2013 -- S 0401

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LC01777

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF LABOR

AND TRAINING--SUBSIDIZED TRAINING AND EMPLOYMENT PROGRAM

     Introduced By: Senators Satchell, Pichardo, Conley, Cote, and Lynch

     Date Introduced: February 26, 2013

     Referred To: Senate Labor

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

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GOVERNMENT" is hereby amended by adding thereto the following chapter:

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     CHAPTER 16.2

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SUBSIDIZED TRAINING AND EMPLOYMENT PROGRAM

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     42-16.2-1. Definitions. -- For purposes of this section:

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     (1) "Department" means the department of labor and training.

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     (2) "Eligible small business" means a business that:

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     (i) Employed not more than fifty (50) full-time employees on at least fifty percent (50%)

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of its working days during the preceding twelve (12) months;

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     (ii) Is a Rhode Island-based business with operations in Rhode Island;

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     (iii) Has been registered to conduct business in this state for not less than twelve (12)

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months;

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     (iv) Is in good standing with the payment of all state and local taxes; and

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     (v) Is in good standing with the corporations division of the office of the secretary of

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state.

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     (3) "Control", with respect to a corporation, means ownership, directly or indirectly, of

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stock possessing fifty percent (50%) or more of the total combined voting power of all classes of

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the stock of such corporation entitled to vote. "Control", with respect to a trust, means ownership,

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directly or indirectly, of fifty percent (50%) or more of the beneficial interest in the principal or

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income of such trust. The ownership of stock in a corporation, of a capital or profits interest in a

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partnership, limited liability company or association or of a beneficial interest in a trust shall be

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determined in accordance with the rules for constructive ownership of stock provided in section

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267(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue

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code of the United States, as from time to time amended, other than paragraph (3) of said section

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267(c).

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     (4) "Related person" means:

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     (i) A corporation, limited liability company, partnership, association or trust controlled by

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the eligible small business;

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     (ii) An individual, corporation, limited liability company, partnership, association or trust

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that is in control of the eligible small business;

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     (iii) A corporation, limited liability company, partnership, association or trust controlled

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by an individual, corporation, limited liability company, partnership, association or trust that is in

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control of the eligible small business; or

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     (iv) A member of the same controlled group as the eligible small business.

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     (5) "Eligible small manufacturer" means an eligible small business described in sectors

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31 to 33, inclusive, of the North American industry classification system, that employed not more

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than fifty (50) employees on at least fifty percent (50%) of its working days during the preceding

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twelve (12) months.

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     42-16.2-2. Establishment of program. – (a) There is established within the department

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of labor and training a subsidized training and employment program for eligible small businesses

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and eligible small manufacturers. Said program shall provide grants to such businesses and

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manufacturers to subsidize, for the first six (6) months after a person is hired, a part of the cost of

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employment, including any costs related to training. No such business or manufacturer receiving

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a grant under this section with respect to a new employee or newly-hired person may receive a

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second grant under this section with respect to the same new employee or newly-hired person.

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     (b) The department may use up to four percent (4%) of any funds allocated to program

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for the purpose of retaining outside consultants to administer the subsidized training and

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employment program.

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     42-16.2-3. Eligible employees. – (a) An eligible small business may apply to the

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department for a grant to subsidize on-the-job training and compensation for a new employee,

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where "new employee" means a person who:

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     (1) Was unemployed immediately prior to employment, regardless of whether such

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person collected unemployment compensation benefits as a result of such unemployment,

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     (2) Has a family income equal to or less than two hundred fifty percent (250%) of the

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federal poverty level, adjusted for family size. "New employee" does not include a person who

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was employed in this state by a related person with respect to the eligible small business during

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the prior twelve (12) months.

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     (b) Grants to eligible small businesses under the subsidized training and employment

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program shall be in the following amounts:

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     (1) For the first full calendar month a new employee is employed, one hundred percent

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(100%) of an amount representing the hourly wage of such new employee, exclusive of any

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benefits, but in no event shall such amount be less than twelve dollars ($12.00) per hour nor

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exceed twenty dollars ($20.00) per hour;

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     (2) For the second and third full calendar months, seventy-five percent (75%) of such

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amount;

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     (3) For the fourth and fifth full calendar months, fifty percent (50%) of such amount; and

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     (4) For the sixth full calendar month, twenty-five percent (25%) of such amount.

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     Grants shall be cancelled as of the date the new employee leaves employment with the eligible

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small business.

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     42-16.2-4. Eligible small manufacturers. – (a) An eligible small manufacturer may

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apply to the department for a grant to be used to train and compensate persons newly hired by

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such manufacturer. Any training shall be provided by such manufacturer, and take place on such

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manufacturer's premises, but no existing formal training program shall be required. The

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department shall review and approve such manufacturer's description of the proposed training as

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part of the application.

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     (b) Grants awarded to an eligible small manufacturer pursuant to this subsection shall

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subsidize the costs of training and compensating each person newly hired by such manufacturer.

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In no event shall a grant exceed the salary of the newly-hired person. Maximum amounts of each

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grant are:

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     (1) For the first full calendar month a newly-hired person is employed, up to two

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thousand five hundred dollars ($2,500);

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     (2) For the second month, up to two thousand four hundred dollars ($2,400);

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     (3) For the third month, up to two thousand two hundred dollars ($2,200);

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     (4) For the fourth month, up to two thousand dollars ($2,000);

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     (5) For the fifth month, up to one thousand eight hundred dollars ($1,800); and

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     (6) For the sixth month, up to one thousand six hundred dollars ($1,600).

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     No grant shall exceed a total amount of twelve thousand five hundred dollars ($12,500) per

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newly-hired person. A grant may be cancelled as of the date such person leaves employment with

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the eligible small manufacturer.

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     42-16.2-5. Reports. – Not later than June 30, 2014, and every six (6) months thereafter,

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the director of the department of labor and training shall provide a report to the general assembly

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having cognizance of matters relating to finance, revenue and bonding, appropriations, commerce

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and labor. Said report shall include available data on:

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     (1) The number of small businesses that participated in the subsidized training and

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employment program established pursuant to section 42-16.2-3 of this chapter, and the general

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categories of such businesses,

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     (2) The number of small manufacturers that participated in the subsidized training and

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employment program established pursuant to section 42-16.2-4 of this chapter, and the general

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categories of such manufacturers,

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     (3) The number of individuals that received employment and their wages and benefits;

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and

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     (4) The most recent estimate of the number of jobs created or maintained.

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     42-16.2-6. Certifications required. – (a) The employer must certify that the

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employment opportunity is not due to a lockout, strike, or other labor dispute.

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     (b) For employers with employees who are subject to collective bargaining, the written

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approval by the collective bargaining representative for each affected unit shall be required to be

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included in the application for funding for a position which would otherwise be covered by a

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collective bargaining agreement.

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     42-16.2-7. Regulations. – The director of the department of labor and training may

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adopt regulations to carry out the provisions of this section.

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     SECTION 2. This act shall take effect upon passage.

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LC01777

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF LABOR

AND TRAINING--SUBSIDIZED TRAINING AND EMPLOYMENT PROGRAM

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     This act would establish the subsidized training and employment program within the

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department of labor and training for the purpose of assisting small businesses.

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     This act would take effect upon passage.

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LC01777

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