A bill for an act
relating to economic development; equity; establishing a process for requesting a
racial equity impact note for legislation; appropriating money; proposing coding
for new law in Minnesota Statutes, chapter 3.

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

Section 1.

new text begin [3.99] RACIAL EQUITY IMPACT NOTES.
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new text begin Subdivision 1. new text end

new text begin Preparation. new text end

new text begin The commissioner of employment and economic
development, or the commissioner's designee, shall prepare a racial equity impact note
consistent with the standards and procedures adopted under this section at the request of
the chair and ranking minority members of the standing committee to which a bill has been
referred, the chair and ranking minority members of the house of representatives ways and
means committee, or the chair and ranking minority members of the senate finance
committee. The Legislative Budget Office shall coordinate the completion of the racial
equity impact note.
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new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The purpose of a racial equity impact note is to provide an
objective-based assessment to inform legislators and the public of potential racial economic
disparities that may be exacerbated or created by proposed legislation.
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new text begin Subd. 3. new text end

new text begin Contents. new text end

new text begin (a) A racial equity impact note must:
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new text begin (1) describe whether and how legislation would have an inequitable racial impact;
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new text begin (2) describe the method and metrics used to determine the racial impact information
required in clause (1), measured by:
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new text begin (i) employment data;
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new text begin (ii) potential income or expenses outcomes;
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new text begin (iii) wealth and wealth creation opportunities; and
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new text begin (iv) other related economic outcomes;
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new text begin (3) include the assumptions used in determining the racial equity impact of legislation;
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new text begin (4) specify any long-range implication; and
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new text begin (5) other items as determined by the Legislative Budget Office.
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new text begin (b) In preparing a racial equity impact note, the Legislative Budget Office may consult
other sources for information, including but not limited to:
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new text begin (1) Department of Employment and Economic Development data center;
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new text begin (2) Minnesota Compass data;
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new text begin (3) United States Census Bureau data tools;
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new text begin (4) IPUMS online data analysis system;
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new text begin (5) John Hopkins Coronavirus Resource Center map of racial data transparency;
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new text begin (6) National Equity Atlas economic indicators of racial and social equity; and
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new text begin (7) Kaiser Family Foundation health disparity summary statistics.
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new text begin (c) To the extent practicable, a racial equity impact note shall be completed within 20
days from the date of initial request.
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new text begin Subd. 4. new text end

new text begin Data and analytical tools; socioeconomic impact frameworks. new text end

new text begin (a)
Socioeconomic impact frameworks utilized by federal entities may be used in preparing a
racial equity impact note.
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new text begin (b) Socioeconomic impact frameworks used shall address:
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new text begin (1) existing baseline and economic conditions of the affected groups;
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new text begin (2) current economic conditions of the population affected by the proposed legislation,
including demographic and economic indicators, to describe the status of minority groups;
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new text begin (3) expected change in the economic conditions of the affected groups if the proposed
legislation is enacted;
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new text begin (4) an estimate of the economic impact of the proposed legislation in economic terms
for income and employment by specific communities impacted; and
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new text begin (5) a summary of the overall economic impact showing:
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new text begin (i) the difference in economic conditions for groups if the legislation is enacted as
compared to baseline conditions;
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new text begin (ii) whether impacts can be positive or negative; and
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new text begin (iii) whether impacts shall be further characterized by their duration, whether temporary,
short term, long term, or permanent; breadth, including the number of people of color who
would be affected; and magnitude, whether negligible, minor, or major impact on those
affected.
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new text begin Subd. 5. new text end

new text begin Racial equity impact note structure; detail and documentation. new text end

new text begin (a) A racial
equity impact note shall include detailed results with supporting information about analytical
methods and data sources.
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new text begin (b) Notes shall be organized by the following separate elements:
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new text begin (1) a bill description containing a summary, issues addressed, and any targeted
populations of the proposed bill;
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new text begin (2) a description of the current economic conditions of the affected population;
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new text begin (3) an impact assessment containing methodology, baseline conditions for potentially
affected groups, economic conditions for the potentially affected groups if the proposed
legislation is enacted, and a summary impact assessment;
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new text begin (4) a listing of analytical methods, data sources, and agencies contacted in preparing the
note;
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new text begin (5) any data limitations; and
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new text begin (6) appendices.
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new text begin Subd. 6. new text end

new text begin Distribution. new text end

new text begin A copy of the racial equity impact note shall be delivered by the
Legislative Budget Office to the chair and ranking minority members of the house of
representatives ways and means committee, the chair and ranking minority members of the
senate finance committee, the chair and ranking minority members of the standing committee
to which the bill has been referred, the chief author of the bill, and the commissioner of
management and budget.
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Sec. 2. new text beginAPPROPRIATION.
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new text begin $....... in fiscal year 2024 is appropriated from the general fund to the Legislative
Coordinating Commission for the Legislative Budget Office to conduct the work of preparing
racial equity impact notes as prescribed in Minnesota Statutes, section 3.99.
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