2002 Minnesota Statutes

     116L.17 State dislocated worker program. 

    Subdivision 1.    Definitions.  (a) For the purposes of 
 this section, the following terms have the meanings given them 
 in this subdivision. 

    (b) "Dislocated worker" means an individual who is a 
 resident of Minnesota at the time employment ceased or was 
 working in the state at the time employment ceased and: 

    (1) has been terminated or has received a notice of 
 termination from public or private sector employment, is 
 eligible for or has exhausted entitlement to unemployment 
 benefits, and is unlikely to return to the previous industry or 
 occupation; 

    (2) has been terminated or has received a notice of 
 termination of employment as a result of any plant closing or 
 any substantial layoff at a plant, facility, or enterprise; 

    (3) has been long-term unemployed and has limited 
 opportunities for employment or reemployment in the same or a 
 similar occupation in the area in which the individual resides, 
 including older individuals who may have substantial barriers to 
 employment by reason of age; 

    (4) has been self-employed, including farmers and ranchers, 
 and is unemployed as a result of general economic conditions in 
 the community in which the individual resides or because of 
 natural disasters, subject to rules to be adopted by the 
 commissioner; 

    (5) has been self-employed as a farmer or rancher and, even 
 though that employment has not ceased, has experienced a 
 significant reduction in income due to inadequate crop or 
 livestock prices, crop failures, or significant loss in crop 
 yields due to pests, disease, adverse weather, or other natural 
 phenomenon.  This clause expires July 31, 2003; or 

    (6) is a displaced homemaker.  A "displaced homemaker" is 
 an individual who has spent a substantial number of years in the 
 home providing homemaking service and (i) has been dependent 
 upon the financial support of another; and now due to divorce, 
 separation, death, or disability of that person, must find 
 employment to self support; or (ii) derived the substantial 
 share of support from public assistance on account of dependents 
 in the home and no longer receives such support. 

    To be eligible under this clause, the support must have 
 ceased while the worker resided in Minnesota.  

    (c) "Eligible organization" means a state or local 
 government unit, nonprofit organization, community action 
 agency, business organization or association, or labor 
 organization. 

    (d) "Plant closing" means the announced or actual permanent 
 shutdown of a single site of employment, or one or more 
 facilities or operating units within a single site of employment.

    (e) "Substantial layoff" means a permanent reduction in the 
 workforce, which is not a result of a plant closing, and which 
 results in an employment loss at a single site of employment 
 during any 30-day period for at least 50 employees excluding 
 those employees that work less than 20 hours per week. 

    Subd. 2.    Grants.  The board shall make grants to 
 workforce service areas or other eligible organizations to 
 provide services to dislocated workers.  The board shall 
 allocate funds available for the purposes of this section in its 
 discretion to respond to large layoffs.  The board shall 
 regularly allocate funds to provide services to individual 
 dislocated workers or small groups.  The allocation for this 
 purpose must be no less than 35 percent and no more than 50 
 percent of the projected collections, interest and other 
 earnings of the workforce development fund during the period for 
 which the allocation is made, less any collection costs paid out 
 of the fund.  The board shall consider the need for services to 
 individual workers and workers in small layoffs in comparison to 
 those in large layoffs relative to the needs in previous years 
 when making this allocation.  The board may, in its discretion, 
 allocate funds carried forward from previous years under 
 subdivision 9 for large, small, or individual layoffs. 

    Subd. 3.    Allocation of funds.  The board, in 
 consultation with local workforce councils and local elected 
 officials, shall develop a method of distributing funds to 
 provide services for dislocated workers who are dislocated as a 
 result of small or individual layoffs.  The board shall consider 
 current requests for services and the likelihood of future 
 layoffs when making this allocation.  The board shall consider 
 factors for determining the allocation amounts that include, but 
 are not limited to, the previous year's obligations and 
 projected layoffs.  After the first quarter of the program year, 
 the board shall evaluate the obligations by workforce service 
 areas for the purpose of reallocating funds to workforce service 
 areas with increased demand for services.  Periodically 
 throughout the program year, the board shall consider making 
 additional allocations to the workforce service areas with a 
 demonstrated need for increased funding.  The board shall make 
 an initial determination regarding allocations under this 
 subdivision by July 15, 2001, and in subsequent years shall make 
 a determination by April 15. 

    Subd. 4.    Use of funds.  Funds granted by the board 
 under this section may be used for any combination of the 
 following, except as otherwise provided in this section: 

    (1) employment transition services such as developing 
 readjustment plans for individuals; outreach and intake; early 
 readjustment; job or career counseling; testing; orientation; 
 assessment of skills and aptitudes; provision of occupational 
 and labor market information; job placement assistance; job 
 search; job development; prelayoff assistance; relocation 
 assistance; and programs provided in cooperation with employers 
 or labor organizations to provide early intervention in the 
 event of plant closings or substantial layoffs; 

    (2) services that will allow the participant to become 
 reemployed by retraining for a new occupation or industry, 
 enhancing current skills, or relocating to employ existing 
 skills, including classroom training; occupational skill 
 training; on-the-job training; out-of-area job search; 
 relocation; basic and remedial education; literacy and English 
 for training non-English speakers; entrepreneurial training; and 
 other appropriate training activities directly related to 
 appropriate employment opportunities in the local labor market; 
 and 

    (3) support services, including family care assistance, 
 including child care; commuting assistance; housing and rental 
 assistance; counseling assistance, including personal and 
 financial; health care; emergency health assistance; emergency 
 financial assistance; work-related tools and clothing; and other 
 appropriate support services that enable a person to participate 
 in an employment and training program. 

    Subd. 5.    Cost limitations.  (a) Funds allocated to a 
 grantee are subject to the following cost limitations: 

    (1) no more than ten percent may be allocated for 
 administration; 

    (2) at least 50 percent must be allocated for training 
 assistance as provided in subdivision 4, clause (2); and 

    (3) no more than 15 percent may be allocated for support 
 services as provided in subdivision 4, clause (3). 

    (b) A waiver of the training assistance minimum in clause 
 (2) may be sought, but no waiver shall allow less than 30 
 percent of the grant to be spent on training assistance.  A 
 waiver of the support services maximum in clause (3) may be 
 sought, but no waiver shall allow more than 20 percent of the 
 grant to be spent on support services.  A waiver may be granted 
 below the minimum and above the maximum otherwise allowed by 
 this paragraph if funds other than state funds appropriated for 
 the dislocated worker program are used to fund training 
 assistance. 

    Subd. 6.    Performance standards.  (a) The board, in 
 consultation with representatives of local workforce councils 
 and local elected officials, shall establish performance 
 standards for the programs and activities administered or funded 
 under this section.  The board may use, when appropriate, 
 existing federal performance standards or, if the commissioner 
 determines that federal standards are inadequate or not 
 suitable, may formulate new performance standards to ensure that 
 the programs and activities of the dislocated worker program are 
 effectively administered. 

    (b) The board shall, at a minimum, establish performance 
 standards that appropriately gauge the program's effectiveness 
 at placing dislocated workers in employment, replacing lost 
 income resulting from dislocation, early intervention with 
 workers shortly after dislocation, and retraining of workers 
 from one industry or occupation to another. 

    Subd. 7.    Reports.  (a) Grantees receiving funds under 
 this section shall report to the board information on program 
 participants, activities funded, and utilization of funds in a 
 form and manner prescribed by the board. 

    (b) The board shall report quarterly to the workforce 
 development council information on grants awarded, activities 
 funded, and plant closings and substantial layoffs.  Specific 
 information to be reported shall be by agreement between the 
 board and the workforce development council. 

    Subd. 8.    Administrative costs.  No more than three 
 percent of the funds appropriated to the board for the purposes 
 of this section may be spent by the board for its administrative 
 costs. 

    Subd. 9.    Carryforward.  Any funds not allocated, 
 obligated, or expended in a fiscal year shall be available for 
 allocation, obligation, and expenditure in the following fiscal 
 year. 

    HIST: 1Sp2001 c 4 art 2 s 7; 2002 c 380 art 2 s 6