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S.F. No. 2434 - Workforce Development Fund Modifications (Delete-all Amendment SCS2434A-1)
Author: Senator Paul T. Anderson
Prepared By: Carlon D. Fontaine, Senate Counsel (651/296-4395)
Date: March 14, 2018


Section 1.  Grants.  Modifies how the Job Skills Partnership Board may allocate workforce development funds for dislocated worker services. 

Section 2 to 6.  Definitions.  Provide definitions for “career pathways training strategies,” “integrated education and training strategies,” “regional workforce entity,” “sector partnership,” and “regional plan.”

Section 7.  Disbursement of special assessment funds.  Specifies that workforce development funds shall be used to provide for investments to meet workforce needs of local and regional economies.  Provides distribution percentages and requirements for use of funds. The amounts deposited in the workforce development fund are appropriated as follows:

  • 35 percent to the commissioner of employment and economic development (DEED) for:  administration, oversight, and support of regional and local workforce development fund investments, strategic planning, professional development, and providing technical assistance to local workforce development boards and regional workforce entities, conducting sustainable layoff activities, administering grants for the Youthbuild program, administering vocational rehabilitation programs, and distribution of small layoff independent grants
  • 3 percent of the 35 percent to DEED is for the commissioner of labor and industry to administer the PIPELINE program, youth skills training program, labor education and advancement program, prevailing wage enforcement, and apprenticeship programs

Remaining funds after the percentage to DEED are distributed to local workforce development areas for designated purposes as follows:

  • 26 percent to fund and operate adult training programs, including services for dislocated worker;
  • 11 percent to fund and operate youth training programs and related activities;
  • 44 percent for regional adult career pathways competitive grants;
  • 12 percent  for regional youth training and related services competitive grants;
  • 7 percent  to fund and operate sector partnerships and regional efforts
  • Allows up to 10 percent of the appropriation to a local workforce development area to be used for administrative costs.

Specifies that funds are distributed to each local workforce development board according to a formula calculated by the commissioner in consultation with local elected officials and workforce development boards.  Requires the commissioner to consider current economic and demographic conditions and trends in each area in calculating the formula.  Requires the commissioner to evaluate the formulas every two years and make adjustments when necessary.

Section 8.  Local and regional requirements for receipt and allocation of workforce development funds. Provides that distribution of workforce development funds to local workforce development boards is contingent on approval by the commissioner of local and regional plans required by the federal Workforce Innovation and Opportunity Act (WIOA).  Prohibits a person serving on a regional workforce entity from participating in or voting on an award that would be a conflict of interest.  Allows unexpended funds to be used in the following fiscal year within a biennium.  Requires reporting on performance of workforce development fund investments.

Section 9.  Duties of the commissioner.  Provides duties for the commissioner of employment and economic development related to the workforce development fund as follows:

  • develop program guidelines for career pathway training strategies, in consultation with workforce development boards, regional workforce entities, and other providers to help guide the competitive grant process used to distribute career pathways and youth training dollars;
  • monitor the investments made by local workforce development boards and regional workforce entities for fiscal soundness; and
  • track the outcomes and evaluate the performance of all workforce development fund grants, awards, and investments, including a report, done in consultation with the governor's workforce development board, on each area's performance every two years.     

Sections 10 to 14.  Uniform report card.  Incorporates and clarifies that projects and programs funded by the workforce development fund are subject to the requirements for uniform report card reporting.

Section 15.  Repealer.  Repeals section 116L.05, subdivision 5, regarding the Job Skills Partnership Board’s use of workforce development funds.


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