Minnesota Legislature
HF 3601
as introduced - 89th Legislature (2015 - 2016) Posted on 03/30/2016 12:37pm
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A bill for an act
relating to higher education; modifying the greater Minnesota internship
program; establishing a grant program; repealing a tax credit; appropriating
money; amending Minnesota Statutes 2014, section 136A.129; repealing
Minnesota Statutes 2014, section 290.06, subdivision 36.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 136A.129, is amended to read:
136A.129 GREATER MINNESOTA INTERNSHIP new text begin GRANT new text end PROGRAM.
Subdivision 1.
Definitions.
(a) For the purposes of this section, the terms defined in
this subdivision have the meanings given to them.
(b) "Eligible employer" means deleted text begin a taxpayer under section 290.01deleted text end new text begin an employernew text end with
employees located in greater Minnesota.
(c) "Eligible institution" means a Minnesota public postsecondary institution or
a Minnesota private, nonprofit, baccalaureate, or graduate degree-granting college or
university.
(d) "Eligible student" means a student enrolled in an eligible institution who has
completed one-half of the credits necessary for the respective degree or certification,
including a graduate degree.
(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka,
Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and
Wright.
Subd. 2.
new text begin Grant new text end program established.
The office shall administer a greater
Minnesota internship new text begin grant new text end program through eligible institutions to provide credit at the
eligible institution for internships and deleted text begin tax creditsdeleted text end new text begin grantsnew text end for eligible employers who hire
interns for employment in greater Minnesota.
Subd. 3.
Program components.
(a) An intern must be an eligible student who has
been admitted to a major program that is related to the intern experience as determined
by the eligible institution.
(b) To participate in the program, an eligible institution must:
(1) enter into written agreements with eligible employers to provide internships that
are at least eight weeks long and located in greater Minnesota; and
(2) provide academic credit for the successful completion of the internship or ensure
that it fulfills requirements necessary to complete a vocational technical education program.
(c) To participate in the program, an eligible employer must enter into a written
agreement with an eligible institution specifying that the intern:
(1) would not have been hired without the deleted text begin tax creditdeleted text end new text begin grantnew text end described in subdivision 4;
(2) did not work for the employer in the same or a similar job prior to entering
the agreement;
(3) does not replace an existing employee;
(4) has not previously participated in the program;
(5) will be employed at a location in greater Minnesota;
(6) will be paid at least minimum wage for a minimum of 16 hours per week for a
period of at least eight weeks; and
(7) will be supervised and evaluated by the employer.
(d) The written agreement between the eligible institution and the eligible employer
must certify a deleted text begin creditdeleted text end new text begin grantnew text end amount to the employer, not to exceed $2,000 per intern. The
total dollar amount of deleted text begin creditsdeleted text end new text begin grantsnew text end that an eligible institution certifies to eligible employers
in a deleted text begin calendardeleted text end new text begin fiscalnew text end year may not exceed the amount of its allocation under subdivision 4.
(e) Participating eligible institutions and eligible employers must report annually to
the office. The report must include at least the following:
(1) the number of interns hired;
(2) the number of hours and weeks worked by interns; and
(3) the compensation paid to interns.
(f) An internship required to complete an academic program does not qualify for the
greater Minnesota internship program under this section.
Subd. 4.
deleted text begin Tax credit alloweddeleted text end new text begin Grant calculationnew text end .
deleted text begin An employer is entitled to a tax
credit as provided in section 290.06, subdivision 36. The total amount of credits allocated
in a calendar year must not exceed $2,000,000.deleted text end new text begin (a)new text end The office shall determine relevant
criteria to allocate the deleted text begin tax creditsdeleted text end new text begin grantsnew text end including the geographic distribution of deleted text begin creditsdeleted text end new text begin
grantsnew text end to work locations outside the metropolitan areadeleted text begin , anddeleted text end new text begin . The officenew text end shall allocate
deleted text begin creditsdeleted text end new text begin grants up to the available appropriationnew text end to eligible institutions that meet the criteria
on a first-come, first-served basis. Any deleted text begin creditsdeleted text end new text begin grantsnew text end allocated to an institution but not
used may be reallocated to eligible institutions.
new text begin
(b) When an eligible institution reports to the office that an eligible student has
successfully completed the internship, the office shall disburse a grant to the employer
equal to the lesser of:
new text end
new text begin
(1) the amount certified under subdivision 3 to the eligible employer by an eligible
institution; or
new text end
new text begin
(2) 40 percent of the compensation paid to the intern.
new text end
new text begin (c) Unless a different amount is reserved in the appropriation, the office may reserve
up to one percent of the money appropriated for the grant program for administrative
costs.new text end The office shall new text begin proportionately new text end allocate deleted text begin a portion of the administrative fee under
section 290.06, subdivision 36,deleted text end new text begin this reservenew text end to participating eligible institutions for their
administrative costs.
Subd. 5.
Reports to the legislature.
deleted text begin (a)deleted text end new text begin Annuallynew text end by February 1, deleted text begin 2016,deleted text end the office
deleted text begin and the Department of Revenuedeleted text end shall report to the deleted text begin legislaturedeleted text end new text begin legislative committees with
jurisdiction over higher educationnew text end on the greater Minnesota internshipnew text begin grantnew text end program. The
report must include at least the following:
(1) the number and dollar amount of deleted text begin credits alloweddeleted text end new text begin grantsnew text end ;
(2) the number of interns employed under the program; deleted text begin and
deleted text end
(3) the cost of administering the programdeleted text begin .deleted text end new text begin ; and
new text end
deleted text begin (b) By February 1, 2017, the office and the Department of Revenue shall report to the
legislature with an analysis of the effectiveness of the program in stimulating businesses
to hire interns and in assisting participating interns in finding permanent career positions.
This report must includedeleted text end new text begin (4)new text end the number of students who participated in the program who
were subsequently employed full-time by the employer.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2017, and applies to
grants made in fiscal year 2017 and later.
new text end
Sec. 2. new text begin APPROPRIATION.
new text end
new text begin
$....... in fiscal year 2017 is appropriated from the general fund to the commissioner
of higher education for the greater Minnesota internship grant program under Minnesota
Statutes, section 136A.129.
new text end
Sec. 3. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2014, section 290.06, subdivision 36,
new text end
new text begin
is repealed effective for
taxable years beginning after December 31, 2016.
new text end