1.1 	A bill for an act
1.2 	relating to state government; establishing a biennial budget for Department of 
1.3 	Employment and Economic Development, Public Utilities Commission, and 
1.4 	Explore Minnesota; modifying various provisions governing economic 
1.5 	development, unemployment insurance, and Explore Minnesota; requiring reports; 
1.6 	appropriating money;amending Minnesota Statutes 2022, sections 116J.5492, 
1.7 	subdivisions 8, 10; 116J.8748, subdivisions 3, 4, 6, by adding a subdivision; 
1.8 	116J.8749, subdivisions 1, 3, 5, 10; 116L.361, subdivision 7; 116L.362, subdivision 
1.9 	1; 116L.364, subdivision 3; 116L.56, subdivision 2; 116L.561, subdivision 5; 
1.10 	116L.562, subdivision 2; 116U.05; 116U.10; 116U.15; 116U.20; 116U.25; 
1.11 	116U.30; 116U.35; 126C.43, subdivision 2; 127A.45, subdivision 12; 268.085, 
1.12 	subdivisions 7, 8; proposing coding for new law in Minnesota Statutes, chapters 
1.13 	116J; 116L; 116U; 124D.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	ARTICLE 1
1.16 	APPROPRIATIONS

1.17	Section 1. APPROPRIATIONS.
 	
1.18 	(a) The sums shown in the columns marked "Appropriations" are appropriated to the 
1.19 	agencies and for the purposes specified in this article. The appropriations are from the 
1.20 	general fund, or another named fund, and are available for the fiscal years indicated for 
1.21 	each purpose. The figures "2024" and "2025" used in this article mean that the appropriations 
1.22 	listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025, 
1.23 	respectively. "The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The 
1.24 	biennium" is fiscal years 2024 and 2025.
1.25 	(b) If an appropriation in this article is enacted more than once in the 2023 regular or 
1.26 	special legislative session, the appropriation must be given effect only once.

2.1				APPROPRIATIONS
	
2.2				Available for the Year
	
2.3				Ending June 30
	
2.4					2024
		2025

2.5
2.6	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.7	Subdivision 1.Total Appropriation
 	$
	453,892,000
	$
	254,886,000

2.8	Appropriations by Fund
	
2.9		2024
	2025
	
2.10	General
	402,429,000
	203,395,000
	
2.11	Remediation
	700,000
	700,000
	
2.12
2.13	Workforce 
Development
	50,763,000
	50,791,000
	
2.14 	The amounts that may be spent for each 
2.15 	purpose are specified in the following 
2.16 	subdivisions.

2.17	Subd. 2.Business and Community Development
 		304,474,000
		114,474,000

2.18	Appropriations by Fund
	
2.19	General
	302,424,000
	112,424,000
	
2.20	Remediation
	700,000
	700,000
	
2.21
2.22	Workforce 
Development
	1,350,000
	1,350,000
	
2.23 	(a) $1,787,000 each year is for the greater 
2.24 	Minnesota business development public 
2.25 	infrastructure grant program under Minnesota 
2.26 	Statutes, section 116J.431. This appropriation 
2.27 	is available until June 30, 2027.
2.28 	(b) $500,000 each year is for grants to small 
2.29 	business development centers under Minnesota 
2.30 	Statutes, section 116J.68. Money made 
2.31 	available under this paragraph may be used to 
2.32 	match funds under the federal Small Business 
2.33 	Development Center (SBDC) program under 
2.34 	United States Code, title 15, section 648, to 
2.35 	provide consulting and technical services or 
3.1 	to build additional SBDC network capacity to 
3.2 	serve entrepreneurs and small businesses.
3.3 	(c) $1,250,000 each year is to hire, train, and 
3.4 	deploy small business navigators in 
3.5 	communities and locations throughout the state 
3.6 	to assist small businesses and entrepreneurs, 
3.7 	especially historically underserved small 
3.8 	businesses and entrepreneurs, in accessing 
3.9 	state, federal, local, and private small business 
3.10 	assistance programs. The base funding for this 
3.11 	program is $1,000,000 each year starting in 
3.12 	fiscal year 2026. Of this amount, $500,000 
3.13 	must be used to improve the agency's digital 
3.14 	navigation and information services for small 
3.15 	businesses and entrepreneurs.
3.16 	(d) $5,000,000 each year is for Launch 
3.17 	Minnesota. Of this amount: (1) $2,750,000 
3.18 	each year is for innovation grants to eligible 
3.19 	Minnesota entrepreneurs or start-up businesses 
3.20 	to assist with their operating needs; (2) 
3.21 	$750,000 each year is for administration of 
3.22 	Launch Minnesota; (3) $750,000 each year is 
3.23 	for grantee activities at Launch Minnesota; 
3.24 	and (4) $750,000 each year is for the Higher 
3.25 	Education Technology Commercialization 
3.26 	Hub. The base beginning in fiscal year 2026 
3.27 	is $2,500,000.
3.28 	(e) $40,000,000 in fiscal year 2024 is for the 
3.29 	Minnesota Expanding Opportunity Fund 
3.30 	Program under Minnesota Statutes, section 
3.31 	116J.8733. This appropriation is onetime and 
3.32 	is available until June 30, 2025.
3.33 	(f) $150,000,000 in fiscal year 2024 is for the 
3.34 	Minnesota forward fund under Minnesota 
3.35 	Statutes, section 116J.8752. Money awarded 
4.1 	under this program is made retroactive for 
4.2 	applications and projects to February 1, 2023. 
4.3 	This appropriation is onetime and is available 
4.4 	until spent.
4.5 	(g) $8,925,000 each year is for the small 
4.6 	business assistance partnerships program 
4.7 	under Minnesota Statutes, section 116J.682. 
4.8 	All grant awards shall be for two consecutive 
4.9 	years. Grants shall be awarded in the first year. 
4.10 	The department may use up to five percent of 
4.11 	the appropriation for administrative purposes. 
4.12 	The base in fiscal year 2026 and beyond is 
4.13 	$1,425,000.
4.14 	(h) $5,000,000 each year is transferred from 
4.15 	the general fund to the community energy 
4.16 	transition account for grants under Minnesota 
4.17 	Statutes, section 116J.55. These transfers are 
4.18 	onetime.
4.19 	(i) $350,000 each year is for administration 
4.20 	of the community energy transition office.
4.21 	(j) $1,772,000 each year is for contaminated 
4.22 	site cleanup and development grants under 
4.23 	Minnesota Statutes, sections 116J.551 to 
4.24 	116J.558. This appropriation is available until 
4.25 	expended.
4.26 	(k) $700,000 each year is from the remediation 
4.27 	fund for contaminated site cleanup and 
4.28 	development grants under Minnesota Statutes, 
4.29 	sections 116J.551 to 116J.558. This 
4.30 	appropriation is available until expended.
4.31 	(l) $139,000 each year is for the Center for 
4.32 	Rural Policy and Development.
4.33 	(m) $25,000 each year is for the administration 
4.34 	of state aid for the Destination Medical Center 
5.1 	under Minnesota Statutes, sections 469.40 to 
5.2 	469.47.
5.3 	(n) $875,000 each year is for the host 
5.4 	community economic development program 
5.5 	established in Minnesota Statutes, section 
5.6 	116J.548.
5.7 	(o) $6,500,000 each year is for the child care 
5.8 	economic development grant program. The 
5.9 	base in fiscal year 2026 and beyond is 
5.10 	$3,000,000.
5.11 	(p) $500,000 each year is for the Office of 
5.12 	Child Care Community Partnerships. Of this 
5.13 	amount:
5.14 	(1) $450,000 each year is for administration 
5.15 	of the Office of Child Care Community 
5.16 	Partnerships; and
5.17 	(2) $50,000 each year is for the Labor Market 
5.18 	Information Office to conduct research and 
5.19 	analysis related to the child care industry.
5.20 	(q) $3,500,000 each year is for a grant to the 
5.21 	Minnesota Initiative Foundations. This 
5.22 	appropriation is available until June 30, 2027. 
5.23 	In fiscal year 2026 and beyond, the base 
5.24 	amount is $1,000,000. The Minnesota 
5.25 	Initiative Foundations must use grant funds 
5.26 	under this section to:
5.27 	(1) facilitate planning processes for rural 
5.28 	communities resulting in a community solution 
5.29 	action plan that guides decision making to 
5.30 	sustain and increase the supply of quality child 
5.31 	care in the region to support economic 
5.32 	development;
6.1 	(2) engage the private sector to invest local 
6.2 	resources to support the community solution 
6.3 	action plan and ensure quality child care is a 
6.4 	vital component of additional regional 
6.5 	economic development planning processes;
6.6 	(3) provide locally based training and technical 
6.7 	assistance to rural business owners 
6.8 	individually or through a learning cohort. 
6.9 	Access to financial and business development 
6.10 	assistance must prepare child care businesses 
6.11 	for quality engagement and improvement by 
6.12 	stabilizing operations, leveraging funding from 
6.13 	other sources, and fostering business acumen 
6.14 	that allows child care businesses to plan for 
6.15 	and afford the cost of providing quality child 
6.16 	care; and
6.17 	(4) recruit child care programs to participate 
6.18 	in quality rating and improvement 
6.19 	measurement programs. The Minnesota 
6.20 	Initiative Foundations must work with local 
6.21 	partners to provide low-cost training, 
6.22 	professional development opportunities, and 
6.23 	continuing education curricula. The Minnesota 
6.24 	Initiative Foundations must fund, through local 
6.25 	partners, an enhanced level of coaching to 
6.26 	rural child care providers to obtain a quality 
6.27 	rating through measurement programs.
6.28 	(r) $8,000,000 each year is for the Minnesota 
6.29 	job creation fund under Minnesota Statutes, 
6.30 	section 116J.8748. Of this amount, the 
6.31 	commissioner of employment and economic 
6.32 	development may use up to three percent for 
6.33 	administrative expenses. This appropriation 
6.34 	is available until expended. Notwithstanding 
6.35 	Minnesota Statutes, section 116J.8748, money 
7.1 	appropriated for the job creation fund may be 
7.2 	used for redevelopment under Minnesota 
7.3 	Statutes, sections 116J.575 and 116J.5761, at 
7.4 	the discretion of the commissioner.
7.5 	(s) $12,370,000 the first year and $12,370,000 
7.6 	the second year are for the Minnesota 
7.7 	investment fund under Minnesota Statutes, 
7.8 	section 116J.8731. Of this amount, the 
7.9 	commissioner of employment and economic 
7.10 	development may use up to three percent for 
7.11 	administration and monitoring of the program. 
7.12 	In fiscal year 2026 and beyond, the base 
7.13 	amount is $12,370,000. This appropriation is 
7.14 	available until expended. Notwithstanding 
7.15 	Minnesota Statutes, section 116J.8731, money 
7.16 	appropriated to the commissioner for the 
7.17 	Minnesota investment fund may be used for 
7.18 	the redevelopment program under Minnesota 
7.19 	Statutes, sections 116J.575 and 116J.5761, at 
7.20 	the discretion of the commissioner. Grants 
7.21 	under this paragraph are not subject to the 
7.22 	grant amount limitation under Minnesota 
7.23 	Statutes, section 116J.8731.
7.24 	(t) $2,246,000 each year is for the 
7.25 	redevelopment program under Minnesota 
7.26 	Statutes, sections 116J.575 and 116J.5761. In 
7.27 	fiscal year 2026 and beyond, the base amount 
7.28 	is $2,246,000. This appropriation is available 
7.29 	until expended.
7.30 	(u) $1,000,000 each year is for the Minnesota 
7.31 	emerging entrepreneur loan program under 
7.32 	Minnesota Statutes, section 116M.18. Funds 
7.33 	available under this paragraph are for transfer 
7.34 	into the emerging entrepreneur program 
7.35 	special revenue fund account created under 
8.1 	Minnesota Statutes, chapter 116M, and are 
8.2 	available until expended. Of this amount, up 
8.3 	to four percent is for administration and 
8.4 	monitoring of the program.
8.5 	(v) $325,000 each year is for the Minnesota 
8.6 	Film and TV Board. The appropriation in each 
8.7 	year is available only upon receipt by the 
8.8 	board of $1 in matching contributions of 
8.9 	money or in-kind contributions from nonstate 
8.10 	sources for every $3 provided by this 
8.11 	appropriation, except that each year up to 
8.12 	$50,000 is available on July 1 even if the 
8.13 	required matching contribution has not been 
8.14 	received by that date.
8.15 	(w) $12,000 each year is for a grant to the 
8.16 	Upper Minnesota Film Office.
8.17 	(x) $500,000 each year is for a grant to the 
8.18 	Minnesota Film and TV Board for the film 
8.19 	production jobs program under Minnesota 
8.20 	Statutes, section 116U.26. This appropriation 
8.21 	is available until June 30, 2025.
8.22 	(y) $4,195,000 each year is for the Minnesota 
8.23 	job skills partnership program under 
8.24 	Minnesota Statutes, sections 116L.01 to 
8.25 	116L.17. If the appropriation for either year 
8.26 	is insufficient, the appropriation for the other 
8.27 	year is available. This appropriation is 
8.28 	available until expended.
8.29 	(z) $1,350,000 each year from the workforce 
8.30 	development fund is for jobs training grants 
8.31 	under Minnesota Statutes, section 116L.41.
8.32 	(aa) $42,295,000 each year is for the Main 
8.33 	Street Economic Revitalization Program under 
8.34 	Minnesota Statutes, section 116J.8749. Of 
9.1 	these amounts, up to $300,000 is for the 
9.2 	commissioner's administration and monitoring 
9.3 	of the program. These appropriations are 
9.4 	onetime and are available until June 30, 2027.
9.5 	(bb) $250,000 each year is for the publication, 
9.6 	dissemination, and use of labor market 
9.7 	information under Minnesota Statutes, section 
9.8 	116J.401.
9.9 	(cc) $500,000 each year is for the airport 
9.10 	infrastructure renewal (AIR) grant program 
9.11 	under Minnesota Statutes, section 116J.439. 
9.12 	In awarding grants with this appropriation, the 
9.13 	commissioner must prioritize eligible 
9.14 	applicants that did not receive a grant pursuant 
9.15 	to the appropriation in Laws 2019, First 
9.16 	Special Session chapter 7, article 1, section 2, 
9.17 	subdivision 2, paragraph (q).

9.18	Subd. 3.Employment and Training Programs
 		81,298,000
		81,298,000

9.19	Appropriations by Fund
	
9.20	General
	39,796,000
	39,796,000
	
9.21
9.22	Workforce 
Development
	41,502,000
	41,502,000
	
9.23 	(a) $500,000 each year from the general fund 
9.24 	and $500,000 each year from the workforce 
9.25 	development fund are for rural career 
9.26 	counseling coordinators in the workforce 
9.27 	service areas and for the purposes specified 
9.28 	under Minnesota Statutes, section 116L.667.
9.29 	(b) $5,000,000 in fiscal year 2024 and 
9.30 	$5,000,000 in fiscal year 2025 are for 
9.31 	competitive grants to organizations providing 
9.32 	services to Minnesota's older workers. Grant 
9.33 	awards must be used to support older 
9.34 	individuals to re-enter the labor force through 
9.35 	workforce recruitment and development, 
10.1 	outreach, paid essential training and upskilling, 
10.2 	on-the-job training through community service 
10.3 	assignments, and assistance for smaller 
10.4 	organizations to increase capacity. Of this 
10.5 	amount, up to five percent is for administration 
10.6 	and monitoring of the program. These are 
10.7 	onetime appropriations.
10.8 	(c) $15,000,000 each year from the general 
10.9 	fund and $15,000,000 each year from the 
10.10 	workforce development fund are for the 
10.11 	targeted population workforce grants under 
10.12 	Minnesota Statutes, section 116L.43. The 
10.13 	department may use up to ten percent of this 
10.14 	appropriation for administration, monitoring, 
10.15 	and oversight of the program. Of this amount:
10.16 	(1) $22,000,000 is for job and entrepreneurial 
10.17 	skills training grants under Minnesota Statutes, 
10.18 	section 116L.43, subdivision 2;
10.19 	(2) $2,000,000 is for diversity and inclusion 
10.20 	training for small and mid-size employers 
10.21 	under Minnesota Statutes, section 116L.43, 
10.22 	subdivision 3; and
10.23 	(3) $6,000,000 is for capacity building grants 
10.24 	under Minnesota Statutes, section 116L.43, 
10.25 	subdivision 4.
10.26 	The base funding for this program is 
10.27 	$5,000,000 from the general fund and 
10.28 	$5,000,000 from the workforce development 
10.29 	fund in fiscal years 2026 and 2027.
10.30 	(d) $750,000 each year is for the women and 
10.31 	high-wage, high-demand, nontraditional jobs 
10.32 	grant program under Minnesota Statutes, 
10.33 	section 116L.99. Of this amount, up to five 
11.1 	percent is for administration and monitoring 
11.2 	of the program.
11.3 	(e) $7,500,000 each year from the general fund 
11.4 	and $7,500,000 each year from the workforce 
11.5 	development fund are for the Drive for Five 
11.6 	Initiative to conduct outreach and provide job 
11.7 	skills training, career counseling, case 
11.8 	management, and supportive services for 
11.9 	careers in (1) technology, (2) labor, (3) the 
11.10 	caring professions, (4) manufacturing, and (5) 
11.11 	educational and professional services. These 
11.12 	are onetime appropriations.
11.13 	(f) Competitive Grants for Workforce 
11.14 	Development Organizations. Of the amounts 
11.15 	appropriated in paragraph (e), the 
11.16 	commissioner must make $10,000,000 each 
11.17 	year available through a competitive request 
11.18 	for proposal process. The grant awards must 
11.19 	be used to provide education and training in 
11.20 	the five industries identified in paragraph (e). 
11.21 	Education and training may include:
11.22 	(1) student tutoring and testing support 
11.23 	services;
11.24 	(2) training and employment placement in high 
11.25 	wage and high growth employment;
11.26 	(3) assistance in obtaining industry-specific 
11.27 	certifications;
11.28 	(4) remedial training leading to enrollment;
11.29 	(5) real-time work experience in information;
11.30 	(6) career and educational counseling;
11.31 	(7) work experience and internships; and
11.32 	(8) supportive services.
12.1 	(g) Competitive Grants for Trade 
12.2 	Associations for Job Placement. Of the 
12.3 	amount appropriated in paragraph (e), 
12.4 	$3,250,000 each year must be awarded 
12.5 	through competitive grants made to trade 
12.6 	associations or chambers of commerce for job 
12.7 	placement services. Grant awards must be used 
12.8 	to encourage workforce training efforts to 
12.9 	ensure that efforts are aligned with employer 
12.10 	demands and that graduates are connected with 
12.11 	employers looking to hire. Trade associations 
12.12 	or chambers must partner with employers with 
12.13 	current or anticipated employment 
12.14 	opportunities and nonprofit workforce training 
12.15 	partners participating in this program. The 
12.16 	trade associations or chambers must work 
12.17 	closely with the industry sector training 
12.18 	providers in the five industries identified in 
12.19 	paragraph (e). Grant awards may be used for:
12.20 	(1) employer engagement strategies to align 
12.21 	employment opportunities for individuals 
12.22 	exiting workforce development training 
12.23 	programs. These strategies may include 
12.24 	business recruitment, job opening 
12.25 	development, employee recruitment, and job 
12.26 	matching. Trade associations must utilize the 
12.27 	state's labor exchange system;
12.28 	(2) diversity, inclusion, and retention training 
12.29 	to their members to increase the business 
12.30 	understanding of welcoming and retaining a 
12.31 	diverse workforce; and
12.32 	(3) industry-specific training.
12.33 	(h) Business Services Representatives. Of 
12.34 	the amount appropriated in paragraph (e), 
12.35 	$1,750,000 each year is to hire, train, and 
13.1 	deploy business services representatives in 
13.2 	local workforce development areas throughout 
13.3 	the state. Business services representatives 
13.4 	must work with an assigned local workforce 
13.5 	development area to address the hiring needs 
13.6 	of Minnesota's businesses by connecting job 
13.7 	seekers and program participants in the 
13.8 	CareerForce system. Business services 
13.9 	representatives serve in the classified service 
13.10 	of the state and operate as part of the agency's 
13.11 	Employment and Training Office. The 
13.12 	commissioner shall develop and implement 
13.13 	training materials and reporting and evaluation 
13.14 	procedures for the activities of the business 
13.15 	services representatives. The business services 
13.16 	representatives must:
13.17 	(1) serve as the primary contact for businesses 
13.18 	in that area;
13.19 	(2) actively engage employers by assisting 
13.20 	with matching employers to job seekers 
13.21 	through referring candidates, convening job 
13.22 	fairs, and assisting with job announcements; 
13.23 	and
13.24 	(3) work with the local area board and its 
13.25 	partners to identify candidates for openings in 
13.26 	small and mid-size companies in the local 
13.27 	area.
13.28 	(i) $2,546,000 each year from the general fund 
13.29 	and $4,604,000 each year from the workforce 
13.30 	development fund are for the pathways to 
13.31 	prosperity competitive grant program. Of this 
13.32 	amount, up to five percent is for administration 
13.33 	and monitoring of the program.
14.1 	(j) $500,000 each year is from the workforce 
14.2 	development fund for current Minnesota 
14.3 	affiliates of OIC of America, Inc. This 
14.4 	appropriation shall be divided equally among 
14.5 	the eligible centers.
14.6 	(k) $1,000,000 each year is for competitive 
14.7 	grants to organizations providing services to 
14.8 	relieve economic disparities in the Southeast 
14.9 	Asian community through workforce 
14.10 	recruitment, development, job creation, 
14.11 	assistance of smaller organizations to increase 
14.12 	capacity, and outreach. Of this amount, up to 
14.13 	five percent is for administration and 
14.14 	monitoring of the program.
14.15 	(l) $1,000,000 each year is for a competitive 
14.16 	grant program to provide grants to 
14.17 	organizations that provide support services for 
14.18 	individuals, such as job training, employment 
14.19 	preparation, internships, job assistance to 
14.20 	parents, financial literacy, academic and 
14.21 	behavioral interventions for low-performing 
14.22 	students, and youth intervention. Grants made 
14.23 	under this section must focus on low-income 
14.24 	communities, young adults from families with 
14.25 	a history of intergenerational poverty, and 
14.26 	communities of color. Of this amount, up to 
14.27 	five percent is for administration and 
14.28 	monitoring of the program.
14.29 	(m) $5,230,000 each year from the general 
14.30 	fund and $3,348,000 each year from the 
14.31 	workforce development fund are for the 
14.32 	youth-at-work competitive grant program 
14.33 	under Minnesota Statutes, section 116L.562. 
14.34 	Of this amount, up to five percent is for 
14.35 	administration and monitoring of the youth 
15.1 	workforce development competitive grant 
15.2 	program. All grant awards shall be for two 
15.3 	consecutive years. Grants shall be awarded in 
15.4 	the first year. The base funding for this 
15.5 	program is $750,000 each year from the 
15.6 	general fund and $3,348,000 each year from 
15.7 	the workforce development fund beginning in 
15.8 	fiscal year 2026.
15.9 	(n) $2,093,000 each year is from the 
15.10 	workforce development fund for the 
15.11 	Minnesota Youthbuild program under 
15.12 	Minnesota Statutes, sections 116L.361 and 
15.13 	116L.336. The base funding for this program 
15.14 	is $1,000,000 per year from the workforce 
15.15 	development fund beginning in fiscal year 
15.16 	2026.
15.17 	(o) $520,000 each year from the general fund 
15.18 	and $7,957,000 each year from the workforce 
15.19 	development fund are for the Minnesota youth 
15.20 	program under Minnesota Statutes, sections 
15.21 	116L.56 and 116L.561. Beginning in fiscal 
15.22 	year 2026, the base funding for this program 
15.23 	is $0 from the general fund and $4,050,000 
15.24 	from the workforce development fund.
15.25 	(p) $750,000 each year is to establish an Office 
15.26 	of New Americans.

15.27	Subd. 4.General Support Services
 		16,817,000
		7,811,000

15.28	Appropriations by Fund
	
15.29	General Fund
	16,736,000
	7,702,000
	
15.30
15.31	Workforce 
Development
	81,000
	109,000
	
15.32 	(a) $1,269,000 each year is for transfer to the 
15.33 	Minnesota Housing Finance Agency for 
15.34 	operating the Olmstead Compliance Office.
16.1 	(b) $10,000,000 in fiscal year 2024 is for the 
16.2 	workforce digital transformation projects. This 
16.3 	appropriation is onetime and is available until 
16.4 	June 30, 2027.

16.5	Subd. 5.Minnesota Trade Office
 		2,242,000
		2,242,000
	
16.6 	(a) $300,000 each year is for the STEP grants 
16.7 	in Minnesota Statutes, section 116J.979. The 
16.8 	base for this purpose in fiscal year 2024 and 
16.9 	beyond is $300,000.
16.10 	(b) $180,000 each year is for the Invest 
16.11 	Minnesota marketing initiative in Minnesota 
16.12 	Statutes, section 116J.9781.
16.13 	(c) $270,000 each year is for the Minnesota 
16.14 	Trade Offices under Minnesota Statutes, 
16.15 	section 116J.978.

16.16	Subd. 6.Vocational Rehabilitation
 		38,636,000
		38,636,000

16.17	Appropriations by Fund
	
16.18	General
	30,806,000
	30,806,000
	
16.19
16.20	Workforce 
Development
	7,830,000
	7,830,000
	
16.21 	(a) $14,300,000 each year is for the state's 
16.22 	vocational rehabilitation program under 
16.23 	Minnesota Statutes, chapter 268A.
16.24 	(b) $8,995,000 each year from the general fund 
16.25 	and $6,830,000 each year from the workforce 
16.26 	development fund are for extended 
16.27 	employment services for persons with severe 
16.28 	disabilities under Minnesota Statutes, section 
16.29 	268A.15. Of the amounts appropriated from 
16.30 	the general fund, $2,000,000 each year is for 
16.31 	maintaining prior rate increases to providers 
16.32 	of extended employment services for persons 
16.33 	with severe disabilities under Minnesota 
16.34 	Statutes, section 268A.15.
17.1 	(c) $4,500,000 each year is for grants to 
17.2 	programs that provide employment support 
17.3 	services to persons with mental illness under 
17.4 	Minnesota Statutes, sections 268A.13 and 
17.5 	268A.14.
17.6 	(d) $3,011,000 each year is for grants to 
17.7 	centers for independent living under 
17.8 	Minnesota Statutes, section 268A.11.
17.9 	(e) $1,000,000 each year is from the workforce 
17.10 	development fund for grants under Minnesota 
17.11 	Statutes, section 268A.16, for employment 
17.12 	services for persons, including transition-age 
17.13 	youth, who are deaf, deafblind, or 
17.14 	hard-of-hearing. If the amount in the first year 
17.15 	is insufficient, the amount in the second year 
17.16 	is available in the first year.

17.17	Subd. 7.Services for the Blind
 		10,425,000
		10,425,000
	
17.18 	(a) $500,000 each year is for senior citizens 
17.19 	who are becoming blind. At least one-half of 
17.20 	the funds for this purpose must be used to 
17.21 	provide training services for seniors who are 
17.22 	becoming blind. Training services must 
17.23 	provide independent living skills to seniors 
17.24 	who are becoming blind to allow them to 
17.25 	continue to live independently in their homes.
17.26 	(b) $2,000,000 each year is for the employer 
17.27 	reasonable accommodation fund. This is a 
17.28 	onetime appropriation.

17.29	Sec. 3. EXPLORE MINNESOTA
 	$
	36,307,000
	$
	21,169,000
	
17.30 	(a) $500,000 the first year and $500,000 the 
17.31 	second year must be matched from nonstate 
17.32 	sources to develop maximum private sector 
17.33 	involvement in tourism. Each $1 of state 
17.34 	incentive must be matched with $6 of private 
18.1 	sector money. "Matched" means revenue to 
18.2 	the state or documented cash expenditures 
18.3 	directly expended to support Explore 
18.4 	Minnesota Tourism under section 116U.05. 
18.5 	The incentive in fiscal year 2024 is based on 
18.6 	fiscal year 2023 private sector contributions. 
18.7 	The incentive in fiscal year 2025 is based on 
18.8 	fiscal year 2024 private sector contributions. 
18.9 	This incentive is ongoing.
18.10 	(b) $5,900,000 the first year and $5,900,000 
18.11 	the second year are for the development of 
18.12 	new initiatives for Explore Minnesota 
18.13 	Tourism. Of this amount, $3,000,000 the first 
18.14 	year and $3,000,000 the second year are for 
18.15 	competitive grants for large-scale sporting and 
18.16 	other major events; $1,100,000 the first year 
18.17 	and $1,100,000 the second year are for grants 
18.18 	to Minnesota's 11 Tribal Nations to promote 
18.19 	and support new tourism opportunities for 
18.20 	Tribal Nations; $1,000,000 the first year and 
18.21 	$1,000,000 the second year are to expand 
18.22 	diversity, equity, inclusion, and accessibility 
18.23 	through tourism marketing; $625,000 the first 
18.24 	year and $625,000 the second year are for the 
18.25 	tourism and hospitality industry and the 
18.26 	Governor's Opener events; $88,000 the first 
18.27 	year and $88,000 the second year are to 
18.28 	develop new resources and increase 
18.29 	engagement for the tourism industry; and 
18.30 	$87,000 the first year and $87,000 the second 
18.31 	year must be used to develop a long-term 
18.32 	sustainability plan for tourism.
18.33 	(c) $12,000,000 the first year is for the 
18.34 	development of Explore Minnesota for 
18.35 	Business under section 116U.07 to market the 
19.1 	overall livability and economic opportunities 
19.2 	of Minnesota. This is a onetime appropriation.
19.3 	(d) Money for marketing grants is available 
19.4 	either year of the biennium. Unexpended grant 
19.5 	money from the first year is available in the 
19.6 	second year.

19.7	Sec. 4. PUBLIC UTILITIES COMMISSION
 	$
	9,836,000
	$
	10,105,000

19.8	Sec. 5. DEPARTMENT OF EDUCATION
 	$
	-0-
	$
	200,000

19.9	Subdivision 1.Amounts
 					
19.10 	The amounts that may be spent for each 
19.11 	purpose are specified in the following 
19.12 	subdivisions.

19.13
19.14	Subd. 2.Unemployment Insurance Aid 
Administration
 					
19.15 	$200,000 in fiscal year 2025 is for 
19.16 	administration of unemployment insurance 
19.17 	aid under Minnesota Statutes, section 
19.18 	124D.995. The base for fiscal year 2026 and 
19.19 	thereafter is $175,000.

19.20	Subd. 3.Unemployment Insurance Aid
 					
19.21 	$161,755,000 in fiscal year 2026 and 
19.22 	thereafter are base amounts to the Department 
19.23 	of Education for unemployment insurance aid 
19.24 	under Minnesota Statutes, section 124D.995. 
19.25 	If the appropriation is insufficient, the 
19.26 	commissioner must proportionately reduce the 
19.27 	aid payment to each recipient pursuant to 
19.28 	Minnesota Statutes, section 124D.995, 
19.29 	paragraph (c).

19.30	Sec. 6. MINNESOTA STATE ACADEMIES
 	$
	-0-
	$
	217,000
	
19.31 	This amount is for unemployment insurance 
19.32 	costs.

20.1
20.2	Sec. 7. PERPICH CENTER FOR ARTS 
EDUCATION
 	$
	-0-
	$
	66,000
	
20.3 	This amount is for unemployment insurance 
20.4 	costs.

20.5
20.6	Sec. 8. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	20,000
	$
	3,000
	
20.7 	This amount is for system programming and 
20.8 	notification costs associated with earned sick 
20.9 	and safe time.

20.10 	ARTICLE 2
20.11 	EXPLORE MINNESOTA

20.12 	Section 1. Minnesota Statutes 2022, section 116U.05, is amended to read:
20.13 	116U.05 EXPLORE MINNESOTA TOURISM.
20.14 	Explore Minnesota Tourism is created as an office in the executive branch with a director 
20.15 	appointed by the governor. The director is under the supervision of the commissioner of 
20.16 	employment and economic development and oversees Explore Minnesota Tourism and 
20.17 	Explore Minnesota for Business divisions. The director serves in the unclassified service 
20.18 	and must be qualified by experience and training in travel and tourism related fields.

20.19 	Sec. 2. [116U.06] EXPLORE MINNESOTA TOURISM.
20.20 	Explore Minnesota Tourism is a division of Explore Minnesota and exists to support 
20.21 	Minnesota's economy through promotion and facilitation of travel to and within the state 
20.22 	of Minnesota.

20.23 	Sec. 3. [116U.07] EXPLORE MINNESOTA FOR BUSINESS.
20.24 	Explore Minnesota for Business is a division of Explore Minnesota. Its mission is to 
20.25 	promote overall livability and workforce and economic opportunity in Minnesota. Explore 
20.26 	Minnesota for Business works in conjunction with the department of employment and 
20.27 	economic development to establish and meet statewide goals in these areas.

21.1 	Sec. 4. Minnesota Statutes 2022, section 116U.10, is amended to read:
21.2 	116U.10 DEFINITIONS.
21.3 		Subdivision 1.Scope. As used in For the purposes of this chapter, the terms defined in 
21.4 	this section have the meanings given them.
21.5 		Subd. 2.Director. "Director" means the executive director of Explore Minnesota 
21.6 	Tourism.
21.7 		Subd. 3.Office. "Office" means Explore Minnesota Tourism.

21.8 	Sec. 5. Minnesota Statutes 2022, section 116U.15, is amended to read:
21.9 	116U.15 MISSION.
21.10 	(a) The mission of Explore Minnesota Tourism is to promote and facilitate increased 
21.11 	travel to and within the state of Minnesota, promote overall livability, and promote workforce 
21.12 	and economic opportunity in Minnesota. To further the mission of Explore Minnesota, the 
21.13 	office is advised by councils focused on tourism and talent attraction and business marketing. 
21.14 	Its goals are to:
21.15 	(1) expand public and private partnerships through increased interagency efforts and 
21.16 	increased tourism and business industry participation;
21.17 	(2) increase productivity through enhanced flexibility and options; and
21.18 	(3) use innovative fiscal and human resource practices to manage the state's resources 
21.19 	and operate the office as efficiently as possible.
21.20 	(b) The director shall report to the legislature on the performance of the office's operations 
21.21 	and the accomplishment of its goals in the office's biennial budget according to section 
21.22 	16A.10, subdivision 1.

21.23 	Sec. 6. Minnesota Statutes 2022, section 116U.20, is amended to read:
21.24 	116U.20 ORGANIZATION.
21.25 	The director shall:
21.26 	(1) employ assistants and other officers, employees, and agents that the director considers 
21.27 	necessary to discharge the functions of the office; and
21.28 	(2) define the duties of the officers, employees, and agents, and delegate to them any of 
21.29 	the director's powers, duties, and responsibilities, subject to the director's control and under 
21.30 	conditions prescribed by the director.;
22.1 	(3) oversee the overall strategy and budgets of the Tourism and Business divisions; and
22.2 	(4) chair or cochair and oversee the Tourism and Business councils.

22.3 	Sec. 7. [116U.24] EXPLORE MINNESOTA COUNCILS.
22.4 	(a) The director shall be advised by the Explore Minnesota Tourism Council and Explore 
22.5 	Minnesota for Business Council each consisting of voting members appointed by the governor 
22.6 	for four-year terms. The director of Explore Minnesota serves as the chair or cochair of 
22.7 	each council. The director may assign employees of the office to participate in oversight of 
22.8 	council operations.
22.9 	(b) Each council shall act to serve the broader interests of the council's divisions by 
22.10 	promoting activities and programs of the office that support, maintain, and expand the state's 
22.11 	domestic and international travel and trade markets, thereby generating increased visitor 
22.12 	expenditures, revenue, and employment.
22.13 	(c) Filling of membership vacancies is as provided in section 15.059. The terms of 
22.14 	one-half of the members shall be coterminous with the governor and the terms of the 
22.15 	remaining one-half of the members shall end on the first Monday in January one year after 
22.16 	the terms of the other members. Members may serve until their successors are appointed 
22.17 	and qualify. Members are not compensated. A member may be reappointed.
22.18 	(d) The council shall meet at least four times per year and at other times determined by 
22.19 	each council.
22.20 	(e) If compliance with section 13D.02 is impractical, the Explore Minnesota councils 
22.21 	may conduct a meeting of their members by telephone or other electronic means so long as 
22.22 	the following conditions are met:
22.23 	(1) all members of each council participating in the meeting, wherever their physical 
22.24 	location, can hear one another and can hear all discussion and testimony;
22.25 	(2) members of the public present at the regular meeting location of the council can hear 
22.26 	clearly all discussion and testimony and all votes of members of each council and, if needed, 
22.27 	receive those services required by sections 15.44 and 15.441;
22.28 	(3) at least one member of each council is physically present at the regular meeting 
22.29 	location; and
22.30 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
22.31 	identified and recorded.
23.1 	(f) Each member of each council participating in a meeting by telephone or other 
23.2 	electronic means is considered present at the meeting for purposes of determining a quorum 
23.3 	and participating in all proceedings.
23.4 	(g) If telephone or other electronic means is used to conduct a meeting, each council, to 
23.5 	the extent practicable, shall allow a person to monitor the meeting electronically from a 
23.6 	remote location. Each council may require the person making such a connection to pay for 
23.7 	documented marginal costs that each council incurs as a result of the additional connection.
23.8 	(h) If telephone or other electronic means is used to conduct a regular, special, or 
23.9 	emergency meeting, the council shall provide notice of the regular meeting location, of the 
23.10 	fact that some members may participate by telephone or other electronic means, and whether 
23.11 	a cost will be incurred under paragraph (f). The timing and method of providing notice is 
23.12 	governed by section 13D.04.

23.13 	Sec. 8. Minnesota Statutes 2022, section 116U.25, is amended to read:
23.14 	116U.25 EXPLORE MINNESOTA TOURISM COUNCIL.
23.15 	(a) The director shall be advised by the Explore Minnesota Tourism Council consisting 
23.16 	of up to 28 35 voting members appointed by the governor for four-year terms, including:
23.17 	(1) the director of Explore Minnesota Tourism who serves as the chair;
23.18 	(2) eleven fourteen representatives of statewide associations representing bed and 
23.19 	breakfast establishments, golf, festivals and events, counties, convention and visitor bureaus, 
23.20 	lodging, resorts, trails, campgrounds, restaurants, and craft beverage establishments, chambers 
23.21 	of commerce, chambers of commerce for underrepresented communities, and Tribal nations;
23.22 	(3) one representative from each of the tourism marketing regions of the state as 
23.23 	designated by the office;
23.24 	(4) six ten representatives of the tourism business representing transportation, retail, 
23.25 	travel agencies, tour operators, travel media, and convention facilities, arts and culture, 
23.26 	sports, outdoor recreation, and tourism business owners from underrepresented communities;
23.27 	(5) one or more ex officio nonvoting members including at least one from the University 
23.28 	of Minnesota Tourism Center;
23.29 	(6) four legislators, two from each house, one each from the two largest political party 
23.30 	caucuses in each house, appointed according to the rules of the respective houses; and
23.31 	(7) other persons, if any, as designated from time to time by the governor.
24.1 	(b) The council shall act to serve the broader interests of tourism in Minnesota by 
24.2 	promoting activities that support, maintain, and expand the state's domestic and international 
24.3 	travel market, thereby generating increased visitor expenditures, tax revenue, and 
24.4 	employment.
24.5 	(c) Filling of membership vacancies is as provided in section 15.059. The terms of 
24.6 	one-half of the members shall be coterminous with the governor and the terms of the 
24.7 	remaining one-half of the members shall end on the first Monday in January one year after 
24.8 	the terms of the other members. Members may serve until their successors are appointed 
24.9 	and qualify. Members are not compensated. A member may be reappointed.
24.10 	(d) The council shall meet at least four times per year and at other times determined by 
24.11 	the council.
24.12 	(e) If compliance with section 13D.02 is impractical, the Explore Minnesota Tourism 
24.13 	Council may conduct a meeting of its members by telephone or other electronic means so 
24.14 	long as the following conditions are met:
24.15 	(1) all members of the council participating in the meeting, wherever their physical 
24.16 	location, can hear one another and can hear all discussion and testimony;
24.17 	(2) members of the public present at the regular meeting location of the council can hear 
24.18 	clearly all discussion and testimony and all votes of members of the council and, if needed, 
24.19 	receive those services required by sections 15.44 and 15.441;
24.20 	(3) at least one member of the council is physically present at the regular meeting location; 
24.21 	and
24.22 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
24.23 	identified and recorded.
24.24 	(f) Each member of the council participating in a meeting by telephone or other electronic 
24.25 	means is considered present at the meeting for purposes of determining a quorum and 
24.26 	participating in all proceedings.
24.27 	(g) If telephone or other electronic means is used to conduct a meeting, the council, to 
24.28 	the extent practical, shall allow a person to monitor the meeting electronically from a remote 
24.29 	location. The council may require the person making such a connection to pay for 
24.30 	documented marginal costs that the council incurs as a result of the additional connection.
24.31 	(h) If telephone or other electronic means is used to conduct a regular, special, or 
24.32 	emergency meeting, the council shall provide notice of the regular meeting location, of the 
24.33 	fact that some members may participate by telephone or other electronic means, and of the 
25.1 	provisions of paragraph (g). The timing and method of providing notice is governed by 
25.2 	section 13D.04.

25.3 	Sec. 9. [116U.242] EXPLORE MINNESOTA FOR BUSINESS COUNCIL.
25.4 	(a) The director shall be advised by the Explore Minnesota for Business Council 
25.5 	consisting of up to 28 voting members appointed by the governor for four-year terms, 
25.6 	including:
25.7 	(1) the director of Explore Minnesota and the commissioner of employment and economic 
25.8 	development who serve as cochairs;
25.9 	(2) three representatives in marketing, human resources, or executive leadership from 
25.10 	Minnesota-based companies with more than 100 employees representing Minnesota's key 
25.11 	industries, including health care, technology, food and agriculture, manufacturing, retail, 
25.12 	energy, and support services;
25.13 	(3) two representatives from statewide or regional marketing or business association 
25.14 	leadership, the Iron Range, and nonprofits focused on economic development or human 
25.15 	resource management;
25.16 	(4) one representative from a Minnesota college or university staff, faculty, leadership, 
25.17 	student leadership, or alumni association;
25.18 	(5) one member representing Minnesota's start-up and entrepreneurial industry who has 
25.19 	started at least one Minnesota-based business in the last five years and has at least 20 
25.20 	employees;
25.21 	(6) two representatives from the Minnesota Indian Affairs Council and Minnesota Tribal 
25.22 	leadership, including casino management;
25.23 	(7) two representatives from Minnesota's Ethnic Chambers of Commerce Leadership 
25.24 	and the Minnesota Chamber of Commerce; and
25.25 	(8) one at-large representative in the field of general marketing, talent attraction, or 
25.26 	economic development.
25.27 	(b) The council shall act to serve the broader interest of promoting overall livability and 
25.28 	workforce and economic opportunity in Minnesota. Members shall advise Explore Minnesota 
25.29 	for Business's marketing efforts by emphasizing and prioritizing diversity, equity, inclusion, 
25.30 	and accessibility and providing professional marketing insights.

26.1 	Sec. 10. Minnesota Statutes 2022, section 116U.30, is amended to read:
26.2 	116U.30 DUTIES OF DIRECTOR.
26.3 	(a) The director shall:
26.4 	(1) publish, disseminate, and distribute informational and promotional materials;
26.5 	(2) promote and encourage the coordination of Minnesota travel, tourism, overall 
26.6 	livability, and workforce and economic opportunity promotion efforts with other state 
26.7 	agencies and develop multiagency marketing strategies when appropriate;
26.8 	(3) promote and encourage the expansion and development of international tourism, 
26.9 	trade, and Minnesota livability marketing;
26.10 	(4) advertise and disseminate information about Minnesota travel, tourism, and workforce 
26.11 	and economic development opportunities;
26.12 	(5) aid various local communities to improve their travel, tourism, and overall livability
26.13 	marketing programs;
26.14 	(6) coordinate and implement a comprehensive state travel, tourism, workforce and 
26.15 	economic development, and overall livability marketing program programs that takes take
26.16 	into consideration public and private businesses and attractions;
26.17 	(7) contract, in accordance with section 16C.08, for professional services if the work or 
26.18 	services cannot be satisfactorily performed by employees of the agency or by any other 
26.19 	state agency;
26.20 	(8) provide local, regional, and statewide tourism organizations with information, 
26.21 	technical assistance, training, and advice on using state tourism and livability information 
26.22 	and programs; and
26.23 	(9) generally gather, compile, and make available statistical information relating to 
26.24 	Minnesota travel, tourism, workforce and economic development, overall livability, and 
26.25 	related areas in this state, with. The director has the authority to call upon other state agencies 
26.26 	for statistical data and results obtained by them and to arrange and compile that statistical 
26.27 	information.
26.28 	(b) The director may:
26.29 	(1) apply for, receive, and spend money for travel, tourism, workforce and economic 
26.30 	development, and overall livability development and marketing from other agencies and 
26.31 	tourism, organizations, and businesses;
27.1 	(2) apply for, accept, and disburse grants and other aids for tourism development and 
27.2 	marketing from the federal government and other sources;
27.3 	(3) enter into joint powers or cooperative agreements with agencies of the federal 
27.4 	government, local governmental units, regional development commissions, other state 
27.5 	agencies, the University of Minnesota and other educational institutions, other states, 
27.6 	Canadian provinces, and local, statewide, and regional tourism organizations as necessary 
27.7 	to perform the director's duties;
27.8 	(4) enter into interagency agreements and agree to share net revenues with the contributing 
27.9 	agencies;
27.10 	(5) make grants;
27.11 	(6) conduct market research and analysis to improve marketing techniques in the area 
27.12 	of travel, tourism, workforce and economic development, and overall livability;
27.13 	(7) monitor and study trends in the tourism industry related industries and provide 
27.14 	resources and training to address change;
27.15 	(8) annually convene conferences of Minnesota tourism providers for the purposes of 
27.16 	exchanging information on tourism development, coordinating marketing activities, and 
27.17 	formulating tourism, overall livability, and workforce and economic opportunity promotion
27.18 	development strategies; and
27.19 	(9) enter into tourism promotion contracts or other agreements with private persons and 
27.20 	public entities, including agreements to establish and maintain offices and other types of 
27.21 	representation in foreign countries, to promote international travel and to implement this 
27.22 	chapter.
27.23 	(c) Contracts for goods and nonprofessional technical services made under paragraph 
27.24 	(b), clauses (3) and (9), are not subject to the provisions of sections 16C.03, subdivision 3, 
27.25 	and 16C.06 concerning competitive bidding and section 16C.055 concerning barter 
27.26 	arrangements. Unless otherwise determined by the commissioner of administration, all other 
27.27 	provisions of chapter 16C apply to this section, including section 16C.08, relating to 
27.28 	professional and technical services. Contracts may be negotiated and are not subject to the 
27.29 	provisions of chapter 16C relating to competitive bidding.

28.1 	Sec. 11. Minnesota Statutes 2022, section 116U.35, is amended to read:
28.2 	116U.35 PROMOTIONAL EXPENSES.
28.3 	To promote travel, tourism, workforce and economic development, and overall livability
28.4 	of the state, the director may expend money appropriated by the legislature for these purposes 
28.5 	in the same manner as private persons, firms, corporations, and associations make 
28.6 	expenditures for these purposes. Policies on promotional expenses must be approved by the 
28.7 	Explore Minnesota Tourism Council and the commissioner of administration. A policy for 
28.8 	expenditures on food, lodging, and travel must be approved by the commissioner of 
28.9 	management and budget. No money may be expended for the appearance in radio or 
28.10 	television broadcasts by an elected public official.

28.11 	ARTICLE 3
28.12 	PAID FAMILY AND MEDICAL BENEFITS; APPROPRIATIONS

28.13
28.14	Section 1. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	41,659,000
	$
	36,492,000
	
28.15 	This amount is for the paid family and medical 
28.16 	leave fund in Minnesota Statutes, chapter 
28.17 	268A. The base for the paid family and 
28.18 	medical leave fund is $64,657,000 in fiscal 
28.19 	year 2026 and $92,640,000 in fiscal year 2027.

28.20
28.21	Sec. 2. DEPARTMENT OF LABOR AND 
INDUSTRY
 	$
	601,000
	$
	480,000
	
28.22 	This amount is from the paid family and 
28.23 	medical leave fund.
28.24 	The base from the paid family and medical 
28.25 	leave fund for fiscal year 2026 is $646,000.

28.26	Sec. 3. DEPARTMENT OF COMMERCE
 	$
	367,000
	$
	316,000
	
28.27 	This amount is from the paid family and 
28.28 	medical leave fund.
28.29 	The base from the paid family and medical 
28.30 	leave fund for fiscal year 2026 is $128,000.

29.1 	Sec. 4. TRANSFER.
 29.2 	The Commissioner of Minnesota Management and Budget shall transfer $668,321,000 
29.3 	in fiscal year 2024 from the general fund to the Paid Family and Medical Leave Fund.

29.4 	Sec. 5. ENTERPRISE COSTS BASE ESTABLISHMENT.
 29.5 	A general fund appropriation base of $75,000 in fiscal year 2026 and $5,824,000 in 
29.6 	fiscal year 2027 are established to fund enterprise requirements imposed by Minnesota 
29.7 	Statutes, chapter 268A, employee notification, and the costs incurred by state agencies due 
29.8 	to employer-paid premiums established in Minnesota Statutes, chapter 268A. The 
29.9 	commissioner of management and budget shall allocate these amounts to agency base 
29.10 	budgets based on the expected costs incurred by those agencies.

29.11 	Sec. 6. MINNESOTA MANAGEMENT AND BUDGET.
 29.12 	The base from the Paid Family and Medical Leave Fund for fiscal year 2026 is $43,000 
29.13 	and in fiscal year 2027 is $44,000.

29.14 	Sec. 7. DEPARTMENT OF HUMAN SERVICES.
 29.15 	The base from the Paid Family and Medical Leave fund for fiscal year 2026 is $3,635,000 
29.16 	and for fiscal year 2027 is $0.

29.17 	Sec. 8. SUPREME COURT.
 29.18 	The base from the Paid Family and Medical Leave fund for fiscal year 2026 is $20,000 
29.19 	and for fiscal year 2027 is $0.

29.20 	Sec. 9. MINNESOTA STATE LEGISLATURE.
 29.21 	The base from the Paid Family and Medical Leave fund for fiscal year 2026 is $11,000 
29.22 	and for fiscal year 2027 is $0.

29.23 	Sec. 10. COURT OF APPEALS.
 29.24 	The base from the Paid Family and Medical Leave fund for fiscal year 2026 is $0 and 
29.25 	for fiscal year 2027 is $5,600,000.

30.1 	ARTICLE 4
30.2 	DEED POLICY

30.3 	Section 1. [116J.418] OFFICE OF CHILD CARE COMMUNITY PARTNERSHIPS.
30.4 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
30.5 	subdivision have the meanings given them.
30.6 	(b) "Child care" means the care of children while parents or guardians are at work or 
30.7 	absent for another reason.
30.8 	(c) "Local unit of government" has the meaning given in section 116G.03, subdivision 
30.9 	3.
30.10 	(d) "Office" means the Office of Child Care Community Partnerships established in 
30.11 	subdivision 2, paragraph (a).
30.12 		Subd. 2.Office established; purpose. (a) An Office of Child Care Community 
30.13 	Partnerships is established within the Department of Employment and Economic 
30.14 	Development. The department may employ a director and staff necessary to carry out the 
30.15 	office's duties under subdivision 4.
30.16 	(b) The purpose of the office is to support child care businesses within the state in order 
30.17 	to:
30.18 	(1) increase the quantity of quality child care available; and
30.19 	(2) improve accessibility to child care for underserved communities and populations.
30.20 		Subd. 3.Organization. The office shall consist of a director of the Office of Child Care 
30.21 	Community Partnerships, as well as any staff necessary to carry out the office's duties under 
30.22 	subdivision 4.
30.23 		Subd. 4.Duties. The office shall have the power and duty to:
30.24 	(1) coordinate with state, regional, local, and private entities to promote investment in 
30.25 	increasing the quantity of quality child care in Minnesota;
30.26 	(2) coordinate with other agencies including but not limited to Minnesota Management 
30.27 	and Budget, the Department of Human Services, and the Department of Education to develop, 
30.28 	recommend, and implement solutions to increase the quantity of quality child care openings;
30.29 	(3) administer the child care economic development grant program and other 
30.30 	appropriations to the department for this purpose;
30.31 	(4) monitor the child care business development efforts of other states and countries;
31.1 	(5) provide support to the governor's Children's Cabinet;
31.2 	(6) provide an annual report, as required by subdivision 5; and
31.3 	(7) perform any other activities consistent with the office's purpose.
31.4 		Subd. 5.Reporting. (a) Beginning January 15, 2024, and each year thereafter, the Office 
31.5 	of Child Care Community Partnerships shall report to the legislative committees with 
31.6 	jurisdiction over child care policy and finance on the office's activities during the previous 
31.7 	year.
31.8 	(b) The report shall contain, at a minimum:
31.9 	(1) an analysis of the current access to child care within the state;
31.10 	(2) an analysis of the current shortage of child care workers within the state;
31.11 	(3) a summary of the office's activities;
31.12 	(4) any proposed legislative and policy initiatives; and
31.13 	(5) any other information requested by the legislative committees with jurisdiction over 
31.14 	child care, or that the office deems necessary.
31.15 	(c) The report may be submitted electronically and is subject to section 3.195, subdivision 
31.16 	1.

31.17 	Sec. 2. Minnesota Statutes 2022, section 116J.5492, subdivision 8, is amended to read:
31.18 		Subd. 8.Meetings. The advisory committee must meet monthly until the energy transition 
31.19 	plan is submitted quarterly and submit an updated energy transition plan annually to the 
31.20 	governor and the legislature. Once submitted, the committee shall develop a regular meeting 
31.21 	schedule as needed. The chair may call additional meetings as necessary.

31.22 	Sec. 3. Minnesota Statutes 2022, section 116J.5492, subdivision 10, is amended to read:
31.23 		Subd. 10.Expiration. This section expires the day after the Minnesota energy transition 
31.24 	plan required under section 116J.5493 is submitted to the legislature and the governor on 
31.25 	June 30, 2027.

31.26 	Sec. 4. [116J.659] OFFICE OF NEW AMERICANS.
31.27 		Subdivision 1.Office established; purpose. (a) The Office of New Americans is 
31.28 	established within the Department of Employment and Economic Development. The governor 
31.29 	must appoint an assistant commissioner who serves in the unclassified service. The assistant 
32.1 	commissioner must hire a program manager and an office assistant, as well as any staff 
32.2 	necessary to carry out the office's duties under subdivision 2.
32.3 	(b) The purpose of the office is to serve immigrants and refugees in Minnesota by:
32.4 	(1) addressing challenges that face immigrants and refugees in Minnesota, and creating 
32.5 	access in economic development and workforce programs and services; and
32.6 	(2) providing interstate agency coordination, policy reviews, and guidance that assist in 
32.7 	creating access to immigrants and refugees.
32.8 		Subd. 2.Duties. (a) The office has the duty to:
32.9 	(1) create and implement a statewide strategy to support immigrant and refugee integration 
32.10 	into Minnesota communities;
32.11 	(2) address the state's workforce needs by connecting employers and job seekers within 
32.12 	the immigrant and refugee community;
32.13 	(3) identify strategies to reduce employment barriers, including the creation of alternative 
32.14 	pathways for immigrants and refugees;
32.15 	(4) support programs and activities designed to ensure equitable access to the workforce 
32.16 	for immigrants and refugees, including those who are disabled;
32.17 	(5) support equitable opportunities for immigrants and refugees to access state government 
32.18 	services and grants;
32.19 	(6) work with state agencies and community and foundation partners to undertake studies 
32.20 	and research and analyze economic and demographic trends to better understand and serve 
32.21 	the state's immigrant and refugee communities;
32.22 	(7) coordinate and establish best practices for language access initiatives to all state 
32.23 	agencies;
32.24 	(8) convene stakeholders and provide assistance and recommendations to the governor 
32.25 	on issues impacting immigrants and refugees;
32.26 	(9) make policy recommendations to the governor on issues impacting immigrants and 
32.27 	refugees;
32.28 	(10) develop systems of communication and collaboration with local offices and service 
32.29 	providers to ensure that immigrants and refugees can access support available to them to 
32.30 	address multisectoral barriers to success, including in the areas of employment, housing, 
32.31 	legal services, health care, and education;
33.1 	(11) collaborate with existing immigrant and refugee inclusion positions and offices at 
33.2 	the city and county level statewide;
33.3 	(12) encourage and support the creation of new immigrant and refugee inclusion positions 
33.4 	and offices at the city and county level statewide;
33.5 	(13) serve as the point of contact for immigrants and refugees accessing resources both 
33.6 	within the department and with boards charged with oversight of a profession;
33.7 	(14) promulgate rules necessary to implement and effectuate this section;
33.8 	(15) provide an annual report, as required by subdivision 3; and
33.9 	(16) perform any other activities consistent with the office's purpose.
33.10 		Subd. 3.Reporting. (a) Beginning January 15, 2024, and each year thereafter, the Office 
33.11 	of New Americans shall report to the legislative committees with jurisdiction over the 
33.12 	office's activities during the previous year.
33.13 	(b) The report shall contain, at a minimum:
33.14 	(1) a summary of the office's activities;
33.15 	(2) suggested policies, incentives, and legislation designed to accelerate the achievement 
33.16 	of the duties under subdivision 2;
33.17 	(3) any proposed legislative and policy initiatives;
33.18 	(4) the amount and types of grants awarded under subdivision 6; and
33.19 	(5) any other information deemed necessary and requested by the legislative committees 
33.20 	with jurisdiction over the office.
33.21 	(c) The report may be submitted electronically and is subject to section 3.195, subdivision 
33.22 	1.
33.23 		Subd. 4.Interdepartmental Coordinating Council on Immigrant and Refugee 
33.24 	Affairs. (a) An interdepartmental Coordinating Council on Immigrant and Refugee Affairs 
33.25 	is established to advise the Office of New Americans.
33.26 	(b) The purpose of the council is to identify and establish ways in which state departments 
33.27 	and agencies can work together to deliver state programs and services effectively and 
33.28 	efficiently to Minnesota's immigrant and refugee populations. The council shall implement 
33.29 	policies, procedures, and programs requested by the governor through the state departments 
33.30 	and offices.
34.1 	(c) The council shall be chaired by the assistant commissioner of the Office of New 
34.2 	Americans and shall be comprised of the commissioners, department directors, or senior 
34.3 	leadership designees, from the following state departments and offices:
34.4 	(1) the governor's office;
34.5 	(2) the Department of Administration;
34.6 	(3) the Department of Employment and Economic Development;
34.7 	(4) the Department of Human Services;
34.8 	(5) the Department of Human Services Resettlement Program Office;
34.9 	(6) the Department of Labor and Industry;
34.10 	(7) the Department of Health;
34.11 	(8) the Department of Education;
34.12 	(9) the Office of Higher Education;
34.13 	(10) the Department of Public Safety;
34.14 	(11) the Department of Corrections;
34.15 	(12) the Council for Minnesotans of African Heritage;
34.16 	(13) the Minnesota Council on Latino Affairs; and
34.17 	(14) the Council on Asian Pacific Minnesotans.
34.18 	(d) Each department or office serving as a member of the council shall designate one 
34.19 	staff member as an immigrant and refugee services liaison. The liaisons' responsibilities 
34.20 	shall include:
34.21 	(1) preparation and dissemination of information and services available to immigrants 
34.22 	and refugees; and
34.23 	(2) interfacing with the Office of New Americans on issues that impact immigrants and 
34.24 	refugees and their communities.
34.25 		Subd. 5.No right of action. Nothing in this section shall be construed to create any 
34.26 	right or benefit, substantive or procedural, enforceable at law or in equity by any party 
34.27 	against the state; its departments, agencies, or entities; its officers, employees, or agents; 
34.28 	or any other person.
34.29 		Subd. 6.Grants. The office may apply for grants for interested state agencies, community 
34.30 	partners, and stakeholders under this section to carry out the duties under subdivision 2. In 
35.1 	awarding grants, the commissioner must allocate grants as evenly as practicable among 
35.2 	interested parties.

35.3 	Sec. 5. [116J.681] SMALL BUSINESS NAVIGATORS.
35.4 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
35.5 	the meanings given.
35.6 	(b) "Commissioner" means the commissioner of employment and economic development.
35.7 	(c) "Small business" means a small business concern as defined under section 3 of the 
35.8 	Small Business Act, United States Code, title 15, section 632.
35.9 	(d) "Underserved" means Black, Indigenous, people of color, veterans, people with 
35.10 	disabilities, rural Minnesotans, and low-income individuals.
35.11 		Subd. 2.Generally. Small business navigators must work with small businesses and 
35.12 	entrepreneurs to help navigate state programs, as well as programs managed by 
35.13 	nongovernmental partners and other public and private organizations. The purpose of small 
35.14 	business navigators is to connect small businesses and entrepreneurs with the services needed 
35.15 	to be successful.
35.16 		Subd. 3.Staffing. Staff of small business navigators serve in the classified service of 
35.17 	the state and operate as part of the department's Small Business Assistance Office.
35.18 		Subd. 4.Commissioner. The commissioner shall develop and implement training 
35.19 	materials and reporting and evaluation procedures for the activities of small business 
35.20 	navigators.
35.21 		Subd. 5.Duties. Small business navigators shall:
35.22 	(1) provide information and direction to small businesses and entrepreneurs in a timely, 
35.23 	accurate, and comprehensive manner, connecting them with appropriate assistance services 
35.24 	from the state and other governmental and nongovernmental organizations;
35.25 	(2) build relationships with and provide targeted outreach to historically underserved 
35.26 	populations and communities;
35.27 	(3) provide for the delivery of information and assistance, including but not limited to 
35.28 	the use of media, in a culturally appropriate manner that accommodates businesses and 
35.29 	entrepreneurs with limited English proficiency;
35.30 	(4) ensure the availability of small business navigators and materials in all media to 
35.31 	persons with physical disabilities; and
36.1 	(5) coordinate with and augment the services and outreach of the agency's Small Business 
36.2 	Assistance Office, Small Business Development Center, Office of Small Business 
36.3 	Partnerships, and Launch Minnesota.

36.4 	Sec. 6. [116J.682] SMALL BUSINESS ASSISTANCE PARTNERSHIPS PROGRAM.
36.5 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
36.6 	subdivision have the meanings given.
36.7 	(b) "Commissioner" means the commissioner of employment and economic development.
36.8 	(c) "Partner organizations" or "partners" means:
36.9 	(1) nonprofit organizations or public entities, including higher education institutions, 
36.10 	engaged in business development or economic development;
36.11 	(2) community development financial institutions; or
36.12 	(3) community development corporations.
36.13 	(d) "Small business" has the same meaning as defined under section 3 of the Small 
36.14 	Business Act, United States Code, title 15, section 632.
36.15 	(e) "Underserved populations and geographies" means individuals who are Black, 
36.16 	Indigenous, people of color, veterans, people with disabilities, and low-income individuals 
36.17 	and includes people from rural Minnesota.
36.18 		Subd. 2.Establishment. The commissioner shall establish the small business assistance 
36.19 	partnerships program to make grants to local and regional community-based organizations 
36.20 	to provide small business development and technical assistance services to entrepreneurs 
36.21 	and small business owners.
36.22 		Subd. 3.Small business assistance partnerships grants. (a) The commissioner shall 
36.23 	make small business assistance partnerships grants to local and regional community-based 
36.24 	organizations to provide small business development and technical assistance services to 
36.25 	entrepreneurs and small business owners.  The commissioner must prioritize applications 
36.26 	that provide services to underserved populations and geographies.
36.27 	(b) Grantees shall use the grant funds to provide high-quality, free or low-cost 
36.28 	professional business development and technical assistance services that support the start-up, 
36.29 	growth, and success of Minnesota's entrepreneurs and small business owners.
36.30 		Subd. 4.Report. By January 31 of each year, partner organizations participating in the 
36.31 	program must provide a report to the commissioner on the outcomes of the program including 
37.1 	but not limited to the number of entrepreneurs and small businesses served, number of hours 
37.2 	of business assistance services provided, number of new businesses started, number of 
37.3 	full-time equivalent jobs created and retained, and demographic and geographic details of 
37.4 	the individuals being served.

37.5 	Sec. 7. [116J.8733] MINNESOTA EXPANDING OPPORTUNITY FUND PROGRAM.
37.6 		Subdivision 1.Establishment. The Minnesota Expanding Opportunity Fund Program 
37.7 	is established to capitalize Minnesota nonprofit corporations to increase lending activities 
37.8 	with Minnesota small businesses.
37.9 		Subd. 2.Long-term loans. The department may make long-term loans of ten to 12 years 
37.10 	at 0.5 percent or lower interest rates to nonprofit corporations to enable nonprofit corporations 
37.11 	to make more loans to Minnesota small businesses. The department may use the interest 
37.12 	received to offset the cost of administering small business lending programs.
37.13 		Subd. 3.Loan eligibility; nonprofit corporation. (a) The eligible nonprofit corporation 
37.14 	must not meet the definition of recipient under section 116J.993, subdivision 6.
37.15 	(b) The commissioner may enter into loan agreements with Minnesota nonprofit 
37.16 	corporations that apply to participate in the Minnesota Expanding Opportunity Fund Program. 
37.17 	The commissioner shall evaluate applications from applicant nonprofit corporations. In 
37.18 	evaluating applications, the department must consider, among other things, whether the 
37.19 	nonprofit corporation:
37.20 	(1) meets the statutory definition of a community development financial institution as 
37.21 	defined in section 103 of the Riegle Community Development and Regulatory Improvement 
37.22 	Act of 1994, United States Code, title 12, section 4702;
37.23 	(2) has a board of directors or loan or credit committee that includes citizens experienced 
37.24 	in small business services and community development;
37.25 	(3) has the technical skills to analyze small business loan requests;
37.26 	(4) is familiar with other available public and private funding sources and economic 
37.27 	development programs;
37.28 	(5) is enrolled in one or more eligible federally funded state programs; and
37.29 	(6) has the administrative capacity to manage a loan portfolio.
37.30 		Subd. 4.Revolving loan fund. (a) The commissioner shall establish a revolving loan 
37.31 	fund to make loans to nonprofit corporations for the purpose of increasing nonprofit 
37.32 	corporation capital and lending activities with Minnesota small businesses.
38.1 	(b) Nonprofit corporations that receive loans from the commissioner under the program 
38.2 	must establish appropriate accounting practices for the purpose of tracking eligible loans.
38.3 		Subd. 5.Loan portfolio administration. (a) The interest rate charged by a nonprofit 
38.4 	corporation for a loan under this subdivision must not exceed the Wall Street Journal prime 
38.5 	rate plus two percent. A nonprofit corporation participating in the Minnesota Expanding 
38.6 	Opportunity Fund Program may charge a loan closing fee equal to or less than two percent 
38.7 	of the loan value.
38.8 	(b) The nonprofit corporation may retain all earnings from fees and interest from loans 
38.9 	to small businesses.
38.10 		Subd. 6.Cooperation. A nonprofit corporation that receives a program loan shall 
38.11 	cooperate with other organizations, including but not limited to community development 
38.12 	corporations, community action agencies, and the Minnesota small business development 
38.13 	centers.
38.14 		Subd. 7.Reporting requirements. (a) A nonprofit corporation that receives a program 
38.15 	loan must submit an annual report to the commissioner by February 15 of each year that 
38.16 	includes:
38.17 	(1) the number of businesses to which a loan was made;
38.18 	(2) a description of businesses supported by the program;
38.19 	(3) demographic information, as specified by the commissioner, regarding each borrower;
38.20 	(4) an account of loans made during the calendar year;
38.21 	(5) the program's impact on job creation and retention;
38.22 	(6) the source and amount of money collected and distributed by the program;
38.23 	(7) the program's assets and liabilities; and
38.24 	(8) an explanation of administrative expenses.
38.25 	(b) A nonprofit corporation that receives a program loan must provide for an independent 
38.26 	annual audit to be performed in accordance with generally accepted accounting practices 
38.27 	and auditing standards and submit a copy of each annual audit report to the commissioner.

38.28 	Sec. 8. Minnesota Statutes 2022, section 116J.8748, subdivision 3, is amended to read:
38.29 		Subd. 3.Minnesota job creation fund business designation; requirements. (a) To 
38.30 	receive designation as a Minnesota job creation fund business, a business must satisfy all 
38.31 	of the following conditions:
39.1 	(1) the business is or will be engaged in, within Minnesota, one of the following as its 
39.2 	primary business activity:
39.3 	(i) manufacturing;
39.4 	(ii) warehousing;
39.5 	(iii) distribution;
39.6 	(iv) information technology;
39.7 	(v) finance;
39.8 	(vi) insurance; or
39.9 	(vii) professional or technical services;
39.10 	(2) the business must not be primarily engaged in lobbying; gambling; entertainment; 
39.11 	professional sports; political consulting; leisure; hospitality; or professional services provided 
39.12 	by attorneys, accountants, business consultants, physicians, or health care consultants, or 
39.13 	primarily engaged in making retail sales to purchasers who are physically present at the 
39.14 	business's location;
39.15 	(3) the business must enter into a binding construction and job creation business subsidy 
39.16 	agreement with the commissioner to expend directly, or ensure expenditure by or in 
39.17 	partnership with a third party constructing or managing the project, at least $500,000 in 
39.18 	capital investment in a capital investment project that includes a new, expanded, or remodeled 
39.19 	facility within one year following designation as a Minnesota job creation fund business or 
39.20 	$250,000 if the project is located outside the metropolitan area as defined in section 200.02, 
39.21 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
39.22 	women, or persons with a disability; and:
39.23 	(i) create at least ten new full-time employee positions within two years of the benefit 
39.24 	date following the designation as a Minnesota job creation fund business or five new full-time 
39.25 	employee positions within two years of the benefit date if the project is located outside the 
39.26 	metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business 
39.27 	is cumulatively owned by minorities, veterans, women, or persons with a disability; or
39.28 	(ii) expend at least $25,000,000, which may include the installation and purchase of 
39.29 	machinery and equipment, in capital investment and retain at least 200 100 employees for 
39.30 	projects located in the metropolitan area as defined in section 200.02, subdivision 24, and 
39.31 	75 or expend at least $10,000,000, which may include the installation and purchase of 
40.1 	machinery and equipment, in capital investment and retain at least 50 employees for projects 
40.2 	located outside the metropolitan area;
40.3 	(4) positions or employees moved or relocated from another Minnesota location of the 
40.4 	Minnesota job creation fund business must not be included in any calculation or determination 
40.5 	of job creation or new positions under this paragraph; and
40.6 	(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the 
40.7 	working hours of an employee for the purpose of hiring an individual to satisfy job creation 
40.8 	goals under this subdivision.
40.9 	(b) Prior to approving the proposed designation of a business under this subdivision, the 
40.10 	commissioner shall consider the following:
40.11 	(1) the economic outlook of the industry in which the business engages;
40.12 	(2) the projected sales of the business that will be generated from outside the state of 
40.13 	Minnesota;
40.14 	(3) how the business will build on existing regional, national, and international strengths 
40.15 	to diversify the state's economy;
40.16 	(4) whether the business activity would occur without financial assistance;
40.17 	(5) whether the business is unable to expand at an existing Minnesota operation due to 
40.18 	facility or land limitations;
40.19 	(6) whether the business has viable location options outside Minnesota;
40.20 	(7) the effect of financial assistance on industry competitors in Minnesota;
40.21 	(8) financial contributions to the project made by local governments; and
40.22 	(9) any other criteria the commissioner deems necessary.
40.23 	(c) Upon receiving notification of local approval under subdivision 2, the commissioner 
40.24 	shall review the determination by the local government and consider the conditions listed 
40.25 	in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local 
40.26 	area to designate a business as a Minnesota job creation fund business.
40.27 	(d) If the commissioner designates a business as a Minnesota job creation fund business, 
40.28 	the business subsidy agreement shall include the performance outcome commitments and 
40.29 	the expected financial value of any Minnesota job creation fund benefits.
41.1 	(e) The commissioner may amend an agreement once, upon request of a local government 
41.2 	on behalf of a business, only if the performance is expected to exceed thresholds stated in 
41.3 	the original agreement.
41.4 	(f) A business may apply to be designated as a Minnesota job creation fund business at 
41.5 	the same location more than once only if all goals under a previous Minnesota job creation 
41.6 	fund agreement have been met and the agreement is completed.

41.7 	Sec. 9. Minnesota Statutes 2022, section 116J.8748, subdivision 4, is amended to read:
41.8 		Subd. 4.Certification; benefits. (a) The commissioner may certify a Minnesota job 
41.9 	creation fund business as eligible to receive a specific value of benefit under paragraphs (b) 
41.10 	and (c) when the business has achieved its job creation and capital investment goals noted 
41.11 	in its agreement under subdivision 3.
41.12 	(b) A qualified Minnesota job creation fund business may be certified eligible for the 
41.13 	benefits in this paragraph for up to five years for projects located in the metropolitan area 
41.14 	as defined in section 200.02, subdivision 24, and seven years for projects located outside 
41.15 	the metropolitan area, as determined by the commissioner when considering the best interests 
41.16 	of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a), 
41.17 	clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located 
41.18 	outside the metropolitan area may be for up to seven years in length. The eligibility for the 
41.19 	following benefits begins the date the commissioner certifies the business as a qualified 
41.20 	Minnesota job creation fund business under this subdivision:
41.21 	(1) up to five percent rebate for projects located in the metropolitan area as defined in 
41.22 	section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan 
41.23 	area, on capital investment on qualifying purchases as provided in subdivision 5 with the 
41.24 	total rebate for a project not to exceed $500,000;
41.25 	(2) an award of up to $500,000 based on full-time job creation and wages paid as provided 
41.26 	in subdivision 6 with the total award not to exceed $500,000;
41.27 	(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards 
41.28 	are allowable for projects that have at least $25,000,000 in capital investment and 200 100
41.29 	new employees in the metropolitan area as defined in section 200.02, subdivision 24, and 
41.30 	75 50 new employees for projects located outside the metropolitan area;
41.31 	(4) up to $1,000,000 in capital investment rebates and up to $1,000,000 in job creation 
41.32 	awards are allowable for projects that have at least $25,000,000 in capital investment, which 
41.33 	may include the installation and purchase of machinery and equipment, and 200 100 retained 
42.1 	employees for projects located in the metropolitan area as defined in section 200.02, 
42.2 	subdivision 24, and 75or at least $10,000,000 in capital investment, which may include the 
42.3 	installation and purchase of machinery and equipment, and 50 retained employees for 
42.4 	projects located outside the metropolitan area; and
42.5 	(5) for clauses (3) and (4) only, the capital investment expenditure requirements may 
42.6 	include the installation and purchases of machinery and equipment. These expenditures are 
42.7 	not eligible for the capital investment rebate provided under subdivision 5.
42.8 	(c) The job creation award may be provided in multiple years as long as the qualified 
42.9 	Minnesota job creation fund business continues to meet the job creation goals provided for 
42.10 	in its agreement under subdivision 3 and the total award does not exceed $500,000 except 
42.11 	as provided under paragraph (b), clauses (3) and (4). Under paragraph (b) clause (4), a job 
42.12 	creation award of $2,000 per retained job may be provided one time if the qualified Minnesota 
42.13 	job creation fund business meets the minimum capital investment and retained employee 
42.14 	requirement as provided in paragraph (b), clause (4), for at least two years.
42.15 	(d) No rebates or award may be provided until the Minnesota job creation fund business 
42.16 	or a third party constructing or managing the project has at least $500,000 in capital 
42.17 	investment in the project and at least ten full-time jobs have been created and maintained 
42.18 	for at least one year or the retained employees, as provided in paragraph (b), clause (4), 
42.19 	remain for at least one year. The agreement may require additional performance outcomes 
42.20 	that need to be achieved before rebates and awards are provided. If fewer retained jobs are 
42.21 	maintained, but still above the minimum under this subdivision, the capital investment 
42.22 	award shall be reduced on a proportionate basis.
42.23 	(e) The forms needed to be submitted to document performance by the Minnesota job 
42.24 	creation fund business must be in the form and be made under the procedures specified by 
42.25 	the commissioner. The forms shall include documentation and certification by the business 
42.26 	that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66, 
42.27 	and other provisions as specified by the commissioner.
42.28 	(f) Minnesota job creation fund businesses must pay each new full-time employee added 
42.29 	pursuant to the agreement total compensation, including benefits not mandated by law, that 
42.30 	on an annualized basis is equal to at least 110 percent of the federal poverty level for a 
42.31 	family of four.
42.32 	(g) A Minnesota job creation fund business must demonstrate reasonable progress on 
42.33 	capital investment expenditures within six months following designation as a Minnesota 
42.34 	job creation fund business to ensure that the capital investment goal in the agreement under 
43.1 	subdivision 1 will be met. Businesses not making reasonable progress will not be eligible 
43.2 	for benefits under the submitted application and will need to work with the local government 
43.3 	unit to resubmit a new application and request to be a Minnesota job creation fund business. 
43.4 	Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not 
43.5 	be considered a default of the business subsidy agreement.

43.6 	Sec. 10. Minnesota Statutes 2022, section 116J.8748, subdivision 6, is amended to read:
43.7 		Subd. 6.Job creation award. (a) A qualified Minnesota job creation fund business is 
43.8 	eligible for an annual award for each new job created and maintained under subdivision 4, 
43.9 	paragraph (b), clauses (2) and (3), by the business using the following schedule: $1,000 for 
43.10 	each job position paying annual wages at least $26,000 but less than $35,000; $2,000 for 
43.11 	each job position paying at least $35,000 but less than $45,000; and $3,000 for each job 
43.12 	position paying at least $45,000 but less than $55,000; and $4,000 for each job position 
43.13 	paying at least $55,000; and as noted in the goals under the agreement provided under 
43.14 	subdivision 1. These awards are increased by $1,000 if the business is located outside the 
43.15 	metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business 
43.16 	is cumulatively owned by minorities, veterans, women, or persons with a disability.
43.17 	(b) A qualified Minnesota job creation fund business is eligible for a onetime $2,000 
43.18 	award for each job retained and maintained under subdivision 4, paragraph (b), clause (4), 
43.19 	provided that each retained job pays total compensation, including benefits not mandated 
43.20 	by law, that on an annualized basis is equal to at least 150 percent of the federal poverty 
43.21 	level for a family of four.
43.22 	(b) (c) The job creation award schedule must be adjusted annually using the percentage 
43.23 	increase in the federal poverty level for a family of four.
43.24 	(c) (d) Minnesota job creation fund businesses seeking an award credit provided under 
43.25 	subdivision 4 must submit forms and applications to the Department of Employment and 
43.26 	Economic Development as prescribed by the commissioner.

43.27 	Sec. 11. Minnesota Statutes 2022, section 116J.8748, is amended by adding a subdivision 
43.28 	to read:
43.29 		Subd. 6a.Transfer. The commissioner may transfer up to $2,000,000 of a fiscal year 
43.30 	appropriation between the Minnesota job creation fund program and the redevelopment 
43.31 	grant program to meet business demand.

44.1 	Sec. 12. Minnesota Statutes 2022, section 116J.8749, subdivision 1, is amended to read:
44.2 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
44.3 	the meanings given.
44.4 	(b) "Borrower" means an eligible recipient receiving a loan guaranteed under this section.
44.5 	(c) "Commissioner" means the commissioner of employment and economic development.
44.6 	(d) "Eligible project" means the development, redevelopment, demolition, site preparation, 
44.7 	predesign, design, engineering, repair, or renovation of real property or capital improvements. 
44.8 	Eligible projects must be designed to address the greatest economic development and 
44.9 	redevelopment needs that have arisen in the community surrounding that real property since 
44.10 	March 15, 2020. Eligible project includes but is not limited to the construction of buildings, 
44.11 	infrastructure, and related site amenities, landscaping, or street-scaping. Eligible project 
44.12 	does not include the purchase of real estate or business operations or business operating 
44.13 	expenses, such as inventory, wages, or working capital.
44.14 	(e) "Eligible recipient" means a:
44.15 	(1) business;
44.16 	(2) nonprofit organization; or
44.17 	(3) developer
44.18 	that is seeking funding to complete an eligible project. Eligible recipient does not include 
44.19 	a partner organization or a local unit of government.
44.20 	(f) "Guaranteed loan" means a loan guaranteed by the state for 80 percent of the loan 
44.21 	amount for a maximum period of 15 years from the origination of the loan.
44.22 	(g) "Leveraged grant" means a grant that is matched by the eligible recipient's 
44.23 	commitment to the eligible project of nonstate funds at a level of 200 percent of the grant 
44.24 	amount. The nonstate match may include but is not limited to funds contributed by a partner 
44.25 	organization and insurance proceeds. A leveraged grant is subject to the following limits:
44.26 	(1) if awarding grants under $150,000, state funds may make up no more than 50 percent 
44.27 	of an eligible project; and
44.28 	(2) if awarding grants of $150,000 or more, state funds may make up no more than 30 
44.29 	percent of an eligible project.
44.30 	(h) "Loan guarantee trust fund" means a dedicated account established under this section 
44.31 	for the purpose of compensation for defaulted loan guarantees.
45.1 	(i) "Partner organizations" or "partners" means:
45.2 	(1) foundations engaged in economic development;
45.3 	(2) community development financial institutions; and
45.4 	(3) community development corporations.
45.5 	(j) "Program" means the Main Street Economic Revitalization Program under this section.
45.6 	(k) "Subordinated loan" means a loan secured by a lien that is lower in priority than one 
45.7 	or more specified other liens.

45.8 	Sec. 13. Minnesota Statutes 2022, section 116J.8749, subdivision 3, is amended to read:
45.9 		Subd. 3.Grants to partner organizations. (a) The commissioner shall make grants to 
45.10 	partner organizations to provide leveraged grants and guaranteed loans to eligible recipients 
45.11 	using criteria, forms, applications, and reporting requirements developed by the 
45.12 	commissioner.
45.13 	(b) To be eligible for a grant, a partner organization must:
45.14 	(1) outline a plan to provide leveraged grants and guaranteed loans to eligible recipients 
45.15 	for specific eligible projects that who represent the greatest economic development and 
45.16 	redevelopment needs in the surrounding community. This plan must include an analysis of 
45.17 	the economic impact of the eligible projects the partner organization proposes to make these 
45.18 	investments in;
45.19 	(2) establish a process of ensuring there are no conflicts of interest in determining awards 
45.20 	under the program; and
45.21 	(3) demonstrate that the partner organization has raised funds for the specific purposes 
45.22 	of this program to commit to the proposed eligible projects or will do so within the 15-month
45.23 	18-month period following the encumbrance of funds. Existing assets and State or federal 
45.24 	funds may not be used to meet this requirement.
45.25 	(c) Grants shall be made in up to three five rounds:
45.26 	(1) a first round with an application date before September 1, 2021, during which no 
45.27 	more than 50 percent of available funds will be granted;
45.28 	(2) a second round with an application date after September 1, 2021, but before March 
45.29 	1, 2022; and
45.30 	(3) a third round with an application date after June 30, 2023, if any funds remain after 
45.31 	the first two rounds.;
46.1 	(4) a fourth round with an application date after June 30, 2024, if any funds remain after 
46.2 	the first three rounds; and
46.3 	(5) a fifth round with an application date after June 30, 2025, if any funds remain after 
46.4 	the first four rounds.
46.5 	A partner may apply in multiple rounds for projects that were not funded in earlier rounds 
46.6 	or for new projects.
46.7 	(d) Up to four five percent of a grant under this subdivision may be used by the partner 
46.8 	organization for administration and monitoring of the program.

46.9 	Sec. 14. Minnesota Statutes 2022, section 116J.8749, subdivision 5, is amended to read:
46.10 		Subd. 5.Leveraged grants to eligible recipients. (a) A leveraged grant to an eligible 
46.11 	recipient shall be for no more than $750,000.
46.12 	(b) A leveraged grant may be used to finance no more than 30 percent of an eligible 
46.13 	project.
46.14 	(b) A leveraged grant is subject to the following limits:
46.15 	(1) if awarding grants under $150,000, state funds may make up no more than 50 percent 
46.16 	of an eligible project; and
46.17 	(2) if awarding grants of $150,000 or more, state funds may make up no more than 30 
46.18 	percent of an eligible project.
46.19 	(c) An eligible project must have secured commitments for all required matching funds 
46.20 	and all required development approvals before a leveraged grant may be distributed.

46.21 	Sec. 15. Minnesota Statutes 2022, section 116J.8749, subdivision 10, is amended to read:
46.22 		Subd. 10.Exemptions. All grants and grant-making processes under this section are 
46.23 	exempt from Minnesota Statutes, sections 16A.15, subdivision 3; 16B.97; and 16B.98, 
46.24 	subdivisions 5, 7, and 8. The commissioner must audit the use of funds under this section 
46.25 	in accordance with standard accounting practices. The exemptions under this subdivision 
46.26 	expire on December 31, 2023 2027.

46.27 	Sec. 16. [116J.8751] LAUNCH MINNESOTA.
46.28 		Subdivision 1.Establishment. Launch Minnesota is established within the Business 
46.29 	and Community Development Division of the Department of Employment and Economic 
46.30 	Development to encourage and support the development of new private sector technologies 
47.1 	and support the science and technology policies under Minnesota Statutes, section 3.222. 
47.2 	Launch Minnesota must provide entrepreneurs and emerging technology-based companies 
47.3 	business development assistance and financial assistance to spur growth.
47.4 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
47.5 	have the meanings given.
47.6 	(b) "Advisory board" means the board established under subdivision 10.
47.7 	(c) "Commissioner" means the commissioner of employment and economic development.
47.8 	(d) "Department" means the Department of Employment and Economic Development.
47.9 	(e) "Entrepreneur" means a Minnesota resident who is involved in establishing a business 
47.10 	entity and secures resources directed to its growth while bearing the risk of loss.
47.11 	(f) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan 
47.12 	area as defined in Minnesota Statutes, section 473.121, subdivision 2.
47.13 	(g) "Innovative technology and business" means a new novel business model or product; 
47.14 	a derivative product incorporating new elements into an existing product; a new use for a 
47.15 	product; or a new process or method for the manufacture, use, or assessment of any product 
47.16 	or activity, patentability, or scalability. Innovative technology or business model does not 
47.17 	include locally based retail, lifestyle, or business services. The business must not be primarily 
47.18 	engaged in real estate development, insurance, banking, lending, lobbying, political 
47.19 	consulting, information technology consulting, wholesale or retail trade, leisure, hospitality, 
47.20 	transportation, construction, ethanol production from corn, or professional services provided 
47.21 	by attorneys, accountants, business consultants, physicians, or health care consultants.
47.22 	(h) "Institution of higher education" has the meaning given in Minnesota Statutes, section 
47.23 	136A.28, subdivision 6.
47.24 	(i) "Minority group member" means a United States citizen or lawful permanent resident 
47.25 	who is Asian, Pacific Islander, Black, Hispanic, or Native American.
47.26 	(j) "Research and development" means any activity that is:
47.27 	(1) a systematic, intensive study directed toward greater knowledge or understanding 
47.28 	of the subject studies;
47.29 	(2) a systematic study directed specifically toward applying new knowledge to meet a 
47.30 	recognized need; or
48.1 	(3) a systematic application of knowledge toward the production of useful materials, 
48.2 	devices, systems and methods, including design, development and improvement of prototypes 
48.3 	and new processes to meet specific requirements.
48.4 	(k) "Start-up" means a business entity that has been in operation for less than ten years, 
48.5 	has operations in Minnesota, and is in the development stage defined as devoting substantially 
48.6 	all of its efforts to establishing a new business and either of the following conditions exists:
48.7 	(1) planned principal operations have not commenced; or
48.8 	(2) planned principal operations have commenced, but have raised at least $1,000,000 
48.9 	in equity financing.
48.10 	(l) "Technology-related assistance" means the application and utilization of 
48.11 	technological-information and technologies to assist in the development and production of 
48.12 	new technology-related products or services or to increase the productivity or otherwise 
48.13 	enhance the production or delivery of existing products or services.
48.14 	(m) "Trade association" means a nonprofit membership organization organized to promote 
48.15 	businesses and business conditions and having an election under Internal Revenue Code 
48.16 	section 501(c)(3) or 501(c)(6).
48.17 	(n) "Veteran" has the meaning given in Minnesota Statutes, section 197.447.
48.18 		Subd. 3.Duties. The commissioner, by and through Launch Minnesota, shall:
48.19 	(1) support innovation and initiatives designed to accelerate the growth of innovative 
48.20 	technology and business start-ups in Minnesota;
48.21 	(2) in partnership with other organizations, offer classes and instructional sessions on 
48.22 	how to start an innovative technology and business start-up;
48.23 	(3) promote activities for entrepreneurs and investors regarding the state's growing 
48.24 	innovation economy;
48.25 	(4) hold events and meetings that gather key stakeholders in the state's innovation sector;
48.26 	(5) conduct outreach and education on innovation activities and related financial programs 
48.27 	available from the department and other organizations, particularly for underserved 
48.28 	communities;
48.29 	(6) interact and collaborate with statewide partners including but not limited to businesses, 
48.30 	nonprofits, trade associations, and higher education institutions;
49.1 	(7) administer an advisory board to assist with direction, grant application review, 
49.2 	program evaluation, report development, and partnerships;
49.3 	(8) accept grant applications under subdivisions 5, 6, and 7 and work with the advisory 
49.4 	board to review and prioritize the applications and provide recommendations to the 
49.5 	commissioner; and
49.6 	(9) perform other duties at the commissioner's discretion.
49.7 		Subd. 4.Administration. (a) The executive director shall:
49.8 	(1) assist the commissioner and the advisory board in performing the duties of Launch 
49.9 	Minnesota; and
49.10 	(2) comply with all state and federal program requirements, and all state and federal 
49.11 	securities and tax laws and regulations.
49.12 	(b) Launch Minnesota may occupy and lease physical space in a private coworking 
49.13 	facility that includes office space for staff and space for community engagement for training 
49.14 	entrepreneurs. The physical space leased under this paragraph is exempt from the 
49.15 	requirements in Minnesota Statutes, section 16B.24, subdivision 6.
49.16 	(c) At least three times per month, Launch Minnesota staff shall communicate with 
49.17 	organizations in greater Minnesota that have received a grant under subdivision 7. To the 
49.18 	extent possible, Launch Minnesota shall form partnerships with organizations located 
49.19 	throughout the state.
49.20 	(d) Launch Minnesota must accept grant applications under this section and provide 
49.21 	funding recommendations to the commissioner and the commissioner shall distribute grants 
49.22 	based in part on the recommendations.
49.23 		Subd. 5.Application process. (a) The commissioner shall establish the application form 
49.24 	and procedures for grants.
49.25 	(b) Upon receiving recommendations from Launch Minnesota, the commissioner is 
49.26 	responsible for evaluating all applications using evaluation criteria which shall be developed 
49.27 	by Launch Minnesota in consultation with the advisory board.
49.28 	(c) For grants under subdivision 6, priority shall be given if the applicant is:
49.29 	(1) a business or entrepreneur located in greater Minnesota; or
49.30 	(2) a business owner, individual with a disability, or entrepreneur who is a woman, 
49.31 	veteran, or minority group member.
50.1 	(d) For grants under subdivision 7, priority shall be given if the applicant is planning to 
50.2 	serve:
50.3 	(1) businesses or entrepreneurs located in greater Minnesota; or
50.4 	(2) business owners, individuals with disabilities, or entrepreneurs who are women, 
50.5 	veterans, or minority group members.
50.6 	(e) The department staff, and not Launch Minnesota staff, are responsible for awarding 
50.7 	funding, disbursing funds, and monitoring grantee performance for all grants awarded under 
50.8 	this section.
50.9 	(f) Grantees must provide matching funds by equal expenditures and grant payments 
50.10 	must be provided on a reimbursement basis after review of submitted receipts by the 
50.11 	department.
50.12 	(g) Grant applications must be accepted on a regular periodic basis by Launch Minnesota 
50.13 	and must be reviewed by Launch Minnesota and the advisory board before being submitted 
50.14 	to the commissioner with their recommendations.
50.15 		Subd. 6.Innovation grants. (a) The commissioner shall distribute innovation grants 
50.16 	under this subdivision.
50.17 	(b) The commissioner shall provide a grant of up to $35,000 to an eligible business or 
50.18 	entrepreneur for research and development expenses, direct business expenses, and the 
50.19 	purchase of technical assistance or services from public higher education institutions and 
50.20 	nonprofit entities. Research and development expenditures may include but are not limited 
50.21 	to proof of concept activities, intellectual property protection, prototype designs and 
50.22 	production, and commercial feasibility. Expenditures funded under this subdivision are not 
50.23 	eligible for the research and development tax credit under Minnesota Statutes, section 
50.24 	290.068. Direct business expenses may include rent, equipment purchases, and supplier 
50.25 	invoices. Taxes imposed by federal, state, or local government entities may not be reimbursed 
50.26 	under this paragraph. Technical assistance or services must be purchased to assist in the 
50.27 	development or commercialization of a product or service to be eligible. Each business or 
50.28 	entrepreneur may receive only one grant per biennium under this paragraph.
50.29 	(c) The commissioner shall provide a grant of up to $35,000 in Phase 1 or $50,000 in 
50.30 	Phase 2 to an eligible business or entrepreneur that, as a registered client of the Small 
50.31 	Business Innovation Research (SBIR) program, has been awarded a first time Phase 1 or 
50.32 	Phase 2 award pursuant to the SBIR or Small Business Technology Transfer (STTR) 
50.33 	programs after July 1, 2019. Each business or entrepreneur may receive only one grant per 
51.1 	biennium under this paragraph. Grants under this paragraph are not subject to the 
51.2 	requirements of subdivision 2, paragraph (k).
51.3 		Subd. 7.Entrepreneur education grants. (a) The commissioner shall make entrepreneur 
51.4 	education grants to institutions of higher education and other organizations to provide 
51.5 	educational programming to entrepreneurs and provide outreach to and collaboration with 
51.6 	businesses, federal and state agencies, institutions of higher education, trade associations, 
51.7 	and other organizations working to advance innovative technology businesses throughout 
51.8 	Minnesota.
51.9 	(b) Applications for entrepreneur education grants under this subdivision must be 
51.10 	submitted to the commissioner and evaluated by department staff other than Launch 
51.11 	Minnesota. The evaluation criteria must be developed by Launch Minnesota, in consultation 
51.12 	with the advisory board, and the commissioner, and priority must be given to an applicant 
51.13 	who demonstrates activity assisting business owners or entrepreneurs residing in greater 
51.14 	Minnesota or who are women, veterans, or minority group members.
51.15 	(c) Department staff other than Launch Minnesota staff are responsible for awarding 
51.16 	funding, disbursing funds, and monitoring grantee performance under this subdivision.
51.17 	(d) Grantees may use the grant funds to deliver the following services:
51.18 	(1) development and delivery to innovative technology businesses of industry specific 
51.19 	or innovative product or process specific counseling on issues of business formation, market 
51.20 	structure, market research and strategies, securing first mover advantage or overcoming 
51.21 	barriers to entry, protecting intellectual property, and securing debt or equity capital. This 
51.22 	counseling is to be delivered in a classroom setting or using distance media presentations;
51.23 	(2) outreach and education to businesses and organizations on the small business 
51.24 	investment tax credit program under Minnesota Statutes, section 116J.8737, the MNvest 
51.25 	crowd-funding program under Minnesota Statutes, section 80A.461, and other state programs 
51.26 	that support innovative technology business creation especially in underserved communities;
51.27 	(3) collaboration with institutions of higher education, local organizations, federal and 
51.28 	state agencies, the Small Business Development Center, and the Small Business Assistance 
51.29 	Office to create and offer educational programming and ongoing counseling in greater 
51.30 	Minnesota that is consistent with those services offered in the metropolitan area; and
51.31 	(4) events and meetings with other innovation-related organizations to inform 
51.32 	entrepreneurs and potential investors about Minnesota's growing innovation economy.
52.1 		Subd. 8.Higher education technology commercialization program. (a) The 
52.2 	commissioner shall distribute higher education technology commercialization program 
52.3 	grants to no more than five systems or institutions of higher education to provide technical 
52.4 	assistance and subject matter expertise to entrepreneurs working to scale new innovations.
52.5 	(b) Grantees shall collaborate with the Launch Minnesota network, private sector, and 
52.6 	other organizations working to advance innovative technology businesses when delivering 
52.7 	this assistance.
52.8 	(c) Priority must be given to applicants with experience assisting business owners or 
52.9 	entrepreneurs residing in greater Minnesota or who are women, veterans, or minority group 
52.10 	members.
52.11 	(d) Department staff other than Launch Minnesota staff are responsible for awarding 
52.12 	funding, disbursing funds, and monitoring grantee performance under this subdivision.
52.13 	(e) Grantees may use the grant funds to deliver the following services:
52.14 	(1) services to advance product development and to more clearly define a commercial 
52.15 	path for products and services, including education, prototyping, technical assistance, 
52.16 	marketing research, and subject matter expertise; and
52.17 	(2) funding to offset staff costs in organizing and administering the technology 
52.18 	commercialization program.
52.19 		Subd. 9.Report. (a) Launch Minnesota shall annually report by December 31 to the 
52.20 	chairs and ranking minority members of the committees of the house of representatives and 
52.21 	senate having jurisdiction over economic development policy and finance. Each report shall 
52.22 	include information on the work completed, including awards made by the department under 
52.23 	this section and progress toward transferring the activities of Launch Minnesota to an entity 
52.24 	outside of state government.
52.25 	(b) By December 31, 2024, Launch Minnesota shall provide a comprehensive transition 
52.26 	plan to the chairs and ranking minority members of the committees of the house of 
52.27 	representatives and senate having jurisdiction over economic development policy and 
52.28 	finance. The transition plan shall include: (1) a detailed strategy for the transfer of Launch 
52.29 	Minnesota activities to an entity outside of state government; (2) the projected date of the 
52.30 	transfer; and (3) the role of the state, if any, in ongoing activities of Launch Minnesota or 
52.31 	its successor entity.
52.32 		Subd. 10.Advisory board. (a) The commissioner shall establish an advisory board to 
52.33 	advise the executive director regarding the activities of Launch Minnesota, make the 
53.1 	recommendations described in this section, and develop and initiate a strategic plan for 
53.2 	transferring some activities of Launch Minnesota to a new or existing public-private 
53.3 	partnership or nonprofit organization outside of state government.
53.4 	(b) The advisory board shall consist of ten members and is governed by Minnesota 
53.5 	Statutes, section 15.059. A minimum of seven members must be from the private sector 
53.6 	representing business and at least two members but no more than three members must be 
53.7 	from government and higher education. At least three of the members of the advisory board 
53.8 	shall be from greater Minnesota and at least three members shall be minority group members. 
53.9 	Appointees shall represent a range of interests, including entrepreneurs, large businesses, 
53.10 	industry organizations, investors, and both public and private small business service 
53.11 	providers.
53.12 	(c) The advisory board shall select a chair from its private sector members. The executive 
53.13 	director shall provide administrative support to the committee.
53.14 	(d) The commissioner, or a designee, shall serve as an ex-officio, nonvoting member of 
53.15 	the advisory board.

53.16 	Sec. 17. [116J.8752] MINNESOTA FORWARD FUND.
53.17 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in this subdivision 
53.18 	have the meanings given.
53.19 	(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement 
53.20 	under section 116J.994 that must include but is not limited to specification of the duration 
53.21 	of the agreement, job goals and a timeline for achieving those goals over the duration of 
53.22 	the agreement, construction and other investment goals and a timeline for achieving those 
53.23 	goals over the duration of the agreement, and the value of benefits the firm may receive 
53.24 	following achievement of capital investment and employment goals. The municipality, local 
53.25 	unit of government, or business must report to the commissioner on the business performance 
53.26 	using the forms developed by the commissioner.
53.27 	(c) "Business" means an individual, corporation, partnership, limited liability company, 
53.28 	association, or other entity.
53.29 	(d) "Capital investment" means money that is expended for the purpose of building or 
53.30 	improving real fixed property where employees are or will be employed, equipment and 
53.31 	machinery in the building, and operating expenses related to the building.
53.32 	(e) "Commissioner" means the commissioner of employment and economic development.
54.1 	(f) "Fund" means the Minnesota forward fund.
54.2 		Subd. 2.Minnesota forward fund account. The Minnesota forward fund account is 
54.3 	created as a separate account in the treasury. Money in the account is appropriated to the 
54.4 	commissioner of employment and economic development for the purposes of this section. 
54.5 	All money earned by the account, loan repayments of principal, and interest must be credited 
54.6 	to the account. The commissioner shall operate the account as a revolving account.
54.7 		Subd. 3.Purpose. The Minnesota forward fund is created to increase the state's 
54.8 	competitiveness by providing the state the authority and flexibility to facilitate private 
54.9 	investment. The fund serves as a closing fund to allow the authority and flexibility to 
54.10 	negotiate incentives to better compete with other states for business retention, expansion 
54.11 	and attraction of projects in existing and new industries, develop properties for business 
54.12 	use, and leverage to meet matching requirements of federal funding for resiliency in economic 
54.13 	security and economic enhancement opportunities that provide the public high-quality 
54.14 	employment opportunities. The commissioner shall use money appropriated to the fund to:
54.15 	(1) create and retain permanent private-sector jobs in order to create above-average 
54.16 	economic growth consistent with environmental protection;
54.17 	(2) stimulate or leverage private investment to ensure economic renewal and 
54.18 	competitiveness;
54.19 	(3) increase the local tax base, based on demonstrated measurable outcomes, to guarantee 
54.20 	a diversified industry mix;
54.21 	(4) improve the quality of existing jobs, based on increases in wages or improvements 
54.22 	in the job duties, training, or education associated with those jobs;
54.23 	(5) improve employment and economic opportunity for citizens in the region to create 
54.24 	a reasonable standard of living, consistent with federal and state guidelines on low- to 
54.25 	moderate-income persons;
54.26 	(6) stimulate productivity growth through improved manufacturing or new technologies; 
54.27 	and
54.28 	(7) match or leverage private or public funding to increase investment and opportunity 
54.29 	in the state.
54.30 		Subd. 4.Use of fund. The commissioner may use money in the fund to make grants, 
54.31 	loans and forgivable loans, to businesses that are making large private capital investments 
54.32 	in existing and new industries. The commissioner may also use money in the fund to make 
54.33 	grants to communities and higher education institutions to support such capital investments 
55.1 	and related activities to support the industries. Money may be used to address capital needs 
55.2 	of businesses for machinery and equipment purchases; building construction and remodeling; 
55.3 	land development; water and sewer lines, roads, rail lines, and natural gas and electric 
55.4 	infrastructure; working capital; and workforce training. Money may also be used for matching 
55.5 	federal grants for research and development projects and industry workforce training grants 
55.6 	for existing and new industries that require state and local match. Money in the fund may 
55.7 	also be used to pay for the costs of carrying out the commissioner's due diligence duties 
55.8 	under this section.
55.9 		Subd. 5.Grant limits. (a) Individual business expansion projects are limited to no more 
55.10 	than $20,000,000 in grants or loans combined. The commissioner shall not be precluded 
55.11 	from using other funding sources from the Department of Employment and Economic 
55.12 	Development to facilitate a project. Total funding per business under this section shall not 
55.13 	exceed $20,000,000, of which no more than $10,000,000 may be grants and $10,000,000 
55.14 	may be loans.
55.15 	(b) The commissioner may use money in the fund to make grants to a municipality or 
55.16 	local unit of government for public and private infrastructure needed to support an eligible 
55.17 	project under this section. Grant money may be used by the municipality or local unit of 
55.18 	government to predesign, design, construct, and equip roads and rail lines; acquire and 
55.19 	prepare land for development; and, in cooperation with municipal utilities, to predesign, 
55.20 	design, construct, and equip natural gas pipelines, electric infrastructure, water supply 
55.21 	systems, and wastewater collection and treatment systems. The maximum grant award per 
55.22 	local unit of government under this section is $10,000,000.
55.23 	(c) The commissioner may use money in the fund to make grants to institutions of higher 
55.24 	education for developing and deploying training programs and to increase the capacity of 
55.25 	the institution to serve industrial requirements for research and development that coincide 
55.26 	with current and future requirements of projects eligible under this section. Grant money 
55.27 	may be used to construct and equip facilities that serve the purpose of the industry. The 
55.28 	maximum grant award per institution of higher education under this section is $5,000,000 
55.29 	and may not represent more than 33 percent of the total project funding from other sources.
55.30 	(d) Grants under this subdivision are available until expended.
55.31 		Subd. 6.Administration. (a) Eligible applicants for the state-funded portion of the fund 
55.32 	also include development authorities as defined in section 116J.552, subdivision 4, provided 
55.33 	that the governing body of the municipality approves, by resolution, the application of the 
55.34 	development authority. Institutions of higher education also constitute eligible applicants 
56.1 	for the purpose of developing and deploying workforce training programs and for developing 
56.2 	and deploying research and development partnerships for projects eligible under this section.
56.3 	(b) The business, municipality, or local unit of government must request and submit an 
56.4 	application to the commissioner. Applications must be in the form and procedure specified 
56.5 	by the commissioner.
56.6 	(c) The commissioner must conduct due diligence, including contracting with 
56.7 	professionals as needed to assist in the due diligence.
56.8 	(d) Notwithstanding any other law to the contrary, grant and loan agreements through 
56.9 	the Minnesota forward fund may exceed five years but not more than ten years.
56.10 		Subd. 7.Requirements prior to committing funds. Prior to the commissioner making 
56.11 	a commitment for grant or loan under this section, the Legislative Advisory Commission 
56.12 	and governor must jointly provide written authorization. The commissioner shall provide 
56.13 	a written report to the Legislative Advisory Commission and governor, including but not 
56.14 	limited to the purpose of the award, the project overview, financial details, and the 
56.15 	performance requirements required 14 days prior to any meeting or decision.
56.16 		Subd. 8.Eligible projects. (a) The governor and the Legislative Advisory Commission 
56.17 	must evaluate applications under this section on the existence of one or more of the following 
56.18 	conditions:
56.19 	(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 
56.20 	existing jobs as measured by the wages, skills, or education associated with those jobs;
56.21 	(2) whether the project can demonstrate that investment of public dollars induces private 
56.22 	and other public funds as follows;
56.23 	(i) businesses in the seven-county metropolitan area must invest more than $40,000,000 
56.24 	in capital expenditures and create at least 70 jobs or retain at least 150 jobs;
56.25 	(ii) businesses outside of the seven-county metropolitan area must invest more than 
56.26 	$25,000,000 in capital expenditures and create at least 40 new jobs or retain at least 75 jobs; 
56.27 	and
56.28 	(iii) cash wages of each new employee must exceed 120 percent of federal poverty 
56.29 	guidelines for a family of four, adjusted annually;
56.30 	(3) whether the project can demonstrate an excessive public infrastructure or improvement 
56.31 	cost beyond the means of the affected community and private participants in the project;
57.1 	(4) whether assistance is necessary to retain existing business or whether assistance is 
57.2 	necessary to attract out-of-state business;
57.3 	(5) the project promotes or advances an industry in which the federal government is 
57.4 	making large investments to strengthen domestic production and supply chains that are 
57.5 	resilient for economic security and economic enhancement opportunities;
57.6 	(6) the project promotes or advances the green economy as defined in section 116J.437;
57.7 	(7) the project requires state resources beyond the capability of existing programs at the 
57.8 	department and by its significance, requires the governor and legislature's involvement; and
57.9 	(8) written support from the municipality or local unit of government in which the project 
57.10 	will be located.
57.11 	(b) The governor and the Legislative Advisory Commission shall submit applications 
57.12 	recommended for funding to the commissioner.
57.13 		Subd. 9.Requirements for fund disbursements. Disbursements of loan funds pursuant 
57.14 	to a commitment may not be made until:
57.15 	(1) commitments for the remainder of a project's funding are made that are satisfactory 
57.16 	to the commissioner and disbursements made from the other commitments are sufficient to 
57.17 	protect the interests of the state in its grant or loan;
57.18 	(2) performance requirements are met, if any;
57.19 	(3) the municipality or local unit of government in which the project will be located has 
57.20 	passed a resolution of support for the project and submitted this resolution of support to the 
57.21 	department; and
57.22 	(4) all of a project's funding is satisfactory to the commissioner and disbursements made 
57.23 	from other commitments are sufficient to protect the interests of the state.
57.24 		Subd. 10.Reporting.  The commissioner shall provide the Legislative Advisory 
57.25 	Commission and the ranking members of the committees with jurisdiction over economic 
57.26 	development with an annual report on all projects that have been approved by February 15 
57.27 	of each year until this section is repealed or the funding has been exhausted.

57.28 	Sec. 18. Minnesota Statutes 2022, section 116L.361, subdivision 7, is amended to read:
57.29 		Subd. 7.Very Low income. "Very Low income" means incomes that are at or less than 
57.30 	50 80 percent of the area median income, adjusted for family size, as estimated by the 
57.31 	Department of Housing and Urban Development.

58.1 	Sec. 19. Minnesota Statutes 2022, section 116L.362, subdivision 1, is amended to read:
58.2 		Subdivision 1.Generally. (a) The commissioner shall make grants to eligible 
58.3 	organizations for programs to provide education and training services to targeted youth. 
58.4 	The purpose of these programs is to provide specialized training and work experience for 
58.5 	targeted youth who have not been served effectively by the current educational system. The 
58.6 	programs are to include a work experience component with work projects that result in the 
58.7 	rehabilitation, improvement, or construction of (1) residential units for the homeless; (2) 
58.8 	improvements to the energy efficiency and environmental health of residential units and 
58.9 	other green jobs purposes; (3) facilities to support community garden projects; or (4) 
58.10 	education, social service, or health facilities which are owned by a public agency or a private 
58.11 	nonprofit organization.
58.12 	(b) Eligible facilities must principally provide services to homeless or very low income 
58.13 	individuals and families, and include the following:
58.14 	(1) Head Start or day care centers, including playhouses or similar incidental structures;
58.15 	(2) homeless, battered women, or other shelters;
58.16 	(3) transitional housing and tiny houses;
58.17 	(4) youth or senior citizen centers;
58.18 	(5) community health centers; and
58.19 	(6) community garden facilities.
58.20 	Two or more eligible organizations may jointly apply for a grant. The commissioner 
58.21 	shall administer the grant program.

58.22 	Sec. 20. Minnesota Statutes 2022, section 116L.364, subdivision 3, is amended to read:
58.23 		Subd. 3.Work experience component. A work experience component must be included 
58.24 	in each program. The work experience component must provide vocational skills training 
58.25 	in an industry where there is a viable expectation of job opportunities. A training subsidy, 
58.26 	living allowance, or stipend, not to exceed an amount equal to 100 percent of the poverty 
58.27 	line for a family of two as defined in United States Code, title 42, section 673, paragraph 
58.28 	(2) the final rules and regulations of the Workforce Innovation and Opportunity Act, may 
58.29 	be provided to program participants. The wage or stipend must be provided to participants 
58.30 	who are recipients of public assistance in a manner or amount which will not reduce public 
58.31 	assistance benefits. The work experience component must be designed so that work projects 
58.32 	result in (1) the expansion or improvement of residential units for homeless persons and 
59.1 	very low income families; (2) improvements to the energy efficiency and environmental 
59.2 	health of residential units; (3) facilities to support community garden projects; or (4) 
59.3 	rehabilitation, improvement, or construction of eligible education, social service, or health 
59.4 	facilities that principally serve homeless or very low income individuals and families. Any 
59.5 	work project must include direct supervision by individuals skilled in each specific vocation. 
59.6 	Program participants may earn credits toward the completion of their secondary education 
59.7 	from their participation in the work experience component.

59.8 	Sec. 21. [116L.43] TARGETED POPULATIONS WORKFORCE GRANTS.
59.9 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
59.10 	the meanings given.
59.11 	(b) "Entry level jobs" means part-time or full-time jobs that an individual can perform 
59.12 	without any prior education or experience.
59.13 	(c) "High wage" means the income needed for a family to cover minimum necessary 
59.14 	expenses in a given area, including food, child care, health care, housing, and transportation.
59.15 	(d) "Industry specific certification" means a credential an individual can earn to show 
59.16 	proficiency in a particular area or skill.
59.17 	(e) "Remedial training" means additional training provided to staff following the 
59.18 	identification of a need intended to increase proficiency in performing job tasks.
59.19 	(f) "Small business" has the same meaning as section 645.445.
59.20 	(g) "Workforce development community-based organization" means a nonprofit 
59.21 	organization with under $1,000,000 in annual revenue that performs workforce development 
59.22 	activities.
59.23 		Subd. 2.Job and entrepreneurial skills training grants. (a) The commissioner shall 
59.24 	establish a job and entrepreneurial skills training grant program that must provide competitive 
59.25 	funding to organizations to provide skills training that leads to employment or business 
59.26 	development in high-growth industries.
59.27 	(b) Grants must be used to provide skills training including:
59.28 	(1) student tutoring and testing support services;
59.29 	(2) training and employment placement in high-wage and high-growth employment;
59.30 	(3) assistance in obtaining industry specific certifications;
59.31 	(4) remedial training leading to enrollment;
60.1 	(5) real-time work experience or on-the-job training;
60.2 	(6) career and educational counseling;
60.3 	(7) work experience and internships;
60.4 	(8) supportive services;
60.5 	(9) tuition reimbursement for new entrants into public sector careers;
60.6 	(10) career mentorship;
60.7 	(11) postprogram case management services;
60.8 	(12) job placement services; and
60.9 	(13) the cost of corporate board of director training for people of color.
60.10 	(c) The commissioner must award grants to community based organizations meeting 
60.11 	the following criteria:
60.12 	(1) the organization's primary operations are located in communities of color;
60.13 	(2) 80 percent of the organization's participants reflect the demographics of the 
60.14 	community; and
60.15 	(3) the organization's community has a high unemployment rate or poverty rate.
60.16 	(d) Grant awards must not exceed $750,0000 per year per organization and all funding 
60.17 	awards must be made for the duration of a biennium. An organization may partner with 
60.18 	another organization to utilize grant awards, provided that the organizations must not be 
60.19 	funded to deliver the same services. Grants awarded under this subdivision are not subject 
60.20 	to section 116L.98.
60.21 		Subd. 3.Diversity and inclusion training for small employers. (a) The commissioner 
60.22 	shall establish a diversity and inclusion training grant program which shall provide 
60.23 	competitive grants to businesses that commit to actively engage, hire, and retain people of 
60.24 	color for both entry level and high-wage opportunities.
60.25 	(b) Grant awards must not exceed $300,000 per year per business. A business may only 
60.26 	receive one grant for diversity and inclusion training per biennium.
60.27 	(c) Grant funds must be used to train small businesses in outreach, recruitment, and 
60.28 	retention of entry-level, mid-level, and senior-level management and a board of directors. 
60.29 	Grant recipients are required to submit a plan for use of the funds and an implementation 
60.30 	plan after training is completed.
61.1 	(d) Grants awarded under this subdivision are not subject to section 116L.98.
61.2 		Subd. 4.Capacity building. (a) The commissioner shall establish a capacity building 
61.3 	grant program to provide training services and funding to small workforce development 
61.4 	community-based organizations.
61.5 	(b) Eligible organizations include nonprofit organizations which have:
61.6 	(1) primary offices located in low-income communities;
61.7 	(2) an annual client service base of over 80 percent of people of color; and
61.8 	(3) an annual budget of less than $1,000,000.
61.9 	(c) Eligible uses of grant awards include covering the cost of workforce program delivery 
61.10 	staff, program infrastructure costs, and workforce training related service model development.
61.11 	(d) Grant awards must not exceed $50,000 per organization and are limited to one grant 
61.12 	per organization.
61.13 	(e) Grants awarded under this subdivision are not subject to section 116L.98.
61.14 	(f) By January 15, 2025, and each January 15 thereafter, the commissioner must submit 
61.15 	a report to the chairs and ranking minority members of the committees of the house of 
61.16 	representatives and the senate having jurisdiction over workforce development that details 
61.17 	the use of grant awards. If data is available, the report must contain data that is disaggregated 
61.18 	by race, cultural groups, family income, age, geographical location, migrant or foreign 
61.19 	immigrant status, primary language, whether the participant is an English learner under 
61.20 	section 124D.59, disability, and status of homelessness.

61.21 	Sec. 22. Minnesota Statutes 2022, section 116L.56, subdivision 2, is amended to read:
61.22 		Subd. 2.Eligible applicant. "Eligible applicant" means an individual who is between 
61.23 	the ages of 14 and 21 24 and economically disadvantaged.
61.24 	An at-risk youth who is classified as a family of one is deemed economically 
61.25 	disadvantaged. For purposes of eligibility determination the following individuals are 
61.26 	considered at risk:
61.27 	(1) a pregnant or parenting youth;
61.28 	(2) a youth with limited English proficiency;
61.29 	(3) a potential or actual school dropout;
61.30 	(4) a youth in an offender or diversion program;
62.1 	(5) a public assistance recipient or a recipient of group home services;
62.2 	(6) a youth with disabilities including learning disabilities;
62.3 	(7) a child of drug or alcohol abusers or a youth with substance use disorder;
62.4 	(8) a homeless or runaway youth;
62.5 	(9) a youth with basic skills deficiency;
62.6 	(10) a youth with an educational attainment of one or more levels below grade level 
62.7 	appropriate to age; or
62.8 	(11) a foster child.

62.9 	Sec. 23. Minnesota Statutes 2022, section 116L.561, subdivision 5, is amended to read:
62.10 		Subd. 5.Allocation formula. Seventy percent of Minnesota youth program funds must 
62.11 	be allocated based on the county's share of economically disadvantaged youth. The remaining 
62.12 	30 percent must be allocated based on the county's share of population ages 14 to 21 24.

62.13 	Sec. 24. Minnesota Statutes 2022, section 116L.562, subdivision 2, is amended to read:
62.14 		Subd. 2.Definitions. For purposes of this section:
62.15 	(1) "eligible organization" or "eligible applicant" means a local government unit, nonprofit 
62.16 	organization, community action agency, or a public school district;
62.17 	(2) "at-risk youth" means youth classified as at-risk under section 116L.56, subdivision 
62.18 	2; and
62.19 	(3) "economically disadvantaged" means youth who are economically disadvantaged as 
62.20 	defined in United States Code, title 29, section 1503 the rules and regulations of the 
62.21 	Workforce Innovation and Opportunity Act.

62.22 	Sec. 25. MINNESOTA EMPLOYER REASONABLE ACCOMMODATION FUND.
 62.23 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
62.24 	subdivision have the meanings given.
62.25 	(b) "Applicant" means any person, whether employed or unemployed, seeking or entering 
62.26 	into any arrangement for employment or change of employment with an eligible employer.
62.27 	(c) "Commissioner" means the commissioner of employment and economic development.
63.1 	(d) "Eligible employer" means an employer domiciled within the legal boundaries of 
63.2 	Minnesota and having its principal place of business as identified in its certificate of 
63.3 	incorporation in the state of Minnesota who:
63.4 	(1) employs not more than 500 employees on any business day during the preceding 
63.5 	calendar year; and
63.6 	(2) generates $5,000,000 or less in gross annual revenue.
63.7 	(e) "Employee" has the meaning given in Minnesota Statutes, section 363A.03, 
63.8 	subdivision 15.
63.9 	(f) "Individual with a disability" has the meaning given to "qualified disabled person" 
63.10 	in Minnesota Statutes, section 363A.03, subdivision 36.
63.11 	(g) "Reasonable accommodation" has the meaning given in Minnesota Statutes, section 
63.12 	363A.08, subdivision 6.
63.13 		Subd. 2.Reimbursement grant program established. The commissioner shall establish 
63.14 	a reasonable accommodation reimbursement grant program that reimburses eligible 
63.15 	employers for the cost of expenses incurred in providing reasonable accommodations for 
63.16 	individuals with a disability who are either applicants or employees of the eligible employer.
63.17 		Subd. 3.Application. (a) The commissioner must develop forms and procedures for 
63.18 	soliciting and reviewing applications for reimbursement under this section.
63.19 	(b) The program shall award reimbursements to eligible employers to the extent that 
63.20 	funds are available in the account established under subdivision 5 for this purpose.
63.21 	(c) Applications shall be processed on a first-received, first-processed basis within each 
63.22 	fiscal year until funding is exhausted. Applications received after funding has been exhausted 
63.23 	in a fiscal year are not eligible for reimbursement.
63.24 	(d) Documentation for reimbursement shall be provided by eligible employers in a form 
63.25 	approved by the commissioner.
63.26 		Subd. 4.Reimbursement awards. The maximum total reimbursement per eligible 
63.27 	employer in a fiscal year is $30,000 and:
63.28 	(1) submissions for onetime reasonable accommodation expenses must be no less than 
63.29 	$250 and no more than $15,000 per individual with a disability; and
63.30 	(2) submissions for ongoing reasonable accommodation expenses have no minimum or 
63.31 	maximum requirements.
64.1 		Subd. 5.Employer reasonable accommodation fund account established. The 
64.2 	employer reasonable accommodation fund account is created as an account in the special 
64.3 	revenue fund. Money in the account is appropriated to the commissioner for the purposes 
64.4 	of  reimbursing eligible employers under this section.
64.5 		Subd. 6.Technical assistance and consultation. The commissioner may provide 
64.6 	technical assistance regarding requests for reasonable accommodations.
64.7 		Subd. 7.Administration and marketing costs. The commissioner may use up to 20 
64.8 	percent of the biennial appropriation for administration and marketing of this section.
64.9 		Subd. 8.Notification. By September 1, 2023, or within 60 days following final enactment, 
64.10 	whichever is later, and each year thereafter by June 30, the commissioner shall make publicly 
64.11 	available information regarding the availability of funds for reasonable accommodation 
64.12 	reimbursement and the procedure for requesting reimbursement under this section.
64.13 		Subd. 9.Reports to the legislature. By January 15, 2024, and each January 15 thereafter 
64.14 	until expiration, the commissioner must submit a report to the chairs and ranking minority 
64.15 	members of the house of representatives and the senate committees with jurisdiction over 
64.16 	workforce development that details the use of grant funds. This report must include data on 
64.17 	the number of employer reimbursements the program made in the preceding calendar year. 
64.18 	The report must include:
64.19 	(1) the number and type of accommodations requested;
64.20 	(2) the cost of accommodations requested;
64.21 	(3) the employers from which the requests were made;
64.22 	(4) the number and type of accommodations that were denied and why;
64.23 	(5) any remaining balance left in the account; and
64.24 	(6) if the account was depleted, the date on which funds were exhausted and the number, 
64.25 	type, and cost of accommodations that were not reimbursed to employers.
64.26 		Subd. 10.Expiration. This section expires June 30, 2025, or when money appropriated 
64.27 	for its purpose expires.

65.1 	ARTICLE 5
65.2 	UNEMPLOYMENT INSURANCE

65.3 	Section 1. [124D.995] UNEMPLOYMENT INSURANCE AID.
65.4 	(a) School districts and charter schools, including intermediate school districts and other 
65.5 	cooperative units under section 123A.24, subdivision 2, are eligible to receive unemployment 
65.6 	insurance aid under this section. For each fiscal year, an eligible entity's aid is the difference 
65.7 	between:
65.8 	(1) net audited unemployment costs, as reported under section 123B.76, for the prior 
65.9 	fiscal year; and
65.10 	(2) the base period net audited unemployment costs pursuant to paragraph (b).
65.11 	(b) The base period net audited unemployment costs equals the average of an eligible 
65.12 	entity's fiscal year 2023 and fiscal year 2024 net audited unemployment costs.
65.13 	(c) If the total eligible unemployment insurance aid for a fiscal year is greater than the 
65.14 	annual appropriation for that year, the commissioner must proportionately reduce the aid 
65.15 	payment to each eligible entity.

65.16 	EFFECTIVE DATE. This section is effective for aid beginning in fiscal year 2026.

65.17 	Sec. 2. Minnesota Statutes 2022, section 126C.43, subdivision 2, is amended to read:
65.18 		Subd. 2.Payment to unemployment insurance program trust fund by state and 
65.19 	political subdivisions. (a) A district may levy the amount necessary (1) to pay the district's 
65.20 	obligations under section 268.052, subdivision 1, and (2) to pay for job placement services 
65.21 	offered to employees who may become eligible for benefits pursuant to section 268.085 for 
65.22 	the fiscal year the levy is certified.
65.23 	(b) Districts with a balance remaining in their reserve for reemployment as of June 30, 
65.24 	2003, may not expend the reserved funds for future reemployment expenditures. Each year 
65.25 	a levy reduction must be made to return these funds to taxpayers. The amount of the levy 
65.26 	reduction must be equal to the lesser of: (1) the remaining reserved balance for reemployment, 
65.27 	or (2) the amount of the district's current levy under paragraph (a).
65.28 	(c) The amount in paragraph (a) must be reduced by any amount received by the district 
65.29 	under section 124D.995.
65.30 	(d) A district that is a member of an intermediate school district or other cooperative 
65.31 	unit under section 123A.24, subdivision 2, may include in its authority under this section 
66.1 	the costs associated with qualifying obligations under paragraph (a) for the cooperative unit. 
66.2 	Revenue raised under this paragraph must be transferred to the cooperative unit.

66.3 	Sec. 3. Minnesota Statutes 2022, section 127A.45, subdivision 12, is amended to read:
66.4 		Subd. 12.Payment percentage for certain aids.  One hundred percent of the aid for 
66.5 	the current fiscal year must be paid for the following aids: reimbursement for enrollment 
66.6 	options transportation, according to sections 124D.03, subdivision 8, and 124D.09, 
66.7 	subdivision 22, and chapter 124E; school lunch aid, according to section 124D.111; and
66.8 	support services aid, for persons who are deaf, deafblind, and hard-of-hearing according to 
66.9 	section 124D.57; and unemployment insurance aid according to section 124D.995.

66.10 	Sec. 4. Minnesota Statutes 2022, section 268.085, subdivision 7, is amended to read:
66.11 		Subd. 7.School employees; between terms denial. (a) Wage credits from employment 
66.12 	in an instructional, research, or principal administrative capacity with an elementary or 
66.13 	secondary school educational institution or institutions or in any capacity with a 
66.14 	post-secondary educational institution or institutions may not be used for unemployment 
66.15 	benefit purposes for any week during the period between two successive academic years 
66.16 	or terms if:
66.17 	(1) the applicant had employment for an educational institution or institutions in the 
66.18 	prior academic year or term; and
66.19 	(2) there is a reasonable assurance that the applicant will have employment for an 
66.20 	educational institution or institutions in the following academic year or term.
66.21 	This paragraph applies to a vacation period or holiday recess if the applicant was 
66.22 	employed with an educational institution or institutions in any position immediately before 
66.23 	the vacation period or holiday recess, and there is a reasonable assurance that the applicant 
66.24 	will be employed immediately following the vacation period or holiday recess. This paragraph 
66.25 	also applies to the period between two regular but not successive terms if there is an 
66.26 	agreement for that schedule between the applicant and the educational institution.
66.27 	This paragraph does not apply if the subsequent employment is substantially less 
66.28 	favorable than the employment of the prior academic year or term, or the employment prior 
66.29 	to the vacation period or holiday recess.
66.30 	(b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic 
66.31 	year or term, had an agreement for a definite period of employment between academic years 
67.1 	or terms in other than an instructional, research, or principal administrative capacity and 
67.2 	the educational institution or institutions failed to provide that employment.
67.3 	(c) If unemployment benefits are denied to any applicant under paragraph (a) who was 
67.4 	employed in the prior academic year or term in other than an instructional, research, or 
67.5 	principal administrative capacity and who was not offered an opportunity to perform the 
67.6 	employment in the following academic year or term, the applicant is entitled to retroactive 
67.7 	unemployment benefits for each week during the period between academic years or terms 
67.8 	that the applicant filed a timely continued request for unemployment benefits, but 
67.9 	unemployment benefits were denied solely because of paragraph (a).
67.10 	(d) This subdivision applies to employment with an educational service agency if the 
67.11 	applicant performed the services at an educational institution or institutions. "Educational 
67.12 	service agency" means a governmental entity established and operated for the purpose of 
67.13 	providing services to one or more educational institutions.
67.14 	(e) This subdivision applies to employment with Minnesota, a political subdivision, or 
67.15 	a nonprofit organization, if the services are provided to or on behalf of an educational 
67.16 	institution or institutions.
67.17 	(f) Paragraph (a) applies beginning the Sunday of the week that there is a reasonable 
67.18 	assurance of employment.
67.19 	(g) Employment and a reasonable assurance with multiple education institutions must 
67.20 	be aggregated for purposes of application of this subdivision.
67.21 	(h) If all of the applicant's employment with any educational institution or institutions 
67.22 	during the prior academic year or term consisted of on-call employment, and the applicant 
67.23 	has a reasonable assurance of any on-call employment with any educational institution or 
67.24 	institutions for the following academic year or term, it is not considered substantially less 
67.25 	favorable employment.
67.26 	(i) A "reasonable assurance" may be written, oral, implied, or established by custom or 
67.27 	practice.
67.28 	(j) An "educational institution" is a school, college, university, or other educational entity 
67.29 	operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit 
67.30 	organization.
67.31 	(k) An "instructional, research, or principal administrative capacity" does not include 
67.32 	an educational assistant.

68.1 	Sec. 5. Minnesota Statutes 2022, section 268.085, subdivision 8, is amended to read:
68.2 		Subd. 8.Services for school contractors. (a) Wage credits from an employer are subject 
68.3 	to subdivision 7, if:
68.4 	(1) the employment was provided under a contract between the employer and an 
68.5 	elementary or secondary school; and
68.6 	(2) the contract was for services that the elementary or secondary school could have had 
68.7 	performed by its employees.
68.8 	(b) Wage credits from an employer are not subject to subdivision 7 if:
68.9 	(1) those wage credits were earned by an employee of a private employer performing 
68.10 	work under a contract between the employer and an elementary or secondary school; and
68.11 	(2) the employment was related to food services or student transportation provided to 
68.12 	the school by the employer.

68.13 	EFFECTIVE DATE. This section is effective January 1, 2024.