1.1                          A bill for an act 
  1.2             relating to employment; providing for the 
  1.3             administration of workforce development programs; 
  1.4             changing the composition for the job skills 
  1.5             partnership board; requiring performance standards and 
  1.6             reporting; creating a governor's workforce development 
  1.7             council executive committee; appropriating money; 
  1.8             reorganizing state government provision of employment, 
  1.9             training and related services; amending Minnesota 
  1.10            Statutes 2000, sections 116L.02; 116L.03; 116L.04, by 
  1.11            adding a subdivision; 116L.05, by adding a 
  1.12            subdivision; 268.022, subdivision 2; 268.085, by 
  1.13            adding a subdivision; 268.665, by adding subdivisions; 
  1.14            268.666, by adding a subdivision; proposing coding for 
  1.15            new law in Minnesota Statutes, chapter 116J. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1
  1.18            WORKFORCE DEVELOPMENT PROGRAM ADMINISTRATION
  1.19     Section 1.  Minnesota Statutes 2000, section 116L.02, is 
  1.20  amended to read: 
  1.21     116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 
  1.22     (a) The Minnesota job skills partnership program is created 
  1.23  to act as a catalyst to bring together employers with specific 
  1.24  training needs with educational or other nonprofit institutions 
  1.25  which can design programs to fill those needs.  The partnership 
  1.26  shall work closely with employers to train and place workers in 
  1.27  identifiable positions as well as assisting educational or other 
  1.28  nonprofit institutions in developing training programs that 
  1.29  coincide with current and future employer requirements.  The 
  1.30  partnership shall provide grants to educational or other 
  2.1   nonprofit institutions for the purpose of training displaced 
  2.2   workers.  A participating business must match the grant-in-aid 
  2.3   made by the Minnesota job skills partnership.  The match may be 
  2.4   in the form of funding, equipment, or faculty. 
  2.5      (b) The partnership program shall administer the health 
  2.6   care and human services worker training and retention program 
  2.7   under sections 116L.10 to 116L.15. 
  2.8      (c) The partnership board created in section 116L.03 is the 
  2.9   lead state agency for workforce policy and program development 
  2.10  and coordination. 
  2.11     Sec. 2.  Minnesota Statutes 2000, section 116L.03, is 
  2.12  amended to read: 
  2.13     116L.03 [BOARD.] 
  2.14     Subdivision 1.  [MEMBERS.] The partnership shall be 
  2.15  governed by a board of 12 13 directors.  
  2.16     Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
  2.17  partnership board consists of:  nine seven members appointed by 
  2.18  the governor, the chair of the governor's workforce development 
  2.19  council, the commissioner of trade and economic development, the 
  2.20  commissioner of economic security, and the chancellor, or the 
  2.21  chancellor's designee, of the Minnesota state colleges and 
  2.22  universities, the president, or the president's designee, of the 
  2.23  University of Minnesota, and two nonlegislator members, one 
  2.24  appointed by the subcommittee on committees of the senate 
  2.25  committee on rules and administration and one appointed by the 
  2.26  speaker of the house.  If the chancellor or the president of the 
  2.27  university makes a designation under this subdivision, the 
  2.28  designee must have experience in technical education.  Two Four 
  2.29  of the appointed members must be representatives members of the 
  2.30  governor's workforce development council, two who must represent 
  2.31  from organized labor and two who must represent business and 
  2.32  industry.  One of the appointed members must be a representative 
  2.33  of a nonprofit organization that provides workforce development 
  2.34  or job training services. 
  2.35     Subd. 3.  [QUALIFICATIONS.] Members must have expertise in, 
  2.36  and be representative of the following fields of education, job 
  3.1   skills training, labor, business, and government.  
  3.2      Subd. 4.  [CHAIR.] The chair shall be appointed by the 
  3.3   governor the chair of the governor's workforce development 
  3.4   council.  
  3.5      Subd. 5.  [TERMS.] The terms of appointed members shall be 
  3.6   for four years except for the initial appointments.  The initial 
  3.7   appointments of the governor shall have the following terms:  
  3.8   two members each for one, two, three, and four years.  
  3.9   Compensation for board members is as provided in section 
  3.10  15.0575, subdivision 3. 
  3.11     Subd. 7.  [OFFICES.] The board may hire an executive 
  3.12  director and staff to carry out its duties.  The board shall 
  3.13  have its own offices and may contract with the department of 
  3.14  trade and economic development for administrative services.  The 
  3.15  department of trade and economic development shall 
  3.16  provide additional staff and administrative services for at the 
  3.17  request of the board.  
  3.18     Subd. 8.  [EXECUTIVE DIRECTOR.] The executive director 
  3.19  shall administer and coordinate the state's workforce 
  3.20  development activities.  The executive director shall hire staff 
  3.21  to conduct workforce policy development, research, and program 
  3.22  evaluations. 
  3.23     Sec. 3.  Minnesota Statutes 2000, section 116L.04, is 
  3.24  amended by adding a subdivision to read: 
  3.25     Subd. 4.  [PERFORMANCE STANDARDS AND REPORTING.] The board 
  3.26  must by January 15, 2002, develop performance standards for 
  3.27  workforce development and job training programs receiving state 
  3.28  funding.  The standards may vary across program types.  The 
  3.29  board may contract with a consultant to develop the performance 
  3.30  standards.  The board must consult with stakeholder advocacy 
  3.31  groups, nonprofit service providers, and local workforce 
  3.32  councils in the development of both performance standards and 
  3.33  reporting requirements.  The adult standards must at a minimum 
  3.34  measure: 
  3.35     (1) the employability levels of individuals as defined by 
  3.36  basic skill level, the amount of work experience, and barriers 
  4.1   to employment prior to program entry; 
  4.2      (2) the individual's annual income and employability level 
  4.3   for the 12 months prior to entering the program, the starting 
  4.4   annual income upon placement after completing the program, and 
  4.5   employability level and annual income one year after completion 
  4.6   of the program, and the individual's reported satisfaction; 
  4.7      (3) the programs's completion rate, placement rate, 
  4.8   employability level upon placement, and one-year retention rate; 
  4.9   and 
  4.10     (4) the governmental cost per placement and per job 
  4.11  retained at one year and the percentage of program funding 
  4.12  coming from the state and other levels of government. 
  4.13  After January 15, 2002, all workforce development programs 
  4.14  receiving state funds must submit an annual performance report 
  4.15  to the board.  The board may develop a uniform format for the 
  4.16  report and prescribe the manner in which the report is required 
  4.17  to be submitted.  
  4.18     Sec. 4.  Minnesota Statutes 2000, section 116L.05, is 
  4.19  amended by adding a subdivision to read: 
  4.20     Subd. 4.  [ANNUAL LEGISLATIVE RECOMMENDATIONS.] The board 
  4.21  must by January 15 of each year submit recommendations to the 
  4.22  house and senate committees with jurisdiction over workforce 
  4.23  development programs, regarding modifications to, or elimination 
  4.24  of, existing workforce development programs and the potential 
  4.25  implementation of new programs.  The recommendations must 
  4.26  include recommendations regarding funding levels and sources.  
  4.27     Sec. 5.  Minnesota Statutes 2000, section 268.022, 
  4.28  subdivision 2, is amended to read: 
  4.29     Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
  4.30  The money collected under this section shall be deposited in the 
  4.31  state treasury and credited to the workforce development fund to 
  4.32  provide for employment and training programs.  The workforce 
  4.33  development fund is created as a special account in the state 
  4.34  treasury. 
  4.35     (b) All money in the fund not otherwise appropriated or 
  4.36  transferred is appropriated to the commissioner who must act as 
  5.1   the fiscal agent for the money and must disburse that money for 
  5.2   the purposes of this section, not allowing the money to be used 
  5.3   for any other obligation of the state.  All money in the 
  5.4   workforce development fund shall be deposited, administered, and 
  5.5   disbursed in the same manner and under the same conditions and 
  5.6   requirements as are provided by law for the other special 
  5.7   accounts in the state treasury, except that all interest or net 
  5.8   income resulting from the investment or deposit of money in the 
  5.9   fund shall accrue to the fund for the purposes of the fund. 
  5.10     (c) No more than five percent of the funds collected in 
  5.11  each fiscal year may be used by the department of economic 
  5.12  security for its administrative costs. 
  5.13     (d) Reimbursement for costs related to collection of the 
  5.14  special assessment shall be in an amount negotiated between the 
  5.15  commissioner and the United States Department of Labor. 
  5.16     (e) The funds appropriated to the commissioner, less 
  5.17  amounts under paragraphs (c) and (d) shall be allocated as 
  5.18  follows:  
  5.19     (1) 40 percent to be allocated annually to substate 
  5.20  grantees for provision of expeditious response activities under 
  5.21  section 268.9771 and worker adjustment services under section 
  5.22  268.9781; and 
  5.23     (2) 60 percent to be allocated to the job skills 
  5.24  partnership board for activities and programs authorized 
  5.25  under chapter 116L and sections 268.975 to 268.98. 
  5.26     (f) Any funds not allocated, obligated, or expended in a 
  5.27  fiscal year shall be available for allocation, obligation, and 
  5.28  expenditure in the following fiscal year. 
  5.29     Sec. 6.  Minnesota Statutes 2000, section 268.085, is 
  5.30  amended by adding a subdivision to read: 
  5.31     Subd. 1a.  [TRAINING SERVICES.] The commissioner must 
  5.32  provide an applicant who is not job attached and is receiving 
  5.33  benefits notice of and opportunity for employment and training 
  5.34  services through a Minnesota workforce center. 
  5.35     "Job attached" means the applicant is either employed, on a 
  5.36  leave of absence, or on temporary or seasonal layoff from 
  6.1   employment due to lack of work. 
  6.2      Sec. 7.  Minnesota Statutes 2000, section 268.665, is 
  6.3   amended by adding a subdivision to read: 
  6.4      Subd. 2a.  [EXECUTIVE COMMITTEE.] An executive committee of 
  6.5   the governor's workforce development council is created.  The 
  6.6   executive committee consists of the council chair, two council 
  6.7   members representing organized labor, two council members 
  6.8   representing business and industry, one council member 
  6.9   representing a community-based organization, and one council 
  6.10  member representing higher educational institutions.  Executive 
  6.11  committee members are appointed by the governor.  
  6.12     Sec. 8.  Minnesota Statutes 2000, section 268.665, is 
  6.13  amended by adding a subdivision to read: 
  6.14     Subd. 3a.  [EXECUTIVE COMMITTEE DUTIES.] The executive 
  6.15  committee must develop performance standards for the state 
  6.16  workforce centers.  The executive committee shall by January 15, 
  6.17  2002, and each year thereafter, submit an annual report to the 
  6.18  senate and house committees with jurisdiction over workforce 
  6.19  development programs, regarding the performance and outcomes of 
  6.20  the workforce centers.  The report must provide recommendations 
  6.21  regarding workforce center funding levels and sources, program 
  6.22  changes, and administrative changes.  
  6.23     Sec. 9.  Minnesota Statutes 2000, section 268.666, is 
  6.24  amended by adding a subdivision to read: 
  6.25     Subd. 6.  [ADVANCED EMPLOYMENT AND TRAINING.] Local 
  6.26  workforce centers shall establish an advanced reemployment 
  6.27  program to monitor and contact underemployed individuals and 
  6.28  inform them of advanced placement and training opportunities.  
  6.29     Sec. 10.  [WORKFORCE CENTERS STRATEGIC PLAN.] 
  6.30     The executive committee of the governor's workforce 
  6.31  development council shall develop a strategic plan regarding the 
  6.32  appropriate placement and number of workforce centers within the 
  6.33  state.  The executive committee must consult with local 
  6.34  workforce boards when determining the placement and number of 
  6.35  workforce centers in their area.  The plan must recognize the 
  6.36  differing employment needs of various regions, the workforce 
  7.1   population within proximity of a center, and the potential for 
  7.2   colocation of the workforce centers with available educational 
  7.3   institutions.  The executive committee shall by January 15, 
  7.4   2002, submit the plan and recommendations for closure or 
  7.5   consolidation of workforce centers to the senate and house 
  7.6   committees with jurisdiction over workforce development programs.
  7.7      Sec. 11.  [TRAINING PILOT PROJECT.] 
  7.8      The Minnesota job skills partnership board shall pilot the 
  7.9   use of funds to pay for training in job skills partnership 
  7.10  training programs on behalf of low-income individuals.  The 
  7.11  board shall grant funds to applicant employment service 
  7.12  providers to use to pay for training for individuals who are 
  7.13  training-ready and have incomes below 200 percent of the federal 
  7.14  poverty guidelines. 
  7.15     Eligible employment services providers can include 
  7.16  workforce centers, nonprofit providers, educational 
  7.17  institutions, and entities that provide employment services 
  7.18  under the federal Workforce Investment Act, the Minnesota family 
  7.19  investment program, the food stamp employment and training 
  7.20  program, or the federal Welfare-to-Work program. 
  7.21     Sec. 12.  [APPROPRIATIONS.] 
  7.22     Subdivision 1.  [JOB SKILLS PARTNERSHIP BOARD.] $....... is 
  7.23  appropriated from the general fund to the job skills partnership 
  7.24  board for the 2002-2003 biennium for the purposes of sections 2 
  7.25  and 3.  $3,000,000 is appropriated from the general fund to the 
  7.26  job skills partnership board for the training pilot program in 
  7.27  section 11. 
  7.28     Subd. 2.  [WORKFORCE DEVELOPMENT COUNCIL.] $....... is 
  7.29  appropriated from the general fund to the governor's workforce 
  7.30  development council for the 2002-2003 biennium to develop 
  7.31  workforce centers performance standards and a strategic plan. 
  7.32                             ARTICLE 2
  7.33                     STATE AGENCY RESTRUCTURING
  7.34     Section 1.  [STATE AGENCY RESTRUCTURING.] 
  7.35     The department of labor and industry and the department of 
  7.36  economic security are abolished.  The department of trade and 
  8.1   economic development is renamed the department of economic and 
  8.2   workforce development.  The new department of employment 
  8.3   services is created.  
  8.4      Sec. 2.  [TRANSFER OF RESPONSIBILITIES; DEPARTMENT OF 
  8.5   ECONOMIC SECURITY.] 
  8.6      Subdivision 1.  [TO DEPARTMENT OF ECONOMIC AND WORKFORCE 
  8.7   DEVELOPMENT.] The responsibilities of the department of economic 
  8.8   security performed by its workforce services unit for employment 
  8.9   transition services, youth services, welfare-to-work services, 
  8.10  and workforce exchange services are transferred to the 
  8.11  department of economic and workforce development.  The 
  8.12  responsibility of the workforce assistance unit of the 
  8.13  department of economic security for unemployment insurance 
  8.14  call-in centers is transferred to the department of economic and 
  8.15  workforce development.  
  8.16     Subd. 2.  [TO EMPLOYMENT SERVICES.] The responsibilities of 
  8.17  the workforce rehabilitation services unit of the department of 
  8.18  economic security for vocational rehabilitation, independent 
  8.19  living, and extended employment programs are transferred to the 
  8.20  department of employment services.  The responsibility for the 
  8.21  programs of the workforce services for the blind unit of the 
  8.22  department of economic security is transferred to the department 
  8.23  of employment services.  The responsibility of the workforce 
  8.24  wage assistance unit of the department of economic security for 
  8.25  disability determination is transferred to the department of 
  8.26  employment services.  
  8.27     Subd. 3.  [TO DEPARTMENT OF REVENUE.] The responsibility of 
  8.28  the workforce assistance unit of the department of economic 
  8.29  security for unemployment insurance collection is transferred to 
  8.30  the department of revenue.  
  8.31     Subd. 4.  [TO DEPARTMENT OF COMMERCE.] The responsibility 
  8.32  for energy programs of the department of economic security is 
  8.33  transferred to the department of commerce. 
  8.34     Sec. 3.  [TRANSFER OF RESPONSIBILITIES; DEPARTMENT OF LABOR 
  8.35  AND INDUSTRY.] 
  8.36     Subdivision 1.  [TO ECONOMIC AND WORKFORCE 
  9.1   DEVELOPMENT.] The responsibility of the department of labor and 
  9.2   industry for apprenticeship programs is transferred to the 
  9.3   department of economic and workforce development. 
  9.4      Subd. 2.  [TO EMPLOYMENT SERVICES.] The responsibilities of 
  9.5   the department of labor and industry's workers' compensation 
  9.6   division are transferred to the department of employment 
  9.7   services.  
  9.8      Subd. 3.  [TO DEPARTMENT OF COMMERCE.] The responsibility 
  9.9   of the department of labor and industry's workplace services 
  9.10  division is transferred to the department of commerce. 
  9.11     Sec. 4.  [ORGANIZATION OF ECONOMIC AND WORKFORCE 
  9.12  DEVELOPMENT DEPARTMENT.] 
  9.13     The department of economic and workforce development shall 
  9.14  have a division of economic development consisting of business 
  9.15  and community development, the Minnesota trade office, tourism 
  9.16  division, information and analysis division, and administrative 
  9.17  support.  The job skills partnership program shall be housed in 
  9.18  the department and shall have a policy, research, and evaluation 
  9.19  unit.  The department shall provide targeted-worker services to 
  9.20  include the dislocated worker program, adult services formerly 
  9.21  located within the department of economic security, youth 
  9.22  services formerly located in the department of economic 
  9.23  security, and welfare-to-work services formerly located in the 
  9.24  department of economic security.  The department shall have a 
  9.25  unit providing special programs under a workforce transition 
  9.26  services unit.  The department shall administer the workforce 
  9.27  centers, the unemployment insurance call-in centers, and jobs 
  9.28  services through the former department of economic security 
  9.29  workforce exchange programs. 
  9.30     Sec. 5.  [TRANSITION TEAM.] 
  9.31     Subdivision 1.  [CREATION.] A reorganization transition 
  9.32  team is created.  The team shall make recommendations to the 
  9.33  governor and the legislature by November 1, 2001, on: 
  9.34     (1) statutory amendments necessary to implement sections 1 
  9.35  to 3; 
  9.36     (2) changes to the structure of state departments that 
 10.1   would result in a more efficient and effective delivery of 
 10.2   workforce development programs; 
 10.3      (3) the appropriate programs to transfer to local workforce 
 10.4   boards, including those programs under the Workforce Investment 
 10.5   Act, United States Code, title 29; 
 10.6      (4) statutory and administrative changes necessary to 
 10.7   strengthen the oversight and management responsibilities of 
 10.8   local workforce boards and local elected officials to ensure the 
 10.9   efficient operation of the workforce center system and to ensure 
 10.10  better coordination of service delivery at the community level; 
 10.11     (5) the transfer of workforce development related programs 
 10.12  from other state agencies; 
 10.13     (6) program modifications necessary to ensure coordination 
 10.14  between the workforce development system and the employment and 
 10.15  training programs administered by the department of human 
 10.16  services; 
 10.17     (7) procedures for promoting greater coordination and 
 10.18  cooperation among local workforce development agencies, local 
 10.19  economic development agencies, and higher education 
 10.20  institutions; 
 10.21     (8) methods for decreasing administrative costs at the 
 10.22  state agency level for the purpose of redirecting funding to 
 10.23  support the delivery of services at the community level; and 
 10.24     (9) other recommendations to complete the reorganization of 
 10.25  state departments contained in this article.  
 10.26     Subd. 2.  [TRANSITION TEAM COMPOSITION.] The transition 
 10.27  team shall consist of nine members appointed as follows: 
 10.28     (1) three members appointed by the governor of which one 
 10.29  shall be designated as chair of the transition team; 
 10.30     (2) three members appointed by the speaker of the house of 
 10.31  representatives, one of whom must be a member of the minority 
 10.32  party; and 
 10.33     (3) three members appointed by the subcommittee on 
 10.34  committees of the committee on rules and administration of the 
 10.35  senate, one of whom must be a member of the minority party.  
 10.36     The transition team must solicit input from all interested 
 11.1   groups on how to best implement the reorganization of state 
 11.2   departments contained in this article and develop the 
 11.3   recommendations required in subdivision 1.  
 11.4      Sec. 6.  [EFFECTIVE DATE.] 
 11.5      Sections 1 to 4 are effective July 1, 2002.  Section 5 is 
 11.6   effective July 1, 2001. 
 11.7                              ARTICLE 3
 11.8                   RESULTS ORIENTED TRAINING GRANTS
 11.9      Section 1.  [116J.996] [JOB TRAINING GRANT.] 
 11.10     Subdivision 1.  [GRANTS ALLOWED.] (a) Job training program 
 11.11  grants may be paid to employers equal to the sum of: 
 11.12     (1) placement fees paid to a job training program upon 
 11.13  hiring a qualified graduate of the program; and 
 11.14     (2) retention fees paid to a job training program for 
 11.15  retention of a qualified graduate of the program. 
 11.16     (b) The maximum placement fee qualifying for a grant under 
 11.17  this section is $8,000 per qualified graduate in the year 
 11.18  hired.  The maximum retention fee qualifying for aid under this 
 11.19  section is $6,000 per qualified graduate retained as an employee 
 11.20  per year.  Only retention fees paid in the second and third 
 11.21  years after the qualified graduate is hired qualify for a grant. 
 11.22     (c) Grants are allowed only up to the dollar amount of 
 11.23  credit certificates issued under subdivision 7 and provided by 
 11.24  the job training program to the employer. 
 11.25     Subd. 2.  [QUALIFIED JOB TRAINING PROGRAM.] (a) To qualify 
 11.26  for credit certificates under this section, a job training 
 11.27  program must satisfy the requirements in paragraphs (b) to (h). 
 11.28     (b) The program must be operated by a nonprofit corporation 
 11.29  that qualifies under section 501(c)(3) of the Internal Revenue 
 11.30  Code, an educational institution, or a local government. 
 11.31     (c) The nonprofit corporation must spend at least $5,000 
 11.32  per graduate of the program. 
 11.33     (d) The program must provide education and training in: 
 11.34     (1) basic skills, such as reading, writing, mathematics, 
 11.35  and communications; 
 11.36     (2) thinking skills, such as reasoning, creative thinking, 
 12.1   decision-making, and problem-solving; and 
 12.2      (3) personal qualities, such as responsibility, 
 12.3   self-esteem, self-management, honesty, and integrity. 
 12.4      (e) The program must provide income supplements, as 
 12.5   determined by the program, to participants for counseling, 
 12.6   tuition, and other basic needs. 
 12.7      (f) The education and training course must last for at 
 12.8   least four months. 
 12.9      (g) Individuals served by the program must: 
 12.10     (1) be 18 years of age or older; 
 12.11     (2) have had in either of the last two years adjusted gross 
 12.12  income of no more than the maximum income of a low-income 
 12.13  family, as defined for purposes of public housing in United 
 12.14  States Code, title 42, section 1437a(b), for a single 
 12.15  individual; and 
 12.16     (3) have assets of no more than the asset limit under 
 12.17  subdivision 4, excluding the value of a homestead. 
 12.18     (h) The program must charge placement and retention fees 
 12.19  that cumulatively exceed the amount of credit certificates 
 12.20  provided to the employer by at least 15 percent. 
 12.21     Subd. 3.  [APPROVAL.] A program must be approved by the 
 12.22  commissioner of trade and economic development as meeting the 
 12.23  requirements of subdivision 2.  
 12.24     Subd. 4.  [ASSET LIMIT.] The asset limit for a program is 
 12.25  $10,000 for the year beginning July 1, 2001.  For each 
 12.26  succeeding year, the asset limit must be indexed for inflation 
 12.27  under the following formula: 
 12.28     $10,000 x (1 plus ((ci-bi)/bi)), where ci equals the 
 12.29  maximum income for a low-income family as defined in subdivision 
 12.30  2, paragraph (g), clause (2), for a single individual for the 
 12.31  immediately preceding calendar year and where bi equals the same 
 12.32  maximum income measure for fiscal year 2002. 
 12.33     Subd. 5.  [QUALIFIED GRADUATE.] A qualified graduate is a 
 12.34  graduate of a job training program approved under subdivision 3, 
 12.35  who is placed in a job in Minnesota that pays at least $9 per 
 12.36  hour or its equivalent.  An employer, other than the employer 
 13.1   that originally hired the graduate, may pay a retention fee for 
 13.2   the graduate and qualify for the grant.  The annualized wages of 
 13.3   the job must exceed by 25 percent or more the graduate's 
 13.4   earnings in the year preceding the graduate's enrollment in the 
 13.5   job training program.  
 13.6      Subd. 6.  [DUTIES OF PROGRAM.] (a) A program approved by 
 13.7   the commissioner under subdivision 3 must comply with the 
 13.8   requirements of this subdivision. 
 13.9      (b) The program must maintain records for each graduate for 
 13.10  which the program provides a credit certificate to an employer.  
 13.11  These records must include information sufficient to verify a 
 13.12  graduate's eligibility under this section, identify the 
 13.13  employer, describe the job including its compensation rate and 
 13.14  benefits, and determine the amount of placement and retention 
 13.15  fees received.  
 13.16     (c) Each program must report to the commissioner by 
 13.17  February 1 of each year on its use of the certificates.  Each 
 13.18  report must include, at least, information on:  
 13.19     (1) the number of graduates placed; 
 13.20     (2) demographic information on the graduates; 
 13.21     (3) the types of positions in which each graduate is 
 13.22  placed, including compensation information; 
 13.23     (4) the tenure of each graduate at the placed position or 
 13.24  in other jobs; 
 13.25     (5) the amount of employer fees paid to the program; 
 13.26     (6) the amount of money raised by the program from other 
 13.27  sources; and 
 13.28     (7) the types and sizes of employers with which graduates 
 13.29  have been placed and retained. 
 13.30     (d) The commissioner shall compile and summarize this 
 13.31  information and report to the legislature by February 15 each 
 13.32  year. 
 13.33     Subd. 7.  [ISSUANCE OF CREDIT CERTIFICATES.] (a) The 
 13.34  commissioner shall issue credit certificates to an approved 
 13.35  program in an amount determined by the commissioner.  The 
 13.36  program shall then issue certificates, to the extent available, 
 14.1   to a qualified employer who may redeem them for the amounts 
 14.2   described in subdivision 1, paragraphs (a) and (b).  Unused 
 14.3   credit certificates for a calendar year carry over and may be 
 14.4   used for a later calendar year, regardless of when issued, 
 14.5   including certificates issued under section 290.0673 prior to 
 14.6   the expiration of that section. 
 14.7      (b) The grants authorized by this section must not be 
 14.8   reduced to an amount less than that necessary to fund credit 
 14.9   certificates equal to the maximum placement and retention fees 
 14.10  that would qualify for a grant under this section if, at the 
 14.11  time of the reduction, each participant enrolled in each 
 14.12  approved job training program became a qualified graduate within 
 14.13  48 months of the effective date of the reduction.  
 14.14     Subd. 8.  [APPLICATION.] To obtain a job training grant, an 
 14.15  employer shall apply to the commissioner in a manner prescribed 
 14.16  by the commissioner.  The commissioner shall review the 
 14.17  application and credit certificates provided, and if the 
 14.18  commissioner finds that the criteria specified in this section 
 14.19  have been met, the commissioner shall distribute the grant money 
 14.20  within 45 days of receipt of the application in compliance with 
 14.21  this section. 
 14.22     Sec. 2.  [APPROPRIATION.] 
 14.23     $1,867,000 is appropriated from the general fund to the 
 14.24  commissioner of trade and economic development for the biennium 
 14.25  ending June 30, 2003, for the purposes of Minnesota Statutes, 
 14.26  section 116J.996.  This appropriation does not cancel.