Minnesota Session Laws - 2016, Regular Session

CHAPTER 86--S.F.No. 2614

An act

relating to higher education; workforce development; clarifying the dual training grant program;

amending Minnesota Statutes 2015 Supplement, sections 136A.246; 175.45, subdivision 1.

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

Section 1.

Minnesota Statutes 2015 Supplement, section 136A.246, is amended to read:

136A.246 DUAL TRAINING COMPETENCY GRANTS.

Subdivision 1.

Program created.

The commissioner 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 begin An individual must, no later than the commencement of the training, be an employee of the employer seeking a grant to train that individual. new text end

Subd. 2.

Eligible grantees.

An employer or an organization representing the employer is eligible to apply for a grant to train employees if 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. deleted text begin Employees who have previously received a grant under this program are not eligible to receive another grant. deleted text end new text begin An employee must receive an industry-recognized degree, certificate, or credential upon successful completion of the training. new text end

Subd. 3.

Training institution or program.

deleted text begin Prior to applying for a grant, deleted text end The employer must have an agreement with a training institution or program to provide the employee competency standard training new text begin prior to the grant award new text end . The training may be provided by any institution or program having trainers qualified to instruct on the competency standard. new text begin The Office of Higher Education and the Department of Labor and Industry must cooperate in maintaining an inventory of degree, certificate, and credential programs that provide training to meet competency standards. The inventory must be posted on each agency's Web site with contact information for each program by September 1, 2016. The postings must be updated periodically. new text end

Subd. 4.

Application.

Applications must be made to the commissioner on a form provided by the commissioner. The commissioner must, to the extent possible, 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:

(1) the projected number of employee trainees;

new text begin (2) the number of projected employee trainees who graduated from high school or passed the GED test in the current or immediately preceding calendar year; new text end

deleted text begin (2) deleted text end new text begin (3) new text end the competency standard for which training will be provided;

deleted text begin (3) any deleted text end new text begin (4) the new text end credential the employee will receive upon completion of training;

deleted text begin (4) deleted text end new text begin (5) new text end 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;

deleted text begin (5) deleted text end new text begin (6) new text end the period of the training; and

deleted text begin (6) deleted text end new text begin (7) new text end the cost of the training charged by the training institution or program and certified by the institution or program. new text begin The cost of training includes tuition, fees, and required books and materials. new text end

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

Subd. 5.

Grant criteria.

new text begin (a) Except as provided in this subdivision, the commissioner shall award grants to employers solely for training employees who graduated from high school or passed GED tests in the current or immediately preceding calendar year. new text end

new text begin (b) If there are not sufficient eligible applications satisfying paragraph (a), the commissioner may award grants to applicants to train employees who do not meet the requirements of paragraph (a). new text end

new text begin (c) new text end The commissioner shall, to the extent deleted text begin there are sufficient applications deleted text end new text begin possible after complying with paragraph (a) new text end , make at least an new text begin approximately new text end 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.

new text begin (d) new text end In determining the award of grants, the commissioner must consider, among other factors:

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

(2) the competency standards developed by the commissioner of labor and industry as part of the Minnesota PIPELINE Project;

(3) the per employee cost of training;

(4) the additional employment opportunities for employees because of the training;

(5) new text begin the on-the-job training the employee receives; new text end

new text begin (6) new text end projected increases in compensation for employees receiving the training; and

deleted text begin (6) deleted text end new text begin (7) new text end the amount of employer training cost match, if required, on both a per employee and aggregate basis.

Subd. 6.

Employer match.

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.

Subd. 7.

Payment of grant.

deleted 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. deleted text end

new text begin (a) The commissioner shall pay the grant to the employer after the employer presents satisfactory evidence to the commissioner that the employer has paid the training institution or program. new text end

new text begin (b) If an employer demonstrates that it is not able to pay for the training in advance, the commissioner shall make grant payments directly to the training institution or program. new text end

Subd. 8.

Grant amounts.

new text begin (a) new text end The maximum grant for an application is $150,000. deleted text begin The maximum cost of training payable by the deleted text end new text begin A new text end grant may not exceed $6,000 new text begin per year for a maximum of four years new text end per employee.

deleted text begin A grant for a particular employee must be reduced by the amounts of any federal Pell grant received, 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. deleted text end

new text begin (b) An employee who is attending an eligible institution must apply for Pell and state grants as a condition of payment for training that employee under this section. new text end

Subd. 9.

Reporting.

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. At a minimum, the report must include:

(1) research and analysis on the costs and benefits of the grants for employees and employers;

(2) the number of employees who commenced training and the number who completed training; and

(3) recommendations, if any, for changes to the program.

Sec. 2.

Minnesota Statutes 2015 Supplement, section 175.45, subdivision 1, is amended to read:

Subdivision 1.

Duties; goal.

The commissioner of labor and industry shall identify competency standards for dual training. The goal of dual training is to provide deleted text begin current deleted text end 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 begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Presented to the governor April 25, 2016

Signed by the governor April 25, 2016, 11:29 a.m.