The bill, Minnesota Senate File No. 1697, proposes amendments to Minnesota Statutes 2024, section 116L.20 to allow small employers to receive refunds of special assessments paid into the Workforce Development Fund if the money is used for employee training.

Key Provisions:

1. Refund Eligibility:

   • Employers with 100 or fewer employees may annually request a refund of special assessment amounts they have paid into the fund.

2. Use of Refunds:

   • Refunded amounts must be used for employee training, specifically:
     
     • Upskilling current entry-level employees
       
     • Training that leads to higher salaries or career advancement
       
     • Training can only be for Minnesota employees

3. Annual Reporting Requirement:

   • The commissioner must submit an annual report (starting January 15, 2026) to the Senate and House workforce development committees, detailing:
     
     1. Current balance in the Workforce Development Fund
        
     2. Total special assessments collected in the previous year
        
     3. Total refunds issued to employers under this provision
        

Funding:

• The bill appropriates necessary funds annually for issuing employer refunds.

Purpose:

This bill seeks to support workforce development by allowing small employers to reinvest funds into employee skills enhancement and career growth, ultimately strengthening Minnesota's labor force.