A bill for an act
relating to economic development; making supplemental budget adjustments for
the Department of Employment and Economic Development; appropriating money;
amending Minnesota Statutes 2023 Supplement, section 116L.43, subdivision 1;
Laws 2023, chapter 53, article 20, section 2, subdivisions 4, 6; article 21, section
6; repealing Minnesota Statutes 2022, section 116J.439.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 116L.43, subdivision 1, is amended
to read:


Subdivision 1.

Definitions.

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

(b) "Community-based organization" means a nonprofit organization that:

(1) provides workforce development programming or services;

deleted text begin (2) has an annual organizational budget of no more than $1,000,000;
deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end has its primary office located in a historically underserved community of color
or low-income community; and

deleted text begin (4)deleted text end new text begin (3)new text end serves a population that generally reflects the demographics of that local
community.

(c) "Entry level jobs" means part-time or full-time jobs that an individual can perform
without any prior education or experience.

(d) "High wage" means the income needed for a family to cover minimum necessary
expenses in a given geographic area, including food, child care, health care, housing, and
transportation.

(e) "Industry specific certification" means a credential an individual can earn to show
proficiency in a particular area or skill.

(f) "Remedial training" means additional training provided to staff following the
identification of a need and intended to increase proficiency in performing job tasks.

(g) "Small business" has the same meaning as section 645.445.

Sec. 2.

Laws 2023, chapter 53, article 20, section 2, subdivision 4, is amended to read:


Subd. 4.

General Support Services

18,045,000
8,045,000
Appropriations by Fund
2024
2025
General Fund
17,950,000
7,950,000
Workforce
Development
95,000
95,000

new text begin The base for the general support services
division in fiscal year 2026 is $5,950,000 for
the general fund and $95,000 for the
workforce development fund.
new text end

(a) $1,269,000 each year is for transfer to the
Minnesota Housing Finance Agency for
operating the Olmstead Compliance Office.

(b) $10,000,000 the first year is for the
workforce digital transformation projects. This
appropriation is onetime and is available until
June 30, 2027.

Sec. 3.

Laws 2023, chapter 53, article 20, section 2, subdivision 6, is amended to read:


Subd. 6.

Vocational Rehabilitation

45,691,000
deleted text begin 45,691,000 deleted text end new text begin
40,636,000
new text end
Appropriations by Fund
2024
2025
General
37,861,000
deleted text begin 37,861,000 deleted text end new text begin
32,806,000
new text end
Workforce
Development
7,830,000
7,830,000

(a) $14,300,000 each year is for the state's
vocational rehabilitation program under
Minnesota Statutes, chapter 268A.

(b) $11,495,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. Of the amounts appropriated from
the general fund, $4,500,000 each year is for
maintaining prior rate increases to providers
of extended employment services for persons
with severe disabilities under Minnesota
Statutes, section 268A.15.

(c) $5,055,000 deleted text begin each yeardeleted text end new text begin in the first yearnew text end is for
grants to programs that provide employment
support services to persons with mental illness
under Minnesota Statutes, sections 268A.13
and 268A.14new text begin , and is available until June 30,
2025
new text end . The base for this appropriation is
$2,555,000 in fiscal year 2026 and each year
thereafter.

(d) $7,011,000 each year is for grants to
centers for independent living under
Minnesota Statutes, section 268A.11. This
appropriation is available until June 30, 2027.
The base for this appropriation is $3,011,000
in fiscal year 2026 and each year thereafter.

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

Sec. 4.

Laws 2023, chapter 53, article 21, section 6, is amended to read:


Sec. 6. TRANSFERS.

(a) In the biennium ending on June 30, 2025, the commissioner of management and
budget must transfer $400,000,000 from the general fund to the Minnesota forward fund
account established in Minnesota Statutes, section 116J.8752, subdivision 2. The base for
this transfer is $0.

(b) In the biennium ending on June 30, 2025, the commissioner of management and
budget shall transfer $25,000,000 from the general fund to the Minnesota climate innovation
authority account established in Minnesota Statutes, section 216C.441, subdivision 11. The
base for this transfer is $0.

(c) In the biennium ending on June 30, 2025, the commissioner of management and
budget must transfer $75,000,000 from the general fund to the state competitiveness fund
account established in Minnesota Statutes, section 216C.391, subdivision 2. Notwithstanding
Minnesota Statutes, section 216C.391, subdivision 2, the commissioner of commerce must
use this transfer for grants to eligible entities for projects receiving federal loans or tax
credits where the benefits are in disadvantaged communities. The base for this transfer is
$0. Up to three percent of money transferred under this paragraph is for administrative costs.