Bill
HF 3732
The bill reorganizes and refocuses DEED programs to expand targeted workforce training and wraparound supports while tightening accountability and modernizing governance across rel
HF 3732 (2025-2026) — Summary of Key Provisions
Purpose and overall intent
- The bill repeals or reorganizes several unfunded or outdated programs within the Department of Employment and Economic Development (DEED) and makes conforming policy and structural changes across related economic development and workforce systems. It also adjusts governing structures, reporting requirements, and some program authorities to streamline operations and redirect funding toward prioritized workforce and economic development efforts.
Major provisions and changes by article
Article 1 — DEED program changes and new/modified authorities
- Sec. 1: Development restrictions expiration. If a grant-funded public infrastructure project is not developed within 10 years of a grant award, the funded infrastructure may be used for another lawful project, with notification to the commissioner.
- Secs. 2-4: Revisions to youth-focused education, training, and support programs (116L.362, 116L.364, 116L.561)
- Grants to eligible organizations for youth education, training, and supportive services, with explicit alignment to homeless and low-income populations and facilities (e.g., shelter, housing, health facilities, community gardens).
- Programs emphasize education, work experience, job skills, leadership, counseling, and wraparound supports.
- Allowable costs and administrative share limits specified (up to 15% admin, remainder for training/participant support).
- Sec. 5-6: Workforce development funding processes and governance
- Section 116L.562 and 116L.665 add subcommittee and reporting requirements to guide funding decisions, align with the state’s Workforce Innovation and Opportunity Act plan, and cap total recommended appropriations at $10 million.
- Requires outreach to nonprofit applicants and a legislatively reportable funding framework.
- Sec. 7: Cannabis industry workforce training
- Creates grant-based training for education and employment in the legal cannabis industry, prioritizing credentials, hands-on experience, and broad career training across growing, processing, and retail segments.
- Sec. 8-9: Health care workforce grant program; reporting requirements
- Establishes a competitive health care workforce grant program with plain-language reporting, performance metrics, and annual reporting beginning 2028. Requires grantees to provide participant- and program-level data.
- Sec. 10: Pathways to Prosperity program (barriers-to-employment focus)
- Competitive grants to organizations offering counseling, ESL/basic education, credentials, targeted placement, and wraparound supports for adults with barriers to employment.
- Emphasizes serving populations facing significant employment barriers and ensuring alignment with labor market demands; requires performance metrics and annual compliance reporting under 116L.98.
- Sec. 11: Women-focused employment and training program (ancillary use of funds)
- Expands use of funds to recruit and train women for high-wage, high-demand, nontraditional occupations; prioritizes women of color, low-income women, and women over 50; requires accountability data, including cost per credential and other outcomes.
- Sec. 12: Iron Ore Unemployment Benefit expansion (retroactive)
- Adds a temporary, targeted unemployment benefit program for workers affected by iron ore industry job losses (late 2025 to early 2027), with criteria on benefit accounts and coordination with federal programs. Effective retroactively to Nov 1, 2025.
- Sec. 13: Extended Employment program
- Waives certain licensing/enrollment rules (Nov 1, 2025 – Jul 1, 2028) to reduce wait times and access delays for extended employment services when licensed providers are scarce.
- Secs. 14-15: Rural Cancer Institute pilot and Office of Community Investment
- Modifies Rural Cancer Institute appropriation to prioritize Minnesota clinicians/students, with funds available through Jun 30, 2028.
- Creates a centralized Office of Community Investment (2027) to oversee grants, streamline operations, enhance transparency, and coordinate across DEED.
Article 2 — Labor and Industry provisions
- Aligns municipal plan review and code enforcement for public buildings with a structured process for determining inspector sufficiency, reconsideration rights, and potential contested case appeals.
- Revisions to electrical licensure and fee structures (Class B installers; renewal; capstone inspections) and to the governance and operations of the Electrical Board and related licensing provisions.
Article 3 — Explore Minnesota
- Updates to Explore Minnesota councils (for tourism and business development), including membership composition, meeting practices (remote participation), and governance to emphasize DEI and accessible marketing strategies.
Article 4 — Northern Technology Initiative, Inc.
- Establishes or reorganizes a regional economic initiative with a governing board including DEED representation, and prescribes bylaws, meetings, data privacy, and conflict-of-interest provisions.
Article 5 — Repealers and obsolete programs
- Repeals specified 2024 statutory provisions tied to older DEED programs (with phased effective dates in 2026-2027) and retires several outdated grant rules and program authorities.
Impacts and who is affected
- Directly affects DEED-administered workforce development grants, with expanded funding streams targeting youth, women, health care, and barrier-focused pathways to prosperity.
- Affects municipalities and non-profit grantees via new reporting, accountability, geographic/demographic diversity goals, and grant administration oversight (Office of Community Investment).
- Changes in licensing, inspection fees, and regulatory processes for the Department of Labor and Industry.
- Explore Minnesota governance and Northern Technology Initiative operations receive updated structures and reporting expectations.
Timelines and procedural notes
- Several sections implement grant and reporting requirements beginning 2027-2028, with earlier effective changes on health care, cannabis training, extended employment waivers (through 2028), and retroactive unemployment benefits (effective Nov 1, 2025).
- Ongoing oversight and annual reporting to legislative committees, with cross-agency coordination requirements.
Overall, HF 3732 rebalances DEED’s unfunded/obsolete programs, expands targeted workforce training and support programs, tightens accountability and reporting, and modernizes governance across tourism, Explore Minnesota, and regional economic initiatives.
Compiled from official sources — confirm details with the bill’s official record.
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