The bill H.F. No. 1851 in the Minnesota House of Representatives requires the state's Commissioner of Employment and Economic Development to submit an annual report evaluating the performance of organizations that receive workforce development grants from the department.

Key Provisions:

1. Effective Date: The first report must be submitted by January 15, 2026, and annually thereafter.
2. Recipients of the Report: The report must be presented to the chairs and ranking minority members of legislative committees overseeing workforce development.

3. Required Information on Each Grant Recipient:

   • Purpose of the grant.
   • Amount of the grant awarded.
   • Previous grants received from the department.
   • Other state and federal grants received in the most recent fiscal year.
   • Number of Minnesotans served by the organization.
   • Number of individuals completing the organization’s job training program (if applicable).
   • Number of individuals successfully placed in a living wage job.
   • Placement effectiveness, calculated as the ratio of people placed into living wage jobs to those served.
   • Cost-effectiveness, calculated as the total grants received divided by the number of individuals placed in living wage jobs.
   • The organization’s charitable giving ratio.

4. Out-of-State Services: If a grantee provides services to non-Minnesota residents, they must report:

   • The states where these participants reside.
   • The justification for using Minnesota funding to serve out-of-state individuals.

5. Exemptions:

   • The commissioner is not required to report on placement or cost-effectiveness for grantees whose programs do not require completion or cannot be measured objectively.
   • Reporting is not required for information that was not collected prior to the law's enactment.

Purpose of the Bill:

This bill seeks to increase transparency and accountability in workforce development grant distribution by evaluating grant recipients on key performance indicators.