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HF 551

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/23/2015 03:52pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to workforce development; requiring the commissioner of labor and
industry to identify competency standards for dual training; creating a dual
training competency grant program; appropriating money; proposing coding for
new law in Minnesota Statutes, chapters 116L; 175.

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

Section 1.

new text begin [116L.31] DUAL TRAINING COMPETENCY GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program created. new text end

new text begin The commissioner of employment and economic
development shall make grants for the training of employees to achieve the competency
standard for an occupation identified by the commissioner of labor and industry under
section 175.45 and Laws 2014, chapter 312, article 3, section 21. "Competency standard"
has the meaning given in section 175.45, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Eligible grantees. new text end

new text begin An employer or an organization representing the
employer is eligible to apply for a grant to train employees if the employer has employees
who are in, or are to be trained to be in, an occupation for which a competency standard
has been identified and the employee has not attained the competency standard prior
to the commencement of the planned training. Training need not address all aspects
of a competency standard but may address only the competencies of a standard that an
employee is lacking. Employees who have previously received a grant under this program
are not eligible to receive another grant. Each employee must apply for federal Pell and
state grants as a condition of participating in the program.
new text end

new text begin Subd. 3. new text end

new text begin Training institution. new text end

new text begin Prior to applying for a grant, an employer must enter
into an agreement with a state college or university operated by the Board of Trustees
of the Minnesota State Colleges and Universities to provide the employee competency
standard training.
new text end

new text begin Subd. 4. new text end

new text begin Contract required. new text end

new text begin Prior to the start of a training program, an employer
and employee must enter into a contract detailing the terms of the work relationship during
and after the training program.
new text end

new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin Applications must be made to the commissioner on a form
provided by the commissioner. The commissioner must, to the extent possible, make
the application form short and simple to complete. The commissioner shall establish a
schedule for applications and grants. The application must include, without limitation:
new text end

new text begin (1) the projected number of employee trainees;
new text end

new text begin (2) the competency standard for which training will be provided;
new text end

new text begin (3) any credential the employee will receive upon completion of training;
new text end

new text begin (4) the name and address of the training institution and a signed statement by the
institution that it is able to and agrees to provide the training;
new text end

new text begin (5) the period of the training; and
new text end

new text begin (6) the cost of the training charged by the training institution and certified by the
institution.
new text end

new text begin An application may be made for training of employees of multiple employers either by the
employers or by an organization on their behalf.
new text end

new text begin Subd. 6. new text end

new text begin Grant criteria. new text end

new text begin To the extent there are sufficient applications, the
commissioner shall award at least an equal dollar amount of grants for training for
employees whose work site is projected to be outside the metropolitan area as defined
in section 473.121, subdivision 2, as for employees whose work site is projected to be
within the metropolitan area. In determining the award of grants, the commissioner must
consider, among other factors:
new text end

new text begin (1) the aggregate state and regional need for employees with the competency to
be trained;
new text end

new text begin (2) the competency standards developed by the commissioner of labor and industry
as part of the Minnesota PIPELINE Project;
new text end

new text begin (3) the per employee cost of training;
new text end

new text begin (4) the additional employment opportunities for employees as a result of the training;
new text end

new text begin (5) projected increases in compensation for employees receiving the training; and
new text end

new text begin (6) the amount of employer training cost match, on both a per employee and
aggregate basis.
new text end

new text begin Subd. 7. new text end

new text begin Employer match. new text end

new text begin Employers must pay to the training institution a
percentage of a training institution's charge for the training after subtracting federal Pell
and state grants for which an employee is eligible. The amount that an employer must pay
to the training institution shall be determined as follows:
new text end

new text begin (1) an employer with greater than or equal to $50,000,000 in annual revenue in the
previous calendar year must pay at least 66 percent of the training institution's charge
for the training;
new text end

new text begin (2) an employer with less than $50,000,000 in annual revenue in the previous
calendar year but greater than or equal to $20,000,000 in annual revenue in the previous
calendar year must pay at least 50 percent of the training institution's charge for the training;
new text end

new text begin (3) an employer with less than $20,000,000 in annual revenue in the previous calendar
year but greater than or equal to $10,000,000 in annual revenue in the previous calendar
year must pay at least 33 percent of the training institution's charge for the training; and
new text end

new text begin (4) an employer with less than $10,000,000 in annual revenue in the previous
calendar year must pay at least 20 percent of the training institution's charge for the training.
new text end

new text begin Subd. 8. new text end

new text begin Payment of grant. new text end

new text begin The commissioner shall make grant payments to the
training institution in a manner determined by the commissioner after receiving notice
from the institution that the employer has paid the employer match.
new text end

new text begin Subd. 9. new text end

new text begin Grant amounts. new text end

new text begin (a) The commissioner shall determine a maximum
amount that may be awarded in a single grant, and a maximum amount that may be
awarded per employee trained under a grant. The commissioner shall set the maximum
grant amount at a level that ensures sufficient funding will be available for multiple
employers. The maximum grant amount per employee trained may not exceed the cost of
tuition up to 60 credits.
new text end

new text begin (b) A grant for a particular employee must be reduced by the amounts of any federal
Pell grant or state grant the employee is eligible to receive for the training and the amount
of the employer match.
new text end

new text begin Subd. 10. new text end

new text begin Reporting. new text end

new text begin Commencing in 2017, the commissioner shall annually by
February 1 report on the activity of the grant program for the preceding fiscal year to the
chairs of the legislative committees with jurisdiction over workforce policy and finance.
At a minimum, the report must include:
new text end

new text begin (1) research and analysis on the costs and benefits of the grants for employees and
employers;
new text end

new text begin (2) the number of employees who commenced training and the number who
completed training; and
new text end

new text begin (3) recommendations, if any, for changes to the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 2.

new text begin [175.45] COMPETENCY STANDARDS FOR DUAL TRAINING.
new text end

new text begin Subdivision 1. new text end

new text begin Duties; goal. new text end

new text begin The commissioner of labor and industry shall identify
competency standards for dual training. The goal of dual training is to provide current
employees of an employer with training to acquire competencies that the employer
requires. The standards shall be identified for employment in occupations in advanced
manufacturing, health care services, information technology, and agriculture. Competency
standards are not rules and are exempt from the rulemaking provisions of chapter 14, and
the provisions in section 14.386 concerning exempt rules do not apply.
new text end

new text begin Subd. 2. new text end

new text begin Definition; competency standard. new text end

new text begin For purposes of this section,
"competency standards" means the specific knowledge and skills necessary for a particular
occupation.
new text end

new text begin Subd. 3. new text end

new text begin Competency standard identification process. new text end

new text begin In identifying competency
standards, the commissioner shall consult with the commissioner of employment and
economic development and convene recognized industry experts, representative employers,
higher education institutions, and representatives of labor to assist in identifying credible
competency standards. Competency standards must be based on recognized international
and national standards, to the extent that such standards are available and practical.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The commissioner shall:
new text end

new text begin (1) establish competency standards for entry level and higher skill levels;
new text end

new text begin (2) verify the competency standards and skill levels and their transferability by
subject matter with expert representatives of each respective industry;
new text end

new text begin (3) create and execute a plan for dual training outreach, development, and awareness;
new text end

new text begin (4) develop models for Minnesota educational institutions to engage in providing
education and training to meet the competency standards established;
new text end

new text begin (5) encourage participation by employers in the standard identification process for
occupations in their industry; and
new text end

new text begin (6) align dual training competency standards with other workforce initiatives.
new text end

new text begin Subd. 5. new text end

new text begin Notification. new text end

new text begin The commissioner must communicate identified competency
standards to the commissioner of employment and economic development for the purpose
of the dual training competency grant program under section 116L.31. The commissioner
of labor and industry shall maintain the competency standards on the department's Web site.
new text end

Sec. 3. new text beginDUAL TRAINING COMPETENCY GRANTS; APPROPRIATION.
new text end

new text begin $....... in fiscal year 2016 and $....... in fiscal year 2017 are appropriated from the
general fund to the commissioner of employment and economic development for the
purpose of making training grants under Minnesota Statutes, section 116L.31.
new text end

Sec. 4. new text beginAPPROPRIATION.
new text end

new text begin $....... in fiscal year 2016 is appropriated from the general fund to the commissioner
of labor and industry for identification of competency standards for dual training under
Minnesota Statutes, section 175.45.
new text end