1.1 	A bill for an act
1.2 	relating to economic development; establishing the
1.3 	incumbent worker program; amending Minnesota Statutes
1.4 	2004, sections 116L.05, by adding a subdivision;
1.5 	116L.17, subdivision 1; 116L.20, subdivision 2;
1.6 	proposing coding for new law in Minnesota Statutes,
1.7 	chapter 116L.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 116L.05, is
1.10 	amended by adding a subdivision to read:
1.11 		Subd. 5.Use of workforce development funds. After March
1.12 	1 of any fiscal year, the board may use workforce development
1.13 	funds for the purposes outlined in sections 116L.04, 116L.06,
1.14 	and 116L.10 to 116L.14, or to provide incumbent worker training
1.15 	services under section 116L.18 if the following conditions have
1.16 	been met:
1.17 	(1) the board examines relevant economic indicators,
1.18 	including the projected number of layoffs for the remainder of
1.19 	the fiscal year and the next fiscal year, evidence of declining
1.20 	and expanding industries, the number of initial applications for
1.21 	and the number of exhaustions of unemployment benefits, job
1.22 	vacancy data, and any additional relevant information brought to
1.23 	the board's attention;
1.24 	(2) the board accounts for all allocations made in section
1.25 	116L.17, subdivision 2;
1.26 	(3) based on the past expenditures and projected revenue,
2.1 	the board estimates future funding needs for services under
2.2 	section 116L.17 for the remainder of the current fiscal year and
2.3 	the next fiscal year;
2.4 	(4) the board determines there will be unspent funds after
2.5 	meeting the needs of dislocated workers in the current fiscal
2.6 	year and there will be sufficient revenue to meet the needs of
2.7 	dislocated workers in the next fiscal year; and 
2.8 	(5) the board reports its findings in clauses (1) to (4) to
2.9 	the chairs of legislative committees with jurisdiction over the
2.10 	workforce development fund, to the commissioners of revenue and
2.11 	finance, and to the public.

2.12 	Sec. 2. Minnesota Statutes 2004, section 116L.17,
2.13 	subdivision 1, is amended to read:
2.14 		Subdivision 1.Definitions.  (a) For the purposes of this
2.15 	section, the following terms have the meanings given them in
2.16 	this subdivision.
2.17 	(b) "Commissioner" means the commissioner of employment and
2.18 	economic development.
2.19 	(c) "Dislocated worker" means an individual who is a
2.20 	resident of Minnesota at the time employment ceased or was
2.21 	working in the state at the time employment ceased and:
2.22 	(1) has been permanently separated or has received a notice
2.23 	of permanent separation from public or private sector employment
2.24 	and is eligible for or has exhausted entitlement to unemployment
2.25 	benefits, and is unlikely to return to the previous industry or
2.26 	occupation;
2.27 	(2) has been long-term unemployed and has limited
2.28 	opportunities for employment or reemployment in the same or a
2.29 	similar occupation in the area in which the individual resides,
2.30 	including older individuals who may have substantial barriers to
2.31 	employment by reason of age;
2.32 	(3) has been self-employed, including farmers and ranchers,
2.33 	and is unemployed as a result of general economic conditions in
2.34 	the community in which the individual resides or because of
2.35 	natural disasters; or
2.36 	(4) is a displaced homemaker.  A "displaced homemaker" is
3.1 	an individual who has spent a substantial number of years in the
3.2 	home providing homemaking service and (i) has been dependent
3.3 	upon the financial support of another; and now due to divorce,
3.4 	separation, death, or disability of that person, must find
3.5 	employment to self support; or (ii) derived the substantial
3.6 	share of support from public assistance on account of dependents
3.7 	in the home and no longer receives such support.
3.8 	To be eligible under this clause, the support must have
3.9 	ceased while the worker resided in Minnesota.
3.10 	(d) "Eligible organization" means a state or local
3.11 	government unit, nonprofit organization, community action
3.12 	agency, business organization or association, or labor
3.13 	organization.
3.14 	(e) "Plant closing" means the announced or actual permanent
3.15 	shutdown of a single site of employment, or one or more
3.16 	facilities or operating units within a single site of employment.
3.17 	(f) "Substantial layoff" means a permanent reduction in the
3.18 	workforce, which is not a result of a plant closing, and which
3.19 	results in an employment loss at a single site of employment
3.20 	during any 30-day period for at least 50 employees excluding
3.21 	those employees that work less than 20 hours per week.

3.22 	Sec. 3. [116L.18] SPECIAL INCUMBENT WORKER TRAINING
3.23 	GRANTS.
3.24 		Subdivision 1.Purpose. The purpose of the special
3.25 	incumbent worker training grants is to expand opportunities for
3.26 	businesses and workers to gain new skills that are in demand in
3.27 	the Minnesota economy.  The board shall establish criteria for
3.28 	incumbent worker grants under this section and may encourage
3.29 	creative training models, innovative partnerships, and expansion
3.30 	or replication of promising practices.  Grants may be made from
3.31 	workforce development funds, general fund appropriations, and
3.32 	any other funding sources available to the board, provided the
3.33 	requirements of those funding sources are satisfied.
3.34 		Subd. 2.Definitions. (a) For the purposes of this
3.35 	section, the following terms have the meanings given them.
3.36 	(b) "Incumbent worker" means an individual employed by a
4.1 	qualifying employer.
4.2 	(c) "Qualifying employer" means a for-profit business or
4.3 	nonprofit organization in Minnesota with at least one full-time
4.4 	paid employee.  Public sector organizations are not considered
4.5 	qualifying employers.
4.6 	(d) "Eligible organization" has the meaning given in
4.7 	section 116L.17.
4.8 		Subd. 3.Amount of grants. A grant to an eligible
4.9 	organization may not exceed $400,000.
4.10 		Subd. 4.Matching funds. The board shall require
4.11 	matching funds from qualifying employers in the form of funding,
4.12 	equipment, or faculty.
4.13 		Subd. 5.Use of funds. Eligible organizations shall use
4.14 	funds granted under this section for direct training services to
4.15 	provide a measurable increase in the job-related skills of
4.16 	participating incumbent workers.  Eligible organizations may
4.17 	also provide basic assessment, counseling, and preemployment
4.18 	training services requested by the qualifying employer.  No
4.19 	funds may be used for support services as described in section
4.20 	116L.17, subdivision 4, clause (2).
4.21 		Subd. 6.Performance outcome measures. The board and the
4.22 	commissioner of employment and economic development shall
4.23 	jointly develop performance outcome measures and standards for
4.24 	this program.  The commissioner and board shall consult with
4.25 	eligible organizations in establishing standards.  Measures at a
4.26 	minimum must include posttraining retention, promotion, and wage
4.27 	increase.  The board and commissioner shall provide a report to
4.28 	the legislature by March 1 of each year on the previous fiscal
4.29 	year's program performance.  Eligible organizations must provide
4.30 	performance data in a timely manner for the completion of this
4.31 	report.

4.32 	Sec. 4. Minnesota Statutes 2004, section 116L.20,
4.33 	subdivision 2, is amended to read:
4.34 		Subd. 2.Disbursement of special assessment funds.  (a)
4.35 	The money collected under this section shall be deposited in the
4.36 	state treasury and credited to the workforce development fund to
5.1 	provide for employment and training programs.  The workforce
5.2 	development fund is created as a special account in the state
5.3 	treasury.
5.4 	(b) All money in the fund not otherwise appropriated or
5.5 	transferred is appropriated to the Job Skills Partnership Board
5.6 	for the purposes of section 116L.17and as provided for in
5.7 	paragraph (d).  The board must act as the fiscal agent for the
5.8 	money and must disburse that money for the purposes of section
5.9 	116L.17, not allowing the money to be used for any other
5.10 	obligation of the state.  All money in the workforce development
5.11 	fund shall be deposited, administered, and disbursed in the same
5.12 	manner and under the same conditions and requirements as are
5.13 	provided by law for the other special accounts in the state
5.14 	treasury, except that all interest or net income resulting from
5.15 	the investment or deposit of money in the fund shall accrue to
5.16 	the fund for the purposes of the fund.
5.17 	(c) Reimbursement for costs related to collection of the
5.18 	special assessment shall be in an amount negotiated between the
5.19 	commissioner and the United States Department of Labor.
5.20 	(d) If the board determines that the conditions of section
5.21 	116L.05, subdivision 5, have been met, the board may use funds
5.22 	for the purposes outlined in sections 116L.04, 116L.06, and
5.23 	116L.10 to 116L.14, or to provide incumbent worker training
5.24 	services under section 116L.18.