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SF 525

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 02/27/2015 09:04am

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; providing grants to employers for job
training; requiring a report; appropriating money; proposing coding for new law
in Minnesota Statutes, chapter 116L.

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

Section 1.

new text begin [116L.40] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin When used in sections 116L.40 to 116L.42, the following
terms have the meanings given them unless the context requires otherwise.
new text end

new text begin Subd. 2. new text end

new text begin Agreement. new text end

new text begin "Agreement" means the agreement between an employer and
the commissioner for a project.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of employment
and economic development.
new text end

new text begin Subd. 4. new text end

new text begin Disability. new text end

new text begin "Disability" has the meaning given under United States Code,
title 42, chapter 126.
new text end

new text begin Subd. 5. new text end

new text begin Employee. new text end

new text begin "Employee" means the individual employed in a new job.
new text end

new text begin Subd. 6. new text end

new text begin Employer. new text end

new text begin "Employer" means the individual, corporation, partnership,
limited liability company, or association providing new jobs and entering into an agreement.
new text end

new text begin Subd. 7. new text end

new text begin New job. new text end

new text begin "New job" means a job:
new text end

new text begin (1) that is provided by a new or expanding business at a location outside of the
metropolitan area, as defined in section 473.121, subdivision 2;
new text end

new text begin (2) that provides 32 hours of work per week for a minimum of nine months of the
year and is permanent with no planned termination date;
new text end

new text begin (3) that is certified by the commissioner as qualifying under the program before the
first employee is hired to fill the job; and
new text end

new text begin (4) for which an employee hired was not (i) formerly employed by the employer
in the state or (ii) a replacement worker, including a worker newly hired as a result of a
labor dispute.
new text end

new text begin Subd. 8. new text end

new text begin Program. new text end

new text begin "Program" means the project or projects established under
sections 116L.40 to 116L.42.
new text end

new text begin Subd. 9. new text end

new text begin Program costs. new text end

new text begin "Program costs" means all necessary and incidental
costs of providing program services, except that program costs are increased by $1,000
per employee for an individual with a disability. The term does not include the cost of
purchasing equipment to be owned or used by the training or educational institution or
service.
new text end

new text begin Subd. 10. new text end

new text begin Program services. new text end

new text begin "Program services" means training and education
specifically directed to new jobs that are determined to be appropriate by the commissioner,
including in-house training; services provided by institutions of higher education and
federal, state, or local agencies; or private training or educational services. Administrative
services and assessment and testing costs are included.
new text end

new text begin Subd. 11. new text end

new text begin Project. new text end

new text begin "Project" means a training arrangement that is the subject of an
agreement entered into between the commissioner and an employer to provide program
services.
new text end

Sec. 2.

new text begin [116L.41] COMMISSIONER'S DUTIES AND POWERS; AGREEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Service provision. new text end

new text begin Upon request, the commissioner shall provide
or coordinate the provision of program services under sections 116L.40 to 116L.42 to
a business eligible for grants under section 116L.42. The commissioner shall specify
the form of and required information to be provided with applications for projects to be
funded with grants under section 116L.42.
new text end

new text begin Subd. 2. new text end

new text begin Agreements; required terms. new text end

new text begin (a) The commissioner may enter into an
agreement to establish a project with an employer that:
new text end

new text begin (1) identifies program costs to be paid from sources under the program;
new text end

new text begin (2) identifies program costs to be paid by the employer;
new text end

new text begin (3) provides that on-the-job training costs for employees may not exceed 50 percent
of the annual gross wages and salaries of the new jobs in the first full year after execution
of the agreement;
new text end

new text begin (4) provides that each employee must be paid wages at least equal to the median
hourly wage for the county, as reported in the most recently available data from the United
States Bureau of the Census, plus benefits, by the earlier of the end of the training period
or 18 months of employment under the project; and
new text end

new text begin (5) provides that job training will be provided and the length of time of training.
new text end

new text begin (b) Before entering into a final agreement, the commissioner shall:
new text end

new text begin (1) determine that sufficient funds for the project are available under section
116L.42; and
new text end

new text begin (2) investigate the applicability of other training programs and determine whether
the job skills partnership grant program is a more suitable source of funding for the
training and whether the training can be completed in a timely manner that meets the
needs of the business.
new text end

new text begin The investigation under clause (2) must be completed within 15 days or as soon
as reasonably possible after the employer has provided the commissioner with all the
requested information.
new text end

new text begin Subd. 3. new text end

new text begin Grant funds sufficient. new text end

new text begin The commissioner must not enter into an agreement
under subdivision 2 unless the commissioner determines that sufficient funds are available.
new text end

new text begin Subd. 4. new text end

new text begin Allocation. new text end

new text begin The commissioner shall allocate grant funds under section
116L.42, to project applications based on a first-come, first-served basis, determined on
the basis of the commissioner's receipt of a complete application for the project, including
the provision of all of the required information. The agreement must specify the amount
of grant funds available to the employer for each year covered by the agreement.
new text end

new text begin Subd. 5. new text end

new text begin Application fee. new text end

new text begin The commissioner may charge each employer an
application fee to cover part or all of the administrative and legal costs incurred, not to
exceed $500 per employer. The fee is deemed approved under section 16A.1283. The fee
is deposited in the jobs training account in the special revenue fund and amounts in the
account are appropriated to the commissioner for the costs of administering the program.
The commissioner shall refund the fee to the employer if the application is denied because
program funding is unavailable.
new text end

Sec. 3.

new text begin [116L.42] JOBS TRAINING GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Recovery of program costs. new text end

new text begin Amounts paid by employers for
program costs are repaid by a job training grant equal to the lesser of the following amounts:
new text end

new text begin (1) the amount of program costs specified in the agreement for the project; or
new text end

new text begin (2) the amount of program costs paid by the employer for new employees under
a project.
new text end

new text begin Subd. 2. new text end

new text begin Reports. new text end

new text begin (a) By February 1, 2018, the commissioner shall report to the
governor and the legislature on the program. The report must include at least:
new text end

new text begin (1) the amount of grants issued under the program;
new text end

new text begin (2) the number of individuals receiving training under the program, including the
number of new hires who are individuals with disabilities;
new text end

new text begin (3) the number of new hires attributable to the program, including the number of
new hires who are individuals with disabilities;
new text end

new text begin (4) an analysis of the effectiveness of the grant in encouraging employment;
new text end

new text begin (5) any other information the commissioner determines appropriate;
new text end

new text begin (6) the number of women and minority owned businesses participating in the
program; and
new text end

new text begin (7) the number of women and minorities participating in the program.
new text end

new text begin (b) The report to the legislature must be distributed as provided in section 3.195.
new text end

Sec. 4. new text beginJOBS TRAINING GRANTS; APPROPRIATION.
new text end

new text begin $5,000,000 in fiscal year 2016 and $10,000,000 in fiscal year 2017 are appropriated
from the general fund to the commissioner of employment and economic development for
jobs training grants under Minnesota Statutes, section 116L.42.
new text end