SF 526

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; creating a program
to retain manufacturing jobs in Minnesota;
appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 116J.

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

Section 1.

new text begin [116J.671] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this
section and section 116J.672, the terms defined in this section
have the meanings given them.
new text end

new text begin Subd. 2. 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. 3. new text end

new text begin Metropolitan area. new text end

new text begin "Metropolitan area" has the
meaning given in section 473.121, subdivision 2.
new text end

Sec. 2.

new text begin [116J.672] EMPLOYER WAGE ASSISTANCE 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 may
make grants to eligible employers as described in subdivision 2
to subsidize wages and benefits for eligible jobs as described
in subdivision 3 for the purpose of retaining manufacturing jobs
in Minnesota if the commissioner finds that the jobs will not be
retained without the subsidy. Grants may only be used for jobs
located in Minnesota outside of the metropolitan area.
new text end

new text begin Subd. 2. new text end

new text begin Eligible employers. new text end

new text begin An employer is eligible to
apply to the commissioner for a grant under this section if the
employer can show that it will not be able to retain jobs
without a grant because it is in a short-term competitive
downturn because of lower labor costs that are not subject to
federal minimum wage requirements.
new text end

new text begin Subd. 3. new text end

new text begin Eligible jobs. new text end

new text begin To be eligible for a grant under
this section, a job must pay total compensation, including
benefits not mandated by law, on an annualized basis equal to or
greater than 110 percent of the federal poverty guidelines for a
family of four.
new text end

new text begin Subd. 4. new text end

new text begin Grant application process. new text end

new text begin The commissioner
shall operate a grant application process and provide
application forms to employers upon request. The application
must specifically identify each job for which a grant is sought
and facts sufficient to demonstrate that the employer is an
eligible employer under subdivision 2 and the job is an eligible
job under subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Grant criteria. new text end

new text begin The commissioner shall award
grants based on the following criteria:
new text end

new text begin (1) the likelihood that jobs will be retained because of a
subsidy;
new text end

new text begin (2) the effect of the job retention on the community where
the jobs are located and surrounding area;
new text end

new text begin (3) the availability of other jobs at similar wage and
benefit levels in the locale; and
new text end

new text begin (4) that the grant is prudent based on the economic
viability of the business based on historical financial
information, business plans, cash flow projections, current
orders, and other information the commissioner may request.
new text end

new text begin Subd. 6. new text end

new text begin Grant awards. new text end

new text begin An employer may not receive more
than $4,000,000 in grants. A grant for one job may not exceed
$10,400, consisting of a maximum of $4 an hour in wage subsidy
and a maximum of $1 an hour in benefits subsidy. A grant for a
particular job may not be for a period exceeding 48 consecutive
months. The commissioner may award a grant for less than the
per employer or per employee maximum and for less than 48 months
if the commissioner determines a lower amount or lesser duration
award will achieve the desired job retention. A grant must be
matched by equal cost-saving efforts of the employer other than
through job or wage reductions.
new text end

new text begin Subd. 7. new text end

new text begin Audits, examinations, inspections. new text end

new text begin The
commissioner may make audits, examinations, and inspections of
the books, records, and facilities of an employer necessary to
ensure the proper use of grant funds. An employer must, as a
condition of receiving a grant, agree to cooperate in those
audits, examinations, and inspections.
new text end

new text begin Subd. 8. new text end

new text begin Repayment of grant. new text end

new text begin An employer must certify,
under oath, that grants are used for the jobs specified in the
application. If the job for which a grant is received is not
filled by an employee, the grant must be repaid to the extent
the job was not filled during the grant period. If the job was
unfilled at any time within six months of the last day that a
job grant was used for a subsidy, the employer must repay the
entire grant unless the commissioner determines that the job was
not filled due to circumstances beyond the employer's control.
Money repaid to the commissioner must be deposited in the
general fund and is reappropriated to the commissioner for the
purposes of this section.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $2,000,000 in fiscal year 2006 and $2,000,000 in fiscal
year 2007 are appropriated from the general fund to the
commissioner of employment and economic development for the
purposes of Minnesota Statutes, section 116J.672.
new text end