1.1                          A bill for an act
  1.2             relating to economic security; modifying allocation of 
  1.3             workforce investment funds; amending Minnesota 
  1.4             Statutes 1994, section 268.022, subdivision 2. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 268.022, 
  1.7   subdivision 2, is amended to read: 
  1.8      Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
  1.9   The money collected under this section shall be deposited in the 
  1.10  state treasury and credited to a dedicated fund to provide for 
  1.11  the employment and training programs established under sections 
  1.12  268.975 to 268.98; including vocational guidance, training, 
  1.13  placement, and job development. 
  1.14     (b) All money in the dedicated fund is appropriated to the 
  1.15  commissioner who must act as the fiscal agent for the money and 
  1.16  must disburse the money for the purposes of this section, not 
  1.17  allowing the money to be used for any other obligation of the 
  1.18  state.  All money in the dedicated fund shall be deposited, 
  1.19  administered, and disbursed in the same manner and under the 
  1.20  same conditions and requirements as are provided by law for the 
  1.21  other dedicated funds in the state treasury, except that all 
  1.22  interest or net income resulting from the investment or deposit 
  1.23  of money in the fund shall accrue to the fund for the purposes 
  1.24  of the fund. 
  1.25     (c) No more than five percent of the dedicated funds 
  2.1   collected in each fiscal year may be used by the department of 
  2.2   economic security for its administrative costs. 
  2.3      (d) Reimbursement for costs related to collection of the 
  2.4   special assessment shall be in an amount negotiated between the 
  2.5   commissioner and the United States Department of Labor. 
  2.6      (e) The dedicated funds, less amounts under paragraphs (c) 
  2.7   and (d) shall be allocated as follows:  
  2.8      (1) 40 percent to be allocated annually to substate 
  2.9   grantees for provision of expeditious response activities under 
  2.10  section 268.9771 and worker adjustment services under section 
  2.11  268.9781; and 
  2.12     (2) 60 45 percent to be allocated to activities and 
  2.13  programs authorized under sections 268.975 to 268.98; and 
  2.14     (3) 15 percent to be allocated and equally distributed to 
  2.15  the existing authorized nonsubstate grantees, pursuant to 
  2.16  section 268.9781, subdivision 2, at the beginning of each 
  2.17  program year. 
  2.18     (f) Any funds not allocated, obligated, or expended in a 
  2.19  fiscal year shall be available for allocation, obligation, and 
  2.20  expenditure in the following fiscal year.