Minnesota Legislature
SF 2633
as introduced - 88th Legislature (2013 - 2014) Posted on 03/26/2014 08:32am
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A bill for an act
relating to workforce development; modifying program accountability
requirements for economic development programs; requiring measurement
standards for workforce program outcomes; requiring reports; appropriating
money; amending Minnesota Statutes 2012, sections 116J.997; 116L.98.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 116J.997, is amended to read:
116J.997 PROGRAM ACCOUNTABILITY REQUIREMENTS.
Subdivision 1.
Accountability measurement.
deleted text begin By October 1, 2009,deleted text end The
commissioner of employment and economic development shall develop new text begin and implement new text end a
uniform accountability deleted text begin reportdeleted text end new text begin outcome measurement and reporting system new text end for economic
development deleted text begin or workforce-relateddeleted text end programs new text begin under the jurisdiction of the commissioner,
new text end funded in whole or in part by state or federal funds. The commissioner shall also develop
a formula for measuring the return on investment for each program and a comparison of
the return on investment of all programs funded in whole or in part by state or federal
funds. The requirements of this section apply to programs administered directly by the
commissioner or administered by other deleted text begin employmentdeleted text end organizations under a grant made by
the department. deleted text begin The report and formula required by this subdivision shall be submitted to
the chairs and ranking minority members of the committees of the house of representatives
and senate having jurisdiction over economic development and workforce policy and
finance by October 15, 2009, for review and comment.
deleted text end
Subd. 2.
Report to the legislature.
By December 31 of each even-numbered
year the commissioner must report to the chairs and the ranking minority members of
the committees of the house of representatives and the senate having jurisdiction over
economic development and workforce policy and finance the following information for
each program subject to the requirements of subdivision 1:
(1) the deleted text begin target populationdeleted text end new text begin impact on state and local tax revenue as a result of economic
activity occurring as a result of the programnew text end ;
(2)new text begin the number of business creations or business expansions occurring as a result
of the program;
new text end
new text begin (3)new text end the number of jobs affected by the program, including the number of net new
jobs created in the state and the average annual wage per job;
deleted text begin (3)deleted text end new text begin (4)new text end the number of individuals leaving the unemployment compensation program
as a result of the program;
deleted text begin (4)deleted text end new text begin (5)new text end the number of individuals leaving the Minnesota family investment program
support as a result of the program;
deleted text begin (5)deleted text end new text begin (6)new text end the region of the state in which the program operated;
deleted text begin (6)deleted text end new text begin (7)new text end the amount of state or federal funds allocated to the program;
deleted text begin (7)deleted text end new text begin (8)new text end the return on investment as calculated by the formula developed by the
commissioner; and
deleted text begin (8)deleted text end new text begin (9)new text end the dollar amount and percentage of the total grant used for administrative
expenses.
Subd. 3.
Report to the commissioner.
A recipient of a grant made by or through
the department must report to the commissioner by September 1 of each even-numbered
year on each of the items in subdivision 2 for each program it administers. The report
must be in a format prescribed by the commissioner.
deleted text begin Beginning November 1, 2009,deleted text end The commissioner shall provide notice to grant
applicants and recipients regarding the data collection and reporting requirements under
this subdivision and must provide technical assistance to applicants and recipients to assist
in complying with the requirements of this subdivision.
Subd. 4.
Biennial budget request.
new text begin (a) new text end The information collected and reported
under subdivisions 2 and 3 shall be included in budgets submitted to the legislature under
section 16A.11.
new text begin
(b) A program that is a recipient of public funds and subject to the requirements of
this section as of May 1, 2014, is not eligible for additional state appropriations for any
fiscal year beginning after June 30, 2015, unless all of the reporting requirements under
subdivision 3 have been satisfied.
new text end
new text begin
(c) A program with an initial request for funds on or after the effective date of this
section may be considered for receipt of public funds for the first two fiscal years only
if a plan that demonstrates how the data collection and reporting requirements under
subdivision 3 will be met has been submitted and approved by the commissioner. Any
subsequent request for funds after an initial request is subject to the requirements of
paragraph (b).
new text end
Sec. 2.
Minnesota Statutes 2012, section 116L.98, is amended to read:
116L.98 WORKFORCE PROGRAM OUTCOMES.
new text begin Subdivision 1. new text end
new text begin Requirements. new text end
new text begin (a) new text end The commissioner shall develop and implement a
deleted text begin set of standard approaches for assessing the outcomes ofdeleted text end new text begin uniform outcome measurement
and reporting system fornew text end workforce programs under deleted text begin this chapterdeleted text end new text begin the jurisdiction of the
commissionernew text end . The outcomes assessed must include, but are not limited to, periodic
comparisons of workforce program participants and nonparticipants.
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 terms defined in
this subdivision have the meanings given.
new text end
new text begin
(b) "Credential" means an attestation of qualification or competence issued to an
individual by a third party with the relevant authority or assumed competence to issue
the credential.
new text end
new text begin
(c) "Exit" means to have not received service under a workforce program for 90
consecutive calendar days. The exit date is the last date of service.
new text end
new text begin
(d) "Net impact" means the use of matched control groups and regression analysis to
estimate the impacts attributable to program participation net of other factors, including
observable personal characteristics and economic conditions.
new text end
new text begin
(e) "Pre-enrollment" means the period of time before an individual was enrolled
in a workforce program.
new text end
new text begin Subd. 3. new text end
new text begin Uniform outcome report card; reporting by commissioner. new text end
deleted text begin
The
commissioner shall also monitor the activities and outcomes of programs and services
funded by legislative appropriations and administered by the department on a pass-through
basis and develop a consistent and equitable method of assessing recipients for the costs
of its monitoring activities.
deleted text end
new text begin
(a) By December 31 of each even-numbered year, the
commissioner must report to the chairs and ranking minority members of the committees
of the house of representatives and the senate having jurisdiction over economic
development and workforce policy and finance the following information from the
previous calendar year, for each program subject to the requirements of subdivision 1:
new text end
new text begin
(1) the total number of participants;
new text end
new text begin
(2) the average pre-enrollment wages based on participant wages for the second
through the fifth calendar quarters immediately preceding the quarter of enrollment;
new text end
new text begin
(3) the total number of participants enrolled in occupational skills training;
new text end
new text begin
(4) the total number of participants enrolled in occupational skills training by industry;
new text end
new text begin
(5) the total number of participants that exited the program and the average
enrollment duration of participants that have exited the program during the calendar year;
new text end
new text begin
(6) the total number of exited participants who completed occupational skills training;
new text end
new text begin
(7) the total number of exited participants who attained a credential;
new text end
new text begin
(8) the total number of participants employed during four consecutive calendar
quarters immediately following the date of exit, by industry;
new text end
new text begin
(9) the average wages of participants employed during four consecutive calendar
quarters immediately following the date of exit;
new text end
new text begin
(10) the total number of participants employed during eight consecutive calendar
quarters immediately following the date of exit, by industry; and
new text end
new text begin
(11) the average wages of participants employed during eight consecutive calendar
quarters immediately following the date of exit.
new text end
new text begin
(b) Notwithstanding the requirements in paragraph (a), the commissioner must
report information on youth workforce programs and workforce programs exclusively
for persons with disabilities, to the extent possible and in a manner that most closely
resembles the outcome measures of paragraph (a), taking into account the unique
characteristics of the populations served.
new text end
new text begin
(c) The report to the legislature must contain participant information by education
level, race and ethnicity, gender, and geography, and a comparison of exited participants
who completed occupational skills training and those who did not. The report must also
contain information from participants who submitted narrative information.
new text end
new text begin
(d) The requirements of this section apply to programs administered directly by the
commissioner or administered by other organizations under a grant made by the department.
new text end
new text begin Subd. 4. new text end
new text begin Report to commissioner; uniform report card. new text end
new text begin
(a) A recipient of a
grant made by or through the department must report to the commissioner by September
1 of each even-numbered year on each of the items in subdivision 3 for each program it
administers. The report must be in a format prescribed by the commissioner.
new text end
new text begin
(b) Notwithstanding the requirements in paragraph (a), a recipient of a grant must
report information on youth workforce programs and workforce programs exclusively
for persons with disabilities, to the extent possible and in a manner that most closely
resembles the outcome measures of subdivision 3, taking into account the unique
characteristics of the populations served.
new text end
new text begin
(c) Beginning November 1, 2014, the commissioner shall provide notice to grant
applicants and recipients regarding the data collection and reporting requirements under
this subdivision and must provide technical assistance to applicants and recipients to assist
in complying with the requirements of this subdivision.
new text end
new text begin Subd. 5. new text end
new text begin Biennial budget request. new text end
new text begin
(a) The information collected and reported
under subdivisions 2 and 3 shall be included in budgets submitted to the legislature under
section 16A.11.
new text end
new text begin
(b) A program that is a recipient of public funds and subject to the requirements of
this section as of May 1, 2014, is not eligible for additional state appropriations for any
fiscal year beginning after June 30, 2015, unless all of the reporting requirements under
subdivision 4 have been satisfied.
new text end
new text begin
(c) A program with an initial request for funds on or after the effective date of this
section may be considered for receipt of public funds for the first two fiscal years only
if a plan that demonstrates how the data collection and reporting requirements under
subdivision 4 will be met has been submitted and approved by the commissioner. Any
subsequent request for funds after an initial request is subject to the requirements of
paragraph (b).
new text end
new text begin Subd. 6. new text end
new text begin Workforce program net impact study. new text end
new text begin
(a) The commissioner, in
partnership with a committee of the Governor's Workforce Development Council that
oversees net impact analysis, shall by December 1, 2014, conduct a net impact study
for adult workforce-related programs funded in whole or in part by the workforce
development fund. The requirements of this section apply to programs administered
directly by the commissioner or administered by other employment organizations under a
grant made by the department. The net impact methodology must include:
new text end
new text begin
(1) standardized statistical methods for estimating the net impacts of workforce
services on individual employment, earnings, and public benefits usage outcomes; and
new text end
new text begin
(2) standardized cost-benefit analyses for understanding the monetary impacts of
workforce services from the participant and taxpayer points of view.
new text end
new text begin
(b) By January 15 of each odd-numbered year beginning in 2015, the commissioner,
in partnership with a committee of the Governor's Workforce Development Council that
oversees net impact analysis, must report to the chairs and the ranking minority members
of the committees of the house of representatives and the senate having jurisdiction over
economic development and workforce policy and finance, the following information for
each program subject to this subdivision:
new text end
new text begin
(1) the net impact of workforce services on individual employment, earnings, and
public benefits usage outcomes; and
new text end
new text begin
(2) cost-benefit analyses for understanding the monetary impacts of workforce
services from the participant and taxpayer points of view.
new text end
new text begin
(c) By January 15, 2015, the commissioner, in partnership with the Governor's
Workforce Development Council, must report to the chairs and ranking minority members
of the committees of the house of representatives and the senate having jurisdiction over
economic development and workforce policy and finance the results of the net impact
pilot project already underway.
new text end
new text begin Subd. 7. new text end
new text begin Independent evaluation. new text end
new text begin
By February 1 of each odd-numbered year, the
commissioner of administration, in consultation with the commissioner of employment
and economic development, shall contract with an independent entity qualified to conduct
labor market analyses to audit information included in the report required under this
section. The audit must include analysis of the validity of the statistical methods for
estimating net impact analysis and cost benefit analysis, and an analysis of net impact and
cost benefit results. The commissioner shall report the results of the analysis to the chairs
and ranking minority members of the committees of the house of representatives and the
senate having jurisdiction over economic development and workforce policy and finance
when it is completed. The audit must be made available to the public in an electronic
format on the department of employment and economic development's Web site.
new text end
Sec. 3. new text begin APPROPRIATION.
new text end
new text begin
$....... in fiscal year 2015 is appropriated from the general fund to the commissioner
of employment and economic development for the purposes of sections 1 and 2.
new text end