SF4427

Purpose

• To amend Minnesota law (116L.665) by adding a new Subdivision 9 that creates a formal process for overseeing how funds from the workforce development fund are allocated to nonprofit organizations that provide workforce development services. The goal is to have a structured, transparent review and reporting system that guides legislative appropriations.

Main Provisions

• Establishment of a subcommittee: The Minnesota Workforce Development Board must form a subcommittee made up of its members to review grant applications from nonprofit organizations and to recommend which applicants should receive funding from the workforce development fund.
• Outreach obligations: The subcommittee must actively reach out to nonprofit groups that provide workforce development services to inform them about the opportunity to apply for funding recommendations.
• Review criteria: When evaluating applications, the subcommittee must consider at least the following:
  • Whether the applicant is legally organized and in good standing with the state
  • Whether required tax forms, financial disclosures, and other reports have been filed
  • The applicant’s history of past state funding
  • The applicant’s number of employees and executive compensation details
  • The applicant’s past success in delivering workforce development services
• Reporting to the board and legislature: After reviewing applications, the subcommittee must prepare a report to the board with recommendations on which applicants should receive appropriations, including the amounts and purposes, grouped by the type of workforce development services to be funded. The board will then vote to approve or return the report to the subcommittee for further consideration.
• Timing for reporting: Beginning January 1, 2027, and every odd-numbered year thereafter, the board must submit an approved version of the report to the chairs and ranking minority members of the legislative committees with jurisdiction over workforce development.

Process and Evaluation Criteria

• The subcommittee’s outreach ensures broad awareness among eligible nonprofits.
• Evaluation focuses on legal standing, compliance history, funding history, organizational size and compensation transparency, and proven track record in delivering services.

Reporting and Timing

• Reports to be compiled by the subcommittee and then reviewed by the board, with a formal approval process.
• An approved report must be submitted by the board to legislative leadership (chairs and ranking minority members) every odd-numbered year starting in 2027, covering the intended funding and purposes.

Changes to Law

• Adds Subdivision 9 to Minnesota Statutes 2024 section 116L.665, creating a formal subcommittee review process, outreach requirements, and a biennial reporting cycle to inform legislative appropriations from the workforce development fund.
• Establishes criteria and a structured flow from application review to board approval and legislative reporting.

Relevant Terms - workforce development fund - appropriations / legislative appropriation - nonprofit organizations - subcommittee - Minnesota Workforce Development Board - report to the legislature - outreach - legally organized / good standing - tax forms - financial disclosures - past state funding - number of employees - executive compensation - past record of success - workforce development services - chairs and ranking minority members - legislative committees with jurisdiction over workforce development - odd-numbered year - January 1, 2027 - Minnesota Statutes 2024 section 116L.665