as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to employment; establishing the 1997 1.3 Minnesota employment and economic development program; 1.4 modifying the wage subsidy program and providing job 1.5 retention services; appropriating money; amending 1.6 Minnesota Statutes 1996, sections 268.672, subdivision 1.7 6, and by adding subdivisions; 268.673, subdivisions 1.8 3, 4a, and 5; 268.6751, subdivision 1; 268.677, 1.9 subdivision 1; 268.678, subdivision 6; and 268.681; 1.10 proposing coding for new law in Minnesota Statutes, 1.11 chapter 268; repealing Minnesota Statutes 1996, 1.12 sections 268.672, subdivision 4; 268.673, subdivision 1.13 6; 268.676; 268.677, subdivisions 2 and 3; 268.678; 1.14 and 268.679, subdivision 3. 1.15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.16 Section 1. [268.6715] [1997 MINNESOTA EMPLOYMENT AND 1.17 ECONOMIC DEVELOPMENT PROGRAM.] 1.18 The 1997 Minnesota employment and economic development 1.19 program is established to assist businesses and communities to 1.20 create jobs that provide the wages, benefits, and on-the-job 1.21 training opportunities necessary to help low-wage workers and 1.22 people transitioning from public assistance to get and retain 1.23 jobs, and to help their families to move out of poverty. 1.24 Sec. 2. Minnesota Statutes 1996, section 268.672, 1.25 subdivision 6, is amended to read: 1.26 Subd. 6. [ELIGIBLE JOB APPLICANT.] "Eligible job 1.27 applicant" means a person who:(1) has been a resident of this1.28state for at least one month, (2) is unemployed, (3) is not1.29receiving and is not qualified to receive reemployment insurance1.30or workers' compensation, and (4) is determined to be likely to2.1be available for employment by an eligible employer for the2.2duration of the job.2.3For the purposes of this subdivision, a farmer or any2.4member of a farm family household who can demonstrate severe2.5household financial need must be considered unemployed.2.6 (1) has attempted to secure a nonsubsidized job by 2.7 completing comprehensive job readiness and is: 2.8 (i) a temporary assistance for needy families (TANF) 2.9 recipient who is making good faith efforts to comply with the 2.10 family support agreement as defined under section 256.032, 2.11 subdivision 7a, but has failed to find suitable employment; or 2.12 (ii) a family general assistance recipient; or 2.13 (2) is a member of a household supported only by: 2.14 (i) a low-income worker; or 2.15 (ii) a person who is underemployed as that term is defined 2.16 in section 268.61, subdivision 5. 2.17 Sec. 3. Minnesota Statutes 1996, section 268.672, is 2.18 amended by adding a subdivision to read: 2.19 Subd. 13. [COMPREHENSIVE JOB READINESS.] "Comprehensive 2.20 job readiness" means a job search program administered by a 2.21 county or its designee that teaches self-esteem, marketable work 2.22 habits, job-seeking skills, and life-management skills, and may 2.23 include retention services. 2.24 Sec. 4. Minnesota Statutes 1996, section 268.672, is 2.25 amended by adding a subdivision to read: 2.26 Subd. 14. [EMPLOYER.] "Employer" means a private or public 2.27 employer that: 2.28 (1) agrees to create a job that is permanent and full time, 2.29 except a private nonprofit or public employer may provide a 2.30 temporary job; 2.31 (2) pays a wage of at least $2 per hour higher than the 2.32 minimum wage; and 2.33 (3) agrees to retain a participant at the same wage and 2.34 benefit level of the wage subsidy period after satisfactory 2.35 completion of the subsidy period. 2.36 Sec. 5. Minnesota Statutes 1996, section 268.672, is 3.1 amended by adding a subdivision to read: 3.2 Subd. 15. [FULL-TIME.] "Full-time" means 40 hours of work 3.3 per week or any other schedule considered full-time by the 3.4 employer. In the case of a temporary assistance to needy 3.5 families recipient, "full-time" means 40 hours comprised of the 3.6 number of hours of work needed to meet the recipient's work 3.7 requirement plus the number of hours spent in a training or 3.8 education program. 3.9 Sec. 6. Minnesota Statutes 1996, section 268.672, is 3.10 amended by adding a subdivision to read: 3.11 Subd. 16. [JOB RETENTION SERVICES.] "Job retention 3.12 services" means assistance that would not otherwise be provided 3.13 to an eligible job applicant with child care, transportation, 3.14 job coaching, employer-employee mediation, and other forms of 3.15 support services to help an applicant to transition to 3.16 employment and retain a job. 3.17 Sec. 7. Minnesota Statutes 1996, section 268.672, is 3.18 amended by adding a subdivision to read: 3.19 Subd. 17. [LOW-INCOME WORKER.] "Low-income worker" means a 3.20 worker who earns no more than $1 per hour more than the minimum 3.21 wage. 3.22 Sec. 8. Minnesota Statutes 1996, section 268.672, is 3.23 amended by adding a subdivision to read: 3.24 Subd. 18. [MINIMUM WAGE.] "Minimum wage" means the greater 3.25 of (1) the federal minimum wage in effect on or after September 3.26 1, 1997, and (2) the state minimum wage under section 177.24. 3.27 Sec. 9. Minnesota Statutes 1996, section 268.672, is 3.28 amended by adding a subdivision to read: 3.29 Subd. 19. [PROGRAM.] "Program" means the 1997 Minnesota 3.30 employment and economic development program. 3.31 Sec. 10. Minnesota Statutes 1996, section 268.673, 3.32 subdivision 3, is amended to read: 3.33 Subd. 3. [DEPARTMENT OF ECONOMIC SECURITY.] The 3.34 commissioner shall supervise wage subsidies and job retention 3.35 services and shall provide technical assistance tothe local3.36service units for the purpose of delivering wage4.1subsidiescounties in delivery of wage subsidies and job 4.2 retention services. 4.3 Sec. 11. Minnesota Statutes 1996, section 268.673, 4.4 subdivision 4a, is amended to read: 4.5 Subd. 4a. [CONTRACTS WITHSERVICE PROVIDERSCOUNTIES.] The 4.6 commissioner shall contract directly witha certified local4.7service providercounties or their designees to deliver wage 4.8 subsidies and job retention services if (1) each county served 4.9 by theproviderdesignee agrees to the contract and knows the 4.10 amount of wage subsidy money and job retention services money 4.11 allocated to the county under section 268.6751, and (2) 4.12 theproviderdesignee agrees to meet regularly with each county 4.13 being served. The contracts must require that no more than ten 4.14 percent of the contract amount be expended for administration. 4.15 Sec. 12. Minnesota Statutes 1996, section 268.673, 4.16 subdivision 5, is amended to read: 4.17 Subd. 5. [REPORT.] Eachentitycounty delivering wage 4.18 subsidies and job retention services shall report to the 4.19 commissioner on a quarterly basis: 4.20 (1) the number of persons placed in private sector jobs, in 4.21 temporary public sector jobs, or in other services; 4.22 (2) the outcome for each participant placedin a private4.23sector job, in a temporary public sector job, or in another4.24service; 4.25 (3) the number and type of employers employing persons 4.26 under the program; 4.27 (4) the amount of money spent in eachlocal service unit4.28 county for wages and job retention services for each type of 4.29 employment and each type of other expense; 4.30 (5) the age, educational experience, family status, gender, 4.31 priority group status, race, and work experience of each person 4.32 in the program; 4.33 (6) the amount of wages received by persons while in the 4.34 program and 60 days after completing the program; and 4.35 (7) for each classification of persons described in clause 4.36 (5), the outcome of the wage subsidy placement and the job 5.1 retention services, including length of time employed; nature of 5.2 employment, whether private sector, temporary public sector, or 5.3 other service; and the hourly wages; and5.4(8) any other information requested by the commissioner.5.5Each report must include cumulative information, as well as5.6information for each quarter. 5.7 Data collected on individuals under this subdivision are 5.8 private data on individuals as defined in section 13.02, 5.9 subdivision 12, except that summary data may be provided under 5.10 section 13.05, subdivision 7. 5.11 Sec. 13. Minnesota Statutes 1996, section 268.6751, 5.12 subdivision 1, is amended to read: 5.13 Subdivision 1. [WAGE SUBSIDIESALLOCATION.] Wage subsidy 5.14 money and job retention services money must be allocated to 5.15local service units in the following manner: 5.16(a) The commissioner shall allocate 87.5 percent of the5.17funds available for allocation to local service units for wage5.18subsidy programs as follows: the proportion of the wage subsidy5.19money available to each local service unit must be based on the5.20number of unemployed persons in the local service unit for the5.21most recent six-month period and the number of work readiness5.22assistance cases and aid to families with dependent children5.23cases in the local service unit for the most recent six-month5.24period.5.25(b) Five percent of the money available for wage subsidy5.26programs must be allocated at the discretion of the commissioner.5.27(c) Seven and one-half percent of the money available for5.28wage subsidy programs must be allocated at the discretion of the5.29commissioner to provide jobs for residents of federally5.30recognized Indian reservations.5.31(d)counties in proportion to the number of persons living 5.32 at or below the federal poverty threshold in each county. By 5.33 December 31 of each fiscal year,providers and local service5.34unitscounties and designees receiving wage subsidy money and 5.35 job retention services money shall report to the commissioner on 5.36 the use of allocated funds. The commissioner shall reallocate 6.1 uncommitted funds for each fiscal year according to the formula 6.2 inparagraph (a)this subdivision. 6.3 Sec. 14. Minnesota Statutes 1996, section 268.677, 6.4 subdivision 1, is amended to read: 6.5 Subdivision 1. [WAGE SUBSIDY AND JOB RETENTION SERVICES 6.6 MONEY.] To the extent allowable under federal and state law, 6.7 wage subsidy money and job retention services money must be 6.8 pooled and used in combination with money from other employment 6.9 and training services or income maintenance and support 6.10 services.At least 75 percent of the money appropriated for6.11wage subsidies must be used to pay wages for eligible job6.12applicants. For each eligible job applicant employed, the6.13maximum state contribution from any combination of public6.14assistance grant diversion and employment and training services6.15governed under this chapter, including wage subsidies, is $4 per6.16hour for wages and $1 per hour for fringe benefits. The use of6.17wage subsidies is limited as follows:6.18 (a) The wage subsidy is $2.50 per hour for wages and up to 6.19 $1 per hour for reimbursement of employer paid benefits for 6.20 health care, child care, or transportation expenses for 6.21 employers paying an hourly wage that is $2 to $2.99 per hour 6.22 higher than the minimum wage. 6.23 (b) The wage subsidy is $4 per hour for wages and up to $1 6.24 per hour for reimbursement of employer paid benefits for health 6.25 care, child care, or transportation expenses for employers 6.26 paying an hourly wage that is $3 or more per hour higher than 6.27 the minimum wage. 6.28 (c) The wage subsidy foreachan eligible job applicant 6.29placed in private or nonprofit employment, the state may6.30subsidize wagesmay be paid for a maximum of 1,040 hours over a 6.31 period of 26 weeks. Employers are encouraged to use money from 6.32 other sources to provide increased wages to applicants they 6.33 employ. Job retention services may be provided to an eligible 6.34 program participant over a period of 78 weeks. 6.35(b) For each eligible job applicant participating in a job6.36training program and placed in private sector employment, the7.1state may subsidize wages for a maximum of 1,040 hours over a7.2period of 52 weeks.7.3(c) For each eligible job applicant placed in a community7.4investment program job, the state may provide wage subsidies for7.5a maximum of 780 hours over a maximum of 26 weeks. For an7.6individual placed in a community investment program job, the7.7county share of the wage subsidy shall be 25 percent. Counties7.8may use money from sources other than public assistance and wage7.9subsidies, including private grants, contributions from7.10nonprofit corporations and other units of government, and other7.11state money, to increase the wages or hours of persons employed7.12in community investment programs.7.13 (d)Notwithstanding the limitations of paragraphs (a) and7.14(b), money may be used to provide a state contribution for wages7.15and fringe benefits in private sector jobs for eligible7.16applicants who had previously held temporary jobs with eligible7.17government and nonprofit agencies or who had previously held7.18community investment program jobs for which a state contribution7.19had been made, and who are among the priority groups established7.20in section 268.676, subdivision 1. The use of money under this7.21paragraph shall be for a maximum of 1,040 hours over a maximum7.22period of 26 weeks per job applicant.An employer of more than 7.23 four full-time employees shall receive wage subsidies for no 7.24 more than 25 percent of the employer's full-time workforce. 7.25 Sec. 15. Minnesota Statutes 1996, section 268.678, 7.26 subdivision 6, is amended to read: 7.27 Subd. 6. [ELIGIBLE JOB APPLICANT PRIORITY LISTS.] Each 7.28local service unitcounty shall provide for the maintenance of a 7.29 list of eligible job applicants unable to secure employment 7.30 under the program at the time of application. The list shall 7.31 prioritize eligible job applicants and shall be used to fill 7.32 jobs with eligible employers as they become available. 7.33 Sec. 16. Minnesota Statutes 1996, section 268.681, is 7.34 amended to read: 7.35 268.681 [BUSINESS EMPLOYMENT.] 7.36 Subdivision 1. [ELIGIBLE BUSINESSES.] A business employer 8.1 is an eligible employer if it enters into a written contract, 8.2 signed and subscribed to under oath, with alocal service8.3unitcounty or itscontractordesignee, containing assurances 8.4 that: 8.5 (a) funds received by a business shall be used only as 8.6 permitted under sections 268.672 to 268.682; 8.7 (b) the business has submitted information to thelocal8.8service unitcounty or itscontractordesignee (1) describing 8.9 the duties and proposed compensation of each employee proposed 8.10 to be hired under the program; and (2) demonstrating that, with 8.11 the funds provided under sections 268.672 to 268.682, the 8.12 business is likely to succeed and continue to employ persons 8.13 hired using wage subsidies; 8.14 (c) the business will use funds exclusively for 8.15 compensation andfringebenefits of eligible job applicants and 8.16 will provide employees hired with these funds withfringe8.17 benefits and other terms and conditions of employment comparable 8.18 to those provided to other employees of the business who do 8.19 comparable work; 8.20 (d) the funds are necessary to allow the business to begin, 8.21 or to employ additional people, but not to fill positions which 8.22 would be filled even in the absence of wage subsidies; 8.23 (e) the business will cooperate with thelocal service unit8.24 county and the commissioner in collecting data to assess the 8.25 result of wage subsidies and the effectiveness of job retention 8.26 services; and 8.27 (f) the business is in compliance with all applicable 8.28 affirmative action, fair labor, health, safety, and 8.29 environmental standards. 8.30 Subd. 1a. [INELIGIBLE BUSINESSES.] A business employer is 8.31 ineligible to participate in the program and is ineligible to 8.32 receive wage subsidy money if: 8.33 (1) the business is a temporary employment agency; or 8.34 (2) the business is a restaurant. 8.35 For purposes of this subdivision, "temporary employment 8.36 agency" means a business that hires people to work in temporary 9.1 positions for employers who are clients of that business. 9.2 For purposes of this subdivision, "restaurant" includes, 9.3 but is not limited to, fast food restaurants. 9.4 Subd. 2. [PRIORITIES.] (a) In allocating funds among 9.5 eligible businesses, thelocal service unitcounty or its 9.6contractordesignee shall give priority to: 9.7 (1) businesses that will provide applicants with on-the-job 9.8 training and marketable job skills; 9.9 (2) businesses engaged in manufacturing; 9.10(2)(3) nonretail businesses that are small businesses as 9.11 defined in section 645.445; and 9.12(3)(4) businesses that export products outside the state. 9.13 (b) In addition to paragraph (a), alocal service unit9.14 county must give priority to businesses that: 9.15 (1) have a high potential for growth and long-term job 9.16 creation; 9.17 (2) are labor intensive; 9.18 (3) make high use of local and Minnesota resources; 9.19 (4) are under ownership of women and minorities; 9.20 (5) make high use of new technology; 9.21 (6) produce energy conserving materials or services or are 9.22 involved in development of renewable sources of energy; and 9.23 (7) have their primary place of business in Minnesota. 9.24 Subd. 3. [PAYBACK.] (a) A business receiving wage 9.25 subsidies shall repay 70 percent of the amount initially 9.26 received for each eligible job applicant employed, if the 9.27 employee does not continue in the employment of the business 9.28 beyond the six-month subsidized period. If the employee 9.29 continues in the employment of the business for one year or 9.30 longer after the six-month subsidized period, the business need 9.31 not repay any of the funds received for that employee's wages. 9.32 If the employee continues in the employment of the business for 9.33 a period of less than one year after the expiration of the 9.34 six-month subsidized period, the business shall receive a 9.35 proportional reduction in the amount it must repay. 9.36 (b) If an employer dismisses an employee for good cause and 10.1 works in good faith with the local service unit or its 10.2 contractor to employ and train another person referred by 10.3 thelocal service unitcounty or itscontractordesignee, the 10.4 payback formula shall apply as if the original person had 10.5 continued in employment. 10.6 (c) If a business receiving funds under the program reduces 10.7 the hourly wage after the six-month subsidy, the business must 10.8 repay a portion of the subsidy in direct proportion to the 10.9 amount that the hourly wage is reduced. 10.10 (d) A repayment schedule shall be negotiated and agreed to 10.11 by thelocal service unitcounty and the business prior to the 10.12 disbursement of the funds and is subject to renegotiation. The 10.13local service unitcounty shallforward 25 percent of the10.14payments received under this subdivision to the commissioner on10.15a monthly basis and shall retain the remaining 75 percent for10.16local program expenditures. Notwithstanding section 268.677,10.17subdivision 2, the local service unit may use up to 20 percent10.18of its share of the funds returnedretain payments received 10.19 under this subdivision for any administrative costs associated 10.20 with the collection of the funds under this subdivision and for 10.21 entering into new wage subsidy agreements.At least 80 percent10.22of the local service unit's share of the funds returned under10.23this subdivision must be used as provided in section 268.677.10.24The commissioner shall deposit payments forwarded to the10.25commissioner under this subdivision in the general fund.10.26 Subd. 5. [SUCCESSORSHIP.] A contract entered into by an 10.27 owner, employer, or manager under the wage subsidy program is 10.28 legally binding on any successor owner, employer, or manager. 10.29 Sec. 17. [REPEALER.] 10.30 Minnesota Statutes 1996, sections 268.672, subdivision 4; 10.31 268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 10.32 268.678; and 268.679, subdivision 3, are repealed. 10.33 Sec. 18. [APPROPRIATIONS.] 10.34 Subdivision 1. [WAGE SUBSIDY PROGRAM.] $....... is 10.35 appropriated from the general fund to the commissioner of 10.36 economic security for the wage subsidy program. 11.1 Subd. 2. [RETENTION SERVICES.] $....... is appropriated 11.2 from the general fund to the commissioner of economic security 11.3 for comprehensive job readiness and retention services.