SF 2434

as introduced - 90th Legislature (2017 - 2018) Posted on 10/27/2017 01:53pm

A bill for an act
relating to workforce development; modifying the use of workforce development
funds; requiring a report; amending Minnesota Statutes 2016, sections 116L.17,
subdivision 2; 116L.19, by adding subdivisions; 116L.20, subdivision 2, by adding
a subdivision; 116L.98, subdivisions 1, 3, 4, 5, 7; proposing coding for new law
in Minnesota Statutes, chapter 116L.

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

Section 1.

Minnesota Statutes 2016, section 116L.17, subdivision 2, is amended to read:

Subd. 2.

Grants.

The board shall make grants to workforce development areas or other
eligible organizations to provide services to dislocated workers as follows:

(a) The board shall allocate funds available for the purposes of this section in its discretion
to respond to substantial layoffs and plant closings.

(b) The board deleted text begin shall deleted text end new text begin may new text end regularly allocate funds to provide services to individual
dislocated workers or small groups. deleted text begin The initial allocation for this purpose must be 50 percent
of the deposits and transfers into the workforce development fund, less any collection costs
paid out of the fund and any amounts appropriated by the legislature from the workforce
development fund for programs other than the state dislocated worker program.
deleted text end

deleted text begin (c) Following the initial allocation, the board may consider additional allocations to
provide services to individual dislocated workers. deleted text end The board's decision to allocate deleted text begin additional deleted text end
funds shall be based on relevant economic indicators including: the number of substantial
layoffs to date, notices of substantial layoffs for the remainder of the fiscal year, evidence
of declining industries, the number of permanently separated individuals applying for
unemployment benefits by workforce development area, and the number of individuals
exhausting unemployment benefits by workforce development area. The board must also
consider deleted text begin expenditures of allocations to workforce development areas under paragraph (b)
made during the first two quarters of the fiscal year deleted text end new text begin funds allocated by regional and local
workforce development boards new text end and federal resources that have been or are likely to be
allocated to Minnesota for the purposes of serving dislocated workers affected by substantial
layoffs or plant closings deleted text begin ; except that this sentence does not apply in fiscal year 2011 deleted text end .

deleted text begin (d) deleted text end new text begin (c) new text end The board may, in its discretion, allocate funds carried forward from previous
years under subdivision 9 for large, small, or individual layoffs.

Sec. 2.

Minnesota Statutes 2016, section 116L.19, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Career pathways training strategies. new text end

new text begin "Career pathways training strategies"
means a combination of rigorous and high-quality education, training, and other services
that:
new text end

new text begin (1) aligns with the skill needs of industries in the regional or local economy;
new text end

new text begin (2) prepares an individual to be successful in any of a full range of secondary or
postsecondary education options;
new text end

new text begin (3) includes counseling and to support an individual in achieving the individual's
education and career goals;
new text end

new text begin (4) includes, as appropriate, education offered concurrently with and in the same context
as workforce preparation activities and training for a specific occupation or occupational
cluster;
new text end

new text begin (5) organizes education, training, and other services to meet the particular needs of an
individual in a manner that accelerates the educational and career advancement of the
individual to the extent practicable;
new text end

new text begin (6) enables an individual to attain a secondary school diploma or its recognized equivalent
and at least one recognized postsecondary credential; and
new text end

new text begin (7) helps an individual enter or advance within a specific occupation or occupational
cluster.
new text end

Sec. 3.

Minnesota Statutes 2016, section 116L.19, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Integrated education and training strategies. new text end

new text begin "Integrated education and
training strategies" means a service approach that provides adult education and literacy
activities concurrently and contextually with workforce preparation activities and workforce
training for a specific occupation or occupational cluster for the purpose of educational and
career advancement.
new text end

Sec. 4.

Minnesota Statutes 2016, section 116L.19, is amended by adding a subdivision to
read:

new text begin Subd. 8a. new text end

new text begin Regional workforce development board. new text end

new text begin "Regional workforce development
board" means the governance body for a regional workforce development area responsible
for distribution of the region's workforce development funds, as identified in the strategic
plan required by the federal Workforce Innovation and Opportunity Act.
new text end

Sec. 5.

Minnesota Statutes 2016, section 116L.19, is amended by adding a subdivision to
read:

new text begin Subd. 8b. new text end

new text begin Sector partnership. new text end

new text begin "Sector partnership" means a workforce collaborative,
convened by or acting in partnership with a regional or local workforce development board,
that organizes key stakeholders in an industry cluster into a working group that focuses on
the shared goals and human resources needs of the industry cluster and that includes the
participation of the following individuals at the appropriate stage of development of the
partnership:
new text end

new text begin (1) representatives of multiple businesses or other employers in the industry cluster,
including small and medium-sized employers when practicable;
new text end

new text begin (2) one or more representatives of a recognized state labor organization or central labor
council, or another labor representative, as appropriate; and
new text end

new text begin (3) one or more representatives of an institution of higher education with, or another
provider of, education or training programs that support the industry cluster.
new text end

Sec. 6.

Minnesota Statutes 2016, section 116L.19, is amended by adding a subdivision to
read:

new text begin Subd. 10. new text end

new text begin Strategic plan. new text end

new text begin "Strategic plan" is a summary of strategies to address a regional
area's workforce challenges, consistent with the requirements of the federal Workforce
Innovation and Opportunity Act. It includes identifying top in-demand sectors, mapping
occupational progressions in these sectors along with related labor market information,
conducting demographic analyses of the region's workforce, identifying priority service
populations, and any supportive data.
new text end

Sec. 7.

Minnesota Statutes 2016, section 116L.19, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Training. new text end

new text begin "Training" means occupational skills training and does not include
job search and related services.
new text end

Sec. 8.

Minnesota Statutes 2016, section 116L.20, subdivision 2, is amended to read:

Subd. 2.

Disbursement new text begin and oversight new text end of special assessment funds.

(a) The money
collected under this section shall be deposited in the state treasury and credited to the
workforce development fund to provide for deleted text begin employment and deleted text end training deleted text begin programs deleted text end new text begin investments
to meet workforce needs of regional economies new text end . The workforce development fund is created
as a special account in the state treasury.

(b) deleted text begin All money in the fund not otherwise appropriated or transferred is appropriated to
the Job Skills Partnership Board for the purposes of section 116L.17 and as provided for in
paragraph (d). The board must act as the fiscal agent for the money and must disburse that
money for the purposes of section 116L.17, not allowing the money to be used for any other
obligation of the state. deleted text end new text begin Of the money collected under this section, ....... percent shall be
allocated to the commissioner for the following purposes:
new text end

new text begin (1) administration, oversight, and support of regional workforce development fund
investments, including establishing criteria, requirements, and outcome measures for local
and regional sector partnerships and career pathways training strategies; strategic planning,
professional development, and providing technical assistance;
new text end

new text begin (2) conducting rapid response activities as outlined in section 116L.17, subdivision 5;
new text end

new text begin (3) administering youth programs; and
new text end

new text begin (4) administering vocational rehabilitation programs.
new text end

new text begin Remaining funds after the allocation in clauses (1) to (4) shall be distributed annually
to regional workforce development areas, as designated by the federal Workforce Innovation
and Opportunity Act, by a formula calculated by the commissioner in consultation with
local elected officials and workforce development boards. The commissioner shall enter
into contracts with each regional workforce development board to fulfill the requirements
in this chapter. When determining the distribution formula, the commissioner must consider
current economic and demographic conditions and trends in each area, including
unemployment rates and the number of low-skilled workers. The commissioner, in
consultation with local elected officials and workforce development boards, shall evaluate
the formula every two years and make adjustments when necessary.
new text end

new text begin (c) new text end All money in the workforce development fund shall be deposited, administered, and
disbursed in the same manner and under the same conditions and requirements as are
provided by law for the other special accounts in the state treasury, except that all interest
or net income resulting from the investment or deposit of money in the fund shall accrue
to the fund for the purposes of the fund.

deleted text begin (c) deleted text end new text begin (d) new text end Reimbursement for costs related to collection of the special assessment shall be
in an amount negotiated between the commissioner and the United States Department of
Labor.

deleted text begin (d) If the board determines that the conditions of section 116L.05, subdivision 5, have
been met, the board may use funds for the purposes outlined in section 116L.04, or to provide
incumbent worker training services under section 116L.18.
deleted text end

Sec. 9.

Minnesota Statutes 2016, section 116L.20, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Regional allocation of workforce development funds. new text end

new text begin (a) Distribution of
workforce development funds to regional workforce development boards are contingent
upon submission and approval by the commissioner of strategic plans required by the federal
Workforce Innovation and Opportunity Act.
new text end

new text begin (b) Upon approval by the commissioner of the strategic plans, each regional workforce
development board shall be awarded its share of funds as designated by subdivision 2, and
shall work in consultation with the local workforce boards within the regional area to
distribute workforce development funds within the following guidelines:
new text end

new text begin (1) at least ....... percent for adult career pathways training strategies and adult integrated
education and training strategies, distributed through competitive grant processes, with
service priority given to recipients of public assistance, other low-income individuals, and
individuals who are deficient in basic skills. new text end new text begin Training programs should support regional
strategic goals but may be operated locally. Local workforce boards are eligible to compete
for these grant dollars;
new text end

new text begin (2) up to ....... percent for coordinating and staffing sector partnerships, as identified in
the strategic plan;
new text end

new text begin (3) remaining funds may be used at the discretion of the regional and local boards;
new text end

new text begin (4) the regional board may distribute funds to local boards to operate training programs
and conduct activities related to the goals set out in the region's strategic plan. Local
investments should align with state and regional workforce priorities and ensure
nonduplication of state and federal workforce development services; and
new text end

new text begin (5) workforce development funds may not be used for infrastructure or capital expenses.
new text end

new text begin (c) Any funds not allocated, obligated, or expended in a fiscal year shall be available
for allocation, obligation, and expenditure in the following fiscal year.
new text end

new text begin (d) Each regional board must report to the commissioner on the performance of the
board's investments by December 31 of every even-numbered year. Reporting data should
be in line with the requirements in section 116L.98. Regional boards shall share information
with the commissioner necessary to fulfill the reporting and evaluation requirements under
this chapter.
new text end

Sec. 10.

new text begin [116L.21] DUTIES OF THE COMMISSIONER.
new text end

new text begin In addition to the duties outlined in this chapter, the commissioner shall perform the
following duties related to the workforce development fund:
new text end

new text begin (1) establish program requirements, in consultation with Adult Basic Education, for
multiple types of career pathways training strategies aimed at adults of various skill levels,
including on-ramps and bridge programs. These requirements shall be shared with local
and regional workforce development boards;
new text end

new text begin (2) monitor the investments made by local and regional workforce development boards
for fiscal soundness; and
new text end

new text begin (3) track the outcomes and evaluate the performance of all regional workforce
development fund grants, awards, and investments. This includes issuing a report, in
consultation with the governor's workforce development board, on each regional area's
performance every two years. The report shall include: an accounting of all workforce
development fund allocations made by each regional board, recommendations for how
future local investments could be most effective, the total amount of workforce development
dollars disbursed, and the projected fund balance for the next biennium. By January 15,
2019, and each odd-numbered year thereafter, the commissioner shall present these evaluation
reports to the senate and house of representatives committees with jurisdiction over workforce
development and make the reports available on the department's Web site.
new text end

Sec. 11.

Minnesota Statutes 2016, section 116L.98, subdivision 1, is amended to read:

Subdivision 1.

Requirements.

The commissioner shall develop and implement a uniform
outcome measurement and reporting system for adult workforce-related programs funded
in whole or in part by state funds. For the purpose of this section, "workforce-related
programs" means all education and training programs administered by the commissioner
and includes programs and services administered by the commissioner new text begin or funded by
workforce development fund dollars new text end and provided to individuals enrolled in adult basic
education under section 124D.52 and the Minnesota family investment program under
chapter 256J.

Sec. 12.

Minnesota Statutes 2016, section 116L.98, subdivision 3, is amended to read:

Subd. 3.

Uniform outcome report card; reporting by commissioner.

(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 separately for each of the previous two fiscal or calendar years, for each program
subject to the requirements of subdivision 1:

(1) the total number of participants enrolled;

(2) the median pre-enrollment wages based on participant wages for the second through
the fifth calendar quarters immediately preceding the quarter of enrollment excluding those
with zero income;

(3) the total number of participants with zero income in the second through fifth calendar
quarters immediately preceding the quarter of enrollment;

(4) the total number of participants enrolled in training;

(5) the total number of participants enrolled in training by occupational group;

(6) the total number of participants that exited the program and the average enrollment
duration of participants that have exited the program during the year;

(7) the total number of exited participants who completed training;

(8) the total number of exited participants who attained a credential;

(9) the total number of participants employed during three consecutive quarters
immediately following the quarter of exit, by industry;

(10) the median wages of participants employed during three consecutive quarters
immediately following the quarter of exit;

(11) the total number of participants employed during eight consecutive quarters
immediately following the quarter of exit, by industry;

(12) the median wages of participants employed during eight consecutive quarters
immediately following the quarter of exit;

(13) the total cost of the program;

(14) the total cost of the program per participant;

(15) the cost per credential received by a participant; and

(16) the administrative cost of the program.

(b) 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 training and those who did not.

(c) The requirements of this section apply to programs administered directly by the
commissioner new text begin , funded by the workforce development fund, new text end or administered by other
organizations under a grant made by the department.

Sec. 13.

Minnesota Statutes 2016, section 116L.98, subdivision 4, is amended to read:

Subd. 4.

Data to commissioner; uniform report card.

(a) A recipient of a future or
past grant or direct appropriation made by or through the department new text begin , including all recipients
of workforce development funds, new text end must report data to the commissioner by September 1 of
each even-numbered year on each of the items in subdivision 3 for each program it
administers except wages and number employed, which the department shall provide. The
data must be in a format prescribed by the commissioner.

(b) Beginning July 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.

Sec. 14.

Minnesota Statutes 2016, section 116L.98, subdivision 5, is amended to read:

Subd. 5.

Information.

(a) The information collected and reported under subdivisions 3
and 4 shall be made available on the department's Web site.

(b) The commissioner must provide analysis of the data required under subdivision 3.

(c) The analysis under paragraph (b) must also include an executive summary of program
outcomes, including but not limited to enrollment, training, credentials, pre- and post-program
employment and wages, and a comparison of program outcomes by participant characteristics. new text begin
The analysis must be broken down by regional workforce development areas.
new text end

(d) The data required in the comparative analysis under paragraph (c) must be presented
in both written and graphic format.

Sec. 15.

Minnesota Statutes 2016, section 116L.98, subdivision 7, is amended to read:

Subd. 7.

Workforce program net impact analysis.

(a) By January 15, 2015, the
commissioner must report to the committees of the house of representatives and the senate
having jurisdiction over economic development and workforce policy and finance on the
results of the net impact pilot project already underway as of the date of enactment of this
section.

(b) The commissioner shall contract with an independent entity to conduct an ongoing
net impact analysis of the programs included in the net impact pilot project under paragraph
(a), career pathways programs, new text begin any program funded by the workforce development fund,
new text end and any other programs deemed appropriate by the commissioner. The net impact
methodology used by the independent entity under this paragraph must be based on the
methodology and evaluation design used in the net impact pilot project under paragraph
(a).

(c) By January 15, 2017, and every four years thereafter, the commissioner must report
to 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 paragraph (b):

(1) the net impact of workforce services on individual employment, earnings, and public
benefit usage outcomes; and

(2) a cost-benefit analysis for understanding the monetary impacts of workforce services
from the participant and taxpayer points of view.

The report under this paragraph must be made available to the public in an electronic
format on the Department of Employment and Economic Development's Web site.

(d) The department is authorized to create and maintain data-sharing agreements with
other departments, including corrections, human services, and any other department that
are necessary to complete the analysis. The department shall supply the information collected
for use by the independent entity conducting net impact analysis pursuant to the data practices
requirements under chapters 13, 13A, 13B, and 13C.