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HF 1704

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/13/2023 01:07pm

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; establishing a southwestern Minnesota
workforce development scholarship pilot program; requiring a report; appropriating
money.

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

Section 1. new text begin SOUTHWESTERN MINNESOTA WORKFORCE DEVELOPMENT
SCHOLARSHIP PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For 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) "Southwest Initiative Foundation" or "foundation" means a nonprofit organization
which provides services to the following counties in southwest Minnesota: Big Stone,
Chippewa, Cottonwood, Jackson, Kandiyohi, Lac qui Parle, Lincoln, Lyon, McLeod, Meeker,
Murray, Nobles, Pipestone, Redwood, Renville, Rock, Swift, and Yellow Medicine, and
the Lower Sioux Indian Community and Upper Sioux Community.
new text end

new text begin (d) "Employer sponsored applicant" means a student applicant with a local employer
scholarship equal to or greater than 25 percent of the workforce development scholarship.
new text end

new text begin (e) "Eligible student" means a student applicant who:
new text end

new text begin (1) is eligible for resident or nonresident tuition;
new text end

new text begin (2) is enrolling in an eligible program as determined by the regional workforce
development board; and
new text end

new text begin (3) is enrolling at least half-time at a Minnesota West college listed in subdivision 4.
new text end

new text begin (f) "Local employer" means an employer with a physical location in a county within the
service area of the foundation listed in paragraph (c).
new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin The commissioner shall establish a southwestern
Minnesota workforce development scholarship pilot program administered by the foundation
to assist in meeting the workforce challenges in southwest Minnesota and enhance long-term
economic self-sufficiency by connecting students, higher education facilities, employers,
and communities.
new text end

new text begin Subd. 3. new text end

new text begin Grant to the Southwest Initiative Foundation. new text end

new text begin The commissioner shall award
all grant funds to the foundation, which shall administer the southwestern Minnesota
workforce development scholarship pilot program. The foundation may use up to seven
percent of grant funds for administrative costs.
new text end

new text begin Subd. 4. new text end

new text begin Scholarship awards. new text end

new text begin (a) The foundation shall coordinate available funds and
award scholarships to the following Minnesota West colleges:
new text end

new text begin (1) Canby;
new text end

new text begin (2) Granite Falls;
new text end

new text begin (3) Pipestone;
new text end

new text begin (4) Worthington;
new text end

new text begin (5) Jackson;
new text end

new text begin (6) Luverne; and
new text end

new text begin (7) Marshall.
new text end

new text begin (b) Scholarships shall be coordinated by the individual colleges listed in paragraph (a)
and applied only after all other available grant funding through a last-dollar-in model.
new text end

new text begin (c) In awarding grants, priority shall first be given to applicants that are program
continuing applicants. Priority shall then be given to employer-sponsored applicants.
new text end

new text begin (d) Scholarships are intended to supplement all other grant opportunities and to cover
the full cost of attendance to the eligible students.
new text end

new text begin Subd. 5. new text end

new text begin Program eligibility. new text end

new text begin Scholarships shall be awarded to eligible students who
are enrolled in or enrolling in a high demand occupation associate degree, diploma, or
certificate or industry-recognized credential program as defined annually by the applicable
regional workforce development board. Students must complete the Free Application for
Federal Student Aid if applicable to the program to which they are applying.
new text end

new text begin Subd. 6. new text end

new text begin Renewal; cap. new text end

new text begin A student who has been awarded a scholarship may apply in
subsequent academic years, but total lifetime awards are not to exceed two full scholarships
per student. Students may only be awarded a second scholarship upon successful completion
of the program and subsequent work period requirement.
new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin (a) The foundation and Minnesota West colleges shall establish
an application process and other guidelines for implementing the pilot program.
new text end

new text begin (b) Each college shall receive from their respective workforce development board by
December 1 of each year, commencing in 2022, a list of eligible programs administered by
the college that are eligible for subsequent year scholarships. The applicable workforce
development board must consider data based on a workforce shortage for full-time
employment requiring postsecondary education that is unique to the specific region, as
reported in the most recent Department of Employment and Economic Development job
vacancy survey data for the economic development region in which the college is located.
A workforce shortage area is one in which the job vacancy rate for full-time employment
in a specific occupation in a region is higher than the state average vacancy rate for that
same occupation.
new text end

new text begin Subd. 8. new text end

new text begin Scholarship recipient requirements. new text end

new text begin (a) A recipient of a scholarship awarded
under the program established in this section shall:
new text end

new text begin (1) be enrolled in a high demand occupation associate degree, diploma, or certificate or
industry-recognized credential program as defined by the regional workforce development
board and offered by a Minnesota West college;
new text end

new text begin (2) adhere to any applicable participating local employer program requirements;
new text end

new text begin (3) commit to three years of full-time employment with:
new text end

new text begin (i) a sponsoring local employer; or
new text end

new text begin (ii) any qualified local employer within the high demand occupations as defined by the
regional workforce development board; and
new text end

new text begin (4) fulfill the three-year full-time employment commitment in a county within the service
area of the foundation as listed in subdivision 1, paragraph (c).
new text end

new text begin (b) If a recipient of a scholarship fails to fulfill the requirements of paragraph (a), the
foundation may convert the scholarship to a loan. Amounts repaid from a loan shall be used
to fund scholarship awards under this section.
new text end

new text begin Subd. 9. new text end

new text begin Employer partnerships. new text end

new text begin The foundation and Minnesota West colleges shall
establish partnerships with qualified local employers and work to ensure that a percentage
of the state funds appropriated to each college for the southwestern Minnesota workforce
development scholarship program are equally matched with employer funds.
new text end

new text begin Subd. 10. new text end

new text begin Local employer scholarships tax credit. new text end

new text begin (a) A local employer is allowed a
credit against the tax due under Minnesota Statutes, chapter 290, equal to the amount of the
local employer's scholarship awarded to an employer-sponsored applicant.
new text end

new text begin (b) The credit allowed to a local employer under this subdivision per scholarship awarded
to an employer-sponsored applicant for a taxable year is limited to the lesser of the following
amounts:
new text end

new text begin (1) $.......; or
new text end

new text begin (2) the total amount of the local employer's scholarship awarded to an employer sponsored
applicant.
new text end

new text begin Subd. 11. new text end

new text begin Report required. new text end

new text begin The foundation must submit an annual report by December
31 of each year regarding the scholarship program to the chairs and ranking minority
members of the legislative committees with jurisdiction over employment and economic
development policy. The first report is due no later than December 31, 2023. The annual
report shall describe the following:
new text end

new text begin (1) the number of students receiving a scholarship at each participating college during
the previous calendar year;
new text end

new text begin (2) the number of scholarships awarded for each program and definition of type of
program during the previous calendar year;
new text end

new text begin (3) the number of scholarship recipients who completed a program of study or
certification;
new text end

new text begin (4) the number of scholarship recipients who secured employment by their graduation
date and those who secured employment within three months of their graduation date;
new text end

new text begin (5) a list of the colleges that received funding, the amount of funding each institution
received, and whether all withheld funds were distributed;
new text end

new text begin (6) a list of occupations scholarship recipients are entering;
new text end

new text begin (7) the number of students who were denied a scholarship;
new text end

new text begin (8) a list of participating local employers and amounts of any applicable employer
contributions; and
new text end

new text begin (9) a list of recommendations to the legislature regarding potential program improvements.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $700,000 in fiscal year 2024 is appropriated from the workforce development fund to
the commissioner of employment and economic development for a grant to the Southwest
Initiative Foundation for the southwestern Minnesota workforce development scholarship
pilot program in subdivision 1. This is a onetime appropriation and is available until June
30, 2028.
new text end