SF 1389

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development; creating the hire 
  1.3             education loan program revolving fund for job 
  1.4             training; appropriating money; proposing coding for 
  1.5             new law in Minnesota Statutes, chapter 116L. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [116L.06] [JOB TRAINING REVOLVING FUND.] 
  1.8      Subdivision 1.  [CREATION.] The hire education loan program 
  1.9   revolving fund account is created in the special revenue fund.  
  1.10  The account consists of money appropriated or transferred to the 
  1.11  account, interest earned on funds in the account, interest, 
  1.12  principal, and other payments collected under this section, and 
  1.13  gifts, donations, and bequests made to the account.  Money in 
  1.14  the account is appropriated to the commissioner of trade and 
  1.15  economic development for the purpose of this section.  In 
  1.16  addition to any other money appropriated for that purpose, the 
  1.17  interest earned on money in the account and any loan origination 
  1.18  fees may be expended for administrative costs. 
  1.19     Subd. 2.  [FUND USES.] The fund shall make loans to 
  1.20  Minnesota employers to train persons for jobs in Minnesota.  The 
  1.21  loans must be used to train current and prospective employees of 
  1.22  an employer for specific jobs with the employer.  
  1.23     Subd. 3.  [LOAN PROCESS.] The commissioner of trade and 
  1.24  economic development shall establish a schedule and competitive 
  1.25  process for accepting loan applications.  The commissioner shall 
  2.1   use the staff of the job skills partnership board to evaluate 
  2.2   loan applications and for recommendations on loans. 
  2.3      Subd. 4.  [LOAN PRIORITY.] The commissioner shall give 
  2.4   priority to loans that provide training for jobs that are 
  2.5   permanent, provide health coverage and other fringe benefits, 
  2.6   and have a career or job path with prospects for wage increases. 
  2.7      Subd. 5.  [LOAN TERMS.] Loans may be secured or unsecured, 
  2.8   shall be for a term of no more than four years, and shall bear 
  2.9   no interest.  The maximum amount of a loan is $250,000.  A loan 
  2.10  origination fee of up to two percent of the principal of the 
  2.11  loan may be charged.  An employer may have only one outstanding 
  2.12  loan.  The loans shall contain such other standard commercial 
  2.13  loan terms as the commissioner deems appropriate.  The 
  2.14  commissioner shall not make a loan if it would reduce the 
  2.15  revolving fund account balance below $2,000,000. 
  2.16     Subd. 6.  [LOAN USES.] Loans must be used by an employer to 
  2.17  obtain the most cost-effective training available from public or 
  2.18  private training institutions.  An employer must document to the 
  2.19  commissioner the process the employer has utilized to ensure 
  2.20  that the proposed loan is used to acquire the most 
  2.21  cost-effective training and provide a training plan. 
  2.22     Subd. 7.  [JOB SKILLS PARTNERSHIP.] The job skills 
  2.23  partnership board may package a grant it makes under section 
  2.24  116L.04 with a loan under this section.  
  2.25     Subd. 8.  [LOAN REPAYMENTS.] Loan repayments and loan 
  2.26  origination fees must be deposited into the revolving fund. 
  2.27     Sec. 2.  [APPROPRIATION.] 
  2.28     $....... is appropriated from the general fund to the hire 
  2.29  education loan program revolving fund account for the purposes 
  2.30  of section 1.  The appropriation does not cancel.