SF 5

3rd Engrossment - 89th Legislature (2015 - 2016) Posted on 04/17/2015 03:14pm

A bill for an act
relating to workforce development; requiring the commissioner of labor and
industry to identify competency standards for dual training; creating a dual
training competency grant program; appropriating money; proposing coding for
new law in Minnesota Statutes, chapters 116L; 175.

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

Section 1.

new text begin [116L.31] DUAL TRAINING COMPETENCY GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program created. new text end

new text begin The commissioner of employment and economic
development shall make grants for the training of employees to achieve the competency
standard for an occupation identified by the commissioner of labor and industry under
section 175.45 and Laws 2014, chapter 312, article 3, section 21. "Competency standard"
has the meaning given in section 175.45, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Eligible grantees. new text end

new text begin An employer or an organization representing the
employer is eligible to apply for a grant to train employees if: (1) the employer has set
appropriate goals to increase the diversity of its workforce; and (2) the employer has an
employee who is in or is to be trained to be in an occupation for which a competency
standard has been identified and the employee has not attained the competency standard
prior to the commencement of the planned training. Training need not address all aspects
of a competency standard but may address only the competencies of a standard that an
employee is lacking.
new text end

new text begin Subd. 3. new text end

new text begin Training institution or program. new text end

new text begin Prior to applying for a grant, the
employer must have an agreement with a training institution or program to provide the
employee competency standard training. The training may be provided by any institution
or program having trainers qualified to instruct on the competency standard.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin Applications must be made to the commissioner on a form
provided by the commissioner. The commissioner must make best efforts to make
the application form as short and simple to complete as is reasonably possible. The
commissioner shall establish a schedule for applications and grants. The application
must include, without limitation:
new text end

new text begin (1) the projected number of employee trainees;
new text end

new text begin (2) the competency standard for which training will be provided;
new text end

new text begin (3) any credential the employee will receive upon completion of training;
new text end

new text begin (4) the name and address of the training institution or program and a signed
statement by the institution or program that it is able and agrees to provide the training;
new text end

new text begin (5) the period of the training; and
new text end

new text begin (6) the cost of the training charged by the training institution or program and certified
by the institution or program.
new text end

new text begin An application may be made for training of employees of multiple employers either
by the employers or by an organization on their behalf.
new text end

new text begin Subd. 5. new text end

new text begin Grant criteria. new text end

new text begin The commissioner shall, to the extent there are sufficient
applications, make at least an equal dollar amount of grants for training for employees
whose work site is projected to be outside the metropolitan area as defined in section
473.121, subdivision 2, as for employees whose work site is projected to be within the
metropolitan area. In determining the award of grants, the commissioner must consider,
among other factors:
new text end

new text begin (1) the aggregate state and regional need for employees with the competency to
be trained;
new text end

new text begin (2) the per employee cost of training;
new text end

new text begin (3) the additional employment opportunities for employees because of the training;
new text end

new text begin (4) projected increases in compensation for employees receiving the training; and
new text end

new text begin (5) the amount of employer training cost match, if required, on both a per employee
and aggregate basis.
new text end

new text begin Subd. 6. new text end

new text begin Employer match. new text end

new text begin A large employer must pay for at least 25 percent of
the training institution's or program's charge for the training to the training institution or
program. For the purpose of this subdivision, a "large employer" means a business with
more than $25,000,000 in annual revenue in the previous calendar year.
new text end

new text begin Subd. 7. new text end

new text begin Payment of grant. new text end

new text begin The commissioner shall make grant payments to the
training institution or program in a manner determined by the commissioner after receiving
notice from the institution or program that the employer has paid the employer match.
new text end

new text begin Subd. 8. new text end

new text begin Grant amounts. new text end

new text begin The maximum amount of a grant may not exceed $.....
The maximum grant per employee trained under a grant may not exceed $.....
new text end

new text begin A grant for a particular employee must be reduced by the amounts of any federal Pell
grant or state grant the employee is eligible to receive for the training and an employee
must apply for those grants as a condition of payment for training that employee under
this section.
new text end

new text begin Subd. 9. new text end

new text begin Reporting. new text end

new text begin Commencing in 2017, the commissioner shall annually by
February 1 report on the activity of the grant program for the preceding fiscal year to the
chairs of the legislative committees with jurisdiction over workforce policy and finance.
new text end

new text begin The report must, at a minimum, include:
new text end

new text begin (1) research and analysis on the costs, return on investment, and benefits of the
grants for employees, employers, training institutions, and the state;
new text end

new text begin (2) the number of employees who commenced training and the number who
completed training;
new text end

new text begin (3) report the number of women and minorities who commence training and the
number who complete training; and
new text end

new text begin (4) recommendations, if any, for amendments to the grant program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 2.

new text begin [175.45] COMPETENCY STANDARDS FOR DUAL TRAINING.
new text end

new text begin Subdivision 1. new text end

new text begin Duties; goal. new text end

new text begin The commissioner of labor and industry shall identify
competency standards for dual training. The goal of dual training is to provide current
employees of an employer with training to acquire competencies that the employer
requires. The standards shall be identified for employment in occupations in advanced
manufacturing, health care services, information technology, and agriculture. Competency
standards are not rules and are exempt from the rulemaking provisions of chapter 14, and
the provisions in section 14.386 concerning exempt rules do not apply.
new text end

new text begin Subd. 2. new text end

new text begin Definition; competency standard. new text end

new text begin For purposes of this section,
"competency standards" means the specific knowledge and skills necessary for a particular
occupation.
new text end

new text begin Subd. 3. new text end

new text begin Competency standard identification process. new text end

new text begin In identifying competency
standards, the commissioner shall consult with the commissioner of employment
and economic development and convene recognized industry experts, representative
employers, higher education institutions, and representatives of labor to assist in
identifying credible competency standards. Competency standards must be consistent
with, to the extent available and practical, recognized international and national standards.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The commissioner shall:
new text end

new text begin (1) identify competency standards for entry level and higher skill levels;
new text end

new text begin (2) verify the competency standards and skill levels and their transferability by
subject matter expert representatives of each respective industry;
new text end

new text begin (3) create and execute a plan for dual training outreach, development, and awareness,
including awareness of disenfranchised communities in the metropolitan area;
new text end

new text begin (4) develop models for Minnesota educational institutions to engage in providing
education and training to meet the competency standards established;
new text end

new text begin (5) encourage participation by employers and labor in the standard identification
process for occupations in their industry; and
new text end

new text begin (6) align dual training competency standards with other workforce initiatives.
new text end

new text begin Subd. 5. new text end

new text begin Notification. new text end

new text begin The commissioner must communicate identified competency
standards to the commissioner of employment and economic development for the purpose
of the dual training competency grant program under section 116L.31. The commissioner
of labor and industry shall maintain the competency standards on the department's Web site.
new text end

Sec. 3. new text begin DUAL TRAINING COMPETENCY GRANTS; APPROPRIATION.
new text end

new text begin $....... in fiscal year 2016 and $....... in fiscal year 2017 are appropriated from the
general fund to the commissioner of employment and economic development for the
purpose of making training grants under Minnesota Statutes, section 116L.31.
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated in fiscal year 2016 from the general fund to the commissioner
of labor and industry for identification of competency standards for dual training under
Minnesota Statutes, section 175.45.
new text end