SF2465

Purpose of the Bill

The bill aims to enhance transparency and accountability in workforce development by requiring annual reports on the performance of organizations receiving grants from the Minnesota Department of Employment and Economic Development.

Main Provisions

• Annual Reporting: Beginning January 15, 2026, the commissioner of employment and economic development must submit an annual report on grantee performance to the legislative committees overseeing workforce development.
• Report Contents: Each report must include:
  1. The purpose of each grant.
  2. The amount awarded to each grantee.
  3. Details of past grants received by the grantee from the department.
  4. Other state and federal grants received by the grantee.
  5. The number of Minnesotans served by the grantee, particularly those completing job training programs.
  6. The number of participants placed in a living wage job.
  7. The effectiveness of placement programs.
  8. Cost effectiveness in relation to grants and services provided.
  9. The organization's charitable giving ratio.
• Non-Minnesota Services: If grant funding is used to assist non-Minnesotans, the report must include the states where these individuals reside and the rationale behind extending services beyond Minnesota residents.

Significant Changes to Existing Law

This bill introduces a new requirement for comprehensive reporting on workforce development grants, which includes objective measurements of programs funded by the state. It places emphasis on evaluating job placement success and cost-effectiveness.

Relevant Terms

Minnesota Department of Employment and Economic Development, workforce development, grantee performance, annual report, job training programs, living wage job, placement effectiveness, cost effectiveness, charitable giving ratio, non-Minnesota residents.