Minnesota Session Laws - 2025, 1st Special Session

CHAPTER 6--S.F.No. 17

An act

relating to state government; establishing a biennial budget for jobs, labor, and economic development; appropriating money for the Department of Employment and Economic Development, Department of Labor and Industry, Bureau of Mediation Services, Explore Minnesota, and Workers' Compensation Court of Appeals; modifying economic development policy; making labor and industry policy changes; transferring money; canceling and modifying prior appropriations; modifying fees; requiring reports;

amending Minnesota Statutes 2024, sections 116J.431, subdivision 2; 116J.659, subdivisions 4, 5; 116J.8733, subdivision 4; 116J.8752, subdivision 2; 116L.03, subdivision 2; 116L.04, subdivisions 1, 1a; 116L.05, subdivision 5; 116L.562, subdivisions 1, 3; 116L.665, subdivision 2; 116L.90; 116L.98, subdivisions 2, 3, 6; 116M.18, subdivision 3; 116U.05; 116U.06; 116U.15; 116U.30; 116U.35; 177.253, subdivision 1, by adding a subdivision; 177.254, subdivisions 1, 2, by adding a subdivision; 177.27, subdivision 5; 181.211, subdivisions 7, 8; 181.725, by adding a subdivision; 181.9447, subdivisions 2, 3, 4; 181.9448, subdivision 1; 248.07, subdivisions 7, 8; 268.184, subdivision 1; 268B.14, subdivision 7; 326B.0981, subdivision 4; 326B.103, by adding subdivisions; 326B.184, subdivisions 1a, 2; 326B.31, subdivision 29; 326B.33, subdivision 21; 326B.37, subdivisions 1, 2, 4, 5, 6, 8, 9, by adding a subdivision; 326B.43, by adding a subdivision; 326B.49, subdivisions 2, 3; 326B.986, subdivision 9; 327.31, subdivision 6; 327.32, subdivisions 1a, 1e, 7; 327.33, subdivisions 1, 2a, 2b, 2c, by adding subdivisions; 327B.04, subdivision 7a; 327B.041; 327B.05, subdivision 1; 469.54, subdivision 4; Laws 2023, chapter 53, article 15, section 33, subdivision 4, as amended; article 18, sections 2, subdivisions 1, 4; 3, subdivisions 1, 4, 5; article 20, section 2, subdivisions 2, as amended, 3, as amended; article 21, section 7, as amended; Laws 2023, chapter 64, article 15, section 30; Laws 2024, chapter 120, article 1, sections 2, subdivision 3; 4; Laws 2024, chapter 127, article 14, section 3; proposing coding for new law in Minnesota Statutes, chapters 116J; 326B; repealing Minnesota Statutes 2024, sections 116L.35; 116L.98, subdivision 7.

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

ARTICLE 1

APPROPRIATIONS; JOBS

Section 1. new text begin APPROPRIATIONS. new text end new text begin new text end

new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2026" and "2027" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is fiscal years 2026 and 2027. new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2025 regular or special legislative session, the appropriation must be given effect only once. new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 200,415,000 new text end

new text begin $ new text end

new text begin 156,201,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 92,602,000 new text end	new text begin 87,024,000 new text end
new text begin Family and Medical Benefit Insurance new text end	new text begin 40,544,000 new text end	new text begin 5,000,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 66,569,000 new text end	new text begin 63,477,000 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 50,693,000 new text end

new text begin 44,345,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 48,393,000 new text end	new text begin 42,045,000 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 1,600,000 new text end	new text begin 1,600,000 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, 2029. new text end

new text begin (b) $350,000 each year is for the administration of the Energy Transition Office under Minnesota Statutes, section 116J.5491. new text end

new text begin (c) $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 (d) $2,725,000 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 $1,725,000 in fiscal year 2028 and each year thereafter. new text end

new text begin (e) $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 June 30, 2029. The base for this appropriation is $1,022,000 in fiscal year 2028 and each year thereafter. new text end

new text begin (f) $700,000 each year is from the remediation fund for contaminated site cleanup and development grants under Minnesota Statutes, sections 116J.551 to 116J.558. This appropriation is available until June 30, 2029. new text end

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

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

new text begin (i) $710,000 the first year and $711,000 the second year are for the host community economic development program established in Minnesota Statutes, section 116J.548. The base for this appropriation is $875,000 in fiscal year 2028 and each year thereafter. new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin (m) $4,954,000 the first year and $4,955,000 the second year are 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 June 30, 2029. The base for this appropriation is $5,600,000 in fiscal year 2028 and each year thereafter. new text end

new text begin (n) $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 June 30, 2029. 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 (o) $1,246,000 each year is for the redevelopment program under Minnesota Statutes, sections 116J.575 and 116J.5761. new text end

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

new text begin (q) $4,195,000 each year is for the Minnesota job skills partnership program under Minnesota Statutes, sections 116L.01 to 116L.17. If the appropriation for either year is insufficient, the appropriation for the other year is available. This appropriation is available until June 30, 2029. new text end

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

new text begin (s) $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 (t) $750,000 each year is for the CanNavigate program established under Minnesota Statutes, section 116J.6595. Of this amount, up to four percent may be used for administrative purposes. Any unencumbered balances remaining in the first year do not cancel but are available for the second year. new text end

new text begin (u) $500,000 each year is for a grant to MNSBIR, Inc., for support of the small business research and development goals provided in Minnesota Statutes, section 3.222. This appropriation is onetime and is available until June 30, 2027. new text end

new text begin The purpose of the grant is to support moving scientific excellence and technological innovation from the lab to the market for startups and small businesses by securing federal research and development funding to build a strong innovation economy and stimulate the creation of novel products, services, and solutions; strengthening the role of startups and small businesses in meeting federal research and development needs; increasing the commercial application of federally supported research results; and developing and increasing the Minnesota workforce, especially by fostering and encouraging participation by small businesses owned by people who are Black, Indigenous, People of Color, and women. new text end

new text begin MNSBIR, Inc. shall use grant money to become the federal research and development dedicated resource for Minnesota small businesses to support research and commercialization of novel ideas, concepts, and projects to develop cutting-edge products and services for worldwide economic impact. Grant money shall be used to: new text end

new text begin (1) assist startups and small businesses in securing federal research and development funding including the small business innovation research and small business technology transfer programs; new text end

new text begin (2) support technology transfer and commercialization from the University of Minnesota, Mayo Clinic, and federal laboratories; new text end

new text begin (3) collaborate with corporate venture groups and large businesses nationally; new text end

new text begin (4) conduct statewide outreach, education, and training on federal rules, regulations, and requirements; new text end

new text begin (5) assist with scientific and technical writing; new text end

new text begin (6) help manage federal grants and contracts; and new text end

new text begin (7) support cost accounting and federal sole-source procurement opportunities. new text end

new text begin (v) $5,523,000 the first year is for the PROMISE grant program. This appropriation is available until June 30, 2029. Of this amount: new text end

new text begin (1) $1,105,000 the first year is for grants in equal amounts to each of the Minnesota Initiative Foundations to serve businesses in greater Minnesota. Of this amount, $88,000 is for grants to businesses with less than $100,000 in revenue the prior year; and new text end

new text begin (2) $4,418,000 the first 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) $1,105,000 the first year is for North Minneapolis' West Broadway, Camden, and other Northside neighborhoods. Of this amount, $88,000 is for grants to businesses with less than $100,000 in revenue in the prior year; new text end

new text begin (ii) $1,105,000 the first year is for South Minneapolis' Lake Street, 38th and Chicago, Franklin, Nicollet, and Riverside corridors. Of this amount, $88,000 is for grants to businesses with less than $100,000 in revenue in the prior year; new text end

new text begin (iii) $1,104,000 the first year is for St. Paul's University Avenue, Midway, Eastside, or other St. Paul neighborhoods. Of this amount, $88,000 is for grants to businesses with less than $100,000 in revenue in the prior year; and new text end

new text begin (iv) $1,104,000 the first year is for grants to businesses in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, excluding the cities of Minneapolis and St. Paul. new text end

new text begin The base for this appropriation is $1,402,000 in fiscal year 2028 and each year thereafter. Of this amount, $281,000 each year is for the purposes of clause (1); $1,121,000 each year is for the purposes of clause (2); $281,000 each year is for the purposes of clause (2), item (i); $280,000 each year is for the purposes of clause (2), item (ii); $280,000 each year is for the purposes of clause (2), item (iii); and $280,000 each year is for the purposes of clause (2), item (iv). new text end

new text begin (w) $500,000 each year is for a grant to the Neighborhood Development Center (NDC) to support small business programs, including training, lending, business services, and real estate initiatives. Money may be used to assist organizations outside of the seven-county metropolitan area with technical assistance and grants to help implement elements of NDC's small business support model; provide one-on-one technical assistance for entrepreneurs; and support the operations and marketing of a cybersecurity center. This is a onetime appropriation. Any unencumbered balance remaining at the end of the first year does not cancel and is available for use in the second year. new text end

new text begin (x) $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 (y) $200,000 the first year is for a grant to the African Development Center for capacity-building initiatives to support small business growth and sustainability. This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin (z) $250,000 each year is for a grant to Enterprise Minnesota, Inc. to directly invest in Minnesota manufacturers under the Made in Minnesota program under Minnesota Statutes, section 116O.115. This is a onetime appropriation. new text end

new text begin (aa) $250,000 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 250 or fewer full-time equivalent employees and for operations of Enterprise Minnesota. This is a onetime appropriation. No later than February 1, 2026, and February 1, 2027, 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 amount of money awarded during the past 12 months; new text end

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

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

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

new text begin (bb) $250,000 each year is for a grant to the Coalition of Asian American Leaders to support outreach, training, technical assistance, peer network development, and direct financial assistance targeted to Asian Minnesotan women entrepreneurs and Asian-owned businesses. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin (cc) $250,000 each year from the workforce development fund is for a grant to WomenVenture to support child care providers through business training and shared services programs and to create materials that may be used, at no cost to child care providers, 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. new text end

new text begin Of this amount, up to five percent may be used for WomenVenture's technical assistance and administrative costs. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin By December 15, 2028, 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 (dd) $250,000 each year is for a grant to the Latino Economic Development Center to assist, support, finance, and launch microentrepreneurs by delivering training, workshops, and one-on-one consultations to businesses; and 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. This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin (ee) $150,000 each year is for a grant to Isuroon for the following: new text end

new text begin (1) providing loans to microbusinesses to promote entrepreneurship and economic growth in underserved communities; new text end

new text begin (2) awarding grants to microbusinesses to support start-up costs, capacity building, and business sustainability; new text end

new text begin (3) delivering technical assistance and training to entrepreneurs, including support for business operations, financial management, and development strategies; and new text end

new text begin (4) establishing and operating a business incubator program to support microbusinesses with shared resources, mentorship, and access to professional networks. new text end

new text begin This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin Subd. 3. new text end new text begin Workforce Development Services new text end

new text begin 47,715,000 new text end

new text begin 44,623,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,742,000 new text end	new text begin 6,742,000 new text end
new text begin Workforce Development new text end	new text begin 40,973,000 new text end	new text begin 37,881,000 new text end

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

new text begin (b) $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 (c) $1,117,000 each year from the general fund and $8,033,000 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. The base for this appropriation is $2,546,000 from the general fund and $4,604,000 from the workforce development fund in fiscal year 2028 and each year thereafter. new text end

new text begin (d) $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 (e) $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 (f) $1,000,000 each year from the general fund and $750,000 each year from the workforce development fund are 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 paragraph must focus on low-income communities, young adults from families with a history of intergenerational poverty, and communities of color. Of this amount, up to five percent is for administration and monitoring of the program. The base for this appropriation is $1,000,000 from the general fund and $0 from the workforce development fund in fiscal year 2028 and each year thereafter. new text end

new text begin (g) $750,000 each year from the general fund and $4,348,000 each year from the workforce development fund are for the youth-at-work competitive grant program under Minnesota Statutes, section 116L.562. Of this amount, up to five percent is for administration and monitoring of the youth workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year. The base for this appropriation is $750,000 from the general fund and $3,348,000 from the workforce development fund in fiscal year 2028 and each year thereafter. new text end

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

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

new text begin (j) $25,000 each year is for a grant to the University of Minnesota Tourism Center for ongoing system maintenance, management, and content updates 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 grant provided under this paragraph is not subject to Minnesota Statutes, section 116L.98. By January 30 each year, the University of Minnesota Tourism Center must submit a report to the commissioner of employment and economic development and to the chairs and ranking minority members of the legislative committees with jurisdiction over workforce development and policy. The report must include an accurate and detailed account of the program, the program's outcomes, and the program's revenues and expenses, including the use of all state money appropriated in this paragraph. new text end

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

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

new text begin (m) $250,000 each year is for the CanTrain program established under Minnesota Statutes, section 116L.90. Of this amount, up to four percent may be used for administrative purposes. The base for this appropriation is $750,000 in fiscal year 2028 and each year thereafter. new text end

new text begin (n) $250,000 each year is for a grant to Comunidades Organizando el Poder y la Acción Latina (COPAL) for capacity building, career planning, GED attainment classes, educational resources and materials, health resources, training programs, and job navigation for adult individuals. Funds may also be used for programming, including but not limited to driver's license exams, certified nursing assistant (CNA) certification, computer classes, solar panel trainings, tax preparation trainings, and workshops for work readiness and finance. This is a onetime appropriation. new text end

new text begin (o) $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 (p) $150,000 each year from the workforce development fund is for a grant to All Square of Minnesota. The grant shall be used to support the operations of All Square's workforce development programs that operate in the cities of Minneapolis and St. Paul and correctional facilities in Shakopee, Faribault, Lino Lakes, Rush City, and Moose Lake to assist Minnesotans who are incarcerated, formerly incarcerated, or directly impacted by the existence of a criminal record in overcoming employment barriers that prevent economic and emotional freedom. Grant proceeds may be used for any or all of the following All Square programs: (1) the Restaurant and Food Truck Fellowship program; (2) the Prison to Law Pipeline program; or (3) the Legal Revolution Law Firm. This is a onetime appropriation. new text end

new text begin (q) $250,000 each year is for a grant to Al Maa'uun, previously known as the North at Work program, for a strategic intervention program designed to target and connect program participants to meaningful and sustainable living-wage employment for adult individuals. This is a onetime appropriation. new text end

new text begin (r) $400,000 each year from the workforce development fund is for a grant to Ujamaa Place to provide workforce development services targeted to the needs of African American men, including job training, employment preparation, internships, education, and vocational housing, as well as for organizational capacity building. This is a onetime appropriation. new text end

new text begin (s) $400,000 each year from the workforce development fund is for a grant to Hired to support their workforce development programming and services for adult individuals. Grant proceeds may be used 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. Grant proceeds may also be used to create services for low-income Minnesotans designed to increase job retention and create a more stable workforce for employers by offering a continuum of employment coaching, navigation, and support services to economically disadvantaged employees. This is a onetime appropriation. new text end

new text begin (t) $500,000 each year from the workforce development fund is for a grant to the American Indian Opportunities and Industrialization Center for workforce development programming. This is a onetime appropriation. new text end

new text begin (u) $750,000 each year from the workforce development fund 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 reentry following confinement. This is a onetime appropriation. new text end

new text begin (v) $250,000 each year from the workforce development fund 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 (w) $250,000 each year from the workforce development fund 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 (x) $250,000 each year from the workforce development fund is for grants to the Hospitality Minnesota Education Foundation for the ProStart hospitality and tourism management program, a statewide initiative in high schools to address the critical workforce shortages in hospitality. Grant money must be used by the recipient to provide students culinary and management education curriculum, tools, skills, professional development opportunities within the hospitality industry, and scholarships. This is a onetime appropriation. new text end

new text begin (y) $875,000 each year from the workforce development fund 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 adult individuals. Funds 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 (z) $700,000 each year from the workforce development fund is for performance grants under Minnesota Statutes, section 116J.8747, to Twin Cities R!SE to provide training to adult individuals facing barriers to employment. This appropriation is onetime and available until June 30, 2028. new text end

new text begin (aa) $275,000 each year from the workforce development fund is for a grant to Workforce Development, Inc., of the Southeast Minnesota Workforce Development Area #8, to provide career planning, career pathway training and education, wraparound support services, and job skills advancement in high-demand careers to individuals with barriers to employment in Steele County, helping families build secure pathways out of poverty and addressing worker shortages in the Owatonna and Steele County area. Grant proceeds must support employer outreach services by providing solutions to workforce challenges and direct connections to workforce programming. Grant proceeds 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, incentive and training completion payments, 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. 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 By January 15 each year, Workforce Development, Inc. must report to the commissioner of employment and economic development and to the chairs and ranking minority members of the legislative committees with jurisdiction over economic development and workforce development regarding the uses of this grant, including any amounts used for administration of the grant. The report must also be filed with the Legislative Reference Library in compliance with Minnesota Statutes, section 3.195. new text end

new text begin (bb) $375,000 each year from the workforce development fund is for a grant to Project for Pride in Living for job training and workforce development services focusing on individuals who are unemployed or underemployed. This is a onetime appropriation. new text end

new text begin (cc) $125,000 each year from the workforce development fund is for a grant to Pillsbury United Communities to provide job training and workforce development services for individuals who are unemployed or underemployed. This is a onetime appropriation. new text end

new text begin (dd) $500,000 each year from the workforce development fund is for a grant to the International Institute of Minnesota. Grant funds 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 (ee) $175,000 each year from the workforce development fund is for the Minnesota Family Resiliency Partnership under Minnesota Statutes, section 116L.96. The commissioner, through the adult career pathways program, shall distribute the funds to existing nonprofit and state displaced homemaker programs. This is a onetime appropriation. new text end

new text begin (ff) $225,000 each year from the workforce development fund is for a grant to Emerge Community Development to support and reinforce critical workforce at the Emerge Career and Technical Center, Cedar Riverside Opportunity Center, and Emerge Second Chance programs in the city of Minneapolis. This is a onetime appropriation. new text end

new text begin (gg) $375,000 each year from the workforce development fund is for a grant to Workforce Development, Inc., for their Bridges to Healthcare program 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. Grant proceeds 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 proceeds may be used for Workforce Development, Inc.'s (Bridges to Healthcare) administrative costs. This is a onetime appropriation. new text end

new text begin (hh) $500,000 each year from the workforce development fund is for a grant to Propel Nonprofits. Grant proceeds may be used for purposes including but not limited to capacity building, technical assistance and training, and strategic consulting to community-based workforce organizations. 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 (ii) $750,000 each year from the workforce development fund is for a grant to Summit Academy OIC to expand student enrollment, employment placement, and program access in the Twin Cities and throughout Minnesota; to expand GED preparation and administration and STEM programming; and to start and enroll students in a dental assistant program and work with employers to place students upon successful completion of the program. This is a onetime appropriation. new text end

new text begin (jj) $250,000 each year from the workforce development fund 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. Enrollment in the training program must happen no more than 12 months from the date of release. 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. This is a onetime appropriation. new text end

new text begin (kk) $125,000 each year from the workforce development fund is for a grant to 30,000 Feet, a nonprofit organization, 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 (ll) $250,000 each year from the workforce development fund is for a grant to Bolder Options Youth Mentoring Program to provide disadvantaged youth ages 12 through 22 with intensive one-to-one wellness, goal setting, and academic-focused mentorship; programming that teaches life and job-seeking skills; career and college achievement coaches; and connections to employment, job training, and education opportunities. The grant must serve youth in the Bolder Options program in the Twin Cities and Rochester. This is a onetime appropriation. new text end

new text begin (mm) $1,000,000 the first year from the workforce development fund is for a grant to Change Starts With Community for a violence prevention jobs program. Grant money must be used to establish and deliver a comprehensive workforce development initiative, specifically tailored for youth and adults who are Black, Indigenous, and People of Color and at-risk, located on site at Shiloh Cares Food Shelf - Northside Community Safety Resource Center in the city of Minneapolis. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin (nn) $75,000 each year from the workforce development fund is for a grant to InspireMSP to develop and execute programming to assist middle and high school aged children in Minneapolis and St. Paul to develop an interest in and connect with the creative industry in Minnesota. For the purpose of this paragraph, creative industries may include but are not limited to businesses in fields such as visual arts, design, media, advertising, film, music, performing arts, publishing, fashion, architecture, and creative technology. Money must be used for program development and career exploration in the creative industry for historically excluded youth by providing access to essential resources, networks, and hands-on experience. This is a onetime appropriation. new text end

new text begin (oo) $250,000 the first year from the workforce development fund 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. This is a onetime appropriation. new text end

new text begin (pp) $250,000 each year from the workforce development fund is for a grant to the city of Brooklyn Park for the city to expand the workforce development programming of Brooklyn Park and Brooklyn Center through workforce development programs targeted to serving underrepresented populations, including such programs as Brooklynk, Career Pathways, Youth Entrepreneurship, and Community Partnership. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin (qq) $200,000 each year from the workforce development fund is for a grant to YMCA of the North to provide career exploration, job training, a workforce development partnership with the Beacons program at Minneapolis Community and Technical College, and workforce development services for underserved youth and young adults. This is a onetime appropriation. new text end

new text begin (rr) $200,000 each year from the workforce development fund is for a grant to Urban League Twin Cities for support and expansion of its workforce solutions and wealth building programs. This is a onetime appropriation. new text end

new text begin (ss) $200,000 each year from the workforce development fund is for a grant to Abijah's on the Backside to provide equine-experiential mental health therapy to first responders suffering from job-related trauma and post-traumatic stress disorder. The grant provided under this paragraph is not subject to Minnesota Statutes, section 116L.98. 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 For purposes of this paragraph, a "first responder" is an active or retired: new text end

new text begin (1) peace officer as defined in Minnesota Statutes, section 626.84, subdivision 1, paragraph (c); new text end

new text begin (2) full-time firefighter as defined in Minnesota Statutes, section 299N.03, subdivision 5; new text end

new text begin (3) volunteer firefighter as defined in Minnesota Statutes, section 299N.03, subdivision 7; new text end

new text begin (4) ambulance service personnel as defined in Minnesota Statutes, section 144E.001, subdivision 3a; new text end

new text begin (5) 911 telecommunicator as defined in Minnesota Statutes, section 403.02, subdivision 17c; or new text end

new text begin (6) correctional officer as defined in Minnesota Statutes, section 241.026, subdivision 1, paragraph (b). new text end

new text begin Abijah's 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, 2026, and a final report is due by January 15, 2028. new text end

new text begin (tt) $250,000 each year from the workforce development fund is for a grant to the Black Women's Wealth Alliance to provide individuals with job skills training, career counseling, and career placement assistance for in-demand careers with family sustaining wages. This is a onetime appropriation. new text end

new text begin (uu) $42,000 the first year from the workforce development fund is for a grant to Aspirus Lake View Hospital, a nonprofit organization, to provide workforce training to create a minimum of 12 new certified nursing assistants for local employers. Grant money may be used for training and curriculum costs, certification testing, and a retention bonus for trainees. This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin (vv) $125,000 each year from the workforce development fund is for a grant to West Broadway Business and Area Coalition to support their Youth Jobs program to provide career readiness training and internship opportunities throughout the community for youth in North Minneapolis. This is a onetime appropriation. new text end

new text begin (ww) $500,000 each year from the workforce development fund is for a grant to the Sanneh Foundation, a nonprofit organization, to fund out-of-school and summer programs focused on mentoring and behavioral, social, and emotional learning interventions and enrichment activities tailored for low-income students of color. This appropriation is onetime and available until June 30, 2029. new text end

new text begin (xx) $500,000 each year from the workforce development fund 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 (yy) $375,000 each year from the workforce development fund 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 (zz) $1,500,000 the first year from the workforce development fund is for a grant to Minnesota STEM Ecosystem to support STEM learning opportunities, including but not limited to high school and college internships, or use of virtual reality technology, and workforce development within the science and technology areas. The Minnesota STEM Ecosystem shall award grants to programs that support STEM learning or use of virtual reality technology, and workforce development to ensure strategic alignment of STEM initiatives across the state. The Minnesota STEM Ecosystem must provide notification to the commissioner prior to issuing any subgrant under this paragraph. This is a onetime appropriation and is available until June 30, 2029. new text end

new text begin (aaa) $250,000 each year from the workforce development fund is for a grant to the Minnesota Association of Black Lawyers to be used for a program supporting undergraduate students pursuing admission to law school. The grant provided under this paragraph is not subject to Minnesota Statutes, section 116L.98. This is a onetime appropriation. new text end

new text begin The program must: new text end

new text begin (1) enroll Minnesota resident students attending a baccalaureate degree-granting postsecondary institution in Minnesota full-time; new text end

new text begin (2) 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 (3) 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 (4) 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 The Minnesota Association of Black Lawyers may use grant money under this paragraph for costs related to student scholarships; academic events and programming, including food and transportation costs for students; LSAT preparation materials, courses, and registrations; and hiring staff for the program. new text end

new text begin By January 30, 2026, and again by January 30, 2027, the Minnesota Association of Black Lawyers must submit a report to the commissioner of employment and economic development and to the chairs and ranking minority members of the legislative committees with jurisdiction over workforce development and policy. The report must include an accurate and detailed account of the program, the program's outcomes, and the program's revenues and expenses, including the use of all state money appropriated in this paragraph. new text end

new text begin (bbb) $250,000 each year from the workforce development fund is for a grant to the Rural Cancer Institute for a pilot program to expand the clinical workforce specific to oncology care in rural districts. This program may work to increase the number of cancer care clinicians in rural districts and provide health care students with skills critical to the challenges of providing cancer care in a rural setting using a community-based model. The community-based model may work to grow the oncology clinical workforce in rural districts and directly address the cancer care workforce shortage in rural districts. This is a onetime appropriation. new text end

new text begin (ccc) $50,000 each year is from the workforce development fund for a grant to the Center for African Immigrants and Refugees Organization (CAIRO) to implement the Gateways2Growth Initiative. This is a onetime appropriation. new text end

new text begin CAIRO may use grant proceeds for the Gateways2Growth Initiative including: new text end

new text begin (1) IT workforce training, including (i) expanding access to full-stack development, cybersecurity, and business analysis training programs and (ii) partnering with statewide employers to facilitate hiring and paid internships for IT trainees; new text end

new text begin (2) commercial driver's license (CDL) training, including (i) expanding training opportunities for new CDL drivers to address Minnesota's critical shortage in transportation and logistics and (ii) partnering with trucking companies to provide job placements and apprenticeship programs; and new text end

new text begin (3) health care workforce development, including (i) training certified nursing assistants, phlebotomists, pharmacy technicians, and other essential health care professionals to meet Minnesota's growing demand in long-term care facilities and hospitals and (ii) collaborating with statewide health care providers to support job placement, credentialing, and licensure. new text end

new text begin CAIRO shall distribute grant proceeds equally between workforce programs inside and outside the seven-county Twin Cities metropolitan area. new text end

new text begin Priority must be given to (1) individuals from historically underserved communities, including immigrants, refugees, and rural populations; (2) workers seeking reskilling or career transitions due to economic displacement; and (3) underemployed individuals looking to enter high-demand fields with strong career growth potential. new text end

new text begin At the conclusion of each fiscal year, CAIRO, in collaboration with the commissioner of employment and economic development, shall submit a report to the legislature detailing the number of participants enrolled in each of the following training sectors: IT, CDL, and health care; the employment outcomes and wage growth of program graduates; the regional distribution of participants, ensuring equitable access inside and outside the seven-county Twin Cities metropolitan area; and recommendations for program expansion and sustainability. new text end

new text begin (ddd) $25,000 each year from the workforce development fund is for a grant to Duluth Public Schools for the Duluth Promise initiative to strengthen career planning, career pathway training and education, wraparound support services, and job skills advancement in high-demand careers including health care, manufacturing, and business finance. The Duluth Promise aims to reduce barriers to employment and address workforce shortages in the Duluth area and St. Louis County by building intentional strategies with employers, kindergarten through grade 12 students, and higher education partners. Money appropriated under this paragraph: new text end

new text begin (1) must be focused on establishing clear pathways with early college credit, credit for prior learning, college in the schools, early work experiences, and earn-and-learn opportunities; new text end

new text begin (2) must support employer outreach services to solve current and anticipated workforce challenges and be directly connected to workforce programming; and new text end

new text begin (3) 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. new text end

new text begin This appropriation is onetime and is available until June 30, 2027. new text end

new text begin (eee) $1,000,000 each year from the workforce development fund is for the Service to Success initiative. The base for this appropriation is $500,000 in fiscal year 2028 and each year thereafter. Of this amount, up to $150,000 may be transferred to the Department of Education to support career pathways development. Of the amounts for fiscal year 2026 and fiscal year 2027: new text end

new text begin (1) $200,000 each year is for the Office of Public Service, established under Minnesota Statutes, section 116J.9921; new text end

new text begin (2) $50,000 each year is to support career pathways development. The commissioner of employment and economic development may enter into an interagency agreement with the Department of Education, including agreements to transfer funds and to administer this clause; and new text end

new text begin (3) $750,000 each year is for grants to expand service opportunities, including but not limited to ServeMinnesota Innovation Act, Minnesota Statutes, sections 124D.37 to 124D.45; the Domestic and Volunteer Service Act of 1973, United States Code, title 42, section 4950; and the National and Community Service Act of 1990, United States Code, title 42, section 12501. Of this amount, up to five percent may be used for administration of the grants. new text end

new text begin (fff) $6,000,000 each year is from the workforce development fund for the Drive for Five Initiative to conduct outreach and provide job skills training, career counseling, case management, and supportive services for careers in technology, labor, the caring professions, manufacturing, and educational and professional services. This is a onetime appropriation. new text end

new text begin (ggg) Of the amount appropriated in paragraph (fff), the commissioner must make $3,375,000 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 (fff). 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 (hhh) Of the amount appropriated in paragraph (fff), $1,500,000 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 of commerce must partner with employers with current or anticipated employment opportunities and nonprofit workforce training partners participating in this program. The trade associations or chambers of commerce must work closely with the industry sector training providers in the five industries identified in paragraph (fff). 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. 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 (iii) Of the amount appropriated in paragraph (fff), $1,125,000 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; 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; and new text end

new text begin (4) engage in workforce innovation solutions. new text end

new text begin (jjj)(1) $150,000 the first year is for conducting a comprehensive review of the department's programs and competitive grant processes, including how grants are announced, reviewed, awarded, and administered, and how those processes impact how services are delivered. This review must include input from past applicants and potential applicants. This appropriation is onetime and is available until June 30, 2027. new text end

new text begin (2) No later than February 15, 2026, the commissioner must submit a preliminary written report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over employment and economic development. The report must include the preliminary results of the comprehensive review, as well as any recommendations or draft legislation that the commissioner would like to propose for improving the department's programs and grant-making system in the future. new text end

new text begin (3) No later than January 15, 2027, the commissioner must submit a final written report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over employment and economic development. The report must include the final results of the comprehensive review, as well as any recommendations or draft legislation that the commissioner would like to propose for improving the department's programs and grant-making system in the future. new text end

new text begin (kkk) $150,000 the first year from the workforce development fund is for the expenses of the Task Force on Workforce Development System Reform. This appropriation is onetime and is available until June 30, 2027. new text end

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

new text begin 6,605,000 new text end

new text begin 7,375,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,510,000 new text end	new text begin 7,280,000 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 $1,269,000 each year from the general fund is for transfer to the Minnesota Housing Finance Agency for operating the Olmstead Compliance Office. new text end

new text begin Subd. 5. new text end new text begin Minnesota Trade Office new text end

new text begin 2,242,000 new text end

new text begin 2,242,000 new text end

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

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

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

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

new text begin 44,191,000 new text end

new text begin 44,191,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 20,290,000 new text end	new text begin 20,290,000 new text end
new text begin Workforce Development new text end	new text begin 23,901,000 new text end	new text begin 23,901,000 new text end

new text begin (a) $3,229,000 each year from the general fund and $16,071,000 each year from the workforce development fund are for the state's vocational rehabilitation program under Minnesota Statutes, chapter 268A. The base for this appropriation is $1,800,000 from the general fund and $17,500,000 from the workforce development fund in fiscal year 2028 and each year thereafter. new text end

new text begin (b) $10,495,000 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) $3,555,000 each year is for grants to programs that provide employment support services to persons with mental illness under Minnesota Statutes, sections 268A.13 and 268A.14. new text end

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

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

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

new text begin 8,425,000 new text end

new text begin 8,425,000 new text end

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

new text begin Subd. 8. new text end new text begin Paid Leave new text end

new text begin 40,544,000 new text end

new text begin 5,000,000 new text end

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

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

new text begin $ new text end

new text begin 23,652,000 new text end

new text begin $ new text end

new text begin 18,108,000 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 under Minnesota Statutes, section 116U.05. The incentive in fiscal year 2026 is based on fiscal year 2025 private sector contributions. The incentive in fiscal year 2027 is based on fiscal year 2026 private sector contribution. This incentive is ongoing. new text end

new text begin (b) $825,000 each year is for Explore Minnesota Film under Minnesota Statutes, section 116U.255. new text end

new text begin (c) $671,000 the first year is for a grant to the 2026 Special Olympics USA Games. This is a onetime appropriation. new text end

new text begin (d) $5,000,000 the first year is for a grant to Minnesota Sports and Events for costs related to the World Junior Hockey Championships, which will occur in Minnesota in December of 2025 and January of 2026. This appropriation is onetime and is available until June 30, 2027. new text end

Sec. 4. new text begin DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES new text end

new text begin $ new text end

new text begin 516,000 new text end

new text begin $ new text end

new text begin 516,000 new text end

new text begin (a) $466,000 each year is for a grant to Greater Twin Cities United Way to fully or partially subsidize child care costs for individuals who are: new text end

new text begin (1) eligible for the early learning scholarship program under Minnesota Statutes, chapter 142D.25, subdivision 2; new text end

new text begin (2) not receiving an early learning scholarship or assistance through the child care assistance program; and new text end

new text begin (3) working at least 32 hours a week providing direct care for children in a licensed child care center, certified child care center, or licensed family child care setting. new text end

new text begin Of this amount, up to ten percent is available for Greater Twin Cities United Way to administer the program. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin Subsidies must not exceed $5,000 per child per year and eligibility under clause (3) must be reverified approximately every three months. At least 25 percent of recipients must be employed in a licensed child care center, certified child care center, or licensed family child care provider located in Economic Development Area 3. new text end

new text begin Notwithstanding any law to the contrary, subsidies under this paragraph must not be considered income, assets, or personal property for purposes of determining eligibility or recertifying eligibility for: new text end

new text begin (i) child care assistance programs under Minnesota Statutes, chapter 142E, and early learning scholarships under Minnesota Statutes, section 142D.25; new text end

new text begin (ii) general assistance and Minnesota supplemental aid under Minnesota Statutes, chapter 256D; new text end

new text begin (iii) housing support under Minnesota Statutes, chapter 256I; new text end

new text begin (iv) the Minnesota family investment program and diversionary work program under Minnesota Statutes, chapter 142G; or new text end

new text begin (v) economic assistance programs under Minnesota Statutes, chapter 256P. new text end

new text begin (b) $50,000 each year is to verify whether applicants for subsidies in paragraph (a) meet the eligibility requirements in clauses (1) and (2). This is a onetime appropriation and is available until June 30, 2028. new text end

Sec. 5. new text begin PUBLIC FACILITIES AUTHORITY new text end

new text begin $ new text end

new text begin 3,000,000 new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $3,000,000 the first year is to provide lead service line replacement grants under Minnesota Statutes, section 446A.077. This is a onetime appropriation and is available until June 30, 2033. new text end

Sec. 6.

new text begin CARRYFORWARD; EXTENSIONS. new text end

new text begin (a) Notwithstanding any other law to the contrary, the availability of the appropriations for the following projects is extended to June 30, 2026: new text end

new text begin (1) Laws 2023, chapter 53, article 20, section 2, subdivision 2, paragraph (c), clause (2); and new text end

new text begin (2) Laws 2023, chapter 53, article 20, section 2, subdivision 2, paragraph (f). new text end

new text begin (b) Notwithstanding any other law to the contrary, the availability of the appropriations for the following projects is extended to June 30, 2027: new text end

new text begin (1) Laws 2023, chapter 53, article 20, section 2, subdivision 3, paragraph (b), clause (1); new text end

new text begin (2) Laws 2023, chapter 53, article 20, section 2, subdivision 3, paragraph (d); new text end

new text begin (3) Laws 2023, chapter 63, article 9, section 9, paragraph (c); and new text end

new text begin (4) Laws 2023, chapter 63, article 9, section 9, paragraph (d). new text end

new text begin (c) Notwithstanding any other law to the contrary, the availability of the appropriations for the following projects is extended to June 30, 2029: new text end

new text begin (1) Laws 2023, chapter 53, article 20, section 2, subdivision 3, paragraph (nn); and new text end

new text begin (2) Laws 2023, chapter 53, article 20, section 2, subdivision 3, paragraph (yyy). new text end

new text begin (d) Any unspent funds appropriated in Laws 2024, chapter 120, article 1, section 2, subdivision 4, as of the date of enactment of this section must be spent equally between fiscal year 2026 and fiscal year 2027. 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. 7.

new text begin TRANSFERS. new text end

new text begin (a) $500,000 in fiscal year 2026 and $500,000 in fiscal year 2027 are transferred from the general fund to the emerging entrepreneur program special revenue fund account created under Minnesota Statutes, section 116M.18. The commissioner of employment and economic development may use up to four percent of this transfer for administration and monitoring of the program. For fiscal years 2028 to 2031, the commissioner of management and budget must include a transfer of $500,000 each year from the general fund to the emerging entrepreneur program special revenue fund account when preparing each forecast through the February 2027 forecast, under Minnesota Statutes, section 16A.103. new text end

new text begin (b) $1,000,000 in fiscal year 2026 and $1,000,000 in fiscal year 2027 are transferred from the general fund to the CanStartup revolving loan account established under Minnesota Statutes, section 116J.659, subdivision 3. The commissioner of employment and economic development may use up to four percent of this transfer for administrative purposes. For fiscal years 2028 to 2031, the commissioner of management and budget must include a transfer of $1,250,000 each year from the general fund to the CanStartup revolving loan account when preparing each forecast through the February 2027 forecast, under Minnesota Statutes, section 16A.103. new text end

Sec. 8.

new text begin CANCELLATIONS. new text end

new text begin (a) $1,000,000 of the fiscal year 2024 general fund appropriation under Laws 2023, chapter 53, article 20, section 2, subdivision 2, paragraph (e), is canceled to the general fund. new text end

new text begin (b) $1,000,000 of the fiscal year 2024 and $2,500,000 of the fiscal year 2025 general fund appropriations under Laws 2023, chapter 53, article 20, section 2, subdivision 2, paragraph (ss), is canceled to the general fund. new text end

new text begin (c) $1,200,000 of the fiscal year 2025 general fund appropriation under Laws 2023, chapter 53, article 20, section 2, subdivision 3, paragraph (b), is canceled to the general fund. new text end

new text begin (d) $200,000 of the fiscal year 2025 general fund appropriation under Laws 2024, chapter 120, article 1, section 2, subdivision 2, paragraph (i), is canceled to the general fund. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

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

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

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

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

new text begin (b) If an appropriation in this article is enacted more than once in the 2025 regular or special legislative session, the appropriation must be given effect only once. new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF 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 55,144,000 new text end

new text begin $ new text end

new text begin 54,026,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 8,263,000 new text end	new text begin 8,135,000 new text end
new text begin Family and Medical Benefit new text end	new text begin 366,000 new text end	new text begin -0- new text end
new text begin Workers' Compensation new text end	new text begin 34,776,000 new text end	new text begin 34,652,000 new text end
new text begin Workforce Development new text end	new text begin 11,739,000 new text end	new text begin 11,239,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end new text begin General Support new text end

new text begin 9,106,000 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 9,634,000 new text end

new text begin 9,187,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 7,572,000 new text end	new text begin 7,491,000 new text end
new text begin Family and Medical Benefit new text end	new text begin 366,000 new text end	new text begin -0- new text end
new text begin Workforce Development new text end	new text begin 1,696,000 new text end	new text begin 1,696,000 new text end

new text begin (a) The general fund base is $7,170,000 in fiscal year 2028 and each year thereafter. new text end

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

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

new text begin (d) $351,000 the first year and $356,000 the second year are for enforcement, education, and training related to employee misclassification. new text end

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

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

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

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

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

new text begin (j) $460,000 the first year and $160,000 the second year are for costs associated with the misclassification fraud impact report under Minnesota Statutes, section 181.725, subdivision 4b. This appropriation is onetime and is available until June 30, 2027. The commissioner of labor and industry may enter into interagency agreements with the commissioners of employment and economic development and revenue to transfer funds appropriated in this paragraph as needed to fulfill the requirements of the misclassification fraud impact report. new text end

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

new text begin 17,609,000 new text end

new text begin 17,919,000 new text end

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

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

new text begin 8,061,000 new text end

new text begin 7,627,000 new text end

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

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

new text begin 2,404,000 new text end

new text begin 2,404,000 new text end

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

new text begin (a) $500,000 each year is from the workforce development fund for the dual-training pipeline program and the identification of competency standards under Minnesota Statutes, section 175.45. new text end

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

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

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

new text begin 254,000 new text end

new text begin 254,000 new text end

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

new text begin 7,172,000 new text end

new text begin 6,672,000 new text end

new text begin (a) This appropriation is from the workforce development fund. The workforce development fund base is $2,772,000 in fiscal year 2028 and each year thereafter. new text end

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

new text begin (c) $238,000 each year is from the workforce development fund for a grant to Building Strong Communities, Inc. for the Minnesota Helmets to Hardhats program. Money appropriated in this paragraph must be used to facilitate participation of National Guard, reserve, and active duty military members and veterans in apprenticeship programs registered with the Department of Labor and Industry and connect these members and veterans to career training and employment in the building and construction industries. Program recruitment, selection, employment, and training must not discriminate based on race, color, creed, religion, national origin, sex, sexual orientation, marital status, physical or mental disability, receipt of public assistance, or age. By February 1 of each year, Building Strong Communities, Inc. must submit a report to the commissioner of labor and industry and the chairs and ranking minority members of the legislative committees with jurisdiction over labor and industry that identifies: new text end

new text begin (1) a detailed accounting of the use of the grant; and new text end

new text begin (2) the number and demographics of individuals served by the grant. new text end

new text begin The report must be filed according to Minnesota Statutes, section 3.195. new text end

new text begin (d) $3,500,000 each year is from the workforce development fund for a registered teacher apprenticeship competitive grant program. This is a onetime appropriation and is available until June 30, 2029. Funds must be awarded through a competitive request for proposal process with preference given to programs with multiple participating school districts. As much as practical, the commissioner must ensure that school districts in all regions of the state have a meaningful opportunity to participate in one or more of the funded programs. Grant awards must be used to establish, administer, and operationalize registered teacher apprenticeship programs and joint apprenticeship training committees statewide in accordance with the requirements of Minnesota Statutes, chapter 178. Grant money may be used to: new text end

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

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

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

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

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

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

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

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

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

new text begin (e) $500,000 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 is a onetime appropriation and is available until June 30, 2027. 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 courses and must lead to eligibility for the Operating Engineers Local 49 apprenticeship program; 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; new text end

new text begin (3) the career pathways program must provide outreach to and encourage participation in its programming by students of color, Indigenous students, students from families with low income, students located throughout Minnesota, and underserved students; and new text end

new text begin (4) by January 15 of each year following receipt of a grant, Independent School District No. 294, Houston, must submit a written report to the commissioner of labor and industry and the chairs and ranking minority members of the legislative committees with jurisdiction over education and workforce development. The grant award and report must comply with the provisions of Minnesota Statutes, sections 3.195 and 127A.20. The report must: new text end

new text begin (i) describe students' experiences with the program; new text end

new text begin (ii) document the program's spending and the number of students participating in the program and entering into the apprenticeship program; new text end

new text begin (iii) include geographic and demographic information on the program participants; new text end

new text begin (iv) make recommendations to improve the support of career pathways programs statewide; and new text end

new text begin (v) make recommendations to improve student participation in career pathways programs. new text end

new text begin (f) $400,000 each year is from the workforce development fund for a grant to Building Strong Communities, Inc., for a statewide apprenticeship readiness program that prepares women; individuals who are Black, Indigenous, and People of Color; and veterans to enter the building and construction industries. This is a onetime appropriation. By February 1 of each year following receipt of a grant, Building Strong Communities, Inc. must submit a report to the commissioner of labor and industry and the chairs and ranking minority members of the legislative committees with jurisdiction over labor and industry that identifies: new text end

new text begin (1) a detailed accounting of the use of the grant; and new text end

new text begin (2) the number and demographics of individuals served by the grant. new text end

new text begin The report must be filed according to Minnesota Statutes, section 3.195. new text end

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

new text begin 404,000 new text end

new text begin 357,000 new text end

new text begin Subd. 10. new text end new text begin Construction Codes and Licensing new text end

new text begin 500,000 new text end

new text begin 500,000 new text end

new text begin This appropriation is from the workforce development fund for initiatives to promote mental health and prevent suicide in the construction industry and may be used for outreach, education, development of resources related to stigma reduction and worksite strategies, and grants to industry groups for related activities. This is a onetime appropriation and is available until June 30, 2029. 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 2,962,000 new text end

new text begin $ new text end

new text begin 2,895,000 new text end

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

Sec. 4. new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end

new text begin 3,828,000 new text end

new text begin $ new text end

new text begin 3,882,000 new text end

new text begin $762,000 the first year and $772,000 the second year are for the Public Employment Relations Board under Minnesota Statutes, section 179A.041. new text end

Sec. 5.

new text begin CANCELLATIONS. new text end

new text begin (a) $25,000 of the fiscal year 2024 appropriation from the general fund for creation and distribution of a veterans' benefits and services poster under Laws 2023, chapter 53, article 19, section 2, subdivision 3, paragraph (f), is canceled. new text end

new text begin (b) $1,000,000 of the fiscal year 2024 appropriation from the workforce development fund for grants to registered apprenticeship programs for clean economy occupations under Laws 2023, chapter 53, article 19, section 2, subdivision 8, paragraph (c), is canceled. new text end

Sec. 6.

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

Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY

$

-0-

$

225,000

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

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

APPROPRIATION MODIFICATIONS

Section 1.

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

Subd. 2. Business and Community Development

195,061,000

139,104,000

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

(a) $2,287,000 each year is for the greater Minnesota business development public infrastructure grant program under Minnesota Statutes, section 116J.431. This appropriation is available until June 30, 2027.

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

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

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

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

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

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

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

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

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

(iii) partner with large businesses;

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

(v) assist with scientific and technical writing;

(vi) help manage federal grants and contracts; and

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

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

(f) $6,425,000 each year is for the small business assistance partnerships program under Minnesota Statutes, section 116J.682. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year. The department may use up to five percent of the appropriation for administrative purposes. The base for this appropriation is $2,725,000 in fiscal year 2026 and each year thereafter.

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

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

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

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

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

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

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

(n) $6,500,000 each year is for grants to local communities to increase the number of quality child care providers to support economic development. Fifty percent of grant money must go to communities located outside the seven-county metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2. The base for this appropriation is $1,500,000 in fiscal year 2026 and each year thereafter.

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

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

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

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

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

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

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

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

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

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

(q) $8,000,000 each year is for the Minnesota job creation fund under Minnesota Statutes, section 116J.8748. Of this amount, the commissioner of employment and economic development may use up to three percent for administrative expenses. This appropriation is available until expended. Notwithstanding Minnesota Statutes, section 116J.8748, money appropriated for the job creation fund may be used for redevelopment under Minnesota Statutes, sections 116J.575 and 116J.5761, at the discretion of the commissioner.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(i) $4,500,000 each year is for North Minneapolis' West Broadway, Camden, deleted text begin or deleted text end new text begin and new text end other Northside neighborhoods;

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

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

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

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

(dd) $5,000,000 the first year is for a grant to the Bloomington Port Authority to provide funding for the Expo 2027 host organization. The Bloomington Port Authority must enter into an agreement with the host organization over the use of money, which may be used for activities, including but not limited to finalizing the community dossier and staffing the host organization and for infrastructure design and planning, financial modeling, development planning and coordination of both real estate and public private partnerships, and reimbursement of costs the Bloomington Port Authority incurred. In selecting vendors and exhibitors for Expo 2027, the host organization shall prioritize outreach to, collaboration with, and inclusion of businesses that are majority owned by people of color, women, and people with disabilities. The host organization and Bloomington Port Authority may be reimbursed for expenses 90 days prior to encumbrance. This appropriation is contingent on approval of the project by the Bureau International des Expositions. If the project is not approved by the Bureau International des Expositions, the money shall transfer to the Minnesota investment fund under Minnesota Statutes, section 116J.8731. Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year.

(ee) $5,000,000 the first year is for a grant to the Neighborhood Development Center for small business programs, including training, lending, business services, and real estate programming; small business incubator development in the Twin Cities and outside the seven-county metropolitan area; and technical assistance activities for partners outside the seven-county metropolitan area; and for high-risk, character-based loan capital for nonrecourse loans. This is a onetime appropriation. Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year.

(ff) $5,000,000 the first year is for transfer to the emerging developer fund account in the special revenue fund. Of this amount, up to five percent is for administration and monitoring of the emerging developer fund program under Minnesota Statutes, section 116J.9926, and the remainder is for a grant to the Local Initiatives Support Corporation - Twin Cities to serve as a partner organization under the program. This is a onetime appropriation.

(gg) $5,000,000 the first year is for the Canadian border counties economic relief program under article 5. Of this amount, up to $1,000,000 is for Tribal economic development and $2,100,000 is for a grant to Lake of the Woods County for the forgivable loan program for remote recreational businesses. This is a onetime appropriation and is available until June 30, 2026.

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

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

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

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

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

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

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

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

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

(2) support business expansion for women food entrepreneurs throughout Minnesota's food supply chain to help stabilize and strengthen their business operations, create distribution networks, offer technical assistance and support to beginning women food entrepreneurs, develop business plans, develop a workforce, research expansion strategies, and for other related activities.

Eligible uses of the money include but are not limited to:

(i) leasehold improvements;

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

(iii) inventory or supplies;

(iv) machinery or equipment purchases;

(v) working capital; and

(vi) debt refinancing.

Money distributed to entrepreneurs may be loans, forgivable loans, and grants. Of this amount, up to five percent may be used for the WomenVenture's technical assistance and administrative costs. This is a onetime appropriation and is available until June 30, 2026.

By December 15, 2026, WomenVenture must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over agriculture and employment and economic development. The report must include a summary of the uses of the appropriation, including the amount of the appropriation used for administration. The report must also provide a breakdown of the amount of funding used for loans, forgivable loans, and grants; information about the terms of the loans issued; a discussion of how money from repaid loans will be used; the number of entrepreneurs assisted; and a breakdown of how many entrepreneurs received assistance in each county.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(oo) $500,000 each year is for a grant to Enterprise Minnesota, Inc., to reach and deliver talent, leadership, employee retention, continuous improvement, strategy, quality management systems, revenue growth, and manufacturing peer-to-peer advisory services to small manufacturing companies employing 35 or fewer full-time equivalent employees. This is a onetime appropriation. No later than February 1, 2025, and February 1, 2026, Enterprise Minnesota, Inc., must provide a report to the chairs and ranking minority members of the legislative committees with jurisdiction over economic development that includes:

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

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

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

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

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

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

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

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

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

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

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

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

(ss) $2,500,000 each year is for a grant to a Minnesota-based automotive component manufacturer and distributor specializing in electric vehicles and sensor technology that manufactures all of their parts onshore to expand their manufacturing. The grant recipient under this paragraph shall submit reports on the uses of the money appropriated, the number of jobs created due to the appropriation, wage information, and the city and state in which the additional manufacturing activity was located to the chairs and ranking minority members of the legislative committees with jurisdiction over economic development. An initial report shall be submitted by December 15, 2023, and a final report is due by December 15, 2025. This is a onetime appropriation.

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

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

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

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

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

(xx)(1) $3,000,000 in the first year is for a grant to the Center for Economic Inclusion for strategic, data-informed investments in job creation strategies that respond to the needs of underserved populations statewide. This may include forgivable loans, revenue-based financing, and equity investments for entrepreneurs with barriers to growth. Of this amount, up to five percent may be used for the center's technical assistance and administrative costs. This appropriation is available until June 30, 2025.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2023, except that the amendment in paragraph (z), clause (3), item (ii), is effective retroactively from July 1, 2024. new text end

Sec. 2.

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

Subd. 3. Employment and Training Programs

112,038,000

104,499,000

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

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

(b) $25,000,000 each year is for the targeted population workforce grants under Minnesota Statutes, section 116L.43. The department may use up to five percent of this appropriation for administration, monitoring, and oversight of the program. Of this amount:

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

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

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

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

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

(d) $10,000,000 each year is for the Drive for Five Initiative to conduct outreach and provide job skills training, career counseling, case management, and supportive services for careers in (1) technology, (2) labor, (3) the caring professions, (4) manufacturing, and (5) educational and professional services. This is a onetime appropriation.

(e) Of the amounts appropriated in paragraph (d), the commissioner must make $7,000,000 each year available through a competitive request for proposal process. The grant awards must be used to provide education and training in the five industries identified in paragraph (d). Education and training may include:

(1) student tutoring and testing support services;

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

(3) assistance in obtaining industry-specific certifications;

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

(5) real-time work experience;

(6) career and educational counseling;

(7) work experience and internships; and

(8) supportive services.

(f) Of the amount appropriated in paragraph (d), $2,000,000 each year must be awarded through competitive grants made to trade associations or chambers of commerce for job placement services. Grant awards must be used to encourage workforce training efforts to ensure that efforts are aligned with employer demands and that graduates are connected with employers that are currently hiring. Trade associations or chambers must partner with employers with current or anticipated employment opportunities and nonprofit workforce training partners participating in this program. The trade associations or chambers must work closely with the industry sector training providers in the five industries identified in paragraph (d). Grant awards may be used for:

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

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

(3) industry-specific training.

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

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

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

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

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

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

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

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

(l) $750,000 each year from the general fund and $6,698,000 each year from the workforce development fund are for the youth-at-work competitive grant program under Minnesota Statutes, section 116L.562. Of this amount, up to five percent is for administration and monitoring of the youth workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year. The base for this appropriation is $750,000 from the general fund and $3,348,000 from the workforce development fund beginning in fiscal year 2026 and each year thereafter.

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

(n) $4,511,000 each year from the general fund and $4,050,000 each year from the workforce development fund are for the Minnesota youth program under Minnesota Statutes, sections 116L.56 and 116L.561. The base for this appropriation is $0 from the general fund and $4,050,000 from the workforce development fund in fiscal year 2026 and each year thereafter.

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

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

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

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

(s) $1,000,000 each year is for the getting to work grant program under Minnesota Statutes, section 116J.545. Of this amount, up to five percent is for administration and monitoring of the program. This is a onetime appropriation.

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

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

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

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

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

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

(1) $900,000 is to develop an advanced manufacturing career pathway program for youth and adult learners with shared learning spaces, state-of-the-art equipment, and instructional support to grow and retain talent in Owatonna; and

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

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

(y) $250,000 each year is for the Minnesota Family Resiliency Partnership under Minnesota Statutes, section 116L.96. The commissioner, through the adult career pathways program, shall distribute the money to existing nonprofit and state displaced homemaker programs. This is a onetime appropriation.

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

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

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

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

(aa) $1,500,000 each year from the workforce development fund is for a grant to Ujamaa Place to assist primarily African American men with job training, employment preparation, internships, education, vocational housing, and organizational capacity building. This is a onetime appropriation.

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

(cc) $2,000,000 each year is for a grant to Propel Nonprofits to provide capacity-building grants and related technical assistance to small, culturally specific organizations that primarily serve historically underserved cultural communities. Propel Nonprofits may only award grants to nonprofit organizations that have an annual organizational budget of less than $1,000,000. These grants may be used for:

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

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

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

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

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

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

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

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

(hh) $1,264,000 each year is for a grant to Summit Academy OIC to expand employment placement, GED preparation and administration, and STEM programming in the Twin Cities, Saint Cloud, and Bemidji. This is a onetime appropriation.

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

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

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

(ll) $3,000,000 the first year is for competitive grants to support high school robotics teams and prepare youth for careers in STEM fields. Of this amount, $2,000,000 is for creating internships for high school students to work at private companies in STEM fields, including the payment of student stipends. This is a onetime appropriation and is available until June 30, 2028.

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

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

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

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

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

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

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

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

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

(tt) $750,000 each year is for a grant to Mind the G.A.P.P. (Gaining Assistance to Prosperity Program) to improve the quality of life of unemployed and underemployed individuals by improving their employment outcomes and developing individual earnings potential. This is a onetime appropriation. Any unencumbered balance remaining at the end of the first year does not cancel but is available in the second year.

(uu) $550,000 each year is for a grant to the International Institute of Minnesota. Grant money must be used for workforce training for new Americans in industries in need of a trained workforce. This is a onetime appropriation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(jjj) $350,000 each year is for a grant to the YWCA Minneapolis to provide training to eligible individuals, including job skills training, career counseling, and job placement assistance necessary to secure a child development associate credential and to have a career path in early education. This is a onetime appropriation.

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

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

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

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

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

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

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

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

(rrr) $500,000 each year is for a grant to the Central Minnesota Community Empowerment Organization for providing services to relieve economic disparities in the African immigrant community through workforce recruitment, development, job creation, assistance of smaller organizations to increase capacity, and outreach. Of this amount, up to five percent is for administration and monitoring of the program. This is a onetime appropriation.

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

(ttt) $400,000 each year is for a grant to Building Strong Communities, Inc, for a statewide apprenticeship readiness program to prepare women, BIPOC community members, and veterans to enter the building and construction trades. This is a onetime appropriation.

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

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

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

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

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

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

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

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

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

(2) The program must:

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

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

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

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

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

(i) student scholarships;

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

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

(iv) hiring staff for the program.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Sec. 7.

APPROPRIATIONS.

(a) $50,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund account to the commissioner of employment and economic development deleted text begin for providing businesses with matching funds required by federal programs deleted text end . Money awarded under this program is made retroactive to February 1, 2023, for applications and projects. The commissioner may use up to two percent of this appropriation for administration. This is a onetime appropriation and is available until June 30, deleted text begin 2027 deleted text end new text begin 2030 new text end . Any funds that remain unspent are canceled to the general fund.

(b) $100,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund account to the commissioner of employment and economic development to match existing federal funds made available in the Consolidated Appropriations Act, Public Law 117-328. This appropriation must be used to (1) construct and operate a bioindustrial manufacturing pilot innovation facility, biorefinery, or commercial campus utilizing agricultural feedstocks or (2) for a Minnesota aerospace center for research, development, and testing, or both (1) and (2). This appropriation is not subject to the grant limit requirements of Minnesota Statutes, section 116J.8752, subdivisions 4, paragraph (b), and 5. Notwithstanding Minnesota Statutes, section 116J.8752, subdivision 4, paragraph (a), this appropriation may include land acquisition as an eligible use to construct a bioindustrial manufacturing pilot innovation facility, a biorefinery, and an aerospace center for research, development, and testing. The commissioner may use up to two percent of this appropriation for administration. This is a onetime appropriation and is available until June 30, deleted text begin 2027 deleted text end new text begin 2030 new text end . Any funds that remain unspent are canceled to the general fund.

(c) $240,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund account to the commissioner of employment and economic development to match federal funds made available in the Chips and Science Act, Public Law 117-167. Money awarded under this program is made retroactive to February 1, 2023, for applications and projects. This appropriation is not subject to Minnesota Statutes, section 116J.8752, subdivision 5. The commissioner may use up two percent for administration. This is a onetime appropriation and is available until June 30, deleted text begin 2027 deleted text end new text begin 2030 new text end . Any funds that remain unspent are canceled to the general fund.

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

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

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

(2) grants to increase the capacity of institutions of higher education to serve industrial requirements for research and development that coincide with current and future requirements of projects eligible under this section. Grant money may be used to construct and equip facilities that serve the purpose of the industry. The maximum grant award per institution of higher education under this section is $5,000,000 and may not represent more than 50 percent of the total project funding from other sources. Use of this funding must be supported by businesses receiving funds under clause (1).

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

Sec. 4.

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

Sec. 30.

APPROPRIATION; CITY OF MINNEAPOLIS; GRANT.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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

Subd. 3. Employment and Training Programs

$

-0-

$

12,207,000

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(hh) $500,000 the second year is from the workforce development fund for a grant to Arrowhead new text begin Economic new text end Opportunity Agency for deleted text begin the purposes of expanding workforce development opportunities in the region. This is a onetime appropriation. deleted text end new text begin a revolving fund for acquiring and rehabilitating tax-forfeited properties for owner-occupied workforce housing. Housing funded with this grant must be affordable to the local workforce. By January 15 each year through 2028, the commissioner must report to the chairs and ranking minority members of the legislative committees with jurisdiction over economic and workforce development and housing regarding the use of grant money, including the number of people employed to carry out the purposes of the grant, the wage and benefit information for those employed, the number of homes acquired, the number of homes rehabilitated, and the number of homes sold to owner occupants. As a condition of receiving this grant, the Arrowhead Economic Opportunity Agency must provide the commissioner any information necessary to complete the required reports. This is a onetime appropriation and is available until June 30, 2027. new text end

(ii) $597,000 the second year is from the workforce development fund for a grant to the Minneapolis Downtown Council for infrastructure and associated costs for the Taste of Minnesota event, including but not limited to buildout, permits, garbage services, staffing, security, equipment rentals, signage, and insurance. This is a onetime appropriation. The commissioner of employment and economic development may enter into an interagency agreement with Explore Minnesota, including agreements to transfer funds and administer the grant.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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

Sec. 4. EXPLORE MINNESOTA

$

-0-

$

4,475,000

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

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

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

(d) $1,250,000 the second year is for a grant to the Minneapolis Downtown Council for infrastructure and associated costs for the Taste of Minnesota event, including but not limited to buildout, permits, garbage services, staffing, security, equipment rentals, signage, and insurance. This is a onetime appropriation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

new text begin APPLICABILITY OF CERTAIN REQUIREMENTS TO APPROPRIATION. new text end

new text begin The appropriation in Laws 2023, chapter 53, article 20, section 2, subdivision 3, paragraph (ee), is not subject to Minnesota Statutes, section 116L.98. new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

EMPLOYMENT AND ECONOMIC DEVELOPMENT POLICY

Section 1.

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

Subd. 2.

Eligible projects.

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

(1) manufacturing;

(2) technology;

(3) warehousing and distribution;

(4) research and development;

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

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

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

Sec. 2.

Minnesota Statutes 2024, section 116J.659, subdivision 4, is amended to read:

Subd. 4.

Loans to businesses.

(a) The criteria in this subdivision apply to loans made by nonprofit corporations under the program.

(b) Loans must be used to support a new cannabis microbusiness in the legal cannabis industry. Priority must be given to loans to businesses owned by individuals who are eligible to be social equity applicants and businesses located in communities where long-term residents are eligible to be social equity applicants.

(c) Loans must be made to cannabis microbusinesses that are not likely to undertake the project for which loans are sought without assistance from the program.

(d) The minimum state contribution to a loan is $2,500 and the maximum is either:

(1) deleted text begin $50,000 deleted text end new text begin $75,000 new text end ; or

(2) deleted text begin $150,000 deleted text end new text begin $200,000 new text end , if state contributions are matched by an equal or greater amount of new private investment.

(e) Loan applications given preliminary approval by the nonprofit corporation must be forwarded to the commissioner for approval. The commissioner must deleted text begin give final approval for each loan made by the nonprofit corporation under the program deleted text end new text begin make approval decisions within 30 days of receiving a loan application. If the application contains insufficient information to make an approval decision, the nonprofit corporation must be notified within 14 days with all information that needs to be provided new text end .

(f) A cannabis microbusiness that receives a loan may apply deleted text begin to renew the deleted text end new text begin for a subsequent new text end loan. deleted text begin Renewal applications must be made on an annual basis and deleted text end A cannabis microbusiness may deleted text begin receive loans for up to six consecutive years deleted text end new text begin have a maximum of two program loans new text end . A nonprofit corporation may deleted text begin renew deleted text end new text begin originate new text end a loan to a cannabis microbusiness that is no longer a new business provided the business would otherwise qualify for an initial loan and is in good standing with the nonprofit corporation and the commissioner. A nonprofit corporation may deleted text begin adjust the amount of a renewed loan, or not renew a loan, deleted text end new text begin decline to originate a subsequent loan new text end if the nonprofit corporation determines that the cannabis microbusiness is financially stable and is substantially likely to continue the project for which the loan deleted text begin renewal deleted text end is sought. new text begin Refinancing of existing debt is prohibited. new text end

(g) If a borrower has met lender criteria, including being current with all payments for a minimum of three years, the commissioner may approve either full or partial forgiveness of interest or principal amounts.

Sec. 3.

Minnesota Statutes 2024, section 116J.659, subdivision 5, is amended to read:

Subd. 5.

Revolving loan account administration.

(a) The commissioner shall establish a minimum interest rate for loans or guarantees to ensure that necessary loan administration costs are covered. The interest rate new text begin or fee equivalent new text end charged by a nonprofit corporation for a loan under this section must not exceed the Wall Street Journal prime rate. For a loan under this section, the nonprofit corporation may charge a loan origination fee equal to or less than one percent of the loan value. The nonprofit corporation may retain the amount of the origination fee.

(b) Loan repayment of principal must be paid to the commissioner for deposit in the CanStartup revolving loan account. Loan interest payments deleted text begin must be deposited in a revolving loan account created by the nonprofit corporation originating the loan being repaid for further distribution or use, consistent with the criteria of this section deleted text end new text begin may be retained by the nonprofit corporation originating the loan to help cover expenses for loan servicing and origination new text end .

(c) Administrative expenses of the nonprofit corporations with whom the commissioner enters into agreements, including expenses incurred by a nonprofit corporation in providing new text begin technology, insurance, legal, audit and accounting, reporting, new text end financial, technical, managerial, and marketing assistance to a business receiving a loan under this section, are eligible program expenses the commissioner may agree to pay under the grant agreement.

new text begin (d) Average interest rates charged by the nonprofit corporations must be reported biannually and publicly published by both the agency and the nonprofit corporation. new text end

Sec. 4.

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

Subd. 4.

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

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

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

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

Sec. 5.

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

Subd. 2.

Purpose.

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

Sec. 6.

new text begin [116J.9921] OFFICE OF PUBLIC SERVICE. 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) "Department" means the Department of Employment and Economic Development. new text end

new text begin (c) "Office" means the Office of Public Service established under this section. new text end

new text begin (d) "Public service opportunity" means a public service position, including but not limited to those in the ServeMinnesota Innovation Act, sections 124D.37 to 124D.45; the Domestic and Volunteer Service Act of 1973, United States Code, title 42, section 4950, as amended; and the National and Community Service Act of 1990, United States Code, title 42, section 12501, as amended. new text end

new text begin (e) "ServeMinnesota" means the Minnesota Commission on National and Community Service as established in section 124D.385. 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 Public Service 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 promote and expand existing public service opportunities, ensure state public service goals and strategy align with the state's workforce development strategy, identify available service opportunities across the state, identify areas for expansion of service programs, and create and strengthen career pathways aligned with public service opportunities. 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 and 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 agencies including but not limited to Minnesota Management and Budget and the Department of Education, and with state and federal public service organizations such as ServeMinnesota to develop, recommend, and implement solutions to promote and expand existing public service opportunities; new text end

new text begin (2) administer the Service to Success Opportunity grant program and other appropriations to the department for this purpose; new text end

new text begin (3) identify state and federal public service opportunities; new text end

new text begin (4) develop career pathways aligned with public service opportunities; new text end

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

new text begin (6) 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, 2027, and every two years thereafter, the Office of Public Service shall report to the legislative committees with jurisdiction over the Department of Employment and Economic Development 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) a summary of the office's activities; new text end

new text begin (2) an update of any grants administered by the office, including the number of grants, grant recipients, average grant amount, and outcomes of those grants; new text end

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

new text begin (4) any other information requested by the legislative committees with jurisdiction over the Department of Employment and Economic Development, 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. 7.

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

Subd. 2.

Appointment.

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

Sec. 8.

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

Subdivision 1.

Partnership program.

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

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

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

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

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

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

new text begin (d) At the discretion of the board, higher education institutions may charge up to a 30-percent increase on the direct project costs, not including equipment costs. new text end

Sec. 9.

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

Subd. 1a.

Pathways program.

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

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

Preference shall be given to projects that:

(1) provide employment with benefits paid to employees;

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

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

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

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

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

new text begin (e) At the discretion of the board, higher education institutions may charge up to a 30-percent increase on the direct project costs, not including equipment costs. new text end

Sec. 10.

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

Subd. 5.

Use of workforce development funds.

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

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

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

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

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

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

Sec. 11.

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

Subdivision 1.

Establishment.

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

Sec. 12.

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

Subd. 3.

Competitive grant awards.

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

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

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

(3) serve youth with disabilities.

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

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

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

Sec. 13.

Minnesota Statutes 2024, section 116L.665, subdivision 2, is amended to read:

Subd. 2.

Membership.

(a) The governor's Workforce Development Board is composed of members appointed by the governor. In selecting the representatives of the board, the governor shall ensure that a majority of the members come from the private sector, pursuant to United States Code, title 29, section 3111. For the public members, membership terms, compensation of members, and removal of members are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the membership should be balanced as to gender and ethnic diversity.

(b) No person shall serve as a member of more than one category described in paragraph (c).

(c) Voting members shall consist of the following:

(1) the governor or the governor's designee;

(2) two members of the house of representatives, one appointed by the speaker of the house and one appointed by the minority leader of the house of representatives;

(3) two members of the senate, one appointed by the senate majority leader and one appointed by the senate minority leader;

(4) a majority of the members must be representatives of businesses in the state appointed by the governor who:

(i) are owners of businesses, chief executives, or operating officers of businesses, or other business executives or employers with optimum policy-making or hiring authority and who, in addition, may be members of a local board under United States Code, title 29, section 3122(b)(2)(A)(i);

(ii) represent businesses, including small businesses, or organizations representing businesses that provide employment opportunities that, at a minimum, include high-quality, work-relevant training and development in in-demand industry sectors or occupations in the state; and

(iii) are appointed from individuals nominated by state business organizations and business trade associations;

(5) six representatives of labor organizations appointed by the governor, including:

(i) representatives of labor organizations who have been nominated by state labor federations; and

(ii) a member of a labor organization or a training director from a joint labor organization;

(6) commissioners of the state agencies with primary responsibility for core programs identified within the state plan including:

(i) the Department of Employment and Economic Development;

(ii) the Department of Education; new text begin and new text end

(iii) deleted text begin the Department of Human Services; and deleted text end

deleted text begin (iv) deleted text end the Department of Children, Youth, and Families;

(7) two chief elected officials, appointed by the governor, collectively representing cities and counties;

(8) two representatives deleted text begin who are people of color or people with disabilities, appointed by the governor, deleted text end of community-based organizations new text begin , appointed by the governor, new text end that have demonstrated experience and expertise in addressing the employment, training, or education needs of individuals with barriers to employment; deleted text begin and deleted text end

(9) four officials responsible for education programs in the state, appointed by the governor, including chief executive officers of community colleges and other institutions of higher education, including:

(i) the chancellor of the Minnesota State Colleges and Universities;

(ii) the president of the University of Minnesota;

(iii) a president from a private postsecondary school; and

(iv) a representative of career and technical education new text begin ; and new text end

new text begin (10) the chair or executive director of the Minnesota Association of Workforce Boards new text end .

(d) The nonvoting members of the board shall be appointed by the governor and consist of one of each of the following:

(1) deleted text begin a representative of Adult Basic Education; deleted text end

deleted text begin (2) deleted text end a representative of public libraries;

deleted text begin (3) deleted text end new text begin (2) new text end a person with expertise in women's economic security;

deleted text begin (4) the chair or executive director of the Minnesota Workforce Council Association; deleted text end

deleted text begin (5) deleted text end new text begin (3) new text end the commissioner of labor and industry;

deleted text begin (6) deleted text end new text begin (4) new text end the commissioner of the Office of Higher Education;

deleted text begin (7) deleted text end new text begin (5) new text end the commissioner of corrections;

deleted text begin (8) deleted text end new text begin (6) new text end the commissioner of management and budget;

deleted text begin (9) deleted text end new text begin (7) new text end two representatives of community-based organizations deleted text begin who are people of color or people with disabilities deleted text end who have demonstrated experience and expertise in addressing the employment, training, and education needs of individuals with barriers to employment;

deleted text begin (10) a representative of secondary, postsecondary, or career-technical education; deleted text end

deleted text begin (11) deleted text end new text begin (8) new text end a representative of school-based service learning;

deleted text begin (12) deleted text end new text begin (9) new text end a representative of the Council on Asian-Pacific Minnesotans;

deleted text begin (13) deleted text end new text begin (10) new text end a representative of the Minnesota Council on Latino Affairs;

deleted text begin (14) deleted text end new text begin (11) new text end a representative of the Council for Minnesotans of African Heritage;

deleted text begin (15) deleted text end new text begin (12) new text end a representative of the Minnesota Indian Affairs Council;

deleted text begin (16) deleted text end new text begin (13) new text end a representative of the Minnesota State Council on Disability; deleted text begin and deleted text end

deleted text begin (17) deleted text end new text begin (14) new text end a representative of the Office on the Economic Status of Women new text begin ; and new text end

new text begin (15) the commissioner of human services new text end .

(e) Each member shall be appointed for a term of three years from the first day of January or July immediately following their appointment. Elected officials shall forfeit their appointment if they cease to serve in elected office.

Sec. 14.

Minnesota Statutes 2024, section 116L.90, is amended to read:

116L.90 CANNABIS INDUSTRY TRAINING GRANTS.

Subdivision 1.

Establishment.

The commissioner of employment and economic development shall establish CanTrain, a program to award grants to deleted text begin (1) deleted text end eligible organizations to train people for work in the legal cannabis industry deleted text begin , and (2) eligible individuals to acquire such training deleted text end .

Subd. 2.

Definitions.

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

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

(c) "Eligible organization" means any organization capable of providing training relevant to the legal cannabis industry, particularly for individuals facing barriers to education or employment, and may include educational institutions, nonprofit organizations, private businesses, community groups, units of local government, labor organizations that represent cannabis workers in the state, or partnerships between different types of organizations.

deleted text begin (d) "Eligible individual" means a Minnesota resident who is 21 years old or older. deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end "Industry" means the legal cannabis industry in Minnesota.

deleted text begin (f) deleted text end new text begin (e) new text end "Program" means the CanTrain grant program.

deleted text begin (g) deleted text end new text begin (f) new text end "Social equity applicant" means a person who meets the qualification requirements in section 342.17.

Subd. 3.

Grants to organizations.

(a) Grant money awarded to eligible organizations may be used for both developing a training program relevant to the legal cannabis industry and for providing such training to individuals.

(b) The commissioner must award grants to eligible organizations through a competitive grant process.

(c) To receive grant money, an eligible organization must submit a written application to the commissioner, using a form developed by the commissioner, explaining the organization's ability to train individuals for successful careers in the legal cannabis industry, particularly individuals facing barriers to education or employment.

(d) An eligible organization's grant application must also include:

(1) a description of the proposed training;

(2) an analysis of the degree of demand in the legal cannabis industry for the skills gained through the proposed training;

(3) any evidence of the organization's past success in training individuals for successful careers, particularly in new or emerging industries;

(4) an estimate of the cost of providing the proposed training;

(5) the sources and amounts of any nonstate funds or in-kind contributions that will supplement grant money, including any amounts that individuals will be charged to participate in the training; and

(6) any additional information requested by the commissioner.

(e) In awarding grants under this subdivision, the commissioner shall give weight to applications from organizations that demonstrate a history of successful career training, particularly for individuals facing barriers to education or employment. The commissioner shall also give weight to applications where the proposed training will:

(1) result in an industry-relevant credential; or

(2) include opportunities for hands-on or on-site experience in the industry.

The commissioner shall fund training for a broad range of careers in the legal cannabis industry, including both potential business owners and employees and for work in the growing, processing, and retail sectors of the legal cannabis industry.

deleted text begin Subd. 4. deleted text end

deleted text begin Grants to individuals. deleted text end

deleted text begin (a) The commissioner shall award grants of up to $20,000 to eligible individuals to pursue a training program relevant to a career in the legal cannabis industry. deleted text end

deleted text begin (b) To receive grant money, an eligible individual must submit a written application to the commissioner, using a form developed by the commissioner, identifying a training program relevant to the legal cannabis industry and the estimated cost of completing that training. The application must also indicate whether: deleted text end

deleted text begin (1) the applicant is eligible to be a social equity applicant; deleted text end

deleted text begin (2) the proposed training program results in an industry-relevant credential; and deleted text end

deleted text begin (3) the proposed training program includes opportunities for hands-on or on-site experience in the industry. deleted text end

deleted text begin The commissioner shall attempt to make the application process simple for individuals to complete, such as by publishing lists of industry-relevant training programs along with the training program's estimated cost of completing the training programs and whether the training programs will result in an industry-relevant credential or include opportunities for hands-on or on-site experience in the legal cannabis industry. deleted text end

deleted text begin (c) The commissioner must award grants to eligible individuals through a lottery process. Applicants who have filed complete applications by the deadline set by the commissioner shall receive one entry in the lottery, plus one additional entry for each of the following: deleted text end

deleted text begin (1) being eligible to be a social equity applicant; deleted text end

deleted text begin (2) seeking to enroll in a training program that results in an industry-relevant credential; and deleted text end

deleted text begin (3) seeking to enroll in a training program that includes opportunities for hands-on or on-site experience in the industry. deleted text end

deleted text begin (d) Grant money awarded to eligible individuals shall be used to pay the costs of enrolling in a training program relevant to the legal cannabis industry, including tuition, fees, and materials costs. Grant money may also be used to remove external barriers to attending such a training program, such as the cost of child care, transportation, or other expenses approved by the commissioner. deleted text end

Subd. 5.

Program outreach.

The commissioner shall make extensive efforts to publicize these grants, including through partnerships with community organizations, particularly those organizations located in areas where long-term residents are eligible to be social equity applicants.

Subd. 6.

Reports to the legislature.

By January 15, 2024, and each January 15 thereafter, the commissioner must submit a report to the chairs and ranking minority members of the committees of the house of representatives and the senate having jurisdiction over workforce development that describes awards given through the CanTrain program and the use of grant money, including any measures of success toward training people for successful careers in the legal cannabis industry.

Sec. 15.

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

Subd. 2.

Definitions.

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

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

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

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

deleted text begin (e) deleted text end new text begin (d) new text end "Pre-enrollment" means the period of time before an individual was enrolled in a workforce program.

Sec. 16.

Minnesota Statutes 2024, section 116L.98, subdivision 3, is amended to read:

Subd. 3.

Uniform outcome report card; reporting by commissioner.

(a) By December 31 deleted text begin of deleted text end each deleted text begin even-numbered deleted text end year, the commissioner must report to the chairs and ranking minority members of the committees of the house of representatives and the senate having jurisdiction over economic development and workforce policy and finance the following information separately for deleted text begin each of deleted text end the previous deleted text begin two deleted text end fiscal or calendar deleted text begin years deleted text end new text begin year new text end , for each program subject to the requirements of subdivision 1:

(1) the total number of participants enrolled;

(2) the median pre-enrollment wages based on participant wages for the second through the fifth calendar quarters immediately preceding the quarter of enrollment excluding those with zero income;

(3) the total number of participants with zero income in the second through fifth calendar quarters immediately preceding the quarter of enrollment;

(4) the total number of participants enrolled in training;

(5) the total number of participants enrolled in training by occupational group;

(6) the total number of participants that exited the program and the average enrollment duration of participants that have exited the program during the year;

(7) the total number of exited participants who completed training;

(8) the total number of exited participants who attained a credential;

(9) the total number of participants employed during three consecutive quarters immediately following the quarter of exit, by industry;

(10) the median wages of participants employed during three consecutive quarters immediately following the quarter of exit;

(11) the total number of participants employed during eight consecutive quarters immediately following the quarter of exit, by industry;

(12) the median wages of participants employed during eight consecutive quarters immediately following the quarter of exit;

(13) the total cost of the program;

(14) the total cost of the program per participant;

(15) the cost per credential received by a participant; and

(16) the administrative cost of the program.

(b) new text begin In addition to meeting any reporting requirements included in the grant agreement, each program grant recipient and any individually specified grantee named in an appropriation to be administered by or through the commissioner is subject to this section and must provide the following information to the commissioner: new text end

new text begin (1) a summary of the purpose of the grant; new text end

new text begin (2) the amount of the grant awarded to the grantee; new text end

new text begin (3) the amount of previous grants issued by or through the commissioner of employment and economic development to the grantee for the previous four years; new text end

new text begin (4) to the extent that participant geographic data is available, if a grantee uses grant money to provide services to persons who reside outside of Minnesota, the grantee must list the states where non-Minnesotan participants reside and an explanation of why grant money was used to provide services to non-Minnesota residents; and new text end

new text begin (5) the organization's charitable giving ratio if available on the grantee's Internal Revenue Service Form 990. new text end

new text begin The commissioner must provide the information required in this paragraph for each grantee separately in the report required under paragraph (a). A grantee must provide updated information required to complete the report under paragraph (a) to the commissioner annually by October 1 until October 1 in the year when all of the grant funds have been spent or canceled. new text end

new text begin (c) new text end The report to the legislature must contain participant information by education level, race and ethnicity, gender, and geography, and a comparison of exited participants who completed training and those who did not.

deleted text begin (c) deleted text end new text begin (d) new text end The requirements of this section apply to programs administered directly by the commissioner or administered by other organizations under a grant made by the department.

new text begin (e) As a condition of receiving a grant from the department, a grantee must agree to provide the commissioner any information necessary to complete the report required by this section. new text end

Sec. 17.

Minnesota Statutes 2024, section 116L.98, subdivision 6, is amended to read:

Subd. 6.

Limitations on future appropriations.

(a) A program new text begin , program grantee, or direct appropriation grant recipient new text end that is a recipient of public funds and subject to the requirements of this section as of May 1, deleted text begin 2014 deleted text end new text begin 2025 new text end , is not eligible for additional state appropriations for any fiscal year beginning after June 30, deleted text begin 2015 deleted text end new text begin 2026 new text end , new text begin and the commissioner may withhold grant disbursements from a grantee, new text end unless all of the reporting requirements under deleted text begin subdivision deleted text end new text begin subdivisions 3 and new text end 4 have been satisfied.

(b) A program new text begin , program grantee, or direct appropriation grant recipient new text end with an initial request for funds on or after July 1, deleted text begin 2014 deleted text end new text begin 2025 new text end , may be considered for receipt of public funds for the first two fiscal years only if a plan that demonstrates how the data collection and reporting requirements under deleted text begin subdivision deleted text end new text begin subdivisions 3 and new text end 4 will be met has been submitted and approved by the commissioner. Any subsequent request for funds after an initial request is subject to the requirements of paragraph (a).

Sec. 18.

Minnesota Statutes 2024, section 116M.18, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Revolving loan fund deleted text end new text begin Minnesota emerging entrepreneur program account new text end .

(a) deleted text begin The department shall establish a revolving loan fund deleted text end new text begin A Minnesota emerging entrepreneur program account is created in the special revenue fund in the state treasury. Money in the account is appropriated to the commissioner for revolving loans new text end to make grants to nonprofit corporations, Tribal economic development entities, and community development financial institutions for the purpose of making loans to businesses owned by minority or low-income persons, women, veterans, or people with disabilities, and to support minority business enterprises and job creation for minority and low-income persons.

(b) Nonprofit corporations, Tribal economic development entities, and community development financial institutions that receive grants from the department under the program must establish a commissioner-certified revolving loan fund for the purpose of making eligible loans.

(c) Eligible business enterprises include, but are not limited to, technologically innovative industries, value-added manufacturing, and information industries.

(d) Loan applications given preliminary approval by the nonprofit corporation, Tribal economic development entity, or community development financial institution must be forwarded to the department. Nonprofit corporations, Tribal economic development entities, and community development financial institutions designated as preferred partners do not need final approval by the commissioner. All other loans must be approved by the commissioner and the commissioner must make approval decisions within 20 days of receiving a loan application unless the application contains insufficient information to make an approval decision. The amount of the state funds contributed to any loan may not exceed 50 percent of each loan. The commissioner must develop the criteria necessary to receive loan forgiveness.

Sec. 19.

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

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

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

Sec. 20.

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

116U.06 EXPLORE MINNESOTA TOURISM.

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

Sec. 21.

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

116U.15 MISSION.

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

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

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

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

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

Sec. 22.

Minnesota Statutes 2024, section 116U.30, is amended to read:

116U.30 DUTIES OF DIRECTOR.

(a) The director shall:

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

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

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

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

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

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

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

(8) provide local, regional, and statewide organizations with information, deleted text begin technical assistance deleted text end new text begin educational opportunities new text end , training, and advice on deleted text begin using state tourism and livability information and deleted text end new text begin promotional new text end programs new text begin related to the office's mission new text end ; and

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

(b) The director may:

(1) apply for, receive, and spend money deleted text begin for travel, tourism, workforce and economic development, and overall livability development and marketing deleted text end new text begin , as it relates to the mission of the office, new text end from other agencies, organizations, and businesses;

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

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

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

(5) make grants;

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

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

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

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

(c) Contracts for goods and deleted text begin nonprofessional deleted text end new text begin services and professional new text end technical services made under paragraph (b), clauses (3) and (9), are not subject to the provisions of sections 16C.03, subdivision 3, and 16C.06 concerning competitive bidding and section 16C.055 concerning barter arrangements. new text begin Professional technical service new text end contracts new text begin that promote Minnesota as a tourism travel destination or a talent attraction new text end may be negotiated and are not subject to the provisions of chapter 16C relating to competitive bidding.

Sec. 23.

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

116U.35 PROMOTIONAL EXPENSES.

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

Sec. 24.

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

Subd. 7.

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

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

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

Sec. 25.

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

Subd. 8.

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

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

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

(1) purchase, upkeep and replacement of equipment;

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

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

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

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

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

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

Sec. 26.

Minnesota Statutes 2024, section 268.184, subdivision 1, is amended to read:

Subdivision 1.

Misrepresentation; administrative penalties.

(a) The commissioner must penalize an employer if that employer or any employee, officer, or agent of that employer made a false statement or representation without a good faith belief as to correctness of the statement or representation or knowingly failed to disclose a material fact in order to:

(1) assist an applicant to receive unemployment benefits to which the applicant is not entitled;

(2) prevent or reduce the payment of unemployment benefits to an applicant; or

(3) avoid or reduce any payment required from an employer under this chapter or section 116L.20.

The penalty is the greater of $500 or deleted text begin 50 deleted text end new text begin 100 new text end percent of the following resulting from the employer's action:

(i) the amount of any overpaid unemployment benefits to an applicant;

(ii) the amount of unemployment benefits not paid to an applicant that would otherwise have been paid; or

(iii) the amount of any payment required from the employer under this chapter or section 116L.20 that was not paid.

(b) The commissioner must penalize an employer if that employer failed or refused to honor a subpoena issued under section 268.188. The penalty is $500 and any costs of enforcing the subpoena, including attorney fees.

(c) Penalties under this subdivision and under section 268.047, subdivision 4, paragraph (b), are in addition to any other penalties and subject to the same collection procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of issuance of the determination of penalty and credited to the trust fund.

(d) The determination of penalty is final unless the employer files an appeal within 45 calendar days after the sending of the determination of penalty to the employer by mail or electronic transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for penalties imposed on or after October 1, 2025. new text end

Sec. 27.

Minnesota Statutes 2024, section 268B.14, subdivision 7, is amended to read:

Subd. 7.

Premium rate adjustments.

The commissioner may adjust the annual premium rates pursuant to this section prior to January 1, 2026. By July 31, 2026, and then by July 31 of each year thereafter, the commissioner must adjust the annual premium rates for the following calendar year based on program historical experience and sound actuarial principles and so that the projected fund balance as a percentage of total program expenditure does not fall below 25 percent. The commissioner shall contract with a qualified independent actuarial consultant to conduct an actuarial study for this purpose no less than every year. A copy of all actuarial studies, and any revisions or other documents received that relate to an actuarial study, must be provided promptly to the chairs and ranking minority members of the legislative committees with jurisdiction over this chapter. All actuarial studies, and any revisions or other documents received that relate to an actuarial study, must also be filed with the Legislative Reference Library in compliance with section 3.195. A qualified independent actuarial consultant is one who is a Fellow of the Society of Actuaries (FSA) and a Member of the American Academy of Actuaries (MAAA) and who has experience directly relevant to the analysis required. In no year shall the annual premium rate exceed deleted text begin 1.2 deleted text end new text begin 1.1 new text end percent of taxable wages paid to each employee.

Sec. 28.

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

Subd. 4.

Credit for parking revenue.

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

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

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

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

Sec. 29.

Laws 2023, chapter 53, article 15, section 33, subdivision 4, as amended by Laws 2024, chapter 120, article 9, section 5, is amended to read:

Subd. 4.

Loans to community businesses.

(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.

(b) Under the plan:

(1) the state contribution to each loan shall be no less than deleted text begin $50,000 deleted text end new text begin $10,000 new text end and no more than $500,000;

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

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

(4) the fee or interest rate on a loan shall not be higher than the Wall Street Journal prime rate plus two percent, with a maximum of ten percent;

(5) 50 percent of all repayments of principal on a loan under the program shall be used to fund additional related lending. The partner organization may retain the remainder of loan repayments to service loans and provide further technical assistance;

(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;

(7) a partner organization may not make a loan to a project in which it has an ownership interest; and

(8) up to 15 percent of a loan's principal amount may be forgiven by the partner organization if the borrower has met all lending criteria developed by the partner organization and the commissioner, including creating or retaining jobs and being current with all loan payments, for at least two years.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Laws 2023, chapter 53, article 18, 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) "Business" means both for-profit businesses and nonprofit organizations that earn revenue in ways similar to businesses.

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

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

(e) new text begin "Prior taxable year" means the most recently completed tax year to the calendar year that an application is submitted. new text end

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

new text begin (g) "Taxpayer" has the meaning given in Minnesota Statutes, section 290.01, subdivision 6. 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.

Laws 2023, chapter 53, article 18, section 2, subdivision 4, is amended to read:

Subd. 4.

Grants to businesses.

(a) Partners shall make grants to businesses using criteria, forms, applications, and reporting requirements developed by the partner organization and approved by the commissioner.

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

(1) have primary business operations located in the state of Minnesota;

(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

(3) have a gross annual revenue of $750,000 or less based on deleted text begin 2021 taxes deleted text end new text begin the prior taxable year new text end .

new text begin (c) In addition to the requirements under paragraph (a), if a taxpayer's business meets the requirements of paragraph (b), clause (2), and the business location is the taxpayer's residence, the taxpayer must have claimed and been allowed the deduction under section 280A(c)(1) of the Internal Revenue Code, in the prior taxable year. new text end

deleted text begin (c) deleted text end new text begin (d) new text end Preference shall be given to businesses that did not receive previous assistance of more than $10,000 cumulatively from the state under:

(1) the governor's Executive Order No. 20-15;

(2) Laws 2020, First Special Session chapter 1, section 4;

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

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

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

deleted text begin (e) deleted text end new text begin (f) Preference shall be given to businesses that were in operation in 2021 and had revenue of $750,000 or less based on the prior year tax documentation submitted under paragraph (b), clause (3). new text end

new text begin (g) new text end Grants under this subdivision must not exceed:

(1) $10,000 for businesses with a gross revenue in the prior year of $100,000 or less;

(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

(3) $50,000 for businesses with a gross revenue in the prior year of more than $350,000 but no more than $750,000.

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

deleted text begin (g) deleted text end new text begin (i) new text end 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 begin EFFECTIVE DATE. new text end

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

Sec. 32.

Laws 2023, chapter 53, article 18, section 3, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

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

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

(e) "Eligible recipient" means a:

(1) business;

(2) nonprofit organization; or

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

Eligible recipients must: (i) have primary operations located in the state of Minnesota; (ii) have gross annual revenue of less than deleted text begin $1,000,000 deleted text end new text begin $1,500,000 new text end based on deleted text begin 2021 taxes deleted text end new text begin the prior taxable year new text end ; 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.

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

(g) "Program" means the PROMISE loan program under this section.

(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 begin EFFECTIVE DATE. new text end

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

Sec. 33.

Laws 2023, chapter 53, article 18, section 3, subdivision 4, is amended to read:

Subd. 4.

Loans to eligible recipients.

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

(1) be for no more than deleted text begin $1,000,000 deleted text end new text begin $1,500,000 new text end ;

(2) be for a term of no more than deleted text begin ten deleted text end new text begin 20 new text end years; and

(3) not charge an interest rate of more than three percent.

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

(c) All payments of interest on a loan under this section are the property of the partner organization deleted text begin and shall be used for its administrative and operating expenses under the program deleted text end .

(d) A partner organization may:

(1) charge a loan origination fee of no more than one percent per loan; and

(2) charge a monthly fee in lieu of interest.

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.

Laws 2023, chapter 53, article 18, section 3, subdivision 5, is amended to read:

Subd. 5.

Revolving loan fund.

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 begin Funds repaid to the partner organization are not limited in their uses by the language in this section, except that funds repaid may not be used for loans for speculation or investment in rental real estate. 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. 35.

new text begin IRON ORE MINING ADDITIONAL UNEMPLOYMENT BENEFITS PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Availability of additional benefits. new text end

new text begin Additional unemployment benefits are available from the Minnesota unemployment insurance trust fund to an applicant who was laid off due to lack of work on or after March 15, 2025, and before June 16, 2025, from: new text end

new text begin (1) an employer in the iron ore mining industry that laid off 40 percent or more of the employer's workforce on or after March 15, 2025, and before June 16, 2025; or new text end

new text begin (2) an employer that is in the explosive manufacturing industry providing goods or services to an employer in the iron ore mining industry if the applicant was laid off due to the cessation or substantial reduction in operations of an employer in the iron ore mining industry as described in clause (1). new text end

new text begin Subd. 2. new text end

new text begin Eligibility requirements. new text end

new text begin An applicant is eligible to receive additional unemployment benefits under this section for any week through the week ending June 20, 2026, if: new text end

new text begin (1) the applicant established a benefit account under Minnesota Statutes, section 268.07, with 50 percent or greater of the wage credits from an employer as described in subdivision 1, and has exhausted the maximum amount of regular unemployment benefits available on that benefit account; and new text end

new text begin (2) the applicant meets the same requirements that an applicant for regular unemployment benefits must meet under Minnesota Statutes, section 268.069, subdivision 1. new text end

new text begin Subd. 3. new text end

new text begin Weekly and maximum amount of additional unemployment benefits. new text end

new text begin (a) The weekly benefit amount of additional unemployment benefits is the same as the weekly benefit amount of regular unemployment benefits on the benefit account established in subdivision 2, clause (1). new text end

new text begin (b) The maximum amount of additional unemployment benefits available to an applicant under this section is an amount equal to 26 weeks of payment at the applicant's weekly additional unemployment benefit amount. new text end

new text begin (c) If an applicant qualifies for a new regular benefit account that meets the requirements of subdivision 4, paragraph (b), before the applicant has been paid additional unemployment benefits, and the new regular benefit account meets the requirements of subdivision 2, clause (1), the applicant's weekly additional unemployment benefit amount is equal to the weekly unemployment benefit amount on the applicant's new regular benefit account. new text end

new text begin Subd. 4. new text end

new text begin Qualifying for a new regular benefit account. new text end

new text begin (a) If, after exhausting the maximum amount of regular unemployment benefits available as a result of the layoff under subdivision 1, an applicant qualifies for the new regular benefit account under Minnesota Statutes, section 268.07, the applicant must apply for and establish the new regular benefit account. new text end

new text begin (b) If the applicant's weekly benefit amount under the new regular benefit account is equal to or higher than the applicant's weekly additional unemployment benefit amount, the applicant must request unemployment benefits under the new regular benefit account. An applicant is ineligible for additional unemployment benefits under this section until the applicant has exhausted the maximum amount of unemployment benefits available on the new regular benefit account. new text end

new text begin (c) If the applicant's weekly unemployment benefit amount on the new regular benefit account is less than the applicant's weekly benefit amount of additional unemployment benefits, the applicant must request additional unemployment benefits. An applicant is ineligible for new regular unemployment benefits until the applicant has exhausted the maximum amount of additional unemployment benefits available under this section. new text end

new text begin Subd. 5. new text end

new text begin Eligibility for federal Trade Readjustment Allowance benefits. new text end

new text begin An applicant who has applied and been determined eligible for federal Trade Readjustment Allowance benefits is not eligible for additional unemployment benefits under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from March 15, 2025. new text end

Sec. 36.

new text begin CHANGE STARTS WITH COMMUNITY VIOLENCE PREVENTION PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Objectives. new text end

new text begin Change Starts With Community must: new text end

new text begin (1) develop and implement year-round job training programs for at-risk youth and adults and provide trusted adult mentorship for at-risk Black, Indigenous, and People of Color youth, providing them with the skills needed for gainful employment and career opportunities; and new text end

new text begin (2) create on-site job opportunities at Shiloh Cares Food Shelf - Northside Community Safety Resource Center, promoting community engagement and economic development. new text end

new text begin Subd. 2. new text end

new text begin Partnership. new text end

new text begin Change Starts With Community shall partner with the Cargill Foundation to support at-risk youth educational career exposure field trips and exposing participants to the Change Starts With Community Agrihood garden and preventing further trauma through field trips for youth. new text end

new text begin Subd. 3. new text end

new text begin At-risk youth and adult job program positions. new text end

new text begin Change Starts With Community must use grant proceeds to add positions to the program's complement, including but not limited to adult food service workers, youth food service workers, an executive director, operations director, program coordinator, and food shelf manager. new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin Beginning in fiscal year 2026, Change Starts With Community shall report to the commissioner of employment and economic development outlining the use of grant money, program outcomes, and the impact on the targeted population. The report must be submitted no later than six months after the end of each fiscal year. new text end

Sec. 37.

new text begin TASK FORCE ON WORKFORCE DEVELOPMENT SYSTEM REFORM. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Task Force on Workforce Development System Reform is established to examine and improve how the state develops strategies, sets goals, and allocates money to meet Minnesota's workforce development needs. This examination must include a review of programs, funding mechanisms, and evaluation metrics. new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force consists of the following members: new text end

new text begin (1) the commissioner of employment and economic development or the commissioner's designee; new text end

new text begin (2) two senators, with each of the two largest senate caucuses appointing one member; new text end

new text begin (3) two representatives, with each of the two largest house caucuses appointing one member; and new text end

new text begin (4) four members of the governor's Workforce Development Board, appointed by the chair of the governor's Workforce Development Board, who represent local workforce development boards from communities across the state. new text end

new text begin (b) Appointments to the task force must be made within 30 days after the effective date of this section. new text end

new text begin (c) Member compensation and reimbursement for expenses are governed by Minnesota Statutes, section 15.059, subdivision 3. new text end

new text begin Subd. 3. new text end

new text begin Chairs; meetings. new text end

new text begin (a) The commissioner of employment and economic development must convene the first meeting of the task force no later than eight weeks after the effective date of this act. At the first meeting, members must elect two co-chairs from among the task force members. new text end

new text begin (b) The task force must meet a minimum of six times between the effective date of this section and January 15, 2027. new text end

new text begin (c) Task force meetings are subject to the Open Meeting Law under Minnesota Statutes, chapter 13D. new text end

new text begin Subd. 4. new text end

new text begin Administrative support. new text end

new text begin The commissioner of employment and economic development must provide administrative support and meeting space for the task force. new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin At a minimum, the task force must: new text end

new text begin (1) review existing workforce development programs in Minnesota, including those funded by the federal and state governments; new text end

new text begin (2) study the current system for funding workforce development efforts; new text end

new text begin (3) investigate potential metrics for evaluating workforce development program outcomes; new text end

new text begin (4) make recommendations for changes to practices, programs, funding, and laws related to state workforce development efforts; and new text end

new text begin (5) propose draft legislation to implement any of the task force's recommendations. new text end

new text begin Subd. 6. new text end

new text begin Community and stakeholder input. new text end

new text begin In pursuing its duties under subdivision 5, the task force must seek input statewide, with an emphasis on (1) hearing from communities with unemployment rates significantly above the state average or workforce participation rates significantly below the state average and (2) consulting with other relevant stakeholders, including workforce development providers, the state's ethnic councils, and the state demographer. new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin No later than February 15, 2026, the task force must submit a preliminary written report and, no later than January 15, 2027, the task force must submit a final written report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over workforce development. Each report must outline a description of the task force's activities, how the task force addressed each duty described in subdivision 5, any recommendations made by the task force, and any proposed legislation recommended by the task force. new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin The task force expires January 16, 2027. 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. 38.

new text begin REVISOR INSTRUCTION. new text end

new text begin The revisor of statutes shall change the term "small business growth acceleration program" to "Made in Minnesota program" wherever it appears in Minnesota Statutes, section 116O.115. new text end

Sec. 39.

new text begin REPEALER. new text end

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

ARTICLE 5

DEPARTMENT OF LABOR AND INDUSTRY POLICY

Section 1.

Minnesota Statutes 2024, section 177.253, subdivision 1, is amended to read:

Subdivision 1.

Rest breaks.

An employer must allow each employee deleted text begin adequate time from work deleted text end new text begin a rest break of at least 15 minutes or enough time to utilize the nearest convenient restroom, whichever is longer, new text end within each four consecutive hours of work deleted text begin to utilize the nearest convenient restroom deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 2.

Minnesota Statutes 2024, section 177.253, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Remedies. new text end

new text begin If an employer does not allow an employee rest breaks as required by this section and related rules, the employer is liable to the employee for the rest break time that should have been allowed at the employee's regular rate of pay, plus an additional equal amount as liquidated damages. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 3.

Minnesota Statutes 2024, section 177.254, subdivision 1, is amended to read:

Subdivision 1.

Meal break.

An employer must deleted text begin permit deleted text end new text begin allow new text end each employee who is working for deleted text begin eight deleted text end new text begin six new text end or more consecutive hours deleted text begin sufficient time to eat deleted text end a meal new text begin break of at least 30 minutes new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 4.

Minnesota Statutes 2024, section 177.254, subdivision 2, is amended to read:

Subd. 2.

Payment not required.

new text begin Except for subdivision 4, new text end new text begin new text end nothing in this section requires the employer to pay the employee during the meal break.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 5.

Minnesota Statutes 2024, section 177.254, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Remedies. new text end

new text begin If an employer does not allow an employee meal breaks as required by this section and related rules, the employer is liable to the employee for the meal break time that should have been allowed at the employee's regular rate of pay, plus an additional equal amount as liquidated damages. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 6.

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

Subd. 5.

Civil actions.

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

Sec. 7.

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

Subd. 7.

Nursing home.

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

Sec. 8.

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

Subd. 8.

Nursing home employer.

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

Sec. 9.

Minnesota Statutes 2024, section 181.725, is amended by adding a subdivision to read:

new text begin Subd. 4b. new text end

new text begin Misclassification fraud impact report. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (e) By January 15, 2031, and every six years thereafter, the commissioners of revenue, employment and economic development, and labor and industry must submit a budget request to the chairs and ranking minority members of the legislative committees with jurisdiction over labor outlining the cost to complete a follow-up report under paragraph (b). new text end

Sec. 10.

Minnesota Statutes 2024, section 181.9447, subdivision 2, is amended to read:

Subd. 2.

Notice.

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 deleted text begin soon as practicable deleted text end new text begin reasonably required by the employer new text end . 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.

Sec. 11.

Minnesota Statutes 2024, section 181.9447, subdivision 3, is amended to read:

Subd. 3.

Documentation.

(a) When an employee uses earned sick and safe time for more than deleted text begin three deleted text end new text begin two new text end consecutive scheduled work days, an employer may require reasonable documentation that the earned sick and safe time is covered by subdivision 1.

(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).

(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. If documentation cannot be obtained 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 under subdivision 1, clause (3).

(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.

(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.

(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.

Sec. 12.

Minnesota Statutes 2024, section 181.9447, subdivision 4, is amended to read:

Subd. 4.

Replacement worker.

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 begin This subdivision does not prohibit an employee from voluntarily seeking or trading shifts with a replacement worker to cover the hours the employee uses as earned sick and safe time. new text end

Sec. 13.

Minnesota Statutes 2024, section 181.9448, subdivision 1, is amended to read:

Subdivision 1.

Effect on more generous sick and safe time policies.

(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. All paid time off and other paid leave made available to an employee by an employer in excess of the minimum amount required in section 181.9446 for absences from work due to personal illness or injury, but not including short-term or long-term disability or other salary continuation benefits, must meet or exceed the minimum standards and requirements provided in sections 181.9445 to 181.9448, except for section 181.9446. For paid leave accrued prior to January 1, 2024, for absences from work due to personal illness or injury, an employer may require an employee who uses such leave to follow the written notice and documentation requirements in the employer's applicable policy or applicable collective bargaining agreement as of December 31, 2023, in lieu of the requirements of section 181.9447, subdivisions 2 and 3, provided that an employer does not require an employee to use leave accrued on or after January 1, 2024, before using leave accrued prior to that date.

(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.

(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.

(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.

(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.

(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.

(g) The requirements of section 181.9447, subdivision 3, may be waived for paid leave made available to an employee by an employer for absences from work in excess of the minimum amount required in section 181.9446 through a collective bargaining agreement with a labor organization that has established itself as the collective bargaining representative for the employees, provided that for such waiver to be valid, it shall explicitly reference section 181.9447, subdivision 3, and clearly and unambiguously waive application of that subdivision to such employees.

(h) An individual provider, as defined in section 256B.0711, subdivision 1, paragraph (d), who provides services through a consumer support grant under section 256.476, consumer-directed community supports under section 256B.4911, or community first services and supports under section 256B.85, to a family member who is a participant, as defined in section 256B.0711, subdivision 1, paragraph (e), may individually waive the provisions of sections 181.9445 to 181.9448 for the remainder of the participant's service plan year, provided that the funds are returned to the participant's budget. Once an individual provider has waived the provisions of sections 181.9445 to 181.9448, they may not accrue earned sick and safe time until the start of the participant's next service plan year.

(i) 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.

(j) 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 begin An employer is permitted to advance earned sick and safe time to an employee based on the number of hours the employee is anticipated to work for the remaining portion of an accrual year. If the advanced amount is less than the amount the employee would have accrued based on the actual hours worked, the employer must provide additional earned sick and safe time to make up the difference. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 14.

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

Subd. 4.

Internet continuing education.

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

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

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

(d) An Internet continuing education course must:

(1) specify the minimum computer system requirements;

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

(3) include technology to guarantee seat time;

(4) include a high level of interactivity;

(5) include graphics that reinforce the content;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 15.

Minnesota Statutes 2024, section 326B.103, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Closed construction. new text end

new text begin "Closed construction" means any building manufactured in such a manner that all portions cannot be readily inspected at the installation site without disassembly, damage to, or destruction thereof. new text end

Sec. 16.

Minnesota Statutes 2024, section 326B.103, is amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Industrialized or modular building. new text end

new text begin "Industrialized or modular building" means a building of closed construction, constructed so that concealed parts or processes of manufacture cannot be inspected at the site, without disassembly, damage, or destruction, and made or assembled in manufacturing facilities, off the building site, for installation, or assembly and installation, on the building site. Industrialized or modular building includes, but is not limited to, modular housing that is factory-built single-family and multifamily housing, including closed-wall-panelized housing, and other modular, nonresidential buildings. Industrialized or modular building does not include a structure subject to the requirements of the National Manufactured Home Construction and Safety Standards Act of 1974 or prefabricated buildings. new text end

Sec. 17.

Minnesota Statutes 2024, section 326B.103, is amended by adding a subdivision to read:

new text begin Subd. 8b. new text end

new text begin Manufactured home. new text end

new text begin "Manufactured home" has the meaning provided in Code of Federal Regulations, title 24, section 3280.2. new text end

Sec. 18.

Minnesota Statutes 2024, section 326B.103, is amended by adding a subdivision to read:

new text begin Subd. 10a. new text end

new text begin Prefabricated building. new text end

new text begin "Prefabricated building" means any building or building module intended for use as an R-3, one- or two-family dwelling, or a U-1 accessory building, that is of closed construction and is constructed on or off the building site for installation, or on the building site for assembly and installation. Prefabricated building does not include relocatable contractors offices or storage buildings that are (1) 1,500 square feet or less in floor area, (2) designed for temporary use by a contractor at a construction site, (3) not to be used by the general public or as a sales office, and (4) to be removed prior to or upon completion of the construction project. new text end

Sec. 19.

new text begin [326B.154] INDUSTRIALIZED MODULAR OR PREFABRICATED BUILDINGS PLAN REVIEW AND INSPECTION FEES. new text end

new text begin Subdivision 1. new text end

new text begin Plan review fees. new text end

new text begin (a) The fees under this section relate to plan review and inspection of industrialized or modular buildings as defined in Minnesota Statutes, section 326B.103, subdivision 8a, and prefabricated buildings as defined in Minnesota Statutes, section 326B.103, subdivision 10a. new text end

new text begin (b) Fees for the review of quality-control manuals, systems manuals, and related documents submitted as required by section 326B.106 are $125 per hour. new text end

new text begin (c) Fees for the review of building plans, specifications, installation instructions, and related documents submitted as required by section 326B.106 include 65 percent of the fee as set forth in the fee schedule in paragraph (d), but not less than $135. new text end

new text begin (d) If the total cost of materials and labor for in-plant manufacture of the building is in the noted range, the fee is as shown: new text end

new text begin (1) $0 to $5,000, $135; new text end

new text begin (2) $5,001 to $25,000, $135 for the first $5,000, plus $16.55 for each additional $1,000 or fraction thereof, to and including $25,000; new text end

new text begin (3) $25,001 to $50,000, $464.15 for the first $25,000, plus $12 for each additional $1,000 or fraction thereof, to and including $50,000; new text end

new text begin (4) $50,001 to $100,000, $764.15 for the first $50,000, plus $8.45 for each additional $1,000 or fraction thereof, to and including $100,000; new text end

new text begin (5) $100,001 to $500,000, $1,186.65 for the first $100,000, plus $6.75 for each additional $1,000 or fraction thereof, to and including $500,000; new text end

new text begin (6) $500,001 to $1,000,000, $3,886.65 for the first $500,000, plus $5.50 for each additional $1,000 or fraction thereof, to and including $1,000,000; and new text end

new text begin (7) $1,000,001 and over, $6,636.65 for the first $1,000,000, plus $4.50 for each additional $1,000 or fraction thereof. new text end

new text begin Subd. 2. new text end

new text begin Inspections and audit fees. new text end

new text begin Fees for the inspection and audit of approved quality-control manuals, systems manuals, building plans, specifications, and related documents submitted as required by section 326B.106 are $125 per hour. new text end

new text begin Subd. 3. new text end

new text begin Other inspections and fees. new text end

new text begin (a) Fees for the following are as stated: new text end

new text begin (1) inspections outside of regular business hours, $188 per hour, minimum charge two hours; new text end

new text begin (2) reinspection fees during regular business hours, $125 per hour; new text end

new text begin (3) inspections for which no fee is specifically indicated, minimum charge one hour, $125 per hour; and new text end

new text begin (4) additional plan review required by changes, additions, or revisions to approved plans, quality-control manuals, and systems manuals, minimum charge one hour, $125 per hour. new text end

new text begin (b) For the purposes of this section, "regular business hours" means Monday to Friday, 7:00 a.m. to 5:00 p.m. new text end

new text begin Subd. 4. new text end

new text begin Surcharge. new text end

new text begin Surcharge fees are required for permits issued on all buildings including public buildings and state-licensed facilities as required by section 326B.148. new text end

new text begin Subd. 5. new text end

new text begin Fee distribution between state and municipalities. new text end

new text begin (a) The commissioner shall provide plan review and inspections services for all work occurring in the manufacturing facility; plan review of the composite modular construction; and plan review of the structural foundation, interconnection of the modules, attachments of modular systems to the building foundation, and integration of plumbing, mechanical, and electrical systems. new text end

new text begin (b) For projects not defined as public buildings or state licensed facilities, the municipal building official shall provide plan review for all nonmodular on-site construction and shall provide inspections for the entire composite building. The municipality may charge a full plan review fee in accordance with the municipality's fee schedule for construction performed on site. The municipality shall issue construction permits and charge permit fees for all work occurring on site. The municipality shall issue a construction permit and charge permit fees for the valuation of work associated with building module placement, attachment, and associated utility connections to each module and overall building systems. new text end

new text begin (c) For projects defined as public buildings or state-licensed facilities, the commissioner shall provide plan review for all modular and nonmodular construction and shall provide inspections for the entire composite building. Municipalities with state delegation agreements must distribute work according to this paragraph. new text end

Sec. 20.

Minnesota Statutes 2024, section 326B.184, subdivision 1a, is amended to read:

Subd. 1a.

Department permit and inspection fees.

(a) The department permit and inspection fees to construct, install, alter, repair, or remove an elevator are as follows:

(1) the permit fee is $100;

(2) the inspection fee is 0.015 of the total cost of the permitted work for labor and materials, including related electrical and mechanical equipment. The inspection fee covers two inspections. The inspection fee for additional inspections is $80 per hour;

new text begin (3) the fee for each separate remote virtual inspection of a stairway chairlift installation or other authorized devices at a private residence is $10; new text end

deleted text begin (3) deleted text end new text begin (4) new text end when inspections scheduled by the permit submitter are not able to be completed because the work is not complete, a fee equal to two hours at the hourly rate of $80 must be paid by the permit submitter; and

deleted text begin (4) deleted text end new text begin (5) new text end when the owner or permit holder requests inspections be performed outside of normal work hours or on weekends or holidays, an hourly rate of $120 in addition to the inspection fee must be paid.

(b) The department fees for inspection of existing elevators when requested by the elevator owner or as a result of an accident resulting in personal injury are at an hourly rate of $80 during normal work hours or $120 outside of normal work hours or on weekends or holidays, with a one-hour minimum.

Sec. 21.

Minnesota Statutes 2024, section 326B.184, subdivision 2, is amended to read:

Subd. 2.

Operating permits and fees; periodic inspections.

(a) No person may operate an elevator without first obtaining an annual operating permit from the department or a municipality authorized by subdivision 4 to issue annual operating permits. A deleted text begin $100 deleted text end new text begin $145 new text end annual operating permit fee must be paid to the department for each annual operating permit issued by the department, except that the original annual operating permit must be included in the permit fee for the initial installation of the elevator. Annual operating permits must be issued at 12-month intervals from the date of the initial annual operating permit. For each subsequent year, an owner must be granted an annual operating permit for the elevator upon the owner's or owner's agent's submission of a form prescribed by the commissioner and payment of the deleted text begin $100 deleted text end new text begin $145 new text end fee. Each form must include the location of the elevator, the results of any periodic test required by the code, and any other criteria established by rule. An annual operating permit may be revoked by the commissioner upon an audit of the periodic testing results submitted with the application or a failure to comply with elevator code requirements, inspections, or any other law related to elevators. Except for an initial operating permit fee, elevators in residential dwellings, hand-powered manlifts and electric endless belt manlifts, and vertical reciprocating conveyors are not subject to a subsequent operating permit fee.

(b) All elevators are subject to periodic inspections by the department or a municipality authorized by subdivision 4 to perform periodic inspections, except that hand-powered manlifts and electric endless belt manlifts are exempt from periodic inspections. Periodic inspections by the department shall be performed at the following intervals:

(1) a special purpose personnel elevator is subject to inspection not more than once every five years;

(2) an elevator located within a house of worship that does not have attached school facilities is subject to inspection not more than once every three years; and

(3) all other elevators are subject to inspection not more than once each year.

Sec. 22.

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

Subd. 29.

Technology circuits or systems.

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

Sec. 23.

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

Subd. 21.

Exemptions from licensing.

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

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

(2) the individual is supervised by:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 24.

Minnesota Statutes 2024, section 326B.37, subdivision 1, is amended to read:

Subdivision 1.

Schedule.

State electrical inspection fees shall be calculated in accordance with subdivisions deleted text begin 2 deleted text end new text begin 1 new text end to deleted text begin 14 deleted text end new text begin 18. The permit fee is $25 new text end .

Sec. 25.

Minnesota Statutes 2024, section 326B.37, subdivision 2, is amended to read:

Subd. 2.

Fee for each separate inspection.

new text begin (a) new text end The minimum fee for each separate new text begin on-site new text end inspection of an installation, replacement, alteration, or repair is deleted text begin $35 deleted text end new text begin $55 new text end . Except as otherwise provided in this section, the maximum number of separate inspections allowed without payment of an additional fee is the whole number resulting from dividing by deleted text begin 35 deleted text end new text begin 55 new text end the total fee calculated in accordance with this section. Where additional separate inspections are necessary, additional fees are required to result in a value equal to the total number of separate inspections multiplied by deleted text begin 35 deleted text end new text begin 55 new text end . The fee for any inspections needed after a "final inspection" is performed shall be calculated without consideration of any fee paid before the final inspection.

new text begin (b) The fee for the first remote virtual inspection under a permit is $10. The fee for each subsequent remote virtual inspection under a permit is $35. new text end

Sec. 26.

Minnesota Statutes 2024, section 326B.37, subdivision 4, is amended to read:

Subd. 4.

Fee for circuit, feeder, feeder tap, or set of transformer secondary conductors.

The inspection fee for the installation, addition, alteration, or repair of each circuit, feeder, feeder tap, or set of transformer secondary conductors, including the equipment served, is:

(1) 0 ampere to and including 200 ampere capacity, deleted text begin $6 deleted text end new text begin $12 new text end ; and

(2) ampere capacity above 200, $15.

Where existing feeders and circuits are reconnected to overcurrent devices installed as part of the replacement of an existing disconnect, switchboard, motor control center, or panelboard, the inspection fee for each circuit or feeder is $2.

Sec. 27.

Minnesota Statutes 2024, section 326B.37, subdivision 5, is amended to read:

Subd. 5.

Inspection fee for dwelling.

(a) The inspection fee for a one-family dwelling and each dwelling unit of a two-family dwelling is the following:

(1) the fee for each service or other source of power as provided in subdivision 3;

(2) deleted text begin $100 deleted text end new text begin $165 new text end for up to 30 feeders and circuits; and

(3) for each additional feeder or circuit, the fee as provided in subdivision 4.

This fee applies to each separate installation for new dwellings and where 15 or more feeders or circuits are installed or extended in connection with any addition, alteration, or repair to existing dwellings. Where existing feeders and circuits are reconnected to overcurrent devices installed as part of the replacement of an existing panelboard, the fee for each reconnected feeder or circuit is $2. The maximum number of separate inspections shall be determined in accordance with subdivision 2. The fee for additional inspections or other installations is that specified in subdivisions 2, 4, 6, and 8. The installer may submit fees for additional inspections when filing the request for electrical inspection. The fee for each detached accessory structure directly associated with a dwelling unit shall be calculated in accordance with subdivisions 3 and 4. When included on the same request for electrical inspection form, inspection fees for detached accessory structures directly associated with the dwelling unit may be combined with the dwelling unit fees to determine the maximum number of separate inspections in accordance with subdivision 2.

(b) The inspection fee for each dwelling unit of a multifamily dwelling with three or more dwelling units is deleted text begin $70 deleted text end new text begin $110 new text end for a combination of up to 20 feeders and circuits and deleted text begin $6 deleted text end new text begin $12 new text end for each additional feeder or circuit. This fee applies to each separate installation for each new dwelling unit and where ten or more feeders or circuits are installed or extended in connection with any addition, alteration, or repair to existing dwelling units. Where existing feeders or circuits are reconnected to overcurrent devices installed as part of the replacement of an existing panelboard, the fee for each reconnected feeder or circuit is $2. The maximum number of separate inspections for each dwelling unit shall be determined in accordance with subdivision 2. The fee for additional inspections or for inspection of other installations is that specified in subdivisions 2, 4, 6, and 8. These fees include only inspection of the wiring within individual dwelling units and the final feeder to that unit where the multifamily dwelling is provided with common service equipment and each dwelling unit is supplied by a separate feeder or feeders extended from common service or distribution equipment. The fee for multifamily dwelling services or other power source supplies and all other circuits is that specified in subdivisions 2 to 4.

(c) A separate request for electrical inspection form must be filed for each dwelling unit that is supplied with an individual set of service entrance conductors. These fees are the one-family dwelling rate specified in paragraph (a).

Sec. 28.

Minnesota Statutes 2024, section 326B.37, subdivision 6, is amended to read:

Subd. 6.

Additions to fees of subdivisions 3 to 5.

(a) The fee for the electrical supply for each manufactured home park lot is $35. This fee includes the service or feeder conductors up to and including the service equipment or disconnecting means. The fee for feeders and circuits that extend from the service or disconnecting means is that specified in subdivision 4.

(b) The fee for each recreational vehicle site electrical supply equipment is deleted text begin $6 deleted text end new text begin $12 new text end for each circuit originating within the equipment. The fee for recreational vehicle park services, feeders, and circuits is that specified in subdivisions 3 and 4.

(c) The fee for each street, parking lot, or outdoor area lighting standard and each traffic signal standard is $5. Circuits originating within the standard or traffic signal controller shall not be used when calculating the fee for each standard.

(d) The fee for transformers for light, heat, and power is $15 for transformers rated up to ten kilovolt-amperes and $30 for transformers rated in excess of ten kilovolt-amperes. The previous sentence does not apply to Class 1 transformers or power supplies for Class 1 power-limited circuits or to Class 2 or Class 3 transformers or power supplies.

(e) The fee for transformers and electronic power supplies for electric signs and outline lighting is $5 per unit.

(f) The fee for technology circuits or systems, and circuits of less than 50 volts, is 75 cents for each system device or apparatus.

(g) The fee for each separate inspection of the bonding for a swimming pool, spa, fountain, an equipotential plane for an agricultural confinement area, or similar installation is $35. Bonding conductors and connections require an inspection before being concealed.

(h) The fee for all wiring installed on center pivot irrigation booms is $35 plus $5 for each electrical drive unit.

(i) The fee for retrofit modifications to existing lighting fixtures is 25 cents per luminaire.

(j) When a separate inspection of a concrete-encased grounding electrode is performed, the fee is deleted text begin $35 deleted text end new text begin $55 new text end .

(k) The fees required by subdivisions 3 and 4 are doubled for installations over 600 volts.

new text begin (l) The fee for a class 4 circuit or system transmitter, receiver, or utilization equipment is $0.50 for each system device or apparatus. new text end

Sec. 29.

Minnesota Statutes 2024, section 326B.37, subdivision 8, is amended to read:

Subd. 8.

Reinspection fee.

Notwithstanding the provisions of subdivisions 2 and 5, when reinspection is necessary to determine whether unsafe conditions identified during a final inspection have been corrected and the conditions are not the subject of an appeal pending before the commissioner or any court, deleted text begin a deleted text end reinspection deleted text begin fee of $35 deleted text end new text begin fees shall be assessed as follows: (1) $55 for an on-site reinspection; and (2) $35 for a remote virtual reinspection. Reinspection fees new text end shall be assessed in writing by the inspector.

Sec. 30.

Minnesota Statutes 2024, section 326B.37, subdivision 9, is amended to read:

Subd. 9.

Supplemental fee.

When inspections scheduled by the installer are preempted, obstructed, prevented, or otherwise not able to be completed as scheduled due to circumstances beyond the control of the inspector, a supplemental inspection fee of deleted text begin $35 deleted text end new text begin $55 new text end shall be assessed in writing by the inspector.

Sec. 31.

Minnesota Statutes 2024, section 326B.37, is amended by adding a subdivision to read:

new text begin Subd. 18. new text end

new text begin Energy storage and battery systems. new text end

new text begin (a) The inspection fee for the installation of an energy storage or battery system is: new text end

new text begin (1) for zero watts to and including 5,000 watts, $60; new text end

new text begin (2) for 5,001 watts to and including 10,000 watts, $100; new text end

new text begin (3) for 10,001 watts to and including 20,000 watts, $150; new text end

new text begin (4) for 20,001 watts to and including 30,000 watts, $200; new text end

new text begin (5) for 30,001 watts to and including 40,000 watts, $250; new text end

new text begin (6) for 40,001 watts to and including 1,000,000 watts, $250, plus $8 for each additional 10,000 watts over 40,000 watts; new text end

new text begin (7) for 1,000,000 watts to 5,000,000 watts, $1,518, plus $5 for each additional 10,000 watts over 1,000,000 watts; or new text end

new text begin (8) for 5,000,000 watts and larger, $3,518, plus $2 for each additional 10,000 watts over 5,000,000 watts. new text end

new text begin (b) For the purpose of paragraph (a), the watt rating is the total of the estimated energy output, AC or DC, of the energy storage or battery system. new text end

Sec. 32.

Minnesota Statutes 2024, section 326B.43, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Agreement with Department of Health. new text end

new text begin By January 1, 2026, the commissioner must delegate plan and specification review and inspections authority to the commissioner of health for work performed by a well contractor or a limited well/boring contractor who is licensed and bonded under section 103I.525 or 103I.531 and who is performing the scope of work outlined in section 326B.46, subdivision 6, for the exclusive purposes of administering the Minnesota State Plumbing Code pertaining specifically to work associated with section 326B.46, subdivision 6. Any delegation entered into under this subdivision must require the commissioner of health to: new text end

new text begin (1) review plumbing plans and specifications, provide correction notices to applicants when construction documents do not comply with the Minnesota State Plumbing Code, and approve compliant submittals; new text end

new text begin (2) forward a plan approval letter to the commissioner when additional plumbing work is needed beyond the scope of the commissioner of health's review; new text end

new text begin (3) issue plan approvals and perform the required field inspections for plumbing work in accordance with Minnesota Rules, part 1300.0215; new text end

new text begin (4) enforce the Minnesota Plumbing Code in its entirety with regards to the specified work; new text end

new text begin (5) ensure that there is no physical connection between water supply systems that are safe for domestic use and those that are unsafe for domestic use; new text end

new text begin (6) ensure that there is no apparatus through which unsafe water may be discharged or drawn into a safe water supply system; new text end

new text begin (7) ensure that the individuals who will conduct the inspections and the plumbing plan and specification reviews do not have any conflicts of interest in conducting the inspections and the plan and specification reviews; new text end

new text begin (8) ensure that individuals who will conduct the plumbing plan and specification reviews for the Department of Health are: new text end

new text begin (i) licensed master plumbers; new text end

new text begin (ii) licensed professional engineers; or new text end

new text begin (iii) individuals who are working under the supervision of a licensed master plumber or licensed professional engineer and who are licensed master or journeyworker plumbers or hold a postsecondary degree in engineering; new text end

new text begin (9) ensure that individuals who will conduct the plumbing plan and specification reviews for the Department of Health have passed a competency assessment required by the commissioner to assess the individual's competency at reviewing plumbing plans and specifications; new text end

new text begin (10) ensure that individuals who will conduct the plumbing inspections for the Department of Health are licensed master or journeyworker plumbers or inspectors meeting the competency requirements established in Minnesota Rules, part 1301.1400; new text end

new text begin (11) ensure that persons, as defined in section 103I.005, subdivision 16, who are performing the work are licensed well contractors or limited licensed well contractors; new text end

new text begin (12) include in the licensing examination for well drillers and limited well drillers Minnesota Plumbing Code criteria pertaining to work associated with section 326B.46, subdivision 6; new text end

new text begin (13) require continuing education criteria for licensing well drillers and limited well drillers that includes Minnesota Plumbing Code criteria pertaining to work associated with section 326B.46, subdivision 6; new text end

new text begin (14) maintain official records of all documents received, including plans, specifications, surveys, and plot plans, and of all plan reviews, permits and certificates issued, reports of inspections, and notices issued in connection with plumbing inspections and the review of plumbing plans and specifications for four years; new text end

new text begin (15) include as a necessary term of any such delegation an agreement that if at any time during the delegation the commissioner determines that the Department of Health is not properly administering and enforcing the Minnesota State Plumbing Code or is otherwise not complying with the agreement: new text end

new text begin (i) the commissioner may, effective 28 days after the Department of Health's receipt of written notice, terminate the delegation; new text end

new text begin (ii) the Department of Health may challenge the termination in a contested case before the commissioner pursuant to chapter 14, the Administrative Procedure Act; and new text end

new text begin (iii) while any challenge is pending under item (ii), the commissioner must perform plan and specification reviews covered by the challenged delegation agreement under Minnesota Rules, part 1300.0215, subpart 6; new text end

new text begin (16) include as a necessary term of any such delegation an agreement that the Department of Health may terminate the delegation with or without cause upon 90 days' written notice to the commissioner; and new text end

new text begin (17) include as a necessary term of any such delegation an agreement that the Department of Health must forward to the state for review all plumbing plans and specifications for the following types of projects that may otherwise have been subject to the delegation: new text end

new text begin (i) state-licensed facilities, as defined in section 326B.103, subdivision 13; new text end

new text begin (ii) public buildings, as defined in section 326B.103, subdivision 11; and new text end

new text begin (iii) projects of a special nature for which department review is requested by either the Department of Health or the state. 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. 33.

Minnesota Statutes 2024, section 326B.49, subdivision 2, is amended to read:

Subd. 2.

Fees for plan reviews and audits.

Plumbing system plans and specifications that are submitted to the commissioner for review shall be accompanied by the appropriate plan examination fees. If the commissioner determines, upon review of the plans, that inadequate fees were paid, the necessary additional fees shall be paid prior to plan approval. The commissioner shall charge the following fees for plan reviews and audits of plumbing installations for public, commercial, and industrial buildings new text begin based upon the construction valuation of the plumbing work and in accordance with the table in clause (1), or based upon clause (2) or (3), as applicable new text end :

deleted text begin (1) systems with both water distribution and drain, waste, and vent systems and having: deleted text end

deleted text begin (i) 25 or fewer drainage fixture units, $150; deleted text end

deleted text begin (ii) 26 to 50 drainage fixture units, $250; deleted text end

deleted text begin (iii) 51 to 150 drainage fixture units, $350; deleted text end

deleted text begin (iv) 151 to 249 drainage fixture units, $500; deleted text end

deleted text begin (v) 250 or more drainage fixture units, $3 per drainage fixture unit to a maximum of $4,000; and deleted text end

deleted text begin (vi) interceptors, separators, or catch basins, $70 per interceptor, separator, or catch basin design; deleted text end

deleted text begin (2) building sewer service only, $150; deleted text end

deleted text begin (3) building water service only, $150; deleted text end

deleted text begin (4) building water distribution system only, no drainage system, $5 per supply fixture unit or $150, whichever is greater; deleted text end

deleted text begin (5) storm drainage system, a minimum fee of $150 or: deleted text end

deleted text begin (i) $50 per drain opening, up to a maximum of $500; and deleted text end

deleted text begin (ii) $70 per interceptor, separator, or catch basin design; deleted text end

new text begin (1) the total valuation and fee schedule is: new text end

new text begin (i) $0 to $1,500, $135; new text end

new text begin (ii) $1,501 to $2,500, $135 for the first $1,500, plus $28 for each additional $500 or fraction thereof, to and including $2,500; new text end

new text begin (iii) $2,501 to $5,000, $191 for the first $2,500, plus $25 for each additional $500 or fraction thereof, to and including $5,000; new text end

new text begin (iv) $5,001 to $25,000, $316 for the first $5,000, plus $33 for each additional $1,000 or fraction thereof, to and including $25,000; new text end

new text begin (v) $25,001 to $50,000, $976 for the first $25,000, plus $31 for each additional $1,000 or fraction thereof, to and including $50,000; new text end

new text begin (vi) $50,001 to $500,000, $1,751 for the first $50,000, plus $23 for each additional $10,000 or fraction thereof, to and including $100,000; new text end

new text begin (vii) $500,001 to $3,000,000, $2,786 for the first $500,000, plus $41 for each additional $100,000 or fraction thereof, to and including $3,000,000; and new text end

new text begin (viii) $3,000,001 and over, $3,811 for the first $3,000,000, plus $33 for each additional $100,000 or fraction thereof; new text end

new text begin (2) manufactured home park or campground: new text end

deleted text begin (6) manufactured home park or campground, deleted text end new text begin (i) new text end one to 25 sites, $300;

deleted text begin (7) manufactured home park or campground, deleted text end new text begin (ii) new text end 26 to 50 sites, $350;

deleted text begin (8) manufactured home park or campground, deleted text end new text begin (iii) new text end 51 to 125 sites, $400;

deleted text begin (9) manufactured home park or campground, deleted text end new text begin (iv) new text end more than 125 sites, $500; and

new text begin (v) other work shall be assessed per clause (1); and new text end

deleted text begin (10) revision deleted text end new text begin (3) revisions new text end to previously reviewed or incomplete plans:

(i) review of plans for which the commissioner has issued two or more requests for additional information, per review, deleted text begin $100 or ten percent of the original fee, whichever is greater deleted text end new text begin $125 per hour with a minimum of one hour new text end ;

(ii) proposer-requested revision with no increase in project scope, deleted text begin $50 or ten percent of original fee, whichever is greater deleted text end new text begin $125 per hour with a minimum of one hour new text end ; and

(iii) proposer-requested revision with an increase in project scope, deleted text begin $50 plus the difference between the original project fee and the revised project fee deleted text end new text begin the fee shall be based upon the absolute value of the change in work scope as if the change in scope is a new project new text end .

Sec. 34.

Minnesota Statutes 2024, section 326B.49, subdivision 3, is amended to read:

Subd. 3.

Permits; fees.

(a) Before commencement of a plumbing installation to be inspected by the commissioner, the plumbing contractor or registered plumbing employer performing the plumbing work must submit to the commissioner an application for a permit and the permit and inspection fees deleted text begin in paragraphs (b) to (f). deleted text end new text begin based upon the construction valuation of the plumbing work in accordance with clause (1), or based upon clause (2) or (3), as applicable: new text end

deleted text begin (b) The permit fee is $100. deleted text end

deleted text begin (c) The residential inspection fee is $50 for each inspection trip. deleted text end

deleted text begin (d) The public, commercial, and industrial inspection fees are as follows: deleted text end

deleted text begin (1) for systems with water distribution, drain, waste, and vent system connection: deleted text end

deleted text begin (i) $25 for each fixture, permanently connected appliance, floor drain, or other appurtenance; deleted text end

deleted text begin (ii) $25 for each water conditioning, water treatment, or water filtration system; and deleted text end

deleted text begin (iii) $25 for each interceptor, separator, catch basin, or manhole; deleted text end

deleted text begin (2) roof drains, $25 for each drain; deleted text end

deleted text begin (3) building sewer service only, $100; deleted text end

deleted text begin (4) building water service only, $100; deleted text end

deleted text begin (5) building water distribution system only, no drainage system, $5 for each fixture supplied; deleted text end

deleted text begin (6) storm drainage system, a minimum fee of $25 for each drain opening, interceptor, separator, or catch basin; deleted text end

new text begin (1) the total valuation and fee schedule for plumbing permits is: new text end

new text begin (i) $0 to $1,500, $135; new text end

new text begin (ii) $1,501 to $2,500, $135 for the first $1,500, plus $43 for each additional $500 or fraction thereof, to and including $2,500; new text end

new text begin (iii) $2,501 to $5,000, $221 for the first $2,500, plus $28 for each additional $500 or fraction thereof, to and including $5,000; new text end

new text begin (iv) $5,001 to $25,000, $361 for the first $5,000, plus $53 for each additional $1,000 or fraction thereof, to and including $25,000; new text end

new text begin (v) $25,001 to $50,000, $1,421 for the first $25,000, plus $51 for each additional $1,000 or fraction thereof, to and including $50,000; new text end

new text begin (vi) $50,001 to $500,000, $2,696 for the first $50,000, plus $47 for each additional $10,000 or fraction thereof, to and including $500,000; new text end

new text begin (vii) $500,001 to $3,000,000, $4,811 for the first $500,000, plus $61 for each additional $50,000 or fraction thereof, to and including $3,000,000; or new text end

new text begin (viii) $3,000,001 and over, $7,861 for the first $3,000,000, plus $51 for each additional $100,000 or fraction thereof; new text end

deleted text begin (7) deleted text end new text begin (2) new text end manufactured home park or campground, $25 for each site new text begin , minimum charge $135 new text end ; new text begin and new text end

deleted text begin (8) reinspection fee to verify corrections, regardless of the total fee submitted, $100 for each reinspection; and deleted text end

deleted text begin (9) each $100 in fees paid covers one inspection trip. deleted text end

deleted text begin (e) In addition to the fees in paragraph (d), the fee submitter must pay an hourly rate of $80 during regular business hours, or $120 when inspections are requested to be performed outside of normal work hours or on weekends and holidays, with a two-hour minimum where the fee submitter requests inspections of installations as systems are being installed. deleted text end

deleted text begin (f) The fee submitter must pay a fee equal to two hours at the hourly rate of $80 when inspections scheduled by the submitter are not able to be completed because the work is not complete. deleted text end

new text begin (3) other inspections and fees: new text end

new text begin (i) inspections outside of regular business hours, defined as Monday to Friday, 7:00 a.m. to 5:00 p.m., $188 per hour, minimum charge two hours; new text end

new text begin (ii) reinspection fees, $125 per hour, minimum charge $135; new text end

new text begin (iii) inspections for which no fee is specifically indicated, $125 per hour, minimum one-half hour, minimum charge $135; new text end

new text begin (iv) changes or revisions to approved plans with no increase in work scope, $125 per hour, minimum charge one hour; and new text end

new text begin (v) changes to approved plans with a change in work scope, fees shall be assessed for change in valuation based upon the absolute value of the change work scope in accordance with the fee schedule as if the change in scope were a new project. new text end

new text begin (b) If the actual cost to the jurisdiction under paragraph (a), clause (3), is greater than indicated by the schedule, the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment, hourly wages, and fringe benefits of the employees involved. new text end

Sec. 35.

Minnesota Statutes 2024, section 326B.986, subdivision 9, is amended to read:

Subd. 9.

Boiler and pressure vessel registration fee.

The annual registration fee for boilers and pressure vessels in use and required to be inspected per section 326B.958 shall be deleted text begin $10 deleted text end new text begin $25 new text end per boiler and pressure vessel.

Sec. 36.

Minnesota Statutes 2024, section 327.31, subdivision 6, is amended to read:

Subd. 6.

Manufactured home.

"Manufactured home" deleted text begin means a structure, transportable in one or more sections, which in the traveling mode, is eight body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained therein; except that the term includes any structure which meets all the requirements and with respect to which the manufacturer voluntarily files a certification required by the secretary and complies with the standards established under this chapter deleted text end new text begin has the meaning provided in Code of Federal Regulations, title 24, section 3280.2 new text end .

Sec. 37.

Minnesota Statutes 2024, section 327.32, subdivision 1a, is amended to read:

Subd. 1a.

Requirement; used manufactured homes.

new text begin (a) new text end No person shall sell deleted text begin or offer for sale deleted text end in this state any used manufactured home manufactured after June 14, 1976, or install for occupancy any used manufactured home manufactured after June 14, 1976, unless the used manufactured home complies with the Notice of Compliance Form as provided in this subdivision. If manufactured after June 14, 1976, the home must bear a label or data plate as required by the secretary. The Notice of Compliance Form shall be signed by the seller and purchaser indicating which party is responsible for either making or paying for any necessary corrections prior to the sale and transferring ownership of the manufactured home.

new text begin (b) No licensee, as defined in section 327B.01, subdivision 11a, shall sell in this state a used manufactured home manufactured after June 14, 1976, or install for occupancy a used manufactured home manufactured after June 14, 1976, unless they have: new text end

new text begin (1) completed and submitted to the commissioner the Notice of Compliance Form for a used manufactured home as provided in this subdivision; and new text end

new text begin (2) paid the Notice of Compliance Form for a used manufactured home filing fee. new text end

new text begin (c) No person shall lease or sublease any used manufactured home located in a manufactured home park, as defined in section 327.14, subdivision 3, unless the used manufactured home complies with the Notice of Compliance Form as prescribed in this subdivision. It is the responsibility of the owner of the used manufactured home to cover the cost of necessary compliance work or complete necessary compliance work prior to occupancy. The owner of the used manufactured home shall complete a new Notice of Compliance Form every three years or prior to the owner of a used manufactured home signing a new lease agreement for occupancy of a used manufactured home. A copy of the fully executed Notice of Compliance Form shall be provided to the renter as part of the lease agreement prior to occupancy of the home. new text end

The Notice of Compliance Form shall be substantially in the following form new text begin , except that the commissioner, in consultation with industry stakeholders, shall make available a version of the following form with only necessary modifications so that it may be used for the purposes of this paragraph new text end :

"Notice of Compliance Form as required in Minnesota Statutes, section 327.32,
subdivision 1

This notice must be completed and signed by the purchaser(s) and the seller(s) of the used manufactured home described in the purchase agreement and on the bottom of this notice before the parties transfer ownership of a used manufactured home constructed after June 14, 1976.

Electric ranges and clothes dryers must have required four-conductor cords and plugs. For the purpose of complying with the requirements of section 327B.06, a licensed retailer or limited retailer shall retain at least one copy of the form required under this subdivision.

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

Solid fuel-burning fireplaces or stoves must be listed for use in manufactured homes, Code of Federal Regulations, title 24, section 3280.709 (g), and installed correctly in accordance with their listing or standards (i.e., chimney, doors, hearth, combustion, or intake, etc., Code of Federal Regulations, title 24, section 3280.709 (g)).

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

Gas water heaters and furnaces must be listed for manufactured home use, Code of Federal Regulations, title 24, section 3280.709 (a) and (d)(1) and (2), and installed correctly, in accordance with their listing or standards.

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

Smoke alarms are required to be installed and operational in accordance with Code of Federal Regulations, title 24, section 3280.208.

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

Carbon monoxide alarms or CO detectors that are approved and operational are required to be installed within ten feet of each room lawfully used for sleeping purposes.

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

Egress windows are required in every bedroom with at least one operable window with a net clear opening of 20 inches wide and 24 inches high, five square feet in area, with the bottom of windows opening no more than 36 inches above the floor. Locks, latches, operating handles, tabs, or other operational devices shall not be located more than 54 inches above the finished floor.

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

The furnace compartment of the home is required to have interior finish with a flame spread rating not exceeding 25, as specified in the 1976 United States Department of Housing and Urban Development Code governing manufactured housing construction.

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

The water heater enclosure in this home is required to have interior finish with a flame spread rating not exceeding 25, as specified in the 1976 United States Department of Housing and Urban Development Code governing manufactured housing construction.

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

The home complies with the snowload and heat zone requirements for the state of Minnesota as indicated by the data plate.

Complies ..........	Correction required ..........
Initialed by Responsible Party: Buyer ..........	Seller ..........

The parties to this agreement have initialed all required sections and agree by their signature to complete any necessary corrections prior to the sale or transfer of ownership of the home described below as listed in the purchase agreement. The state of Minnesota or a local building official has the authority to inspect the home in the manner described in Minnesota Statutes, section 327.33, prior to or after the sale to ensure compliance was properly executed as provided under the Manufactured Home Building Code.

Signature of Purchaser(s) of Home
..............................date..............................	..............................date..............................
...................................................................	...................................................................
Print name as appears on purchase agreement	Print name as appears on purchase agreement
Signature of Seller(s) of Home
..............................date..............................	..............................date..............................
...................................................................	...................................................................
Print name and license number, if applicable	Print name and license number, if applicable
(Street address of home at time of sale)
.
(City/State/Zip) .
Name of manufacturer of home .
Model and year .
Serial number .		"

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, except paragraph (b) is effective for sales executed on or after January 1, 2026, and paragraph (c) is effective January 1, 2026. new text end

Sec. 38.

Minnesota Statutes 2024, section 327.32, subdivision 1e, is amended to read:

Subd. 1e.

Reinstallation requirements for used manufactured homes.

(a) All used manufactured homes reinstalled less than 24 months from the date of installation by the first purchaser must be reinstalled in compliance with subdivision 1c. All used manufactured homes reinstalled more than 24 months from the date of installation by the first purchaser may be reinstalled without a frost-protected foundation if the home is reinstalled in compliance with Minnesota Rules, chapter 1350, for above frost-line installations and the notice requirement of subdivision 1f is complied with by the seller and the purchaser of the used manufactured home.

(b) The installer or licensed residential building contractor shall affix an installation seal issued by the department to the outside of the home as required by the Minnesota State Building Code. The certificate of installation issued by the installer of record shall clearly state that the home has been reinstalled with an above frost-line foundation. Fees for inspection of a reinstallation and for issuance of reinstallation seals shall follow the requirements of sections 326B.802 to 326B.885 new text begin and 327.33 new text end . Fees for review of plans, specifications, and on-site inspections shall be those as specified in deleted text begin section deleted text end new text begin sections new text end 326B.153, subdivision 1, paragraph (c) new text begin , and 326B.154, subdivisions 2 and 3 new text end . Whenever an installation certificate for an above frost-line installation is issued to a used manufactured home being listed for sale, the purchase agreement must disclose that the home is installed on a nonfrost-protected foundation and recommend that the purchaser have the home inspected to determine the effects of frost on the home.

(c) An installation seal may be issued to a residential building contractor licensed under section 326B.805 for use in the installation of used manufactured homes only after the qualifying person for the residential building contractor has completed a three-hour training course relating to the installation of manufactured homes that has been approved by either the United States Department of Housing and Urban Development or by the commissioner. The course completion certificate shall be submitted to the commissioner. For the purposes of this subdivision, "qualifying person" has the meaning given in section 326B.802, subdivision 10.

Sec. 39.

Minnesota Statutes 2024, section 327.32, subdivision 7, is amended to read:

Subd. 7.

Enforcement.

All jurisdictions enforcing the State Building Code, in accordance with sections 326B.101 to 326B.151, shall undertake or provide for the administration and enforcement of the manufactured home installation rules promulgated by the commissioner. Municipalities which have adopted the State Building Code may provide installation inspection and plan review services in deleted text begin noncode deleted text end areas of the state new text begin without local building code enforcement new text end .

Sec. 40.

Minnesota Statutes 2024, section 327.33, subdivision 1, is amended to read:

Subdivision 1.

Inspections.

The commissioner shall, through the department's inspectors or through a designated recognized inspection service acting as authorized representative of the commissioner perform deleted text begin sufficient deleted text end inspections of manufacturing premises and manufactured homes to ensure compliance with sections 327.31 to 327.35. The commissioner shall have the exclusive right to conduct inspections, except for the inspections conducted or authorized by the secretary.

Sec. 41.

Minnesota Statutes 2024, section 327.33, subdivision 2a, is amended to read:

Subd. 2a.

Construction seal fees.

Replacement manufactured home or accessory structure construction seal fees, including certificates, are deleted text begin $30 deleted text end new text begin $70 new text end per seal.

Sec. 42.

Minnesota Statutes 2024, section 327.33, subdivision 2b, is amended to read:

Subd. 2b.

Installation seal fees.

Manufactured home installation seal fees, including anchoring and support and including certificates, are deleted text begin $80 deleted text end new text begin $325 new text end .

Sec. 43.

Minnesota Statutes 2024, section 327.33, subdivision 2c, is amended to read:

Subd. 2c.

Temporary installation certificate fees.

A temporary certificate fee is deleted text begin $2 deleted text end new text begin $15 new text end per certificate.

Sec. 44.

Minnesota Statutes 2024, section 327.33, is amended by adding a subdivision to read:

new text begin Subd. 2f. new text end

new text begin Notice of Compliance Form for a used manufactured home filing fee. new text end

new text begin The Notice of Compliance Form for a used manufactured home filing fee is $100 for each form submitted to the commissioner either electronically or as a hard copy. new text end

Sec. 45.

Minnesota Statutes 2024, section 327.33, is amended by adding a subdivision to read:

new text begin Subd. 2g. new text end

new text begin Installation plan review and inspection fee. new text end

new text begin The plan review and inspection fee for the commissioner's plan review and inspection of new or reinstalled manufactured homes and manufactured home accessory structures in areas of the state without local building code enforcement is $1,200. new text end

Sec. 46.

Minnesota Statutes 2024, section 327B.04, subdivision 7a, is amended to read:

Subd. 7a.

Fees.

(a) Fees for licenses issued pursuant to this section shall be deleted text begin calculated pursuant to section 326B.092. deleted text end new text begin for two years and the following fees apply: new text end

new text begin (1) manufacturer's license and dealer's license, $180; new text end

new text begin (2) dealer's subagency license, $80; and new text end

new text begin (3) limited dealer's license, $100. new text end

(b) All initial limited dealer licenses shall be effective for more than one calendar year and shall expire on December 31 of the year after the year in which the application is made.

(c) For the purposes of calculating fees under section 326B.092, any license issued under this section is a business license, except that a subagency license is a master license. deleted text begin The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of limited dealer licenses from one year to two years. By June 30, 2011, all renewed limited dealer licenses shall be two-year licenses. deleted text end

Sec. 47.

Minnesota Statutes 2024, section 327B.041, is amended to read:

327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured home installers shall be satisfied by successful completion of a written examination administered and developed specifically for the examination of manufactured home installers. The examination must be administered and developed by the commissioner. The commissioner and the state building official shall seek advice on the grading, monitoring, and updating of examinations from the deleted text begin Minnesota Manufactured Housing Association deleted text end new text begin Manufactured and Modular Home Association of Minnesota new text end ;

(3) a local government unit may not place a surcharge on a license fee, and may not charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply; and

(6) manufactured home installers are not subject to the contractor recovery fund in section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a manufactured home installer for any individual who holds an unexpired license or certificate issued by any other state or other United States jurisdiction if the licensing requirements of that jurisdiction meet or exceed the corresponding licensing requirements of the department and the individual complies with section 326B.092, subdivisions 1 and 3 to 7.

Sec. 48.

Minnesota Statutes 2024, section 327B.05, subdivision 1, is amended to read:

Subdivision 1.

Grounds.

In addition to the grounds in section 326B.082, subdivision 11, the commissioner may by order deny, suspend, limit, place conditions on, or revoke the application or license of any applicant or licensee or any of its directors, officers, limited or general partners, controlling shareholders, or affiliates for any of the following grounds:

deleted text begin (a) deleted text end new text begin (1) new text end has violated any of the provisions of sections 327B.01 to 327B.12 or any rule or order issued by the commissioner or any prior law providing for the licensing of manufactured home dealers or manufacturers;

deleted text begin (b) deleted text end new text begin (2) new text end has had a previous manufacturer or dealer license revoked in this or any other state;

deleted text begin (c) deleted text end new text begin (3) new text end has engaged in acts or omissions which have been adjudicated or amount to a violation of any of the provisions of section 325D.44, 325F.67 or 325F.69;

deleted text begin (d) deleted text end new text begin (4) new text end has sold or brokered the sale of a home containing a material violation of sections 327.31 to 327.35 deleted text begin about which deleted text end new text begin that new text end the dealer knew new text begin of new text end or deleted text begin which should have been obvious to a reasonably prudent dealer deleted text end new text begin could have known of with the exercise of reasonable diligence new text end ;

deleted text begin (e) deleted text end new text begin (5) new text end has failed to make or provide all listings, notices and reports required by the commissioner;

deleted text begin (f) deleted text end new text begin (6) new text end has failed to pay a civil penalty assessed under subdivision 5 within ten days after the assessment becomes final;

deleted text begin (g) deleted text end new text begin (7) new text end has failed to pay to the commissioner or other responsible government agency all taxes, fees and arrearages due;

deleted text begin (h) deleted text end new text begin (8) new text end has failed to duly apply for license renewal;

deleted text begin (i) deleted text end new text begin (9) new text end has violated any applicable manufactured home building or safety code;

deleted text begin (j) deleted text end new text begin (10) new text end has failed or refused to honor any express or implied warranty as provided in section 327B.03;

deleted text begin (k) deleted text end new text begin (11) new text end has failed to continuously occupy a permanent, established place of business licensed under section 327B.04;

deleted text begin (l) deleted text end new text begin (12) new text end has, without first notifying the commissioner, sold a new and unused manufactured home other than the make of manufactured home described in a franchise or contract filed with the application for license or license renewal;

deleted text begin (m) deleted text end new text begin (13) new text end has wrongfully failed to deliver a certificate of title to a person entitled to it;

deleted text begin (n) deleted text end new text begin (14) new text end is insolvent or bankrupt;

deleted text begin (o) deleted text end new text begin (15) new text end holds an impaired or canceled bond;

deleted text begin (p) deleted text end new text begin (16) new text end has failed to notify the commissioner of bankruptcy proceedings within ten days after a petition in bankruptcy has been filed by or against the dealer or manufacturer;

deleted text begin (q) deleted text end new text begin (17) new text end has, within the previous ten years, been convicted of a crime that either related directly to the business of the dealer or manufacturer or involved fraud, misrepresentation or misuse of funds;

deleted text begin (r) deleted text end new text begin (18) new text end has suffered a judgment within the previous five years in a civil action involving fraud, misrepresentation or misuse of funds; or

deleted text begin (s) deleted text end new text begin (19) new text end has failed to reasonably supervise any employee or agent of the dealer or manufacturer, resulting in injury or harm to the public.

The commissioner may establish rules pursuant to section 327B.10 further specifying, defining or establishing standards of conduct for manufactured home dealers and manufacturers.

Presented to the governor June 12, 2025

Signed by the governor June 14, 2025, 10:28 a.m.