SF 1373

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; establishing the
incumbent worker program; modifying workforce
development governance; amending Minnesota Statutes
2004, sections 116L.03, subdivision 2; 116L.05, by
adding a subdivision; 116L.20, subdivision 2;
proposing coding for new law in Minnesota Statutes,
chapter 116L; repealing Minnesota Statutes 2004,
section 116L.05, subdivision 4.

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

Section 1.

Minnesota Statutes 2004, section 116L.03,
subdivision 2, is amended to read:

Subd. 2.

Appointment.

The Minnesota Job Skills
Partnership Board consists of: seven members appointed by the
governor, deleted text begin the chair of the governor's Workforce Development
Council, deleted text end the commissioner of employment and economic
development, the chancellor, or the chancellor's designee, of
the Minnesota State Colleges and Universities, the president, or
the president's designee, of the University of Minnesota, and
two nonlegislator members, one appointed by the Subcommittee on
Committees of the senate Committee on Rules and Administration
and one appointed by the speaker of the house. If the
chancellor or the president of the university makes a
designation under this subdivision, the designee must have
experience in technical education. Four of the appointed
members must be members of the governor's Workforce Development
Council, of whom two must represent organized labor and two must
represent business and industry. One of the appointed members
must be a representative of a nonprofit organization that
provides workforce development or job training services.

Sec. 2.

Minnesota Statutes 2004, section 116L.05, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Use of workforce development funds. new text end

new text begin After March
1 of any fiscal year, the board may use workforce development
funds for the purposes outlined in sections 116L.04, 116L.06,
and 116L.10 to 116L.14, or to provide incumbent worker training
services under section 116L.18. Incumbent worker training
services under section 116L.18 may be provided if the following
conditions have been met:
new text end

new text begin (1) the board examines relevant economic indicators,
including the projected number of layoffs for the remainder of
the fiscal year and the next fiscal year, evidence of declining
and expanding industries, the number of initial applications for
and the number of exhaustions of unemployment benefits, job
vacancy data, and any additional relevant information brought to
the board's attention;
new text end

new text begin (2) the board accounts for all allocations made in section
116L.17, subdivision 2;
new text end

new text begin (3) based on the past expenditures and projected revenue,
the board estimates future funding needs for services under
section 116L.17 for the remainder of the current fiscal year and
the next fiscal year;
new text end

new text begin (4) the board determines there will be unspent funds after
meeting the needs of dislocated workers in the current fiscal
year and there will be sufficient revenue to meet the needs of
dislocated workers in the next fiscal year; and
new text end

new text begin (5) the board reports its findings in clauses (1) to (4) to
the chairs of legislative committees with jurisdiction over the
workforce development fund, to the commissioners of revenue and
finance, and to the public.
new text end

Sec. 3.

new text begin [116L.18] SPECIAL INCUMBENT WORKER TRAINING
GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the special
incumbent worker training grants is to expand opportunities for
businesses and workers to gain new skills that are in demand in
the Minnesota economy. The board shall establish criteria for
incumbent worker grants under this section and may encourage
creative training models, innovative partnerships, and expansion
or replication of promising practices. Grants may be made from
workforce development funds, general fund appropriations, and
any other funding sources available to the board, provided the
requirements of those funding sources are satisfied.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this
section, the following terms have the meanings given them.
new text end

new text begin (b) "Incumbent worker" means an individual employed by a
qualifying employer.
new text end

new text begin (c) "Qualifying employer" means a for-profit business or
nonprofit organization in Minnesota with at least one full-time
paid employee. Public sector organizations are not considered
qualifying employers.
new text end

new text begin (d) "Eligible organization" has the meaning given in
section 116L.17.
new text end

new text begin Subd. 3. new text end

new text begin Amount of grants. new text end

new text begin A grant to an eligible
organization may not exceed $400,000.
new text end

new text begin Subd. 4. new text end

new text begin Matching funds. new text end

new text begin The board shall require
matching funds from qualifying employers in the form of funding,
equipment, or faculty.
new text end

new text begin Subd. 5. new text end

new text begin Use of funds. new text end

new text begin Eligible organizations shall use
funds granted under this section for direct training services to
provide a measurable increase in the job-related skills of
participating incumbent workers. Eligible organizations may
also provide basic assessment, counseling, and preemployment
training services requested by the qualifying employer. No
funds may be used for support services as described in section
116L.17, subdivision 4, clause (2).
new text end

new text begin Subd. 6. new text end

new text begin Performance outcome measures. new text end

new text begin The board and the
commissioner of employment and economic development shall
jointly develop performance outcome measures and standards for
this program. The commissioner and board shall consult with
eligible organizations in establishing standards. Measures at a
minimum must include posttraining retention, promotion, and wage
increase. The board and commissioner shall provide a report to
the legislature by March 1 of each year on the previous fiscal
year's program performance. Eligible organizations must provide
performance data in a timely manner for the completion of this
report.
new text end

Sec. 4.

Minnesota Statutes 2004, section 116L.20,
subdivision 2, is amended to read:

Subd. 2.

Disbursement of special assessment funds.

(a)
The money collected under this section shall be deposited in the
state treasury and credited to the workforce development fund to
provide for employment and training programs. The workforce
development fund is created as a special account in the state
treasury.

(b) All money in the fund not otherwise appropriated or
transferred is appropriated to the Job Skills Partnership Board
for the purposes of section 116L.17 new text begin and as provided for in
paragraph (d) new text end . The board must act as the fiscal agent for the
money and must disburse that money for the purposes of section
116L.17, not allowing the money to be used for any other
obligation of the state. All money in the workforce development
fund shall be deposited, administered, and disbursed in the same
manner and under the same conditions and requirements as are
provided by law for the other special accounts in the state
treasury, except that all interest or net income resulting from
the investment or deposit of money in the fund shall accrue to
the fund for the purposes of the fund.

(c) Reimbursement for costs related to collection of the
special assessment shall be in an amount negotiated between the
commissioner and the United States Department of Labor.

new text begin (d) If the board determines that the conditions of section
116L.05, subdivision 5, have been met, the board may use funds
for the purposes outlined in sections 116L.04, 116L.06, and
116L.10 to 116L.14, or to provide incumbent worker training
services under section 116L.18.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 116L.05, subdivision 4, is
repealed.
new text end