New Mexico Register / Volume
XXXIV, Issue 12 / June 27, 2023
This is an
amendment to 5.5.50 NMAC, Sections 6, 8, 9, 10, 12, and 15 effective 06/27/2023
5.5.50.6 OBJECTIVE: The job training incentive program (JTIP)
supports economic development in New Mexico by reimbursing qualified companies
for a significant portion of training costs associated with newly created
jobs. Eligibility for JTIP funds depends
on the company’s business, the role of the newly created positions in that
business, and the trainees themselves.
A. Company eligibility: Companies that increase the economic base of
New Mexico are eligible to be considered for JTIP funds. They are broken out into two broad
categories: manufacturers and companies
that provide services that are non-retail in nature and export at least fifty
percent of the services to a customer base outside New Mexico. The company must be creating new jobs as a result of expansion, startup, or relocation to the
State of New Mexico. Companies
are required to have a physical presence (real estate either purchased or
leased) in New Mexico. Companies that have been funded previously by
JTIP must have at least as many total employees as when they last expanded under
JTIP.
B. Job eligibility: Jobs eligible for funding through JTIP must
be newly created, full-time (minimum of 32 hours/week), and year-round. Trainees must be guaranteed full-time
employment with the company upon successful completion of the training
program. Eligible positions must
directly support the primary mission of the business and include those directly
related to the creation of the product or service provided by the company to
its customers. Other newly created jobs
not directly related to production may be eligible. The number of these jobs is limited to twenty
percent of the total number of jobs applied for in the proposal. Companies with fewer than 20 employees may
include production-related jobs claimed on previous JTIP projects in the
calculation when applying for non-production jobs on subsequent applications
within two years of the most recent board approval date. Jobs must also meet a wage requirement to be
eligible for funding. The entry level
wage requirements for JTIP eligibility are specified in the “Reimbursable
Expenses” section of this policy manual.
To attract the best candidates and reduce turnover, companies are
encouraged to set wages at levels eligible for the high wage job tax credit,
and utilize the WorkKeys® program as part of the hiring process. In urban areas, companies with more than 20
employees must offer health insurance coverage to employees and their
dependents and pay at least fifty percent of the premium for employees who
elect coverage.
C. Trainee eligibility: To be eligible for JTIP, trainees must be new
hires to the company, must have been residents of the state of New Mexico for
at least one continuous year at any time prior to employment in an eligible
position, must be domiciled in New Mexico (domicile is your permanent home; it
is a place to which a person returns after a temporary absence) during
employment, and must be of legal status for employment. Trainees must not have left a public school
program in the three months prior to employment, unless
they graduated or completed a HSE (high-school equivalency). The one-year
residency requirement may not apply to a trainee hired into an approved
high-wage position provided the trainee meets all other JTIP eligibility
requirements and moved to New Mexico with the intent of making New Mexico
his/her permanent place of residence prior to beginning work with the
participating company. Companies are
reimbursed at a reduced, flat reimbursement rate for trainees that meet these
criteria.
D. Reimbursable training costs: Training funded through JTIP
can be custom classroom training at a New Mexico post-secondary public
educational institution, structured on-the-job training at the company (OJT),
or a combination of the two. Training
should be customized to the specific needs of the company and provide “quick
response” training for employees.
(1) The following expenses are eligible
for reimbursement through JTIP:
(a) A portion of trainee wages up to
seventy-five percent for up to six months of initial training.
(b) A portion of the cost of providing
customized classroom training at a New Mexico post-secondary public educational
institution.
(2) Positions that meet the JTIP
requirements with starting wages at levels eligible for the high wage job tax
credit may be eligible for an additional five percent wage reimbursement above
the standard rates if the approved entry wage is at least the minimum rate for
the job zone as outlined in the JTIP wage chart on Paragraph (2) of Subsection
D. of 5.5.50.10 NMAC.
(3) Companies that hire trainees who have
graduated within the past 12 months from a post-secondary training or academic
program at a New Mexico institution of higher education may be eligible for an
additional five percent wage reimbursement above the standard rates.
(4) Companies that hire trainees who are
U.S. veterans may be eligible for an additional five percent wage reimbursement
above the standard rates.
(5) Companies that hire trainees who have
graduated out of the NM foster care system may be eligible for an additional
five percent reimbursement above the standard rates.
(6) Companies may combine the additional
five percent wage reimbursement for high-wage jobs with any one of the
conditions described in Paragraphs (3), (4) or (5) above, for a total additional
wage reimbursement not to exceed ten percent above the standard rates.
(7) If a company is participating in
other job reimbursement training programs, the combined reimbursement to the
company may not exceed one hundred percent.
(8) For companies that hire remote workers, the reimbursement percentage for the remote employee shall be linked to the location of the employee. Urban companies must also offer the remote workers that reside in a rural or frontier location a wage that is consistent with the urban location. Conversely, a rural or frontier company that hires a remote worker from an urban location, the reimbursement percentage will be linked to the urban location and must also meet the minimum entry wage requirement respective to the O*NET job zone for an urban location in order to qualify for the hours of training assigned to that job zone.
(a) Rural – sixty-five percent.
(b) Frontier, tribal and federally designated Colonias – seventy-five percent.
(9) JTIP approved employers that
utilize business support services through the recognized New Mexico workforce connection
offices across the state or through other independent human resource support
service providers that help small businesses develop successful recruitment
strategies to grow and retain their workforce may be eligible for an additional
five percent wage reimbursement above the standard rates.
E. Program management and administration: General management of the job
training incentive program is the responsibility of the industrial training
board as prescribed by governing legislation (Section 21-19-7, NMSA 1978 and
subsequent amendments). The board is
responsible for establishing policies and guidelines related to the program’s
management and operation. The board
shall provide review and oversight to assure that funds expended will generate
business activity and give measurable growth to the economic base of New Mexico
throughout the year. The board has the
authority to make funding decisions based on the availability of funds,
sufficient appropriations, and the board’s determination of the qualifications
of the business. The board may elect to
implement measures to conserve funds when available funds become limited.
[5.5.50.6 NMAC - Rp,
5.5.50.6 NMAC, 6/26/2018; A, 7/14/2020; A, 7/7/2021; A, 06/27/2023]
5.5.50.8 QUALIFICATIONS AND REQUIREMENTS:
A. Company qualifications and requirements: The
following requirements have been instituted to ensure that companies applying
for JTIP funds meet the qualifications established by legislation.
(1) Two categories of companies are
eligible to be considered for JTIP funds:
companies that manufacture a product in New Mexico and certain
non-retail service providers. Manufacturing
businesses are typically included in sectors 31-33 of the North American
industry classification system (NAICS).
Manufacturing includes all intermediate processes required for the
production and integration of a product’s components. Industrial production, in which raw materials
are transformed into finished goods on a large scale, is one example. Assembly and installation on the customer
premises is excluded, unless the company and jobs exist for the sole purpose of
producing or installing environmentally sustainable products (see green
industries definition). A company whose
employees are compensated solely on piecework is not eligible. Other types of companies that may be eligible
under the manufacturing category are listed below:
(a) Manufacturers that perform research
and development and engineering functions for their own products in New Mexico
but manufacture elsewhere. Start-ups and
early-stage manufacturing companies. The
company must be adequately capitalized to reach first production and be able to
deliver service per criteria and procedures as set forth by and at the
discretion of the JTIP board.
(b) Renewable power generators.
(c) Film post-production companies, and
film digital production companies (such as animation and video game production
companies).
(d) Non-traditional agricultural entities
may be eligible under the manufacturing category provided that the operation is
a year-round, value-added production facility in a controlled and enclosed
environment. Such operations may have
mechanized processes, require a specialized workforce or may be involved with
research and development or technology transfer.
(e) Manufacturers that perform research
and development and engineering functions for their own products in New Mexico
but manufacture elsewhere are eligible.
(f) Start-ups and early-stage
manufacturing companies may be eligible.
The company must be adequately capitalized to reach first production and
able to deliver service per criteria and procedures as set forth by and at the discretion
of the JTIP board.
(2) Non-retail service businesses provide
a specialized service that may be sold to another business and used by the
business to develop products or deliver services. Non-retail service is not offered to the general public.
Eligible non-retail service businesses must demonstrate that at least
fifty percent of their revenues come from a customer base outside New
Mexico. Businesses that may be eligible
as non-retail service providers may include:
(a) Companies that exist for the sole
purpose of producing, installing, or integrating environmentally sustainable
products (see definition of green industries in glossary). Companies that meet the green industry
criteria are not required to generate out-of-state revenues.
(b) Service companies that provide a
non-retail service to government agencies may be eligible provided at least
fifty percent of revenue is from a customer base outside New Mexico. Revenue derived from contracts with national
research laboratories or military bases located in New Mexico is not considered
out-of-state. National research
laboratories in New Mexico or companies that operate national research
laboratories in New Mexico are not eligible.
(c) Logistics companies that provide inbound and outbound
transportation management, fleet management, warehousing, materials handling,
order fulfillment, logistics network design, inventory management, supply and
demand planning, third-party logistics management, and other support services. Logistics
services are involved at all levels in the planning and execution of the movement of
goods and information from point of origin to point of consumption for the
purpose of conforming to customer requirements.
Distribution and transloading services are included within the logistics
category.
(d) Aviation maintenance, repair and
overhaul (MRO) operations may be eligible.
MRO’s provide airframe, engine and component services to the aviation
industry, including aircraft such as planes, jets and helicopters in need of
regular maintenance, repair and adjustments to keep in working order according
to federal regulations. A contracted
third-party or the owner of the aircraft may bring the aircraft to New Mexico
for service.
(e) Start-ups and early-stage companies may
be eligible. The company must be
adequately capitalized to reach first production and able to deliver service
per criteria and procedures as set forth by and at the discretion of the JTIP
board.
(f) Business operations that do not
generate gross receipts within New Mexico may be eligible if at least fifty
percent of the customer-base is outside New Mexico and service is provided to
customers who are not physically present at the New Mexico facility. Companies in this category may be part of a
multi-state entity or corporation that have a location in New Mexico and whose
revenues flow to the New Mexico business operation, which in turn pay the wages
of the New Mexico employees and contribute to the New Mexico tax base in the
form of corporate and payroll taxes.
Businesses that may be eligible under this category may include:
(i) Headquarters
operations: The center of operations of
a business where corporate staff employees are physically employed; centralized
functions are performed, including administrative, planning, managerial, human
resources, purchasing, information technology and accounting, but not including
operating a call center; the function and purpose of which is to manage and
direct most aspects and functions of the business operations within a
subdivided area of the United States; from which final authority over regional
or sub-regional offices, operating facilities and any other offices of the
business are issued; and including national and regional headquarters if
the national headquarters is subordinate only to the ownership of the business
or its representatives and the regional headquarters is subordinate to the
national headquarters.
(ii) Shared services
centers: The entity within a corporation
responsible for the execution and the handling of specific operational tasks,
such as accounting, human resources, payroll, IT, legal, compliance,
purchasing, for a regional or national division.
(iii) Customer support centers. Customer support centers must service a customer
who is not physically present at the facility.
The customer support center must have a facility separate from other
business operations (for example, a retail store). Positions that require outbound sales,
solicitation, collections, or telemarketing are not eligible for JTIP funds,
unless they are in response to inbound requests and existing clients, or
business to business. Contract-based
customer support centers must meet special requirements. Contract-based customer support centers are
outsourcing vendors that provide information to customers of their clients on
behalf of those clients. Contract-based
customer support centers do not have a core expertise; rather they communicate
information provided to them by their clients.
Contract-based customer support centers must provide evidence of a
minimum five-year lease or purchase of a facility in New Mexico; offer
employees and their dependents health insurance coverage; and contribute at
least fifty percent of the premium for healthcare insurance for those employees
who choose to enroll. Eligibility as an
expanding company is determined by peak employment over the four prior
years. For first-time applicants, peak
employment is based on the employment average from four previous years or the
present employment level, whichever is higher.
The company must meet or exceed the average employment level for the
past four years in order to be considered an expanding
company and eligible for JTIP.
Contract-based customer support centers that have been funded in the
past four years must be expanding beyond the peak employment count achieved
with previous JTIP funds.
(3) The company must be creating new
jobs, whether due to expansion in New Mexico or relocation to the state of New
Mexico. An expanding company is defined
as an existing business that requires additional employees or workforce due to
a market or product expansion.
Eligibility as an expanding company is determined by peak employment
over the two prior years. For first-time
applicants, peak employment is based on the employment average from two
previous years or the present employment level, whichever is higher. The company must meet or exceed the average
employment level for the past two years in order to be
considered an expanding company and eligible for JTIP. For companies that have been funded by the
program within the past two years, the number of employees at the time of
previous funding application and the number funded by JTIP are also taken into
consideration. The company must be expanding
beyond the peak employment count achieved with previous JTIP funds. New Mexico unemployment insurance (UI)
reports are used to determine employment levels. A company may be allowed to exclude JTIP
intern positions and apprentices when calculating the two-year average
headcount.
(4) If a company hires twenty or more
trainees in a municipality with a population of more than 40,000 according to
the most recent decennial census or in a class H county (Los Alamos), the
company must offer its employees and their dependents health insurance coverage
that is in compliance with the NM insurance code
(Chapter 59 A). In addition, the company
must contribute at least fifty percent of the premium for health insurance for
those employees who choose to enroll.
The fifty percent employer contribution is not a requirement for
dependent coverage.
(5) Companies are required to submit
three years of financial statements (profit and loss, balance sheets,
statements of cash flow, and financing term sheets) as part of the application
process. Year-to-date financials may
also be requested. Start-ups and
early-stage companies that do not have three years of financials are required
to submit financials for the period for which they are available. Other documentation that may be requested may
include but is not limited to tax returns, evidence of operating capital and
investment funding, a business plan, evidence of signed contracts, pro forma
financial statements and sales projections which would substantiate their business
expansion. Start-ups and early stage
manufacturing companies may be eligible.
The company must be adequately capitalized to reach first production and
able to deliver service per criteria and procedures as set forth by and at the
discretion of the JTIP board.
(6) Training programs for
the production of Native American crafts or imitation Native American
crafts are only eligible when a majority of trainees or company employees are
of Native American descent. A clear
distinction of products carrying names and sources suggesting products are of
Native American origin must be made.
Total compliance with the federal trade commission and the Indian arts
and crafts board of the department of interior rules and regulations must be
made in determining authentic Native American products using labels, trademarks
and other measures.
(7) If a facility that received JTIP
funds closes or if lay-offs of JTIP trainees occur within one year of the
completion of training, the JTIP board will require the refund of the funds
associated with any JTIP trainee(s) that were claimed and subsequently
laid-off. The board will require a
refund of funds from companies whose JTIP reimbursement exceeds $100,000. The board will require a refund of funds
within 90 days of notification.
(8) Layoff is defined as a strategic and
organized event of separation of employees from an establishment that is
initiated by the employer as a result of market forces
or other factors not related to employee performance.
(9) If a JTIP eligible trainee is
laid-off during the training period and is subsequently rehired, within four
months by the same employer, the trainee can be treated as a new hire and thus
remains eligible for the remaining training hours.
(10) Businesses that are not eligible
include but are not limited to retail, construction, traditional agriculture
and farming, mining and extractive industries, health care, casinos, and
tourism-based businesses (hotels, restaurants, etc.). The board uses the North American industry classification
system (NAICS) as a general guideline to establish industry classification and
eligibility.
(11) Companies must be in good standing with
the Economic Development Department in order to be
considered for participation in JTIP.
B. Position qualifications and requirements: The
following qualifications have been established to ensure that the positions for
which funding is requested meet legislative requirements.
(1) Positions must be full-time (at least
32 hours/week) and year-round. Trainees
must be guaranteed full-time employment with the company upon successful
completion of training. Contract
positions are not eligible for JTIP funds.
(2) Trainer wages are not eligible for
JTIP funds.
(3) To attract the best candidates and
reduce turnover, companies are encouraged to set wages at a level which may be
eligible for the high wage job tax credit.
These levels are $60,000 in a municipality with a population of 40,000
or more as of the last decennial census and $40,000 in other locations. Communities defined as urban for JTIP include
Albuquerque, Las Cruces, Rio Rancho, and Santa Fe. Los Alamos is also treated as an urban
community.
(4) Eligible positions include those
directly related to the creation of the product or service provided by the
company to its customers. Positions
eligible under JTIP must directly support the primary mission of the
business. In addition, other newly
created positions may be funded up to a maximum of twenty percent of the total
number of jobs for which funding is requested, and may include non-executive,
professional support positions. Rural
companies with fewer than 20 employees may include production-related jobs
claimed on previous JTIP projects in the calculation when applying for
non-production jobs on subsequent applications.
For headquarter facilities as described under Paragraph (1) of
Subsection A above, eligible positions may only include professional support,
non-executive positions.
(5) Intern positions may be eligible
provided the trainee is enrolled in, or has graduated within the past 12 months
from, a training or academic program and meets JTIP eligibility
requirements. Intern positions may be
part-time (less than 32 hours per week).
The intern position must be relevant to the post-secondary training or
academic program in which the trainee is enrolled, or from which the trainee
has graduated, but is not required to be production or service related. Companies will be reimbursed upon evidence of
direct full-time employment offered within 90 days of completion of the
internship and graduation from the training or education program, or within 90
days of completion of the internship by a recent graduate.
(6) Remote worker trainees may be eligible if all of the trainee qualifications and requirements as defined in policy under trainee eligibility.
C. Trainee qualifications and requirements: The
company has the exclusive decision in the selection of trainees. Trainees are expected to meet company
standards on attendance, performance, and other personnel policies. All trainees must be hired within six months
of the contract start date. The
following qualifications have been established to ensure that the trainees for
which funding is requested meet legislative requirements.
(1) Trainees must be new hires. No retraining of current company employees is
allowed under the JTIP program.
Individuals who have been previously employed by or have worked as
contractors to the company are not eligible to be hired under JTIP in the same
or similar position as the one previously occupied or contracted. JTIP staff determines eligibility of these
positions and trainees on a case by case basis, and if deemed eligible,
training hours may be reduced. The
vacancy left by an existing employee moving in to a JTIP position must be
filled by the end of the project period.
Individuals who have been employed temporarily in a position classified
as intern or apprentice in order to gain practical
training that connects an academic pathway into work based or relevant business
experience may be eligible. Current
company employees may be eligible for training under the New Mexico enhanced
skills training program, STEP UP.
(2) Trainees must have resided in the
state of New Mexico for a minimum of one continuous year at any time before
beginning training. The one-year
residency requirement may not apply to a trainee hired in to an approved
high-wage position provided the trainee meets all other JTIP eligibility
requirements and moved to New Mexico with the intent of making New Mexico
his/her permanent place of residence prior to beginning work with the
participating company. All trainees must
currently be domiciled in New Mexico.
(3) Trainees must be of legal status for
employment.
(4) Trainees shall not have terminated a
public school program except by graduation or HSE (high-school equivalency)
certification within the three months prior to beginning training.
(5) Trainees who have participated in a
previous JTIP or industrial development training program are not eligible to
participate again with the same company, unless the
trainee has participated in the JTIP internship program.
(6) Trainees who are majority owners or
relatives of majority owners of the company are not eligible to participate in
JTIP.
(7) Trainee job classifications should
remain fixed during the program.
However, promotions may be allowed during the training period to another
position in the contract as long as the pay remains at
least equal to the previous job. JTIP
staff should be notified within 15 days of the promotion if the company wishes
to be reimbursed for the employee’s training.
(8) Trainees' start dates must occur
after the actual contract date.
(9) Employees hired through a temporary agency
may be eligible for funding provided the following conditions are met.
(a) The trainee must be hired by the
company as a regular/permanent full-time employee [before the end of the
JTIP contract period.] following the temporary agency’s contract agreement
that stipulates the number of consecutive work hours the assigned trainee must
meet, not to exceed “520” hours.
[(b) The trainee must receive the same
wages and major medical benefits while working as a temporary employee that
permanent employees of the company receive.
(c) The staffing agency must disclose
wages paid to the temporary employee to the company.
(d) The amount of reimbursement during
the temporary period will be the actual wage paid to the employee and will not
include extra fees paid to the staffing agency.]
(b) JTIP training hours will begin
when the trainee has been converted to a regular/permanent full-time position
of the JTIP company.
[(e) Companies are reimbursed for wages as
each trainee completes the approved training hours and after s/he has been
converted to a regular/permanent full-time employee of the JTIP contracted company.
(f)]
(c) The trainee must not have worked at the
company in a temporary position through a staffing agency prior to the board
approval date.
(10) Employees hired by a company through a
professional employer organization (PEO) may be eligible for funding provided
the PEO agrees to comply with all JTIP requirements for the compliance and
final auditor’s reviews as outlined in Subsection K of 5.5.50.12 NMAC and in
the JTIP project closeout guide.
(11) Companies are reimbursed for wages as
each trainee completes the approved training hours.
(12) If a trainee leaves the company before
completing training, the company is not eligible for any reimbursement for that
employee. If another trainee can be
hired in that position within the six month hiring period and complete training
before the contract end date, a claim can be submitted for the successful
trainee.
(13) Remote
worker trainees may be eligible if all of the trainee
qualifications and requirements as defined in policy under trainee eligibility.
[5.5.50.8 NMAC - Rp,
5.5.50.8 NMAC, 6/26/2018; A, 7/7/2021; A, 06/27/2023]
5.5.50.9 ELIGIBLE TRAINING PROGRAMS:
A. The
authorizing legislation establishes the following criteria for training.
(1) Training projects shall, to the
extent possible, be customized to meet the company's specific needs.
(2) Training projects shall provide
quick-response classroom and on the job training.
(3) Training shall provide New Mexico
residents with improved economic status through employment.
(4) Training shall provide measurable
growth to the economic base of New Mexico.
B. The
types of training projects eligible under the job training incentive program
are:
(1) structured on-the-job training (OJT)
and “hands on” skill development at the company’s facility;
(2) custom classroom training provided by
a New Mexico post-secondary public educational institution;
(3) a combination of classroom and OJT as
described above.
C. On-the-job training:
Training is conducted at the participating company's facility and
generally involves structured on-the-job training (OJT) or ‘hands-on” skill
development. Although certain modules may
be conducted in a classroom setting at the company location, the training is
still considered OJT. The training must
be customized to develop essential skills particular to the company's needs.
(1) A comprehensive training plan is
required as part of the proposal for funding.
The training plan must include the company job description, O*NET job
description, and training units. Each
unit will include core content or objectives, methods and materials, methods of
evaluation and requested hours. The training
plan must cover the entire period for which reimbursement is requested. A more detailed description of the training
plan requirements is included in the JTIP online application and proposal
guide.
(2) The participating company is responsible
for providing the necessary facilities, equipment, materials and training
staff. Trainer’s wages are not eligible
for funding through JTIP.
(3) The executed contract will comply
with governing legislation.
D. Custom training provided by a New
Mexico post-secondary public educational institution:
Training is conducted by a New Mexico post-secondary public educational
institution in a classroom setting either on campus or at the work site. This type of training is typically
coordinated through the institution’s workforce training center. At least three trainees must participate in
classroom training, which should be customized to meet the specific needs of
the company. Only JTIP trainees are
eligible to attend the training at JTIP’s expense. If appropriate training opportunities are not
available through public institutions, private institutions may be
considered. The educational institution
must provide a separate proposal to the JTIP board. The custom training outlined in this proposal
must be integrated with the proposal submitted by the company for trainee
wages.
(1) The contracted institution or the
participating company will work with the economic development department to
establish the contract, its content, scope, and training standards to ensure
that the program meets or exceeds the company's requirements.
(2) The contracted custom training will
be integrated into the training plans submitted by the company in the
coordinating JTIP proposal.
(3) The contracted custom training will
be conducted within the initial training period approved by the JTIP board.
(4) Payment for classroom training
services shall be made only for a qualified and approved program. [Reimbursement for classroom training will
be at a maximum rate of $35 per hour of training per trainee with a cap of
$1,000 per employee. Tuition
reimbursement and industry certification programs are not eligible for JTIP
funding.] Reimbursement for classroom training is consistent with JTIP
policy and range from fifty percent to seventy-five percent based on company
location. If the employer’s in-kind contribution to the training (employee
wages paid to JTIP trainee while attending classroom training exceed the cost
of the training, then the reimbursement will be one hundred percent. Industry recognized certification programs are
eligible for JTIP funding. The training may be provided through public or
private educational institutions in New Mexico, private training organizations,
national training certification programs, corporate trainers or a combination
of training providers. The training may be conducted at the business’s own
facility, at the training provider’s facility or virtually. Reimbursement for
classroom training will have a cap of $6,000 per trainee.
(5) Facilities rental outside a public
educational institution and equipment rental or purchase are not eligible for
JTIP funds unless facilities are not available at the company or the
educational institution.
(6) The executed contract shall comply
with the governing legislation.
[5.5.50.9 NMAC - Rp,
5.5.50.9 NMAC, 6/26/2018; A, 06/27//2023]
5.5.50.10 REIMBURSABLE
EXPENSES:
A. The following expenses may be eligible for reimbursement
through JTIP
(1) A percentage of trainee wages for up
to six months of initial training.
(2) Cost of providing custom classroom
training at a New Mexico post-secondary public educational institution [at a
maximum of $35 per hour of training per trainee and] with a cap of [$1,000]
$6,000 per [employee] trainee. Reimbursement for classroom
training is consistent with JTIP policy and ranges from fifty percent to
seventy-five percent based on company location.
(3) A percentage of intern wages for up
to 640 training hours.
B. Standard reimbursement rates for wages range up to
seventy-five percent. Positions that
meet the JTIP requirements with starting wages at levels eligible for the high
wage job tax credit may be also eligible for an additional five percent wage
reimbursement. Positions filled by
trainees who meet any of the three following criteria may be eligible for an
additional five percent wage reimbursement above the standard rates if the
approved entry wage is at least the minimum rate for the Job Zone as outlined
in the JTIP wage chart on Paragraph (2) of Subsection D. of 5.5.50.10 NMAC for
Zones 1, 2, 3 and 4:
(1) Trainee has graduated out of the New
Mexico Foster Care System.
(2) Trainee has graduated within the past
12 months from a post-secondary training or academic program at a New Mexico
institution of higher education.
(3) Trainee is a U.S. veteran.
Companies may
combine any one of the three conditions above with the additional five percent
wage reimbursement for high-wage positions, for a total additional wage
reimbursement not to exceed ten percent above the standard rates. If a company is participating in other job
reimbursement training programs such as the Workforce Innovation and
Opportunity Act (WIOA), the combined reimbursement to the company may not
exceed one hundred percent.
C. JTIP approved employers that utilize business support
services through the recognized New Mexico Workforce Connection offices across
the state or through other independent human resource support service providers
that help small businesses develop successful recruitment strategies to grow
and retain their workforce may be eligible for an additional five percent
reimbursement above the standard rates.
[C.] D. The job training incentive program allows
for reimbursement only at the completion of training. If an employee does not complete the training
period, no funds can be claimed for that employee. If another trainee can be hired in that
position within the six month hiring period and complete training before the
contract end date, a claim can be submitted for the successful trainee.
[D.]
E. Wage reimbursement:
(1) Trainee wages are generally the
largest expense associated with training.
JTIP reimburses the company for a significant portion of trainee wages
during the initial training period. The
percentage of standard reimbursement ranges up to seventy-five percent,
depending on the business location.
(2) The number of hours eligible for
reimbursement varies by position, up to 1,040 hours (six months). The number of hours eligible for
reimbursement for each position is based on the O*NET (occupational information
network) job zone classification for the O*NET position which most closely
matches the company’s job description and the wage
paid the trainee at the point of hire.
The O*NET system, sponsored by the US department of labor, is available
at http://onetonline.org. Each job in
the O*NET system is assigned to one of five job zones, with recommended
training hours for each zone. For fiscal
[years 2023-] year 2024, the JTIP board may maintain wage requirements
effective in the first year of JTIP approval for the length of the job
ramp within the project participation agreement (PPA) for companies that are
also engaged in a LEDA agreement with the economic development department
provided the company meets job creation requirements within the period and
wages do not fall below the statewide minimum wage.
The number of
recommended hours for fiscal [years 2023 and] year 2024 are outlined in
the [tables] table below.
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General Guideline for Duration of
Reimbursable Training Time/Wages for FY2024 (July 1, 2023-June 30, 2024 |
|||||||
|
Job Zone |
Definitions |
SVP Range/Conversions |
Hours |
Min. Wage @ Hiring - Urban |
Min. Wage @ Hiring - Rural |
Days |
Weeks |
|
1 |
Little or no
preparation needed |
Below 4.0 |
320 |
15.50 |
13.18 |
40 |
8 |
|
2a |
Some preparation
needed |
4.0 to < 6.0 |
480 |
17.00 |
13.68 |
60 |
12 |
|
2 |
Some preparation
needed |
4.0 to < 6.0 |
640 |
18.50 |
14.18 |
80 |
16 |
|
3a |
Medium preparation
needed |
6.0 to < 7.0 |
800 |
20.00 |
15.68 |
100 |
20 |
|
3 |
Medium preparation
needed |
6.0 to < 7.0 |
960 |
21.50 |
16.68 |
120 |
24 |
|
4 |
Considerable
preparation needed |
7.0 to < 8.0 |
1,040 |
24.50 |
17.68 |
130 |
26 |
|
|
Align with HWJTC |
Additional five
percent |
|
28.85 |
19.23 |
|
|
(3) The JTIP staff will ensure that the
O*NET occupations match the company job description for the requested position
and that training hours requested do not exceed the O*NET guideline. The board will also review the company's
educational and experience requirements of the applicants to determine the
degree of match with the company's job descriptions. The JTIP board may award training hours based
on the O*NET guideline unless the company clearly substantiates that additional
hours are required. In determining the
appropriate number of training hours, the board considers the training plan,
the training objectives, and the hourly wage at point of hire associated with
the position.
(4) The board has also adopted a wage
requirement for JTIP participation. The
wage requirement varies by job zone and company location (rural/urban). These requirements are listed in the tables
above. If a company establishes a wage
range which includes wages below the minimum wage recommended for that position
and job zone, the number of hours eligible for reimbursement may be reduced
from the O*NET recommended hours as per criteria and procedures set forth by
and at the discretion of the JTIP board, which may include consideration of the
company benefits package. Generally, the
hours are reduced to the hours allowed for the next lower job zone. The reimbursement percentages may be adjusted
at the discretion of the board based on availability of funds or sufficient
appropriations.
(5) The percentage of wages reimbursed
depends primarily on the business location.
The categories for location are urban, rural, frontier, economically
distressed, and Native American land.
(a) Companies located in urban areas
(cities with population above 60,000 in the most recent federal decennial
census) and Class H counties (i.e., Los Alamos) are reimbursed at up to fifty
percent for all eligible training hours.
Urban communities are: Albuquerque 562,599, Las Cruces 112,914, Rio
Rancho 105,834, and Santa Fe 88,193.
(b) Companies located in rural areas,
outside those listed above are reimbursed at up to sixty-five percent for all
eligible training hours.
(c) Companies located in frontier areas
(communities with a population of 15,000 or fewer and outside an MSA) are
reimbursed at up to seventy-five percent for all eligible training hours.
(d) Companies located in an economically
distressed area in New Mexico are eligible for up to seventy-five percent
reimbursement. To receive up to
seventy-five percent reimbursement, a company must be located
in a county with an unemployment rate significantly higher than the
state unemployment rate. However, the
JTIP board may entertain an exception to this policy when a company is located in a community experiencing a combination of
other distressed economic conditions such as recent significant job losses due
to business closures or down-sizing, a decline in population, loss of gross
receipts or other factors.
(e) Companies located on Native American
reservations are eligible for up to seventy-five percent reimbursement.
(f) Companies located in federally
designated colonias in New Mexico are eligible for up to seventy-five percent
reimbursement for all eligible training hours.
(6) JTIP eligible positions with starting
wages eligible for the high wage job tax credit may be eligible for an
additional five percent reimbursement.
These requirements are a hiring salary of $60,000 or higher in an urban
or class H county and a hiring salary of $40,000 or higher in a rural location
or economically disadvantaged area. Trainee requirements are still factors for
JTIP eligibility. The percentage of
wages reimbursed for high-wage positions filled by trainees who do not meet the
one-year residency requirement is unique and not subject to any additional wage
reimbursement above the standard rate.
Companies located in urban areas and Class H counties are reimbursed up
to thirty percent for all eligible training hours. Companies located in rural areas are
reimbursed up to forty percent for all eligible training hours. Companies located in frontier areas are
reimbursed up to fifty percent for all eligible training hours.
(7) JTIP eligible positions filled by
trainees who have graduated within the past 12 months from a post-secondary
training or academic program at a New Mexico institution of higher education
may be eligible for an additional five percent reimbursement.
(8) JTIP eligible positions filled by
U.S. veterans may be eligible for an additional five percent reimbursement.
(9) Trainee has graduated out of the NM
Foster Care System may be eligible for an additional five percent reimbursement.
(10) Additional guidelines for wage reimbursement:
(a) Eligible trainee hours shall not
exceed 1,040 hours per trainee (six months) based on the company's scheduled
workweek, not to exceed 40 hours per week.
(b) Reimbursement is calculated on base
pay only. Bonus pay, overtime,
commission and stock options are not eligible for reimbursement.
(c) If the company compensates the
trainee for annual, holiday or sick leave during the approved training period,
those hours are included in the approved training hours at the base rate.
(d) Any training hours that exceed the
contracted amount are the responsibility of the company.
(e) If a company is participating in
other job reimbursement training programs such as WIOA, the combined
reimbursement to the company may not exceed one hundred percent.
(f) Additional wage reimbursement may
not exceed ten percent above the standard rates. Companies may combine the
additional five percent wage reimbursement for high-wage jobs with one of the
three following conditions for an additional five percent wage reimbursement
provided the entry wage is at least the minimum rate for the job zone as
outlined in the JTIP wage chart on Paragraph (2) of Subsection D of 5.5.50.10
NMAC for Zones 1, 2, 3 and 4:
(i) the trainee has
graduated out of the New Mexico foster care system;
(ii) the trainee has graduated within the
past 12 months from a post-secondary training or academic program at a New
Mexico institution of higher education;
(iii) the trainee is a U.S. veteran. High-wage positions filled by trainees who do
not meet the one-year residency requirement are not eligible for additional
wage reimbursement above the standard rate.
[E.]
F. Reimbursement for custom classroom
training: Payment for custom classroom training
services provided by public post-secondary educational institutions is
restricted to instructional costs. The
rate of reimbursement to the institution is at a maximum of [$35 per hour
per trainee with a cap] of [$1,000] $6,000 per trainee. Instructional costs for classroom training
conducted by an educational institution may include course development,
instructional salaries, relevant supplies and materials, expendable tools,
accounting services, and other costs associated with conducting the training
program. No training equipment may be
purchased or rented using JTIP funds.
[5.5.50.10 NMAC -
Rp, 5.5.50.10 NMAC, 6/26/2018; A, 1/1/2020; A, 7/14/2020; A, 7/7/2021; A,
7/12/2022; A, 06/27/2023]
5.5.50.12 PROCEDURAL
OVERVIEW: The procedures for completing a funding proposal and the administration
of a project are explained in detail in the JTIP online application and
proposal guide and the JTIP policy and procedures manual.
A. Proposals
and contract amendments must be submitted to the economic development
department, JTIP, no less than four weeks before the JTIP board meeting at
which the proposal will be considered for funding.
B The
contract start date is the date of the board meeting at which funding was
approved.
C. Eligible
job openings must be registered with the New Mexico workforce connection.
D. The
company must hire trainees within six months of the contract start date.
E. The
company must submit an online hiring report at the end of the six month hiring
period.
F. Claims
for reimbursement should be submitted as trainees complete training.
G. Each
project is subject to compliance reviews throughout the term of the contract.
H. The
company must arrange for an agreed upon procedure in accordance with generally
accepted standards and the general requirements included in the statements on
standards for attestation engagements, as issued by the American institute of
certified public accountants upon completion of the training.
I. The
final claim for reimbursement should be submitted with the completed agreed
upon procedures report.
J. Yearly
follow-ups may be conducted to show effectiveness of the program, including
surveys to address company retention, wage rates of program trainees and
business and industry needs for industry recognized certifications and
credentials by the economic development department, the department of workforce
solutions and the public education department.
K. Companies
that fail to comply with all established operating requirements, closeout
procedures, and follow-up studies are not eligible to apply for future
participation in JTIP.
L. Companies
that are not in good standing with other Economic Development Department
programs may not be eligible for JTIP.
[M. EDD
and JTIP are taking steps to address setbacks that JTIP companies may encounter
due to a public health emergency. The board has elected to adopt the following
procedural adjustments through FY2023 in order to
support companies during this time and into recovery.
(1) JTIP companies that are still within
the 6-month hiring period and have suspended their hiring plans, may be allowed
to extend the hiring by two months.
If the company deems it necessary to postpone hiring for a longer
period, JTIP staff will work with the company on a re-application at the
appropriate time.
(2) If a JTIP company has
to temporarily reduce hours of operation the public health emergency was
in place, part-time hours worked by JTIP trainees may be eligible for
reimbursement provided the trainees have returned to full-time employment.]
[5.5.50.12 NMAC -
Rp, 5.5.50.12 NMAC, 6/26/2018; A, 7/14/2020; A, 7/7/2021; A, 7/12/2022; A, 06/27/2023]
5.5.50.15 GLOSSARY:
A. Apprentice: Individual who has participated
in a work-based training program through the NM Department of Workforce
Solutions with the JTIP company.
B. Agriculture (traditional)/mining/extractive industries:
Companies classified in agriculture, mining, and extractive by the North
American industry classification system (NAICS) are not eligible for JTIP.
C. Company: A company is a corporation, or less commonly,
an association partnership or union that carries on a commercial or industrial
enterprise. Generally, a company may be
a corporation, partnership, association, joint-stock company, or organized
group of persons, whether incorporated or not, and (in an official capacity),
legally recognized organizational entity designed to provide goods or services
to consumers or corporate entities such as governments, charities, or other
businesses.
D. Distribution:
A distributor is the middleman between the manufacturer and the
retailers. After a product is
manufactured, it may be warehoused or shipped to the next echelon in the supply
chain, typically either a distributor, retailer or customer.
E. Economically distressed areas:
Companies located in an economically distressed area in New Mexico are
eligible for seventy-five percent reimbursement. To receive a seventy-five percent
reimbursement, a company must be located in a county
with an unemployment rate significantly higher than the state unemployment
rate. However, the JTIP board may
entertain an exception to this policy when a company is
located in a community experiencing a combination of other distressed
economic conditions such as recent significant job losses due to business
closures or down-sizing, a decline in population, loss of gross receipts or
other factors.
F. Expanding company:
An expanding company is an existing business which requires additional employees
or workforce due to a market or product expansion. A company which buys out an existing company
is not considered a new company.
Eligibility as an expanding company is determined by average employment
over the two prior years. (Refer to
“peak employment.”)
G. Film and multimedia post production: Film digital production and post-production
companies are considered manufacturing provided the company operates year round
and is primarily engaged in any of the following: animation, editing, foley recording,
automatic dialogue replacement, sound editing, special effects (including
computer generated imagery or other effects), scoring, and music editing,
beginning and end credits, negative cutting, soundtrack production, dubbing,
subtitling, or addition of sound or visual effects. Production jobs must be full-time and
qualifying trainees must be employed year-round. Position must not require trainee to complete
product on filming location. Trainee may
not be directly employed by the client company at any time.
H. Frontier: A
frontier area is any community with a population of less than 15,000 based on
the most recent decennial census and outside a designated MSA.
I. Green
industries: Those that exist for the
sole purpose of contributing directly to preserving or enhancing environmental
quality by reducing waste and pollution or by producing sustainable products
using sustainable processes and materials.
Green industries may include:
energy system retrofits to increase energy efficiency and conservation;
production and distribution of biofuels and vehicle retrofits for biofuels;
building design and construction that meet the equivalent of best available
technology in energy and environmental design standards; organic and community food
production; manufacture of products from non-toxic, environmentally certified
or recycled materials; manufacture and production of sustainable technologies,
including solar panels, wind turbines and fuel cells; solar technology
installation and maintenance; recycling, green composting and large-scale reuse
of construction and demolition materials and debris; and water system retrofits
to increase water efficiency and conservation.
J. High wage job tax credit: The
high wage job tax credit provides a tax credit of ten percent of the wages and
benefits paid for each new economic-based job created on or after July 1, 2015,
not to exceed $12,000 per year per job.
Qualified jobs must pay at least $40,000 per year in a community with a
population of less than 60,000 and $60,000 per year in a community with a
population of 60,000 or more. Eligible
jobs must also be occupied for at least 48 weeks by the employee.
K. Independent Human Resource Support Services: Are third-party services other than staffing
agencies and professional employment agencies (PEO’s), used by businesses to compliment existing HR processes or to fill the gap when
business completely lacks HR personnel or capabilities. HR support services
include recruiting and retention strategies, interviewing effectiveness
training, job description and training plan development, skills assessment
tools, salary benchmarking, fostering company culture as well as organizational
and employee data management, and activities in learning and development.
L. Intern: A student or recent graduate (within one
year) of an academic or training program who works at a trade or occupation in order to gain work experience.
[K.] M. Manufacturing: Manufacturing includes all intermediate
processes required for the production and integration of a product’s
components. Industrial production in
which raw materials are transformed into finished goods on a large scale is one
example. Assembly and installation on
the premises of the customer is not included as manufacturing. Manufacturing businesses are typically
included in Sectors 31-33 of NAICS.
Manufacturing is defined in Subsection E of Section 7-4-10 NMSA 1978 as
“combining or processing components or materials to increase their value for
sale in the ordinary course of business but does not include:
(1) construction;
(2) farming;
(3) power generation, except for
electricity generation at a facility other than one for which both location
approval and a certificate of convenience and necessity are required prior to
commencing construction or operation of the facility, pursuant to the Public
Utility Act and the Electric Utility Industry Restructuring Act of 1999; or
(4) processing natural resources,
including hydrocarbons.”
[L.] N. NAICS:
North American industry classification system (NAICS) is an industry
classification system that groups establishments into industries based on the
activities in which they are primarily engaged.
This comprehensive system covers the entire field of economic
activities, producing and non-producing.
The NAICS system replaced the standard industrial classification (SIC)
system. NAICS information is available
at www.census.gov/cgi-bin/sssd/naics/naicsrch.
[M.] O. Native American crafts: Contracts may be awarded for training
programs involved in the production of Native American crafts or imitation
Native American crafts only when a majority of
trainees or company employees are of Native American descent. A clear distinction of products carrying
names and sources suggesting products are of Native American origin must be
made. Total compliance with the federal
trade commission and the Indian arts and crafts board of the department of
interior rules and regulations must be made in determining authentic Native
American products using labels, trademarks and other measures.
[N.] P. New company: A new company is defined as a company not
currently in operation in the state which shows evidence of intent to establish
operations in New Mexico. The company
must have a New Mexico tax ID when applying for JTIP funds.
[O.] Q. Non-retail service sector business: To be considered for JTIP funding, the
company must provide services which are not retail in nature and must export
fifty percent of the services outside of New Mexico. To be considered for JTIP participation,
non-retail service companies provide a specialized service that may be sold to
another business and used by the business to develop products or deliver
services. Non-retail service is not
offered to the general public and is provided to
customers who are not physically present at the New Mexico facility. Non-retail service businesses which meet the
JTIP criteria for green industry are exceptions to the requirement that at
least fifty percent of the customer base be located outside New Mexico.
[P.] R. O*NET:
The occupational information network - O*NET database takes the place of
the dictionary of occupational titles (DOT) as the nation's primary source of
occupational information. The number of
training hours for which a position is eligible for reimbursement through JTIP
is based on the number of hours recommended for the position in O*NET. The O*NET database is available at
http://onetonline.org.
[Q.] S. Peak employment: First time JTIP applicants: Peak employment will be based on the
employment average from two previous years or the present employment level,
whichever is higher. The board will
utilize the state of New Mexico unemployment insurance (UI) reports to
determine peak employment at the time of application to ensure an expansion is
indeed occurring.
[R.] T. Peak employment: Previous JTIP participants: Peak employment for previous participants
will be based on the employment level at the time of the award of the last JTIP
contract plus the number of employees funded through that contract. In cases in which a number
of years have passed since prior funding, the board may utilize the
state of New Mexico unemployment insurance (UI) report for the last two years
to determine peak employment at the time of reapplication to ensure an
expansion is indeed occurring.
[S.] U. Remote Worker: A person who is working partially or entirely
at a remote work site. Remote work site
is any location where a worker performs work duties that is separate from the
physical location of the company.
[T.] V. Retail trade: Retail establishments are those which are
engaged in retailing merchandise and rendering services incidental to the sale
of merchandise, such as installation.
Retailers may operate fixed point-of-sale locations, located and
designed to attract a high volume of walk-in customers, or use other forms of
sales techniques, including the sale of goods through the internet, online
catalogs, portable stalls, and infomercials.
Retail trade is usually the final step in the production and
distribution of goods and usually sells small amounts of a product to
individuals.
[U.] W. Renewable energy: is a source of power generated from resources
which are naturally replenished, including but not limited to electricity or
heat derived from solar, wind, tidal power, hydropower, biomass, geothermal
resources and biofuels or hydrogen produced from renewable resources.
[V.] X. Southwestern arts and crafts: Refer
to department of interior Indian arts and crafts board; Indian arts and crafts
association; council of better business bureau; federal trade commission.
[W.] Y. Transloading services: The process of transferring a
shipment from one mode of transportation to another in order
to have goods reach their final destination. It is most commonly
employed when it is physically impossible or is not economically
efficient to transport goods to a final destination using only one mode of
transportation. Companies that ship
goods internationally are likely to use multiple methods of transport,
especially if both the shipping point and the destination are located inland.
[X.] Z Urban communities: An urban community is defined as a
municipality with a population of sixty thousand or more according to the most
recent federal decennial census. Those
communities are:
Albuquerque (545,852), Las Cruces (97,618), Rio Rancho (87,521), and
Santa Fe (67,947). Class H counties
(i.e., Los Alamos) fall under the same guidelines for reimbursement as urban
communities.
[Y.] AA. Metropolitan statistical area: An MSA is a statistical standard designated
and defined by the U.S. department of commerce, office of federal statistical
policy and standards (OFSPS). MSA’s are
designated so that governmental agencies will use a common geographical
classification in the production of data on metropolitan areas in the
nation. The general concept of an MSA is
one of a large population nucleus, together with any adjacent communities which
have a high degree of economic and social integration with that nucleus. In New Mexico there are four MSA’s. Albuquerque MSA includes Bernalillo,
Sandoval, Valencia, and Torrance counties.
Santa Fe MSA includes Santa Fe county.
Las Cruces MSA includes Dona Ana county and Farmington MSA includes San
Juan county.
[Z.] AB. Rural: Any area located outside communities defined
as urban in the JTIP policy.
[AA.] AC. Veteran: A New Mexico resident who is registered with
the New Mexico workforce connection, and who served in the active military,
naval or air service and who was discharged or released under conditions other
than dishonorable.
[AB. Intern: A student or recent graduate (within one
year) of an academic or training program who works at a trade or occupation in order to gain work experience.]
[5.5.50.15 NMAC -
Rp, 5.5.50.15 NMAC, 6/26/2018; A, 7/14/2020; A, 7/7/2021; A, 06/27/2023]