1.1                          A bill for an act 
  1.2             relating to economic development; creating a program 
  1.3             to retain and create jobs; appropriating money; 
  1.4             proposing coding for new law in Minnesota Statutes, 
  1.5             chapter 116J.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [116J.671] [DEFINITIONS.] 
  1.8      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  1.9   section and section 116J.672, the terms defined in this section 
  1.10  have the meanings given them.  
  1.11     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
  1.12  commissioner of employment and economic development.  
  1.13     Subd. 3.  [METROPOLITAN AREA.] "Metropolitan area" has the 
  1.14  meaning given in section 473.121, subdivision 2.  
  1.15     Sec. 2.  [116J.672] [EMPLOYER WAGE ASSISTANCE GRANTS.] 
  1.16     Subdivision 1.  [PROGRAM CREATED.] The commissioner may 
  1.17  make grants to eligible employers as described in subdivision 2 
  1.18  to subsidize wages and benefits for eligible jobs as described 
  1.19  in subdivision 3 for the purpose of retaining and creating jobs 
  1.20  if the commissioner finds that the jobs will not be created or 
  1.21  retained without the subsidy.  Grants may only be used for jobs 
  1.22  located in Minnesota outside of the metropolitan area.  
  1.23     Subd. 2.  [ELIGIBLE EMPLOYERS.] An employer is eligible to 
  1.24  apply to the commissioner for a grant under this section if the 
  1.25  employer can show that it will not be able to create or retain 
  2.1   jobs without a grant because it: 
  2.2      (1) is a start-up business that requires skilled workers at 
  2.3   a salary that the business can show it would have substantial 
  2.4   difficulty affording during the start-up stage, but not 
  2.5   thereafter; 
  2.6      (2) is in a short-term downturn of a business cycle with 
  2.7   good prospects of emerging from the cycle as a going concern; or 
  2.8      (3) is expanding and the expansion requires skilled 
  2.9   employees that the business can show it would have substantial 
  2.10  difficulty in affording during the expansion, but not thereafter.
  2.11     Subd. 3.  [ELIGIBLE JOBS.] To be eligible for a grant under 
  2.12  this section, a job must pay total compensation, including 
  2.13  benefits not mandated by law, on an annualized basis equal to or 
  2.14  greater than 110 percent of the federal poverty guidelines for a 
  2.15  family of four.  Jobs in retail sales or casino operations are 
  2.16  not eligible jobs.  
  2.17     Subd. 4.  [GRANT APPLICATION PROCESS.] The commissioner 
  2.18  shall operate a grant application process and provide 
  2.19  application forms to employers upon request.  The application 
  2.20  must specifically identify each job for which a grant is sought 
  2.21  and facts sufficient to demonstrate that the employer is an 
  2.22  eligible employer under subdivision 2 and the job is an eligible 
  2.23  job under subdivision 3. 
  2.24     Subd. 5.  [GRANT CRITERIA.] The commissioner shall award 
  2.25  grants based on the following criteria: 
  2.26     (1) the likelihood that jobs will be retained or created 
  2.27  because of a subsidy; 
  2.28     (2) the effect of the job retention or creation on the 
  2.29  community where the jobs are located and surrounding area; 
  2.30     (3) the availability of other jobs in the locale; and 
  2.31     (4) that the grant is prudent based on the economic 
  2.32  viability of the business based on historical financial 
  2.33  information, business plans, cash flow projections, current 
  2.34  orders, and other information the commissioner may request. 
  2.35     In awarding grants, the commissioner must attempt to 
  2.36  achieve an equal geographic distribution of awards throughout 
  3.1   the nonmetropolitan areas of the state.  Preference must be 
  3.2   given to grants for manufacturing jobs.  
  3.3      Subd. 6.  [GRANT AWARDS.] An employer may not receive more 
  3.4   than $....... in grants.  A grant for one job may not exceed 
  3.5   $10,400, consisting of a maximum of $4 an hour in wage subsidy 
  3.6   and a maximum of $1 an hour in benefits subsidy.  A grant for a 
  3.7   particular job may not be for a period exceeding 12 consecutive 
  3.8   months.  The commissioner may award a grant for less than the 
  3.9   per employer or per employee maximum and for less than 12 months 
  3.10  if the commissioner determines a lower amount or lesser duration 
  3.11  award is appropriate to achieve the greatest job retention and 
  3.12  creation.  
  3.13     Subd. 7.  [AUDITS, EXAMINATIONS, INSPECTIONS.] The 
  3.14  commissioner may make audits, examinations, and inspections of 
  3.15  the books, records, and facilities of an employer necessary to 
  3.16  ensure the proper use of grant funds.  An employer must, as a 
  3.17  condition of receiving a grant, agree to cooperate in those 
  3.18  audits, examinations, and inspections.  
  3.19     Subd. 8.  [REPAYMENT OF GRANT.] An employer must certify, 
  3.20  under oath, that grants are used for the jobs specified in the 
  3.21  application.  If the job for which a grant is received is not 
  3.22  filled by an employee, the grant must be repaid to the extent 
  3.23  the job was not filled during the grant period.  If the job was 
  3.24  unfilled at any time within six months of the last day that a 
  3.25  job grant was used for a subsidy, the employer must repay the 
  3.26  entire grant unless the commissioner determines that the job was 
  3.27  not filled due to circumstances beyond the employer's control.  
  3.28  Money repaid to the commissioner must be deposited in the 
  3.29  general fund and is reappropriated to the commissioner for the 
  3.30  purposes of this section.  
  3.31     Sec. 3.  [APPROPRIATION.] 
  3.32     $....... is appropriated from the general fund to the 
  3.33  commissioner of employment and economic development for fiscal 
  3.34  year 2005 for the purposes of Minnesota Statutes, section 
  3.35  116J.672.