HF3843

Purpose

• This bill adds a formal process for distributing appropriations from Minnesota’s workforce development fund to nonprofit organizations. It requires the state workforce development board to create a subcommittee to review nonprofit applications and recommend which organizations should receive funding, with the results reported to the legislature.

Main Provisions

• Establishment of a subcommittee: A subcommittee of the workforce development board must be formed to review applications from nonprofit organizations and to recommend appropriations from the workforce development fund.
• Outreach: The subcommittee must actively reach out to nonprofit organizations that provide workforce development services to inform them about the opportunity to apply.
• Review criteria: When evaluating applications, the subcommittee must consider at least:
  • Whether the organization is legally established and in good standing with the state
  • Whether all required tax forms, financial disclosures, and other reports have been filed
  • The organization’s history of past state funding
  • The organization’s number of employees and details about executive compensation
  • The organization’s past success in delivering workforce development services
• Reporting to the board: After reviewing applications, the subcommittee must produce a report to the board with recommendations on which nonprofits should receive appropriations, including the suggested amount and the purpose of each appropriation, grouped by the type of workforce development services funded.
• Board action: The board must consider the subcommittee’s recommendations and vote to either approve them or send them back for further consideration.
• Regular reporting to lawmakers: Beginning January 1, 2027, and every odd-numbered year thereafter, the board must submit an approved version of the recommendations report to the chairs and ranking minority members of the legislative committees that oversee workforce development.

Process and Timeline

• Timeline for reporting: By January 1 of each odd-numbered year (starting in 2027), the board must deliver an approved set of recommendations to the specified legislative leaders.
• Grouping: Reports should categorize recommendations by the type of workforce development services funded.

Significant Changes to Existing Law

• Adds a formal Subdivision (Subd. 9) to Minnesota Statutes 2024, section 116L.665, creating a defined process for evaluating nonprofit applicants for workforce development fund appropriations.
• Creates accountability measures for applicants (organization status, disclosures, past funding, compensation data, and service history).
• Establishes a structured, ongoing reporting requirement to the legislature on funded recommendations on a biennial, odd-year schedule.

Oversight and Accountability

• Adds a biennial reporting requirement to legislative committees with jurisdiction over workforce development.
• Requires outreach to broaden nonprofit participation and transparency in how funds are allocated.

Relevant Terms - workforce development fund - nonprofit organizations - appropriations - subcommittee - board - Minnesota Statutes 2024 section 116L.665 - Subd. 9 - outreach - tax forms - financial disclosures - past state funding - executive compensation - workforce development services - chairs and ranking minority members - legislative committees with jurisdiction over workforce development - report to legislature - odd-numbered years - January 1, 2027