HF 1326

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:48am

A bill for an act
relating to workforce development; establishing an emergency employment
development program; providing wage subsidies; appropriating money.

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

Section 1.

new text begin CITATION.
new text end

new text begin Sections 1 to 14 may be cited as the "Minnesota Emergency Employment
Development (MEED) Act of 2009."
new text end

Sec. 2.

new text begin DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purposes of sections 1 to 14, the following terms
have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

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

new text begin Subd. 3. new text end

new text begin Department. new text end

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

new text begin Subd. 4. new text end

new text begin Eligible business. new text end

new text begin "Eligible business" means a for-profit business.
new text end

new text begin Subd. 5. new text end

new text begin Eligible employer. new text end

new text begin "Eligible employer" means an eligible government
agency, an eligible nonprofit agency, or an eligible business.
new text end

new text begin Subd. 6. new text end

new text begin Eligible government agency. new text end

new text begin "Eligible government agency" means a
county, municipality, school district, or other local governmental subdivision, a state
agency, or a federal agency office in Minnesota.
new text end

new text begin Subd. 7. new text end

new text begin Eligible job applicant. new text end

new text begin "Eligible job applicant" means a person who:
new text end

new text begin (1) has been a resident of this state for at least six months;
new text end

new text begin (2) is unemployed;
new text end

new text begin (3) has attempted to secure a nonsubsidized job by completing a comprehensive job
search program administered by a county or workforce service area;
new text end

new text begin (4) is not receiving and is not eligible to receive unemployment compensation or
workers' compensation; and
new text end

new text begin (5) is determined by the employment administrator to be likely to be available for
employment by an eligible employer for the duration of the job.
new text end

new text begin Subd. 8. new text end

new text begin Eligible nonprofit agency. new text end

new text begin "Eligible nonprofit agency" means an
organization exempt from taxation under the Internal Revenue Code of 1986, section
501(c)(3), as amended.
new text end

new text begin Subd. 9. new text end

new text begin Employment administrator. new text end

new text begin "Employment administrator" means the
administrative entity designated by the commissioner to administer the provisions of this
act in each workforce service area.
new text end

new text begin Subd. 10. new text end

new text begin Household. new text end

new text begin "Household" means an individual, the individual's spouse,
and any person considered a dependent under sections 151 and 152 of the Internal
Revenue Code domiciled at the same address.
new text end

new text begin Subd. 11. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota emergency employment
development program created by sections 1 to 14 consisting of temporary employment
projects in the government and nonprofit agencies and new permanent job creation in
the private sector.
new text end

new text begin Subd. 12. new text end

new text begin Workforce service area. new text end

new text begin "Workforce service area" means an area
designated as a workforce service area under section 116L.666.
new text end

Sec. 3.

new text begin DUTIES OF COMMISSIONER.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin The commissioner shall administer the provisions of sections
1 to 14. The commissioner shall:
new text end

new text begin (1) enter into contracts with the workforce service areas within 30 days of enactment;
new text end

new text begin (2) review the emergency employment development plan submitted by the
employment administrator of each workforce service area and approve satisfactory plans.
If an employment administrator submits an unsatisfactory plan, the department shall assist
the employment administrator in developing a satisfactory one;
new text end

new text begin (3) coordinate the program with other state agencies;
new text end

new text begin (4) coordinate administration of the program with the Minnesota family investment
program under Minnesota Statutes, chapter 256J;
new text end

new text begin (5) set policy regarding disbursement of program funds;
new text end

new text begin (6) perform general program marketing and monitoring functions; and
new text end

new text begin (7) apply to the federal government for a waiver allowing Minnesota to use extended
unemployment insurance benefits for wage subsidies and to seek federal funding for
this program.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin The commissioner shall ensure that all eligible employers
and employment administrators comply with sections 1 to 14 and all other applicable state
and federal laws, including those relating to:
new text end

new text begin (1) affirmative action;
new text end

new text begin (2) occupational health and safety standards;
new text end

new text begin (3) environmental standards; and
new text end

new text begin (4) fair labor practices.
new text end

new text begin Subd. 3. new text end

new text begin Report to governor and legislature. new text end

new text begin The commissioner shall report
semiannually to the chairs of the standing committees of the house of representatives
and the senate having jurisdiction over employment and economic development issues
and the governor on:
new text end

new text begin (1) the number of persons employed;
new text end

new text begin (2) the number and type of employers under the program;
new text end

new text begin (3) the amount of money spent in each service delivery area for wages for each type
of employment and each type of other expense;
new text end

new text begin (4) the number of persons who have completed participation in the program and their
current employment, educational, or training status; and
new text end

new text begin (5) any other information deemed pertinent by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Rules. new text end

new text begin The commissioner may adopt rules necessary to implement the
Minnesota emergency employment development program of 2009.
new text end

Sec. 4.

new text begin ALLOCATION OF FUNDS AMONG WORKFORCE SERVICE AREAS.
new text end

new text begin (a) Ninety percent of the funds available for allocation to employment administrators
for the program must be allocated among eligible workforce service areas. Workforce
service areas are eligible to receive that proportion of the funds available which equals
the number of unemployed persons in the workforce service area divided by the total
number of unemployed persons in the state for the 12-month period ending the most
recent March 31.
new text end

new text begin (b) Ten percent of the funds available for allocation to employment administrators
under the program must be allocated at the discretion of the commissioner to employment
administrators:
new text end

new text begin (1) who will maximize the use of the funds through coordination with other
programs and state, local, and federal agencies, through the use of matching funds or
through the involvement of low-income constituent groups;
new text end

new text begin (2) who have demonstrated need beyond the allocation available under paragraph
(a); or
new text end

new text begin (3) who have demonstrated outstanding performance in job creation.
new text end

Sec. 5.

new text begin ALLOCATION WITHIN WORKFORCE SERVICE AREAS;
PRIORITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Among job applicants. new text end

new text begin Allocation of funds among eligible job
applicants within a workforce service area shall be determined by the employment
administrator in each workforce service area. The employment administrator shall give
priority to:
new text end

new text begin (1) applicants living in households with no other income source;
new text end

new text begin (2) applicants who would otherwise be eligible to participate in the Minnesota
family investment program or the diversionary work program; and
new text end

new text begin (3) veterans as defined under Minnesota Statutes, section 196.21, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Among employers. new text end

new text begin The employment administrator within each workforce
service area shall determine allocation of funds among eligible employers within
a workforce service area according to the priorities in section 9. The employment
administrator shall give priority to funding private sector jobs to the extent that eligible
businesses apply for funds. No more than 50 percent of the funds may be allocated for
jobs with eligible government and nonprofit agencies during the biennium.
new text end

Sec. 6.

new text begin USE OF FUNDS.
new text end

new text begin (a) Funds appropriated for the purposes of sections 1 to 14 may be used as follows:
new text end

new text begin (1) to provide a state contribution for wages and fringe benefits for eligible job
applicants for a maximum of 1,040 hours over a maximum period of 26 weeks per job
applicant. For eligible job applicants participating in a job training program, the state
contribution for wages may be used for a maximum period of 26 weeks per job applicant.
The state contribution for wages shall be ....... percent of the wage up to $....... per hour
for each eligible job applicant employed by an eligible business. The state contribution
for wages shall be up to $....... per hour for each eligible job applicant employed by a
nonprofit or government agency. The employer may use funds from other sources to
provide increased wages to the applicants it employs. At least 70 percent of the funds
appropriated for the program must be used to pay wages for eligible job applicants;
new text end

new text begin (2) to reimburse the department in an amount not to exceed one percent of the funds
appropriated for the actual cost of administering sections 1 to 14;
new text end

new text begin (3) to reimburse the employment administrators in an amount not to exceed 14
percent of the funds appropriated for the actual cost of program operations. Of the 14
percent, no more than ten percent may be used for administrative costs for workforce
service areas as defined under the Workforce Investment Act. The commissioner and
the employment administrators shall reallocate funds from other sources to cover the
administrative costs of this program whenever possible;
new text end

new text begin (4) to provide child care services or subsidies to applicants employed under sections
1 to 14;
new text end

new text begin (5) to provide workers' compensation coverage to applicants employed by
government or nonprofit agencies under sections 1 to 14;
new text end

new text begin (6) to provide job search assistance, labor market orientation, job seeking skills,
and referral for other services; and
new text end

new text begin (7) to purchase supplies and materials for projects creating permanent improvements
to public property in an amount not to exceed one percent of the funds appropriated.
new text end

new text begin (b) Any funds allocated to the workforce service area for which there is no spending
plan approved by the commissioner or which are significantly underspent in the reporting
period shall cancel back to the Minnesota emergency employment development account
and must be reallocated by the commissioner to other employment administrators.
new text end

Sec. 7.

new text begin EMPLOYMENT ADMINISTRATORS; POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin The employment administrator for each workforce
service area has the powers and duties given in this section and any additional duties
given by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Employment plan. new text end

new text begin Each employment administrator shall develop an
emergency employment development plan for the workforce service area under guidelines
developed by the commissioner and submit it to the commissioner within the period
allowed by the commissioner. To the extent feasible, the employment administrator shall
seek input from potential eligible employers and the public.
new text end

new text begin Subd. 3. new text end

new text begin Outreach. new text end

new text begin Each employment administrator shall publicize the program
within the workforce service area to seek maximum participation by eligible job applicants
and employers.
new text end

new text begin Subd. 4. new text end

new text begin Contracts. new text end

new text begin Each employment administrator shall enter into contracts with
eligible employers setting forth the terms of their participation in the program as required
by sections 1 to 14.
new text end

new text begin Subd. 5. new text end

new text begin Screening and coordination. new text end

new text begin Each employment administrator shall screen
job applicants and employers to achieve the best possible placement of eligible job
applicants with eligible employers.
new text end

new text begin Subd. 6. new text end

new text begin Eligible job applicant priority lists. new text end

new text begin Each employment administrator
shall maintain a list of eligible job applicants unable to secure employment under the
program at the time of application. The list shall prioritize eligible job applicants pursuant
to section 5, subdivision 1, and shall be used to fill jobs with eligible employers as they
become available.
new text end

new text begin Subd. 7. new text end

new text begin Coordination of education and training programs. new text end

new text begin Each employment
administrator shall cooperate with local educational and training institutions to coordinate
and publicize the availability of their resources to assure that applicants may receive
training needed before or while employed in jobs which are available under the program.
new text end

new text begin Subd. 8. new text end

new text begin Materials. new text end

new text begin Each employment administrator may disburse funds not to
exceed one percent of the amount allocated to the service delivery area for the purchase of
supplies and materials for projects creating permanent improvements to public property.
new text end

Sec. 8.

new text begin ELIGIBLE GOVERNMENT AND NONPROFIT AGENCY
EMPLOYMENT.
new text end

new text begin A government or nonprofit agency is an eligible employer with respect to temporary
employment projects that are determined by the employment administrator to have
long-term benefit to or are needed by the community including, but not limited to, jobs
in permanent public improvement projects, residential or public building weatherization
projects, reforestation projects, mineland reclamation projects, planting or tree trimming
projects, soil conservation projects, natural resource development projects, and community
social service programs such as child care and home health care.
new text end

Sec. 9.

new text begin BUSINESS EMPLOYMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligible businesses. new text end

new text begin A business employer is an eligible employer
if it enters into a written contract with the employment administrator in its workforce
service area containing assurances that:
new text end

new text begin (1) funds received by a business shall be used only as permitted under sections 1
to 14;
new text end

new text begin (2) the business has submitted a plan to the employment administrator:
new text end

new text begin (i) describing the duties and proposed compensation of each employee proposed to
be hired under the program; and
new text end

new text begin (ii) demonstrating that, with the funds provided under sections 1 to 14, the business
is likely to succeed and continue to employ persons hired under the program;
new text end

new text begin (3) the business will use funds exclusively for compensation and fringe benefits of
eligible job applicants and will provide employees hired with these funds with fringe
benefits and other terms and conditions of employment comparable to those provided to
other employees of the business who do comparable work;
new text end

new text begin (4) the funds are necessary to allow the business to begin, or to employ additional
people, but not to fill positions which would be filled even in the absence of funds from
this program;
new text end

new text begin (5) the business will cooperate with the commissioner and the employment
administrator in collecting data to assess the result of the program; and
new text end

new text begin (6) the business is in compliance with all applicable affirmative action, fair labor,
health, safety, and environmental standards.
new text end

new text begin Subd. 2. new text end

new text begin Priorities. new text end

new text begin In allocating funds among eligible businesses, the employment
administrator shall give priority to businesses which best satisfy the following criteria:
new text end

new text begin (1) have a high potential for growth and long-term job creation;
new text end

new text begin (2) are labor intensive;
new text end

new text begin (3) meet the definition of a small business as defined in section 645.445;
new text end

new text begin (4) make high use of local and Minnesota resources;
new text end

new text begin (5) are under ownership of women and minorities;
new text end

new text begin (6) make extensive use of new technology;
new text end

new text begin (7) produce energy conserving materials or services or are involved in development
of renewable sources of energy; and
new text end

new text begin (8) have their primary place of business in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Employer accountability. new text end

new text begin (a) A business receiving funds under this
program is expected to retain employees at least six months beyond the initial six-month
subsidized period. In the event an employer terminates participation in the subsidy
program during the initial six-month subsidy phase for any participant, the employer shall
pay back 20 percent of the subsidies received to date. In the event an employer has not
retained a participant at least 90 days beyond the subsidy phase, the employer shall pay
back 20 percent of the wage subsidies received. In the event a business employer has
retained a participant 180 days beyond the subsidy period, a business employer will be
eligible for a bonus equivalent to $2 per hour for the hours the participant worked during
those 180 days.
new text end

new text begin (b) If an employer dismisses an employee for good cause or the employee chooses to
leave the position and the employer works in good faith with the program administrator
to employ and train another person referred by the employment administrator, the
accountability conditions shall apply as if the original participant had fulfilled the
employment timeline.
new text end

Sec. 10.

new text begin MINNESOTA EMERGENCY EMPLOYMENT DEVELOPMENT
ACCOUNT.
new text end

new text begin The Minnesota emergency employment development account is created in the state
treasury. All payments from businesses under section 9 shall be deposited in this account,
and all funds in the account are appropriated to the commissioner of employment and
economic development for the purpose of making disbursements pursuant to section 6.
new text end

Sec. 11.

new text begin WORKER DISPLACEMENT PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Layoffs; work reductions. new text end

new text begin An eligible employer may not terminate,
lay off, or reduce the working hours of an employee for the purpose of hiring an individual
with funds available under sections 1 to 14.
new text end

new text begin Subd. 2. new text end

new text begin Hiring during layoffs. new text end

new text begin An eligible employer may not hire an individual
with funds available under sections 1 to 14 if any other person has been laid off from the
same or a substantially equivalent job within the previous six months.
new text end

new text begin Subd. 3. new text end

new text begin Employer certification. new text end

new text begin In order to qualify as an eligible employer, a
government or nonprofit agency or business must certify to the employment administrator
that each job created and funded under sections 1 to 14:
new text end

new text begin (1) will result in an increase in employment opportunities over those which would
otherwise be available;
new text end

new text begin (2) will not result in the displacement of currently employed workers, including
partial displacement such as reduction in hours of nonovertime work, wages, or
employment benefits; and
new text end

new text begin (3) will not impair existing contracts for service or result in the substitution of
program funds for other funds in connection with work that would otherwise be performed.
new text end

Sec. 12.

new text begin TERMINATION; NOTIFICATION.
new text end

new text begin (a) On the date the program is terminated, any balance remaining in the Minnesota
emergency employment development account established under section 10 shall cancel
to the general fund. Any payments received under section 10 on or after that date shall
be deposited in the general fund.
new text end

new text begin (b) The commissioner shall immediately terminate the Minnesota emergency
employment development program if and when none of the money appropriated under
section 14 remains.
new text end

Sec. 13.

new text begin SUNSET.
new text end

new text begin Sections 1 to 12 are repealed June 30, 2011.
new text end

Sec. 14. new text begin APPROPRIATION.
new text end

new text begin $120,000,000 is appropriated from the general fund to the commissioner for
deposit in the Minnesota emergency employment development account each year in the
2010-2011 biennium for the Minnesota Emergency Employment Development (MEED)
Act of 2009. Any unexpended balance remaining at the end of the fiscal year does not
cancel and is available until expended.
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 14 are effective the day following final enactment.
new text end