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HF 1583

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/13/2023 01:06pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to workforce development; modifying the use of the workforce development
fund; creating the Grant Review Advisory Council; requiring reports; appropriating
money; amending Minnesota Statutes 2022, sections 116L.05, subdivision 5;
116L.20, subdivision 2, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 116L.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 116L.05, subdivision 5, is amended to read:


Subd. 5.

Use of workforce development funds.

After March 1 of any fiscal year, the
board may use deleted text beginworkforce developmentdeleted text end fundsnew text begin appropriated under section 116L.20, subdivision
2, paragraph (b), clause (1),
new text end for the purposes outlined in sections deleted text begin116L.02 and 116L.04, or
to provide incumbent worker training services under section 116L.18
deleted text endnew text begin 116L.21 and 116L.22new text end
if the following conditions have been met:

(1) the board examines relevant economic indicators, including the projected number
of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of declining
and expanding industries, the number of initial applications for and the number of exhaustions
of unemployment benefitsnew text begin disaggregated by race and ethnicitynew text end, job vacancy data, and any
additional relevant information brought to the board's attention;

(2) the board accounts for all allocations made in section 116L.17, subdivision 2;

(3) based on the past expenditures and projected revenue, the board estimates future
funding needs for services under section 116L.17 for the remainder of the current fiscal
year and the next fiscal year;

(4) the board determines there will be unspent funds after meeting the needs of dislocated
workers in the current fiscal year and there will be sufficient revenue to meet the needs of
dislocated workers in the next fiscal year; and

(5) the board reports its findings in clauses (1) to (4) to the chairs of legislative
committees with jurisdiction over the workforce development fund, to the commissioners
of revenue and management and budget, and to the public.

Sec. 2.

Minnesota Statutes 2022, section 116L.20, subdivision 2, is amended to read:


Subd. 2.

Disbursement of special assessment funds.

(a) The money collected under
this section shall be deposited in the state treasury and credited to the workforce development
fund to provide for employment and training programs. The workforce development fund
is created as a special account in the state treasury.

(b) deleted text beginAll money in the fund not otherwise appropriated or transferred is appropriated to
the Job Skills Partnership Board for the purposes of section 116L.17 and as provided for in
paragraph (d).
deleted text endnew text begin Of the projected revenues for the fund not otherwise appropriated or transferred
by July 1 of each year:
new text end

new text begin (1) at least 30 percent is appropriated to the Job Skills Partnership Board for the purposes
of section 116L.17;
new text end

new text begin (2) up to five percent is appropriated to the Job Skills Partnership Board for the purposes
of sections 116L.02 and 116L.04; and
new text end

new text begin (3) up to 65 percent is appropriated to the commissioner for workforce development
grants under subdivision 3.
new text end

new text begin (c) All money in the fund from prior fiscal years not otherwise appropriated or transferred
is appropriated to the Job Skills Partnership Board for the purposes of section 116L.17. If
the conditions under section 116L.05, subdivision 5, are met as of March 1 of each year, a
minimum of 50 percent and up to a maximum of 70 percent of the unspent money must be
transferred for the programs under sections 116L.21 and 116L.22.
new text end

new text begin (d) If actual revenues collected under this section are insufficient to support the projected
appropriations and transfer amounts, the fund reserve under paragraph (c) must be utilized
to cover revenue shortfall before any other uses or transfers. If the reserve is insufficient to
meet the shortfall, future revenues must be utilized to cover the shortfall before being
allocated under paragraph (b) to maintain fund solvency.
new text end

new text begin (e)new text end The board must act as the fiscal agent for the money and must disburse that money
for the purposes of section 116L.17, not allowing the money to be used for any other
obligation of the state. All money in the workforce development fund shall be deposited,
administered, and disbursed in the same manner and under the same conditions and
requirements as are provided by law for the other special accounts in the state treasury,
except that all interest or net income resulting from the investment or deposit of money in
the fund shall accrue to the fund for the purposes of the fund.

deleted text begin (c)deleted text endnew text begin (f)new text end Reimbursement for costs related to collection of the special assessment shall be
in an amount negotiated between the commissioner and the United States Department of
Labor.

deleted text begin (d) If the board determines that the conditions of section 116L.05, subdivision 5, have
been met, the board may use funds for the purposes outlined in section 116L.04, or to provide
incumbent worker training services under section 116L.18.
deleted text end

Sec. 3.

Minnesota Statutes 2022, section 116L.20, is amended by adding a subdivision to
read:


new text begin Subd. 3. new text end

new text begin Workforce development grants. new text end

new text begin (a) Grants awarded using money appropriated
under subdivision 2, paragraph (b), clause (3), must be allocated to maximize delivery to
organizations with strong relationships with individuals who are Black, Indigenous, or
People of Color. Grant awards must be consistent with the overall geographic population
distribution of the state. Preference or priority for grant awards must be given to organizations
with experience serving communities with the greatest needs that are Black, Indigenous,
and People of Color.
new text end

new text begin (b) Of the amount appropriated under subdivision 2, paragraph (b), clause (3):
new text end

new text begin (1) up to six percent is for administration and monitoring of the workforce development
programs; and
new text end

new text begin (2) grants must be made for programs under sections 116L.362, 116L.561, 116L.562,
116L.96, and 116L.99.
new text end

new text begin (c) Of the amount appropriated under subdivision 2, paragraph (b), clause (3), remaining
after the appropriations under paragraph (b):
new text end

new text begin (1) 50 percent is for removing barriers to employment grants under section 116L.21;
and
new text end

new text begin (2) 50 percent is for innovative employment solutions grants under section 116L.22.
new text end

new text begin (d) When making competitive grants for adult grantees, the commissioner shall benchmark
outcomes against similar populations with similar barriers to employment. The commissioner
must consider the following outcomes for competitive grant awards focused on adults: job
placement and retention, wage levels, and credentials attainment. The commissioner must
consider the following outcomes for competitive grant awards focused on youth: work
readiness, credentials, and placement.
new text end

Sec. 4.

new text begin [116L.21] REMOVING BARRIERS TO EMPLOYMENT GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Minority" means a person who identifies as a member of one or more of the following
groups:
new text end

new text begin (1) Black, including persons having origins in any of the Black African racial groups
not of Hispanic origin;
new text end

new text begin (2) Hispanic, including persons of Mexican, Puerto Rican, Cuban, Central American,
South American, or other Spanish culture or origin, regardless of race;
new text end

new text begin (3) Asian and Pacific Islander, including persons having origins in any of the original
peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands; and
new text end

new text begin (4) American Indian or Alaska Native, including persons having origins in any of the
original people of North America and maintaining identifiable Tribal affiliations through
membership and participation or community identification.
new text end

new text begin (d) "Program" means the removing barriers to employment grant program under this
section.
new text end

new text begin (e) "Targeted population" means socially and economically disadvantaged minority
populations who experience complex needs and barriers to employment.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a competitive grant program
for organizations to provide individuals with barriers to employment the services, including
supportive services, needed to enter, participate in, and complete workforce preparation,
training, and education programs.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin (a) Grants under this section shall be awarded on a competitive basis
after consultation with the Grant Review Advisory Council under section 116L.23.
new text end

new text begin (b) The commissioner must provide outreach and technical assistance to prospective
applicants.
new text end

new text begin (c) Grant applicants may be required to participate in technical assistance activities,
including but not limited to convening communities of practice to identify and help replicate
evidence-based practices and to help facilitate an assessment and evaluation of grant
performance and initiative success.
new text end

new text begin Subd. 4. new text end

new text begin Award criteria. new text end

new text begin (a) The commissioner shall develop criteria for the selection
of grant recipients that focus on but are not limited to the applicant's demonstrated capacity
to provide services to targeted populations.
new text end

new text begin (b) Priority must be given to applications that integrate individuals from targeted
populations into career pathway programs aligned with regional labor market needs.
new text end

new text begin (c) Grant awards must cumulatively ensure the provision of services statewide to a range
of targeted populations.
new text end

new text begin Subd. 5. new text end

new text begin Capacity building grants. new text end

new text begin (a) A portion of the money available for this program
must be allocated for capacity building competitive grants to small, culturally specific
nonprofit organizations that serve historically underserved cultural communities and have
an annual organizational budget of less than $500,000.
new text end

new text begin (b) Capacity building grants may be used for the following purposes: organizational
infrastructure improvement, organizational workforce development, and the creation or
expansion of partnerships.
new text end

new text begin Subd. 6. new text end

new text begin Performance outcome measures. new text end

new text begin Reporting and performance outcomes for
this program must comply with the requirements under section 116L.98.
new text end

new text begin Subd. 7. new text end

new text begin Report to the legislature. new text end

new text begin (a) Within one year of receiving grant funds under
this section, each organization must submit a written report to the commissioner on the use
of grant funds.
new text end

new text begin (b) Beginning in January 2025, the commissioner must submit a biennial report on the
information reported under paragraph (a), as required under section 3.195. A copy of this
report must also be sent to the chairs and ranking minority members of the committees of
the house of representatives and the senate having jurisdiction over workforce development.
new text end

Sec. 5.

new text begin [116L.22] INNOVATIVE EMPLOYMENT SOLUTIONS GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Department" means the Department of Employment and Economic Development.
new text end

new text begin (d) "Minority" means a person who identifies as a member of one or more of the following
groups:
new text end

new text begin (1) Black, including persons having origins in any of the Black African racial groups
not of Hispanic origin;
new text end

new text begin (2) Hispanic, including persons of Mexican, Puerto Rican, Cuban, Central American,
South American, or other Spanish culture or origin, regardless of race;
new text end

new text begin (3) Asian and Pacific Islander, including persons having origins in any of the original
peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands; and
new text end

new text begin (4) American Indian or Alaska Native, including persons having origins in any of the
original people of North America and maintaining identifiable Tribal affiliations through
membership and participation or community identification.
new text end

new text begin (e) "Performance measures" means specific, measurable, time-based goals, the completion
of which predicates payment under a pay-for-performance agreement.
new text end

new text begin (f) "Program" means the innovative employment solutions grant program under this
section.
new text end

new text begin (g) "Targeted population" means socially and economically disadvantaged minority
populations who experience complex needs and barriers to employment.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a competitive grant program
for organizations to provide individuals with barriers to employment the services, including
supportive services needed to enter, participate in, and complete workforce preparation,
training, and education programs aligned with regional labor market needs in innovative
ways. This program shall fund new, innovative ideas and approaches and work with
organizations with no previous experience with the department. Priority must be given to
applications that integrate individuals from targeted populations into career pathway programs
aligned with regional labor market needs.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin (a) Grants under this section shall be awarded on a competitive basis
after consultation with the Grant Review Advisory Council under section 116L.23.
new text end

new text begin (b) The commissioner must provide outreach and technical assistance to prospective
applicants.
new text end

new text begin (c) Grant applicants may be required to participate in technical assistance activities,
including but not limited to convening communities of practice to identify and help replicate
evidence-based practices and to help facilitate an assessment and evaluation of grant
performance and initiative success.
new text end

new text begin Subd. 4. new text end

new text begin Performance outcome measures. new text end

new text begin Reporting and performance outcomes for
this program must comply with the requirements under section 116L.98.
new text end

new text begin Subd. 5. new text end

new text begin Report to legislature. new text end

new text begin (a) Within one year of receiving grant funds under this
section, each organization must submit a written report to the commissioner on the use of
grant funds.
new text end

new text begin (b) Beginning in January 2025, the commissioner must submit a biennial report on the
information reported under paragraph (a), as required under section 3.195. A copy of this
report must also be sent to the chairs and ranking minority members of the committees of
the house of representatives and the senate having jurisdiction over workforce development.
new text end

Sec. 6.

new text begin [116L.23] GRANT REVIEW ADVISORY COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic
development shall establish a Grant Review Advisory Council to provide guidance for
grants made under sections 116L.21 and 116L.22, including recommending community
reviewers and criteria for ranking applicants for awards and providing oversight of the
training and outreach for community reviewers.
new text end

new text begin Subd. 2. new text end

new text begin Appointment of members. new text end

new text begin (a) By July 15, 2023, the commissioner shall
appoint 15 members to the advisory council. These members must have demonstrated
experience and expertise in workforce development and must represent a diverse range of
communities and perspectives.
new text end

new text begin (b) After the initial appointments, members of the advisory council shall be appointed
no later than January 15 of every odd-numbered year and shall serve until January 15 of
the next odd-numbered year. Members may be removed and vacancies filled as provided
in section 15.059, subdivision 4. Appointed members are eligible for reappointment and
shall serve until their successors have been appointed.
new text end

new text begin Subd. 3. new text end

new text begin Operations. new text end

new text begin (a) The commissioner shall convene the first meeting of the
advisory council no later than August 1, 2023. The advisory council shall elect a chair and
other officers at its first meeting and biannually thereafter. The duties of these officers shall
be established by the advisory council.
new text end

new text begin (b) Members of the advisory council serve without compensation or payment of expenses.
new text end

new text begin (c) The commissioner shall provide meeting space and administrative services for the
advisory council. All costs necessary to support the advisory council's operations must be
absorbed using existing appropriations available to the commissioner.
new text end

new text begin (d) The advisory council is subject to chapter 13D but may close a meeting to discuss
sensitive, private business information included in grant applications. Data related to a grant
application submitted to the advisory council is governed by section 13.599.
new text end

new text begin Subd. 4. new text end

new text begin Review of grants. new text end

new text begin The advisory council shall recommend criteria for ranking
applicants for awards under sections 116L.21 and 116L.22. These criteria must consider
which applicants are currently able or have the best potential to:
new text end

new text begin (1) reach a broad diverse audience, including any populations targeted by the program,
through their recruitment and outreach efforts;
new text end

new text begin (2) significantly increase enrollment in and completion of the training program the
applicant plans to promote;
new text end

new text begin (3) fill existing market needs for skilled workers; and
new text end

new text begin (4) for grants under section 116L.22, utilize section 116J.8747.
new text end

new text begin The advisory council must also consider the documented employment outcomes each
applicant achieved when operating similar programs in the past.
new text end

new text begin Subd. 5. new text end

new text begin Conflicts of interest. new text end

new text begin A member of the advisory council must not participate
in the consideration of an application submitted by anyone with whom the member has a
financial or personal relationship and must complete a conflict of interest form indicating
the nature of such a relationship before participating in the consideration of any applicants
in the same round of applications to that grant program.
new text end