SF 1443

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:57am

A bill for an act
relating to economic development; providing a new jobs training pilot program;
requiring a report.

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

Section 1.

new text begin NEW JOBS TRAINING PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Agreement" is the agreement between the employer and the commissioner.
new text end

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

new text begin (d) "Employee" means the individual employed in a new job with the employer.
new text end

new text begin (e) "Employer" means a business that is engaged in the manufacture and assembly
of agricultural equipment, including high-horsepower tractors, and that is located in
Jackson County.
new text end

new text begin (f) "New job" means a new position created at the employer's place of business in
Jackson County as a result of new or expanding business operations. The term does not
include recalled workers returning to positions they previously held, replacement workers,
including workers newly hired as a result of a labor dispute, or other job positions that
formerly existed within the employment of the employer in the state.
new text end

new text begin (g) "New jobs credit from withholding" means the credit as provided in subdivision
3.
new text end

new text begin (h) "New jobs training program" or "program" means the project or projects
established by the commissioner to provide employees with education and training
required for jobs in new and expanding business operations at the employer's place of
business located in Jackson County.
new text end

new text begin (i) "Program costs" means all necessary and incidental costs of providing program
services.
new text end

new text begin (j) "Program services" means training and education specifically directed to the
new jobs, including the following:
new text end

new text begin (1) wages of new employees receiving in-house or on-the-job training;
new text end

new text begin (2) all direct training costs, such as:
new text end

new text begin (i) program promotion;
new text end

new text begin (ii) instructor wages, per diem, and travel;
new text end

new text begin (iii) curriculum development and training materials;
new text end

new text begin (iv) lease of training equipment and training space;
new text end

new text begin (v) miscellaneous direct training costs;
new text end

new text begin (vi) administrative costs; and
new text end

new text begin (vii) assessment and testing; and
new text end

new text begin (3) subcontracted services with institutions of higher education, private colleges
or universities, federal, state, or local agencies, or other private training or educational
services.
new text end

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

new text begin Subd. 2. new text end

new text begin Agreement. new text end

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

new text begin (1) sets a date of commencement of the project;
new text end

new text begin (2) identifies program costs that are to be paid from available sources including
the new jobs credit from withholding to be received or derived from new jobs resulting
from the project;
new text end

new text begin (3) provides for a guarantee by the employer of payment for program costs;
new text end

new text begin (4) provides that the new jobs credit from withholding shall reimburse an amount
not to exceed 60 percent of the total program costs;
new text end

new text begin (5) provides the maximum amount of tuition and fee payments allowed for the
project; and
new text end

new text begin (6) provides that every employee participating in the new jobs training program
must be paid an income of at least 110 percent of the poverty level for a family of four,
including benefits by the end of the first year of employment under the project.
new text end

new text begin (b) Upon execution of the agreement, the commissioner shall notify the
commissioner of revenue of the agreement and the identity of the employer. The
commissioner shall prepare and deliver a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over economic development
on the status of the new jobs training program in compliance with Minnesota Statutes,
sections 3.195 and 3.197. The report must be made by January 30 of each year the new
jobs training program is in effect.
new text end

new text begin Subd. 3. new text end

new text begin New jobs credit from income tax withholding. new text end

new text begin (a) Notwithstanding the
provisions of Minnesota Statutes, section 290.62, the commissioner of revenue shall credit
the state income tax withheld on wages paid by the employer to each employee working in
a new job and who is participating in the new jobs training program to a special revenue
fund to be allocated for payment of reimbursements issued pursuant to this subdivision.
When the balance of the special revenue fund equals the amount allowed under subdivision
2, clause (4), the commissioner of revenue shall no longer credit the state income tax
withheld on wages paid as authorized under this subdivision to the special revenue fund.
All money deposited in the fund is appropriated for the purpose of this section.
new text end

new text begin (b) The commissioner of revenue shall pay reimbursements to the employer for
program costs as identified in the agreement. Reimbursement under this subdivision
may be made for up to five years.
new text end

new text begin (c) The employer shall provide to the commissioner regular documentation of the
new jobs filled, the training program services provided, and any other information the
commissioner may require.
new text end

new text begin (d) An employee participating in the project must receive full credit for the amount
of income tax withheld from the employee's pay for purposes of the employee's tax
liability under Minnesota Statutes, chapter 290.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2016.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes withheld beginning after
June 30, 2011.
new text end