SF 3223

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/03/2024 10:12am

A bill for an act
relating to workforce development; establishing a Shakopee area workforce
development scholarship pilot program; appropriating money.

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

Section 1. new text begin SHAKOPEE AREA WORKFORCE DEVELOPMENT SCHOLARSHIPS
PILOT.
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 following terms have
the meanings given.
new text end

new text begin (b) "Employer-sponsored applicant" means a student applicant with a local employer
scholarship equal to or greater than 25 percent of the workforce development scholarship.
new text end

new text begin (c) "Local employer" means an employer with a physical location in a county within the
service area of the foundation as listed in paragraph (d).
new text end

new text begin (d) "Shakopee Chamber Foundation" or "foundation" means a nonprofit organization
which provides workforce and charitable services to Scott County as well as the Shakopee
Mdewakanton Sioux Community.
new text end

new text begin Subd. 2. new text end

new text begin Grants and administration. new text end

new text begin (a) The commissioner of employment and
economic development must award appropriated grant funds to the foundation to administer
the Shakopee area workforce development scholarship pilot program. The foundation may
use up to ten percent of grant funds for administrative costs.
new text end

new text begin (b) The foundation and participating Minnesota state colleges and universities must
establish an application process and other guidelines for implementing this program.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship recipient requirements. new text end

new text begin (a) To be eligible for a scholarship from
the foundation, a student must:
new text end

new text begin (1) be enrolling or enrolled at least half-time in a program at a Minnesota state college
and university approved by the Dakota-Scott Workforce Development Board under
subdivision 4;
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new text begin (2) complete the Free Application for Federal Student Aid (FAFSA), if applicable to
the program for which they are enrolling or enrolled.
new text end

new text begin (b) A recipient of a scholarship awarded under this section must:
new text end

new text begin (1) adhere to any applicable participating local employer program requirements; and
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new text begin (2) sign a contract agreeing to fulfill the employment obligation under paragraph (c)
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new text begin (c) A scholarship recipient must fulfill a three-year full-time employment commitment
within the service area of the foundation as listed in subdivision 1, paragraph (d). The
employment may be with the local employer sponsoring the student or any qualified local
employer in a high-demand occupation as defined by the Dakota-Scott Workforce
Development Board. If a recipient of a scholarship fails to fulfill the requirements of this
paragraph, the foundation may convert the scholarship to a loan. Amounts repaid from a
loan must be used to fund scholarship awards under this section.
new text end

new text begin Subd. 4. new text end

new text begin Program eligibility. new text end

new text begin (a) The Dakota-Scott Workforce Development Board
must annually identify eligible undergraduate degree, diploma, or certificate or
industry-recognized credential programs in advanced manufacturing, health care, law
enforcement, hospitality, or other high-demand occupation. The Dakota-Scott Workforce
Development Board must consider data based on a workforce shortage for full-time
employment requiring postsecondary education that is unique to the region, as reported in
the most recent Department of Employment and Economic Development job vacancy survey
data for the economic development region. A workforce shortage area is one in which the
job vacancy rate for full-time employment in a specific occupation in the region is higher
than the state average vacancy rate for that same occupation.
new text end

new text begin (b) By December 1, 2024 and annually through December 1, 2029, the Dakota-Scott
Workforce Development Board must provide a list of eligible programs administered by
each Minnesota state college and university that are eligible for scholarships in the subsequent
year.
new text end

new text begin Subd. 5. new text end

new text begin Employer partnerships. new text end

new text begin The foundation and Minnesota State College and
Universities must establish partnerships with qualified local employers to ensure that 25
percent of the Shakopee area workforce development scholarship is matched with employer
or foundation funds.
new text end

new text begin Subd. 6. new text end

new text begin Scholarship awards. new text end

new text begin (a) The foundation must coordinate available funds and
award scholarships to Minnesota state colleges and universities with programs approved
by the Dakota-Scott Workforce Development Board. Scholarships must be coordinated by
the individual colleges approved by the Dakota-Scott Workforce Development Board and
applied only after all other available tuition waivers and grant and scholarship funding
through a last dollar in model. Scholarships are intended to supplement all other tuition
waivers and grant and scholarship opportunities and to cover the full cost of attendance to
the eligible students.
new text end

new text begin (b) If the appropriated grant is insufficient to award scholarships to all eligible applicants,
priority must first be given to applicants that are program continuing applicants. Priority
must then be given to employer-sponsored applicants.
new text end

new text begin Subd. 7. new text end

new text begin Renewal; cap. new text end

new text begin A student who has been awarded a scholarship may apply in
subsequent academic years until the student completes a qualifying program. A student who
successfully completes an eligible program and the subsequent work period requirement is
eligible for a scholarship for a second program, but total lifetime awards must not to exceed
scholarships for two programs.
new text end

new text begin Subd. 8. new text end

new text begin Local employer scholarships tax credit. new text end

new text begin (a) A local employer is allowed a
credit against the tax due under Minnesota Statutes, chapter 290, equal to the amount of the
local employer's scholarship awarded to an employer-sponsored applicant that is matched
under subdivision 5.
new text end

new text begin (b) The credit allowed to a local employer under this subdivision per scholarship awarded
to an employer-sponsored applicant for a taxable year is limited to the total amount of the
local employer's scholarship awarded to an employer-sponsored applicant.
new text end

new text begin (c) If the amount of credit which a claimant is eligible to receive under this subdivision
exceeds the claimant's tax liability under Minnesota Statutes, chapter 290, the commissioner
of revenue shall refund the excess to the claimant.
new text end

new text begin (d) Credits granted to a partnership, a limited liability company taxed as a partnership,
an S corporation, or multiple owners of property are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or
owner based on their share of the entity's assets or as specially allocated in their
organizational documents or any other executed document, as of the last day of the taxable
year.
new text end

new text begin (e) The commissioner of revenue may use any audit and examination powers under
Minnesota Statutes, chapter 270C or 289A, to the extent necessary to verify that the taxpayer
is eligible for the credit and to assess for the amount of any improperly claimed credit.
new text end

new text begin (f) This subdivision expires after December 31, 2028, except that the expiration of this
subdivision does not affect the commissioner of revenue's authority to audit or power of
examination and assessment for credits claimed under this subdivision.
new text end

new text begin (g) An amount sufficient to pay the refunds required by this section is appropriated to
the commissioner of revenue from the general fund.
new text end

new text begin Subd. 9. new text end

new text begin Report required. new text end

new text begin The foundation must submit an annual report by December
31 of each year regarding the scholarship program to the chairs and ranking minority
members of the legislative committees with jurisdiction over employment and economic
development policy. The first report is due no later than December 31, 2025. The annual
report must describe the following:
new text end

new text begin (1) the number of students receiving a scholarship at each participating college during
the previous calendar year;
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new text begin (2) the number of scholarships awarded for each program and definition of type of
program during the previous calendar year;
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new text begin (3) the number of scholarship recipients who completed a program of study or
certification;
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new text begin (4) the number of scholarship recipients who secured employment by their graduation
date and those who secured employment within three months of their graduation date;
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new text begin (5) a list of the colleges that received funding, the amount of funding each institution
received, and whether all withheld funds were distributed;
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new text begin (6) a list of occupations scholarship recipients are entering;
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new text begin (7) the number of students who were denied a scholarship;
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new text begin (8) a list of participating local employers and amounts of any applicable employer
contributions; and
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new text begin (9) a list of recommendations to the legislature regarding potential program improvements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
that subdivision 8 is effective for taxable years beginning after December 31, 2023, and
before January 1, 2029.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $700,000 in fiscal year 2024 is appropriated from the workforce development fund to
the commissioner of employment and economic development for a grant to the Shakopee
Chamber Foundation for the Shakopee area workforce development scholarship pilot program
in section 1. This is a onetime appropriation and is available until expended.
new text end