HF 3003

as introduced - 89th Legislature (2015 - 2016) Posted on 04/06/2016 01:21pm

A bill for an act
relating to economic development; making various policy changes; modifying
agency programs; modifying the commissioner's promotional authority;
protecting the commissioner and employees from subpoena; modifying
workforce development outcomes; creating the Workforce Development
Board; amending Minnesota Statutes 2014, sections 116J.035, subdivision
1a; 116J.8738, subdivision 2; 116J.8747, by adding a subdivision; Minnesota
Statutes 2015 Supplement, sections 116J.8738, subdivision 3; 116L.98,
subdivision 3; proposing coding for new law in Minnesota Statutes, chapters
116L; 268A; repealing Minnesota Statutes 2014, section 116L.665.

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

ARTICLE 1

ECONOMIC DEVELOPMENT PROGRAMS

Section 1.

Minnesota Statutes 2014, section 116J.8738, subdivision 2, is amended to
read:

Subd. 2.

Qualified business.

(a) A business is a qualified business if it satisfies the
requirement of this paragraph and is not disqualified under the provisions of paragraph
(b). To qualify, the business must:

deleted text begin (1) have operated its trade or business in a city or cities in greater Minnesota for at
least one year before applying under subdivision 3;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end pay or agree to pay in the future each employee compensation, including
benefits not mandated by law, that on an annualized basis equal at least 120 percent of the
federal poverty level for a family of four;

deleted text begin (3) deleted text end new text begin (2) new text end plan and agree to expand its employment in deleted text begin one or more cities in deleted text end greater
Minnesota by the minimum number of employees required under subdivision 3, paragraph
(c); and

deleted text begin (4) deleted text end new text begin (3) new text end have received certification from the commissioner under subdivision 3 that
it is a qualified business.

(b) A business is not a qualified business if it is either:

(1) primarily engaged in making retail sales to purchasers who are physically present
at the business's location or locations in greater Minnesota;

(2) a public utility, as defined in section 336B.01; or

(3) primarily engaged in lobbying; gambling; entertainment; professional sports;
political consulting; leisure; hospitality; or professional services provided by attorneys,
accountants, business consultants, physicians, or health care consultants.

deleted text begin (c) The requirements in paragraph (a) that the business's operations and expansion
be located in a city do not apply to an agricultural processing facility.
deleted text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 116J.8738, subdivision 3, is
amended to read:

Subd. 3.

Certification of qualified business.

(a) A business may apply to
the commissioner for certification as a qualified business under this section. The
commissioner shall specify the form of the application, the manner and times for applying,
and the information required to be included in the application. The commissioner may
impose an application fee in an amount sufficient to defray the commissioner's cost of
processing certifications. Application fees are deposited in the greater Minnesota business
expansion administration account in the special revenue fund. A business must file a copy
of its application with the chief clerical officer of the city at the same time it applies to
the commissioner. For deleted text begin an agricultural processing facility deleted text end new text begin a business new text end located outside the
boundaries of a city, the business must file a copy of the application with the county auditor.

(b) The commissioner shall certify each business as a qualified business that:

(1) satisfies the requirements of subdivision 2;

(2) the commissioner determines would not expand its operations in greater
Minnesota without the tax incentives available under subdivision 4; and

(3) enters a business subsidy agreement with the commissioner that pledges to
satisfy the minimum expansion requirements of paragraph (c) within three years or less
following execution of the agreement.

The commissioner must act on an application within 90 days after its filing. Failure
by the commissioner to take action within the 90-day period is deemed approval of the
application.

(c) The business must increase the number of full-time equivalent employees
in greater Minnesota from the time the business subsidy agreement is executed by two
employees or ten percent, whichever is greater.

(d) The city, or a county for deleted text begin an agricultural processing facility deleted text end new text begin a business new text end located
outside the boundaries of a city, in which the business proposes to expand its operations
may file comments supporting or opposing the application with the commissioner. The
comments must be filed within 30 days after receipt by the city new text begin or county new text end of the application
and may include a notice of any contribution the city or county intends to make to
encourage or support the business expansion, such as the use of tax increment financing,
property tax abatement, additional city or county services, or other financial assistance.

(e) Certification of a qualified business is effective for the seven-year period
beginning on the first day of the calendar month immediately following the date that the
commissioner informs the business of the award of the benefit.

ARTICLE 2

PROMOTIONAL AUTHORITY

Section 1.

Minnesota Statutes 2014, section 116J.035, subdivision 1a, is amended to
read:

Subd. 1a.

Promotional contracts.

In order to best carry out duties and
responsibilities and to serve the people of the state in the promotion of tourism, trade,
and economic development, the commissioner may engage in programs and projects new text begin ,
including solicitations and proposals for programs and projects, new text end jointly with a private
person, firm, corporation or association deleted text begin and deleted text end new text begin . The commissioner new text end may enter into contracts
under terms to be mutually agreed upon to carry out deleted text begin such deleted text end new text begin these new text end programs and projects not
including acquisition of land or buildings. Contracts may be negotiated and are not subject
to the provisions of chapter 16C relating to competitive bidding.

ARTICLE 3

SUBPOENAS

Section 1.

new text begin [268A.031] COMMISSIONER AND EMPLOYEES NOT SUBJECT
TO SUBPOENA.
new text end

new text begin The commissioner and employees of the department shall not be subject to subpoena
for purposes of providing testimony regarding any client served under this chapter.
new text end

ARTICLE 4

WORKFORCE DEVELOPMENT PROGRAM OUTCOMES

Section 1.

Minnesota Statutes 2015 Supplement, 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 deleted text begin three deleted text end new text begin four new text end 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 or administered by other organizations under a grant made by the department.

ARTICLE 5

PAY FOR PERFORMANCE GRANTS

Section 1.

Minnesota Statutes 2014, section 116J.8747, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Grant administration authority. new text end

new text begin The state agency administering grants
under this section may offer exemption from sections 16A.28, subdivision 6, and 16B.98,
subdivision 7.
new text end

ARTICLE 6

WORKFORCE INNOVATION AND OPPORTUNITY ACT UPDATES

Section 1.

new text begin [116L.6651] WORKFORCE DEVELOPMENT BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; duties. new text end

new text begin The governor's Workforce Development Board
is created under the authority of the Workforce Innovation and Opportunity Act, United
States Code, title 29, section 3111. The Workforce Development Board serves as
Minnesota's state workforce development board for the purposes of the federal Workforce
Innovation and Opportunity Act and must perform the duties under that act.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The board is composed of 41 voting members and
14 nonvoting members representing businesses, labor organizations, community-based
organizations, state agencies, and education. Membership terms, compensation of
members, and removal of members are governed by section 15.059.
new text end

new text begin (b) No person shall serve as a member of more than one category described in
paragraph (a).
new text end

new text begin (c) Voting members shall consist of the following:
new text end

new text begin (1) the governor or the governor's designee;
new text end

new text begin (2) one member of the house of representatives appointed by the speaker of the
house and one member of the senate appointed by the majority leader of the senate;
new text end

new text begin (3) 21 representatives of businesses in the state appointed by the governor who:
new text end

new text begin (i) are owners of businesses, chief executives or operating officers of businesses, or
other business executives or employers with optimum policy-making or hiring authority,
and who, in addition, may be members of a local board under United States Code, title 29,
section 3122(b)(2)(A)(i);
new text end

new text begin (ii) represent businesses, including small businesses, or organizations representing
businesses that provide employment opportunities that, at a minimum, include
high-quality, work-relevant training and development in in-demand industry sectors or
occupations in the state; and
new text end

new text begin (iii) are appointed from individuals nominated by state business organizations and
business trade associations;
new text end

new text begin (4) commissioners of the state agencies with primary responsibility for core
programs and other one stop partners identified within the state plan including:
new text end

new text begin (i) the Department of Employment and Economic Development;
new text end

new text begin (ii) Adult Basic Education through the Department of Education; and
new text end

new text begin (iii) the Department of Human Services; and
new text end

new text begin (5) other voting members appointed by the governor, including:
new text end

new text begin (i) two chief elected officials, collectively representing cities and counties;
new text end

new text begin (ii) six representatives of labor organizations, including:
new text end

new text begin (A) representatives of labor organizations who have been nominated by state labor
federations; and
new text end

new text begin (B) a member of a labor organization or a training director from a joint labor
and management apprenticeship program, or if no joint program exists in the state, a
representative of an apprenticeship program in the state;
new text end

new text begin (iii) two representatives of community-based organizations that have demonstrated
experience and expertise in addressing the employment, training, or education needs of
individuals with barriers to employment, including organizations that serve veterans or that
provide or support competitive, integrated employment for individuals with disabilities; and
new text end

new text begin (iv) four officials responsible for education programs in the state, including chief
executive officers of community colleges and other institutions of higher education,
including:
new text end

new text begin (A) chancellor, Minnesota State Colleges and Universities;
new text end

new text begin (B) president, University of Minnesota;
new text end

new text begin (C) president, private postsecondary; and
new text end

new text begin (D) representative of career and technical education.
new text end

new text begin (d) The 14 nonvoting members of the board shall be appointed by the governor and
consist of one of each of the following:
new text end

new text begin (1) a representative of Adult Basic Education;
new text end

new text begin (2) a representative of public libraries;
new text end

new text begin (3) a representative of Women's Economic Security Act;
new text end

new text begin (4) the chair of the Minnesota Workforce Council Association;
new text end

new text begin (5) the commissioner of the Department of Labor and Industry;
new text end

new text begin (6) the commissioner of the Office of Higher Education;
new text end

new text begin (7) the commissioner of the Department of Corrections;
new text end

new text begin (8) the commissioner of Management and Budget;
new text end

new text begin (9) two representatives of community-based organizations;
new text end

new text begin (10) a district superintendent of a public school district;
new text end

new text begin (11) a representative of school-based service learning;
new text end

new text begin (12) the minority leader of the house of representatives; and
new text end

new text begin (13) the minority leader of the senate.
new text end

new text begin Subd. 4. new text end

new text begin Board meetings. new text end

new text begin (a) The board shall hold regular in-person meetings at
least quarterly and as often as necessary to perform the duties outlined in the statement of
authority and bylaws. Meetings shall be called by the chair. Special meetings may be called
as needed. Notices of all meetings shall be made at least 48 hours prior to the meeting date.
new text end

new text begin (b) The chairperson shall approve an agenda for each meeting. Members shall
submit a written request for consideration of an agenda item no less than 24 hours in
advance of the meeting. Members of the public may submit a written request within 48
hours of a meeting in order to be considered for inclusion on the agenda. Those members
of the public in attendance at any meeting of the board may address the board only with
the approval or at the request of the chair.
new text end

new text begin (c) All meeting notices must be posted on the board's Web site. All meetings of the
board and committees must be open to the public. The board must make available to
the public, on a regular basis through electronic means and open meetings, information
regarding the activities of the board, information regarding membership and, on request,
minutes of formal meetings of the board.
new text end

new text begin (d) For the purpose of conducting business before the board at a duly called meeting,
a simple majority of the membership, excluding any vacancies, shall constitute a quorum.
new text end

new text begin Subd. 5. new text end

new text begin Executive committee duties. new text end

new text begin The executive committee must, in
cooperation with the operations committee and with advice and input of local workforce
boards and other stakeholders as appropriate, develop performance standards for the
state workforce centers. By January 15, 2017, and each odd-numbered year thereafter,
the executive committee shall submit a report to the senate and house of representatives
committees with jurisdiction over workforce development programs regarding the
performance and outcomes of the workforce centers. The report must provide
recommendations regarding workforce center funding levels and sources, program
changes, and administrative changes.
new text end

new text begin Subd. 6. new text end

new text begin Staffing. new text end

new text begin The Department of Employment and Economic Development
must provide staff to the board necessary to carry out the duties of the board. The board
may ask for assistance from other units of state government as it requires in order to
fulfill its duties and responsibilities.
new text end

new text begin Subd. 7. new text end

new text begin Funding. new text end

new text begin The commissioner shall develop recommendations on a funding
formula for allocating Workforce Innovation and Opportunity Act funds to the board with
a minimum allocation of $350,000 per year.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 116L.665, new text end new text begin is repealed.
new text end