SB97 (2007) Detail

(New Title) relative to unemployment administrative contributions and the training fund, and transferring the job training program administered by the department of regional community-technical colleges to the department of resources and economic development.


CHAPTER 204

SB 97 – FINAL VERSION

02/15/07 0144s

2007 SESSION

07-1172

08/04

SENATE BILL 97

AN ACT relative to unemployment administrative contributions and the training fund, and transferring the job training program administered by the department of regional community-technical colleges to the department of resources and economic development.

SPONSORS: Sen. Gottesman, Dist 12; Sen. Larsen, Dist 15; Sen. Hassan, Dist 23; Sen. Janeway, Dist 7; Sen. Fuller Clark, Dist 24

COMMITTEE: Commerce, Labor and Consumer Protection

AMENDED ANALYSIS

This bill designates an increased portion of employer contributions for deposit into the contingent fund, reduces the annual amount to be deposited in the training fund, and makes deposits to the training fund fixed.

This bill transfers the job training program administered by the department of regional community-technical colleges to the department of resources and economic development.

This bill transfers funding for the job training program from the department of regional community-technical colleges to the department of resources and economic development.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/15/07 0144s

07-1172

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to unemployment administrative contributions and the training fund, and transferring the job training program administered by the department of regional community-technical colleges to the department of resources and economic development

Be it Enacted by the Senate and House of Representatives in General Court convened:

204:1 Unemployment Compensation; Contribution Rates. Amend RSA 282-A:87, IV(a) to read as follows:

IV.(a)(1) Each employer subject to payment of contributions pursuant to RSA 282-A:69, I shall have its rate reduced by [1/10] 2/10 of one percent beginning in the second quarter of [1996] 2007. An administrative contribution equal to the amount of this reduction shall be paid by all such employers.

(2) Commencing July 1, [2001] 2007, after deduction of all costs incurred in the collection of the administrative contribution, 1/3 of the quarterly administrative contribution collected, not to exceed $1,000,000 annually, shall be deposited each quarter in the fund established by RSA 282-A:138-a and shall be expended only as provided by and for the purposes provided in that section. The remaining quarterly administrative contribution collected shall be deposited in the fund established by RSA 282-A:140 and shall be expended only as provided by and for the purposes provided in that section, and not for any other purpose.

[(3) In the event the unemployment compensation trust fund fails to equal or exceed $275,000,000 throughout the preceding calendar quarter, the funds referred to in subparagraph IV(a)(2) shall not be deposited as provided in that section but shall be deposited in the fund established by RSA 282-A:140 and shall be expended only as provided by that section, and not for any other purpose.]

204:2 New Subdivision; Job Training Program Established. Amend RSA 12-A by inserting after section 50 the following new subdivision:

Job Training Program for Economic Growth

12-A:51 Program Established. There is hereby established a program to provide job training which is designed to attract new business, assist in the expansion of business, and retain existing business in the state of New Hampshire.

12-A:52 Purpose. The purpose of this program is to:

I. Enhance the state's economic growth and vitality by offering assistance to privately owned businesses and industries in training a new work force and retraining existing employees to implement new technologies, in creating new jobs, and in retaining and upgrading existing jobs.

II. Provide technical education and training as a component of the state's economic development efforts.

III. Be flexible and responsive to the training needs of business and industry in New Hampshire.

12-A:53 Training Programs. Training programs may include, but shall not be limited to:

I. Structured, on-site laboratory or classroom training.

II. Basic skills.

III. Technical skills.

IV. Quality improvement.

V. Safety.

VI. Management and supervision.

VII. English as a second language.

12-A:54 Administration; Review Committee.

I. The department of resources and economic development, or an entity with which the department of resources and economic development has contracted, shall administer this program.

II. The commissioner of the department of resources and economic development shall:

(a) Adopt rules under RSA 541-A, relative to the administration of this subdivision.

(b) Establish a grant review committee consisting of the following:

(1) The commissioner of the department of resources and economic development, or designee.

(2) The commissioner of the department of employment security, or designee.

(3) The commissioner of the department of regional community-technical colleges, or designee.

(4) One member representing labor, appointed by the commissioner of the department of resources and economic development.

(5) Three members representing business and industry, appointed by the governor.

(6) One senator, appointed by the senate president.

(7) One representative, appointed by the speaker of the house of representatives.

(8) The president of the Workforce Opportunity Council, Inc.

III. The committee shall make recommendations to the commissioner of the department of resources and economic development concerning the award of training grants to businesses.

12-A:55 Eligibility for Training Grants.

I. In this subdivision, "grant recipient" means the business entity that receives funds from the department and which provides funds to the training provider.

II. Only those businesses that are physically located or intend to be physically located within the state may receive funds under this subdivision.

III. Only those employees who are residents of New Hampshire, or who work for a business that is located or intends to locate within the state, shall receive training from grants under this subdivision.

IV. Grant recipients shall match no less than one dollar for each dollar provided through the grant award. The match funds shall include only those costs extraordinary to the regular employee expenses incurred by the business and shall be directly related to training.

V. Priority shall be given for grants to small businesses for the implementation of technological innovations.

VI. Intent by a business to locate within the state shall be established to the satisfaction of the grant review committee. A minimum requirement for intent to be established shall be:

(a) Proof of substantial investment or a binding contractual obligation consistent with such intent;

(b) The lease or purchase of real estate or equipment within the state necessary for the planned move; or

(c) Such other requirement as may be established under rules adopted by the commissioner of the department of resources and economic development.

VII. Submission of documents to substantiate proof of intent by a business to locate within the state shall be in accordance with rules adopted by the commissioner of the department of resources and economic development.

VIII. No grant shall be made to the state, including the state university system.

IX. No grant shall be made to any county, city, town, or other political subdivision which has not currently elected to pay contributions pursuant to RSA 282-A:71, II.

X. No grant shall be made to any organization or group of organizations, described in section 501(c)(3) and exempt under section 501(a) of the Internal Revenue Code, which has not currently elected to pay contributions pursuant to RSA 282-A:69, II.

12-A:56 Eligible Costs.

I. To be eligible under this subdivision, a cost must be necessary and reasonable for the proper and efficient delivery of training to the employees of the grant recipient.

II. The following costs are not eligible:

(a) Costs resulting from violations of or failure to comply with federal, state, or local laws and regulations.

(b) Entertainment costs.

(c) Administrative costs.

(d) Salaries and wages of employees in training.

III. Funds for training grants shall supplement, and not replace, funds available through existing programs conducted by the business entity, or other public or private training programs.

IV. The department may use no more than 10 percent, or $100,000, of any moneys received from the training fund established at RSA 282-A:138-a, whichever is less, to administer this program.

12-A:57 Training Facilities.

I. So long as it is feasible, training shall be provided by the department of regional community-technical colleges, which may charge full market value for the training provided.

II. When the department of regional community-technical colleges cannot provide desired training, the training grant recipient will be free to contract with some other training entity approved by the department.

III. The provider shall be specified in the grant award.

12-A:58 Performance; Report.

I. No later than April 1, 2008, the commissioner, in consultation with the grant review committee, shall establish performance criteria. The committee shall submit annually at the end of each fiscal year, to the commissioner of the department of resources and economic development, the commissioner of the department of employment security, the governor, the senate president, the speaker of the house of representatives, and the fiscal committee of the general court, a report indicating the level of performance achieved through the program.

II. The department shall evaluate the performance level for each training grant program provided to a business.

III. The grant recipient shall file the information required under paragraphs I and II, as requested by the commissioner.

204:3 Training Fund. Amend RSA 282-A:138-a, I to read as follows:

I. There is hereby created in the state treasury a special fund to be known as the training fund. Commencing January 1, 2002, the moneys in this fund may be used, solely as determined by the commissioner of the department of employment security in accordance with rules and guidelines adopted by the commissioner, for funding training under the job training program for economic growth, established under RSA [188-F:49-56] 12-A:51-58. Rulemaking authority relative to administration of the grant award process shall remain with the commissioner of [regional community-technical colleges] resources and economic development pursuant to RSA [188-F:52, II(a)] 12-A:54, II(a).

204:4 Repeal. RSA 188-F:49-56, relative to the job training program administered by the department of regional community-technical colleges, are repealed.

204:5 Effective Date.

I. Section 1 of this act shall take effect April 1, 2007.

II. The remainder of this act shall take effect July 1, 2007.

Approved: June 20, 2007

Effective: I. Section 1 shall take effect April 1, 2007.

II. Remainder shall take effect July 1, 2007.