Current through Register Vol. 35, No. 6, March 26, 2024
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
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) JTIP training hours will
begin when the trainee has been converted to a regular/permanent full-time
position of the JTIP company.
(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.