of Mediation Services to the extent the dissemination is ordered or authorized by the commissioner of the Bureau of Mediation Services. new text begin Employee Social Security numbers are not necessary to implement the provisions of chapters 179 and 179A. new text end

new text begin (b) Personnel data described under section 179A.07, subdivision 8, must be disseminated to an exclusive representative under the terms of that subdivision. new text end

new text begin (c) An employer who disseminates personnel data to a labor organization pursuant to this subdivision shall not be subject to liability under section 13.08. Nothing in this paragraph shall impair or limit any remedies available under section 325E.61. new text end

new text begin (d) The home addresses, nonemployer issued phone numbers and email addresses, dates of birth, and emails or other communications between exclusive representatives and their members, prospective members, and nonmembers are private data on individuals. new text end

Sec. 2.

new text begin [16A.1335] EMPLOYEE SALARIES AND BENEFITS IN EVENT OF STATE GOVERNMENT SHUTDOWN. new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin As used in this section, "government shutdown" means that, as of July 1 of an odd-numbered year, legislation appropriating money for the general operations of (1) an executive agency, (2) an office or department of the legislature, including each house of the legislature and the Legislative Coordinating Commission, or (3) a judicial branch agency or department, including a court, has not been enacted for the biennium beginning July 1 of that year. new text end

new text begin Subd. 2. new text end

new text begin Payment required. new text end

new text begin Notwithstanding section 16A.17, subdivision 8, state employees must be provided payment for lost salary and benefits resulting from their absence from work during a government shutdown. An employee is eligible for a payment under this section only upon the employee's return to work. new text end

new text begin Subd. 3. new text end

new text begin Appropriation; limitation. new text end

new text begin (a) In the event of a government shutdown, the amount necessary to pay the salary and benefits of employees of any impacted agency, office, or department is appropriated beginning on that July 1 to that agency, office, or department. The appropriation is made from the fund or funds from which an appropriation was made in the previous fiscal year for salary and benefits paid to each affected employee. new text end

new text begin (b) Amounts appropriated under this subdivision may not exceed the amount or amounts appropriated for general operations of the affected agency, office, or department in the previous fiscal year. new text end

new text begin Subd. 4. new text end

new text begin Certification of amount for employees in the legislative and judicial branches. new text end

new text begin By June 25 of an odd-numbered year, if a government shutdown appears imminent, the director of the Legislative Coordinating Commission, the chief clerk of the house of representatives, the secretary of the senate, and the chief clerk of the supreme court must each certify to the commissioner of management and budget the amount needed for salaries and benefits for each fiscal year of the next biennium, and the commissioner of management and budget shall make the certified amount available on July 1 of that year or on another schedule that permits payment of all salary and benefit obligations required by this section in a timely manner. new text end

new text begin Subd. 5. new text end

new text begin Subsequent appropriations. new text end

new text begin A subsequent appropriation to the agency, office, or department for regular operations for a biennium in which this section has been applied may only supersede and replace the appropriation provided by subdivision 3 by express reference to this section. new text end

Sec. 3.

Minnesota Statutes 2022, section 120A.414, subdivision 2, is amended to read:

Subd. 2.

Plan.

A school board new text begin , including the board of a charter school, new text end may adopt an e-learning day plan after deleted text begin consulting deleted text end new text begin meeting and negotiating new text end with the exclusive representative of the teachers. deleted text begin A deleted text end new text begin If a charter school's teachers are not represented by an exclusive representative, the new text end charter school may adopt an e-learning day plan after consulting with its teachers. The plan must include accommodations for students without Internet access at home and for digital device access for families without the technology or an insufficient amount of technology for the number of children in the household. A school's e-learning day plan must provide accessible options for students with disabilities under chapter 125A.

Sec. 4.

Minnesota Statutes 2022, section 122A.181, subdivision 5, is amended to read:

Subd. 5.

Limitations on license.

(a) A Tier 1 license is limited to the content matter indicated on the application for the initial Tier 1 license under subdivision 1, clause (2), and limited to the district or charter school that requested the initial Tier 1 license.

(b) A Tier 1 license does not bring an individual within the definition of a teacher for purposes of section 122A.40, subdivision 1, or 122A.41, subdivision 1, clause (a).

deleted text begin (c) A Tier 1 license does not bring an individual within the definition of a teacher under section 179A.03, subdivision 18. deleted text end

Sec. 5.

Minnesota Statutes 2022, section 122A.26, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

new text begin (a) new text end A person who teaches in a community education program deleted text begin which deleted text end new text begin that new text end qualifies for aid pursuant to section 124D.52 shall continue to meet licensure requirements as a teacher. A person who teaches in an early childhood and family education program deleted text begin which deleted text end new text begin that new text end is offered through a community education program and which qualifies for community education aid pursuant to section 124D.20 or early childhood and family education aid pursuant to section 124D.135 shall continue to meet licensure requirements as a teacher. A person who teaches in a community education course deleted text begin which deleted text end new text begin that new text end is offered for credit for graduation to persons under 18 years of age shall continue to meet licensure requirements as a teacher.

new text begin (b) new text end A person who teaches a driver training course deleted text begin which deleted text end new text begin that new text end is offered through a community education program to persons under 18 years of age shall be licensed by the Professional Educator Licensing and Standards Board or be subject to section 171.35. A license deleted text begin which deleted text end new text begin that new text end is required for an instructor in a community education program pursuant to this deleted text begin subdivision deleted text end new text begin paragraph new text end shall not be construed to bring an individual within the definition of a teacher for purposes of section 122A.40, subdivision 1, or 122A.41, subdivision 1, deleted text begin clause deleted text end new text begin paragraph new text end (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2023-2024 school year and later. new text end

Sec. 6.

Minnesota Statutes 2022, section 122A.40, subdivision 5, is amended to read:

Subd. 5.

Probationary period.

(a) The first three consecutive years of a teacher's first teaching experience in Minnesota in a single district is deemed to be a probationary period of employment, and, the probationary period in each district in which the teacher is thereafter employed shall be one year. The school board must adopt a plan for written evaluation of teachers during the probationary period that is consistent with subdivision 8. Evaluation must occur at least three times periodically throughout each school year for a teacher performing services during that school year; the first evaluation must occur within the first 90 days of teaching service. Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school must not be included in determining the number of school days on which a teacher performs services. Except as otherwise provided in paragraph (b), during the probationary period any annual contract with any teacher may or may not be renewed as the school board shall see fit. However, the board must give any such teacher whose contract it declines to renew for the following school year written notice to that effect before July 1. If the teacher requests reasons for any nonrenewal of a teaching contract, the board must give the teacher its reason in writing, including a statement that appropriate supervision was furnished describing the nature and the extent of such supervision furnished the teacher during the employment by the board, within ten days after receiving such request. The school board may, after a hearing held upon due notice, discharge a teacher during the probationary period for cause, effective immediately, under section 122A.44.

(b) A board must discharge a probationary teacher, effective immediately, upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's license has been revoked due to a conviction for child abuse or sexual abuse.

(c) A probationary teacher whose first three years of consecutive employment are interrupted for active military service and who promptly resumes teaching consistent with federal reemployment timelines for uniformed service personnel under United States Code, title 38, section 4312(e), is considered to have a consecutive teaching experience for purposes of paragraph (a).

(d) A probationary teacher whose first three years of consecutive employment are interrupted for maternity, paternity, or medical leave and who resumes teaching within 12 months of when the leave began is considered to have a consecutive teaching experience for purposes of paragraph (a) if the probationary teacher completes a combined total of three years of teaching service immediately before and after the leave.

(e) A probationary teacher must complete at least deleted text begin 120 deleted text end new text begin 90 new text end days of teaching service each year during the probationary period. Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school do not count as days of teaching service under this paragraph.

Sec. 7.

Minnesota Statutes 2022, section 122A.41, subdivision 2, is amended to read:

Subd. 2.

Probationary period; discharge or demotion.

(a) deleted text begin All teachers in the public schools in cities of the first class during the first three years of consecutive employment shall be deemed to be in a probationary period of employment during which period any annual contract with any teacher may, or may not, be renewed as the school board, after consulting with the peer review committee charged with evaluating the probationary teachers under subdivision 3, shall see fit. deleted text end new text begin The first three consecutive years of a teacher's first teaching experience in Minnesota in a single district is deemed to be a probationary period of employment, and the probationary period in each district in which the teacher is thereafter employed shall be one year. new text end The school site management team or the school board if there is no school site management team, shall adopt a plan for a written evaluation of teachers during the probationary period according to subdivisions 3 and 5. Evaluation by the peer review committee charged with evaluating probationary teachers under subdivision 3 shall occur at least three times periodically throughout each school year for a teacher performing services during that school year; the first evaluation must occur within the first 90 days of teaching service. Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school shall not be included in determining the number of school days on which a teacher performs services. The school board may, during such probationary period, discharge or demote a teacher for any of the causes as specified in this code. A written statement of the cause of such discharge or demotion shall be given to the teacher by the school board at least 30 days before such removal or demotion shall become effective, and the teacher so notified shall have no right of appeal therefrom.

(b) A probationary teacher whose first three years of consecutive employment are interrupted for active military service and who promptly resumes teaching consistent with federal reemployment timelines for uniformed service personnel under United States Code, title 38, section 4312(e), is considered to have a consecutive teaching experience for purposes of paragraph (a).

(c) A probationary teacher whose first three years of consecutive employment are interrupted for maternity, paternity, or medical leave and who resumes teaching within 12 months of when the leave began is considered to have a consecutive teaching experience for purposes of paragraph (a) if the probationary teacher completes a combined total of three years of teaching service immediately before and after the leave.

(d) A probationary teacher must complete at least deleted text begin 120 deleted text end new text begin 90 new text end days of teaching service each year during the probationary period. Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school do not count as days of teaching service under this paragraph.

Sec. 8.

Minnesota Statutes 2022, section 177.27, subdivision 4, as amended by Laws 2023, chapter 30, section 1, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, subdivision 2a, 181.722, 181.79, 181.939 to 181.943, deleted text begin and deleted text end 181.987, deleted text begin or deleted text end new text begin 181.991, and new text end with any rule promulgated under section 177.28. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 or 181.987 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 or 181.987 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to franchise agreements entered into or amended on or after that date. new text end

Sec. 9.

Minnesota Statutes 2022, section 177.42, subdivision 2, is amended to read:

Subd. 2.

Project.

"Project" means new text begin demolition, new text end erection, construction, remodeling, or repairing of a public building new text begin , facility, new text end or other public work financed in whole or part by state funds. new text begin Project also includes demolition, erection, construction, remodeling, or repairing of a building, facility, or public work when the acquisition of property, predesign, design, or demolition is financed in whole or part by state funds. 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. 10.

Minnesota Statutes 2022, section 179A.03, subdivision 14, is amended to read:

Subd. 14.

Public employee or employee.

(a) "Public employee" or "employee" means any person appointed or employed by a public employer except:

(1) elected public officials;

(2) election officers;

(3) commissioned or enlisted personnel of the Minnesota National Guard;

(4) emergency employees who are employed for emergency work caused by natural disaster;

(5) part-time employees whose service does not exceed the lesser of 14 hours per week or 35 percent of the normal work week in the employee's appropriate unit;

(6) employees whose positions are basically temporary or seasonal in character and: (i) are not for more than 67 working days in any calendar year; deleted text begin or deleted text end (ii) new text begin are not working for a Minnesota school district or charter school; or (iii) new text end are not for more than 100 working days in any calendar year and the employees are under the age of 22, are full-time students enrolled in a nonprofit or public educational institution prior to being hired by the employer, and have indicated, either in an application for employment or by being enrolled at an educational institution for the next academic year or term, an intention to continue as students during or after their temporary employment;

(7) employees providing services for not more than two consecutive quarters to the Board of Trustees of the Minnesota State Colleges and Universities under the terms of a professional or technical services contract as defined in section 16C.08, subdivision 1;

(8) employees of charitable hospitals as defined by section 179.35, subdivision 3, except that employees of charitable hospitals as defined by section 179.35, subdivision 3, are public employees for purposes of sections 179A.051, 179A.052, and 179A.13;

(9) full-time undergraduate students employed by the school which they attend under a work-study program or in connection with the receipt of financial aid, irrespective of number of hours of service per week;

(10) an individual who is employed for less than 300 hours in a fiscal year as an instructor in an adult vocational education program;

deleted text begin (11) an individual hired by the Board of Trustees of the Minnesota State Colleges and Universities to teach one course for three or fewer credits for one semester in a year; deleted text end

deleted text begin (12) deleted text end new text begin (11) new text end with respect to court employees:

(i) personal secretaries to judges;

(ii) law clerks;

(iii) managerial employees;

(iv) confidential employees; and

(v) supervisory employees; new text begin or new text end

deleted text begin (13) deleted text end new text begin (12) new text end with respect to employees of Hennepin Healthcare System, Inc., managerial, supervisory, and confidential employees.

(b) The following individuals are public employees regardless of the exclusions of paragraph (a), clauses (5) deleted text begin and (6) deleted text end new text begin to (7) new text end :

(1) an employee hired by a school district or the Board of Trustees of the Minnesota State Colleges and Universities except at the university established in the Twin Cities metropolitan area under section 136F.10 or for community services or community education instruction offered on a noncredit basis: (i) to replace an absent teacher or faculty member who is a public employee, where the replacement employee is employed more than 30 working days as a replacement for that teacher or faculty member; or (ii) to take a teaching position created due to increased enrollment, curriculum expansion, courses which are a part of the curriculum whether offered annually or not, or other appropriate reasons;

(2) an employee hired for a position under paragraph (a), clause (6), item (i), if that same position has already been filled under paragraph (a), clause (6), item (i), in the same calendar year and the cumulative number of days worked in that same position by all employees exceeds 67 calendar days in that year. For the purpose of this paragraph, "same position" includes a substantially equivalent position if it is not the same position solely due to a change in the classification or title of the position; deleted text begin and deleted text end

(3) an early childhood family education teacher employed by a school district deleted text begin . deleted text end new text begin ; and new text end

new text begin (4) an individual hired by the Board of Trustees of the Minnesota State Colleges and Universities as the instructor of record to teach (i) one class for more than three credits in a fiscal year, or (ii) two or more credit-bearing classes in a fiscal year. new text end

Sec. 11.

Minnesota Statutes 2022, section 179A.03, subdivision 18, is amended to read:

Subd. 18.

Teacher.

"Teacher" means any public employee other than a superintendent or assistant superintendent, principal, assistant principal, or a supervisory or confidential employee, employed by a school district:

(1) in a position for which the person must be licensed by the Professional Educator Licensing and Standards Board or the commissioner of education; deleted text begin or deleted text end

(2) in a position as a physical therapist, occupational therapist, art therapist, music therapist, or audiologist deleted text begin . deleted text end new text begin ; or new text end

new text begin (3) in a position creating and delivering instruction to children in a preschool, school readiness, school readiness plus, or prekindergarten program or other school district or charter school-based early education program, except that an employee in a bargaining unit certified before January 1, 2023, may remain in a bargaining unit that does not include teachers unless an exclusive representative files a petition for a unit clarification or to transfer exclusive representative status. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2022, section 179A.03, subdivision 19, is amended to read:

Subd. 19.

Terms and conditions of employment.

"Terms and conditions of employment" means the hours of employment, the compensation therefor including fringe benefits except retirement contributions or benefits other than employer payment of, or contributions to, premiums for group insurance coverage of retired employees or severance pay, new text begin staffing ratios, new text end and the employer's personnel policies affecting the working conditions of the employees. In the case of professional employees the term does not mean educational policies of a school district. "Terms and conditions of employment" is subject to section 179A.07. new text begin In the case of school employees, "terms and conditions of employment" includes adult-to-student ratios in classrooms, student testing, and student-to-personnel ratios. new text end

Sec. 13.

Minnesota Statutes 2022, section 179A.06, subdivision 6, is amended to read:

Subd. 6.

deleted text begin Dues checkoff deleted text end new text begin Payroll deduction, authorization, and remittance new text end .

new text begin (a) new text end Public employees have the right to request and be allowed deleted text begin dues checkoff deleted text end new text begin payroll deduction new text end for the exclusive representative deleted text begin . In the absence of an exclusive representative, public employees have the right to request and be allowed dues checkoff for the organization of their choice. deleted text end new text begin and the political fund associated with the exclusive representative and registered pursuant to section 10A.12. A public employer must rely on a certification from any exclusive representative requesting remittance of a deduction that the organization has and will maintain an authorization, signed by the public employee from whose salary or wages the deduction is to be made, which may include an electronic signature by the public employee as defined in section 325L.02, paragraph (h). An exclusive representative making such certification must not be required to provide the public employer a copy of the authorization unless a dispute arises about the existence or terms of the authorization. The exclusive representative must indemnify the public employer for any successful claims made by the employee for unauthorized deductions in reliance on the certification. new text end

new text begin (b) A dues deduction authorization remains in effect until the employer receives notice from the exclusive representative that a public employee has changed or canceled their authorization in writing in accordance with the terms of the original authorizing document, and a public employer must rely on information from the exclusive representative receiving remittance of the deduction regarding whether the deductions have been properly changed or canceled. The exclusive representative must indemnify the public employer, including any reasonable attorney fees and litigation costs, for any successful claims made by the employee for unauthorized deductions made in reliance on such information. new text end

new text begin (c) Deduction authorization under this section is independent from the public employee's membership status in the organization to which payment is remitted and is effective regardless of whether a collective bargaining agreement authorizes the deduction. new text end

new text begin (d) Employers must commence deductions within 30 days of notice of authorization from the exclusive representative and must remit the deductions to the exclusive representative within 30 days of the deduction. The failure of an employer to comply with the provisions of this paragraph shall be an unfair labor practice under section 179A.13, the relief for which shall be reimbursement by the employer of deductions that should have been made or remitted based on a valid authorization given by the employee or employees. new text end

new text begin (e) In the absence of an exclusive representative, public employees have the right to request and be allowed payroll deduction for the organization of their choice. new text end

new text begin (f) Any dispute under this subdivision must be resolved through an unfair labor practice proceeding under section 179A.13. new text end

Sec. 14.

Minnesota Statutes 2022, section 179A.07, subdivision 1, is amended to read:

Subdivision 1.

Inherent managerial policy.

A public employer is not required to meet and negotiate on matters of inherent managerial policy. Matters of inherent managerial policy include, but are not limited to, such areas of discretion or policy as the functions and programs of the employer, its overall budget, utilization of technology, the organizational structure, selection of personnel, and direction deleted text begin and the number deleted text end of personnel. No public employer shall sign an agreement which limits its right to select persons to serve as supervisory employees or state managers under section 43A.18, subdivision 3, or requires the use of seniority in their selection.

Sec. 15.

Minnesota Statutes 2022, section 179A.07, subdivision 6, is amended to read:

Subd. 6.

Time off.

A public employer must afford reasonable time off to elected officers or appointed representatives of the exclusive representative to conduct the duties of the exclusive representative and must, upon request, provide for leaves of absence to elected or appointed officials of the exclusive representative new text begin , to elected or appointed officials of an affiliate of an exclusive representative, new text end or to a full-time appointed official of an exclusive representative of teachers in another Minnesota school district.

Sec. 16.

Minnesota Statutes 2022, section 179A.07, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Bargaining unit information. new text end

new text begin (a) Within 20 calendar days from the date of hire of a bargaining unit employee, a public employer must provide the following contact information to an exclusive representative in an Excel file format or other format agreed to by the exclusive representative: name; job title; worksite location, including location within a facility when appropriate; home address; work telephone number; home and personal cell phone numbers on file with the public employer; date of hire; and work email address and personal email address on file with the public employer. new text end

new text begin (b) Every 120 calendar days beginning on January 1, 2024, a public employer must provide to an exclusive representative in an Excel file or similar format agreed to by the exclusive representative the following information for all bargaining unit employees: name; job title; worksite location, including location within a facility when appropriate; home address; work telephone number; home and personal cell phone numbers on file with the public employer; date of hire; and work email address and personal email address on file with the public employer. new text end

new text begin (c) A public employer must notify an exclusive representative within 20 calendar days of the separation of employment or transfer out of the bargaining unit of a bargaining unit employee. new text end

Sec. 17.

Minnesota Statutes 2022, section 179A.07, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Access. new text end

new text begin (a) A public employer must allow an exclusive representative to meet in person with newly hired employees, without charge to the pay or leave time of the employees, for 30 minutes, within 30 calendar days from the date of hire, during new employee orientations or, if the employer does not conduct new employee orientations, at individual or group meetings. An exclusive representative shall receive no less than ten days' notice in advance of an orientation, except that a shorter notice may be provided where there is an urgent need critical to the operations of the public employer that was not reasonably foreseeable. Notice of and attendance at new employee orientations and other meetings under this paragraph must be limited to the public employer, the employees, the exclusive representative, and any vendor contracted to provide a service for purposes of the meeting. Meetings may be held virtually or for longer than 30 minutes only by mutual agreement of the public employer and exclusive representative. new text end

new text begin (b) A public employer must allow an exclusive representative to communicate with bargaining unit members using their employer-issued email addresses regarding collective bargaining, the administration of collective bargaining agreements, the investigation of grievances, other workplace-related complaints and issues, and internal matters involving the governance or business of the exclusive representative, consistent with the employer's generally applicable technology use policies. new text end

new text begin (c) A public employer must allow an exclusive representative to meet with bargaining unit members in facilities owned or leased by the public employer regarding collective bargaining, the administration of collective bargaining agreements, grievances and other workplace-related complaints and issues, and internal matters involving the governance or business of the exclusive representative, provided the use does not interfere with governmental operations and the exclusive representative complies with worksite security protocols established by the public employer. Meetings conducted in government buildings pursuant to this paragraph must not be for the purpose of supporting or opposing any candidate for partisan political office or for the purpose of distributing literature or information regarding partisan elections. An exclusive representative conducting a meeting in a government building or other government facility pursuant to this subdivision may be charged for maintenance, security, and other costs related to the use of the government building or facility that would not otherwise be incurred by the government entity. new text end

Sec. 18.

Minnesota Statutes 2022, section 179A.12, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Majority verification procedure. new text end

new text begin (a) Notwithstanding any other provision of this section, an employee organization may file a petition with the commissioner requesting certification as the exclusive representative of an appropriate unit based on a verification that over 50 percent of the employees in the proposed appropriate unit wish to be represented by the petitioner. The commissioner shall require dated representation authorization signatures of affected employees as verification of the employee organization's claim of majority status. new text end

new text begin (b) Upon receipt of an employee organization's petition, accompanied by employee authorization signatures under this subdivision, the commissioner shall investigate the petition. If the commissioner determines that over 50 percent of the employees in an appropriate unit have provided authorization signatures designating the employee organization specified in the petition as their exclusive representative, the commissioner shall not order an election but shall certify the employee organization. new text end

Sec. 19.

Minnesota Statutes 2022, section 179A.12, subdivision 6, is amended to read:

Subd. 6.

Authorization signatures.

In determining the numerical status of an employee organization for purposes of this section, the commissioner shall require dated representation authorization signatures of affected employees as verification of the statements contained in the joint request or petitions. These authorization signatures shall be privileged and confidential information available to the commissioner only. new text begin Electronic signatures, as defined in section 325L.02, paragraph (h), shall be valid as authorization signatures. Authorization signatures shall be valid for a period of one year following the date of signature. new text end

Sec. 20.

Minnesota Statutes 2022, section 179A.12, subdivision 11, is amended to read:

Subd. 11.

Unfair labor practices.

If the commissioner finds that an unfair labor practice was committed by an employer or representative candidate or an employee or group of employees, and that the unfair labor practice affected the result of an election new text begin or majority verification procedure pursuant to subdivision 2a new text end , or that procedural or other irregularities in the conduct of the election new text begin or majority verification procedure new text end may have substantially affected its results, the commissioner may void the deleted text begin election deleted text end result and order a new election new text begin or majority verification procedure new text end .

Sec. 21.

Minnesota Statutes 2022, section 181.03, subdivision 6, is amended to read:

Subd. 6.

Retaliation.

An employer deleted text begin must deleted text end new text begin shall new text end not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for asserting rights or remedies under this section, sections 177.21 to 177.44, 181.01 to 181.723, or 181.79, including, but not limited to, filing a complaint with the department or telling the employer of the employee's intention to file a complaint. In addition to any other remedies provided by law, an employer who violates this subdivision is liable for a civil penalty of not less than $700 nor more than $3,000 per violation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2022, section 181.06, subdivision 2, is amended to read:

Subd. 2.

Payroll deductions.

A written contract may be entered into between an employer and an employee wherein the employee authorizes the employer to make payroll deductions for the purpose of paying union dues, premiums of any life insurance, hospitalization and surgical insurance, group accident and health insurance, group term life insurance, group annuities or contributions to credit unions or a community chest fund, a local arts council, a local science council or a local arts and science council, or Minnesota benefit association, a federally or state registered political action committee, membership dues of a relief association governed by sections 424A.091 to 424A.096 or Laws 2013, chapter 111, article 5, sections 31 to 42, new text begin contributions to a nonprofit organization that is tax exempt under section 501(c) of the Internal Revenue Code, new text end or participation in any employee stock purchase plan or savings plan for periods longer than 60 days, including gopher state bonds established under section 16A.645. new text begin A private sector employer must make payroll deductions to a nonlabor organization under this subdivision when requested by five or more employees. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2022, section 181.172, is amended to read:

181.172 WAGE DISCLOSURE PROTECTION.

(a) An employer shall not:

(1) require nondisclosure by an employee of his or her wages as a condition of employment;

(2) require an employee to sign a waiver or other document which purports to deny an employee the right to disclose the employee's wages; or

(3) take any adverse employment action against an employee for disclosing the employee's own wages or discussing another employee's wages which have been disclosed voluntarily.

(b) Nothing in this section shall be construed to:

(1) create an obligation on any employer or employee to disclose wages;

(2) permit an employee, without the written consent of the employer, to disclose proprietary information, trade secret information, or information that is otherwise subject to a legal privilege or protected by law;

(3) diminish any existing rights under the National Labor Relations Act under United States Code, title 29; or

(4) permit the employee to disclose wage information of other employees to a competitor of their employer.

(c) An employer that provides an employee handbook to its employees must include in the handbook notice of employee rights and remedies under this section.

(d) An employer deleted text begin may deleted text end new text begin shall new text end not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for asserting rights or remedies under this section.

(e) An employee may bring a civil action against an employer for a violation of paragraph (a) or (d). If a court finds that an employer has violated paragraph (a) or (d), the court may order reinstatement, back pay, restoration of lost service credit, if appropriate, and the expungement of any related adverse records of an employee who was the subject of the violation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2022, section 181.275, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the following terms have the meanings given them:

(1) "emergency" means a period when replacement staff are not able to report for duty for the next shift or increased patient need, because of unusual, unpredictable, or unforeseen circumstances such as, but not limited to, an act of terrorism, a disease outbreak, adverse weather conditions, or natural disasters which impact continuity of patient care;

(2) "normal work period" means 12 or fewer consecutive hours consistent with a predetermined work shift;

(3) "nurse" has the meaning given in section 148.171, subdivision 9, and includes nurses employed by the state of Minnesota; and

(4) "taking action against" means discharging; disciplining; new text begin penalizing; interfering with; new text end threatening; new text begin restraining; coercing; new text end reporting to the Board of Nursing; new text begin or otherwise retaliating or new text end discriminating against deleted text begin ; or penalizing deleted text end regarding compensation, terms, conditions, location, or privileges of employment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

new text begin [181.531] EMPLOYER-SPONSORED MEETINGS OR COMMUNICATION. new text end

new text begin Subdivision 1. new text end

new text begin Prohibition. new text end

new text begin An employer or the employer's agent, representative, or designee must not discharge, discipline, or otherwise penalize or threaten to discharge, discipline, or otherwise penalize or take any adverse employment action against an employee: new text end

new text begin (1) because the employee declines to attend or participate in an employer-sponsored meeting or declines to receive or listen to communications from the employer or the agent, representative, or designee of the employer if the meeting or communication is to communicate the opinion of the employer about religious or political matters; new text end

new text begin (2) as a means of inducing an employee to attend or participate in meetings or receive or listen to communications described in clause (1); or new text end

new text begin (3) because the employee, or a person acting on behalf of the employee, makes a good-faith report, orally or in writing, of a violation or a suspected violation of this section. new text end

new text begin Subd. 2. new text end

new text begin Remedies. new text end

new text begin An aggrieved employee may bring a civil action to enforce this section no later than 90 days after the date of the alleged violation in the district court where the violation is alleged to have occurred or where the principal office of the employer is located. The court may award a prevailing employee all appropriate relief, including injunctive relief, reinstatement to the employee's former position or an equivalent position, back pay and reestablishment of any employee benefits, including seniority, to which the employee would otherwise have been eligible if the violation had not occurred and any other appropriate relief as deemed necessary by the court to make the employee whole. The court shall award a prevailing employee reasonable attorney fees and costs. new text end

new text begin Subd. 3. new text end

new text begin Notice. new text end

new text begin Within 30 days of the effective date of this section, an employer subject to this section shall post and keep posted, a notice of employee rights under this section where employee notices are customarily placed. new text end

new text begin Subd. 4. new text end

new text begin Scope. new text end

new text begin This section does not: new text end

new text begin (1) prohibit communications of information that the employer is required by law to communicate, but only to the extent of the lawful requirement; new text end

new text begin (2) limit the rights of an employer or its agent, representative, or designee to conduct meetings involving religious or political matters so long as attendance is wholly voluntary or to engage in communications so long as receipt or listening is wholly voluntary; or new text end

new text begin (3) limit the rights of an employer or its agent, representative, or designee from communicating to its employees any information, or requiring employee attendance at meetings and other events, that is necessary for the employees to perform their lawfully required job duties. new text end

new text begin Subd. 5. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section: new text end

new text begin (1) "political matters" means matters relating to elections for political office, political parties, proposals to change legislation, proposals to change regulations, proposals to change public policy, and the decision to join or support any political party or political, civic, community, fraternal, or labor organization; and new text end

new text begin (2) "religious matters" means matters relating to religious belief, affiliation, and practice and the decision to join or support any religious organization or association. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to causes of action accruing on or after that date. new text end

Sec. 26.

Minnesota Statutes 2022, section 181.932, subdivision 1, is amended to read:

Subdivision 1.

Prohibited action.

An employer shall not discharge, discipline, new text begin penalize, interfere with, new text end threaten, new text begin restrain, coerce, or new text end otherwise new text begin retaliate or new text end discriminate against deleted text begin , or penalize deleted text end an employee regarding the employee's compensation, terms, conditions, location, or privileges of employment because:

(1) the employee, or a person acting on behalf of an employee, in good faith, reports a violation, suspected violation, or planned violation of any federal or state law or common law or rule adopted pursuant to law to an employer or to any governmental body or law enforcement official;

(2) the employee is requested by a public body or office to participate in an investigation, hearing, inquiry;

(3) the employee refuses an employer's order to perform an action that the employee has an objective basis in fact to believe violates any state or federal law or rule or regulation adopted pursuant to law, and the employee informs the employer that the order is being refused for that reason;

(4) the employee, in good faith, reports a situation in which the quality of health care services provided by a health care facility, organization, or health care provider violates a standard established by federal or state law or a professionally recognized national clinical or ethical standard and potentially places the public at risk of harm;

(5) a public employee communicates the findings of a scientific or technical study that the employee, in good faith, believes to be truthful and accurate, including reports to a governmental body or law enforcement official; or

(6) an employee in the classified service of state government communicates information that the employee, in good faith, believes to be truthful and accurate, and that relates to state services, including the financing of state services, to:

(i) a legislator or the legislative auditor; or

(ii) a constitutional officer.

The disclosures protected pursuant to this section do not authorize the disclosure of data otherwise protected by law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2022, section 181.939, is amended to read:

181.939 NURSING MOTHERS, LACTATING EMPLOYEES, AND PREGNANCY ACCOMMODATIONS.

Subdivision 1.

Nursing mothers new text begin and lactating employees new text end .

(a) An employer must provide reasonable break times each day to an employee who needs to express deleted text begin breast deleted text end milk deleted text begin for her infant child during the twelve months following the birth of the child deleted text end . The break times deleted text begin must, if possible, deleted text end new text begin may new text end run concurrently with any break times already provided to the employee. deleted text begin An employer is not required to provide break times under this section if to do so would unduly disrupt the operations of the employer. deleted text end An employer shall not reduce an employee's compensation for time used for the purpose of expressing milk.

(b) The employer must make reasonable efforts to provide a new text begin clean, private, and secure new text end room or other location, in close proximity to the work area, other than a bathroom or a toilet stall, that is shielded from view and free from intrusion from coworkers and the public and that includes access to an electrical outlet, where the employee can express milk in privacy. The employer would be held harmless if reasonable effort has been made.

(c) For the purposes of this subdivision, "employer" means a person or entity that employs one or more employees and includes the state and its political subdivisions.

(d) An employer shall not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for asserting rights or remedies under this subdivision.

Subd. 2.

Pregnancy accommodations.

(a) An employer must provide reasonable accommodations to an employee for health conditions related to pregnancy or childbirth upon request, with the advice of a licensed health care provider or certified doula, unless the employer demonstrates that the accommodation would impose an undue hardship on the operation of the employer's business. A pregnant employee shall not be required to obtain the advice of a licensed health care provider or certified doula, nor may an employer claim undue hardship for the following accommodations: (1) more frequent new text begin or longer new text end restroom, food, and water breaks; (2) seating; and (3) limits on lifting over 20 pounds. The employee and employer shall engage in an interactive process with respect to an employee's request for a reasonable accommodation. Reasonable accommodation may include but is not limited to temporary transfer to a less strenuous or hazardous position, new text begin temporary leave of absence, modification in work schedule or job assignments, new text end seating, new text begin more new text end frequent deleted text begin restroom breaks deleted text end new text begin or longer break periods new text end , and limits to heavy lifting. Notwithstanding any other provision of this subdivision, an employer shall not be required to create a new or additional position in order to accommodate an employee pursuant to this subdivision and shall not be required to discharge an employee, transfer another employee with greater seniority, or promote an employee.

(b) Nothing in this subdivision shall be construed to affect any other provision of law relating to sex discrimination or pregnancy or in any way diminish the coverage of pregnancy, childbirth, or health conditions related to pregnancy or childbirth under any other provisions of any other law.

(c) An employer shall not require an employee to take a leave or accept an accommodation.

(d) An employer shall not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for asserting rights or remedies under this subdivision.

(e) For the purposes of this subdivision, "employer" means a person or entity that employs deleted text begin fifteen deleted text end new text begin one new text end or more employees and includes the state and its political subdivisions.

new text begin Subd. 3. new text end

new text begin Notice to employees. new text end

new text begin An employer shall inform employees of their rights under this section at the time of hire and when an employee makes an inquiry about or requests parental leave. Information must be provided in English and the primary language of the employee as identified by the employee. An employer that provides an employee handbook to its employees must include in the handbook notice of employee rights and remedies under this section. The commissioner shall make available to employers the text to be included in the notice required by this section in English and the five most common languages spoken in Minnesota. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2022, section 181.940, subdivision 2, is amended to read:

Subd. 2.

Employee.

"Employee" means a person who performs services for hire for an employer from whom a leave is requested under sections 181.940 to 181.944 deleted text begin for: deleted text end new text begin . new text end

deleted text begin (1) at least 12 months preceding the request; and deleted text end

deleted text begin (2) for an average number of hours per week equal to one-half the full-time equivalent position in the employee's job classification as defined by the employer's personnel policies or practices or pursuant to the provisions of a collective bargaining agreement, during the 12-month period immediately preceding the leave. deleted text end

Employee includes all individuals employed deleted text begin at any site owned or operated deleted text end by the employer but does not include an independent contractor.

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2022, section 181.940, subdivision 3, is amended to read:

Subd. 3.

Employer.

"Employer" means a person or entity that employs deleted text begin 21 deleted text end new text begin one new text end or more employees deleted text begin at at least one site, except that, for purposes of the school leave allowed under section 181.9412, employer means a person or entity that employs one or more employees in Minnesota. The term deleted text end new text begin and new text end includes an individual, corporation, partnership, association, new text begin business, trust, new text end nonprofit organization, group of persons, state, county, town, city, school district, or other governmental subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2022, section 181.941, subdivision 3, is amended to read:

Subd. 3.

No employer retribution.

An employer shall not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for requesting or obtaining a leave of absence as provided by this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2022, section 181.9413, is amended to read:

181.9413 SICK LEAVE BENEFITS; CARE OF RELATIVES.

(a) An employee may use personal sick leave benefits provided by the employer for absences due to an illness of or injury to the employee's child, as defined in section 181.940, subdivision 4, adult child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent, for reasonable periods of time as the employee's attendance may be necessary, on the same terms upon which the employee is able to use sick leave benefits for the employee's own illness or injury. This section applies only to personal sick leave benefits payable to the employee from the employer's general assets.

(b) An employee may use sick leave as allowed under this section for safety leave, whether or not the employee's employer allows use of sick leave for that purpose for such reasonable periods of time as may be necessary. Safety leave may be used for assistance to the employee or assistance to the relatives described in paragraph (a). For the purpose of this section, "safety leave" is leave for the purpose of providing or receiving assistance because of sexual assault, domestic abuse, or harassment or stalking. For the purpose of this paragraph:

(1) "domestic abuse" has the meaning given in section 518B.01;

(2) "sexual assault" means an act that constitutes a violation under sections 609.342 to 609.3453 or 609.352; and

(3) "harass" and "stalking" have the meanings given in section 609.749.

(c) An employer may limit the use of safety leave as described in paragraph (b) or personal sick leave benefits provided by the employer for absences due to an illness of or injury to the employee's adult child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent to no less than 160 hours in any 12-month period. This paragraph does not apply to absences due to the illness or injury of a child, as defined in section 181.940, subdivision 4.

(d) For purposes of this section, "personal sick leave benefits" means time accrued and available to an employee to be used as a result of absence from work due to personal illness or injury, but does not include short-term or long-term disability or other salary continuation benefits.

(e) For the purpose of this section, "child" includes a stepchild and a biological, adopted, and foster child.

(f) For the purpose of this section, "grandchild" includes a step-grandchild, and a biological, adopted, and foster grandchild.

(g) This section does not prevent an employer from providing greater sick leave benefits than are provided for under this section.

(h) An employer shall not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for requesting or obtaining a leave of absence under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2022, section 181.942, is amended to read:

181.942 REINSTATEMENT AFTER LEAVE.

Subdivision 1.

Comparable position.

(a) An employee returning from a leave of absence under section new text begin 181.939 or new text end 181.941 is entitled to return to employment in the employee's former position or in a position of comparable duties, number of hours, and pay. An employee returning from a leave of absence longer than one month must notify a supervisor at least two weeks prior to return from leave. An employee returning from a leave under section 181.9412 or 181.9413 is entitled to return to employment in the employee's former position.

(b) If, during a leave under sections deleted text begin 181.940 deleted text end new text begin 181.939 new text end to 181.944, the employer experiences a layoff and the employee would have lost a position had the employee not been on leave, pursuant to the good faith operation of a bona fide layoff and recall system, including a system under a collective bargaining agreement, the employee is not entitled to reinstatement in the former or comparable position. In such circumstances, the employee retains all rights under the layoff and recall system, including a system under a collective bargaining agreement, as if the employee had not taken the leave.

Subd. 2.

Pay; benefits; on return.

An employee returning from a leave of absence under sections deleted text begin 181.940 deleted text end new text begin 181.939 new text end to 181.944 is entitled to return to employment at the same rate of pay the employee had been receiving when the leave commenced, plus any automatic adjustments in the employee's pay scale that occurred during leave period. The employee returning from a leave is entitled to retain all accrued preleave benefits of employment and seniority, as if there had been no interruption in service; provided that nothing in sections deleted text begin 181.940 deleted text end new text begin 181.939 new text end to 181.944 prevents the accrual of benefits or seniority during the leave pursuant to a collective bargaining or other agreement between the employer and employees.

Subd. 3.

Part-time return.

An employee, by agreement with the employer, may return to work part time during the leave period without forfeiting the right to return to employment at the end of the leave period, as provided in sections deleted text begin 181.940 deleted text end new text begin 181.939 new text end to 181.944.

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2022, section 181.9436, is amended to read:

181.9436 POSTING OF LAW.

The Division of Labor Standards and Apprenticeship shall develop, with the assistance of interested business and community organizations, an educational poster stating employees' rights under sections deleted text begin 181.940 deleted text end new text begin 181.939 new text end to 181.9436. The department shall make the poster available, upon request, to employers for posting on the employer's premises.

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2022, section 181.945, subdivision 3, is amended to read:

Subd. 3.

No employer sanctions.

An employer shall not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for requesting or obtaining a leave of absence as provided by this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2022, section 181.9456, subdivision 3, is amended to read:

Subd. 3.

No employer sanctions.

An employer shall not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for requesting or obtaining a leave of absence as provided by this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 36.

Minnesota Statutes 2022, section 181.956, subdivision 5, is amended to read:

Subd. 5.

Retaliation prohibited.

An employer deleted text begin may deleted text end new text begin shall new text end not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for asserting rights and remedies provided in sections 181.950 to 181.954.

new text begin EFFECTIVE DATE. new text end

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

Sec. 37.

Minnesota Statutes 2022, section 181.964, is amended to read:

181.964 RETALIATION PROHIBITED.

An employer deleted text begin may deleted text end new text begin shall new text end not new text begin discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise new text end retaliate new text begin or discriminate new text end against an employee for asserting rights or remedies provided in sections 181.960 to 181.965.

new text begin EFFECTIVE DATE. new text end

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

Sec. 38.

new text begin [181.991] RESTRICTIVE FRANCHISE AGREEMENTS PROHIBITED. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Employee" means an individual employed by an employer and includes independent contractors. new text end

new text begin (c) "Employer" has the meaning given in section 177.23, subdivision 6. new text end

new text begin (d) "Franchise," "franchisee," and "franchisor" have the meanings given in section 80C.01, subdivisions 4 to 6. new text end

new text begin Subd. 2. new text end

new text begin Prohibition on restrictive franchise agreements. new text end

new text begin (a) No franchisor may restrict, restrain, or prohibit in any way a franchisee from soliciting or hiring an employee of a franchisee of the same franchisor. new text end

new text begin (b) No franchisor may restrict, restrain, or prohibit in any way a franchisee from soliciting or hiring an employee of the franchisor. new text end

new text begin (c) Any provision of an existing contract that violates paragraph (a) or (b) is void and unenforceable. When a provision in an existing contract violates this section, the franchisee must provide notice to their employees of this law. new text end

new text begin Subd. 3. new text end

new text begin Franchise agreement amendment. new text end

new text begin Notwithstanding any law to the contrary, no later than one year from the effective date of this section, franchisors shall: new text end

new text begin (1) amend existing franchise agreements to remove any restrictive employment provision that violates subdivision 2; or new text end

new text begin (2) sign a memorandum of understanding with each franchisee that provides that any contract provisions that violate subdivision 2 in any way are void and unenforceable, and provides notice to the franchisee of their rights and obligations under this section. 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. 39.

Minnesota Statutes 2022, section 182.659, subdivision 1, is amended to read:

Subdivision 1.

Authority to inspect.

In order to carry out the purposes of this chapter, the commissioner, upon presenting appropriate credentials to the owner, operator, or agent in charge, is authorized to enter without delay and at reasonable times any place of employment; and to inspect and investigate during regular working hours and at other reasonable times, and within reasonable limits and in a reasonable manner, any such place of employment and all pertinent conditions, structures, machines, apparatus, devices, equipment, and materials therein, and to question privately any such employer, owner, operator, agent or employee. new text begin An employer or its representatives, including but not limited to its management, attorneys, or consultants, may not be present for any employee interview. new text end

Sec. 40.

Minnesota Statutes 2022, section 182.659, subdivision 8, is amended to read:

Subd. 8.

Protection from subpoena; data.

Neither the commissioner nor any new text begin current or former new text end employee of the department deleted text begin , including those employees of the Department of Health providing services to the Department of Labor and Industry, pursuant to section 182.67, subdivision 1, deleted text end is subject to subpoena for purposes of inquiry into any occupational safety and health inspection except in enforcement proceedings brought under this chapter. Data that identify individuals who provide data to the department as part of an investigation conducted under this chapter shall be private.

Sec. 41.

Minnesota Statutes 2022, section 182.66, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Classification of citation data. new text end

new text begin Notwithstanding section 13.39, subdivision 2, the data in a written citation is classified as public data 20 days after the employer has received the citation. All data in the citation is public, including but not limited to the employer's name, the employer's business address, and the address of the worksite; the date or dates of inspection; the date the citation was issued; the provision of the act, standard, rule, or order alleged to have been violated; the severity level of the citation; the description of the nature of the violation; the proposed abatement date; the proposed penalty; and any abatement guidelines. If a notice of contest is filed contesting any part of a citation pursuant to section 182.661, subdivision 3, the date that the notice was filed shall also be classified as public data 20 days after the employer has received the citation. When citation data is requested, the department must also provide any final settlement agreement or order amending or withdrawing the citation. new text end

Sec. 42.

Minnesota Statutes 2022, section 182.661, is amended by adding a subdivision to read:

new text begin Subd. 3c. new text end

new text begin Contestation of time for correction of a violation. new text end

new text begin (a) Where an employer contests the period of time fixed for correction of a violation that is not a serious, willful, or repeat violation, the period of time shall not run until the order of the commissioner becomes final. new text end

new text begin (b) Where an employer or employee contests the period of time fixed for correction of a violation that is a serious, willful, or repeat violation, the commissioner may refer the matter to the office of administrative hearings for an expedited contested case hearing solely on the reasonableness of the time fixed for correction. The administrative law judge may order the employer to correct the violation pending final resolution of the cited violations on the merits. new text end

Sec. 43.

Minnesota Statutes 2022, section 182.676, is amended to read:

182.676 SAFETY COMMITTEES.

(a) Every public or private employer of more than 25 employees shall establish and administer a joint labor-management safety committee.

(b) Every public or private employer of 25 or fewer employees shall establish and administer a safety committee if deleted text begin : deleted text end new text begin it is subject to the requirements of section 182.653, subdivision 8. new text end

deleted text begin (1) the employer has a lost workday cases incidence rate in the top ten percent of all rates for employers in the same industry; or deleted text end

deleted text begin (2) the workers' compensation premium classification assigned to the greatest portion of the payroll for the employer has a pure premium rate as reported by the Workers' Compensation Rating Association in the top 25 percent of premium rates for all classes. deleted text end

(c) A safety committee must hold regularly scheduled meetings unless otherwise provided in a collective bargaining agreement.

(d) Employee safety committee members must be selected by employees. An employer that fails to establish or administer a safety committee as required by this section may be cited by the commissioner. A citation is punishable as a serious violation under section 182.666.

The commissioner may adopt rules necessary to implement this section.

Sec. 44.

Minnesota Statutes 2022, section 326B.093, subdivision 4, is amended to read:

Subd. 4.

Examination results.

If the applicant receives a passing score on the examination and meets all other requirements for licensure, the commissioner must approve the application and notify the applicant of the approval within 60 days of the date of the passing score. The applicant must, within 180 days after the notification of approval, pay the license fee. Upon receipt of the license fee, the commissioner must issue the license. If the applicant does not pay the license fee within 180 days after the notification of approval, the commissioner will rescind the approval and must deny the application. If the applicant does not receive a passing score on the examination, the commissioner must deny the application. If the application is denied because of the applicant's failure to receive a passing score on the examination, then the applicant cannot submit a new application for the license until at least 30 days after the deleted text begin notification deleted text end new text begin date new text end of deleted text begin denial deleted text end new text begin the failed examination new text end .

Sec. 45.

Minnesota Statutes 2022, section 326B.106, is amended by adding a subdivision to read:

new text begin Subd. 16. new text end

new text begin Refrigerants designated as acceptable for use. new text end

new text begin No provision of the code or appendix chapter of the code may prohibit or otherwise limit the use of a refrigerant designated as acceptable for use in accordance with United States Code, title 42, section 7671k, provided any equipment containing the refrigerant is listed and installed in full compliance with all applicable requirements, safety standards, and use conditions imposed pursuant to such a designation or as otherwise required by law. new text end

Sec. 46.

Minnesota Statutes 2022, section 326B.163, subdivision 5, is amended to read:

Subd. 5.

Elevator.

As used in this chapter, "elevator" means moving walks and vertical transportation devices such as escalators, passenger elevators, freight elevators, dumbwaiters, hand-powered elevators, endless belt lifts, and deleted text begin wheelchair deleted text end platform lifts. Elevator does not include external temporary material lifts or temporary construction personnel elevators at sites of construction of new or remodeled buildings.

Sec. 47.

Minnesota Statutes 2022, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Platform lift. new text end

new text begin As used in this chapter, "platform lift" means a powered hoisting and lowering device designed to transport mobility-impaired persons on a guided platform. new text end

Sec. 48.

Minnesota Statutes 2022, section 326B.164, subdivision 13, is amended to read:

Subd. 13.

Exemption from licensing.

new text begin (a) new text end Employees of a licensed elevator contractor or licensed limited elevator contractor are not required to hold or obtain a license under this section or be provided with direct supervision by a licensed master elevator constructor, licensed limited master elevator constructor, licensed elevator constructor, or licensed limited elevator constructor to install, maintain, or repair platform lifts and stairway chairlifts. Unlicensed employees performing elevator work under this exemption must comply with subdivision 5. This exemption does not include the installation, maintenance, repair, or replacement of electrical wiring for elevator equipment.

new text begin (b) Contractors or individuals shall not be required to hold or obtain a license under this section when performing work on: new text end

new text begin (1) conveyors, excluding vertical reciprocating conveyors; new text end

new text begin (2) platform lifts not covered under section 326B.163, subdivision 5a; or new text end

new text begin (3) dock levelers. new text end

Sec. 49.

Minnesota Statutes 2022, section 326B.31, subdivision 30, is amended to read:

Subd. 30.

Technology system contractor.

"Technology system contractor" means a licensed contractor whose responsible licensed individual is a licensed power limited technician new text begin or licensed master electrician new text end .

Sec. 50.

Minnesota Statutes 2022, section 326B.32, subdivision 1, is amended to read:

Subdivision 1.

Composition.

(a) The Board of Electricity shall consist of 12 members. Eleven members shall be appointed by the governor with the advice and consent of the senate and shall be voting members. Appointments of members by the governor shall be made in accordance with section 15.066. If the senate votes to refuse to consent to an appointment of a member made by the governor, the governor shall appoint a new member with the advice and consent of the senate. One member shall be the commissioner of labor and industry or the commissioner's designee, who shall be a voting member. Of the 11 appointed members, the composition shall be as follows:

(1) one member shall be an electrical inspector;

(2) two members shall be representatives of the electrical suppliers in rural areas;

(3) two members shall be master electricians, who shall be contractors;

(4) two members shall be journeyworker electricians;

(5) one member shall be a registered consulting electrical engineer;

(6) deleted text begin two members deleted text end new text begin one member new text end shall be new text begin a new text end power limited deleted text begin technicians deleted text end new text begin technician new text end , who shall be new text begin a new text end technology system deleted text begin contractors primarily engaged in the business of installing technology circuits or systems deleted text end new text begin contractor new text end ; deleted text begin and deleted text end

new text begin (7) one member shall be a power limited technician; and new text end

deleted text begin (7) deleted text end new text begin (8) new text end one member shall be a public member as defined by section 214.02.

The electrical inspector shall be appointed to a term to end December 31, 2011. One of the rural electrical suppliers shall be appointed for a term to end December 31, 2011. The other rural electrical supplier shall be appointed for a term to end December 31, 2010. The consulting electrical engineer shall be appointed for a term to end December 31, 2011. One of the master electrician contractors shall be appointed for a term to end December 31, 2011. The other master electrician contractor shall be appointed for a term to end December 31, 2010. One of the journeyworker electricians shall be appointed for a term to end December 31, 2011. The other journeyworker electrician shall be appointed for a term to end December 31, 2010. One of the power limited technicians shall be appointed for a term to end December 31, 2011. The other power limited technician shall be appointed for a term to end December 31, 2010. The public member shall be appointed for a term to end December 31, 2010.

(b) The consulting electrical engineer must possess a current Minnesota professional engineering license and maintain the license for the duration of the term on the board. All other appointed members, except for the public member and the representatives of electrical suppliers in rural areas, must possess a current electrical license issued by the Department of Labor and Industry and maintain that license for the duration of their terms. All appointed members must be residents of Minnesota at the time of and throughout the member's appointment. The term of any appointed member that does not maintain membership qualification status shall end on the date of the status change and the governor shall appoint a new member. It is the responsibility of the member to notify the board of their status change.

(c) For appointed members, except the initial terms designated in paragraph (a), each term shall be three years with the terms ending on December 31. Members appointed by the governor shall be limited to three consecutive terms. The governor shall, all or in part, reappoint the current members or appoint replacement members with the advice and consent of the senate. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies occurring with less than six months time remaining in the term shall be filled for the existing term and the following three-year term. Members may serve until their successors are appointed but in no case later than July 1 in a year in which the term expires unless reappointed.

Sec. 51.

Minnesota Statutes 2022, section 326B.36, subdivision 7, is amended to read:

Subd. 7.

Exemptions from inspections.

Installations, materials, or equipment shall not be subject to inspection under sections 326B.31 to 326B.399:

(1) when owned or leased, operated and maintained by any employer whose maintenance electricians are exempt from licensing under sections 326B.31 to 326B.399, while performing electrical maintenance work only as defined by rule;

(2) when owned or leased, and operated and maintained by any electrical, communications, or railway utility, cable communications company as defined in section 238.02, or telephone company as defined under section 237.01, in the exercise of its utility, antenna, or telephone function; and

(i) are used exclusively for the generations, transformation, distribution, transmission, new text begin load control, new text end 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 by or for the benefit of any person other than such utility, cable communications company, or telephone company; and

(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;

(3) when used in the street lighting operations of an electrical utility;

(4) when used as outdoor area lights which are owned and operated by an electrical utility and which are connected directly to its 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;

(5) when the installation, material, and equipment are in facilities subject to the jurisdiction of the federal Mine Safety and Health Act; or

(6) when the installation, material, and equipment is part of an elevator installation for which the elevator contractor, licensed under section 326B.164, is required to obtain a permit from the authority having jurisdiction as provided by section 326B.184, and the inspection has been or will be performed by an elevator inspector certified and licensed by the department. This exemption shall apply only to installations, material, and equipment permitted or required to be connected on the load side of the disconnecting means required for elevator equipment under National Electrical Code Article 620, and elevator communications and alarm systems within the machine room, car, hoistway, or elevator lobby.

new text begin EFFECTIVE DATE. new text end

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

Sec. 52.

Minnesota Statutes 2022, section 326B.36, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Electric utility exemptions; additional requirements. new text end

new text begin For exemptions to inspections exclusively for load control allowed for electrical utilities under subdivision 7, clause (2), item (i), the exempted work must be: new text end

new text begin (1) performed by a licensed electrician employed by a class A electrical contractor licensed under section 326B.33; new text end

new text begin (2) for replacement or repair of existing equipment for an electric utility other than a public utility as defined in section 216B.02, subdivision 4, only; and new text end

new text begin (3) completed on or before December 31, 2028. 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. 53.

Minnesota Statutes 2022, section 326B.805, subdivision 6, is amended to read:

Subd. 6.

Exemptions.

The license requirement does not apply to:

(1) an employee of a licensee performing work for the licensee;

(2) a material person, manufacturer, or retailer furnishing finished products, materials, or articles of merchandise who does not install or attach the items;

(3) an owner of residential real estate who builds or improves deleted text begin any structure on deleted text end residential real estate deleted text begin , deleted text end if the deleted text begin building or improving is performed by the owner's bona fide employees or by individual owners personally. deleted text end new text begin owner occupies or will occupy the residential real estate for residential purposes, or will retain ownership for rental purposes upon completion of the building or improvement. new text end This exemption does not apply to an owner who constructs or improves deleted text begin property deleted text end new text begin residential real estate new text end for purposes of new text begin resale or new text end speculation deleted text begin if the building or improving is performed by the owner's bona fide employees or by individual owners personally. A deleted text end new text begin . An owner of new text end residential deleted text begin building contractor or residential remodeler deleted text end new text begin real estate new text end will be presumed to be building or improving for purposes of speculation if the deleted text begin contractor or remodeler deleted text end new text begin owner new text end constructs or improves more than one property within any 24-month period new text begin , unless the properties will be retained by the owner for rental purposes new text end ;

(4) an architect or professional engineer engaging in professional practice as defined by section 326.02, subdivisions 2 and 3;

(5) a person whose total gross annual receipts for performing specialty skills for which licensure would be required under this section do not exceed $15,000;

(6) a mechanical contractor;

(7) a plumber, electrician, or other person whose profession is otherwise subject to statewide licensing, when engaged in the activity which is the subject of that licensure;

(8) specialty contractors who provide only one special skill as defined in section 326B.802;

(9) a school district, or a technical college governed under chapter 136F; and

(10) Habitat for Humanity and Builders Outreach Foundation, and their individual volunteers when engaged in activities on their behalf.

To qualify for the exemption in clause (5), a person must obtain a certificate of exemption from licensure from the commissioner. A certificate of exemption will be issued upon the applicant's filing with the commissioner, an affidavit stating that the applicant does not expect to exceed $15,000 in gross annual receipts derived from performing services which require licensure under this section during the calendar year in which the affidavit is received. For the purposes of calculating fees under section 326B.092, a certificate of exemption is an entry level license. To renew the exemption in clause (5), the applicant must file an affidavit stating that the applicant did not exceed $15,000 in gross annual receipts during the past calendar year. If a person, operating under the exemption in clause (5), exceeds $15,000 in gross receipts during any calendar year, the person must immediately surrender the certificate of exemption and apply for the appropriate license. The person must remain licensed until such time as the person's gross annual receipts during a calendar year fall below $15,000. The person may then apply for an exemption for the next calendar year.

Sec. 54.

Minnesota Statutes 2022, section 326B.921, subdivision 8, is amended to read:

Subd. 8.

Reciprocity with other states.

deleted text begin The commissioner may issue a temporary license without examination, upon payment of the required fee, to nonresident applicants who are licensed under the laws of a state having standards for licensing which the commissioner determines are substantially equivalent to the standards of this state if the other state grants similar privileges to Minnesota residents duly licensed in this state. Applicants who receive a temporary license under this section may acquire an aggregate of 24 months of experience before they have to apply and pass the licensing examination. Applicants must register with the commissioner of labor and industry and the commissioner shall set a fee for a temporary license. Applicants have five years in which to comply with this section. deleted text end

new text begin (a) The commissioner may enter into reciprocity agreements for personal licenses with another state if approved by the board. Once approved by the board, the commissioner may issue a personal license without requiring the applicant to pass an examination provided the applicant: new text end

new text begin (1) submits an application under this section; new text end

new text begin (2) pays the application and examination fee and license fee required under section 326B.092; and new text end

new text begin (3) holds a valid comparable license in the state participating in the agreement. new text end

new text begin (b) Reciprocity agreements are subject to the following: new text end

new text begin (1) the parties to the agreement must administer a statewide licensing program that includes examination and qualifying experience or training comparable to Minnesota's licensing program; new text end

new text begin (2) the experience and training requirements under which an individual applicant qualified for examination in the qualifying state must be deemed equal to or greater than required for an applicant making application in Minnesota at the time the applicant acquired the license in the qualifying state; new text end

new text begin (3) the applicant must have acquired the license in the qualifying state through an examination deemed equivalent to the same class of license examination in Minnesota; new text end

new text begin (4) at the time of application, the applicant must hold a valid license in the qualifying state and have held the license continuously for at least one year before making application in Minnesota; new text end

new text begin (5) an applicant is not eligible for a license under this subdivision if the applicant has failed the same or greater class of license examination in Minnesota, or if the applicant's license of the same or greater class has been revoked or suspended; and new text end

new text begin (6) an applicant who has failed to renew a personal license for two years or more after its expiration is not eligible for a license under this subdivision. new text end

Sec. 55.

Minnesota Statutes 2022, section 326B.925, subdivision 1, is amended to read:

Subdivision 1.

Composition.

(a) The Board of High Pressure Piping Systems shall consist of 13 members. Twelve members shall be appointed by the governor with the advice and consent of the senate and shall be voting members. Appointments of members by the governor shall be made in accordance with section 15.066. If the senate votes to refuse to consent to an appointment of a member made by the governor, the governor shall appoint a new member with the advice and consent of the senate. One member shall be the commissioner of labor and industry or the commissioner of labor and industry's designee, who shall be a voting member. Of the 12 appointed members, the composition shall be as follows:

(1) one member shall be a high pressure piping inspector;

(2) one member shall be a licensed mechanical engineer;

(3) one member shall be a representative of the high pressure piping industry;

(4) four members shall be master high pressure pipefitters engaged in the business of high pressure piping, two from the metropolitan area and two from greater Minnesota;

(5) two members shall be journeyworker high pressure pipefitters deleted text begin engaged in the business of high pressure piping systems installation deleted text end , one from the metropolitan area and one from greater Minnesota;

(6) one member shall be a representative of industrial companies that use high pressure piping systems in their industrial process;

(7) one member shall be a representative from utility companies in Minnesota; and

(8) one member shall be a public member as defined by section 214.02.

The high pressure piping inspector shall be appointed for a term to end December 31, 2011. The professional mechanical engineer shall be appointed for a term to end December 31, 2010. The representative of the high pressure piping industry shall be appointed for a term to end December 31, 2011. Two of the master high pressure pipefitters shall be appointed for a term to end December 31, 2011. The other two master high pressure pipefitters shall be appointed for a term to end December 31, 2010. One of the journeyworker high pressure pipefitters shall be appointed for a term to end December 31, 2011. The other journeyworker high pressure pipefitter shall be appointed for a term to end December 31, 2010. The one representative of industrial companies that use high pressure piping systems in their industrial process shall be appointed for a term to end December 31, 2010. The one representative of a utility company in Minnesota shall be appointed for a term to end December 31, 2010. The public member shall be appointed for a term to end December 31, 2010.

(b) The licensed professional mechanical engineer must possess a current Minnesota professional engineering license and maintain the license for the duration of their term. All other appointed members, except for the representative of the piping industry, the representative of industrial companies that use high pressure piping systems, the public member, and the representative of public utility companies in Minnesota, must possess a current high pressure piping license issued by the Department of Labor and Industry and maintain that license for the duration of their term. All appointed members must be residents of Minnesota at the time of and throughout the member's appointment. The term of any appointed member that does not maintain membership qualification status shall end on the date of status change and the governor shall appoint a new member. It is the responsibility of the member to notify the board of the member's status change.

(c) For appointed members, except the initial terms designated in paragraph (a), each term shall be three years with the terms ending on December 31. Members appointed by the governor shall be limited to three consecutive terms. The governor shall, all or in part, reappoint the current members or appoint replacement members with the advice and consent of the senate. Midterm vacancies shall be filled for the remaining portion of the term. Vacancies occurring with less than six months time remaining in the term shall be filled for the existing term and the following three-year term. Members may serve until their successors are appointed but in no case later than July 1 in a year in which the term expires unless reappointed.

Sec. 56.

Minnesota Statutes 2022, section 326B.988, is amended to read:

326B.988 EXCEPTIONS.

(a) The provisions of sections 326B.95 to 326B.998 shall not apply to:

(1) boilers and pressure vessels in buildings occupied solely for residence purposes with accommodations for not more than five families;

(2) railroad locomotives operated by railroad companies for transportation purposes;

(3) air tanks installed on the right-of-way of railroads and used directly in the operation of trains;

(4) boilers and pressure vessels under the direct jurisdiction of the United States;

(5) unfired pressure vessels having an internal or external working pressure not exceeding 15 psig with no limit on size;

(6) pressure vessels used for storage of compressed air not exceeding five cubic feet in volume and equipped with an ASME code stamped safety valve set at a maximum of 100 psig;

(7) pressure vessels having an inside diameter not exceeding six inches;

(8) every vessel that contains water under pressure, including those containing air that serves only as a cushion, whose design pressure does not exceed 300 psig and whose design temperature does not exceed 210 degrees Fahrenheit;

(9) boiler or pressure vessels located on farms used solely for agricultural or horticultural purposes; for purposes of this section, boilers used for mint oil extraction are considered used for agricultural or horticultural purposes, provided that the owner or lessee complies with the inspection requirements contained in section 326B.958;

(10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;

(11) unfired pressure vessels in petroleum refineries;

(12) an air tank or pressure vessel which is an integral part of a passenger motor bus, truck, or trailer;

(13) hot water heating and other hot liquid boilers not exceeding a heat input of 750,000 BTU per hour;

(14) hot water supply boilers deleted text begin (water heaters) deleted text end not exceeding a heat input of deleted text begin 500,000 deleted text end new text begin 200,000 new text end BTU per hour, deleted text begin a water temperature of 210 degrees Fahrenheit, deleted text end new text begin or potable water heaters not exceeding a heat input of 200,000 BTU per hour or new text end a nominal water capacity of 120 gallons deleted text begin , or a pressure of 160 psig deleted text end ;

(15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;

(16) pressure vessels operated full of water or other liquid not materially more hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees Fahrenheit or a pressure of 200 psig;

(17) steam-powered turbines at papermaking facilities which are powered by steam generated by steam facilities at a remote location;

(18) manually fired boilers for model locomotive, boat, tractor, stationary engine, or antique motor vehicles constructed or maintained only as a hobby for exhibition, educational or historical purposes and not for commercial use, if the boilers have an inside diameter of 12 inches or less, or a grate area of two square feet or less, and are equipped with an ASME stamped safety valve of adequate size, a water level indicator, and a pressure gauge;

(19) any pressure vessel used as an integral part of an electrical circuit breaker;

(20) pressure vessels used for the storage of refrigerant if they are built to ASME code specifications, registered with the national board, and equipped with an ASME code-stamped pressure-relieving device set no higher than the maximum allowable working pressure of the vessel. This does not include pressure vessels used in ammonia refrigeration systems;

(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide, argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME or Minnesota Department of Transportation specifications and equipped with an ASME code-stamped pressure-relieving device. The owner of the vessels shall perform annual visual inspections and planned maintenance on these vessels to ensure vessel integrity;

(22) pressure vessels used for the storage of compressed air for self-contained breathing apparatuses;

(23) hot water heating or other hot liquid boilers vented directly to the atmosphere; and

(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or less.

(b) An engineer's license is not required for hot water supply boilers.

(c) An engineer's license and annual inspection by the department is not required for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.

(d) Electric boilers not exceeding a maximum working pressure of 50 psig, maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure vessels and shall not require an engineer license to operate.

Sec. 57.

new text begin [327.30] SACRED COMMUNITIES AND MICRO-UNIT DWELLINGS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Chronically homeless" means an individual who: new text end

new text begin (1) is homeless and lives or resides in a place not meant for human habitation, a safe haven, or in an emergency shelter; new text end

new text begin (2) has been homeless and living or residing in a place not meant for human habitation, a safe haven, or in an emergency shelter continuously for at least one year or on at least four separate occasions in the last three years; and new text end

new text begin (3) has an adult head of household, or a minor head-of-household if no adult is present in the household, with a diagnosable substance use disorder, serious mental illness, developmental disability, post-traumatic stress disorder, cognitive impairments resulting from a brain injury, or chronic physical illness or disability, including the co-occurrence of two or more of those conditions. new text end

new text begin (c) "Designated volunteers" means persons who have not experienced homelessness and have been approved by the religious institution to live in a sacred community as their sole form of housing. new text end

new text begin (d) "Extremely low income" means an income that is equal to or less than 30 percent of the area median income, adjusted for family size, as estimated by the Department of Housing and Urban Development. new text end

new text begin (e) "Micro unit" means a mobile residential dwelling providing permanent housing within a sacred community that meets the requirements of subdivision 4. new text end

new text begin (f) "Religious institution" means a church, synagogue, mosque, or other religious organization organized under chapter 315. new text end

new text begin (g) "Sacred community" means a residential settlement established on or contiguous to the grounds of a religious institution's primary worship location primarily for the purpose of providing permanent housing for chronically homeless persons, extremely low-income persons, and designated volunteers that meets the requirements of subdivision 3. new text end

new text begin Subd. 2. new text end

new text begin Dwelling in micro units in sacred communities authorized. new text end

new text begin Religious institutions are authorized to provide permanent housing to people who are chronically homeless, extremely low-income, or designated volunteers, in sacred communities composed of micro units subject to the provisions of this section. Each religious institution that has sited a sacred community must annually certify to the local unit of government that it has complied with the eligibility requirements for residents of a sacred community in this section. new text end

new text begin Subd. 3. new text end

new text begin Sacred community requirements. new text end

new text begin (a) A sacred community must provide residents of micro units access to water and electric utilities either by connecting the micro units to the utilities that are serving the principal building on the lot or by other comparable means, or by providing the residents access to permanent common kitchen facilities and common facilities for toilet, bathing, and laundry with the number and type of fixtures required for an R-2 boarding house under Minnesota Rules, part 1305.2902. Any units that are plumbed shall not be included in determining the minimum number of fixtures required for the common facilities. new text end

new text begin (b) A sacred community under this section must: new text end

new text begin (1) be appropriately insured; new text end

new text begin (2) have between one-third and 40 percent of the micro units occupied by designated volunteers; and new text end

new text begin (3) provide the municipality with a written plan approved by the religious institution's governing board that outlines: new text end

new text begin (i) disposal of water and sewage from micro units if not plumbed; new text end

new text begin (ii) septic tank drainage if plumbed units are not hooked up to the primary worship location's system; new text end

new text begin (iii) adequate parking, lighting, and access to units by emergency vehicles; new text end

new text begin (iv) protocols for security and addressing conduct within the settlement; and new text end

new text begin (v) safety protocols for severe weather. new text end

new text begin (c) Unless the municipality has designated sacred communities meeting the requirements of this section as permitted uses, a sacred community meeting the requirements of this section shall be approved and regulated as a conditional use without the application of additional standards not included in this section. When approved, additional permitting is not required for individual micro units. new text end

new text begin (d) Sacred communities are subject to the laws governing landlords and tenants under chapter 504B. new text end

new text begin Subd. 4. new text end

new text begin Micro unit requirements. new text end

new text begin (a) In order to be eligible to be placed within a sacred community, a micro unit must be built to the requirements of the American National Standards Institute (ANSI) Code 119.5, which includes standards for heating, electrical systems, and fire and life safety. A micro unit must also meet the following technical requirements: new text end

new text begin (1) be no more than 400 gross square feet; new text end

new text begin (2) be built on a permanent chassis and anchored to pin foundations with engineered fasteners; new text end

new text begin (3) have exterior materials that are compatible in composition, appearance, and durability to the exterior materials used in standard residential construction; new text end

new text begin (4) have a minimum insulation rating of R-20 in walls, R-30 in floors, and R-38 in ceilings, as well as residential grade insulated doors and windows; new text end

new text begin (5) have a dry, compostable, or plumbed toilet or other system meeting the requirements of the Minnesota Pollution Control Agency, Chapters 7035, 7040, 7049, and 7080, or other applicable rules; new text end

new text begin (6) have either an electrical system that meets NFPA 70 NEC, section 551 or 552 as applicable or a low voltage electrical system that meets ANSI/RVIA Low Voltage Standard, current edition; new text end

new text begin (7) have minimum wall framing with two inch by four inch wood or metal studs with framing of 16 inches to 24 inches on center, or the equivalent in structural insulated panels, with a floor load of 40 pounds per square foot and a roof live load of 42 pounds per square foot; and new text end

new text begin (8) have smoke and carbon monoxide detectors installed. new text end

new text begin (b) All micro units, including their anchoring, must be inspected and certified for compliance with these requirements by a licensed Minnesota professional engineer or qualified third-party inspector for ANSI compliance accredited pursuant to either the American Society for Testing and Materials Appendix E541 or ISO/IEC 17020. new text end

new text begin (c) Micro units that connect to utilities such as water, sewer, gas, or electric, must obtain any permits or inspections required by the municipality or utility company for that connection. new text end

new text begin (d) Micro units must comply with municipal setback requirements established by ordinance for manufactured homes. If a municipality does not have such an ordinance, micro units must be set back on all sides by at least ten feet. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 58.

Minnesota Statutes 2022, section 572B.17, is amended to read:

572B.17 WITNESSES; SUBPOENAS; DEPOSITIONS; DISCOVERY.

(a) An arbitrator may issue a subpoena for the attendance of a witness and for the production of records and other evidence at any hearing and may administer oaths. A subpoena must be served in the manner for service of subpoenas in a civil action and, upon motion to the court by a party to the arbitration proceeding or the arbitrator, enforced in the manner for enforcement of subpoenas in a civil action.

(b) On request of a party to or a witness in an arbitration proceeding, an arbitrator may permit a deposition of any witness to provide testimony at the arbitration hearing, including a witness who cannot be subpoenaed for or is unable to attend a hearing, to be taken under conditions determined by the arbitrator for use as evidence in order to make the proceeding fair, expeditious, and cost-effective.

(c) An arbitrator may permit such discovery as the arbitrator decides is appropriate in the circumstances, taking into account the needs of the parties to the arbitration proceeding and other affected persons and the desirability of making the proceeding fair, expeditious, and cost-effective.

(d) If an arbitrator permits discovery under subsection (c), the arbitrator may order a party to the arbitration proceeding to comply with the arbitrator's discovery-related orders, including the issuance of a subpoena for the attendance of a witness and for the production of records and other evidence at a discovery proceeding, and may take action against a party to the arbitration proceeding who does not comply to the extent permitted by law as if the controversy were the subject of a civil action in this state.

(e) An arbitrator may issue a protective order to prevent the disclosure of privileged information, confidential information, trade secrets, new text begin data classified as nonpublic or private pursuant to chapter 13, new text end and other information protected from disclosure as if the controversy were the subject of a civil action in this state.

(f) All laws compelling a person under subpoena to testify and all fees for attending a judicial proceeding, a deposition, or a discovery proceeding as a witness apply to an arbitration proceeding as if the controversy were the subject of a civil action under the laws and rules of civil procedure of this state.

(g) The court may enforce a subpoena or discovery-related order for the attendance of a witness within this state and for the production of records and other evidence issued by an arbitrator in connection with an arbitration proceeding in another state upon conditions determined by the court in order to make the arbitration proceeding fair, expeditious, and cost-effective. A subpoena or discovery-related order issued by an arbitrator must be served in the manner provided by law for service of subpoenas in a civil action in this state and, upon motion to the court by a party to the arbitration proceeding or the arbitrator, enforced in the manner provided by law for enforcement of subpoenas in a civil action in this state.

Sec. 59.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 179A.12, subdivision 2, new text end new text begin is repealed. new text end

ARTICLE 12

EARNED SICK AND SAFE TIME

Section 1.

Minnesota Statutes 2022, section 181.032, is amended to read:

181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER; NOTICE TO EMPLOYEE.

(a) At the end of each pay period, the employer shall provide each employee an earnings statement, either in writing or by electronic means, covering that pay period. An employer who chooses to provide an earnings statement by electronic means must provide employee access to an employer-owned computer during an employee's regular working hours to review and print earnings statements.

(b) The earnings statement may be in any form determined by the employer but must include:

(1) the name of the employee;

(2) the rate or rates of pay and basis thereof, including whether the employee is paid by hour, shift, day, week, salary, piece, commission, or other method;

(3) allowances, if any, claimed pursuant to permitted meals and lodging;

(4) the total number of hours worked by the employee unless exempt from chapter 177;

(5) new text begin the total number of earned sick and safe time hours accrued and available for use under section 181.9446; new text end

new text begin (6) the total number of earned sick and safe time hours used during the pay period under section 181.9447; new text end

new text begin (7) new text end the total amount of gross pay earned by the employee during that period;

deleted text begin (6) deleted text end new text begin (8) new text end a list of deductions made from the employee's pay;

deleted text begin (7) deleted text end new text begin (9) new text end the net amount of pay after all deductions are made;

deleted text begin (8) deleted text end new text begin (10) new text end the date on which the pay period ends;

deleted text begin (9) deleted text end new text begin (11) new text end the legal name of the employer and the operating name of the employer if different from the legal name;

deleted text begin (10) deleted text end new text begin (12) new text end the physical address of the employer's main office or principal place of business, and a mailing address if different; and

deleted text begin (11) deleted text end new text begin (13) new text end the telephone number of the employer.

(c) An employer must provide earnings statements to an employee in writing, rather than by electronic means, if the employer has received at least 24 hours notice from an employee that the employee would like to receive earnings statements in written form. Once an employer has received notice from an employee that the employee would like to receive earnings statements in written form, the employer must comply with that request on an ongoing basis.

(d) At the start of employment, an employer shall provide each employee a written notice containing the following information:

(1) the rate or rates of pay and basis thereof, including whether the employee is paid by the hour, shift, day, week, salary, piece, commission, or other method, and the specific application of any additional rates;

(2) allowances, if any, claimed pursuant to permitted meals and lodging;

(3) paid vacation, sick time, or other paid time-off accruals and terms of use;

(4) the employee's employment status and whether the employee is exempt from minimum wage, overtime, and other provisions of chapter 177, and on what basis;

(5) a list of deductions that may be made from the employee's pay;

(6) the number of days in the pay period, the regularly scheduled pay day, and the pay day on which the employee will receive the first payment of wages earned;

(7) the legal name of the employer and the operating name of the employer if different from the legal name;

(8) the physical address of the employer's main office or principal place of business, and a mailing address if different; and

(9) the telephone number of the employer.

(e) The employer must keep a copy of the notice under paragraph (d) signed by each employee acknowledging receipt of the notice. The notice must be provided to each employee in English. The English version of the notice must include text provided by the commissioner that informs employees that they may request, by indicating on the form, the notice be provided in a particular language. If requested, the employer shall provide the notice in the language requested by the employee. The commissioner shall make available to employers the text to be included in the English version of the notice required by this section and assist employers with translation of the notice in the languages requested by their employees.

(f) An employer must provide the employee any written changes to the information contained in the notice under paragraph (d) prior to the date the changes take effect.

Sec. 2.

Minnesota Statutes 2022, section 181.942, subdivision 1, is amended to read:

Subdivision 1.

Comparable position.

(a) An employee returning from a leave of absence under section 181.941 is entitled to return to employment in the employee's former position or in a position of comparable duties, number of hours, and pay. An employee returning from a leave of absence longer than one month must notify a supervisor at least two weeks prior to return from leave. An employee returning from a leave under section 181.9412 or deleted text begin 181.9413 deleted text end new text begin sections 181.9445 to 181.9448 new text end is entitled to return to employment in the employee's former position.

(b) If, during a leave under sections 181.940 to 181.944, the employer experiences a layoff and the employee would have lost a position had the employee not been on leave, pursuant to the good faith operation of a bona fide layoff and recall system, including a system under a collective bargaining agreement, the employee is not entitled to reinstatement in the former or comparable position. In such circumstances, the employee retains all rights under the layoff and recall system, including a system under a collective bargaining agreement, as if the employee had not taken the leave.

Sec. 3.

Minnesota Statutes 2022, section 181.9436, is amended to read:

181.9436 POSTING OF LAW.

The Division of Labor Standards and Apprenticeship shall develop, with the assistance of interested business and community organizations, an educational poster stating employees' rights under sections 181.940 to deleted text begin 181.9436 deleted text end new text begin 181.9448 new text end . The department shall make the poster available, upon request, to employers for posting on the employer's premises.

Sec. 4.

new text begin [181.9445] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of section 177.50 and sections 181.9445 to 181.9448, the terms defined in this section have the meanings given them. new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of labor and industry or authorized designee or representative. new text end

new text begin Subd. 3. new text end

new text begin Domestic abuse. new text end

new text begin "Domestic abuse" has the meaning given in section 518B.01. new text end

new text begin Subd. 4. new text end

new text begin Earned sick and safe time. new text end

new text begin "Earned sick and safe time" means leave, including paid time off and other paid leave systems, that is paid at the same hourly rate as an employee earns from employment that may be used for the same purposes and under the same conditions as provided under section 181.9447, but in no case shall this hourly rate be less than that provided under section 177.24 or an applicable local minimum wage. new text end

new text begin Subd. 5. new text end

new text begin Employee. new text end

new text begin "Employee" means any person who is employed by an employer, including temporary and part-time employees, who performs work for at least 80 hours in a year for that employer in Minnesota. Employee does not include: new text end

new text begin (1) an independent contractor; or new text end

new text begin (2) an individual employed by an air carrier as a flight deck or cabin crew member who: new text end

new text begin (i) is subject to United States Code, title 45, sections 181 to 188; new text end

new text begin (ii) works less than a majority of their hours in Minnesota in a calendar year; and new text end

new text begin (iii) is provided with paid leave equal to or exceeding the amounts in section 181.9446. new text end

new text begin Subd. 6. new text end

new text begin Employer. new text end

new text begin "Employer" means a person who has one or more employees. Employer includes an individual, a corporation, a partnership, an association, a business trust, a nonprofit organization, a group of persons, the state of Minnesota, a county, town, city, school district, or other governmental subdivision. In the case of an employee leasing company or professional employer organization, the taxpaying employer, as described in section 268.046, subdivision 1, remains the employer. In the case of an individual provider within the meaning of section 256B.0711, subdivision 1, paragraph (d), the employer includes any participant within the meaning of section 256B.0711, subdivision 1, paragraph (e), or participant's representative within the meaning of section 256B.0711, subdivision 1, paragraph (f). In the event that a temporary employee is supplied by a staffing agency, absent a contractual agreement stating otherwise, that individual shall be an employee of the staffing agency for all purposes of section 177.50 and sections 181.9445 to 181.9448. Employer does not include the United States government. new text end

new text begin Subd. 7. new text end

new text begin Family member. new text end

new text begin "Family member" means: new text end

new text begin (1) an employee's: new text end

new text begin (i) child, foster child, adult child, legal ward, child for whom the employee is legal guardian, or child to whom the employee stands or stood in loco parentis; new text end

new text begin (ii) spouse or registered domestic partner; new text end

new text begin (iii) sibling, stepsibling, or foster sibling; new text end

new text begin (iv) biological, adoptive, or foster parent, stepparent, or a person who stood in loco parentis when the employee was a minor child; new text end

new text begin (v) grandchild, foster grandchild, or stepgrandchild; new text end

new text begin (vi) grandparent or stepgrandparent; new text end

new text begin (vii) a child of a sibling of the employee; new text end

new text begin (viii) a sibling of the parents of the employee; or new text end

new text begin (ix) a child-in-law or sibling-in-law; new text end

new text begin (2) any of the family members listed in clause (1) of a spouse or registered domestic partner; new text end

new text begin (3) any other individual related by blood or whose close association with the employee is the equivalent of a family relationship; and new text end

new text begin (4) up to one individual annually designated by the employee. new text end

new text begin Subd. 8. new text end

new text begin Health care professional. new text end

new text begin "Health care professional" means any person licensed, certified, or otherwise authorized under federal or state law to provide medical or emergency services, including doctors, physician assistants, nurses, advanced practice registered nurses, mental health professionals, and emergency room personnel. new text end

new text begin Subd. 9. new text end

new text begin Sexual assault. new text end

new text begin "Sexual assault" means an act that constitutes a violation under sections 609.342 to 609.3453 or 609.352. new text end

new text begin Subd. 10. new text end

new text begin Stalking. new text end

new text begin "Stalking" has the meaning given in section 609.749. new text end

new text begin Subd. 11. new text end

new text begin Year. new text end

new text begin "Year" means a regular and consecutive 12-month period, as determined by an employer and clearly communicated to each employee of that employer. new text end

Sec. 5.

new text begin [181.9446] ACCRUAL OF EARNED SICK AND SAFE TIME. new text end

new text begin (a) An employee accrues a minimum of one hour of earned sick and safe time for every 30 hours worked up to a maximum of 48 hours of earned sick and safe time in a year. Employees may not accrue more than 48 hours of earned sick and safe time in a year unless the employer agrees to a higher amount. new text end

new text begin (b)(1) Except as provided in clause (2), employers must permit an employee to carry over accrued but unused sick and safe time into the following year. The total amount of accrued but unused earned sick and safe time for an employee must not exceed 80 hours at any time, unless an employer agrees to a higher amount. new text end

new text begin (2) In lieu of permitting the carryover of accrued but unused sick and safe time into the following year as provided under clause (1), an employer may provide an employee with earned sick and safe time for the year that meets or exceeds the requirements of this section that is available for the employee's immediate use at the beginning of the subsequent year as follows: (i) 48 hours, if an employer pays an employee for accrued but unused sick and safe time at the end of a year at the same hourly rate as an employee earns from employment; or (ii) 80 hours, if an employer does not pay an employee for accrued but unused sick and safe time at the end of a year at the same or greater hourly rate as an employee earns from employment. In no case shall this hourly rate be less than that provided under section 177.24, or an applicable local minimum wage. new text end

new text begin (c) Employees who are exempt from overtime requirements under United States Code, title 29, section 213(a)(1), as amended through the effective date of this section, are deemed to work 40 hours in each workweek for purposes of accruing earned sick and safe time, except that an employee whose normal workweek is less than 40 hours will accrue earned sick and safe time based on the normal workweek. new text end

new text begin (d) Earned sick and safe time under this section begins to accrue at the commencement of employment of the employee. new text end

new text begin (e) Employees may use earned sick and safe time as it is accrued. new text end

Sec. 6.

new text begin [181.9447] USE OF EARNED SICK AND SAFE TIME. new text end

new text begin Subdivision 1. new text end

new text begin Eligible use. new text end

new text begin An employee may use accrued earned sick and safe time for: new text end

new text begin (1) an employee's: new text end

new text begin (i) mental or physical illness, injury, or other health condition; new text end

new text begin (ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or new text end

new text begin (iii) need for preventive medical or health care; new text end

new text begin (2) care of a family member: new text end

new text begin (i) with a mental or physical illness, injury, or other health condition; new text end

new text begin (ii) who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or other health condition; or new text end

new text begin (iii) who needs preventive medical or health care; new text end

new text begin (3) absence due to domestic abuse, sexual assault, or stalking of the employee or employee's family member, provided the absence is to: new text end

new text begin (i) seek medical attention related to physical or psychological injury or disability caused by domestic abuse, sexual assault, or stalking; new text end

new text begin (ii) obtain services from a victim services organization; new text end

new text begin (iii) obtain psychological or other counseling; new text end

new text begin (iv) seek relocation or take steps to secure an existing home due to domestic abuse, sexual assault, or stalking; or new text end

new text begin (v) seek legal advice or take legal action, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, or stalking; new text end

new text begin (4) closure of the employee's place of business due to weather or other public emergency or an employee's need to care for a family member whose school or place of care has been closed due to weather or other public emergency; new text end

new text begin (5) the employee's inability to work or telework because the employee is: (i) prohibited from working by the employer due to health concerns related to the potential transmission of a communicable illness related to a public emergency; or (ii) seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, a communicable disease related to a public emergency and such employee has been exposed to a communicable disease or the employee's employer has requested a test or diagnosis; and new text end

new text begin (6) when it has been determined by the health authorities having jurisdiction or by a health care professional that the presence of the employee or family member of the employee in the community would jeopardize the health of others because of the exposure of the employee or family member of the employee to a communicable disease, whether or not the employee or family member has actually contracted the communicable disease. new text end

new text begin For the purposes of this subdivision, a public emergency shall include a declared emergency as defined in section 12.03 or a declared local emergency under section 12.29. new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin An employer may require notice of the need for use of earned sick and safe time as provided in this paragraph. If the need for use is foreseeable, an employer may require advance notice of the intention to use earned sick and safe time but must not require more than seven days' advance notice. If the need is unforeseeable, an employer may require an employee to give notice of the need for earned sick and safe time as soon as practicable. An employer that requires notice of the need to use earned sick and safe time in accordance with this subdivision shall have a written policy containing reasonable procedures for employees to provide notice of the need to use earned sick and safe time, and shall provide a written copy of such policy to employees. If a copy of the written policy has not been provided to an employee, an employer shall not deny the use of earned sick and safe time to the employee on that basis. new text end

new text begin Subd. 3. new text end

new text begin Documentation. new text end

new text begin (a) When an employee uses earned sick and safe time for more than three consecutive days, an employer may require reasonable documentation that the earned sick and safe time is covered by subdivision 1. new text end

new text begin (b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6), reasonable documentation may include a signed statement by a health care professional indicating the need for use of earned sick and safe time. However, if the employee or employee's family member did not receive services from a health care professional, or if documentation cannot be obtained from a health care professional in a reasonable time or without added expense, then reasonable documentation for the purposes of this paragraph may include a written statement from the employee indicating that the employee is using or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause (1), (2), (5), or (6). new text end

new text begin (c) For earned sick and safe time under subdivision 1, clause (3), an employer must accept a court record or documentation signed by a volunteer or employee of a victims services organization, an attorney, a police officer, or an antiviolence counselor as reasonable documentation. new text end

new text begin (d) For earned sick and safe time to care for a family member under subdivision 1, clause (4), an employer must accept as reasonable documentation a written statement from the employee indicating that the employee is using or used earned sick and safe time for a qualifying purpose as reasonable documentation. new text end

new text begin (e) An employer must not require disclosure of details relating to domestic abuse, sexual assault, or stalking or the details of an employee's or an employee's family member's medical condition as related to an employee's request to use earned sick and safe time under this section. new text end

new text begin (f) Written statements by an employee may be written in the employee's first language and need not be notarized or in any particular format. new text end

new text begin Subd. 4. new text end

new text begin Replacement worker. new text end

new text begin An employer may not require, as a condition of an employee using earned sick and safe time, that the employee seek or find a replacement worker to cover the hours the employee uses as earned sick and safe time. new text end

new text begin Subd. 5. new text end

new text begin Increment of time used. new text end

new text begin Earned sick and safe time may be used in the smallest increment of time tracked by the employer's payroll system, provided such increment is not more than four hours. new text end

new text begin Subd. 6. new text end

new text begin Retaliation prohibited. new text end

new text begin (a) An employer shall not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against a person because the person has exercised or attempted to exercise rights protected under this act, including but not limited to because the person requested earned sick and safe time, used earned sick and safe time, requested a statement of accrued sick and safe time, informed any person of his or her potential rights under sections 181.9445 to 181.9448, made a complaint or filed an action to enforce a right to earned sick and safe time under this section, or is or was participating in any manner in an investigation, proceeding, or hearing under this chapter. new text end

new text begin (b) It shall be unlawful for an employer's absence control policy or attendance point system to count earned sick and safe time taken under this act as an absence that may lead to or result in retaliation or any other adverse action. new text end

new text begin (c) It shall be unlawful for an employer or any other person to report or threaten to report the actual or suspected citizenship or immigration status of a person or their family member to a federal, state, or local agency for exercising or attempting to exercise any right protected under this act. new text end

new text begin (d) A person need not explicitly refer to this act or the rights enumerated herein to be protected from retaliation. new text end

new text begin Subd. 7. new text end

new text begin Pay and benefits. new text end

new text begin (a) During any use of earned sick and safe time, the employer must maintain coverage under any group insurance policy, group subscriber contract, or health care plan for the employee and any dependents, as if the employee was not using earned sick and safe time, provided, however, that the employee must continue to pay any employee share of the cost of such benefits. new text end

new text begin (b) An employee returning from a leave under this section is entitled to return to employment at the same rate of pay the employee had been receiving when the leave commenced, plus any automatic adjustments in the employee's pay scale that occurred during the leave period. The employee returning from a leave is entitled to retain all accrued preleave benefits of employment and seniority as if there had been no interruption in service, provided that nothing under this section prevents the accrual of benefits or seniority during the leave pursuant to a collective bargaining or other agreement between the employer and employees. new text end

new text begin Subd. 8. new text end

new text begin Part-time return from leave. new text end

new text begin An employee, by agreement with the employer, may return to work part time during the leave period without forfeiting the right to return to employment at the end of the leave, as provided under this section. new text end

new text begin Subd. 9. new text end

new text begin Notice and posting by employer. new text end

new text begin (a) Employers must give notice to all employees that they are entitled to earned sick and safe time, including the amount of earned sick and safe time, the accrual year for the employee, the terms of its use under this section, and a copy of the written policy for providing notice as provided under subdivision 2; that retaliation against employees who request or use earned sick and safe time is prohibited; and that each employee has the right to file a complaint or bring a civil action if earned sick and safe time is denied by the employer or the employee is retaliated against for requesting or using earned sick and safe time. new text end

new text begin (b) Employers must supply employees with a notice in English and the primary language of the employee, as identified by the employee, that contains the information required in paragraph (a) at commencement of employment or the effective date of this section, whichever is later. new text end

new text begin (c) The means used by the employer must be at least as effective as the following options for providing notice: new text end

new text begin (1) posting a copy of the notice at each location where employees perform work and where the notice must be readily observed and easily reviewed by all employees performing work; new text end

new text begin (2) providing a paper or electronic copy of the notice to employees; or new text end

new text begin (3) a conspicuous posting in a web-based or app-based platform through which an employee performs work. new text end

new text begin The notice must contain all information required under paragraph (a). new text end

new text begin (d) An employer that provides an employee handbook to its employees must include in the handbook notice of employee rights and remedies under this section. new text end

new text begin (e) The Department of Labor and Industry shall prepare a uniform employee notice form for employers to use that provides the notice information required under this section. The commissioner shall prepare the uniform employee notice in the five most common languages spoken in Minnesota. Upon the written request of an employer who is subject to this section, the commissioner shall provide a copy of the uniform employee notice in any primary language spoken by an employee in the employer's place of business. If the commissioner does not provide the copy of the uniform employee notice in response to a request under this paragraph, the employer who makes the request is not subject to a penalty for failing to provide the required notice under this subdivision for violations that arise after the date of the request. new text end

new text begin Subd. 10. new text end

new text begin Employer records. new text end

new text begin (a) Employers shall retain accurate records documenting hours worked by employees and earned sick and safe time taken and comply with all requirements under section 177.30. new text end

new text begin (b) An employer must allow an employee to inspect records required by this section and relating to that employee at a reasonable time and place. new text end

new text begin Subd. 11. new text end

new text begin Confidentiality and nondisclosure. new text end

new text begin (a) If, in conjunction with this section, an employer possesses: new text end

new text begin (1) health or medical information regarding an employee or an employee's family member; new text end

new text begin (2) information pertaining to domestic abuse, sexual assault, or stalking; new text end

new text begin (3) information that the employee has requested or obtained leave under this section; or new text end

new text begin (4) any written or oral statement, documentation, record, or corroborating evidence provided by the employee or an employee's family member, the employer must treat such information as confidential. new text end

new text begin Information given by an employee may only be disclosed by an employer if the disclosure is requested or consented to by the employee, when ordered by a court or administrative agency, or when otherwise required by federal or state law. new text end

new text begin (b) Records and documents relating to medical certifications, recertifications, or medical histories of employees or family members of employees created for purposes of section 177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records separate from the usual personnel files. At the request of the employee, the employer must destroy or return the records required by sections 181.9445 to 181.9448 that are older than three years prior to the current calendar year. new text end

new text begin (c) Employers may not discriminate against any employee based on records created for the purposes of section 177.50 or sections 181.9445 to 181.9448. new text end

Sec. 7.

new text begin [181.9448] EFFECT ON OTHER LAW OR POLICY. new text end

new text begin Subdivision 1. new text end

new text begin No effect on more generous sick and safe time policies. new text end

new text begin (a) Nothing in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting or retaining earned sick and safe time policies that meet or exceed, and do not otherwise conflict with, the minimum standards and requirements provided in sections 181.9445 to 181.9448. new text end

new text begin (b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of parties to a collective bargaining agreement to bargain and agree with respect to earned sick and safe time policies or to diminish the obligation of an employer to comply with any contract, collective bargaining agreement, or any employment benefit program or plan that meets or exceeds, and does not otherwise conflict with, the minimum standards and requirements provided in this section. new text end

new text begin (c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, requirement, policy, or standard that provides for a greater amount, accrual, or use by employees of paid sick and safe time or that extends other protections to employees. new text end

new text begin (d) Nothing in sections 181.9445 to 181.9448 shall be construed or applied so as to create any power or duty in conflict with federal law. new text end

new text begin (e) Employers who provide earned sick and safe time to their employees under a paid time off policy or other paid leave policy that may be used for the same purposes and under the same conditions as earned sick and safe time, and that meets or exceeds, and does not otherwise conflict with, the minimum standards and requirements provided in sections 181.9445 to 181.9448 are not required to provide additional earned sick and safe time. new text end

new text begin (f) The provisions of sections 181.9445 to 181.9448 may be waived by a collective bargaining agreement with a bona fide building and construction trades labor organization that has established itself as the collective bargaining representative for the affected building and construction industry employees, provided that for such waiver to be valid, it shall explicitly reference sections 181.9445 to 181.9448 and clearly and unambiguously waive application of those sections to such employees. new text end

new text begin (g) Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a policy whereby employees may donate unused accrued sick and safe time to another employee. new text end

new text begin (h) Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick and safe time to an employee before accrual by the employee. new text end

new text begin Subd. 2. new text end

new text begin Termination; separation; transfer. new text end

new text begin Sections 181.9445 to 181.9448 do not require financial or other reimbursement to an employee from an employer upon the employee's termination, resignation, retirement, or other separation from employment for accrued earned sick and safe time that has not been used. If an employee is transferred to a separate division, entity, or location, but remains employed by the same employer, the employee is entitled to all earned sick and safe time accrued at the prior division, entity, or location and is entitled to use all earned sick and safe time as provided in sections 181.9445 to 181.9448. When there is a separation from employment and the employee is rehired within 180 days of separation by the same employer, previously accrued earned sick and safe time that had not been used must be reinstated. An employee is entitled to use accrued earned sick and safe time and accrue additional earned sick and safe time at the commencement of reemployment. new text end

new text begin Subd. 3. new text end

new text begin Employer succession. new text end

new text begin (a) When a different employer succeeds or takes the place of an existing employer, all employees of the original employer who remain employed by the successor employer are entitled to all earned sick and safe time accrued but not used when employed by the original employer, and are entitled to use all earned sick and safe time previously accrued but not used. new text end

new text begin (b) If, at the time of transfer of the business, employees are terminated by the original employer and hired within 30 days by the successor employer following the transfer, those employees are entitled to all earned sick and safe time accrued but not used when employed by the original employer, and are entitled to use all earned sick and safe time previously accrued but not used. new text end

Sec. 8.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 181.9413, new text end new text begin is repealed. new text end

Sec. 9.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 13

EARNED SICK AND SAFE TIME ENFORCEMENT

Section 1.

Minnesota Statutes 2022, section 177.27, subdivision 2, is amended to read:

Subd. 2.

Submission of records; penalty.

The commissioner may require the employer of employees working in the state to submit to the commissioner photocopies, certified copies, or, if necessary, the originals of employment records which the commissioner deems necessary or appropriate. The records which may be required include full and correct statements in writing, including sworn statements by the employer, containing information relating to wages, hours, names, addresses, and any other information pertaining to the employer's employees and the conditions of their employment as the commissioner deems necessary or appropriate.

The commissioner may require the records to be submitted by certified mail delivery or, if necessary, by personal delivery by the employer or a representative of the employer, as authorized by the employer in writing.

The commissioner may fine the employer up to deleted text begin $1,000 deleted text end new text begin $10,000 new text end for each failure to submit or deliver records as required by this section deleted text begin , and up to $5,000 for each repeated failure deleted text end . This penalty is in addition to any penalties provided under section 177.32, subdivision 1. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered.

Sec. 2.

Minnesota Statutes 2022, section 177.27, subdivision 4, as amended by Laws 2023, chapter 30, section 1, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, subdivision 2a, 181.722, 181.79, 181.939 to 181.943, new text begin 181.9445 to 181.9448, new text end and 181.987, or with any rule promulgated under section 177.28. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 or 181.987 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 or 181.987 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2022, section 177.27, subdivision 7, is amended to read:

Subd. 7.

Employer liability.

If an employer is found by the commissioner to have violated a section identified in subdivision 4, or any rule adopted under section 177.28, and the commissioner issues an order to comply, the commissioner shall order the employer to cease and desist from engaging in the violative practice and to take such affirmative steps that in the judgment of the commissioner will effectuate the purposes of the section or rule violated. The commissioner shall order the employer to pay to the aggrieved parties back pay, gratuities, and compensatory damages, less any amount actually paid to the employee by the employer, and for an additional equal amount as liquidated damages. Any employer who is found by the commissioner to have repeatedly or willfully violated a section or sections identified in subdivision 4 shall be subject to a civil penalty of up to deleted text begin $1,000 deleted text end new text begin $10,000 new text end for each violation for each employee. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered. In addition, the commissioner may order the employer to reimburse the department and the attorney general for all appropriate litigation and hearing costs expended in preparation for and in conducting the contested case proceeding, unless payment of costs would impose extreme financial hardship on the employer. If the employer is able to establish extreme financial hardship, then the commissioner may order the employer to pay a percentage of the total costs that will not cause extreme financial hardship. Costs include but are not limited to the costs of services rendered by the attorney general, private attorneys if engaged by the department, administrative law judges, court reporters, and expert witnesses as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's order from the date the order is signed by the commissioner until it is paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish escrow accounts for purposes of distributing damages.

Sec. 4.

new text begin [177.50] EARNED SICK AND SAFE TIME ENFORCEMENT. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in section 181.9445 apply to this section. new text end

new text begin Subd. 2. new text end

new text begin Individual remedies. new text end

new text begin An action to recover damages under section 181.944 for violation of sections 181.9445 to 181.9448 must be commenced within three years of the violation that caused the injury to the employee. new text end

new text begin Subd. 3. new text end

new text begin Grants to community organizations. new text end

new text begin The commissioner may make grants to community organizations for the purpose of outreach to and education for employees regarding their rights under sections 181.9445 to 181.9448. The community-based organizations must be selected based on their experience, capacity, and relationships in high-violation industries. The work under such a grant may include the creation and administration of a statewide worker hotline. new text end

new text begin Subd. 4. new text end

new text begin Report to legislature. new text end

new text begin (a) The commissioner must submit an annual report to the legislature, including to the chairs and ranking minority members of any relevant legislative committee. The report must include but is not limited to: new text end

new text begin (1) a list of all violations of sections 181.9445 to 181.9448, including the employer involved, and the nature of any violations; and new text end

new text begin (2) an analysis of noncompliance with sections 181.9445 to 181.9448, including any patterns by employer, industry, or county. new text end

new text begin (b) A report under this section must not include an employee's name or other identifying information, any health or medical information regarding an employee or an employee's family member, or any information pertaining to domestic abuse, sexual assault, or stalking of an employee or an employee's family member. new text end

new text begin Subd. 5. new text end

new text begin Contract for labor or services. new text end

new text begin It is the responsibility of all employers to not enter into any contract or agreement for labor or services where the employer has any actual knowledge or knowledge arising from familiarity with the normal facts and circumstances of the business activity engaged in, or has any additional facts or information that, taken together, would make a reasonably prudent person undertake to inquire whether, taken together, the contractor is not complying or has failed to comply with this section. For purposes of this subdivision, "actual knowledge" means information obtained by the employer that the contractor has violated this section within the past two years and has failed to present the employer with credible evidence that such noncompliance has been cured going forward. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024, except that the grant-making process under subdivision 3 is effective the day following final enactment. new text end

Sec. 5.

Minnesota Statutes 2022, section 181.944, is amended to read:

181.944 INDIVIDUAL REMEDIES.

In addition to any other remedies provided by law, a person injured by a violation of sections 181.172, paragraph (a) or (d), deleted text begin and deleted text end 181.939 to 181.943 new text begin , and 181.9445 to 181.9448 new text end may bring a civil action to recover any and all damages recoverable at law, together with costs and disbursements, including reasonable attorney's fees, and may receive injunctive and other equitable relief as determined by a court.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024, and applies to causes of action occurring on or after that date. new text end

ARTICLE 14

EARNED SICK AND SAFE TIME APPROPRIATIONS

Section 1.

new text begin EARNED SICK AND SAFE TIME APPROPRIATIONS. new text end

new text begin (a) $1,445,000 in fiscal year 2024 and $2,209,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of labor and industry for enforcement and other duties regarding earned sick and safe time under Minnesota Statutes, sections 181.9445 to 181.9448, and chapter 177. The base for this appropriation is $1,899,000 for fiscal year 2026 and each year thereafter. new text end

new text begin (b) $300,000 in fiscal year 2024 and $300,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of labor and industry for grants to community organizations under Minnesota Statutes, section 177.50, subdivision 4. This is a onetime appropriation. new text end

ARTICLE 15

EMPLOYMENT AND ECONOMIC DEVELOPMENT

Section 1.

new text begin [116J.418] OFFICE OF CHILD CARE COMMUNITY PARTNERSHIPS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

new text begin Subd. 2. new text end

new text begin Office established; purpose. new text end

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

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

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

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

new text begin Subd. 3. new text end

new text begin Organization. new text end

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

new text begin Subd. 4. new text end

new text begin Duties. new text end

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

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

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

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

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

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

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

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

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin (a) Beginning January 15, 2024, and each year thereafter, the Office of Child Care Community Partnerships shall report to the legislative committees with jurisdiction over child care policy and finance on the office's activities during the previous year. new text end

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

new text begin (1) an analysis of the current access to child care within the state; new text end

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

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

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

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

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

Sec. 2.

new text begin [116J.4231] OFFICE OF NEW AMERICANS. new text end

new text begin Subdivision 1. new text end

new text begin Office established; purpose. new text end

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

new text begin (b) The purpose of the office is to foster immigrant and refugee inclusion through an intentional process to improve economic mobility, enhance civic participation, and improve receiving communities' openness to immigrants and refugees by incorporating the needs and aspirations of immigrants and refugees, their families, and their communities for the benefit of all by fulfilling the duties outlined in subdivision 2. new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

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

new text begin (1) create and implement a statewide strategy and programming to foster and promote immigrant and refugee inclusion in Minnesota so as to improve economic mobility, enhance civic participation, and improve receiving communities' openness to immigrants and refugees; new text end

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

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

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

new text begin (5) support equitable opportunities for immigrants and refugees to access state government services and grants, including collaborating with Minnesota's ethnic councils as created by section 15.0145; new text end

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

new text begin (7) coordinate and establish best practices for language access initiatives to all state agencies after soliciting input from Minnesota's ethnic councils; new text end

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

new text begin (9) make policy recommendations to the governor on issues impacting immigrants and refugees after soliciting input from Minnesota's ethnic councils; new text end

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

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

new text begin (12) serve as the point of contact for immigrants and refugees accessing resources both within the department and with boards charged with oversight of a profession; new text end

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

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

new text begin (15) perform any other activities consistent with the office's purpose; and new text end

new text begin (16) administer any grant program or other appropriation to the office. new text end

new text begin Subd. 3. new text end

new text begin Reporting. new text end

new text begin (a) Beginning January 15, 2025, and each year thereafter, the Office of New Americans shall report to the legislative committees with jurisdiction over the office's activities during the previous year. new text end

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (12) the Council on Asian Pacific Minnesotans; new text end

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

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

new text begin (d) Each department or office specified in paragraph (c) shall designate one staff member as an immigrant and refugee services liaison. The liaison's responsibilities shall include: new text end

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

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

new text begin Subd. 5. new text end

new text begin No right of action. new text end

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

new text begin Subd. 6. new text end

new text begin Grants. new text end

new text begin The Office of New Americans may apply for grants for interested state agencies, community partners, and stakeholders under this section to carry out the duties under subdivision 2. new text end

Sec. 3.

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

new text begin Subdivision 1. new text end

new text begin Creation. new text end

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

new text begin Subd. 2. new text end

new text begin Qualified grantee. new text end

new text begin A grantee must: new text end

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

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

new text begin Subd. 3. new text end

new text begin Program requirements. new text end

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Application. new text end

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

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

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

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

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

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

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

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

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

new text begin (v) employers; new text end

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

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

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

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

new text begin Subd. 5. new text end

new text begin Participant eligibility. new text end

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

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

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

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

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

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

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

new text begin Subd. 6. new text end

new text begin Report to legislature. new text end

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

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

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

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

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

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

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

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

Sec. 4.

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

Subd. 8.

Meetings.

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

Sec. 5.

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

Subd. 10.

Expiration.

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

Sec. 6.

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

Subdivision 1.

Definitions.

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

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

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

Sec. 7.

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

Subd. 5.

Grant awards; limitations.

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

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

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

Sec. 8.

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

Subd. 6.

Eligible expenditures.

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

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

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

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

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

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

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

Sec. 9.

new text begin [116J.682] SMALL BUSINESS ASSISTANCE PARTNERSHIPS PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Partner organizations" or "partners" means: new text end

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

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

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

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

new text begin (e) "Underserved populations and geographies" means individuals who are Black, Indigenous, people of color, veterans, people with disabilities, people who are LGBTQ+, and low-income individuals and includes people from rural Minnesota. new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish the small business assistance partnerships program to make grants to local and regional community-based organizations to provide small business development and technical assistance services to entrepreneurs and small business owners. new text end

new text begin Subd. 3. new text end

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

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

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

new text begin Subd. 4. new text end

new text begin Report. new text end

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

Sec. 10.

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

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

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

new text begin Subd. 2. new text end

new text begin Long-term loans. new text end

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

new text begin Subd. 3. new text end

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

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

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Revolving loan fund. new text end

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

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

new text begin Subd. 5. new text end

new text begin Loan portfolio administration. new text end

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

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

new text begin Subd. 6. new text end

new text begin Cooperation. new text end

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

new text begin Subd. 7. new text end

new text begin Reporting requirements. new text end

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

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

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

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

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

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

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

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

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

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

Sec. 11.

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

Subd. 3.

Minnesota job creation fund business designation; requirements.

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

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

(i) manufacturing;

(ii) warehousing;

(iii) distribution;

(iv) information technology;

(v) finance;

(vi) insurance; or

(vii) professional or technical services;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(9) any other criteria the commissioner deems necessary.

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

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

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

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

Sec. 12.

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

Subd. 4.

Certification; benefits.

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 13.

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

Subd. 6.

Job creation award.

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

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

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

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

Sec. 14.

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

new text begin Subd. 6a. new text end

new text begin Transfer. new text end

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

Sec. 15.

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

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

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

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Duties. new text end

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Administration. new text end

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

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

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

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

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

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

new text begin Subd. 5. new text end

new text begin Application process. new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 6. new text end

new text begin Innovation grants. new text end

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

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

new text begin (c) The commissioner shall provide a grant of up to $35,000 in Phase 1 or $50,000 in Phase 2 to an eligible business or entrepreneur that, as a registered client of the Small Business Innovation Research (SBIR) program, has been awarded a first time Phase 1 or Phase 2 award pursuant to the SBIR or Small Business Technology Transfer (STTR) programs after July 1, 2022. Each business or entrepreneur may receive only one grant per biennium under this paragraph. Grants under this paragraph are not subject to the requirements of subdivision 2, paragraph (k). new text end

new text begin Subd. 7. new text end

new text begin Entrepreneur education grants. new text end

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

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

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

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

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

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

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

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

new text begin Subd. 8. new text end

new text begin Report. new text end

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

new text begin Subd. 9. new text end

new text begin Advisory board. new text end

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

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

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

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

Sec. 16.

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

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (ii) woman; new text end

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Establishment. new text end

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

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

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

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

new text begin Subd. 4. new text end

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 5. new text end

new text begin Eligible expenses. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 6. new text end

new text begin Emerging developer fund account. new text end

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

new text begin Subd. 7. new text end

new text begin Reports to the legislature. new text end

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

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

Sec. 17.

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

Subd. 7.

deleted text begin Very deleted text end Low income.

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

Sec. 18.

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

Subdivision 1.

Generally.

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

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

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

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

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

(4) youth or senior citizen centers;

(5) community health centers; and

(6) community garden facilities.

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

Sec. 19.

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

Subd. 3.

Work experience component.

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

Sec. 20.

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

Subdivision 1.

Priority for housing.

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

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

(2) homeless families with at least one dependent;

(3) other homeless individuals;

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

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

Sec. 21.

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

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 3. new text end

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

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

new text begin (b) Grant awards must not exceed $30,000 per business. A business may only receive one grant for diversity and inclusion training per biennium. new text end

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

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

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

new text begin Subd. 4. new text end

new text begin Capacity building. new text end

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

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

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

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

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

Sec. 22.

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

Subd. 2.

Eligible applicant.

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

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

(1) a pregnant or parenting youth;

(2) a youth with limited English proficiency;

(3) a potential or actual school dropout;

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

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

(6) a youth with disabilities including learning disabilities;

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

(8) a homeless or runaway youth;

(9) a youth with basic skills deficiency;

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

(11) a foster child.

Sec. 23.

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

Subd. 5.

Allocation formula.

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

Sec. 24.

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

Subd. 2.

Definitions.

For purposes of this section:

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

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

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

Sec. 25.

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

Subd. 11.

Public infrastructure project.

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

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

(2) demolish, repair, or rehabilitate buildings;

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

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

Subdivision 1.

Definitions.

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

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

(c) "Construction projects" means:

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

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

Subd. 5.

State transit aid.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

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

Subd. 6.

Transit aid; local matching contribution.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Laws 2021, First Special Session chapter 4, article 8, section 30, is amended to read:

Sec. 30.

CLEAN ENERGY CAREERS PILOT PROJECT.

(a) The commissioner of employment and economic development must issue a grant for a pilot project to provide training pathways into careers in the clean energy sector for students and young adults in underserved communities.

(b) The pilot project must develop skills in program participants, short of the level required for licensing under Minnesota Statutes, chapter 326, that are relevant to designing, constructing, operating, or maintaining:

(1) systems that produce renewable solar or wind energy;

(2) improvements in energy efficiency, as defined under Minnesota Statutes, section 216B.241, subdivision 1;

(3) energy storage systems, including battery technology, connected to renewable energy facilities;

(4) infrastructure for charging all-electric or electric hybrid motor vehicles; or

(5) grid technologies that manage load and provide services to the distribution grid that reduce energy consumption or shift demand to off-peak periods.

(c) Training must be designed to create pathways to (1) a postsecondary degree, industry certification, or a registered apprenticeship program under Minnesota Statutes, chapter 178, that is related to the fields in paragraph (b), and (2) stable career employment at a living wage.

(d) Money from a grant under this section may be used for all expenses related to the training program, including curriculum, instructors, equipment, materials, and leasing and improving space for use by the pilot program.

(e) No later than January 15, 2022, and by January 15 of 2023 deleted text begin and deleted text end new text begin , new text end 2024 new text begin , and 2025 new text end , Northgate Development, LLC, shall submit an annual report to the commissioner of employment and economic development that must include, at a minimum, information on:

(1) program expenditures, including but not limited to amounts spent on curriculum, instructors, equipment, materials, and leasing and improving space for use by the program;

(2) other public or private funding sources, including in-kind donations, supporting the pilot program;

(3) the number of program participants;

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

(5) the number of program participants placed in a postsecondary program, industry certification program, or registered apprenticeship program under Minnesota Statutes, chapter 178.

Sec. 30.

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

Sec. 24.

FORGIVABLE LOAN PROGRAM FOR REMOTE RECREATIONAL BUSINESSES.

Subdivision 1.

Establishment.

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

Subd. 2.

Definition.

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

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

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

(3) only accessible by land via Canada.

Subd. 3.

Eligibility.

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

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

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

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

Subd. 4.

Application.

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

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

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

Subd. 5.

Maximum loan amount.

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

Subd. 6.

Forgiveness.

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

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

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

Subd. 7.

Report to legislature.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

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

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Reimbursement grant program established. new text end

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

new text begin Subd. 3. new text end

new text begin Application. new text end

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

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

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

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

new text begin Subd. 4. new text end

new text begin Reimbursement awards. new text end

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

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

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

new text begin Subd. 5. new text end

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

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

new text begin Subd. 6. new text end

new text begin Technical assistance and consultation. new text end

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

new text begin Subd. 7. new text end

new text begin Administration and marketing costs. new text end

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

new text begin Subd. 8. new text end

new text begin Notification. new text end

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

new text begin Subd. 9. new text end

new text begin Reports to the legislature. new text end

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

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

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

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

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

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

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

new text begin Subd. 10. new text end

new text begin Expiration. new text end

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

Sec. 32.

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

new text begin Subdivision 1. new text end

new text begin Relief program established. new text end

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

new text begin Subd. 2. new text end

new text begin Available relief. new text end

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

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

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

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

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

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

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

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

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

new text begin Subd. 4. new text end

new text begin Monitoring. new text end

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

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

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

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

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

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

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

new text begin Subd. 5. new text end

new text begin Business subsidy requirements. new text end

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

new text begin Subd. 6. new text end

new text begin Administrative costs. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

new text begin COMMUNITY WEALTH-BUILDING GRANT PROGRAM PILOT PROJECT. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Establishment. new text end

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

new text begin Subd. 3. new text end

new text begin Administration. new text end

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

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

new text begin Subd. 4. new text end

new text begin Loans to community businesses. new text end

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

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

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

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

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

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

new text begin (5) 50 percent of all repayments of principal on a loan under the program shall be used to fund additional lending. The partner organization may retain the remainder of loan repayments to service loans and provide further technical assistance; new text end

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

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

new text begin Subd. 5. new text end

new text begin Reports. new text end

new text begin (a) The partner organization shall submit a report to the commissioner by January 31 of 2024, 2025, and 2026. The report shall include: new text end

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

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

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

new text begin (b) By February 15 of 2024, 2025, and 2026, the commissioner shall submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over workforce and economic development on program outcomes, including copies of all reports received under paragraph (a). new text end

Sec. 34.

new text begin REPEALER. new text end

new text begin Laws 2019, First Special Session chapter 7, article 2, section 8, as amended by Laws 2021, First Special Session chapter 10, article 2, section 19, new text end new text begin is repealed. new text end

ARTICLE 16

EXPLORE MINNESOTA

Section 1.

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

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

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

Sec. 2.

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

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

Sec. 3.

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

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

Sec. 4.

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

116U.10 DEFINITIONS.

Subdivision 1.

Scope.

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

Subd. 2.

Director.

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

Subd. 3.

Office.

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

Sec. 5.

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

116U.15 MISSION.

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

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

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

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

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

Sec. 6.

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

116U.20 ORGANIZATION.

The director shall:

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

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

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

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

Sec. 7.

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 8.

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

new text begin (a) The director shall be advised by the Explore Minnesota for Business Council consisting of up to 14 voting members appointed by the governor for four-year terms, including: new text end

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

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

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

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

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

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

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

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

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

Sec. 9.

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

116U.30 DUTIES OF DIRECTOR.

(a) The director shall:

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

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

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

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

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

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

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

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

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

(b) The director may:

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

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

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

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

(5) make grants;

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

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

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

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

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

Sec. 10.

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

116U.35 PROMOTIONAL EXPENSES.

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

ARTICLE 17

CAPITOL AREA

Section 1.

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

new text begin Subdivision 1. new text end

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Terms; compensation. new text end

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

new text begin Subd. 3. new text end

new text begin Administrative support. new text end

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

new text begin Subd. 4. new text end

new text begin Duties; report. new text end

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

new text begin Subd. 5. new text end

new text begin Expiration. new text end

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

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

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

Sec. 2.

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

new text begin Subdivision 1. new text end

new text begin Account established; appropriation. new text end

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

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

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

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

ARTICLE 18

PROMISE ACT

Section 1.

new text begin TITLE. new text end

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

Sec. 2.

new text begin PROMISE GRANT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Establishment. new text end

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

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

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

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

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

new text begin Subd. 4. new text end

new text begin Grants to businesses. new text end

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

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

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

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

new text begin (3) have a gross annual revenue of $750,000 or less based on 2021 taxes. new text end

new text begin (c) Preference shall be given to businesses that did not receive previous assistance of more than $10,000 cumulatively from the state under: new text end

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

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

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

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

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

new text begin (e) Grants under this subdivision must not exceed: new text end

new text begin (1) $10,000 for businesses with a gross revenue in the prior year of $100,000 or less; new text end

new text begin (2) $25,000 for businesses with a gross revenue in the prior year of more than $100,000 but no more than $350,000; and new text end

new text begin (3) $50,000 for businesses with a gross revenue in the prior year of more than $350,000 but no more than $750,000. new text end

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

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

new text begin Subd. 5. new text end

new text begin Grant requirements. new text end

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

new text begin Subd. 6. new text end

new text begin Reports. new text end

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

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

new text begin Subd. 7. new text end

new text begin Expiration. new text end

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

Sec. 3.

new text begin PROMISE LOAN PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

new text begin (1) business; new text end

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

new text begin (3) developer that is seeking funding to complete an eligible project. Eligible recipient does not include a partner organization or a local unit of government. new text end

new text begin Eligible recipients must: (i) have primary operations located in the state of Minnesota; (ii) have gross annual revenue of less than $1,000,000 based on 2021 taxes; and (iii) be located in a community that has been adversely affected by structural racial discrimination, civil unrest, lack of access to capital, a loss of population or an aging population, or a lack of regional economic diversification. new text end

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

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

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

new text begin Subd. 2. new text end

new text begin Establishment. new text end

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

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

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

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

new text begin (c) Any funds from the original appropriation that remain unspent by partner organizations by June 30, 2027, must be returned to the commissioner and canceled back to the general fund. new text end

new text begin Subd. 4. new text end

new text begin Loans to eligible recipients. new text end

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

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

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

new text begin (3) not charge an interest rate of more than three percent. new text end

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

new text begin (c) All payments of interest on a loan under this section are the property of the partner organization and shall be used for its administrative and operating expenses under the program. new text end

new text begin (d) A partner organization may: new text end

new text begin (1) charge a loan origination fee of no more than one percent per loan; and new text end

new text begin (2) charge a monthly fee in lieu of interest. new text end

new text begin Subd. 5. new text end

new text begin Revolving loan fund. new text end

new text begin Partner organizations that receive grants from the commissioner under the program must establish a commissioner-certified revolving loan fund for the purpose of making eligible loans. All loan payments shall be deposited in the partner organization's revolving loan fund. new text end

new text begin Subd. 6. new text end

new text begin Preference. new text end

new text begin (a) Priority shall be given to those eligible recipients that have not received more than $10,000 cumulatively from a grant under a Main Street COVID-19 relief grant program or a loan from the Main Street Economic Revitalization Loan Program. new text end

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

new text begin Subd. 7. new text end

new text begin Oversight. new text end

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

new text begin Subd. 8. new text end

new text begin Reports. new text end

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

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

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin This section expires December 31, 2033. new text end

ARTICLE 19

APPROPRIATIONS; LABOR

Section 1. new text begin APPROPRIATIONS. new text end

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

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

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

Sec. 2. new text begin DEPARTMENT OF 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 47,710,000 new text end

new text begin $ new text end

new text begin 44,044,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 7,200,000 new text end	new text begin 4,889,000 new text end
new text begin Workers' Compensation new text end	new text begin 30,599,000 new text end	new text begin 32,390,000 new text end
new text begin Workforce Development new text end	new text begin 9,911,000 new text end	new text begin 6,765,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. The general fund base for this appropriation is $4,936,000 in fiscal year 2026 and $4,958,000 in fiscal year 2027 and each year thereafter. The workers compensation fund base is $32,749,000 in fiscal year 2026 and $32,458,000 in fiscal year 2027 and each year thereafter. The workforce development fund base is $6,765,000 in fiscal year 2026 and each year thereafter. new text end

new text begin Subd. 2. new text end new text begin General Support new text end

new text begin 8,765,000 new text end

new text begin 9,106,000 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 6,520,000 new text end

new text begin 6,270,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,957,000 new text end	new text begin 4,635,000 new text end
new text begin Workforce Development new text end	new text begin 1,563,000 new text end	new text begin 1,635,000 new text end

new text begin The general fund base for this appropriation is $4,682,000 in fiscal year 2026 and $4,704,000 in fiscal year 2027 and each year thereafter. new text end

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

new text begin (b) $1,563,000 the first year and $1,635,000 the second year are from the workforce development fund for prevailing wage enforcement. new text end

new text begin (c) $134,000 the first year and $134,000 the second year are for outreach and enforcement efforts related to changes to the nursing mothers, lactating employees, and pregnancy accommodations law. new text end

new text begin (d) $661,000 the first year and $357,000 the second year are to perform work for the Nursing Home Workforce Standards Board. The base for this appropriation is $404,000 in fiscal year 2026 and $357,000 in fiscal year 2027. new text end

new text begin (e) $225,000 the first year and $169,000 the second year are for the purposes of the Safe Workplaces for Meat and Poultry Processing Workers Act. new text end

new text begin (f) $27,000 the first year is for the creation and distribution of a veterans' benefits and services poster under Minnesota Statutes, section 181.536. new text end

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

new text begin 15,190,000 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 8,644,000 new text end

new text begin 7,559,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 2,000,000 new text end	new text begin -0- new text end
new text begin Workers' Compensation new text end	new text begin 6,644,000 new text end	new text begin 7,559,000 new text end

new text begin The workers compensation fund base for this appropriation is $7,918,000 in fiscal year 2026 and $7,627,000 in fiscal year 2027 and each year thereafter. new text end

new text begin $2,000,000 the first year is for the ergonomics safety grant program. This appropriation is available until June 30, 2026. This is a onetime appropriation. new text end

new text begin Subd. 6. new text end new text begin Workforce Development Initiatives new text end

new text begin 2,359,000 new text end

new text begin 2,371,000 new text end

new text begin (a) This appropriation is from the workforce development fund. new text end

new text begin (b) $300,000 each year is from the workforce development fund for the pipeline program. new text end

new text begin (c) $200,000 each year is from the workforce development fund for identification of competency standards under Minnesota Statutes, section 175.45. new text end

new text begin (d) $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 (e) $359,000 the first year and $371,000 the second year are from the workforce development fund for administration of the youth skills training grants 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 243,000 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 5,989,000 new text end

new text begin 2,759,000 new text end

new text begin (a) This appropriation is from the workforce development fund. The base for this appropriation is $2,759,000 in fiscal year 2026 and each year thereafter. new text end

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

new text begin (c) $3,000,000 the first year is from the workforce development fund for grants to registered apprenticeship programs for clean economy occupations. Of this amount, up to five percent is for administration and monitoring of the program. This appropriation is onetime and available until June 30, 2026. Grants may be used to: new text end

new text begin (1) purchase equipment or training materials in clean technologies; new text end

new text begin (2) fund instructor professional development in clean technologies; new text end

new text begin (3) design and refine curriculum in clean technologies; and new text end

new text begin (4) train apprentices and upskill incumbent workers in clean technologies. new text end

new text begin (d) $300,000 the first year is from the workforce development fund for a grant to Independent School District No. 294, Houston, for the Minnesota Virtual Academy's career pathways program with Operating Engineers Local 49. This appropriation does not cancel and is available until June 30, 2025. The following requirements apply: new text end

new text begin (1) the career pathways program must encourage, support, and provide continuity for student participation in structured career pathways. The program may include up to five semesters of coursework and must lead to eligibility for the Operating Engineers Local 49 apprenticeship program. The career pathways program must provide outreach to and encourage participation in the program by students of color, Indigenous students, students from low-income families, students located throughout Minnesota, and underserved students; new text end

new text begin (2) the grant may be used to encourage and support student participation in the career pathways program through additional academic, counseling, and other support services provided by the student's enrolling school district. The Minnesota Virtual Academy may contract with a student's enrolling school district to provide these services; and new text end

new text begin (3) on January 15 of each year following the receipt of a grant, Independent School District No. 294, Houston, must submit a written report to the legislative committees having jurisdiction over education and workforce development. A grant award and report must be in accordance with the provisions of Minnesota Statutes, sections 3.195 and 127A.20. The report must describe students' experiences with the program; document the program's spending and the number of students participating in the program and entering into the apprenticeship program; include geographic and demographic information on the program participants; make recommendations to improve the support of career pathways programs statewide; and make recommendations to improve student participation in career pathways programs. new text end

new text begin (e) $225,000 the first year and $225,000 the second year are from the workforce development fund for grants to Building Strong Communities 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

Sec. 3. new text begin WORKERS' COMPENSATION COURT OF APPEALS new text end

new text begin $ new text end

new text begin 2,583,000 new text end

new text begin $ new text end

new text begin 2,563,000 new text end

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

Sec. 4. new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end

new text begin 3,707,000 new text end

new text begin $ new text end

new text begin 3,789,000 new text end

new text begin (a) $750,000 each year is for purposes of the Public Employment Relations Board under Minnesota Statutes, section 179A.041. new text end

new text begin (b) $68,000 each year is for grants to area labor management committees. Grants may be awarded for a 12-month period beginning July 1 each year. Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year. new text end

new text begin (c) $47,000 each year is for rulemaking, staffing, and other costs associated with peace officer grievance procedures. new text end

ARTICLE 20

APPROPRIATIONS; JOBS

Section 1. new text begin APPROPRIATIONS. new text end

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

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

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

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

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

new text begin $ new text end

new text begin 382,802,000 new text end

new text begin $ new text end

new text begin 310,131,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 352,525,000 new text end	new text begin 279,854,000 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 30,277,000 new text end	new text begin 30,277,000 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 195,061,000 new text end

new text begin 139,929,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 193,011,000 new text end	new text begin 137,879,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 1,350,000 new text end	new text begin 1,350,000 new text end

new text begin (a) $2,287,000 each year is for the greater Minnesota business development public infrastructure grant program under Minnesota Statutes, section 116J.431. This appropriation is available until June 30, 2027. new text end

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

new text begin (c) $2,500,000 each year is for Launch Minnesota. These are onetime appropriations. Of this amount: new text end

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

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

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

new text begin (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. new text end

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

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

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

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

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

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

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

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

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

new text begin (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. new text end

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

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

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (m) $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 (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. new text end

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

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

new text begin (o) $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 (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: new text end

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

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

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

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

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

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

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

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

new text begin (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. new text end

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

new text begin (z) $47,475,000 each year is for the PROMISE grant program. This is a onetime appropriation and is available until June 30, 2027. Of this amount: new text end

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

new text begin (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 new text end

new text begin (3) $39,500,000 each year is for grants to the Neighborhood Development Center. Of this amount, the following amounts are designated for the following areas: new text end

new text begin (i) $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; new text end

new text begin (ii) $13,500,000 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; and new text end

new text begin (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. new text end

new text begin (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: new text end

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

new text begin (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 new text end

new text begin (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: new text end

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

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

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

new text begin (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. new text end

new text begin (cc) $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 (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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: new text end

new text begin (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 new text end

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

new text begin (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: new text end

new text begin (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 new text end

new text begin (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. new text end

new text begin (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. new text end

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

new text begin (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 new text end

new text begin (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. new text end

new text begin Eligible uses of the money include but are not limited to: new text end

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

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

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

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

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

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

new text begin Money distributed to entrepreneurs may be loans, forgivable loans, and grants. Of this amount, up to five percent may be used for the WomenVenture's technical assistance and administrative costs. This is a onetime appropriation and is available until June 30, 2026. new text end

new text begin 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. new text end

new text begin (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. new text end

new text begin (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: new text end

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

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

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

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

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

new text begin (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: new text end

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

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

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

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

new text begin (5) $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 new text end

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

new text begin (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: new text end

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

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

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

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

new text begin (pp) $375,000 each year is for a grant to PFund Foundation to provide grants to LGBTQ+-owned small businesses and entrepreneurs. 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: new text end

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

new text begin (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. new text end

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

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

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

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

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

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

new text begin (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. new text end

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

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

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

new text begin (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. new text end

new text begin (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. new text end

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

new text begin (yy) $500,000 each 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. new text end

new text begin (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 end

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

new text begin 112,038,000 new text end

new text begin 104,499,000 new text end

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

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

new text begin (b) $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: new text end

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

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

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

new text begin The base for this appropriation is $1,275,000 in fiscal year 2026 and each year thereafter. 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) $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. new text end

new text begin (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: new text end

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

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

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

new text begin (4) remedial training leading to enrollment in employment training programs or services; new text end

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

new text begin (6) career and educational counseling; new text end

new text begin (7) work experience and internships; and new text end

new text begin (8) supportive services. new text end

new text begin (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: new text end

new text begin (1) employer engagement strategies to align employment opportunities for individuals exiting workforce development training programs. These strategies may include business recruitment, job opening development, employee recruitment, and job matching. Trade associations must utilize the state's labor exchange system; new text end

new text begin (2) diversity, inclusion, and retention training of their members to increase the business' understanding of welcoming and retaining a diverse workforce; and new text end

new text begin (3) industry-specific training. new text end

new text begin (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: new text end

new text begin (1) serve as the primary contact for businesses in that area; new text end

new text begin (2) actively engage employers by assisting with matching employers to job seekers by referring candidates, convening job fairs, and assisting with job announcements; and new text end

new text begin (3) work with the local area board and its partners to identify candidates for openings in small and midsize companies in the local area. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (o) $750,000 each year is for the Office of New Americans under Minnesota Statutes, section 116J.4231. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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: new text end

new text begin (1) $313,000 is to fund one year of free full-service programming for a new program in Waite Park that will employ part-time youth development staff and provide community volunteer opportunities for people of all ages. Career exploration and life skills programming will be a significant dimension of programming at this new site; and new text end

new text begin (2) $150,000 is for planning and design for a new multiuse facility for the Boys and Girls Club of Waite Park and other community partners, including the Waite Park Police Department and the Whitney Senior Center. new text end

new text begin (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. new text end

new text begin (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: new text end

new text begin (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 new text end

new text begin (2) $100,000 is to create the Owatonna Opportunity scholarship model for the Learn and Earn Initiative for students and employers. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (z) $600,000 each year is for a grant to East Side Neighborhood Services. This is a onetime appropriation of which: new text end

new text begin (1) $300,000 each year is for the senior community service employment program, which provides work readiness training to low-income adults ages 55 and older to provide ongoing support and mentoring services to the program participants as well as the transition period from subsidized wages to unsubsidized wages; and new text end

new text begin (2) $300,000 each year is for the nursing assistant plus program to serve the increased need for growth of medical talent pipelines through expansion of the existing program and development of in-house training. new text end

new text begin The amounts specified in clauses (1) and (2) may also be used to enhance employment programming for youth and young adults, ages 14 to 24, to introduce them to work culture, develop essential work readiness skills, and make career plans through paid internship experiences and work readiness training. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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: new text end

new text begin (1) organizational infrastructure improvements, including developing database management systems and financial systems, or other administrative needs that increase the organization's ability to access new funding sources; new text end

new text begin (2) organizational workforce development, including hiring culturally competent staff, training and skills development, and other methods of increasing staff capacity; or new text end

new text begin (3) creating or expanding partnerships with existing organizations that have specialized expertise in order to increase capacity of the grantee organization to improve services to the community. new text end

new text begin Of this amount, up to five percent may be used by Propel Nonprofits for administrative costs. This is a onetime appropriation. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (mm) $750,000 each year is for grants to the nonprofit Sanneh Foundation to fund out-of-school summer programs focused on mentoring and behavioral, social, and emotional learning interventions and enrichment activities directed toward low-income students of color. This is a onetime appropriation and available until June 30, 2026. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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: new text end

new text begin (1) $1,500,000 each year is for grants to 21 Days of Peace for social equity building and community engagement activities; and new text end

new text begin (2) $1,500,000 each year is for grants to A Mother's Love for community outreach, empowerment training, and employment and career exploration services. new text end

new text begin (tt) $750,000 each year is for a grant to Mind the G.A.P.P. (Gaining Assistance to Prosperity Program) to improve the quality of life of unemployed and underemployed individuals by improving their employment outcomes and developing individual earnings potential. This is a onetime appropriation. Any unencumbered balance remaining at the end of the first year does not cancel but is available in the second year. new text end

new text begin (uu) $550,000 each year is for a grant to the International Institute of Minnesota. Grant money must be used for workforce training for new Americans in industries in need of a trained workforce. This is a onetime appropriation. new text end

new text begin (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. new text end

new text begin (ww) $500,000 each year is for a grant to the American Indian Opportunities and Industrialization Center for workforce development programming, including reducing academic disparities for American Indian students and adults. This is a onetime appropriation. new text end

new text begin (xx) $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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin Abijahs on the Backside must report to the commissioner of employment and economic development and the chairs and ranking minority members of the legislative committees with jurisdiction over employment and economic development policy and finance on the equine experiential mental health therapy provided to first responders under this paragraph. The report must include an overview of the program's budget, a detailed explanation of program expenditures, the number of first responders served by the program, and a list and explanation of the services provided to and benefits received by program participants. An initial report is due by January 15, 2024, and a final report is due by January 15, 2026. This is a onetime appropriation. new text end

new text begin (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. new text end

new text begin (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 who live in a census tract that has a poverty rate of at least 20 percent as reported in the most recently completed decennial census published by the United States Bureau of the Census. Grant money may be used for program administration, training, training stipends, wages, and support services. This is a onetime appropriation. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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 statewide. Of these amounts, 50 percent is for subgrants to Ka Joog and 50 percent is for competitive subgrants to community organizations. This is a onetime appropriation. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin Better Futures Minnesota shall annually report to the commissioner on how the money was spent and what results were achieved. The report must include, at a minimum, information and data about the number of participants; participant homelessness, employment, recidivism, and child support compliance; and job skills training provided to program participants. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (sss) $270,000 each year is for a grant to the Stairstep Foundation for community-based workforce development efforts. This is a onetime appropriation. new text end

new text begin (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. new text end

new text begin (uuu) $150,000 each year is for prevailing wage staff under Minnesota Statutes, section 116J.871, subdivision 2. new text end

new text begin (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: new text end

new text begin (1) job readiness training for at-risk youth, including resume building, interview skills, and job search strategies; new text end

new text begin (2) on-the-job training opportunities with local businesses; new text end

new text begin (3) support services such as transportation assistance and child care to help youth attend job training programs; and new text end

new text begin (4) mentorship and networking opportunities to connect youth with professionals in the youth's desired fields. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (2) The program must: new text end

new text begin (i) enroll an initial cohort of ten to 20 black Minnesota resident students attending a baccalaureate degree-granting postsecondary institution in Minnesota full time; new text end

new text begin (ii) support each of the program's students with an academic scholarship in the amount of $4,000 per academic year; new text end

new text begin (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 new text end

new text begin (iv) provide the program's students free test preparation materials, academic support, and registration for the Law School Admission Test (LSAT) examination. new text end

new text begin (3) The Minnesota Association of Black Lawyers may use grant funds under clause (1) for costs related to: new text end

new text begin (i) student scholarships; new text end

new text begin (ii) academic events and programming, including food and transportation costs for students; new text end

new text begin (iii) LSAT preparation materials, courses, and registrations; and new text end

new text begin (iv) hiring staff for the program. new text end

new text begin (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). new text end

new text begin (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. new text end

new text begin (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 end

new text begin Subd. 4. new text end new text begin General Support Services new text end

new text begin 18,045,000 new text end

new text begin 8,045,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General Fund new text end	new text begin 17,950,000 new text end	new text begin 7,950,000 new text end
new text begin Workforce Development new text end	new text begin 95,000 new text end	new text begin 95,000 new text end

new text begin (a) $1,269,000 each year is for transfer to the Minnesota Housing Finance Agency for operating the Olmstead Compliance Office. new text end

new text begin (b) $10,000,000 the first year is for the workforce digital transformation projects. This appropriation is onetime and is available until June 30, 2027. new text end

new text begin Subd. 5. new text end new text begin Minnesota Trade Office new text end

new text begin $2,242,000 new text end

new text begin $2,242,000 new text end

new text begin (a) $300,000 each year is for the STEP grants in Minnesota Statutes, section 116J.979. 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 45,691,000 new text end

new text begin 45,691,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 37,861,000 new text end	new text begin 37,861,000 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) $14,300,000 each year is for the state's vocational rehabilitation program under Minnesota Statutes, chapter 268A. new text end

new text begin (b) $11,495,000 each year from the general fund and $6,830,000 each year from the workforce development fund are for extended employment services for persons with severe disabilities under Minnesota Statutes, section 268A.15. Of the amounts appropriated from the general fund, $4,500,000 each year is for maintaining prior rate increases to providers of extended employment services for persons with severe disabilities under Minnesota Statutes, section 268A.15. new text end

new text begin (c) $5,055,000 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. The base for this appropriation is $2,555,000 in fiscal year 2026 and each year thereafter. new text end

new text begin (d) $7,011,000 each year is for grants to centers for independent living under Minnesota Statutes, section 268A.11. This appropriation is available until June 30, 2027. The base for this appropriation is $3,011,000 in fiscal year 2026 and each year thereafter. new text end

new text begin (e) $1,000,000 each year is from the workforce development fund for grants under Minnesota Statutes, section 268A.16, for employment services for persons, including transition-age youth, who are deaf, deafblind, or hard-of-hearing. If the amount in the first year is insufficient, the amount in the second year is available in the first year. new text end

new text begin Subd. 7. new text end new text begin Services for the Blind new text end

new text begin 10,425,000 new text end

new text begin 10,425,000 new text end

new text begin (a) $500,000 each year is for senior citizens who are becoming blind. At least one-half of the money for this purpose must be used to provide training services for seniors who are becoming blind. Training services must provide independent living skills to seniors who are becoming blind to allow them to continue to live independently in their homes. new text end

new text begin (b) $2,000,000 each year is for the employer reasonable accommodation fund. This is a onetime appropriation. new text end

Sec. 3. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end

new text begin 40,954,000 new text end

new text begin $ new text end

new text begin 21,369,000 new text end

new text begin (a) $500,000 each year must be matched from nonstate sources to develop maximum private sector involvement in tourism. Each $1 of state incentive must be matched with $6 of private sector money. "Matched" means revenue to the state or documented in-kind, soft match, or cash expenditures directly expended to support Explore Minnesota Tourism under Minnesota Statutes, section 116U.05. The incentive in fiscal year 2024 is based on fiscal year 2023 private sector contributions. The incentive in fiscal year 2025 is based on fiscal year 2024 private sector contributions. This incentive is ongoing. new text end

new text begin (b) $11,000,000 the first year is for the development of Explore Minnesota for Business under Minnesota Statutes, section 116U.07, to market the overall livability and economic opportunities of Minnesota. This is a onetime appropriation. new text end

new text begin (c) $5,500,000 each year is for the development of new initiatives for Explore Minnesota Tourism. If the amount in the first year is insufficient, the amount in the second year is available in the first year. This is a onetime appropriation. new text end

new text begin (d) $6,047,000 the first year and $600,000 the second year is for grants for infrastructure and associated costs for cultural festivals and events, including but not limited to buildout, permits, sanitation and maintenance services, transportation, staffing, event programming, public safety, facilities and equipment rentals, signage, and insurance. This is a onetime appropriation. Of this amount: new text end

new text begin (1) $1,847,000 the first year is for a grant to the Minneapolis Downtown Council for the Taste of Minnesota event; new text end

new text begin (2) $1,200,000 the first year is for a grant to the Stairstep Foundation for African American cultural festivals and events; new text end

new text begin (3) $1,200,000 the first year is for grants for Somali community and cultural festivals and events, including festivals and events in greater Minnesota, as follows: new text end

new text begin (i) $400,000 is for a grant to Ka Joog; new text end

new text begin (ii) $400,000 is for a grant to the Somali Museum of Minnesota; and new text end

new text begin (iii) $400,000 is for a grant to ESHARA; new text end

new text begin (4) $1,200,000 the first year is for a grant to West Side Boosters for Latino cultural festivals and events; and new text end

new text begin (5) $600,000 the first year and $600,000 the second year are for grants to the United Hmong Family, Inc. for the Hmong International Freedom Festival event. new text end

new text begin (e) Money for marketing grants is available either year of the biennium. Unexpended grant money from the first year is available in the second year. new text end

new text begin (f) The base for Explore Minnesota is $17,023,000 from the general fund in fiscal year 2026 and each year thereafter. new text end

Sec. 4.

Laws 2021, First Special Session chapter 4, article 2, section 2, subdivision 1, is amended to read:

Subdivision 1. Clean Energy Career Training Pilot Project

$2,500,000 the first year is for a grant to Northgate Development, LLC, for a pilot project under article 8, section 30, to provide training pathways into careers in the clean energy sector for students and young adults in underserved communities. Any unexpended funds remaining at the end of deleted text begin the biennium deleted text end new text begin fiscal year 2024 new text end cancel to the renewable development account. This is a onetime appropriation new text begin and is available until June 30, 2024 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2021. new text end

ARTICLE 21

MINNESOTA FORWARD

Section 1.

new text begin [116J.8752] MINNESOTA FORWARD FUND. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms in this subdivision have the meanings given. new text end

new text begin (b) "Agreement" or "business subsidy agreement" means a business subsidy agreement under section 116J.994 that must include but is not limited to the specification of the duration of the agreement, job goals and a timeline for achieving those goals over the duration of the agreement, construction and other investment goals and a timeline for achieving those goals over the duration of the agreement, and the value of benefits the firm may receive following achievement of capital investment and employment goals. new text end

new text begin (c) "Business" means an individual, corporation, partnership, limited liability company, association, or other business entity. new text end

new text begin (d) "Capital investment" means money that is expended for the purpose of building or improving real fixed property where employees are or will be employed, equipment and machinery in the building, and operating expenses related to the building. new text end

new text begin (e) "Commissioner" means the commissioner of employment and economic development. new text end

new text begin (f) "Fund" means the Minnesota forward fund account. new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin 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, develop properties for business use, and leverage to meet matching requirements of federal funding for resiliency in economic security and economic enhancement opportunities that provide the public high-quality employment opportunities. new text end

new text begin Subd. 3. new text end

new text begin Minnesota forward fund account. new text end

new text begin (a) The Minnesota forward fund account is created as a separate account in the treasury. Except as otherwise appropriated in law, money in the account is appropriated to the commissioner of employment and economic development for the purposes of this section. All money earned by the account, loan repayments of principal, and interest must be credited to the account and remain available until expended. new text end

new text begin (b) The commissioner shall use the fund to: new text end

new text begin (1) create and retain permanent private-sector jobs in order to create above-average economic growth consistent with environmental protection; new text end

new text begin (2) stimulate or leverage private investment to ensure economic renewal and competitiveness; new text end

new text begin (3) increase the local tax base, based on demonstrated measurable outcomes, to guarantee a diversified industry mix; new text end

new text begin (4) improve the quality of existing jobs, based on increases in wages or improvements in the job duties, training, or education associated with those jobs; new text end

new text begin (5) improve employment and economic opportunity for residents in the region to create a reasonable standard of living, consistent with federal and state guidelines on low- to moderate-income persons; new text end

new text begin (6) stimulate productivity growth through improved manufacturing or new technologies; and new text end

new text begin (7) match or leverage private or public funding to increase investment and opportunity in the state. new text end

new text begin Subd. 4. new text end

new text begin Use of fund. new text end

new text begin (a) The commissioner may use money in the Minnesota forward fund account to make grants and loans to businesses that are making large private capital investments in existing and new industries. The commissioner may also use money in the fund to make grants to communities and higher education institutions to support such capital investments and related activities to support the industries. Money may be used to address capital needs of businesses for machinery and equipment purchases; building construction and remodeling; land development; water and sewer lines, roads, rail lines, and natural gas and electric infrastructure; and working capital. Money in the fund may also be used for administration and monitoring of the program and to pay for the costs of carrying out the commissioner's due diligence duties under this section. new text end

new text begin (b) The commissioner may use money in the fund to make grants to a municipality or local unit of government for public and private infrastructure needed to support an eligible project under this section. Grant money may be used by the municipality or local unit of government to predesign, design, construct, and equip roads and rail lines; acquire and prepare land for development; and, in cooperation with municipal utilities, to predesign, design, construct, and equip natural gas pipelines, electric infrastructure, water supply systems, and wastewater collection and treatment systems. The maximum grant award per local unit of government under this section is $7,500,000 or no more than 50 percent of the total infrastructure project. new text end

new text begin Subd. 5. new text end

new text begin Grant limits. new text end

new text begin Individual business expansion projects are limited to no more than $15,000,000 in grants or loans combined. The commissioner shall not be precluded from using other funding sources from the Department of Employment and Economic Development to facilitate a project. Total funding per business under this section shall not exceed $15,000,000, of which no more than $10,000,000 may be grants. Grants under this subdivision are available until expended. new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin (a) Eligible applicants for the state-funded portion of the fund also include development authorities as defined in section 116J.552, subdivision 4, provided that the governing body of the municipality approves, by resolution, the application of the development authority. Institutions of higher education also constitute eligible applicants for the purpose of developing and deploying workforce training programs and for developing and deploying research and development partnerships for projects eligible under this section. new text end

new text begin (b) The business, municipality, or local unit of government must request and submit an application to the commissioner. Applications must be in the form and procedure specified by the commissioner. new text end

new text begin (c) The commissioner must conduct due diligence, including contracting with professionals as needed to assist in the due diligence. new text end

new text begin (d) Notwithstanding any other law to the contrary, grant and loan agreements through the Minnesota forward fund account may exceed five years but not more than ten years. new text end

new text begin Subd. 7. new text end

new text begin Requirements for fund disbursements. new text end

new text begin Disbursements of loan funds pursuant to a commitment may not be made until: new text end

new text begin (1) commitments for the remainder of a project's funding are made that are satisfactory to the commissioner and disbursements made from the other commitments are sufficient to protect the interests of the state in its grant or loan; new text end

new text begin (2) performance requirements are met, if any; new text end

new text begin (3) the municipality or local unit of government in which the project will be located has passed a resolution of support for the project and submitted this resolution of support to the department; and new text end

new text begin (4) all of a project's funding is satisfactory to the commissioner and disbursements made from other commitments are sufficient to protect the interests of the state. new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin The municipality, local unit of government, or business must report to the commissioner on the business performance using the forms developed by the commissioner. new text end

new text begin Subd. 9. new text end

new text begin Reporting. new text end

new text begin The commissioner shall provide the Legislative Advisory Commission and the ranking members of the committees with jurisdiction over economic development with an annual report on all projects that have been approved by February 15 of each year until this section is repealed or the funding has been exhausted. new text end

Sec. 2.

new text begin [216C.441] MINNESOTA CLIMATE INNOVATION FINANCE AUTHORITY. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin (a) There is created a public body corporate and politic to be known as the "Minnesota Climate Innovation Finance Authority," whose purpose is to accelerate the deployment of clean energy projects, greenhouse gas emissions reduction projects, and other qualified projects through the strategic deployment of public funds in the form of grants, loans, credit enhancements, and other financing mechanisms in order to leverage existing public and private sources of capital to reduce the upfront and total cost of qualified projects and to overcome financial barriers to project adoption, especially in low-income communities. new text end

new text begin (b) The goals of the authority include but are not limited to: new text end

new text begin (1) reducing Minnesota's contributions to climate change by accelerating the deployment of clean energy projects; new text end

new text begin (2) ensuring that all Minnesotans share the benefits of clean and renewable energy and the opportunity to fully participate in the clean energy economy by promoting: new text end

new text begin (i) the creation of clean energy jobs for Minnesota workers, particularly in environmental justice communities and communities in which fossil fuel electric generating plants are retiring; and new text end

new text begin (ii) the principles of environmental justice in the authority's operations and funding decisions; and new text end

new text begin (3) maintaining energy reliability while reducing the economic burden of energy costs, especially on low-income households. new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Authority" means the Minnesota Climate Innovation Finance Authority. new text end

new text begin (c) "Board" means the Minnesota Climate Innovation Finance Authority's board of directors established in subdivision 10. new text end

new text begin (d) "Clean energy project" has the meaning given to "qualified project" in paragraph (n), clauses (1) to (7). new text end

new text begin (e) "Community navigator" means an organization that works to facilitate access to clean energy project financing by individuals and community groups. new text end

new text begin (f) "Credit enhancement" means a pool of capital set aside to cover potential losses on loans and other investments made by financing entities, including a pool for multistate projects provided that benefits to Minnesota outweigh any contribution from the authority at least two to one. Credit enhancement includes but is not limited to loan loss reserves and loan guarantees. new text end

new text begin (g) "Energy storage system" has the meaning given in section 216B.2422, subdivision 1, paragraph (f). new text end

new text begin (h) "Environmental justice" means that: new text end

new text begin (1) communities of color, Indigenous communities, and low-income communities have a healthy environment and are treated fairly when environmental statutes, rules, and policies are developed, adopted, implemented, and enforced; and new text end

new text begin (2) in all decisions that have the potential to affect the environment of an environmental justice community or the public health of an environmental justice community's residents, due consideration is given to the history of the area's and the area's residents' cumulative exposure to pollutants and to any current socioeconomic conditions that increase the physical sensitivity of the area's residents to additional exposure to pollutants. new text end

new text begin (i) "Environmental justice community" means a community in Minnesota that: new text end

new text begin (1) is defined as a disadvantaged community by the federal source of funding accessed by the authority under this act; or new text end

new text begin (2) based on the most recent data published by the United States Census Bureau, meets one or more of the following criteria: new text end

new text begin (i) 40 percent or more of the community's total population is nonwhite; new text end

new text begin (ii) 35 percent or more of households in the community have an income that is at or below 200 percent of the federal poverty level; new text end

new text begin (iii) 40 percent or more of the community's residents over the age of five have limited English proficiency; or new text end

new text begin (iv) the community is located within Indian country, as defined in United States Code, title 18, section 1151. new text end

new text begin (j) "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by anthropogenic sources. new text end

new text begin (k) "Loan loss reserve" means a pool of capital set aside to reimburse a private lender if a customer defaults on a loan, up to an agreed-upon percentage of loans originated by the private lender. new text end

new text begin (l) "Microgrid system" means an electrical grid that: new text end

new text begin (1) serves a discrete geographical area from distributed energy resources; and new text end

new text begin (2) can operate independently from the central electric grid on a temporary basis. new text end

new text begin (m) "Project labor agreement" means a prehire collective bargaining agreement with a council of building and construction trades labor organizations (1) prohibiting strikes, lockouts, and similar disruptions, and (2) providing for a binding procedure to resolve labor disputes on the project. new text end

new text begin (n) "Qualified project" means a project, technology, product, service, or measure promoting energy efficiency, clean energy, electrification, or water conservation and quality that: new text end

new text begin (1) substantially reduces greenhouse gas emissions; new text end

new text begin (2) reduces energy use without diminishing the level of service; new text end

new text begin (3) increases the deployment of renewable energy projects, energy storage systems, district heating, smart grid technologies, or microgrid systems; new text end

new text begin (4) replaces existing fossil-fuel-based technology with an end-use electric technology; new text end

new text begin (5) supports the development and deployment of electric vehicle charging stations and associated infrastructure, electric buses, and electric fleet vehicles; new text end

new text begin (6) reduces water use or protects, restores, or preserves the quality of surface waters; or new text end

new text begin (7) incentivizes customers to shift demand in response to changes in the price of electricity or when system reliability is not jeopardized. new text end

new text begin (o) "Renewable energy" has the meaning given in section 216B.1691, subdivision 1, paragraph (c), clauses (1), (2), and (4), and includes fuel cells generated from renewable energy. new text end

new text begin (p) "Securitization" means the conversion of an asset composed of individual loans into marketable securities. new text end

new text begin (q) "Smart grid" means a digital technology that: new text end

new text begin (1) allows for two-way communication between a utility and the utility's customers; and new text end

new text begin (2) enables the utility to control power flow and load in real time. new text end

new text begin Subd. 3. new text end

new text begin General powers. new text end

new text begin (a) For the purpose of exercising the specific powers granted in this section, the authority has the general powers granted in this subdivision. new text end

new text begin (b) The authority may: new text end

new text begin (1) hire an executive director and staff to conduct the authority's operations; new text end

new text begin (2) sue and be sued; new text end

new text begin (3) have a seal and alter the seal; new text end

new text begin (4) acquire, hold, lease, manage, and dispose of real or personal property for the authority's corporate purposes; new text end

new text begin (5) enter into agreements, including cooperative financing agreements, contracts, or other transactions, with a Tribal government, any federal or state agency, county, local unit of government, regional development commission, person, domestic or foreign partnership, corporation, association, or organization; new text end

new text begin (6) acquire by purchase real property, or an interest therein, in the authority's own name where acquisition is necessary or appropriate; new text end

new text begin (7) provide general technical and consultative services related to the authority's purpose; new text end

new text begin (8) promote research and development in matters related to the authority's purpose; new text end

new text begin (9) conduct market analysis to determine where the market is underserved; new text end

new text begin (10) analyze greenhouse gas emissions reduction project financing needs in the state and recommend measures to alleviate any shortage of financing capacity; new text end

new text begin (11) contract with any governmental or private agency or organization, legal counsel, financial advisor, investment banker, or others to assist in the exercise of the authority's powers; new text end

new text begin (12) enter into agreements with qualified lenders or others insuring or guaranteeing to the state the payment of qualified loans or other financing instruments; and new text end

new text begin (13) accept on behalf of the state any gift, grant, or interest in money or personal property tendered to the state for any purpose pertaining to the authority's activities. new text end

new text begin Subd. 4. new text end

new text begin Authority duties. new text end

new text begin (a) The authority must: new text end

new text begin (1) serve as a financial resource to reduce the upfront and total costs of implementing qualified projects; new text end

new text begin (2) ensure that all financed projects reduce greenhouse gas emissions; new text end

new text begin (3) ensure that financing terms and conditions offered are well-suited to qualified projects; new text end

new text begin (4) strategically prioritize the use of the authority's funds to leverage private investment in qualified projects, with the aim of achieving a high ratio of private to public money invested through funding mechanisms that support, enhance, and complement private lending and investment; new text end

new text begin (5) coordinate with existing federal, state, local, utility, and other programs to ensure that the authority's resources are being used most effectively to add to and complement those programs; new text end

new text begin (6) stimulate demand for qualified projects by: new text end

new text begin (i) contracting with the department to provide, including through subcontracts with community navigators, information to project participants about federal, state, local, utility, and other authority financial assistance for qualifying projects, and technical information on energy conservation and renewable energy measures; new text end

new text begin (ii) forming partnerships with contractors and informing contractors about the authority's financing programs; new text end

new text begin (iii) developing innovative marketing strategies to stimulate project owner interest, especially in underserved communities; and new text end

new text begin (iv) incentivizing financing entities to increase activity in underserved markets; new text end

new text begin (7) finance projects in all regions of the state; new text end

new text begin (8) develop participant eligibility standards and other terms and conditions for financial support provided by the authority; new text end

new text begin (9) develop and administer: new text end

new text begin (i) policies to collect reasonable fees for authority services; and new text end

new text begin (ii) risk management activities to support ongoing authority activities; new text end

new text begin (10) develop consumer protection standards governing the authority's investments to ensure that financial support is provided responsibly and transparently and is in the financial interest of participating project owners; new text end

new text begin (11) develop methods to accurately measure the impact of the authority's activities, particularly on low-income communities and on greenhouse gas emissions reductions; new text end

new text begin (12) hire an executive director and sufficient staff with the appropriate skills and qualifications to carry out the authority's programs, making an affirmative effort to recruit and hire a director and staff who are from, or share the interests of, the communities the authority must serve; new text end

new text begin (13) apply for, either as a direct or subgrantee applicant, and accept Greenhouse Gas Reduction Fund grants authorized by the federal Clean Air Act, United States Code, title 42, section 7434, paragraph (a), clauses (1), (2), and (3). Until the Climate Innovation Finance Authority is established, the commissioner shall apply for and receive funding through Public Law 117-169 in order to leverage state investment, on behalf of the authority. To the extent practicable, applications for these funds by or on behalf of the authority should be made in coordination with other Minnesota applicants; new text end

new text begin (14) acting under its powers as a state energy financing institution under United States Code, title 42, section 16511, collaborate with the United States Department of Energy Loan Programs Office to ensure that authorities made available under the Inflation Reduction Act of 2022, Public Law 117-169, maximally benefit Minnesotans. Until the Climate Innovation Finance Authority is established, the commissioner may engage with the United States Department of Energy Loan Progams Office on behalf of the authority; and new text end

new text begin (15) ensure that authority contracts with all third-party administrators, contractors, and subcontractors contain required covenants, representations, and warranties specifying that contracted third parties are agents of the authority and that all acts of contracted third parties are considered acts of the authority, provided that the act is within the contracted scope of work. new text end

new text begin (b) The authority may: new text end

new text begin (1) employ credit enhancement mechanisms that reduce financial risk for financing entities by providing assurance that a limited portion of a loan or other financial instrument is assumed by the authority via a loan loss reserve, loan guarantee, or other mechanism; new text end

new text begin (2) co-invest in a qualified project by providing senior or subordinated debt, equity, or other mechanisms in conjunction with other investment, co-lending, or financing; new text end

new text begin (3) aggregate small and geographically dispersed qualified projects in order to diversify risk or secure additional private investment through securitization or similar resale of the authority's interest in a completed qualified project; new text end

new text begin (4) expend up to 25 percent of funds appropriated to the authority for start-up purposes, which may be used for financing programs and project investments authorized under this section, prior to adoption of the strategic plan required under subdivision 7 and the investment strategy under subdivision 8; and new text end

new text begin (5) require a specific project to agree to implement a project labor agreement as a condition of receiving financing from the authority. new text end

new text begin Subd. 5. new text end

new text begin Limitations. new text end

new text begin The authority must not provide loans to a single entity in an amount less than $250,000. new text end

new text begin Subd. 6. new text end

new text begin Authority lending practices; labor and consumer protection standards. new text end

new text begin (a) In determining the projects in which the authority will participate, the authority must give preference to projects that: new text end

new text begin (1) maximize the creation of high-quality employment and apprenticeship opportunities for local workers, consistent with the public interest, especially workers from environmental justice communities, labor organizations, and Minnesota communities hosting retired or retiring electric generation facilities, including workers previously employed at retiring facilities; new text end

new text begin (2) utilize energy technologies produced domestically that received an advanced manufacturing tax credit under section 45X of the Internal Revenue Code, as allowed under the federal Inflation Reduction Act of 2022, Public Law 117-169; new text end

new text begin (3) certify, for all contractors and subcontractors, that the rights of workers to organize and unionize are recognized; and new text end

new text begin (4) agree to implement a project labor agreement. new text end

new text begin (b) The authority must require, for all projects for which the authority provides financing, that: new text end

new text begin (1) if the budget is $100,000 or more, all contractors and subcontractors: new text end

new text begin (i) must pay no less than the prevailing wage rate, as defined in section 177.42, subdivision 6; and new text end

new text begin (ii) are subject to the requirements and enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.43, and 177.45, including the posting of prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay for all trades on the project in at least one conspicuous location at the project site; new text end

new text begin (2) financing is not offered without first ensuring that the participants meet the authority's underwriting criteria; and new text end

new text begin (3) any loan made to a homeowner for a project on the homeowner's residence complies with section 47.59 and the following federal laws: new text end

new text begin (i) the Truth in Lending Act, United States Code, title 15, section 1601 et seq.; new text end

new text begin (ii) the Fair Credit Reporting Act, United States Code, title 15, section 1681; new text end

new text begin (iii) the Equal Credit Opportunity Act, United States Code, title 15, section 1691 et seq.; and new text end

new text begin (iv) the Fair Debt Collection Practices Act, United States Code, title 15, section 1692. new text end

new text begin (c) The authority and any third-party administrator, contractor, subcontractor, or agent that conducts lending, financing, investment, marketing, administration, servicing, or installation of measures in connection with a qualified project financed in whole or in part with authority funds is subject to sections 325D.43 to 325D.48; 325F.67 to 325F.71; 325G.06 to 325G.14; 325G.29 to 325G.37; and 332.37. new text end

new text begin (d) For the purposes of this section, "local workers" means Minnesota residents who permanently reside within 150 miles of the location of a proposed project in which the authority is considering to participate. new text end

new text begin Subd. 7. new text end

new text begin Strategic plan. new text end

new text begin (a) By December 15, 2024, and each December 15 in even-numbered years thereafter, the authority must develop and adopt a strategic plan that prioritizes the authority's activities over the next two years. A strategic plan must: new text end

new text begin (1) identify targeted underserved markets for qualified projects in Minnesota; new text end

new text begin (2) develop specific programs to overcome market impediments through access to authority financing and technical assistance; and new text end

new text begin (3) develop outreach and marketing strategies designed to make potential project developers, participants, and communities aware of financing and technical assistance available from the authority, including the deployment of community navigators. new text end

new text begin (b) Elements of the strategic plan must be informed by the authority's analysis of the market for qualified projects, and by the authority's experience under the previous strategic plan, including the degree to which performance targets were or were not achieved by each financing program. In addition, the authority must actively seek input regarding activities that should be included in the strategic plan from stakeholders, environmental justice communities, the general public, and participants, including via meetings required under subdivision 9. new text end

new text begin (c) The authority must establish annual targets in a strategic plan for each financing program regarding the number of projects, level of authority investments, greenhouse gas emissions reductions, and installed generating capacity or energy savings the authority hopes to achieve, including separate targets for authority activities undertaken in environmental justice communities. new text end

new text begin (d) The authority's targets and strategies must be designed to ensure that no less than 40 percent of the direct benefits of authority activities flow to environmental justice communities as defined under subdivision 2, by the United States Department of Energy, or as modified by the department. new text end

new text begin Subd. 8. new text end

new text begin Investment strategy; content; process. new text end

new text begin (a) No later than December 15, 2024, and every four years thereafter, the authority must adopt a long-term investment strategy to ensure the authority's paramount goal to reduce greenhouse gas emissions is reflected in all of the authority's operations. The investment strategy must address: new text end

new text begin (1) the types of qualified projects the authority should focus on; new text end

new text begin (2) gaps in current qualified project financing that present the greatest opportunities for successful action by the authority; new text end

new text begin (3) how the authority can best position itself to maximize its impact without displacing, subsidizing, or assuming risk that should be shared with financing entities; new text end

new text begin (4) financing tools that will be most effective in achieving the authority's goals; new text end

new text begin (5) partnerships the authority should establish with other organizations to increase the likelihood of success; and new text end

new text begin (6) how values of equity, environmental justice, and geographic balance can be integrated into all investment operations of the authority. new text end

new text begin (b) In developing an investment strategy, the authority must consult, at a minimum, with similar organizations in other states, lending authorities, state agencies, utilities, environmental and energy policy nonprofits, labor organizations, and other organizations that can provide valuable advice on the authority's activities. new text end

new text begin (c) The long-term investment strategy must contain provisions ensuring that: new text end

new text begin (1) authority investments are not made solely to reduce private risk; and new text end

new text begin (2) private financing entities do not unilaterally control the terms of investments to which the authority is a party. new text end

new text begin (d) The board must submit a draft long-term investment strategy for comment to each of the groups and individuals the board consults under paragraph (b) and to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy finance and policy, and must post the draft strategy on the authority's website. The authority must accept written comments on the draft strategy for at least 30 days and must consider the comments in preparing the final long-term investment strategy. new text end

new text begin Subd. 9. new text end

new text begin Public communications and outreach. new text end

new text begin The authority must: new text end

new text begin (1) maintain a public website that provides information about the authority's operations, current financing programs, and practices, including rates, terms, and conditions; the number and amount of investments by project type; the number of jobs created; the financing application process; and other information; new text end

new text begin (2) periodically issue an electronic newsletter to stakeholders and the public containing information on the authority's products, programs, and services and key authority events and decisions; and new text end

new text begin (3) hold quarterly meetings accessible online to update the general public on the authority's activities, report progress being made in regard to the authority's strategic plan and long-term investment strategy, and invite audience questions regarding authority programs. new text end

new text begin Subd. 10. new text end

new text begin Board of directors. new text end

new text begin (a) The Minnesota Climate Innovation Finance Authority Board of Directors shall consist of the following 13 members: new text end

new text begin (1) the commissioner of commerce, or the commissioner's designee; new text end

new text begin (2) the commissioner of labor and industry, or the commissioner's designee; new text end

new text begin (3) the commissioner of the Minnesota Pollution Control Agency, or the commissioner's designee; new text end

new text begin (4) the commissioner of employment and economic development, or the commissioner's designee; new text end

new text begin (5) the commissioner of the Minnesota Housing Finance Agency, or the commissioner's designee; new text end

new text begin (6) the chair of the Minnesota Indian Affairs Council, or the chair's designee; and new text end

new text begin (7) seven additional members appointed by the governor, as follows: new text end

new text begin (i) one member representing either a municipal electric utility or a cooperative electric association; new text end

new text begin (ii) one member, appointed after the governor consults with labor organizations in the state, must be a representative of a labor union with experience working on clean energy projects; new text end

new text begin (iii) one member with expertise in the impact of climate change on Minnesota communities, particularly low-income communities; new text end

new text begin (iv) one member with expertise in financing projects at a community bank, credit union, community development institution, or local government; new text end

new text begin (v) one member with expertise in sustainable development and energy conservation; new text end

new text begin (vi) one member with expertise in environmental justice; and new text end

new text begin (vii) one member with expertise in investment fund management or financing and deploying clean energy technologies. new text end

new text begin (b) At least two members appointed to the board must permanently reside outside the metropolitan area, as defined in section 473.121, subdivision 2. The board must collectively reflect the geographic and ethnic diversity of the state. new text end

new text begin (c) Board members appointed under paragraph (a), clause (6), shall serve a term of four years, except that the initial appointments made under clause (6), items (i) to (iii), shall be for two-year terms, and the initial appointments made under clause (6), items (iv) to (vi), shall be for three-year terms. new text end

new text begin (d) Members appointed to the board must: new text end

new text begin (1) provide evidence of a commitment to the authority's purposes and goals; and new text end

new text begin (2) not hold any personal or professional conflicts of interest related to the authority's activities, including with respect to the member's financial investments and employment or the financial investments and employment of the member's immediate family members. new text end

new text begin (e) The governor must make the appointments required under this section no later than October 1, 2023. new text end

new text begin (f) The initial meeting of the board of directors must be held no later than November 17, 2023. At the initial meeting, the board shall elect a chair and vice-chair by majority vote of the members present. new text end

new text begin (g) The authority shall contract with the department to provide administrative and technical services to the board and to prospective borrowers, especially those serving or located in environmental justice communities. new text end

new text begin (h) Compensation of board members, removal of members, and filling of vacancies are governed by section 15.0575. new text end

new text begin (i) Board members may be reappointed for up to two full terms. new text end

new text begin (j) A majority of board members, excluding vacancies, constitutes a quorum for the purpose of conducting business and exercising powers, and for all other purposes. Action may be taken by the authority upon a vote of a majority of the quorum present. new text end

new text begin (k) Board members and officers are not personally liable, either jointly or severally, for any debt or obligation created or incurred by the authority. new text end

new text begin Subd. 11. new text end

new text begin Account established. new text end

new text begin (a) The Minnesota climate innovation authority account is established as a separate account in the special revenue fund in the state treasury. The authority's board of directors shall credit to the account appropriations and transfers to the account. Earnings, including interest, dividends, and any other earnings arising from assets of the account, must be credited to the account. Money remaining in the account at the end of a fiscal year does not cancel to the general fund, but remains in the account until expended. The authority's board of directors shall manage the account. new text end

new text begin (b) Money in the account is appropriated to the board of directors of the Minnesota Climate Innovation Finance Authority for the purposes of this section and to reimburse the reasonable costs of the authority to administer this section. new text end

new text begin Subd. 12. new text end

new text begin Report; audit. new text end

new text begin Beginning February 1, 2024, the authority must annually submit a comprehensive report on the authority's activities during the previous year to the governor and the chairs and ranking minority members of the legislative committees with primary jurisdiction over energy policy. The report must contain, at a minimum, information on: new text end

new text begin (1) the amount of authority capital invested, by project type; new text end

new text begin (2) the amount of private and public capital leveraged by authority investments, by project type; new text end

new text begin (3) the number of qualified projects supported, by project type and location within Minnesota, including in environmental justice communities; new text end

new text begin (4) the estimated number of jobs created for local workers and nonlocal workers, the ratio of projects subject to and exempt from prevailing wage requirements under subdivision 6, paragraph (b), and tax revenue generated as a result of the authority's activities; new text end

new text begin (5) estimated reductions in greenhouse gas emissions resulting from the authority's activities; new text end

new text begin (6) the number of clean energy projects financed in low- and moderate-income households; new text end

new text begin (7) a narrative describing the progress made toward the authority's equity, social, and labor standards goals; and new text end

new text begin (8) a financial audit conducted by an independent party. 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. 3.

Laws 2023, chapter 24, section 2, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have the meanings given.

(b) "Competitive funds" means federal funds awarded to selected applicants based on the grantor's evaluation of the strength of an application measured against all other applications.

(c) "Disadvantaged community" has the meaning given by the federal agency disbursing federal funds.

(d) "Eligible entity" means an entity located in Minnesota that is eligible to receive federal funds, new text begin tax credits, loans, new text end or an entity that has at least one Minnesota-based partner, as determined by the grantor of the federal funds new text begin , tax credits, or loans new text end .

(e) "Federal funds" means federal formula or competitive funds available for award to applicants for energy projects under the Infrastructure Investment and Jobs Act, Public Law 117-58, or the Inflation Reduction Act of 2022, Public Law 117-169.

new text begin (f) "Loans" means federal loans from loan funds authorized or funded in the Inflation Reduction Act of 2022, Public Law 117-169. new text end

new text begin (g) "Tax credits" means federal tax credits authorized in the Inflation Reduction Act of 2022, Public Law 117-169. new text end

deleted text begin (f) deleted text end new text begin (h) new text end "Formula funds" means federal funds awarded to all eligible applicants on a noncompetitive basis.

deleted text begin (g) deleted text end new text begin (i) new text end "Match" means the amount of state money a successful grantee in Minnesota is required to contribute to a project as a condition of receiving federal funds.

deleted text begin (h) deleted text end new text begin (j) new text end "Political subdivision" has the meaning given in section 331A.01, subdivision 3.

deleted text begin (i) deleted text end new text begin (k) new text end "Project" means the activities proposed to be undertaken by an eligible entity awarded federal funds and are located in Minnesota or will directly benefit Minnesotans.

deleted text begin (j) deleted text end new text begin (l) new text end "Tribal government" has the meaning given in section 116J.64, subdivision 4.

Sec. 4.

Laws 2023, chapter 24, section 2, subdivision 2, is amended to read:

Subd. 2.

Establishment of account; eligible expenditures.

(a) A state competitiveness fund account is created in the special revenue fund of the state treasury. The commissioner must credit to the account appropriations and transfers to the account. Earnings, such as interest, dividends, and any other earnings arising from assets of the account, must be credited to the account. Money remaining in the account at the end of a fiscal year does not cancel to the general fund but remains available until June 30, 2034. The commissioner is the fiscal agent and must manage the account.

(b) Money in the account is appropriated to the commissioner and must be used to:

(1) pay all or any portion of the state match required as a condition of receiving federal funds, or to otherwise reduce the cost for projects that are awarded federal funds new text begin , as described under subdivision 3, paragraph (a) new text end ;

(2) award grants under subdivision 4 to obtain grant development assistance for eligible entities; deleted text begin and deleted text end

new text begin (3) award grants that reduce the cost for projects that are awarded federal loans within disadvantaged communities; new text end

new text begin (4) award grants that are additive to federal tax credits received by an eligible entity to further reduce the cost of the technologies and activities eligible for such federal tax credits in disadvantaged communities; and new text end

deleted text begin (3) deleted text end new text begin (5) new text end pay the reasonable costs incurred by the department to assist eligible entities to successfully compete for available federal funds new text begin and utilize available federal tax credits or loans 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.

Laws 2023, chapter 24, section 3, is amended to read:

Sec. 3.

APPROPRIATION.

(a) $115,000,000 in fiscal year 2023 is appropriated from the general fund to the commissioner of commerce for the purposes of Minnesota Statutes, section 216C.391. This is a onetime appropriation. Of this amount:

(1) $100,000,000 is for grant awards made under Minnesota Statutes, section 216C.391, subdivision 3, of which at least $75,000,000 is for grant awards of less than $1,000,000;

(2) $6,000,000 is for grant awards made under Minnesota Statutes, section 216C.391, subdivision 4;

(3) $750,000 is for the reports and audits under Minnesota Statutes, section 216C.391, subdivision 7;

(4) $1,500,000 is for information system development improvements necessary to carry out Minnesota Statutes, section 216C.391, and to improve digital access and reporting;

(5) $6,750,000 is for technical assistance to applicants and administration of Minnesota Statutes, section 216C.391, by the Department of Commerce; and

(6) the commissioner may transfer money from clause (2) to clause (1) if less than 75 percent of the money in clause (2) has been awarded by June 30, 2028.

new text begin (b) The commissioner, with approval from the commissioner of management and budget, may transfer money between appropriations established for paragraph (a), clause (1), and for money transferred under section 6, paragraph (c). This paragraph expires on June 30, 2028. new text end

deleted text begin (b) deleted text end new text begin (c) new text end To the extent that federal funds for energy projects under the Infrastructure Investment and Jobs Act, Public Law 117-58, or the Inflation Reduction Act of 2022, Public Law 117-169, become permanently unavailable to be matched with funds appropriated under this section new text begin or section 216C.391, subdivision 2 new text end , the commissioner of management and budget must certify the proportional amount of unencumbered funds remaining in the account established under Minnesota Statutes, section 216C.391, and those unencumbered funds cancel to the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 6.

new text begin TRANSFERS. new text end

new text begin (a) In the biennium ending on June 30, 2025, the commissioner of management and budget must transfer $400,000,000 from the general fund to the Minnesota forward fund account established in Minnesota Statutes, section 116J.8752, subdivision 2. The base for this transfer is $0. new text end

new text begin (b) In the biennium ending on June 30, 2025, the commissioner of management and budget shall transfer $25,000,000 from the general fund to the Minnesota climate innovation authority account established in Minnesota Statutes, section 216C.441, subdivision 11. The base for this transfer is $0. new text end

new text begin (c) In the biennium ending on June 30, 2025, the commissioner of management and budget must transfer $75,000,000 from the general fund to the state competitiveness fund account established in Minnesota Statutes, section 216C.391, subdivision 2. Notwithstanding Minnesota Statutes, section 216C.391, subdivision 2, the commissioner of commerce must use this transfer for grants to eligible entities for projects receiving federal loans or tax credits where the benefits are in disadvantaged communities. The base for this transfer is $0. Up to three percent of money transferred under this paragraph is for administrative costs. new text end

new text begin (d) In the biennium ending on June 30, 2027, the commissioners of management and budget, in consultation with the commissioners of employment and economic development and commerce, may transfer money between the Minnesota forward fund account, the Minnesota climate innovation authority account, and the state competitiveness fund account. The commissioner of management and budget must notify the Legislative Advisory Commission within 15 days of making transfers under this paragraph. new text end

Sec. 7.

new text begin APPROPRIATIONS. new text end

new text begin (a) $50,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund account to the commissioner of employment and economic development for providing businesses with matching funds required by federal programs. 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 June 30, 2027. Any funds that remain unspent are canceled to the general fund. new text end

new text begin (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 requirements of Minnesota Statutes, 116J.8752, subdivision 5. The commissioner may use up to two percent of this appropriation for administration. This is a onetime appropriation and is available until June 30, 2027. Any funds that remain unspent are canceled to the general fund. new text end

new text begin (c) $250,000,000 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 June 30, 2027. Any funds that remain unspent are canceled to the general fund. new text end

new text begin (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. new text end

new text begin (e) The commissioner may use the appropriation under paragraph (c) to award: new text end

new text begin (1) grants to institutions of higher education for developing and deploying training programs and to build pipelines to serve the needs of industry; and new text end

new text begin (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). new text end

new text begin (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. new text end

Presented to the governor May 23, 2023

Signed by the governor May 24, 2023, 9:01 a.m.