2012 North Dakota Century Code Title 52 Social Security Chapter 52-02.1 New Jobs Training
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CHAPTER 52-02.1
NEW JOBS TRAINING
52-02.1-01. Definitions.
When used in this chapter, unless the context otherwise requires:
1. "Agreement" is the agreement between an employer and job service North Dakota
concerning a project.
2. "Base employment level" means the number of full-time jobs an employer employs
prior to the date of the commencement of the project.
3. "Community" means the city or county in which an eligible primary sector business is
or will be located or a local development corporation, community organization,
institution of higher education that is assigned primary responsibility for workforce
training under section 52-08-08, or any other group the interest of which is in the
economic growth of the area.
4. "Date of commencement of the project" means the date of the agreement.
5. "Department" means the department of commerce.
6. "Employee" means the individual employed in a new job.
7. "Employer" means the individual, corporation, partnership, or association providing
new jobs and entering into an agreement.
8. "New job" means a job in a new or expanding primary sector business. The term does
not include recalled workers returning to positions they previously held, replacement
workers, including workers newly hired as a result of a labor dispute, or other jobs that
formerly existed within the employment of the employer in the state.
9. "New jobs credit from withholding" means the credit as provided in section 52-02.1-03.
10. "New jobs training program" or "program" means the project or projects established by
job service North Dakota to provide workers with education and training required for
jobs in new or expanding primary sector businesses in the state.
11. "Primary sector business" means an employer engaged in locating to or in this state
which previously had no presence in this state, or in expanding its operations within
this state, which through the employment of knowledge or labor, adds value to a
product, process, or export service that results in the creation of new wealth, excluding
production agriculture, if it meets the following eligibility criteria:
a. An employer entering into an agreement, and increasing its base employment
level by at least one employee, or in the case of an employer without an
established base employment level in this state creating at least five employees,
within the time set in the agreement, is entitled to the new jobs credit from
withholding.
b. An employer must have an economically productive and socially desirable
purpose within the state.
c. An employer must not be closing or reducing its operation in one area of the state
and relocating substantially the same operation in another area.
12. "Program costs" means all necessary and incidental costs of providing program
services. The term does not include the cost of purchase of equipment to be owned or
utilized by the training or educational institution or service.
13. "Program services" means training and education specifically directed to the new jobs,
including the following:
a. All direct training costs, such as:
(1) Program promotion;
(2) Instructor wages, per diem, and travel;
(3) Curriculum development and training materials;
(4) Lease of training equipment and training space;
(5) Miscellaneous direct training costs;
(6) Administrative costs; and
(7) Assessment and testing.
b. In-house or on-the-job training.
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c.
14.
Subcontracted services with institutions governed by the state board of higher
education, private colleges or universities, federal, state, or local agencies, or
other private training or educational services.
"Project" means a training arrangement that is the subject of an agreement entered
into between job service North Dakota and an employer to provide program services.
52-02.1-02. Job service North Dakota - Agreements.
Program services developed and coordinated by job service North Dakota must be provided
to primary sector businesses found eligible for loans or grants under this chapter. Job service
North Dakota may enter into an agreement to establish a project with an employer which meets
the following conditions:
1. Sets a date of commencement of the project.
2. Identifies program costs, including deferred costs, which are to be paid from available
sources including new jobs credit from withholding to be received or derived from new
jobs resulting from the project.
3. Provides for a guarantee by the employer of payment for program costs.
4. Provides that any deferral of program cost payments may not exceed ten years from
the date of commencement of the project.
5. Provides that on-the-job training costs for employees may not exceed fifty percent of
the annual gross payroll costs of the new jobs in the first full year after the date of
commencement of the project. For purposes of this subsection, "gross payroll" is the
gross wages and salaries for the new jobs.
6. Provides the maximum amount of new jobs credit from withholding or tuition and fee
payments allowed for a project.
7. Provides that every employee participating in the new jobs training program must be
paid an income of at least ten dollars per hour, plus benefits, by the end of the first
year of employment under the project and for the remaining life of the loan.
A project requiring a loan from the department or a community may not be approved, and an
agreement may not be executed by job service North Dakota, until notification from the
department or community that the employer has qualified for a loan. Upon execution of the
agreement, job service North Dakota shall notify the state tax commissioner of the agreement
and the identity of the employer. Job service North Dakota may adopt rules to implement this
chapter. Job service North Dakota shall prepare an annual report for the governor and the
legislative assembly with respect to the new jobs training program.
52-02.1-03. New jobs credit from income tax withholding - Continuing appropriation.
Loans made under section 52-02.1-04 for program costs must be repaid by receipt of new
jobs credit from withholding as follows:
1. New jobs credit from withholding must be based upon the wages paid to the new
employees.
2. The North Dakota income tax withholding on wages paid by the employer to each new
employee participating in a project must be credited from the withholding payments
made by the employer pursuant to section 57-38-60. The tax commissioner shall
transmit the equivalent credit payment amount to the state treasurer to be allocated to
a special fund for payment to the department, community, or both, as the case may be,
of principal and interest on loans issued pursuant to section 52-02.1-04, or for
reimbursing employers participating in the cost reimbursement option provided in
section 52-02.1-06. All moneys deposited in the fund are hereby appropriated for the
purposes of this section. When the principal and interest on the loans have been
repaid or the employer's self-financed training costs have been reimbursed, the
employer credits must cease and any money received after the loans have been
repaid must be remitted by the tax commissioner to the general fund of the state.
3. The employer shall provide such other information the tax commissioner may require.
4. A new employee participating in a project must receive full credit for the amount
withheld as provided in section 57-38-59.
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5.
6.
The tax commissioner and state treasurer shall administer this section and may adopt
rules consistent with and necessary for the administration of this section.
The provisions of chapter 57-38 pertaining to the administration of the income tax
withholding, including provisions for refund or credit, not in conflict with the provisions
of this chapter, shall govern the administration of the credit provided by this chapter.
52-02.1-04. Fund - Administration.
Funding for programs must be through loans or grants as stated under this section. Loans
may be made by the department from the North Dakota future fund, a community, or the
department and a community cooperatively. A community may provide loans directly or through
any financial institution currently qualified to participate in a loan with the Bank of North Dakota.
The Bank of North Dakota may participate in loans under such credit standards and lending
policies it determines are necessary and applicable. A community may alternatively fund a
program through a grant without use of new jobs credit from withholding.
1. Loans must be secured and payable from a sufficient portion of the future receipts of
payments authorized by the agreement, with such other security as the lender may
determine is justified. The state treasurer shall transfer the moneys from the special
fund created in section 52-02.1-03 to a special fund set up for this purpose by the
department or community. The receipts must be pledged to the payment of principal of
and interest on the loan.
2. The department may adopt rules to implement this chapter.
52-02.1-05. Reports to legislative council budget section.
Repealed by S.L. 1997, ch. 445, ยง 4.
52-02.1-06. Cost reimbursement option.
Program services developed and coordinated by job service North Dakota provided to
primary sector businesses found eligible for loans or grants under section 52-02.1-02 must also
be provided to primary sector businesses that provide self-financing as funding for new jobs
training programs. Under this option, employers may be reimbursed an amount up to sixty
percent of the allowable state income tax withholding generated from the new jobs positions and
identified in the final agreement. Reimbursement under this option is to be made over the
ten-year period of the project. The agreement requirements set forth in section 52-02.1-02 and
the provisions of section 52-02.1-03 apply to this section.
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