HF 1702

as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2015 03:22pm

A bill for an act
relating to workforce development; modifying the extended employment
program for persons with disabilities; amending Minnesota Statutes 2014,
sections 268A.01, subdivisions 6, 10, 13, by adding subdivisions; 268A.03;
268A.06; 268A.07; 268A.085; 268A.15, subdivisions 1, 2, 3, 4, 5, 6, 7; repealing
Minnesota Statutes 2014, sections 268A.01, subdivisions 9, 14; 268A.15,
subdivisions 1a, 3a, 9.

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

Section 1.

Minnesota Statutes 2014, section 268A.01, subdivision 6, is amended to read:

Subd. 6.

new text begin Community new text end rehabilitation deleted text begin facility deleted text end new text begin provider new text end .

" new text begin Community new text end rehabilitation
deleted text begin facility deleted text end new text begin provider new text end " means an entity which meets the definition of community rehabilitation
program in the federal Rehabilitation Act of 1973, as amended. However, for the
purposes of sections 268A.03, clause (1), 268A.06, new text begin 268A.085, new text end and 268A.15, new text begin community
new text end rehabilitation deleted text begin facility deleted text end new text begin provider new text end means deleted text begin an deleted text end new text begin a nonprofit or public new text end entity deleted text begin which is operated for
the primary purpose of providing or facilitating employment for persons with a severe
disability deleted text end new text begin that provides at least one extended employment subprogram for persons with
the most significant disabilities new text end .

Sec. 2.

Minnesota Statutes 2014, section 268A.01, subdivision 10, is amended to read:

Subd. 10.

Extended employment program.

"Extended employment program"
means the deleted text begin center-based deleted text end new text begin noncompetitive new text end employment and supported employment
subprograms.

Sec. 3.

Minnesota Statutes 2014, section 268A.01, subdivision 13, is amended to read:

Subd. 13.

Supported employment.

(a) "Supported employment" means
new text begin competitive integrated new text end employment of a person with a disability so severe that the person
needs ongoing training and support to get and keep a job in which:

(1) the person engages in deleted text begin paid deleted text end work deleted text begin in a position removed from the service vendor's
site where individuals without disabilities who do not require public subsidies also may be
employed; deleted text end new text begin that is performed on a full-time or part-time basis, including self-employment,
for which an individual is compensated at a rate that is not less than the higher rate
specified in the Fair Labor Standards Act of 1938, United States Code, title 29, section 206,
subsection (a)(1), or the rate specified in the applicable state or local minimum wage law;
new text end

new text begin (2)(i) is not less than the customary rate paid by the employer for the same or similar
work performed by other employees who are not individuals with disabilities and who
are similarly situated in similar occupations by the same employer who have similar
training, experience, and skills; or
new text end

new text begin (ii) in the case of an individual who is self-employed, yields an income that is
comparable to the income received by other individuals who are not individuals with
disabilities and who are self-employed in similar occupations or on similar tasks and who
have similar training, experience, and skills;
new text end

new text begin (3) is eligible for the level of benefits provided to other employees;
new text end

new text begin (4) is at a location where the employee interacts with other persons who are not
individuals with disabilities, not including supervisory personnel or individuals who
are providing services to the employee, to the same extent that individuals who are not
individuals with disabilities, and who are in comparable positions, interact with other
persons;
new text end

new text begin (5) as appropriate, presents opportunities for advancement that are similar to those
for other employees who are not individuals with disabilities and who have similar
positions; and
new text end

deleted text begin (2) deleted text end new text begin (6) new text end public funds are necessary to provide ongoing training and support services
throughout the period of the person's employment deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (3) the person has the opportunity for social interaction with individuals who do not
have disabilities and who are not paid caregivers.
deleted text end

deleted text begin (b) If the commissioner has certified a rehabilitation facility setting as integrated,
then employment at that site may be considered supported employment.
deleted text end

Sec. 4.

Minnesota Statutes 2014, section 268A.01, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Noncompetitive employment. new text end

new text begin "Noncompetitive employment" means
paid work that is performed:
new text end

new text begin (1) on a full-time or part-time basis, including self-employment, for which an
individual is compensated at a rate that is less than the higher rate specified in the Fair
Labor Standards Act of 1938, United States Code, title 29, section 206, subsection (a)(1),
or the rate specified in the applicable state or local minimum wage law; and
new text end

new text begin (2) (i) is not less than the customary rate paid by the employer for the same or
similar work performed by other employees who are not individuals with disabilities and
who are similarly situated in similar occupations by the same employer and who have
similar training, experience, and skills; or
new text end

new text begin (ii) is performed at a location where the employee does not interact with other
persons who are not individuals with disabilities, not including supervisory personnel or
individuals who are providing services to the employee, to the same extent that individuals
who are not individuals with disabilities and who are in comparable positions interact
with other persons.
new text end

Sec. 5.

Minnesota Statutes 2014, section 268A.01, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Noncompetitive employment subprogram. new text end

new text begin "Noncompetitive
employment subprogram" means work and services for persons with a significant
disability who are opposed to working in an integrated setting in the mainstream
labor market and who, because of the nature and severity of the disabilities, require
intensive ongoing employment support services. Services provided must include: (1)
person-centered planning according to national best practice standards of the Commission
on Accreditation of Rehabilitation Facilities (CARF); and (2) an annual informed
choice process that assess an individual's appropriateness and desire for competitive
employment based on the person's needs, abilities, and interests, as adopted in rules by the
commissioner of employment and economic development.
new text end

Sec. 6.

Minnesota Statutes 2014, section 268A.01, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Special minimum wage. new text end

new text begin "Special minimum wage" means a wage paid to
a worker with a disability that is commensurate with that worker's individual productivity
as compared to the wage and productivity of experienced workers who do not have
disabilities performing the same type, quality, and quantity of work in the vicinity where
the worker with a disability is employed. The commensurate wage is below that required
by the Fair Labor Standards Act of 1938, section 64(a). Before a special minimum wage
rate may be paid, the employer must obtain a certificate as required by the Fair Labor
Standards Act of 1938, section 14(c).
new text end

Sec. 7.

Minnesota Statutes 2014, section 268A.01, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin Informed choice. new text end

new text begin "Informed choice" means a voluntary decision made
by a prospective or current person served in a noncompetitive employment subprogram, or
that person's legal representative, after a reasonable and objective assessment process.
The assessment process steps shall:
new text end

new text begin (1) identify the individual's needs;
new text end

new text begin (2) consider whether individuals with similar needs are working and receiving
services in integrated employment settings with appropriate supports;
new text end

new text begin (3) identify the supports and services necessary for the individual to succeed in an
integrated setting;
new text end

new text begin (4) provide the individual with sufficient relevant written and verbal information
about the benefits of employment in integrated settings, at an appropriate comprehension
level and in a manner consistent with the appropriate mode of communication and primary
language used by the individual or that person's legal representative;
new text end

new text begin (5) facilitate visits and other experiences in integrated employment settings;
new text end

new text begin (6) offer the individual opportunities to meet with other individuals with disabilities
who are working and receiving services in integrated employment settings;
new text end

new text begin (7) offer the individual's family, if appropriate, opportunities to meet with families of
other individuals with disabilities who are working and receiving services in integrated
settings;
new text end

new text begin (8) offer the individual opportunities to meet with other service providers who are
supporting individuals with disabilities in integrated employment settings;
new text end

new text begin (9) identify the objections and concerns expressed by the individual and family
members, if applicable;
new text end

new text begin (10) identify remedies to address the individual's and family members' objections
and concerns; and
new text end

new text begin (11) ask the individual if they are opposed to working in an integrated setting and,
if not opposed, initiate the referral process, internally or externally, for competitive
employment with ongoing employment support services.
new text end

Sec. 8.

Minnesota Statutes 2014, section 268A.01, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Integrated setting. new text end

new text begin "Integrated setting" means a setting that:
new text end

new text begin (1) provides individuals with disabilities opportunities to work and receive services
in the greater community similar to individuals without disabilities;
new text end

new text begin (2) is located in mainstream society;
new text end

new text begin (3) offers access to community activities and opportunities at times, frequencies, and
with persons of an individual's choosing;
new text end

new text begin (4) affords individuals with disabilities choice in their daily life activities; and
new text end

new text begin (5) provides individuals with disabilities the opportunity to interact with nondisabled
persons who are not paid caregivers to the fullest extent possible based on the typical
interactions of the type of job.
new text end

Sec. 9.

Minnesota Statutes 2014, section 268A.01, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Segregated setting. new text end

new text begin "Segregated setting" means:
new text end

new text begin (1) congregate settings populated exclusively or primarily by individuals with
disabilities;
new text end

new text begin (2) congregate settings characterized by regimentation in activities, lack privacy or
autonomy, policies limiting visitors, or limits on individuals' ability to engage freely in
community activities and manage their own activities of daily living;
new text end

new text begin (3) settings that provide for daytime activities primarily with other individuals
with disabilities;
new text end

new text begin (4) other settings where individuals with disabilities are assembled into a collective
or work group, or constitute more than 50 percent of the direct labor force; or
new text end

new text begin (5) employment settings where individuals with disabilities contribute more than 50
percent of the direct labor to the production of goods or services for government contracts,
such as contracts authorized by the Javits-Wagner-O'Day Act mandating that qualifying
organizations must receive at least 75 percent of their direct labor from individuals who
are blind or have the most significant disabilities. No extended employment worker shall
work in a segregated setting before the results of the informed choice process determine
that the individual is inappropriate for integrated employment or the individual opposes
work in an integrated setting. The informed choice process shall be conducted yearly
prior to developing the individual's annual extended employment support plan or more
frequently as changes occur in the work's circumstances.
new text end

Sec. 10.

Minnesota Statutes 2014, section 268A.03, is amended to read:

268A.03 POWERS AND DUTIES.

The commissioner shall:

(1) certify the new text begin community new text end rehabilitation deleted text begin facilities deleted text end new text begin providers new text end to offer extended
employment programs, grant funds to the extended employment programs, and perform
the duties as specified in section 268A.15;

(2) provide vocational rehabilitation services to persons with disabilities in
accordance with the federal Rehabilitation Act of 1973, Public Law 93-112, as amended.
Persons with a disability are entitled to free choice of vendor for any medical, dental,
prosthetic, or orthotic services provided under this paragraph;

(3) expend funds and provide technical assistance for the establishment,
improvement, maintenance, or extension of public and other nonprofit rehabilitation
facilities or centers;

(4) maintain a contractual or regulatory relationship with the United States as
authorized by the Social Security Act, as amended. Under this relationship, the state will
undertake to make determinations referred to in those public laws with respect to all
individuals in Minnesota, or with respect to a class or classes of individuals in this state that
is designated in the agreement at the state's request. It is the purpose of this relationship to
permit the citizens of this state to obtain all benefits available under federal law;

(5) provide an in-service training program for rehabilitation services employees by
paying for its direct costs with state and federal funds;

(6) conduct research and demonstration projects; provide training and instruction,
including establishment and maintenance of research fellowships and traineeships, along
with all necessary stipends and allowances; disseminate information to persons with a
disability and the general public; and provide technical assistance relating to vocational
rehabilitation and independent living;

(7) receive and disburse pursuant to law money and gifts available from
governmental and private sources including, but not limited to, the federal Department
of Education and the Social Security Administration, for the purpose of vocational
rehabilitation or independent living;

(8) design all state plans for vocational rehabilitation or independent living services
required as a condition to the receipt and disbursement of any money available from
the federal government;

(9) cooperate with other public or private agencies or organizations for the purpose
of vocational rehabilitation or independent living. Money received from school districts,
governmental subdivisions, mental health centers or boards, and private nonprofit
organizations is appropriated to the commissioner for conducting joint or cooperative
vocational rehabilitation or independent living programs;

(10) enter into contractual arrangements with instrumentalities of federal, state, or
local government and with private individuals, organizations, agencies, or facilities with
respect to providing vocational rehabilitation or independent living services;

(11) take other actions required by state and federal legislation relating to vocational
rehabilitation, independent living, and disability determination programs;

(12) hire staff and arrange services and facilities necessary to perform the duties
and powers specified in this section; and

(13) adopt, amend, suspend, or repeal rules necessary to implement or make
specific programs that the commissioner by sections 268A.01 to 268A.15 is empowered
to administer.

Sec. 11.

Minnesota Statutes 2014, section 268A.06, is amended to read:

268A.06 new text begin COMMUNITY new text end REHABILITATION deleted text begin FACILITIES deleted text end new text begin PROVIDERS new text end .

Subdivision 1.

Application.

Any city, town, county, nonprofit corporation,
deleted text begin regional treatment center, deleted text end or any combination thereof, may apply to the commissioner for
assistance in establishing or operating deleted text begin a community rehabilitation facility deleted text end new text begin an extended
employment program new text end . Application for assistance must be on forms prescribed by the
commissioner. deleted text begin An applicant is not eligible for a grant under this section unless its audited
financial statements of the prior fiscal year have been approved by the commissioner.
deleted text end

Subd. 2.

Funding.

In order to provide the necessary funds for extended employment
programs offered by a new text begin community new text end rehabilitation deleted text begin facility deleted text end new text begin provider new text end , the governing body of
any city, town, or county may expend money which may be available for such purposes in
the general fund, and may levy a tax on the taxable property in the city, town, or county. Any
city, town, county, or nonprofit corporation may accept gifts or grants from any source for
the deleted text begin rehabilitation facility deleted text end new text begin extended employment program new text end . Any money appropriated, taxed,
or received as a gift or grant may be used to match funds available on a matching basis.

Sec. 12.

Minnesota Statutes 2014, section 268A.07, is amended to read:

268A.07 REQUIREMENTS FOR CERTIFICATION.

Subdivision 1.

Benefits.

A new text begin community new text end rehabilitation deleted text begin facility deleted text end new text begin provider new text end must, as
a condition for receiving program certification, provide employees in deleted text begin center-based deleted text end
employment with personnel benefits prescribed in rules adopted by the commissioner of
deleted text begin the Department of deleted text end employment and economic development.

Subd. 2.

Grievance procedure.

A new text begin community new text end rehabilitation deleted text begin facility deleted text end new text begin provider new text end must,
as a condition for receiving program certification, provide to employees in deleted text begin center-based deleted text end new text begin
noncompetitive new text end employment subprograms, a grievance procedure which has as its final
step provisions for final and binding arbitration.

new text begin Subd. 3. new text end

new text begin Informed choice. new text end

new text begin A community rehabilitation provider must, as a condition
for receiving program certification, provide employees in a noncompetitive employment
with informed choice as described in administrative rules adopted by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Report on satisfaction and outcomes of extended employment
workers. new text end

new text begin A community rehabilitation provider must, as a condition for receiving program
certification, submit an annual report to the commissioner of the outcomes of workers
served in extended employment during the provider's prior year, including:
new text end

new text begin (1) satisfaction of persons reported in the noncompetitive employment subprogram;
new text end

new text begin (2) satisfaction of persons reported in the competitive employment subprogram;
new text end

new text begin (3) access to competitive employment by persons in noncompetitive employment,
including local labor market information;
new text end

new text begin (4) effectiveness and efficiency measures and results for the noncompetitive
employment subprogram;
new text end

new text begin (5) effectiveness and efficiency measures and results for the competitive employment
subprogram; and
new text end

new text begin (6) plans for quality improvement in the next cycle.
new text end

new text begin Subd. 5. new text end

new text begin Independent audited financial statements. new text end

new text begin A community rehabilitation
provider must, as a condition for receiving program certification, submit its independently
audited financial statements of its prior fiscal year for approval by the commissioner.
new text end

Sec. 13.

Minnesota Statutes 2014, section 268A.085, is amended to read:

268A.085 new text begin COMMUNITY new text end REHABILITATION deleted text begin FACILITY deleted text end new text begin PROVIDER
GOVERNING new text end BOARDS.

Subdivision 1.

Appointment; membership.

Every city, town, county, nonprofit
corporation, or combination thereof establishing deleted text begin a rehabilitation facility deleted text end new text begin an extended
employment program new text end shall appoint a deleted text begin rehabilitation facility deleted text end new text begin governing new text end board of no fewer
than seven voting members before becoming eligible for the assistance provided by
sections 268A.06 to 268A.15. When any city, town, or county singly establishes deleted text begin such a
rehabilitation facility deleted text end new text begin an extended employment program new text end , the new text begin governing new text end board shall be
appointed by the chief executive officer of the city or the chair of the governing board
of the county or town. When any combination of cities, towns, counties, or nonprofit
corporations establishes deleted text begin a rehabilitation facility deleted text end new text begin an extended employment program new text end , the
chief executive officers of the cities, nonprofit corporations, and the chairs of the governing
bodies of the counties or towns shall appoint the board. If a nonprofit corporation singly
establishes deleted text begin a rehabilitation facility deleted text end new text begin an extended employment program new text end , the corporation
shall appoint the board of directors. Membership on a board shall be representative of
the community served and shall include a person with a disability. If a county establishes
an extended employment program and manages the program with county employees, the
governing board shall be the county board of commissioners, and other provisions of this
chapter pertaining to membership on the governing board do not apply.

Subd. 2.

Duties.

Subject to the provisions of sections 268A.06 to 268A.15 and the
rules of the department, each deleted text begin rehabilitation facility deleted text end new text begin governing new text end board shall:

(1) review and evaluate the need for extended employment programs deleted text begin offered by the
rehabilitation facility deleted text end provided under sections 268A.06 to 268A.15;

(2) recruit and promote local financial support for extended employment programs
from private sources including: the United Way; business, industrial, and private
foundations; voluntary agencies; and other lawful sources, and promote public support
for municipal and county appropriations;

(3) promote, arrange, and implement working agreements with other educational
and social service agencies, both public and private, and any other allied agencies; and

(4) when an extended employment program deleted text begin offered by the rehabilitation facility deleted text end is
certified, act as deleted text begin the deleted text end new text begin its new text end administrator deleted text begin of the rehabilitation facility and its programs deleted text end for
purposes of this chapter.

Sec. 14.

Minnesota Statutes 2014, section 268A.15, subdivision 1, is amended to read:

Subdivision 1.

Administration.

The Department of Employment and Economic
Development shall administer this section through new text begin vocational new text end rehabilitation services. The
department may employ staff as required to administer this section and may accept and
receive funds from nonstate sources for the purpose of implementing this section.

Sec. 15.

Minnesota Statutes 2014, section 268A.15, subdivision 2, is amended to read:

Subd. 2.

Program purpose.

deleted text begin The extended employment program shall have two
categories of clients consisting of those with severe disabilities and those with severe
impairment to employment. deleted text end The new text begin primary new text end purpose of the extended employment program
deleted text begin for persons with severe disabilities deleted text end is to provide new text begin residents of Minnesota with the most
significant disabilities with new text end the ongoing new text begin employment support new text end services necessary to
deleted text begin maintain deleted text end new text begin retain new text end and advance deleted text begin the deleted text end new text begin in competitive new text end employment deleted text begin of persons with severe
disabilities. The purpose of the extended employment program for persons with severe
impairment to employment is to provide the ongoing support services necessary to secure,
maintain, and advance in employment. Employment must encompass the broad range of
employment choices available to all persons and promote an individual's self-sufficiency
and financial independence. deleted text end new text begin that is based on the person's needs, abilities, and interests.
Ongoing employment support services to eligible persons who are opposed to competitive
employment may be provided for work compensated under a United States Department
of Labor certificate for a special minimum wage or for work performed in sheltered,
congregate, or segregated settings provided that: (1) sufficient funds have been allocated
for the program's primary purpose; and (2) eligible persons have been provided with an
informed choice of employment options.
new text end

Sec. 16.

Minnesota Statutes 2014, section 268A.15, subdivision 3, is amended to read:

Subd. 3.

Rule authority.

The commissioner shall adopt rules on an individual's
eligibility for the extended employment program, the certification of new text begin community
new text end rehabilitation deleted text begin facilities deleted text end new text begin providers new text end , and the methods, criteria, and units of distribution for
the allocation of state grant funds to certified deleted text begin rehabilitation facilities deleted text end new text begin extended employment
program providers new text end . In determining the allocation, the commissioner must consider the
economic conditions of the community and the performance of new text begin community new text end rehabilitation
deleted text begin facilities deleted text end new text begin providers new text end relative to their impact on the economic status of workers in the
extended employment program.

Sec. 17.

Minnesota Statutes 2014, section 268A.15, subdivision 4, is amended to read:

Subd. 4.

Evaluation.

The commissioner of employment and economic development
shall evaluate the extended employment program to determine whether the purpose of
extended employment as defined in subdivision 2 is being achieved. The evaluation
must include information for the preceding funding year derived from the independent
compliance audits of extended employment service providers submitted to the department
on or before October 31 of each year. deleted text begin The evaluation must include an assessment
of whether workers in the extended employment program are satisfied with their
employment. deleted text end A written report of this evaluation must be prepared at least every two years
and made available to the public.

Sec. 18.

Minnesota Statutes 2014, section 268A.15, subdivision 5, is amended to read:

Subd. 5.

Technical assistance.

The commissioner of employment and economic
development shall provide technical assistance within available resources to new text begin community
new text end rehabilitation deleted text begin facilities deleted text end new text begin providers new text end .

Sec. 19.

Minnesota Statutes 2014, section 268A.15, subdivision 6, is amended to read:

Subd. 6.

Grants.

The commissioner may provide innovation and expansion
grants to new text begin community new text end rehabilitation deleted text begin facilities deleted text end new text begin providers new text end to encourage the development,
demonstration, or dissemination of innovative business practices, training programs,
and service delivery methods that:

(1) expand and improve new text begin competitive new text end employment opportunities for persons with
deleted text begin severe deleted text end new text begin the most significant new text end disabilities deleted text begin or severe impairment to employment deleted text end who are
unserved or underserved by the extended employment program; and

(2) increase the ability of persons with deleted text begin severe deleted text end new text begin the most significant new text end disabilities deleted text begin or
severe impairment to employment deleted text end to use new and emerging technologies in new text begin competitive
new text end employment settings, and foster the capacity of new text begin community new text end rehabilitation deleted text begin facilities deleted text end new text begin
providers new text end and employers to promote the integration of individuals with deleted text begin severe deleted text end new text begin the most
significant new text end disabilities and deleted text begin severe impairment to employment deleted text end into the workplace and the
mainstream of community life.

The grants must require collaboration at the local level among vocational
rehabilitation field offices, county social service and planning agencies, new text begin community
new text end rehabilitation deleted text begin facilities deleted text end new text begin providers new text end , and employers.

Sec. 20.

Minnesota Statutes 2014, section 268A.15, subdivision 7, is amended to read:

Subd. 7.

Withdrawal of funds.

The commissioner may withdraw funds from deleted text begin a
rehabilitation facility deleted text end new text begin an extended employment provider new text end that is not being administered
in accordance with its deleted text begin approved plan and budget deleted text end new text begin extended employment program grant
contract, program rules, or certification requirements new text end unless a deleted text begin modified deleted text end new text begin corrective action new text end
plan deleted text begin and budget deleted text end is submitted to and approved by the commissioner, and implemented
within a reasonable time. deleted text begin The commissioner may withdraw funds from a rehabilitation
facility not being administered according to department rules, or not meeting mandatory
standards for certification, unless a plan bringing the rehabilitation facility into compliance
with the rules and standards is submitted to and approved by the commissioner, and
implemented within a reasonable time. deleted text end Funds withdrawn shall, after reasonable notice
and opportunity for hearing, be reallocated by the commissioner to other deleted text begin rehabilitation
facilities deleted text end new text begin extended employment program providers new text end .

Sec. 21. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 268A.01, subdivisions 9 and 14; and 268A.15,
subdivisions 1a, 3a, and 9, new text end new text begin are repealed.
new text end