1.1                          A bill for an act
  1.2             relating to economic development; requiring private 
  1.3             businesses with state financial assistance to pay at 
  1.4             least a poverty level wage and increase employment; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapters 177; and 270. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [177.255] [STATE ASSISTANCE; EMPLOYMENT; 
  1.9   POVERTY LEVEL WAGE.] 
  1.10     Subdivision 1.  [APPLICATION.] (a) This section applies to 
  1.11  any for profit corporation, partnership, limited liability 
  1.12  company, or sole proprietorship that does not meet the 
  1.13  definition of a small business in section 645.445 and that 
  1.14  receives state assistance in the form of a state grant, state 
  1.15  loan, or tax increment financing, if: 
  1.16     (1) the sum of all three types of assistance exceeds 
  1.17  $25,000 in a fiscal year; and 
  1.18     (2) the purpose of the assistance is economic development 
  1.19  or job growth. 
  1.20     (b) The state assistance recipient must: 
  1.21     (1) produce a net increase in jobs in Minnesota within two 
  1.22  years of receiving the state assistance.  If without state 
  1.23  assistance the recipient would decrease their number of 
  1.24  employees, then the state assistance recipient must show a net 
  1.25  retention in the number of jobs or lose the assistance; and 
  1.26     (2) pay every employee at least a poverty level wage when 
  2.1   they are hired to work in a job created by an economic 
  2.2   development project or job growth project which receives 
  2.3   assistance from a state grant, a state loan, or tax increment 
  2.4   financing.  For purposes of this section, a poverty level wage 
  2.5   on an annualized basis is equal to 100 percent of the federal 
  2.6   poverty level for a family of four.  The commissioner of trade 
  2.7   and economic development shall determine whether or not any job 
  2.8   created is a result of an economic development project or a job 
  2.9   growth project which receives assistance from a state grant, 
  2.10  state loan, or tax increment financing. 
  2.11     If the state assistance recipient fails to comply with 
  2.12  clause (2), the recipient shall pay the local human service 
  2.13  agency an amount equal to two times the difference between the 
  2.14  wage required under clause (2) and the wage actually paid. 
  2.15     For the purpose of this section a state grant or loan 
  2.16  includes a loan or grant from the iron range resources and 
  2.17  rehabilitation board or any of the funds it controls. 
  2.18     Subd. 2.  [ON-THE-JOB TRAINING EXEMPTION.] (a) The 
  2.19  requirement to pay at least a poverty level wage under 
  2.20  subdivision 1 does not apply to an employee engaged in 
  2.21  on-the-job training.  For purposes of this section, on-the-job 
  2.22  training means: 
  2.23     (1) an apprenticeship program for an apprentice defined by 
  2.24  section 178.06; 
  2.25     (2) a preapprenticeship program that assists learners to 
  2.26  explore occupational areas and assess their skills and interests 
  2.27  in those areas, and acquire knowledge and skills necessary to 
  2.28  succeed in youth apprenticeship programs; or 
  2.29     (3) a training program, not to exceed six months, that is 
  2.30  offered to an individual while employed in productive work that 
  2.31  provides training, technical and other related skills, and 
  2.32  personal skills that are essential to the full and adequate 
  2.33  performance of the employment. 
  2.34     (b) An employer must pay at least a poverty level wage to 
  2.35  an employee who would otherwise be exempt under paragraph (a), 
  2.36  clause (1), (2), or (3), if: 
  3.1      (1) any other individual has been laid off by the employer 
  3.2   from the position to be filled by the employee engaged in 
  3.3   on-the-job training or from any substantially equivalent 
  3.4   position; or 
  3.5      (2) the employer has terminated the employment of any 
  3.6   regular employee or otherwise reduced the number of employees 
  3.7   with the intention of replacing the employee by hiring an 
  3.8   employee who is not required to receive at least a poverty level 
  3.9   wage. 
  3.10     Subd. 3.  [APPLICATION FOR ON-THE-JOB TRAINING 
  3.11  EXEMPTION.] An employer seeking exemption under subdivision 2 
  3.12  must: 
  3.13     (1) notify the commissioner of labor and industry.  The 
  3.14  commissioner must certify that the on-the-job training program 
  3.15  meets the criteria stated in subdivision 2; and 
  3.16     (2) describe the program in writing, retain a copy, and 
  3.17  provide a copy to the commissioner of labor and industry and to 
  3.18  the employee. 
  3.19     Subd. 4.  [EMPLOYER EXEMPTIONS.] The requirement to pay at 
  3.20  least a poverty level wage under subdivision 1 does not apply to 
  3.21  the following types of state assistance: 
  3.22     (1) tax increment financing for redevelopment activities, 
  3.23  including assistance financed with increments (i) from districts 
  3.24  defined as redevelopment districts or renewal and renovation 
  3.25  districts under section 469.174, or (ii) from another type of 
  3.26  district used to pay for redevelopment activities as defined in 
  3.27  section 469.176, subdivision 4j; 
  3.28     (2) state grant and state loan assistance to businesses 
  3.29  located in districts which meet the criteria of a redevelopment 
  3.30  district or renewal and renovation district defined in section 
  3.31  469.174; 
  3.32     (3) tax increment assistance financed by districts defined 
  3.33  as housing districts under section 469.174; 
  3.34     (4) tax increment assistance financed by districts created 
  3.35  as hazardous substance subdistricts under section 469.175; 
  3.36     (5) state grant and state loan assistance for the removal 
  4.1   or remediation of a hazardous substance, hazardous waste, 
  4.2   pollutant, or contaminant, including human waste, as defined by 
  4.3   section 115B.02; 
  4.4      (6) loan or loan guarantee assistance from the tourism loan 
  4.5   program under section 116J.617; and 
  4.6      (7) grant assistance from contamination cleanup grants 
  4.7   under section 116J.552. 
  4.8      Subd. 5.  [EMPLOYEE EXEMPTION.] This section does not apply 
  4.9   to an employee who is a blind or disabled eligible individual as 
  4.10  that term is defined in United States Code, title 42, section 
  4.11  1382, paragraph (a). 
  4.12     Sec. 2.  [270.0683] [REPORT ON THE EFFECT OF TAX INCENTIVES 
  4.13  UPON THE NUMBER OF JOBS.] 
  4.14     On a biennial basis, the commissioner of revenue shall 
  4.15  analyze the effect of all business related tax reductions or 
  4.16  waivers on the aggregate number of jobs created and wages paid 
  4.17  in those new jobs.  The commissioner of revenue shall present 
  4.18  the results of their analysis to the legislature. 
  4.19     Sec. 3.  [270.0684] [GOALS FOR NEWLY LEGISLATED TAX 
  4.20  EXPENDITURES.] 
  4.21     Each new legislated business related tax expenditure shall 
  4.22  include measurable goals for jobs and wages and require a 
  4.23  biennial review conducted by the commissioner of revenue for 
  4.24  continuation based upon meeting those goals.  The commissioner 
  4.25  of revenue shall report the results of the review to the 
  4.26  legislature. 
  4.27     Sec. 4.  [EFFECTIVE DATE; APPLICABILITY.] 
  4.28     Sections 1 to 3 apply to state grants, state loans, and tax 
  4.29  increment financing authorized on or after August 1, 1995.