1.1                          A bill for an act 
  1.2             relating to employment; modifying state dislocated 
  1.3             worker program provisions; amending Minnesota Statutes 
  1.4             2002, sections 116L.01, subdivision 1; 116L.05, 
  1.5             subdivision 4; 116L.17, subdivisions 1, 4, 5, 6; 
  1.6             Minnesota Statutes 2003 Supplement, section 116L.17, 
  1.7             subdivisions 2, 3; proposing coding for new law in 
  1.8             Minnesota Statutes, chapter 116L; repealing Minnesota 
  1.9             Statutes 2002, section 116L.17, subdivision 7. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2002, section 116L.01, 
  1.12  subdivision 1, is amended to read: 
  1.13     Subdivision 1.  [GENERALLY.] For the purposes of ~~this~~ 
  1.14  ~~chapter~~ sections 116L.01 to 116L.17, the terms defined in this 
  1.15  section have the meanings given them. 
  1.16     Sec. 2.  Minnesota Statutes 2002, section 116L.05, 
  1.17  subdivision 4, is amended to read: 
  1.18     Subd. 4.  [LEGISLATIVE RECOMMENDATIONS.] By January 15 of 
  1.19  each odd-numbered year, the board must submit recommendations to 
  1.20  the house and senate committees with jurisdiction over workforce 
  1.21  development programs, regarding modifications to, or elimination 
  1.22  of, existing workforce development programs under the board's 
  1.23  oversight and the potential implementation of new programs.  The 
  1.24  recommendations must include recommendations regarding funding 
  1.25  levels and sources. 
  1.26     Sec. 3.  Minnesota Statutes 2002, section 116L.17, 
  1.27  subdivision 1, is amended to read: 
  2.1      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  2.2   section, the following terms have the meanings given them in 
  2.3   this subdivision. 
  2.4      (b) "Commissioner" means the commissioner of employment and 
  2.5   economic development. 
  2.6      (c) "Dislocated worker" means an individual who is a 
  2.7   resident of Minnesota at the time employment ceased or was 
  2.8   working in the state at the time employment ceased and: 
  2.9      (1) has been ~~terminated~~ permanently separated or has 
  2.10  received a notice of ~~termination~~ permanent separation from 
  2.11  public or private sector employment~~,~~ and is eligible for or has 
  2.12  exhausted entitlement to unemployment benefits, and is unlikely 
  2.13  to return to the previous industry or occupation; 
  2.14     (2) ~~has been terminated or has received a notice of~~ 
  2.15  ~~termination of employment as a result of any plant closing or~~ 
  2.16  ~~any substantial layoff at a plant, facility, or enterprise;~~ 
  2.17     ~~(3)~~ has been long-term unemployed and has limited 
  2.18  opportunities for employment or reemployment in the same or a 
  2.19  similar occupation in the area in which the individual resides, 
  2.20  including older individuals who may have substantial barriers to 
  2.21  employment by reason of age; 
  2.22     ~~(4)~~ (3) has been self-employed, including farmers and 
  2.23  ranchers, and is unemployed as a result of general economic 
  2.24  conditions in the community in which the individual resides or 
  2.25  because of natural disasters~~, subject to rules to be adopted by~~ 
  2.26  ~~the commissioner~~; or 
  2.27     ~~(5) has been self-employed as a farmer or rancher and, even~~ 
  2.28  ~~though that employment has not ceased, has experienced a~~ 
  2.29  ~~significant reduction in income due to inadequate crop or~~ 
  2.30  ~~livestock prices, crop failures, or significant loss in crop~~ 
  2.31  ~~yields due to pests, disease, adverse weather, or other natural~~ 
  2.32  ~~phenomenon.  This clause expires July 31, 2003; or~~ 
  2.33     ~~(6)~~ (4) is a displaced homemaker.  A "displaced homemaker" 
  2.34  is an individual who has spent a substantial number of years in 
  2.35  the home providing homemaking service and (i) has been dependent 
  2.36  upon the financial support of another; and now due to divorce, 
  3.1   separation, death, or disability of that person, must find 
  3.2   employment to self support; or (ii) derived the substantial 
  3.3   share of support from public assistance on account of dependents 
  3.4   in the home and no longer receives such support. 
  3.5      To be eligible under this clause, the support must have 
  3.6   ceased while the worker resided in Minnesota.  
  3.7      ~~(c)~~ (d) "Eligible organization" means a state or local 
  3.8   government unit, nonprofit organization, community action 
  3.9   agency, business organization or association, or labor 
  3.10  organization. 
  3.11     ~~(d)~~ (e) "Plant closing" means the announced or actual 
  3.12  permanent shutdown of a single site of employment, or one or 
  3.13  more facilities or operating units within a single site of 
  3.14  employment. 
  3.15     ~~(e)~~ (f) "Substantial layoff" means a permanent reduction in 
  3.16  the workforce, which is not a result of a plant closing, and 
  3.17  which results in an employment loss at a single site of 
  3.18  employment during any 30-day period for at least 50 employees 
  3.19  excluding those employees that work less than 20 hours per week. 
  3.20     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  3.21  116L.17, subdivision 2, is amended to read: 
  3.22     Subd. 2.  [GRANTS.] The board shall make grants to 
  3.23  workforce service areas or other eligible organizations to 
  3.24  provide services to dislocated workers~~.~~ as follows: 
  3.25     (a) The board shall allocate funds available for the 
  3.26  purposes of this section in its discretion to respond to ~~large~~ 
  3.27  substantial layoffs and plant closings.  
  3.28     (b) The board shall regularly allocate funds to provide 
  3.29  services to individual dislocated workers or small groups.  
  3.30  The initial allocation for this purpose must be ~~at least 35~~ 
  3.31  ~~percent and no more than~~ 50 percent of the ~~actual collections,~~ 
  3.32  ~~including penalty and interest accounts, interest, and other~~ 
  3.33  ~~earnings of the workforce development fund during the period for~~ 
  3.34  ~~which the allocation is made~~ deposits and transfers into the 
  3.35  workforce development fund, less any collection costs paid out 
  3.36  of the fund and any amounts appropriated by the legislature from 
  4.1   the workforce development fund for programs other than the state 
  4.2   dislocated worker program.  ~~The board shall consider the need~~ 
  4.3   ~~for services to individual workers and workers in small layoffs~~ 
  4.4   ~~in comparison to those in large layoffs relative to the needs in~~ 
  4.5   ~~previous years when making this allocation.~~ 
  4.6      (c) Following the initial allocation, the board may 
  4.7   consider additional allocations to provide services to 
  4.8   individual dislocated workers.  The board's decision to allocate 
  4.9   additional funds shall be based on relevant economic indicators 
  4.10  including:  the number of substantial layoffs to date, notices 
  4.11  of substantial layoffs for the remainder of the fiscal year, 
  4.12  evidence of declining industries, the number of permanently 
  4.13  separated individuals applying for unemployment benefits by 
  4.14  workforce service area, and the number of individuals exhausting 
  4.15  unemployment benefits by workforce service area.  The board must 
  4.16  also consider expenditures of allocations to workforce service 
  4.17  areas under paragraph (b) made during the first two quarters of 
  4.18  the fiscal year and federal resources that have been or are 
  4.19  likely to be allocated to Minnesota for the purposes of serving 
  4.20  dislocated workers affected by substantial layoffs or plant 
  4.21  closings. 
  4.22     (d) The board may, in its discretion, allocate funds 
  4.23  carried forward from previous years under subdivision 9 for 
  4.24  large, small, or individual layoffs. 
  4.25     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  4.26  116L.17, subdivision 3, is amended to read: 
  4.27     Subd. 3.  [ALLOCATION OF FUNDS.] The board, in consultation 
  4.28  with local workforce ~~councils~~ investment boards and local 
  4.29  elected officials, shall develop a method of distributing funds 
  4.30  to provide services for dislocated workers who are dislocated as 
  4.31  a result of small or individual layoffs.  The ~~board~~ method shall 
  4.32  ~~consider current requests for services and the likelihood of~~ 
  4.33  ~~future layoffs when making this allocation.  The board shall~~ 
  4.34  ~~consider factors for determining the allocation amounts that~~ 
  4.35  ~~include, but are not limited to, the previous year's obligations~~ 
  4.36  ~~and projected layoffs.  After the first quarter of the program~~ 
  5.1   ~~year, the board shall evaluate the obligations by workforce~~ 
  5.2   ~~service areas for the purpose of reallocating funds to workforce~~ 
  5.3   ~~service areas with increased demand for services.  Periodically~~ 
  5.4   ~~throughout the program year, the board shall consider making~~ 
  5.5   ~~additional allocations to the workforce service areas with a~~ 
  5.6   ~~demonstrated need for increased funding.  The board shall make~~ 
  5.7   ~~an initial determination regarding allocations under this~~ 
  5.8   ~~subdivision by July 15, 2001, and in subsequent years shall make~~ 
  5.9   ~~a determination by June 15~~ reflect recent trends in the number 
  5.10  of permanently separated individuals applying for unemployment 
  5.11  benefits in a given workforce service area.  The board shall 
  5.12  evaluate and adjust obligations quarterly, based on a similar 
  5.13  method. 
  5.14     Sec. 6.  Minnesota Statutes 2002, section 116L.17, 
  5.15  subdivision 4, is amended to read: 
  5.16     Subd. 4.  [USE OF FUNDS.] Funds granted by the board under 
  5.17  this section may be used for any combination of the following, 
  5.18  except as otherwise provided in this section: 
  5.19     (1) employment transition services such as developing 
  5.20  readjustment plans for individuals; outreach and intake; early 
  5.21  readjustment; job or career counseling; testing; orientation; 
  5.22  assessment of skills and aptitudes; provision of occupational 
  5.23  and labor market information; job placement assistance; job 
  5.24  search; job development; prelayoff assistance; relocation 
  5.25  assistance; and programs provided in cooperation with employers 
  5.26  or labor organizations to provide early intervention in the 
  5.27  event of plant closings or substantial layoffs; 
  5.28     (2) ~~services that will allow the participant to become~~ 
  5.29  ~~reemployed by retraining for a new occupation or industry,~~ 
  5.30  ~~enhancing current skills, or relocating to employ existing~~ 
  5.31  ~~skills, including classroom training; occupational skill~~ 
  5.32  ~~training; on-the-job training; out-of-area job search;~~ 
  5.33  ~~relocation; basic and remedial education; literacy and English~~ 
  5.34  ~~for training non-English speakers; entrepreneurial training; and~~ 
  5.35  ~~other appropriate training activities directly related to~~ 
  5.36  ~~appropriate employment opportunities in the local labor market;~~ 
  6.1   ~~and~~ 
  6.2      ~~(3)~~ support services, including assistance to help the 
  6.3   participant relocate to employ existing skills; out-of-area job 
  6.4   search assistance; family care assistance, including child care; 
  6.5   commuting assistance; emergency housing and rental assistance; 
  6.6   counseling assistance, including personal and financial; health 
  6.7   care; emergency health assistance; emergency financial 
  6.8   assistance; work-related tools and clothing; and other 
  6.9   appropriate support services that enable a person to participate 
  6.10  in an employment and training program~~.~~ with the goal of 
  6.11  reemployment; 
  6.12     (3) specific, short-term training to help the participant 
  6.13  enhance current skills in a similar occupation or industry; 
  6.14  entrepreneurial training, customized training, or on-the-job 
  6.15  training; basic and remedial education to enhance current 
  6.16  skills; and literacy and work-related English training for 
  6.17  non-English speakers; and 
  6.18     (4) long-term training in a new occupation or industry, 
  6.19  including occupational skills training or customized training in 
  6.20  an accredited program recognized by one or more relevant 
  6.21  industries.  Long-term training shall only be provided to 
  6.22  dislocated workers whose skills are obsolete and who have no 
  6.23  other transferable skills likely to result in employment at a 
  6.24  comparable wage rate.  Training shall only be provided for 
  6.25  occupations or industries with reasonable expectations of job 
  6.26  availability based on the service provider's thorough assessment 
  6.27  of local labor market information where the individual currently 
  6.28  resides or is willing to relocate. 
  6.29     Sec. 7.  Minnesota Statutes 2002, section 116L.17, 
  6.30  subdivision 5, is amended to read: 
  6.31     Subd. 5.  [COST LIMITATIONS.] (a) Funds allocated to a 
  6.32  grantee are subject to the following cost limitations: 
  6.33     (1) no more than ten percent may be allocated for 
  6.34  administration; 
  6.35     (2) at least 50 percent must be allocated for training 
  6.36  assistance as provided in subdivision 4, clause ~~(2)~~ (4); and 
  7.1      (3) no more than 15 percent may be allocated for support 
  7.2   services as provided in subdivision 4, clause ~~(3)~~ (2). 
  7.3      (b) A waiver of the training assistance minimum in clause 
  7.4   ~~(2)~~ (4) may be sought, but no waiver shall allow less than 30 
  7.5   percent of the grant to be spent on training assistance.  A 
  7.6   waiver of the support services maximum in clause ~~(3)~~ (2) may be 
  7.7   sought, but no waiver shall allow more than 20 percent of the 
  7.8   grant to be spent on support services.  A waiver may be granted 
  7.9   below the minimum and above the maximum otherwise allowed by 
  7.10  this paragraph if funds other than state funds appropriated for 
  7.11  the dislocated worker program are used to fund training 
  7.12  assistance. 
  7.13     Sec. 8.  Minnesota Statutes 2002, section 116L.17, 
  7.14  subdivision 6, is amended to read: 
  7.15     Subd. 6.  [PERFORMANCE STANDARDS.] ~~(a) The board, in~~ 
  7.16  ~~consultation with representatives of local workforce councils~~ 
  7.17  ~~and local elected officials, shall establish performance~~ 
  7.18  ~~standards for the programs and activities administered or funded~~ 
  7.19  ~~under this section.  The board may use, when appropriate,~~ 
  7.20  ~~existing federal performance standards or, if the commissioner~~ 
  7.21  ~~determines that federal standards are inadequate or not~~ 
  7.22  ~~suitable, may formulate new performance standards to ensure that~~ 
  7.23  ~~the programs and activities of the dislocated worker program are~~ 
  7.24  ~~effectively administered.~~ 
  7.25     ~~(b) The board shall, at a minimum, establish performance~~ 
  7.26  ~~standards that appropriately gauge the program's effectiveness~~ 
  7.27  ~~at placing dislocated workers in employment, replacing lost~~ 
  7.28  ~~income resulting from dislocation, early intervention with~~ 
  7.29  ~~workers shortly after dislocation, and retraining of workers~~ 
  7.30  ~~from one industry or occupation to another.~~ (a) The 
  7.31  commissioner, in consultation with the board, shall enter into 
  7.32  contracts with local workforce investment boards, including the 
  7.33  allocations determined by the board in subdivision 3.  Contracts 
  7.34  shall also require local workforce investment boards to report 
  7.35  participant data to the commissioner regularly, in order to meet 
  7.36  the requirements of this subdivision.  The commissioner shall 
  8.1   also enter into contracts with eligible organizations involved 
  8.2   with substantial layoffs or plant closings.  These contracts 
  8.3   shall require the eligible organizations to report participant 
  8.4   data to the commissioner regularly, in order to meet the 
  8.5   requirements of this subdivision. 
  8.6      (b) The commissioner and the board shall jointly establish 
  8.7   performance outcome measures for all local workforce investment 
  8.8   boards and eligible organizations involved with substantial 
  8.9   layoffs or plant closings.  The commissioner may request 
  8.10  additional information to calculate these performance measures. 
  8.11     (c) The commissioner and the board in consultation with 
  8.12  local workforce investment boards and eligible organizations 
  8.13  involved with substantial layoffs or plant closings, shall 
  8.14  establish minimum standards for the performance measures 
  8.15  described in paragraph (b). 
  8.16     (d) Local workforce investment boards may establish and 
  8.17  report on additional performance outcomes based on unique 
  8.18  features of local labor markets and other geographic differences.
  8.19     (e) The commissioner shall provide a report to the 
  8.20  legislature by March 1 of each year on the previous fiscal 
  8.21  year's program performance using the data in paragraphs (b) and 
  8.22  (d) and analysis of whether local workforce investment boards 
  8.23  and eligible organizations involved with substantial layoffs or 
  8.24  plant closings are meeting the minimum standards described in 
  8.25  paragraph (c).  The commissioner shall inform any local 
  8.26  workforce investment board or eligible organization that does 
  8.27  not meet minimum performance standards in a given year of their 
  8.28  status. 
  8.29     Sec. 9.  [116L.19] [DEFINITIONS.] 
  8.30     Subdivision 1.  [APPLICABILITY.] The definitions in this 
  8.31  section apply to sections 116L.19 to 116L.976. 
  8.32     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
  8.33  commissioner of employment and economic development. 
  8.34     Subd. 3.  [DEPARTMENT.] "Department" means the Department 
  8.35  of Employment and Economic Development.  
  8.36     Sec. 10.  [REPEALER.] 
  9.1      Minnesota Statutes 2002, section 116L.17, subdivision 7, is 
  9.2   repealed.