1.1 	A bill for an act
1.2 	relating to economic development; making various policy changes; modifying 
1.3 	agency programs; modifying the commissioner's promotional authority; 
1.4 	protecting the commissioner and employees from subpoena; modifying 
1.5 	workforce development outcomes; creating the Workforce Development 
1.6 	Board; amending Minnesota Statutes 2014, sections 116J.035, subdivision 
1.7 	1a; 116J.8738, subdivision 2; 116J.8747, by adding a subdivision; Minnesota 
1.8 	Statutes 2015 Supplement, sections 116J.8738, subdivision 3; 116L.98, 
1.9 	subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 
1.10 	116L; 268A; repealing Minnesota Statutes 2014, section 116L.665.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	ECONOMIC DEVELOPMENT PROGRAMS

1.14 	Section 1. Minnesota Statutes 2014, section 116J.8738, subdivision 2, is amended to 
1.15 	read:
1.16 		Subd. 2.Qualified business. (a) A business is a qualified business if it satisfies the 
1.17 	requirement of this paragraph and is not disqualified under the provisions of paragraph 
1.18 	(b). To qualify, the business must:
1.19 	(1) have operated its trade or business in a city or cities in greater Minnesota for at 
1.20 	least one year before applying under subdivision 3;
1.21 	(2) (1) pay or agree to pay in the future each employee compensation, including 
1.22 	benefits not mandated by law, that on an annualized basis equal at least 120 percent of the 
1.23 	federal poverty level for a family of four;
1.24 	(3) (2) plan and agree to expand its employment in one or more cities in greater 
1.25 	Minnesota by the minimum number of employees required under subdivision 3, paragraph 
1.26 	(c); and
2.1 	(4) (3) have received certification from the commissioner under subdivision 3 that 
2.2 	it is a qualified business.
2.3 	(b) A business is not a qualified business if it is either:
2.4 	(1) primarily engaged in making retail sales to purchasers who are physically present 
2.5 	at the business's location or locations in greater Minnesota;
2.6 	(2) a public utility, as defined in section 336B.01; or
2.7 	(3) primarily engaged in lobbying; gambling; entertainment; professional sports; 
2.8 	political consulting; leisure; hospitality; or professional services provided by attorneys, 
2.9 	accountants, business consultants, physicians, or health care consultants.
2.10 	(c) The requirements in paragraph (a) that the business's operations and expansion 
2.11 	be located in a city do not apply to an agricultural processing facility.

2.12 	Sec. 2. Minnesota Statutes 2015 Supplement, section 116J.8738, subdivision 3, is 
2.13 	amended to read:
2.14 		Subd. 3.Certification of qualified business. (a) A business may apply to 
2.15 	the commissioner for certification as a qualified business under this section. The 
2.16 	commissioner shall specify the form of the application, the manner and times for applying, 
2.17 	and the information required to be included in the application. The commissioner may 
2.18 	impose an application fee in an amount sufficient to defray the commissioner's cost of 
2.19 	processing certifications. Application fees are deposited in the greater Minnesota business 
2.20 	expansion administration account in the special revenue fund. A business must file a copy 
2.21 	of its application with the chief clerical officer of the city at the same time it applies to 
2.22 	the commissioner. For an agricultural processing facility a business located outside the 
2.23 	boundaries of a city, the business must file a copy of the application with the county auditor.
2.24 	(b) The commissioner shall certify each business as a qualified business that:
2.25 	(1) satisfies the requirements of subdivision 2;
2.26 	(2) the commissioner determines would not expand its operations in greater 
2.27 	Minnesota without the tax incentives available under subdivision 4; and
2.28 	(3) enters a business subsidy agreement with the commissioner that pledges to 
2.29 	satisfy the minimum expansion requirements of paragraph (c) within three years or less 
2.30 	following execution of the agreement.
2.31 	The commissioner must act on an application within 90 days after its filing. Failure 
2.32 	by the commissioner to take action within the 90-day period is deemed approval of the 
2.33 	application.
3.1 	(c) The business must increase the number of full-time equivalent employees 
3.2 	in greater Minnesota from the time the business subsidy agreement is executed by two 
3.3 	employees or ten percent, whichever is greater.
3.4 	(d) The city, or a county for an agricultural processing facility a business located 
3.5 	outside the boundaries of a city, in which the business proposes to expand its operations 
3.6 	may file comments supporting or opposing the application with the commissioner. The 
3.7 	comments must be filed within 30 days after receipt by the city or county of the application 
3.8 	and may include a notice of any contribution the city or county intends to make to 
3.9 	encourage or support the business expansion, such as the use of tax increment financing, 
3.10 	property tax abatement, additional city or county services, or other financial assistance.
3.11 	(e) Certification of a qualified business is effective for the seven-year period 
3.12 	beginning on the first day of the calendar month immediately following the date that the 
3.13 	commissioner informs the business of the award of the benefit.

3.14 	ARTICLE 2
3.15 	PROMOTIONAL AUTHORITY

3.16 	Section 1. Minnesota Statutes 2014, section 116J.035, subdivision 1a, is amended to 
3.17 	read:
3.18 		Subd. 1a.Promotional contracts. In order to best carry out duties and 
3.19 	responsibilities and to serve the people of the state in the promotion of tourism, trade, 
3.20 	and economic development, the commissioner may engage in programs and projects, 
3.21 	including solicitations and proposals for programs and projects, jointly with a private 
3.22 	person, firm, corporation or association and. The commissioner  may enter into contracts 
3.23 	under terms to be mutually agreed upon to carry out such these programs and projects not 
3.24 	including acquisition of land or buildings. Contracts may be negotiated and are not subject 
3.25 	to the provisions of chapter 16C relating to competitive bidding.

3.26 	ARTICLE 3
3.27 	SUBPOENAS

3.28 	Section 1. [268A.031] COMMISSIONER AND EMPLOYEES NOT SUBJECT 
3.29 	TO SUBPOENA.
3.30 	The commissioner and employees of the department shall not be subject to subpoena 
3.31 	for purposes of providing testimony regarding any client served under this chapter.

4.1 	ARTICLE 4
4.2 	WORKFORCE DEVELOPMENT PROGRAM OUTCOMES

4.3 	Section 1. Minnesota Statutes 2015 Supplement, section 116L.98, subdivision 3, is 
4.4 	amended to read:
4.5 		Subd. 3.Uniform outcome report card; reporting by commissioner. (a) By 
4.6 	December 31 of each even-numbered year, the commissioner must report to the chairs 
4.7 	and ranking minority members of the committees of the house of representatives and the 
4.8 	senate having jurisdiction over economic development and workforce policy and finance 
4.9 	the following information separately for each of the previous two fiscal or calendar years, 
4.10 	for each program subject to the requirements of subdivision 1:
4.11 	(1) the total number of participants enrolled;
4.12 	(2) the median pre-enrollment wages based on participant wages for the second 
4.13 	through the fifth calendar quarters immediately preceding the quarter of enrollment 
4.14 	excluding those with zero income;
4.15 	(3) the total number of participants with zero income in the second through fifth 
4.16 	calendar quarters immediately preceding the quarter of enrollment;
4.17 	(4) the total number of participants enrolled in training;
4.18 	(5) the total number of participants enrolled in training by occupational group;
4.19 	(6) the total number of participants that exited the program and the average 
4.20 	enrollment duration of participants that have exited the program during the year;
4.21 	(7) the total number of exited participants who completed training;
4.22 	(8) the total number of exited participants who attained a credential;
4.23 	(9) the total number of participants employed during three consecutive quarters 
4.24 	immediately following the quarter of exit, by industry;
4.25 	(10) the median wages of participants employed during three four consecutive 
4.26 	quarters immediately following the quarter of exit;
4.27 	(11) the total number of participants employed during eight consecutive quarters 
4.28 	immediately following the quarter of exit, by industry;
4.29 	(12) the median wages of participants employed during eight consecutive quarters 
4.30 	immediately following the quarter of exit;
4.31 	(13) the total cost of the program;
4.32 	(14) the total cost of the program per participant;
4.33 	(15) the cost per credential received by a participant; and
4.34 	(16) the administrative cost of the program.
5.1 	(b) The report to the legislature must contain participant information by education 
5.2 	level, race and ethnicity, gender, and geography, and a comparison of exited participants 
5.3 	who completed training and those who did not.
5.4 	(c) The requirements of this section apply to programs administered directly by the 
5.5 	commissioner or administered by other organizations under a grant made by the department.

5.6 	ARTICLE 5
5.7 	PAY FOR PERFORMANCE GRANTS

5.8 	Section 1. Minnesota Statutes 2014, section 116J.8747, is amended by adding a 
5.9 	subdivision to read:
5.10 		Subd. 5.Grant administration authority. The state agency administering grants 
5.11 	under this section may offer exemption from sections 16A.28, subdivision 6, and 16B.98, 
5.12 	subdivision 7.

5.13 	ARTICLE 6
5.14 	WORKFORCE INNOVATION AND OPPORTUNITY ACT UPDATES

5.15 	Section 1. [116L.6651] WORKFORCE DEVELOPMENT BOARD.
5.16 		Subdivision 1.Creation; duties. The governor's Workforce Development Board 
5.17 	is created under the authority of the Workforce Innovation and Opportunity Act, United 
5.18 	States Code, title 29, section 3111. The Workforce Development Board serves as 
5.19 	Minnesota's state workforce development board for the purposes of the federal Workforce 
5.20 	Innovation and Opportunity Act and must perform the duties under that act.
5.21 		Subd. 2.Membership. (a) The board is composed of 41 voting members and 
5.22 	14 nonvoting members representing businesses, labor organizations, community-based 
5.23 	organizations, state agencies, and education. Membership terms, compensation of 
5.24 	members, and removal of members are governed by section 15.059.
5.25 	(b) No person shall serve as a member of more than one category described in 
5.26 	paragraph (a).
5.27 	(c) Voting members shall consist of the following:
5.28 	(1) the governor or the governor's designee;
5.29 	(2) one member of the house of representatives appointed by the speaker of the 
5.30 	house and one member of the senate appointed by the majority leader of the senate;
5.31 	(3) 21 representatives of businesses in the state appointed by the governor who:
5.32 	(i) are owners of businesses, chief executives or operating officers of businesses, or 
5.33 	other business executives or employers with optimum policy-making or hiring authority, 
6.1 	and who, in addition, may be members of a local board under United States Code, title 29, 
6.2 	section 3122(b)(2)(A)(i);
6.3 	(ii) represent businesses, including small businesses, or organizations representing 
6.4 	businesses that provide employment opportunities that, at a minimum, include 
6.5 	high-quality, work-relevant training and development in in-demand industry sectors or 
6.6 	occupations in the state; and
6.7 	(iii) are appointed from individuals nominated by state business organizations and 
6.8 	business trade associations;
6.9 	(4) commissioners of the state agencies with primary responsibility for core 
6.10 	programs and other one stop partners identified within the state plan including:
6.11 	(i) the Department of Employment and Economic Development;
6.12 	(ii) Adult Basic Education through the Department of Education; and
6.13 	(iii) the Department of Human Services; and
6.14 	(5) other voting members appointed by the governor, including:
6.15 	(i) two chief elected officials, collectively representing cities and counties;
6.16 	(ii) six representatives of labor organizations, including:
6.17 	(A) representatives of labor organizations who have been nominated by state labor 
6.18 	federations; and
6.19 	(B) a member of a labor organization or a training director from a joint labor 
6.20 	and management apprenticeship program, or if no joint program exists in the state, a 
6.21 	representative of an apprenticeship program in the state;
6.22 	(iii) two representatives of community-based organizations that have demonstrated 
6.23 	experience and expertise in addressing the employment, training, or education needs of 
6.24 	individuals with barriers to employment, including organizations that serve veterans or that 
6.25 	provide or support competitive, integrated employment for individuals with disabilities; and
6.26 	(iv) four officials responsible for education programs in the state, including chief 
6.27 	executive officers of community colleges and other institutions of higher education, 
6.28 	including:
6.29 	(A) chancellor, Minnesota State Colleges and Universities;
6.30 	(B) president, University of Minnesota;
6.31 	(C) president, private postsecondary; and
6.32 	(D) representative of career and technical education.
6.33 	(d) The 14 nonvoting members of the board shall be appointed by the governor and 
6.34 	consist of one of each of the following:
6.35 	(1) a representative of Adult Basic Education;
6.36 	(2) a representative of public libraries;
7.1 	(3) a representative of Women's Economic Security Act;
7.2 	(4) the chair of the Minnesota Workforce Council Association;
7.3 	(5) the commissioner of the Department of Labor and Industry;
7.4 	(6) the commissioner of the Office of Higher Education;
7.5 	(7) the commissioner of the Department of Corrections;
7.6 	(8) the commissioner of Management and Budget;
7.7 	(9) two representatives of community-based organizations;
7.8 	(10) a district superintendent of a public school district;
7.9 	(11) a representative of school-based service learning;
7.10 	(12) the minority leader of the house of representatives; and
7.11 	(13) the minority leader of the senate.
7.12 		Subd. 4.Board meetings. (a) The board shall hold regular in-person meetings at 
7.13 	least quarterly and as often as necessary to perform the duties outlined in the statement of 
7.14 	authority and bylaws. Meetings shall be called by the chair. Special meetings may be called 
7.15 	as needed. Notices of all meetings shall be made at least 48 hours prior to the meeting date.
7.16 	(b) The chairperson shall approve an agenda for each meeting. Members shall 
7.17 	submit a written request for consideration of an agenda item no less than 24 hours in 
7.18 	advance of the meeting. Members of the public may submit a written request within 48 
7.19 	hours of a meeting in order to be considered for inclusion on the agenda. Those members 
7.20 	of the public in attendance at any meeting of the board may address the board only with 
7.21 	the approval or at the request of the chair.
7.22 	(c) All meeting notices must be posted on the board's Web site. All meetings of the 
7.23 	board and committees must be open to the public. The board must make available to 
7.24 	the public, on a regular basis through electronic means and open meetings, information 
7.25 	regarding the activities of the board, information regarding membership and, on request, 
7.26 	minutes of formal meetings of the board.
7.27 	(d) For the purpose of conducting business before the board at a duly called meeting, 
7.28 	a simple majority of the membership, excluding any vacancies, shall constitute a quorum.
7.29 		Subd. 5.Executive committee duties. The executive committee must, in 
7.30 	cooperation with the operations committee and with advice and input of local workforce 
7.31 	boards and other stakeholders as appropriate, develop performance standards for the 
7.32 	state workforce centers. By January 15, 2017, and each odd-numbered year thereafter, 
7.33 	the executive committee shall submit a report to the senate and house of representatives 
7.34 	committees with jurisdiction over workforce development programs regarding the 
7.35 	performance and outcomes of the workforce centers. The report must provide 
8.1 	recommendations regarding workforce center funding levels and sources, program 
8.2 	changes, and administrative changes.
8.3 		Subd. 6.Staffing. The Department of Employment and Economic Development 
8.4 	must provide staff to the board necessary to carry out the duties of the board. The board 
8.5 	may ask for assistance from other units of state government as it requires in order to 
8.6 	fulfill its duties and responsibilities.
8.7 		Subd. 7.Funding. The commissioner shall develop recommendations on a funding 
8.8 	formula for allocating Workforce Innovation and Opportunity Act funds to the board with 
8.9 	a minimum allocation of $350,000 per year.

8.10 	Sec. 2.  REPEALER.
 8.11 	Minnesota Statutes 2014, section 116L.665, is repealed.