STATE OF
MINNESOTA
NINETY-FIRST
SESSION - 2019
_____________________
THIRTY-FIFTH
DAY
Saint Paul, Minnesota, Tuesday, April 9, 2019
The House of Representatives convened at 9:00
a.m. and was called to order by Liz Olson, Speaker pro tempore.
Prayer was offered by the Reverend Richard
D. Buller, Valley Community Presbyterian Church, Golden Valley, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The Speaker assumed the Chair.
The roll was called and the following
members were present:
Acomb
Albright
Anderson
Bahr
Baker
Bennett
Bernardy
Bierman
Boe
Brand
Cantrell
Carlson, A.
Carlson, L.
Christensen
Claflin
Considine
Daniels
Daudt
Davids
Davnie
Dehn
Demuth
Dettmer
Drazkowski
Ecklund
Edelson
Elkins
Erickson
Fabian
Fischer
Franson
Freiberg
Garofalo
Gomez
Green
Grossell
Gruenhagen
Gunther
Haley
Halverson
Hamilton
Hansen
Hassan
Hausman
Heinrich
Heintzeman
Her
Hornstein
Howard
Huot
Johnson
Jurgens
Kiel
Klevorn
Koegel
Kotyza-Witthuhn
Koznick
Kresha
Kunesh-Podein
Layman
Lee
Lesch
Liebling
Lien
Lillie
Lippert
Lislegard
Loeffler
Long
Lucero
Lueck
Mahoney
Mann
Mariani
Marquart
Masin
McDonald
Mekeland
Miller
Moller
Moran
Morrison
Munson
Murphy
Nash
Nelson, M.
Nelson, N.
Neu
Noor
Nornes
Olson
O'Neill
Pelowski
Persell
Petersburg
Pierson
Pinto
Poppe
Poston
Pryor
Quam
Richardson
Robbins
Runbeck
Sandell
Sandstede
Sauke
Schomacker
Scott
Stephenson
Sundin
Swedzinski
Tabke
Theis
Torkelson
Urdahl
Vang
Vogel
Wagenius
Wazlawik
Winkler
Wolgamott
Xiong, J.
Xiong, T.
Youakim
Zerwas
Spk. Hortman
A quorum was present.
Backer, Bahner, Becker-Finn, Hertaus,
O'Driscoll, Schultz and West were excused.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
REPORTS OF CHIEF CLERK
S. F. No. 558 and
H. F. No. 300, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Pinto moved that
S. F. No. 558 be substituted for H. F. No. 300
and that the House File be indefinitely postponed. The motion prevailed.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Lesch from the Judiciary Finance and Civil Law Division to which was referred:
H. F. No. 2206, A bill for an act relating to health licensing; making technical changes; expanding duty to warn and reciprocity for certain mental health professionals and social workers; amending Minnesota Statutes 2018, sections 148B.56; 148B.593; 148E.240, subdivision 6; 148F.03; 148F.13, subdivision 2.
Reported the same back with the recommendation that the bill be placed on the General Register.
The
report was adopted.
Carlson, L., from the Committee on Ways and Means to which was referred:
H. F. No. 2208, A bill for an act relating to jobs; appropriating money for the Departments of Employment and Economic Development, Labor and Industry, Human Services, and Commerce; the Bureau of Mediation Services; Public Employment Relations Board; Housing Finance Agency; Workers' Compensation Court of Appeals; and Public Utilities Commission; making policy and technical changes; modifying fees; providing criminal and civil penalties; requiring reports; amending Minnesota Statutes 2018, sections 16C.285, subdivision 3; 116J.8731, subdivision 5; 116J.8748, subdivision 4; 177.27, subdivisions 2, 4, 7, 8, by adding subdivisions; 177.30; 177.32, subdivision 1; 181.03, subdivision 1, by adding subdivisions; 181.032; 181.101; 182.659, subdivision 8; 182.666, subdivisions 1, 2, 3, 4, 5, by adding a subdivision; 326B.802, subdivision 15; 327C.095, subdivisions 1, 2, 3, 4, 12, 13; 341.30, subdivision 1; 341.32, subdivision 1; 341.321; 345.515; 345.53, subdivision 1, by adding a subdivision; 609.52, subdivisions 1, 2, 3; proposing coding for new law in Minnesota Statutes, chapters 177; 181; 216C; proposing coding for new law as Minnesota Statutes, chapter 345A; repealing Minnesota Statutes 2018, sections 177.27, subdivisions 1, 3; 345.53, subdivision 2.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
JOBS APPROPRIATIONS
Section 1. JOBS
AND ECONOMIC DEVELOPMENT. |
(a) The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal years indicated for each purpose. The figures "2020" and
"2021" used in this article mean the
appropriations
listed under them are available for the fiscal year ending June 30, 2020, or
June 30, 2021, respectively. "The
first year" is fiscal year 2020. "The
second year" is fiscal year 2021. "Each
year" means each of fiscal years 2020 and 2021.
(b) If an appropriation in this article is
enacted more than once in the 2019 legislative session, the appropriation must
be given effect only once.
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APPROPRIATIONS |
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Available for the Year |
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Ending June 30 |
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2020 |
2021 |
Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT |
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Subdivision 1. Total
Appropriation |
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$169,405,000 |
|
$139,075,000 |
Appropriations
by Fund |
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2020
|
2021 |
General |
134,933,000
|
104,804,000
|
Remediation |
700,000
|
700,000
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Workforce Development |
33,772,000
|
33,571,000
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The amounts
that may be spent for each purpose are specified in the following subdivisions.
Subd. 2. Business
and Community Development |
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47,121,000
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34,230,000
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Appropriations
by Fund |
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General |
44,721,000
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31,830,000
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Remediation |
700,000
|
700,000
|
Workforce Development |
1,700,000
|
1,700,000
|
(a) $9,350,000 the first year is for:
(1) the greater Minnesota business
development public infrastructure grant program under Minnesota Statutes,
section 116J.431;
(2) the spark program, formerly known as
the business development competitive grant program;
(3) the community prosperity grant program;
(4) a grant to the Minnesota Design Center
at the University of Minnesota for the greater Minnesota community design
program; and
(5) a grant to Red Wing Ignite for economic
development activities focused on technology and innovation in Southeastern
Minnesota.
The
commissioner has discretion to allocate this appropriation among the listed
programs, including awarding zero funds to a listed program or grantee. The commissioner has discretion to stipulate
reasonable terms for individual programs and grants. Of this amount, up to four percent is for
administration and monitoring of the funded programs. This appropriation is available until June
30, 2022.
(b) $2,500,000 each year is for the
Minnesota Innovation Collaborative. This
is a onetime appropriation and funds are available until June 30, 2023. Of this amount:
(1) $1,600,000 each year is for innovation
grants to eligible Minnesota entrepreneurs or start-up businesses to assist
with their operating needs. Of this
amount, five percent is for the department's administrative costs;
(2) $450,000 each year is for
administration of the Minnesota Innovation Collaborative; and
(3) $450,000 each year is for grantee
activities at the Minnesota Innovation Collaborative. Of this amount, five percent is for the
department's administrative costs.
(c) $1,772,000 each year is from the
general fund and $700,000 each year is from the remediation fund for
contaminated site cleanup and development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. These
appropriations are available until spent.
(d) $139,000 each year is for a grant to
the Rural Policy and Development Center under Minnesota Statutes, section
116J.421.
(e) $25,000 each year is for the
administration of state aid for the Destination Medical Center under Minnesota
Statutes, sections 469.40 to 469.47.
(f) $875,000 each year is for the host
community economic development grant program established in Minnesota Statutes,
section 116J.548.
(g) $500,000 the first year and $125,000
the second year are for grants to the White Earth Nation for the White Earth
Nation Integrated Business Development System to provide business assistance
with workforce development, outreach, technical assistance, infrastructure and
operational support, financing, and other business development activities. This is a onetime appropriation.
(h) $875,000 each year is for a grant to
Enterprise Minnesota, Inc. for the small business growth acceleration program
under Minnesota Statutes, section 116O.115.
This is a onetime appropriation.
(i)
$300,000 each year is for a grant to Enterprise Minnesota, Inc. to provide
business performance assessments to Minnesota manufacturers with 50 or fewer
employees, with focus on very small and rural locations. The assessment findings must position
Minnesota manufacturers to retain and recruit employees and grow in their
community. This is a onetime
appropriation.
(j) $250,000 the first year is for a grant
to the Rondo Community Land Trust for improvements to leased commercial space
in the Selby Milton Victoria Project that will create long-term affordable
space for small businesses and for build-out and development of new businesses.
(k) $1,175,000 each year is for a grant to
the Metropolitan Economic Development Association (MEDA) for statewide business
development and assistance services, including services to entrepreneurs with
businesses that have the potential to create job opportunities for unemployed
and underemployed people, with an emphasis on minority-owned businesses. This is a onetime appropriation.
(l) $2,865,000 the first year is for grants
for projects that support economic development by increasing the availability
of child care. Eligible recipients for
these grants are limited to:
(1) WomenVenture;
(2) the Minnesota Initiative Foundations;
and
(3) eligible applicants under the child
care economic development grant program.
The commissioner has discretion to allocate
the available grant funds among the listed eligible recipients, including
awarding zero funds to a listed entity. The
commissioner has discretion to stipulate reasonable terms for individual
programs and grants. Of this amount, up
to four percent is for administration and monitoring of the funded programs. This appropriation is available until June
30, 2021.
(m)(1) $750,000 each year is for grants to
the Neighborhood Development Center for small business programs. This is a onetime appropriation.
(2) Of the amount appropriated in the first
year, $150,000 is for outreach and training activities outside the seven-county
metropolitan area, as defined in Minnesota Statutes, section 473.121,
subdivision 2.
(n)(1) $50,000 the first year is for grants
to support broadband connections for coworking spaces designed to foster
start-up businesses. Grant recipients
must be located in an unserved area or
an
underserved area for broadband, as defined in Minnesota Statutes, section
116J.394. Grant recipients must obtain a
100 percent nonstate match to grant funds in either cash or in-kind
contributions, though matching funds may be used for expenses of the coworking
space other than broadband. This is a
onetime appropriation.
(2) Within one year of receiving grant
funds, grant recipients must report to the commissioner on the outcomes of the
grant program including but not limited to the number of start-up businesses
served and the amount of local funds invested.
(o) $6,772,000 each year is for the
Minnesota job creation fund under Minnesota Statutes, section 116J.8748. Of this amount, the commissioner of
employment and economic development may use up to three percent for
administrative expenses. In fiscal years
2022 and beyond, the base amount is $5,500,000.
This appropriation is available until expended.
(p)(1) $6,935,000 the first year and $6,934,000
the second year are for the Minnesota investment fund under Minnesota Statutes,
section 116J.8731. Of this amount, the
commissioner of employment and economic development may use up to three percent
for administration and monitoring of the program. In fiscal years 2022 and beyond, the base
amount is $5,500,000. This appropriation
is available until expended.
(2) Of the amount appropriated in the first year, $2,000,000 is for a loan to a paper mill in Duluth for a retrofit project that will support the operation and manufacture of packaging paper grades. The company that owns the paper mill must spend $20,000,000 on project activities by December 31, 2020, in order to be eligible to receive this loan. Loan funds may be used for purchases of materials, supplies, and equipment for the project and are available from July 1, 2019, to July 30, 2021. The commissioner of employment and economic development shall forgive 25 percent of the loan each year after the second year during a five-year period if the mill has retained at least 200 full-time equivalent employees and has satisfied other performance goals and contractual obligations as required under Minnesota Statutes, section 116J.8731.
(q) $1,000,000 each year is for the
Minnesota emerging entrepreneur loan program under Minnesota Statutes, section
116M.18. Funds available under this
paragraph are for transfer into the emerging entrepreneur program special
revenue fund account created under Minnesota Statutes, chapter 116M, and are
available until expended. Of this
amount, up to four percent is for administration and monitoring of the program.
(r)
$163,000 each year is for the Minnesota Film and TV Board. The appropriation in each year is available
only upon receipt by the board of $1 in matching contributions of money or
in-kind contributions from nonstate sources for every $3 provided by this
appropriation, except that each year up to $50,000 is available on July 1 even
if the required matching contribution has not been received by that date.
(s) $12,000 each year is for a grant to the Upper Minnesota
Film Office.
(t) $500,000 each year is from the general fund for a grant
to the Minnesota Film and TV Board for the film production jobs program under
Minnesota Statutes, section 116U.26. This
appropriation is available until June 30, 2023.
(u) $4,195,000 each year is for the Minnesota job skills
partnership program under Minnesota Statutes, sections 116L.01 to 116L.17. If the appropriation for either year is
insufficient, the appropriation for the other year is available. This appropriation is available until
expended.
(v) $1,350,000 each year is from the workforce development
fund for jobs training grants under Minnesota Statutes, section 116L.42.
(w) $350,000 each year is from the workforce development
fund for metropolitan job training grants under Minnesota Statutes, section
116L.43.
Subd. 3. Workforce
Development |
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50,351,000 |
|
31,486,000 |
Appropriations
by Fund |
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General |
26,164,000 |
7,500,000 |
Workforce Development |
24,187,000 |
23,986,000 |
(a) $250,000 each year is for pilot programs in the
workforce service areas to combine career and higher education advising.
(b) $500,000 each year is for rural career counseling
coordinator positions in the workforce service areas and for the purposes
specified in Minnesota Statutes, section 116L.667.
(c) $750,000 each year is for the women and high-wage, high‑demand,
nontraditional jobs grant program under Minnesota Statutes, section 116L.99. Of this amount, up to five percent is for
administration and monitoring of the program.
(d) $700,000 the first year is for a grant to the Washburn
Center for Children to train and hire additional children's mental health
treatment staff. Of this amount,
$200,000 is for the pathways
program
to create fellowships for professionals of color in children's mental health
treatment. This appropriation is
available until June 30, 2023.
(e)(1) $300,000 the first year is for a
grant to the Regional Center for Entrepreneurial Facilitation hosted by a
county or higher education institution. Funds
available under this paragraph must be used to provide entrepreneur and small
business development direct professional business assistance services in the
following counties in Minnesota: Blue
Earth, Brown, Faribault, Le Sueur, Martin, Nicollet, Sibley, Watonwan, and
Waseca. For the purposes of this
paragraph, "direct professional business assistance services" must
include but is not limited to payment of overhead costs, pre-venture assistance
for individuals considering starting a business, and services for underserved
populations, agricultural businesses, and students. This appropriation is not available until the
commissioner determines that an equal amount is committed from nonstate sources. This appropriation is available until
June 30, 2021.
(2)
Grant recipients shall report to the commissioner by February 1, 2021,
and include information on the number of customers served in each county; the
number of businesses started, stabilized, or expanded; the number of jobs
created and retained; and business success rates in each county. By April 1, 2021, the commissioner shall
report the information submitted by grant recipients to the chairs and ranking
minority members of the standing committees of the house of representatives and
senate having jurisdiction over economic development issues.
(f) $20,000 in the first year is for
preparing the inventory of workforce development programs under Minnesota
Statutes, section 116L.35.
(g) $1,500,000 each year is for a grant to
Summit Academy OIC to expand its contextualized GED and employment placement
program and STEM program. This is a
onetime appropriation.
(h) $485,000 the first year is for a grant
to Lifetrack, a St. Paul nonprofit
organization, for building maintenance.
This appropriation is available until June 30, 2023.
(i) $1,000,000 each year is for a grant to
Youthprise to give grants through a competitive process to community
organizations to provide economic development services designed to enhance long‑term
economic self-sufficiency in communities with concentrated East African
populations. Such communities include
but are not limited to Faribault, Rochester, St. Cloud, Moorhead, and
Willmar. To the extent possible,
Youthprise must make at least 50 percent of these grants to organizations
serving
communities
located outside the seven-county metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2. This is a onetime appropriation and is
available until June 30, 2022.
(j) $500,000 each year is for a grant to
the YWCA of Minneapolis to provide economically challenged individuals the jobs
skills training, career counseling, and job placement assistance necessary to
secure a child development associate credential and to have a career path in
early childhood education. This is a
onetime appropriation.
(k) $250,000 each year is for a grant to
YWCA St. Paul to provide job training services and workforce development
programs and services, including job skills training and counseling. This is a onetime appropriation.
(l) $17,159,000 the first year is for:
(1) distribution to existing nonprofit and
state displaced homemaker programs under Minnesota Statutes, section 116L.96;
(2) the special education employment pilot
project;
(3) a grant to Fathers Rise Together to
study the creation of a Duluth-Iron Range African heritage hub;
(4) a grant to Hennepin County for the
Cedar Riverside Partnership;
(5) a grant to Goodwill-Easter Seals
Minnesota and its partners for the FATHER Project;
(6) competitive grants to eligible
nonprofit minority business development organizations for statewide business
development and assistance services to minority-owned businesses, including the
creation of revolving loan funds and operating support for the organizations
providing the services;
(7) a grant to Lifetrack for job training
and employment preparation for at-risk adults;
(8) the pathways to prosperity grant program under Minnesota Statutes, section 116L.25;
(9) a grant to Better Futures Minnesota to
provide job skills training to individuals who have been released from
incarceration for a felony-level offense and are no more than 12 months from
the date of release; and
(10)
a grant to the Women's Foundation of Minnesota to create and administer a
statewide internship program for young women ages 17 to 24 who are American
Indian, Asian, Black, or Hispanic, that connects participants with internships
and subsidizes intern wages.
The commissioner has discretion to allocate
this appropriation among the listed programs and grantees, including awarding
zero funds to a listed program or grantee.
The commissioner has discretion to stipulate reasonable terms for
individual programs and grants. Of these
amounts, up to four percent is for administration and monitoring of the funded
programs. This is a onetime
appropriation and funds are available until June 30, 2021.
(m) $100,000 the first year is from the
workforce development fund for a grant to the Cook County Higher Education
Board to provide educational programming and academic support services to
remote regions in northeastern Minnesota.
This appropriation is in addition to other funds previously appropriated
to the board.
(n) $500,000 each year is from the
workforce development fund for Propel Nonprofits, formerly known as the
Nonprofits Assistance Fund, to make grants for infrastructure support to small
nonprofit organizations that serve historically underserved cultural
communities.
(o) $1,000,000 each year is from the
workforce development fund for a grant to the American Indian Opportunities and
Industrialization Center, in collaboration with the Northwest Indian Community
Development Center, to reduce academic disparities for American Indian students
and adults. This is a onetime
appropriation. The grant funds may be
used to provide:
(1) student tutoring and testing support
services;
(2) training and employment placement in
information technology;
(3) training and employment placement
within trades;
(4) assistance in obtaining a GED;
(5) remedial training leading to enrollment
and to sustain enrollment in a postsecondary higher education institution;
(6) real-time work experience in
information technology fields and in the trades;
(7) contextualized adult basic education;
(8) career and educational counseling for
clients with significant and multiple barriers; and;
(9) reentry services and counseling for
adults and youth.
After
notification to the chairs and minority leads of the legislative committees
with jurisdiction over jobs and economic development, the commissioner may
transfer this appropriation to the commissioner of education.
(p) $350,000 each year is from the
workforce development fund for a grant to the International Institute of
Minnesota. Grant funds must be used for
workforce training for New Americans in industries in need of trained workforce. This is a onetime appropriation.
(q) $100,000 the first year is from the
workforce development fund for preparing a plan to address barriers to employment
for persons with mental illness.
(r) $1,000,000 each year is from the
workforce development fund for a grant to EMERGE Community Development, in
collaboration with community partners, for services targeting Minnesota
communities with the highest concentrations of African and African-American
joblessness, based on the most recent census tract data, to provide employment
readiness training, credentialed training placement, job placement and
retention services, supportive services for hard-to-employ individuals, and a
general education development fast track and adult diploma program. This is a onetime appropriation.
(s) $1,000,000 each year is from the
workforce development fund for a grant to the Minneapolis Foundation for a
strategic intervention program designed to target and connect program
participants to meaningful, sustainable living-wage employment. This is a onetime appropriation.
(t) $1,000,000 each year from the
workforce development fund is for a grant to the Construction Careers Foundation
for the construction career pathway initiative to provide year-round
educational and experiential learning opportunities for teens and young adults
under the age of 21 that lead to careers in the construction industry. This is a onetime appropriation. Grant funds must be used to:
(1) increase construction industry
exposure activities for middle school and high school youth, parents, and
counselors to reach a more diverse demographic and broader statewide audience. This requirement includes, but is not limited
to, an expansion of programs to provide experience in different crafts to youth
and young adults throughout the state;
(2) increase the number of high schools in
Minnesota offering construction classes during the academic year that utilize a
multicraft curriculum;
(3)
increase the number of summer internship opportunities;
(4) enhance activities to support
graduating seniors in their efforts to obtain employment in the construction
industry;
(5) increase the number of young adults
employed in the construction industry and ensure that they reflect Minnesota's
diverse workforce; and
(6) enhance an industrywide marketing
campaign targeted to youth and young adults about the depth and breadth of
careers within the construction industry.
Programs and services supported by grant
funds must give priority to individuals and groups that are economically
disadvantaged or historically underrepresented in the construction industry,
including but not limited to women, veterans, and members of minority and immigrant
groups.
(u) $1,000,000 each year is from the
workforce development fund for a grant to Latino Communities United in Service
(CLUES) to expand culturally tailored programs that address employment and
education skill gaps for working parents and underserved youth by providing new
job skills training to stimulate higher wages for low-income people, family
support systems designed to reduce intergenerational poverty, and youth
programming to promote educational advancement and career pathways. At least 50 percent of this amount must be
used for programming targeted at greater Minnesota. This is a onetime appropriation.
(v) $800,000 each year is from the
workforce development fund for performance grants under Minnesota Statutes,
section 116J.8747, to Twin Cities R!SE to provide training to hard-to-train
individuals. This is a onetime
appropriation and funds are available until June 30, 2022.
(w) $5,939,000 the first year and
$5,938,000 the second year are from the workforce development fund for:
(1) a grant to Minnesota Diversified
Industries, Inc., to provide progressive development and employment
opportunities for persons with disabilities;
(2) the getting to work grant program
under Minnesota Statutes, section 116J.545;
(3) a grant to the Minnesota High Tech
Association to support SciTechsperience;
(4) the Opportunities Industrialization
Center programs;
(5)
rural career counseling coordinator positions in the workforce service areas
and for the purposes specified in Minnesota Statutes, section 116L.667;
(6) the pathways to prosperity grant program under
Minnesota Statutes, section 116L.25;
(7) a grant to Bridges to Healthcare to provide career
education, wraparound support services, and job skills training in high‑demand
health care fields to low-income parents, nonnative speakers of English, and
other hard-to-train individuals;
(8) a grant to Avivo to provide low-income individuals with
career education and job skills training that are fully integrated with
chemical and mental health services; and
(9) a grant to Better Futures Minnesota to provide job
skills training to individuals who have been released from incarceration for a
felony-level offense and are no more than 12 months from the date of release.
The commissioner has discretion to allocate this
appropriation among the listed programs and grantees, including awarding zero
funds to a listed program or grantee. The
commissioner has discretion to stipulate reasonable terms for individual
programs and grants. Of these amounts,
up to four percent is for administration and monitoring of the funded programs. This is a onetime appropriation and funds are
available until June 30, 2022.
(x) $500,000 each year is from the workforce development
fund for competitive grants to organizations providing services to relieve
economic disparities in the Southeast Asian community through workforce
recruitment, development, job creation, assistance of smaller organizations to
increase capacity, and outreach. Of this
amount, up to five percent is for administration and monitoring of the program.
(y) $1,000,000 each year is from the workforce development
fund for a grant to the Hmong American Partnership, in collaboration with
community partners, for services targeting Minnesota communities with the highest
concentrations of Southeast Asian joblessness, based on the most recent census
tract data, to provide employment readiness training, credentialed training
placement, job placement and retention services, supportive services for hard‑to-employ
individuals, and a general education development fast track and adult diploma
program. This is a onetime
appropriation.
(z) $1,000,000 each year is for a competitive grant program
to provide grants to organizations that provide support services for
individuals, such as job training, employment preparation,
internships,
job assistance to parents, financial literacy, academic and behavioral
interventions for low-performing students, and youth intervention. Grants made under this section must focus on
low-income communities, young adults from families with a history of
intergenerational poverty, and communities of color. Of this amount, up to four percent is for
administration and monitoring of the program.
(aa) $1,000,000 each year is for a grant to Ujamaa Place
for job training, employment preparation, internships, education, training in
vocational trades, housing, and organizational capacity building. This is a onetime appropriation.
(bb) $750,000 each year is from the general fund and
$4,848,000 each year is from the workforce development fund for the
youth-at-work competitive grant program under Minnesota Statutes, section
116L.562. Of this amount, up to five
percent is for administration and monitoring of the youth workforce development
competitive grant program. All grant
awards shall be for two consecutive years.
Grants shall be awarded in the first year. This is a onetime appropriation.
(cc) $5,050,000 each year is from the workforce development
fund for:
(1) the youthbuild program under Minnesota Statutes,
sections 116L.361 to 116L.366;
(2) the Minnesota youth program under Minnesota Statutes,
sections 116L.56 and 116L.561;
(3) a grant to Big Brothers, Big Sisters of the Greater Twin Cities for workforce readiness, employment exploration, and skills development for youth ages 12 to 21;
(4) a grant to the Minnesota Alliance of Boys and Girls
Clubs to administer a statewide project of youth job skills and career
development;
(5) a grant to the Minneapolis Park and Recreation Board
for its youth workforce employment program Learn to Earn/Teen Teamworks; and
(6) a grant to Youthprise for Opportunity Reboot, a
statewide initiative to address the economic challenges of disconnected youth.
The commissioner has discretion to allocate these appropriations
among the listed programs and grantees, including awarding zero funds to a
listed program or grantee. The
commissioner has discretion to stipulate reasonable terms for individual
programs
and
grants. Of these amounts, up to four
percent is for administration and monitoring of the funded programs. This is a onetime appropriation and funds are
available until June 30, 2021.
Subd. 4. General
Support Services |
|
4,726,000
|
|
4,726,000
|
Appropriations
by Fund |
||
General Fund |
4,671,000
|
4,671,000
|
Workforce Development |
55,000
|
55,000
|
(a) $250,000 each year is for the
publication, dissemination, and use of labor market information under Minnesota
Statutes, section 116J.401.
(b) $1,269,000 each year is for transfer
to the Minnesota Housing Finance Agency for operating the Olmstead Compliance
Office.
(c) $500,000 each year is for the
capacity-building grant program to assist nonprofit organizations offering or
seeking to offer workforce development and economic development programming.
Subd. 5. Minnesota
Trade Office |
|
2,292,000
|
|
2,292,000
|
(a) $300,000 each year is for the STEP
grants in Minnesota Statutes, section 116J.979.
(b) $180,000 each year is for the Invest
Minnesota marketing initiative in Minnesota Statutes, section 116J.9781.
(c) $270,000 each year is for the
Minnesota Trade Offices under Minnesota Statutes, section 116J.978.
(d) $50,000 each year is for the Trade
Policy Advisory Council under Minnesota Statutes, section 116J.9661.
Subd. 6. Vocational
Rehabilitation |
|
37,941,000
|
|
37,941,000
|
Appropriations
by Fund |
||
General |
30,111,000
|
30,111,000
|
Workforce Development |
7,830,000
|
7,830,000
|
(a) $14,800,000 each year is for the
state's vocational rehabilitation program under Minnesota Statutes, chapter 268A.
(b) $8,995,000 each year from the general
fund and $6,830,000 each year from the workforce development fund is for
extended employment services for persons with severe disabilities under
Minnesota Statutes, section 268A.15. Of
the general fund amount
appropriated,
$2,000,000 each year is for rate increases to providers of extended employment
services for persons with severe disabilities under Minnesota Statutes, section
268A.15.
(c) $2,555,000 each year is for grants to
programs that provide employment support services to persons with mental
illness under Minnesota Statutes, sections 268A.13 and 268A.14.
(d) $3,761,000 each year is for grants to
centers for independent living under Minnesota Statutes, section 268A.11. Of these amounts, at least $100,000 each year
must be used for providing services to veterans.
(e) $1,000,000 each year is from the
workforce development fund for grants under Minnesota Statutes, section
268A.16, for employment services for persons, including transition-age youth,
who are deaf, deafblind, or hard-of-hearing.
If the amount in the first year is insufficient, the amount in the
second year is available in the first year.
Subd. 7. Services
for the Blind |
|
6,425,000
|
|
6,425,000
|
Of this amount, $500,000 each year is for
senior citizens who are becoming blind. At
least one-half of the funds for this purpose must be used to provide training
services for seniors who are becoming blind.
Training services must provide independent living skills to seniors who
are becoming blind to allow them to continue to live independently in their
homes.
Subd. 8. Paid
Family and Medical Leave |
|
10,549,000
|
|
21,975,000
|
(a) $10,549,000 the first year and
$21,442,000 the second year are for the purposes of Minnesota Statutes, chapter
268B. Unexpended funds appropriated in
the first year are available in the second year. In fiscal year 2022, the base amount is
$14,596,000; in fiscal year 2023, the base amount is $13,681,000; in fiscal
year 2024, the base amount is $11,520,000; and in fiscal year 2025 and beyond,
the base amount is $0.
(b) $533,000 the second year is for the
purpose of outreach, education, and technical assistance for employees and
employers regarding Minnesota Statutes, chapter 268B. Of the amount appropriated, at least one-half
must be used for grants to community-based groups providing outreach,
education, and technical assistance for employees, employers, and self-employed
individuals regarding Minnesota Statutes, chapter 268B. This outreach must include efforts to notify
self-employed individuals of their ability to elect coverage under Minnesota
Statutes, section 268B.11, and provide them with technical assistance in doing
so. This is a onetime appropriation.
Subd. 9. Dairy Assistance, Investment, Relief Initiative (DAIRI) |
10,000,000
|
|
-0-
|
$10,000,000 the first year is for transfer
to the commissioner of agriculture to award need based grants to Minnesota
dairy producers who milk herds of no more than 750 cows for buy-in to the
federal Dairy Margin Coverage Program. The
commissioner of agriculture must develop eligibility criteria in consultation
with the chairs and ranking minority members of the legislative committees with
jurisdiction over agriculture finance.
Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY |
|
|
|
Subdivision
1. Total Appropriation |
|
$36,680,000 |
|
$35,067,000 |
Appropriations
by Fund |
||
|
2020
|
2021
|
General |
9,056,000
|
10,445,000
|
Workers' Compensation |
25,088,000
|
22,088,000
|
Workforce Development |
2,534,000
|
2,534,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
Subd. 2. General
Support |
|
8,039,000
|
|
8,339,000
|
Appropriations
by Fund |
||
General |
1,250,000
|
1,550,000
|
Workers' Compensation |
6,039,000
|
6,039,000
|
Workforce Development Fund |
750,000
|
750,000
|
(a) Except as provided in paragraphs (b)
and (c), this appropriation is from the workers' compensation fund.
(b) $1,250,000 the first year and
$1,550,000 the second year are from the general fund for system upgrades. This is a onetime appropriation and funds are
available until June 30, 2023. This
appropriation includes funds for information technology project services and
support subject to Minnesota Statutes, section 16E.0466. Any ongoing information technology costs must
be incorporated into the service level agreement and must be paid to the Office
of MN.IT Services by the commissioner of labor and industry under the rates and
mechanism specified in that agreement.
(c)
$750,000 each year is from the workforce development fund to administer the
youth skills training program and make grant awards under Minnesota Statutes,
section 175.46.
Subd. 3. Labor
Standards and Apprenticeship |
|
9,590,000 |
|
11,429,000 |
Appropriations
by Fund |
||
General |
7,806,000 |
8,895,000 |
Workforce Development |
1,784,000 |
1,784,000 |
(a) $2,046,000 each year is for wage theft prevention.
(b) $3,866,000 the first year and $4,072,000 the second
year are for enforcement and other duties regarding earned sick and safe time
under Minnesota Statutes, section 181.9445 and chapter 177. In fiscal year 2022, the base amount is
$2,874,000 and in fiscal year 2023 and beyond, the base amount is $2,873,000.
(c) $214,000 the first year and $377,000 the second year
are for the purpose of outreach, education, and technical assistance for
employees, employers, and self-employed individuals regarding Minnesota
Statutes, chapter 268B. This outreach
must include efforts to notify self-employed individuals of their ability to
elect coverage under Minnesota Statutes, section 268B.11, and provide them with
technical assistance in doing so. Unexpended
amounts appropriated the first year are available in the second year. This is a onetime appropriation.
(d) $382,000 the first year and $1,101,000 the second year
are for enforcement duties and related administration under Minnesota Statutes,
chapter 268B. This is a onetime
appropriation.
(e) $151,000 each year is from the workforce development
fund for prevailing wage enforcement.
(f) $1,133,000 each year is from the workforce development
fund for the apprenticeship program under
Minnesota Statutes, chapter 178.
(g) $100,000 each year is from the workforce development
fund for labor education and advancement program grants under Minnesota
Statutes, section 178.11, to expand and promote registered apprenticeship
training for minorities and women.
(h) $400,000 each year is from the workforce development
fund for grants to the Construction Careers Foundation for the Helmets to
Hardhats Minnesota initiative. Grant
funds must be used to recruit, retain, assist, and support National Guard,
reserve, and active duty military members' and veterans' participation into
apprenticeship programs registered with the Department of Labor and Industry and
connect them with career training and
employment
in the building and construction industry.
The recruitment, selection, employment, and training must be without
discrimination due to race, color, creed, religion, national origin, sex,
sexual orientation, marital status, physical or mental disability, receipt of
public assistance, or age.
(i) In fiscal years 2020 and 2021 the
commissioner of labor and industry shall utilize funds in the contractor
recovery fund for a statewide consumer awareness campaign highlighting the
importance of hiring licensed contractors as well as the consequences of hiring
unlicensed contractors.
Subd. 4. Workers'
Compensation |
|
14,882,000
|
|
11,882,000
|
$3,000,000 the first year is from the
workers' compensation fund for workers' compensation system upgrades. This amount is available until June 30, 2023. This is a onetime appropriation.
This appropriation includes funds for
information technology project services and support subject to the provisions
of Minnesota Statutes, section 16E.0466.
Any ongoing information technology costs must be incorporated into the
service level agreement and must be paid to the Office of MN.IT Services by the
commissioner of labor and industry under the rates and mechanism specified in
that agreement.
Subd. 5. Workplace
Safety |
|
4,167,000
|
|
4,167,000
|
This appropriation is from the workers'
compensation fund.
Sec. 4. WORKERS'
COMPENSATION COURT OF APPEALS |
$2,222,000 |
|
$2,283,000 |
This appropriation is from the workers'
compensation fund.
Sec. 5. BUREAU
OF MEDIATION SERVICES |
|
$3,076,000 |
|
$3,076,000 |
(a) $560,000 each year is for purposes of
the Public Employment Relations Board under Minnesota Statutes, section
179A.041.
(b) $68,000 each year is from the general
fund for grants to area labor management committees. Grants may be awarded for a 12‑month
period beginning July 1 each year. Any
unencumbered balance remaining at the end of the first year does not cancel but
is available for the second year.
(c) $394,000 each year is for the Office
of Collaboration and Dispute Resolution under Minnesota Statutes, section
179.90. Of this amount, $160,000 each
year is for grants under Minnesota Statutes, section 179.91.
Sec. 6. DEPARTMENT
OF COMMERCE |
|
|
|
|
Subdivision
1. Total Appropriation |
|
$25,873,000 |
|
$25,345,000 |
Appropriations
by Fund |
||
General |
23,055,000 |
22,526,000 |
Special Revenue |
2,060,000
|
2,060,000
|
Workers' Compensation |
758,000
|
759,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
Subd. 2. Financial
Institutions |
|
1,131,000
|
|
1,136,000
|
(a) $400,000 each year is for a grant to
Prepare and Prosper to develop, market, evaluate, and distribute a financial
services inclusion program that (1) assists low-income and financially
underserved populations to build savings and strengthen credit, and (2)
provides services to assist low-income and financially underserved populations
to become more financially stable and secure.
Money remaining after the first year is available for the second year.
(b) $100,000 each year is for a grant to
Exodus Lending to assist individuals in reaching financial stability and
resolving payday loans. This is a
onetime appropriation and funds are available until June 30, 2022.
(c) $200,000 each year is to administer
the requirements of Minnesota Statutes, chapter 58B. This is a onetime appropriation.
Subd. 3. Administrative
Services |
|
9,645,000
|
|
8,955,000
|
(a) $384,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts for these services.
(b) $100,000 each year is for the support
of broadband development.
(c) $33,000 each year is for rulemaking
and administration under Minnesota Statutes, section 80A.461.
(d) $960,000 the first year is to pay the
award in the SafeLite Group, Inc., litigation.
Subd. 4. Telecommunications
|
|
3,097,000
|
|
3,107,000
|
Appropriations
by Fund |
||
General |
1,037,000
|
1,047,000
|
Special Revenue |
2,060,000
|
2,060,000
|
$2,060,000 each year is from the
telecommunication access Minnesota fund account in the special revenue fund for
the following transfers. This appropriation
is added to the department's base:
(1) $1,620,000 each year is to the
commissioner of human services to supplement the ongoing operational expenses
of the Commission of the Deaf, DeafBlind and Hard of Hearing;
(2) $290,000 each year is to the chief
information officer for the purpose of coordinating technology accessibility
and usability;
(3) $100,000 each year is to the
Legislative Coordinating Commission for captioning of legislative coverage. This transfer is subject to Minnesota Statutes,
section 16A.281; and
(4) $50,000 each year is to the Office of MN.IT
Services for a consolidated access fund to provide grants or services to other
state agencies related to accessibility of their web-based services.
Subd. 5. Enforcement
|
|
6,417,000
|
|
6,507,000
|
Appropriations
by Fund |
||
General |
6,217,000
|
6,307,000
|
Workers' Compensation |
200,000
|
200,000
|
(a) $279,000 each year is for health care
enforcement.
(b) $250,000 each year is for a statewide
education and outreach campaign to protect seniors, meaning those 60 years of
age or older, vulnerable adults, as defined in Minnesota Statutes, section
626.5572, subdivision 21, and their caregivers from financial fraud and
exploitation. The education and outreach
campaign must include but is not limited to the dissemination of information
through television, print, or other media, training and outreach to senior
living facilities, and the creation of a senior fraud toolkit. This is a onetime appropriation.
Subd. 6. Insurance
|
|
5,583,000
|
|
5,640,000
|
Appropriations
by Fund |
||
General |
5,025,000
|
5,081,000
|
Workers' Compensation |
558,000 |
559,000 |
(a)
$642,000 each year is for health insurance rate review staffing.
(b) $412,000 each year is for actuarial
work to prepare for implementation of principle-based reserves.
Sec. 7.
MINNESOTA MANAGEMENT AND
BUDGET |
$51,000 |
|
$106,000 |
(a) $29,000 the first year and $13,000 the
second year are for implementation and costs associated with paid family and
medical leave under Minnesota Statutes, chapter 268B.
(b) $22,000 the first year and $93,000 the
second year are for costs associated with earned sick and safe time under
Minnesota Statutes, section 181.9445.
Sec. 8. REVENUE
DEPARTMENT |
|
$-0- |
|
$91,000 |
$91,000 the second year is for
implementation and costs associated with paid family and medical leave under
Minnesota Statutes, chapter 268B. In
fiscal year 2022, the base amount is $149,000 and in fiscal year 2023 and
beyond, the base amount is $117,000.
Sec. 9. SUPREME
COURT |
|
$-0- |
|
$15,000 |
$15,000 the second year is for responsibilities related to Minnesota Statutes, chapter 268B. This is a onetime appropriation.
Sec. 10. ATTORNEY
GENERAL |
|
$654,000 |
|
$654,000 |
$654,000 each year is for wage theft
prevention.
ARTICLE 2
FAMILY AND MEDICAL BENEFITS
Section 1. Minnesota Statutes 2018, section 13.719, is amended by adding a subdivision to read:
Subd. 7. Family
and medical insurance data. (a)
For the purposes of this subdivision, the terms used have the meanings given
them in section 268B.01.
(b) Data on applicants, family members,
or employers under chapter 268B are private or nonpublic data, provided that
the department may share data collected from applicants with employers or
health care providers to the extent necessary to meet the requirements of
chapter 268B or other applicable law.
(c) The department and the Department of
Labor and Industry may share data classified under paragraph (b) to the extent
necessary to meet the requirements of chapter 268B or the Department of Labor
and Industry's enforcement authority over chapter 268B, as provided in section
177.27.
Sec. 2. Minnesota Statutes 2018, section 177.27, subdivision 4, is amended to read:
Subd. 4. Compliance
orders. The commissioner may issue an
order requiring an employer to comply with sections 177.21 to 177.435, 181.02,
181.03, 181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15,
181.172, paragraph (a) or (d), 181.275, subdivision 2a, 181.722, 181.79, and
181.939 to 181.943, 268B.09,
subdivisions 1 to 6, and 268B.12, subdivision 2, or with any rule promulgated under section 177.28. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner.
Sec. 3. Minnesota Statutes 2018, section 181.032, is amended to read:
181.032
REQUIRED STATEMENT OF EARNINGS BY EMPLOYER.
(a) At the end of each pay period, the employer shall provide each employee an earnings statement, either in writing or by electronic means, covering that pay period. An employer who chooses to provide an earnings statement by electronic means must provide employee access to an employer-owned computer during an employee's regular working hours to review and print earnings statements, and must make statements available for review or printing for a period of at least 12 months.
(b) The earnings statement may be in any form determined by the employer but must include:
(1) the name of the employee;
(2) the hourly rate of pay (if applicable);
(3) the total number of hours worked by the employee unless exempt from chapter 177;
(4) the total amount of gross pay earned by the employee during that period;
(5) a list of deductions made from the employee's pay;
(6) any amount deducted by the employer
under section 268B.12, subdivision 2, and the amount paid by the employer based
on the employee's wages under section 268B.12, subdivision 1;
(6) (7) the net amount of
pay after all deductions are made;
(7) (8) the date on which
the pay period ends; and
(8) (9) the legal name of
the employer and the operating name of the employer if different from the legal
name.
(c) An employer must provide earnings statements to an employee in writing, rather than by electronic means, if the employer has received at least 24 hours notice from an employee that the employee would like to receive earnings statements in written form. Once an employer has received notice from an employee that the employee would like to receive earnings statements in written form, the employer must comply with that request on an ongoing basis.
Sec. 4. Minnesota Statutes 2018, section 268.19, subdivision 1, is amended to read:
Subdivision 1. Use of data. (a) Except as provided by this section, data gathered from any person under the administration of the Minnesota Unemployment Insurance Law are private data on individuals or nonpublic data not on individuals as defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except according to a district court order or section 13.05. A subpoena is not considered a district court order. These data may be disseminated to and used by the following agencies without the consent of the subject of the data:
(1) state and federal agencies specifically authorized access to the data by state or federal law;
(2) any agency of any other state or any federal agency charged with the administration of an unemployment insurance program;
(3) any agency responsible for the maintenance of a system of public employment offices for the purpose of assisting individuals in obtaining employment;
(4) the public authority responsible for child support in Minnesota or any other state in accordance with section 256.978;
(5) human rights agencies within Minnesota that have enforcement powers;
(6) the Department of Revenue to the extent necessary for its duties under Minnesota laws;
(7) public and private agencies responsible for administering publicly financed assistance programs for the purpose of monitoring the eligibility of the program's recipients;
(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the Department of Commerce for uses consistent with the administration of their duties under Minnesota law;
(9) the Department of Human Services and the Office of Inspector General and its agents within the Department of Human Services, including county fraud investigators, for investigations related to recipient or provider fraud and employees of providers when the provider is suspected of committing public assistance fraud;
(10) local and state welfare agencies for monitoring the eligibility of the data subject for assistance programs, or for any employment or training program administered by those agencies, whether alone, in combination with another welfare agency, or in conjunction with the department or to monitor and evaluate the statewide Minnesota family investment program by providing data on recipients and former recipients of food stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, or medical programs under chapter 256B or 256L or formerly codified under chapter 256D;
(11) local and state welfare agencies for the purpose of identifying employment, wages, and other information to assist in the collection of an overpayment debt in an assistance program;
(12) local, state, and federal law enforcement agencies for the purpose of ascertaining the last known address and employment location of an individual who is the subject of a criminal investigation;
(13) the United States Immigration and Customs Enforcement has access to data on specific individuals and specific employers provided the specific individual or specific employer is the subject of an investigation by that agency;
(14) the Department of Health for the purposes of epidemiologic investigations;
(15) the Department of Corrections for the purposes of case planning and internal research for preprobation, probation, and postprobation employment tracking of offenders sentenced to probation and preconfinement and postconfinement employment tracking of committed offenders;
(16) the state auditor to the extent
necessary to conduct audits of job opportunity building zones as required under
section 469.3201; and
(17) the Office of Higher Education for
purposes of supporting program improvement, system evaluation, and research
initiatives including the Statewide Longitudinal Education Data System.;
and
(18) the Family and Medical Benefits
Division of the Department of Employment and Economic Development to be used as
necessary to administer chapter 268B.
(b) Data on individuals and employers that are collected, maintained, or used by the department in an investigation under section 268.182 are confidential as to data on individuals and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 and 13, and must not be disclosed except under statute or district court order or to a party named in a criminal proceeding, administrative or judicial, for preparation of a defense.
(c) Data gathered by the department in the administration of the Minnesota unemployment insurance program must not be made the subject or the basis for any suit in any civil proceedings, administrative or judicial, unless the action is initiated by the department.
Sec. 5. [268B.01]
DEFINITIONS.
Subdivision 1. Scope. For the purposes of this chapter, the
terms defined in this section have the meanings given them.
Subd. 2. Account. "Account" means the family
and medical benefit insurance account in the special revenue fund in the state
treasury under section 268B.02.
Subd. 3. Applicant. "Applicant" means an
individual applying for leave with benefits under this chapter.
Subd. 4. Applicant's
average weekly wage. "Applicant's
average weekly wage" means an amount equal to the applicant's high quarter
wage credits divided by 13.
Subd. 5. Benefit. "Benefit" or
"benefits" mean monetary payments under this chapter associated with
qualifying bonding, family care, pregnancy, serious health condition,
qualifying exigency, or safety leave events, unless otherwise indicated by
context.
Subd. 6. Benefit
year. "Benefit
year" means a period of 52 consecutive calendar weeks beginning on the
first day of a leave approved for benefits under this chapter.
Subd. 7. Bonding. "Bonding" means time spent
by an applicant who is a biological, adoptive, or foster parent with a
biological, adopted, or foster child in conjunction with the child's birth,
adoption, or placement.
Subd. 8. Calendar
day. "Calendar day"
or "day" means a fixed 24-hour period corresponding to a single
calendar date.
Subd. 9. Calendar
week. "Calendar
week" means a period of seven consecutive calendar days.
Subd. 10. Commissioner. "Commissioner" means the
commissioner of employment and economic development, unless otherwise indicated
by context.
Subd. 11. Continuing
treatment. A serious health
condition involving continuing treatment by a health care provider includes any
one or more of the following:
(1) a period of incapacity of more than
three consecutive, full calendar days, and any subsequent treatment or period
of incapacity relating to the same condition, that also involves:
(i) treatment two or more times within
30 calendar days of the first day of incapacity, unless extenuating
circumstances exist, by a health care provider; or
(ii) treatment by a health care
provider on at least one occasion that results in a regimen of continuing
treatment under the supervision of the health care provider;
(2) any period of incapacity or
treatment for such incapacity due to a chronic serious health condition. A chronic serious health condition is one
that:
(i) requires periodic visits, defined
as at least twice per year, for treatment for the incapacity by a health care
provider;
(ii) continues over an extended period
of time, including recurring episodes of a single underlying condition; and
(iii) may cause episodic rather than a
continuing period of incapacity;
(3) a period of incapacity that is
long-term due to a condition for which treatment may not be effective, with the
employee or family member under the supervision of, but not necessarily
receiving active treatment by a health care provider; and
(4) any period of absence to receive
multiple treatments by a health care provider, including any period of recovery
therefrom, for:
(i) restorative surgery after an
accident or other injury; or
(ii) a condition that would likely
result in a period of incapacity of more than seven consecutive, calendar days
in the absence of medical intervention or treatment, such as cancer, severe
arthritis, or kidney disease.
Subd. 12. Covered
employment. "Covered
employment" has the meaning given in section 268.035, subdivision 12.
Subd. 13. Day. "Day" means an eight-hour
period.
Subd. 14. Department. "Department" means the
Department of Employment and Economic Development, unless otherwise indicated
by context.
Subd. 15. Employee. "Employee" means an
individual for whom premiums are paid on wages under this chapter.
Subd. 16. Employer. "Employer" means a person or
entity, other than an employee, required to pay premiums under this chapter,
except that a self-employed individual who has elected and been approved for
coverage under section 268B.11 is not considered an employer with regard to the
self-employed individual's own coverage and benefits.
Subd. 17. Estimated
self-employment income. "Estimated
self-employment income" means a self-employed individual's average net
earnings from self-employment in the two most recent taxable years. For a self-employed individual who had net
earnings from self-employment in only one of the years, the individual's
estimated self‑employment income equals the individual's net earnings
from self-employment in the year in which the individual had net earnings from
self-employment.
Subd. 18. Family
benefit program. "Family
benefit program" means the program administered under this chapter for the
collection of premiums and payment of benefits related to family care, bonding,
safety leave, and leave related to a qualifying exigency.
Subd. 19. Family
care. "Family care"
means an applicant caring for a family member with a serious health condition
or caring for a family member who is a covered service member.
Subd. 20. Family
member. (a) "Family
member" means an employee's child, adult child, spouse, sibling, parent,
parent-in-law, grandchild, grandparent, stepparent, member of the employee's
household, or an individual described in paragraph (e).
(b) For the purposes of this chapter, a
child includes a stepchild, biological, adopted, or foster child of the
employee.
(c) For the purposes of this chapter, a
grandchild includes a step-grandchild, biological, adopted, or foster
grandchild of the employee.
(d) For the purposes of this chapter,
an individual is a member of the employee's household if the individual has
resided at the same address as the employee for at least one year as of the
first day of a leave under this chapter.
(e) For the purposes of this chapter,
an individual with a serious health condition is deemed a family member of the
employee if (1) a health care provider certifies in writing that the individual
requires care relating to the serious health condition, and (2) the employee
and the care recipient certify in writing that the employee will be providing
the required care.
Subd. 21. Health
care provider. "Health
care provider" means an individual who is licensed, certified, or
otherwise authorized under law to practice in the individual's scope of
practice as a physician, osteopath, physician assistant, chiropractor, advanced
practice registered nurse, licensed psychologist, licensed independent clinical
social worker, or dentist. "Chiropractor"
means only a chiropractor who provides manual manipulation of the spine to
correct a subluxation demonstrated to exist by an x-ray.
Subd. 22. High
quarter. "High
quarter" has the meaning given in section 268.035, subdivision 19.
Subd. 23. Independent
contractor. (a) If there is
an existing specific test or definition for independent contractor in Minnesota
statute or rule applicable to an occupation or sector as of the date of
enactment of this chapter, that test or definition will apply to that
occupation or sector for purposes of this chapter. If there is not an existing test or
definition as described, the definition for independent contractor shall be as
provided in this subdivision.
(b)
An individual is an independent contractor and not an employee of the person
for whom the individual is performing services in the course of the person's
trade, business, profession, or occupation only if:
(1) the individual maintains a separate
business with the individual's own office, equipment, materials, and other
facilities;
(2) the individual:
(i) holds or has applied for a federal
employer identification number; or
(ii) has filed business or
self-employment income tax returns with the federal Internal Revenue Service if
the individual has performed services in the previous year;
(3) the individual is operating under
contract to perform the specific services for the person for specific amounts
of money and under which the individual controls the means of performing the
services;
(4) the individual is incurring the
main expenses related to the services that the individual is performing for the
person under the contract;
(5) the individual is responsible for
the satisfactory completion of the services that the individual has contracted
to perform for the person and is liable for a failure to complete the services;
(6) the individual receives
compensation from the person for the services performed under the contract on a
commission or per-job or competitive bid basis and not on any other basis;
(7) the individual may realize a profit
or suffer a loss under the contract to perform services for the person;
(8) the individual has continuing or
recurring business liabilities or obligations; and
(9) the success or failure of the
individual's business depends on the relationship of business receipts to
expenditures.
(c) For the purposes of this chapter,
an insurance producer, as defined in section 60K.31, subdivision 6, is an
independent contractor of an insurance company, as defined in section 60A.02,
subdivision 4, unless the insurance producer and insurance company agree
otherwise.
Subd. 24. Inpatient
care. "Inpatient
care" means an overnight stay in a hospital, hospice, or residential
medical care facility, including any period of incapacity defined under
subdivision 33, paragraph (b), or any subsequent treatment in connection with
such inpatient care.
Subd. 25. Maximum
weekly benefit amount. "Maximum
weekly benefit amount" means the state's average weekly wage as calculated
under section 268.035, subdivision 23.
Subd. 26. Medical
benefit program. "Medical
benefit program" means the program administered under this chapter for the
collection of premiums and payment of benefits related to an applicant's
serious health condition or pregnancy.
Subd. 27. Net
earnings from self-employment. "Net
earnings from self-employment" has the meaning given in section 1402 of
the Internal Revenue Code, as defined in section 290.01, subdivision 31.
Subd. 28. Noncovered
employment. "Noncovered
employment" has the meaning given in section 268.035, subdivision 20.
Subd. 29. Pregnancy. "Pregnancy" means prenatal
care or incapacity due to pregnancy, or recovery from childbirth, still birth,
miscarriage, or related health conditions.
Subd. 30. Qualifying
exigency. (a)
"Qualifying exigency" means a need arising out of a military member's
active duty service or notice of an impending call or order to active duty in
the United States armed forces, including providing for the care or other needs
of the family member's child or other dependent, making financial or legal
arrangements for the family member, attending counseling, attending military
events or ceremonies, spending time with the family member during a rest and
recuperation leave or following return from deployment, or making arrangements
following the death of the military member.
(b) For the purposes of this chapter, a
"military member" means a current or former member of the United
States armed forces, including a member of the National Guard or reserves, who,
except for a deceased military member, is a resident of the state and is a
family member of the employee taking leave related to the qualifying exigency.
Subd. 31. Safety
leave. "Safety
leave" means leave from work because of domestic abuse, sexual assault, or
stalking of the employee or employee's family member, provided the leave is to:
(1) seek medical attention related to
the physical or psychological injury or disability caused by domestic abuse,
sexual assault, or stalking;
(2) obtain services from a victim
services organization;
(3) obtain psychological or other
counseling;
(4) seek relocation due to the domestic
abuse, sexual assault, or stalking; or
(5) seek legal advice or take legal
action, including preparing for or participating in any civil or criminal legal
proceeding related to, or resulting from, the domestic abuse, sexual assault,
or stalking.
Subd. 32. Self-employed
individual. "Self-employed
individual" means a resident of the state who, in one of the two taxable
years preceding the current calendar year, derived at least $10,000 in net
earnings from self‑employment from an entity other than an S corporation
for the performance of services in this state.
Subd. 33. Self-employment
premium base. "Self-employment
premium base" means the lesser of:
(1) a self-employed individual's
estimated self-employment income for the calendar year plus the individual's
self-employment wages in the calendar year; or
(2)
the maximum earnings subject to the FICA Old-Age, Survivors, and Disability
Insurance tax in the taxable year.
Subd. 34. Self-employment
wages. "Self-employment
wages" means the amount of wages that a self‑employed individual
earned in the calendar year from an entity from which the individual also
received net earnings from self-employment.
Subd. 35. Serious
health condition. (a)
"Serious health condition" means an illness, injury, impairment, or
physical or mental condition that involves inpatient care as defined in
subdivision 24 or continuing treatment by a health care provider as defined in
subdivision 11.
(b)
"Incapacity" means inability to work, attend school, or perform other
regular daily activities due to the serious health condition, treatment
therefore, or recovery therefrom.
(c) Treatment includes but is not
limited to examinations to determine if a serious health condition exists and
evaluations of the condition. Treatment
does not include routine physical examinations, eye examinations, or dental
examinations. A regimen of continuing
treatment includes, for example, a course of prescription medication or therapy
requiring special equipment to resolve or alleviate the health condition.
Subd. 36. State's
average weekly wage. "State's
average weekly wage" means the weekly wage calculated under section
268.035, subdivision 23.
Subd. 37. Taxable
year. "Taxable
year" has the meaning given in section 290.01, subdivision 9.
Subd. 38. Wage
credits. "Wage
credits" has the meaning given in section 268.035, subdivision 27.
Sec. 6. [268B.02]
FAMILY AND MEDICAL BENEFIT INSURANCE PROGRAM CREATION.
Subdivision 1. Creation. A family and medical benefit insurance
program is created to be administered by the commissioner according to the
terms of this chapter.
Subd. 2. Creation
of division. A Family and
Medical Benefit Insurance Division is created within the department under the
authority of the commissioner. The
commissioner shall appoint a director of the division. The division shall administer and operate the
benefit program under this chapter.
Subd. 3. Rulemaking. The commissioner may adopt rules to
implement the provisions of this chapter.
Subd. 4. Account
creation; appropriation. The
family and medical benefit insurance account is created in the special revenue
fund in the state treasury. Money in
this account is appropriated to the commissioner to pay benefits under and to
administer this chapter, including outreach required under section 268B.15.
Subd. 5. Information
technology services and equipment. The
department is exempt from the provisions of section 16E.016 for the purposes of
this chapter.
Sec. 7. [268B.03]
ELIGIBILITY.
Subdivision 1. Applicant. An applicant who has a serious health
condition, has a qualifying exigency, is taking safety leave, is providing
family care, is bonding, or is pregnant or recovering from pregnancy, and who
satisfies the conditions of this section is eligible to receive benefits
subject to the provisions of this chapter.
Subd. 2. Wage
credits. An applicant must
have sufficient wage credits from an employer or employers as defined in
section 268B.01, subdivision 16, to establish a benefit account under section
268.07, subdivision 2.
Subd. 3. Seven-day
qualifying event. (a) The
period for which an applicant is seeking benefits must be or have been based on
a single event of at least seven calendar days' duration related to pregnancy,
recovery from pregnancy, family care, a qualifying exigency, safety leave, or
the applicant's serious health condition.
The days need not be consecutive.
(b) Benefits related to bonding need
not meet the seven-day qualifying event requirement.
(c)
The commissioner must use the rulemaking authority under section 268B.02,
subdivision 3, to adopt rules regarding what serious health conditions and
other events are prospectively presumed to constitute seven-day qualifying
events under this chapter.
Subd. 4. Ineligible. (a) An applicant is not eligible for
benefits for any portion of a day for which the applicant worked for pay.
(b) An applicant is not eligible for
benefits for any day for which the applicant received benefits under chapter
176 or 268.
Subd. 5. Certification. An applicant for benefits under this
chapter must fulfill the certification requirements under section 268B.04,
subdivision 2.
Subd. 6. Records
release. An individual whose
medical records are necessary to determine eligibility for benefits under this
chapter must sign and date a legally effective waiver authorizing release of
medical or other records, to the limited extent necessary to administer or
enforce this chapter, to the department and the Department of Labor and
Industry.
Subd. 7. Self-employed
individual applicant. To
fulfill the requirements of this section, a self-employed individual or
independent contractor who has elected and been approved for coverage under
section 268B.011 must fulfill only the requirements of subdivisions 3, 4, 5,
and 6.
Sec. 8. [268B.04]
APPLICATIONS.
Subdivision 1. Process;
deadline. Applicants must
file a benefit claim pursuant to rules promulgated by the commissioner within
90 calendar days of the related qualifying event. If a claim is filed more than 90 calendar
days after the start of leave, the covered individual may receive reduced
benefits. All claims shall include a
certification supporting a request for leave under this chapter. The commissioner must establish good cause
exemptions from the certification requirement deadline in the event that a
serious health condition of the applicant prevents the applicant from providing
the required certification within the 90 calendar days.
Subd. 2. Certification. (a) Certification for an applicant
taking leave related to the applicant's serious health condition shall be
sufficient if the certification states the date on which the serious health
condition began, the probable duration of the condition, and the appropriate
medical facts within the knowledge of the health care provider as required by
the commissioner.
(b) Certification for an applicant
taking leave to care for a family member with a serious health condition shall
be sufficient if the certification states the date on which the serious health
condition commenced, the probable duration of the condition, the appropriate
medical facts within the knowledge of the health care provider as required by
the commissioner, a statement that the family member requires care, and an
estimate of the amount of time that the family member will require care.
(c) Certification for an applicant
taking leave related to pregnancy shall be sufficient if the certification
states the expected due date and recovery period based on appropriate medical
facts within the knowledge of the health care provider.
(d) Certification for an applicant
taking bonding leave because of the birth of the applicant's child shall be
sufficient if the certification includes either the child's birth certificate
or a document issued by the health care provider of the child or the health
care provider of the person who gave birth, stating the child's birth date.
(e)
Certification for an applicant taking bonding leave because of the placement of
a child with the applicant for adoption or foster care shall be sufficient if
the applicant provides a document issued by the health care provider of the
child, an adoption or foster care agency involved in the placement, or by other
individuals as determined by the commissioner that confirms the placement and
the date of placement. To the extent
that the status of an applicant as an adoptive or foster parent changes while
an application for benefits is pending, or while the covered individual is
receiving benefits, the applicant must notify the department of such change in
status in writing.
(f) Certification for an applicant
taking leave because of a qualifying exigency shall be sufficient if the
certification includes:
(1) a copy of the family member's
active-duty orders;
(2) other documentation issued by the
United States armed forces; or
(3) other documentation permitted by
the commissioner.
(g) Certification for an applicant
taking safety leave is sufficient if the certification includes a court record
or documentation signed by a volunteer or employee of a victim's services
organization, an attorney, a police officer, or an antiviolence counselor. The commissioner must not require disclosure
of details relating to an applicant's or applicant's family member's domestic
abuse, sexual assault, or stalking.
(h) Certifications under paragraphs (a)
to (e) must be reviewed and signed by a health care provider with knowledge of
the qualifying event associated with the leave.
(i) For a leave taken on an
intermittent or reduced-schedule basis, based on a serious health condition of
an applicant or applicant's family member, the certification under this
subdivision must include an explanation of how such leave would be medically
beneficial to the individual with the serious health condition.
Sec. 9. [268B.05]
DETERMINATION OF APPLICATION.
Upon the filing of a complete
application for benefits, the commissioner shall examine the application and on
the basis of facts found by the commissioner and records maintained by the
department, the applicant shall be determined to be eligible or ineligible
within two weeks. If the application is
determined to be valid, the commissioner shall promptly notify the applicant
and any other interested party as to the week when benefits commence, the
weekly benefit amount payable, and the maximum duration of those benefits. If the application is determined to be
invalid, the commissioner shall notify the applicant and any other interested
party of that determination and the reasons for it. If the processing of the application is
delayed for any reason, the commissioner shall notify the applicant, in
writing, within two weeks of the date the application for benefits is filed of
the reason for the delay. Unless the
applicant or any other interested party, within 30 calendar days, requests a
hearing before a benefit judge, the determination is final. For good cause shown, the 30-day period may
be extended. At any time within one year
from the date of a monetary determination, the commissioner, upon request of
the applicant or on the commissioner's own initiative, may reconsider the
determination if it is found that an error in computation or identity has
occurred in connection with the determination or that additional wages
pertinent to the applicant's status have become available, or if that
determination has been made as a result of a nondisclosure or misrepresentation
of a material fact.
Sec. 10. [268B.06]
EMPLOYER NOTIFICATION.
(a) Upon a determination under section
268B.05 that an applicant is entitled to benefits, the commissioner must
promptly send a notification to each current employer of the applicant, if any,
in accordance with paragraph (b).
(b)
The notification under paragraph (a) must include, at a minimum:
(1) the name of the applicant;
(2) that the applicant has applied for
and received benefits;
(3) the week the benefits commence;
(4) the weekly benefit amount payable;
(5) the maximum duration of benefits;
and
(6) descriptions of the employer's
right to participate in a hearing under section 268B.05, and appeal process
under section 268B.07.
Sec. 11. [268B.07]
APPEAL PROCESS.
Subdivision 1. Hearing. (a) The commissioner shall designate a
chief benefit judge.
(b) Upon a timely appeal to a
determination having been filed or upon a referral for direct hearing, the
chief benefit judge must set a time and date for a de novo due-process hearing
and send notice to an applicant and an employer, by mail or electronic transmission,
not less than ten calendar days before the date of the hearing.
(c) The commissioner may adopt rules on
procedures for hearings. The rules need
not conform to common law or statutory rules of evidence and other technical
rules of procedure.
(d) The chief benefit judge has
discretion regarding the method by which the hearing is conducted.
Subd. 2. Decision. (a) After the conclusion of the
hearing, upon the evidence obtained, the benefit judge must serve by mail or electronic transmission to all
parties, the decision, reasons for the decision, and written findings of fact.
(b) Decisions of a benefit judge are not
precedential.
Subd. 3. Request
for reconsideration. Any
party, or the commissioner, may, within 30 calendar days after service of the
benefit judge's decision, file a request for reconsideration asking the judge
to reconsider that decision.
Subd. 4. Appeal
to court of appeals. Any
final determination on a request for reconsideration may be appealed by any
party directly to the Minnesota Court of Appeals.
Subd. 5. Benefit
judges. (a) Only employees of
the department who are attorneys licensed to practice law in Minnesota may
serve as a chief benefit judge, senior benefit judges who are supervisors, or
benefit judges.
(b) The chief benefit judge must assign a
benefit judge to conduct a hearing and may transfer to another benefit judge
any proceedings pending before another benefit judge.
Sec. 12. [268B.08]
BENEFITS.
Subdivision 1. Weekly
benefit amount. (a) Subject
to the maximum weekly benefit amount, an applicant's weekly benefit is
calculated by adding the amounts obtained by applying the following percentage
to an applicant's average weekly wage:
(1)
90 percent of wages that do not exceed 50 percent of the state's average weekly
wage; plus
(2) 66 percent of wages that exceed 50 percent of the
state's average weekly wage but not 100 percent; plus
(3) 55 percent of wages that exceed 100 percent of the
state's average weekly wage.
(b) The state's average weekly wage is the average wage
as calculated under section 268.035, subdivision 23, at the time a benefit
amount is first determined.
(c) Notwithstanding any other provision in this section,
weekly benefits must not exceed the maximum weekly benefit amount applicable at
the time benefit payments commence.
Subd. 2.
Timing of payment. Except as otherwise provided for in
this chapter, benefits must be paid weekly.
Subd. 3.
Maximum length of benefits. (a) Except as provided in paragraph
(b), in a single benefit year, an applicant may receive up to 12 weeks of
benefits under this chapter related to the applicant's serious health condition
or pregnancy and up to 12 weeks of benefits under this chapter for bonding,
safety leave, or family care.
(b) An applicant may receive up to 12 weeks of benefits
in a single benefit year for leave related to one or more qualifying
exigencies.
Subd. 4.
Minimum period for which
benefits payable. Except for
a claim for benefits for bonding leave, any claim for benefits must be based on
a single-qualifying event of at least seven calendar days. Benefits may be paid for a minimum increment
of one day. The minimum increment of one
day may consist of multiple, nonconsecutive portions of a day totaling eight
hours.
Subd. 5.
Withholding of federal tax. If the Internal Revenue Service
determines that benefits are subject to federal income tax, and an applicant
elects to have federal income tax deducted and withheld from the applicant's
benefits, the commissioner must deduct and withhold the amount specified in the
Internal Revenue Code in a manner consistent with state law.
Sec. 13. [268B.085] LEAVE.
Subdivision 1.
Right to leave. Ninety calendar days from the date of
hire, an employee has a right to leave from employment for any day, or portion
of a day, for which the employee would be eligible for benefits under this
chapter, regardless of whether the employee actually applied for benefits and
regardless of whether the employee is covered under a private plan or the
public program under this chapter.
Subd. 2.
Notice to employer. (a) If the need for leave is
foreseeable, an employee must provide the employer at least 30 days' advance
notice before leave under this chapter is to begin. If 30 days' notice is not practicable because
of a lack of knowledge of approximately when leave will be required to begin, a
change in circumstances, or a medical emergency, notice must be given as soon
as practicable. Whether leave is to be
continuous or is to be taken intermittently or on a reduced schedule basis,
notice need only be given one time, but the employee must advise the employer
as soon as practicable if dates of scheduled leave change or are extended, or
were initially unknown. In those cases
where the employee is required to provide at least 30 days' notice of
foreseeable leave and does not do so, the employee must explain the reasons why
such notice was not practicable upon a request from the employer for such
information.
(b) "As soon as practicable" means as soon as
both possible and practical, taking into account all of the facts and
circumstances in the individual case. When
an employee becomes aware of a need for leave under this chapter less than 30
days in advance, it should be practicable for the employee to provide notice of
the need for leave either the
same
day or the next day, unless the need for leave is based on a medical emergency. In all cases, however, the determination of
when an employee could practicably provide notice must take into account the
individual facts and circumstances.
(c) An employee shall provide at least
verbal notice sufficient to make the employer aware that the employee needs
leave allowed under this chapter and the anticipated timing and duration of the
leave. An employer may require an
employee giving notice of leave to include a certification for the leave as
described in section 268B.04, subdivision 2.
Such certification, if required by an employer, is timely when the
employee delivers it as soon as practicable given the circumstances requiring
the need for leave, and the required contents of the certification.
(d) An employer may require an employee
to comply with the employer's usual and customary notice and procedural
requirements for requesting leave, absent unusual circumstances or other
circumstances caused by the reason for the employee's need for leave. Leave under this chapter must not be delayed
or denied where an employer's usual and customary notice or procedural
requirements require notice to be given sooner than set forth in this
subdivision.
(e) If an employer has failed to
provide notice to the employee as required under section 268B.22, paragraph
(a), (b), or (e), the employee is not required to comply with the notice
requirements of this subdivision.
Subd. 3. Bonding
leave. Bonding leave taken
under this chapter begins at a time requested by the employee. Bonding leave must begin within 12 months of
the birth, adoption, or placement of a foster child, except that, in the case
where the child must remain in the hospital longer than the mother, the leave
must begin within 12 months after the child leaves the hospital.
Subd. 4. Intermittent
or reduced leave schedule. (a)
Leave under this chapter, based on a serious health condition, may be taken
intermittently or on a reduced leave schedule if such leave would be medically
beneficial to the individual with the serious health condition. For all other leaves under this chapter,
leave may be taken intermittently or on a reduced leave schedule. Intermittent leave is leave taken in separate
blocks of time due to a single, seven-day qualifying event. A reduced leave schedule is a leave schedule
that reduces an employee's usual number of working hours per workweek or hours
per workday.
(b) Leave taken intermittently or on a
reduced schedule basis counts toward the maximums described in section 268B.08,
subdivision 3.
Sec. 14. [268B.09]
EMPLOYMENT PROTECTIONS.
Subdivision 1. Retaliation
prohibited. An employer must
not retaliate against an employee for requesting or obtaining benefits, or for
exercising any other right under this chapter.
Subd. 2. Interference
prohibited. An employer must
not obstruct or impede an application for leave or benefits or the exercise of
any other right under this chapter.
Subd. 3. Waiver
of rights void. Any agreement
to waive, release, or commute rights to benefits or any other right under this
chapter is void.
Subd. 4. No
assignment of benefits. Any
assignment, pledge, or encumbrance of benefits is void. Benefits are exempt from levy, execution,
attachment, or any other remedy provided for the collection of debt. Any waiver of this subdivision is void.
Subd. 5. Continued
insurance. During any leave
for which an employee is entitled to benefits under this chapter, the employer
must maintain coverage under any group insurance policy, group subscriber
contract, or health care plan for the employee and any dependents as if the
employee was not on leave, provided, however, that the employee must continue
to pay any employee share of the cost of such benefits.
Subd. 6. Employee
right to reinstatement. (a)
On return from leave under this chapter, an employee is entitled to be returned
to the same position the employee held when leave commenced or to an equivalent
position with equivalent benefits, pay, and other terms and conditions of
employment. An employee is entitled to
such reinstatement even if the employee has been replaced or the employee's
position has been restructured to accommodate the employee's absence.
(b)(1) An equivalent position is one
that is virtually identical to the employee's former position in terms of pay,
benefits, and working conditions, including privileges, prerequisites, and
status. It must involve the same or
substantially similar duties and responsibilities, which must entail
substantially equivalent skill, effort, responsibility, and authority.
(2) If an employee is no longer
qualified for the position because of the employee's inability to attend a
necessary course, renew a license, fly a minimum number of hours, or the like,
as a result of the leave, the employee must be given a reasonable opportunity
to fulfill those conditions upon return from leave.
(c)(1) An employee is entitled to any
unconditional pay increases which may have occurred during the leave period,
such as cost of living increases. Pay
increases conditioned upon seniority, length of service, or work performed must
be granted in accordance with the employer's policy or practice with respect to
other employees on an equivalent leave status for a reason that does not
qualify for leave under this chapter. An
employee is entitled to be restored to a position with the same or equivalent
pay premiums, such as a shift differential.
If an employee departed from a position averaging ten hours of overtime,
and corresponding overtime pay, each week an employee is ordinarily entitled to
such a position on return from leave under this chapter.
(2) Equivalent pay includes any bonus
or payment, whether it is discretionary or nondiscretionary, made to employees
consistent with the provisions of clause (1).
However, if a bonus or other payment is based on the achievement of a
specified goal such as hours worked, products sold, or perfect attendance, and
the employee has not met the goal due to leave under this chapter, the payment
may be denied, unless otherwise paid to employees on an equivalent leave status
for a reason that does not qualify for leave under this chapter.
(d) Benefits under this section include
all benefits provided or made available to employees by an employer, including
group life insurance, health insurance, disability insurance, sick leave,
annual leave, educational benefits, and pensions, regardless of whether such
benefits are provided by a practice or written policy of an employer through an
employee benefit plan as defined in section 3(3) of United States Code, title 29,
section 1002(3).
(1) At the end of an employee's leave
under this chapter, benefits must be resumed in the same manner and at the same
levels as provided when the leave began, and subject to any changes in benefit
levels that may have taken place during the period of leave affecting the
entire workforce, unless otherwise elected by the employee. Upon return from a leave under this chapter,
an employee cannot be required to requalify for any benefits the employee
enjoyed before leave began, including family or dependent coverages.
(2) An employee may, but is not
entitled to, accrue any additional benefits or seniority during a leave under
this chapter. Benefits accrued at the
time leave began, however, must be available to an employee upon return from leave.
(3)
With respect to pension and other retirement plans, leave under this chapter
must not be treated as or counted toward a break in service for purposes of
vesting and eligibility to participate. Also,
if the plan requires an employee to be employed on a specific date in order to
be credited with a year of service for vesting, contributions, or participation
purposes, an employee on leave under this chapter must be treated as employed
on that date. However, periods of leave
under this chapter need not be treated as credited service for purposes of
benefit accrual, vesting, and eligibility to participate.
(4) Employees on leave under this
chapter must be treated as if they continued to work for purposes of changes to
benefit plans. Employees on leave under
this chapter are entitled to changes in benefit plans, except those which may
be dependent upon seniority or accrual during the leave period, immediately
upon return from leave or to the same extent they would have qualified if no
leave had been taken.
(e) An equivalent position must have
substantially similar duties, conditions, responsibilities, privileges, and
status as the employee's original position.
(1) The employee must be reinstated to
the same or a geographically proximate worksite from where the employee had
previously been employed. If the
employee's original worksite has been closed, the employee is entitled to the
same rights as if the employee had not been on leave when the worksite closed.
(2) The employee is ordinarily entitled
to return to the same shift or the same or an equivalent work schedule.
(3) The employee must have the same or
an equivalent opportunity for bonuses, profit-sharing, and other similar
discretionary and nondiscretionary payments.
(4) This chapter does not prohibit an
employer from accommodating an employee's request to be restored to a different
shift, schedule, or position which better suits the employee's personal needs
on return from leave, or to offer a promotion to a better position. However, an employee must not be induced by
the employer to accept a different position against the employee's wishes.
(f) The requirement that an employee be
restored to the same or equivalent job with the same or equivalent pay,
benefits, and terms and conditions of employment does not extend to de minimis,
intangible, or unmeasurable aspects of the job.
Subd. 7. Limitations
on an employee's right to reinstatement.
An employee has no greater right to reinstatement or to other
benefits and conditions of employment than if the employee had been
continuously employed during the period of leave under this chapter. An employer must be able to show that an
employee would not otherwise have been employed at the time reinstatement is
requested in order to deny restoration to employment.
(1) If an employee is laid off during
the course of taking a leave under this chapter and employment is terminated,
the employer's responsibility to continue the leave, maintain group health plan
benefits, and restore the employee cease at the time the employee is laid off,
provided the employer has no continuing obligations under a collective
bargaining agreement or otherwise. An
employer would have the burden of proving that an employee would have been laid
off during the period of leave under this chapter and, therefore, would not be
entitled to restoration. Restoration to
a job slated for layoff when the employee's original position would not meet
the requirements of an equivalent position.
(2) If a shift has been eliminated or
overtime has been decreased, an employee would not be entitled to return to
work that shift or the original overtime hours upon restoration. However, if a position on, for example, a
night shift has been filled by another employee, the employee is entitled to
return to the same shift on which employed before taking leave under this
chapter.
(3)
If an employee was hired for a specific term or only to perform work on a
discrete project, the employer has no obligation to restore the employee if the
employment term or project is over and the employer would not otherwise have
continued to employ the employee.
Subd. 8. Remedies. (a) In addition to any other remedies
available to an employee in law or equity, an employer who violates the
provisions of this section is liable to any employee affected for:
(1) damages equal to the amount of:
(i) any wages, salary, employment
benefits, or other compensation denied or lost to such employee by reason of
the violation, or, in a cases in which wages, salary, employment benefits, or
other compensation have not been denied or lost to the employee, any actual
monetary losses sustained by the employee as a direct result of the violation;
and
(ii) reasonable interest on the amount
described in item (i); and
(2) such equitable relief as may be
appropriate, including employment, reinstatement, and promotion.
(b) An action to recover damages or
equitable relief prescribed in paragraph (a) may be maintained against any
employer in any federal or state court of competent jurisdiction by any one or
more employees for and on behalf of:
(1) the employees; or
(2) the employees and other employees
similarly situated.
(c) The court in an action under this
section must, in addition to any judgment awarded to the plaintiff or
plaintiffs, allow reasonable attorney fees, reasonable expert witness fees, and
other costs of the action to be paid by the defendant.
(d) Nothing in this section shall be
construed to allow an employee to recover damages from an employer for the
denial of benefits under this chapter by the department, unless the employer
unlawfully interfered with the application for benefits under subdivision 2.
Sec. 15. [268B.10]
SUBSTITUTION OF A PRIVATE PLAN.
Subdivision 1. Application
for substitution. Employers
may apply to the commissioner for approval to meet their obligations under this
chapter through the substitution of a private plan that provides paid family,
paid medical, or paid family and medical benefits. In order to be approved as meeting an employer's
obligations under this chapter, a private plan must confer all of the same
rights, protections, and benefits provided to employees under this chapter,
including but not limited to benefits under section 268B.08 and employment
protections under section 268B.09. An
employee covered by a private plan under this section retains all applicable
rights and remedies under section 268B.09.
Subd. 2. Private
plan requirements; medical benefit program.
The commissioner must approve an application for private
provision of the medical benefit program if the commissioner determines:
(1) all of the employees of the
employer are to be covered under the provisions of the employer plan;
(2) eligibility requirements for
benefits and leave are no more restrictive than as provided under this chapter;
(3)
the weekly benefits payable under the private plan for any week are at least
equal to the weekly benefit amount payable under this chapter, taking into
consideration any coverage with respect to concurrent employment by another
employer;
(4) the total number of weeks for which
benefits are payable under the private plan is at least equal to the total
number of weeks for which benefits would have been payable under this chapter;
(5) no greater amount is required to be
paid by employees toward the cost of benefits under the employer plan than by
this chapter;
(6) wage replacement benefits are
stated in the plan separately and distinctly from other benefits;
(7) the private plan will provide
benefits and leave for any serious health condition or pregnancy for which
benefits are payable, and leave provided, under this chapter;
(8) the private plan will impose no
additional condition or restriction on the use of medical benefits beyond those
explicitly authorized by this chapter or regulations promulgated pursuant to
this chapter;
(9) the private plan will allow any
employee covered under the private plan who is eligible to receive medical
benefits under this chapter to receive medical benefits under the employer
plan; and
(10) coverage will be continued under
the private plan while an employee remains employed by the employer.
Subd. 3. Private
plan requirements; family benefit program.
The commissioner must approve an application for private
provision of the family benefit program if the commissioner determines:
(1) all of the employees of the
employer are to be covered under the provisions of the employer plan;
(2) eligibility requirements for
benefits and leave are no more restrictive than as provided under this chapter;
(3) the weekly benefits payable under
the private plan for any week are at least equal to the weekly benefit amount
payable under this chapter, taking into consideration any coverage with respect
to concurrent employment by another employer;
(4) the total number of weeks for which
benefits are payable under the private plan is at least equal to the total
number of weeks for which benefits would have been payable under this chapter;
(5) no greater amount is required to be
paid by employees toward the cost of benefits under the employer plan than by
this chapter;
(6) wage replacement benefits are
stated in the plan separately and distinctly from other benefits;
(7) the private plan will provide
benefits and leave for any care for a family member with a serious health
condition, bonding with a child, qualifying exigency, or safety leave event for
which benefits are payable, and leave provided, under this chapter;
(8) the private plan will impose no
additional condition or restriction on the use of family benefits beyond those
explicitly authorized by this chapter or regulations promulgated pursuant to
this chapter;
(9) the private plan will allow any
employee covered under the private plan who is eligible to receive medical
benefits under this chapter to receive medical benefits under the employer
plan; and
(10)
coverage will be continued under the private plan while an employee remains
employed by the employer.
Subd. 4. Use
of private insurance products. Nothing
in this section prohibits an employer from meeting the requirements of a
private plan through a private insurance product. If the employer plan involves a private
insurance product, that insurance product must conform to any applicable law or
rule.
Subd. 5. Private
plan approval and oversight fee. An
employer with an approved private plan will not be required to pay premiums
established under section 268B.12. An
employer with an approved private plan will be responsible for a private plan
approval and oversight fee equal to $250 for employers with fewer than 50
employees, $500 for employers with 50 to 499 employees, and $1,000 for
employers with 500 or more employees. The
employer must pay this fee (1) upon initial application for private plan
approval and (2) any time the employer applies to amend the private plan. The commissioner will review and report on
the adequacy of this fee to cover private plan administrative costs annually
beginning in 2020 as part of the annual report established in section 268B.21.
Subd. 6. Plan
duration. A private plan
under this section must be in effect for a period of at least one year and,
thereafter, continuously unless the commissioner finds that the employer has
given notice of withdrawal from the plan in a manner specified by the
commissioner in this section or rule. The
plan may be withdrawn by the employer within 30 days of the effective date of
any law increasing the benefit amounts or within 30 days of the date of any
change in the rate of premiums. If the
plan is not withdrawn, it must be amended to conform to provide the increased
benefit amount or change in the rate of the employee's premium on the date of
the increase or change.
Subd. 7. Appeals. An employer may appeal any adverse
action regarding that employer's private plan to the commissioner, in a manner
specified by the commissioner.
Subd. 8. Employees
no longer covered. (a) An
employee is no longer covered by an approved private plan if a leave under this
chapter occurs after the employment relationship with the private plan employer
ends, or if the commissioner revokes the approval of the private plan.
(b) An employee no longer covered by an
approved private plan is, if otherwise eligible, immediately entitled to
benefits under this chapter to the same extent as though there had been no
approval of the private plan.
Subd. 9. Posting
of notice regarding private plan. An
employer with a private plan must provide a notice prepared by or approved by
the commissioner regarding the private plan consistent with the provisions of
section 268B.22.
Subd. 10. Amendment. (a) The commissioner must approve any
amendment to a private plan adjusting the provisions thereof, if the
commissioner determines:
(1) that the plan, as amended, will
conform to the standards set forth in this chapter; and
(2) that notice of the amendment has
been delivered to all affected employees at least ten days before the
submission of the amendment.
(b) Any amendments approved under this
subdivision are effective on the date of the commissioner's approval, unless
the commissioner and the employer agree on a later date.
Subd. 11. Successor
employer. A private plan in
effect at the time a successor acquires the employer organization, trade, or
business, or substantially all the assets thereof, or a distinct and severable
portion of the organization, trade, or business, and continues its operation
without substantial reduction of personnel resulting from
the
acquisition, must continue the approved private plan and must not withdraw the
plan without a specific request for withdrawal in a manner and at a time
specified by the commissioner. A
successor may terminate a private plan with notice to the commissioner and
within 90 days from the date of the acquisition.
Subd. 12. Revocation
of approval by commissioner. (a)
The commissioner may terminate any private plan if the commissioner determines
the employer:
(1) failed to pay benefits;
(2) failed to pay benefits in a timely
manner, consistent with the requirements of this chapter;
(3) failed to submit reports as
required by this chapter or rule adopted under this chapter; or
(4) otherwise failed to comply with
this chapter or rule adopted under this chapter.
(b) The commissioner must give notice
of the intention to terminate a plan to the employer at least ten days before
taking any final action. The notice must
state the effective date and the reason for the termination.
(c) The employer may, within ten days
from mailing or personal service of the notice, file an appeal to the
commissioner in the time, manner, method, and procedure provided by the
commissioner under subdivision 7.
(d) The payment of benefits must not be
delayed during an employer's appeal of the revocation of approval of a private
plan.
(e) If the commissioner revokes
approval of an employer's private plan, that employer is ineligible to apply
for approval of another private plan for a period of three years, beginning on
the date of revocation.
Subd. 13. Employer
penalties. (a) The
commissioner may assess the following monetary penalties against an employer
with an approved private plan found to have violated this chapter:
(1) $1,000 for the first violation; and
(2) $2,000 for the second, and each
successive violation.
(b) The commissioner must waive
collection of any penalty if the employer corrects the violation within 30 days
of receiving a notice of the violation and the notice is for a first violation.
(c) The commissioner may waive
collection of any penalty if the commissioner determines the violation to be an
inadvertent error by the employer.
(d) Monetary penalties collected under
this section shall be deposited in the account.
(e) Assessment of penalties under this
subdivision may be appealed as provided by the commissioner under subdivision
7.
Subd. 14. Reports,
information, and records. Employers
with an approved private plan must maintain all reports, information, and
records as relating to the private plan and claims for a period of six years
from creation and provide to the commissioner upon request.
Subd. 15. Audit
and investigation. The
commissioner may investigate and audit plans approved under this section both
before and after the plans are approved.
Sec. 16. [268B.11]
SELF-EMPLOYED AND INDEPENDENT CONTRACTOR ELECTION OF COVERAGE.
Subdivision 1. Election
of coverage. (a) A
self-employed individual or independent contractor may file with the
commissioner by electronic transmission in a format prescribed by the
commissioner an application to be entitled to benefits under this chapter for a
period not less than 104 consecutive calendar weeks. Upon the approval of the commissioner, sent
by United States mail or electronic transmission, the individual is entitled to
benefits under this chapter beginning the calendar quarter after the date of
approval or beginning in a later calendar quarter if requested by the
self-employed individual or independent contractor. The individual ceases to be entitled to
benefits as of the first day of January of any calendar year only if, at least
30 calendar days before the first day of January, the individual has filed with
the commissioner by electronic transmission in a format prescribed by the
commissioner a notice to that effect.
(b) The commissioner may terminate any
application approved under this section with 30 calendar days' notice sent by
United States mail or electronic transmission if the self-employed individual
is delinquent on any premiums due under this chapter an election agreement. If an approved application is terminated in
this manner during the first 104 consecutive calendar weeks of election, the
self-employed individual remains obligated to pay the premium under subdivision
3 for the remainder of that 104-week period.
Subd. 2. Application
A self-employed individual who applies for coverage under this section must
provide the commissioner with (1) the amount of the individual's net earnings
from self-employment, if any, from the two most recent taxable years and all
tax documents necessary to prove the accuracy of the amounts reported and (2)
any other documentation the commissioner requires. A self-employed individual who is covered
under this chapter must annually provide the commissioner with the amount of
the individual's net earnings from self-employment within 30 days of
filing a federal income tax return.
Subd. 3. Premium. A self-employed individual who elects
to receive coverage under this chapter must annually pay a premium equal to
one-half the percentage in section 268B.12, subdivision 4, clause (1), times
the lesser of:
(1) the individual's self-employment
premium base; or
(2) the maximum earnings subject to the
FICA Old-Age, Survivors, and Disability Insurance tax.
Subd. 4. Benefits. Notwithstanding anything to the
contrary, a self-employed individual who has applied to and been approved for
coverage by the commissioner under this section is entitled to benefits on the
same basis as an employee under this chapter, except that a self-employed
individual's weekly benefit amount under section 268B.08, subdivision 1, must calculated
as a percentage of the self-employed individual's self-employment premium base,
rather than wages.
Sec. 17. [268B.12]
PREMIUMS.
Subdivision 1. Employer. (a) Each person or entity required, or
who elected, to register for a tax account under sections 268.042, 268.045, and
268.046 must pay a premium on the wages paid to employees in covered employment
for each calendar year. The premium must
be paid on all wages up to the maximum specified by this section.
(b) Each person or entity required, or
who elected, to register for a reimbursable account under sections 268.042,
268.045, and 268.046 must pay a premium on the wages paid to employees in
covered employment in the same amount and manner as provided by paragraph (a).
Subd. 2. Employee charge back. Notwithstanding section 177.24, subdivision 4, or 181.06, subdivision 1, employers and covered business entities may deduct up to 50 percent of annual premiums paid under this section from employee wages. Such deductions for any given employee must be in equal proportion to the premiums paid based on the wages of that employee, and all employees of an employer must be subject to the same percentage deduction. Deductions under this section must not cause an employee's wage, after the deduction, to fall below the rate required to be paid to the worker by law, including any applicable statute, regulation, rule, ordinance, government resolution or policy, contract, or other legal authority, whichever rate of pay is greater.
Subd. 3. Wages
and payments subject to premium. (a)
The maximum wages subject to premium in a calendar year is equal to the maximum
earnings in that year subject to the FICA Old-Age, Survivors, and Disability
Insurance tax.
(b) The maximum payment amount subject
to premium in a calendar year, under subdivision 1, paragraph (c), is equal to
the maximum earnings in that year subject to the FICA Old-Age, Survivors, and
Disability Insurance tax.
Subd. 4. Annual
premium rates. The employer
premium rates for the calendar year beginning January 1, 2021, shall be as
follows:
(1) for employers participating in both
family and medical benefit programs, 0.6 percent;
(2) for an employer participating in
only the medical benefit program and with an approved private plan for the
family benefit program, 0.486 percent; and
(3) for an employer participating in
only the family benefit program and with an approved private plan for the
medical benefit program, 0.114 percent.
Subd. 5. Premium
rate adjustments. (a) Each
calendar year following the calendar year beginning January 1, 2023, the
commissioner must adjust the annual premium rates using the formula in
paragraph (b).
(b) To calculate the employer rates for
a calendar year, the commissioner must:
(1) multiply 1.45 times the amount disbursed
from the account for the 52-week period ending September 30 of the prior year;
(2) subtract the amount in the account
on that September 30 from the resulting figure;
(3) divide the resulting figure by twice the total wages in covered employment of employees of employers without approved private plans under section 268B.10 for either the family or medical benefit program. For employers with an approved private plan for either the medical benefit program or the family benefit program, but not both, count only the proportion of wages in covered employment associated with the program for which the employer does not have an approved private plan; and
(4) round the resulting figure down to
the nearest one-hundredth of one percent.
(c) The commissioner must apportion the
premium rate between the family and medical benefit programs based on the
relative proportion of expenditures for each program during the preceding year.
Subd. 6. Deposit
of premiums. All premiums
collected under this section must be deposited into the account.
Subd. 7. Nonpayment
of premiums by employer. The
failure of an employer to pay premiums does not impact the right of an employee
to benefits, or any other right, under this chapter.
Sec. 18. [268B.13]
COLLECTION OF PREMIUMS.
Subdivision 1. Amount
computed presumed correct. Any
amount due from an employer, as computed by the commissioner, is presumed to be
correctly determined and assessed, and the burden is upon the employer to show
any error. A statement by the
commissioner of the amount due is admissible in evidence in any court or
administrative proceeding and is prima facie evidence of the facts in the
statement.
Subd. 2. Priority
of payments. (a) Any payment
received from an employer must be applied in the following order:
(1) premiums due under this chapter;
then
(2) interest on past due premiums; then
(3) penalties, late fees,
administrative service fees, and costs.
(b) Paragraph (a) is the priority used
for all payments received from an employer, regardless of how the employer may
designate the payment to be applied, except when:
(1) there is an outstanding lien and the
employer designates that the payment made should be applied to satisfy the
lien;
(2) a court or administrative order
directs that the payment be applied to a specific obligation;
(3) a preexisting payment plan provides
for the application of payment; or
(4) the commissioner agrees to apply the
payment to a different priority.
Subd. 3. Costs. (a) Any employer that fails to pay any
amount when due under this chapter is liable for any filing fees, recording
fees, sheriff fees, costs incurred by referral to any public or private
collection agency, or litigation costs, including attorney fees, incurred in
the collection of the amounts due.
(b) If any tendered payment of any amount
due is not honored when presented to a financial institution for payment, any
costs assessed to the department by the financial institution and a fee of $25
must be assessed to the person.
(c) Costs and fees collected under this
subdivision are credited to the account.
Subd. 4. Interest
on amounts past due. If any
amounts due from an employer under this chapter, except late fees, are not
received on the date due, the unpaid balance bears interest at the rate of one
percent per month or any part of a month.
Interest collected under this subdivision is payable to the account.
Subd. 5. Interest
on judgments. Regardless of
section 549.09, if judgment is entered upon any past due amounts from an employer under this chapter, the
unpaid judgment bears interest at the rate specified in subdivision 4
until the date of payment.
Subd. 6. Credit
adjustments; refunds. (a) If
an employer makes an application for a credit adjustment of any amount paid
under this chapter within four years of the date that the payment was due, in a
manner and format prescribed by the commissioner, and the commissioner
determines that the payment or any portion thereof was
erroneous,
the commissioner must make an adjustment and issue a credit without interest. If a credit cannot be used, the commissioner
must refund, without interest, the amount erroneously paid. The commissioner, on the commissioner's own
motion, may make a credit adjustment or refund under this subdivision.
(b) Any refund returned to the
commissioner is considered unclaimed property under chapter 345.
(c) If a credit adjustment or refund is
denied in whole or in part, a determination of denial must be sent to the
employer by United States mail or electronic transmission. The determination of denial is final unless
an employer files an appeal within 20 calendar days after receipt of the
determination.
(d) If an employer receives a credit
adjustment or refund under this section, the employer must determine the amount
of any overpayment attributable to a deduction from employee wages under
section 268B.12, subdivision 2, and return any amount erroneously deducted to
each affected employee.
Subd. 7. Priorities
under legal dissolutions or distributions.
In the event of any distribution of an employer's assets
according to an order of any court, including any receivership, assignment for
benefit of creditors, adjudicated insolvency, or similar proceeding, premiums
then or thereafter due must be paid in full before all other claims except
claims for wages of not more than $1,000 per former employee that are earned
within six months of the commencement of the proceedings. In the event of an employer's adjudication in
bankruptcy under federal law, premiums then or thereafter due are entitled to
the priority provided in that law for taxes due.
Sec. 19. [268B.14]
ADMINISTRATIVE COSTS.
From July 1, 2021, through December 31,
2021, the commissioner may spend up to seven percent of premiums collected
under section 268B.13 for administration of this chapter. Beginning January 1, 2022, and each calendar
year thereafter, the commissioner may spend up to seven percent of projected
benefit payments for that calendar year for the administration of this chapter. The department may enter into interagency
agreements with the Department of Labor and Industry, including agreements to
transfer funds, subject to the limit in this section, for the Department of
Labor and Industry to fulfill its enforcement authority of this chapter.
Sec. 20. [268B.15]
PUBLIC OUTREACH.
Beginning in fiscal year 2022, the
commissioner must use at least 0.5 percent of revenue collected under this
chapter for the purpose of outreach, education, and technical assistance for
employees, employers, and self‑employed individuals eligible to elect
coverage under section 268B.11. The
department may enter into interagency agreements with the Department of Labor
and Industry, including agreements to transfer funds, subject to the limit in
section 268B.14, to accomplish the requirements of this section. At least one-half of the amount spent under
this section must be used for grants to community-based groups.
Sec. 21. [268B.16]
APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; PENALTY.
(a) Any applicant who knowingly makes a
false statement or representation, knowingly fails to disclose a material fact,
or makes a false statement or representation without a good-faith belief as to
the correctness of the statement or representation in order to obtain or in an
attempt to obtain benefits may be assessed, in addition to any other penalties,
an administrative penalty of ineligibility of benefits for 13 to 104 weeks.
(b) A determination of ineligibility
setting out the weeks the applicant is ineligible must be sent to the applicant
by United States mail or electronic transmission. The determination is final unless an appeal
is filed within 30 calendar days after receipt of the determination.
Sec. 22. [268B.17]
EMPLOYER MISCONDUCT; PENALTY.
(a) The commissioner must penalize an
employer if that employer or any employee, officer, or agent of that employer
is in collusion with any applicant for the purpose of assisting the applicant
in receiving benefits fraudulently. The
penalty is $500 or the amount of benefits determined to be overpaid, whichever
is greater.
(b) The commissioner must penalize an
employer if that employer or any employee, officer, or agent of that employer:
(1) made a false statement or
representation knowing it to be false;
(2) made a false statement or
representation without a good-faith belief as to the correctness of the
statement or representation; or
(3) knowingly failed to disclose a
material fact.
(c) The penalty is the greater of $500 or
50 percent of the following resulting from the employer's action:
(1) the amount of any overpaid benefits
to an applicant;
(2) the amount of benefits not paid to
an applicant that would otherwise have been paid; or
(3) the amount of any payment required
from the employer under this chapter that was not paid.
(d) Penalties must be paid within 30
calendar days of issuance of the determination of penalty and credited to the
account.
(e) The determination of penalty is final
unless the employer files an appeal within 30 calendar days after the sending
of the determination of penalty to the employer by United States mail or
electronic transmission.
Sec. 23. [268B.18]
RECORDS; AUDITS.
(a) Each employer must keep true and
accurate records on individuals performing services for the employer, containing
the information the commissioner may require under this chapter. The records must be kept for a period of not
less than four years in addition to the current calendar year.
(b) For the purpose of administering this
chapter, the commissioner has the power to investigate, audit, examine, or
cause to be supplied or copied, any books, correspondence, papers, records, or
memoranda that are the property of, or in the possession of, an employer or any
other person at any reasonable time and as often as may be necessary.
(c) An employer or other person that
refuses to allow an audit of its records by the department or that fails to
make all necessary records available for audit in the state upon request of the
commissioner may be assessed an administrative penalty of $500. The penalty collected is credited to the
account.
Sec. 24. [268B.19]
SUBPOENAS; OATHS.
(a) The commissioner or benefit judge has
authority to administer oaths and affirmations, take depositions, certify to
official acts, and issue subpoenas to compel the attendance of individuals and
the production of documents and other personal property necessary in connection
with the administration of this chapter.
(b)
Individuals subpoenaed, other than applicants or officers and employees of an
employer that is the subject of the inquiry, must be paid witness fees the same
as witness fees in civil actions in district court. The fees need not be paid in advance.
(c) The subpoena is enforceable through
the district court in Ramsey County.
Sec. 25. [268B.20]
CONCILIATION SERVICES.
The Department of Labor and Industry
may offer conciliation services to employers and employees to resolve disputes
concerning alleged violations of employment protections identified in section
268B.09.
Sec. 26. [268B.21]
ANNUAL REPORTS.
(a) Annually, beginning on or before
December 1, 2021, the commissioner must report to the Department of Management
and Budget and the house of representatives and senate committee chairs with
jurisdiction over this chapter on program administrative expenditures and
revenue collection for the prior fiscal year, including but not limited to:
(1) total revenue raised through
premium collection;
(2) the number of self-employed
individuals or independent contractors electing coverage under section 268B.11
and amount of associated revenue;
(3) the number of covered business
entities paying premiums under this chapter and associated revenue;
(4) administrative expenditures
including transfers to other state agencies expended in the administration of
the chapter;
(5) summary of contracted services
expended in the administration of this chapter;
(6) grant amounts and recipients under
section 268B.15;
(7) an accounting of required outreach
expenditures;
(8) summary of private plan approvals
including the number of employers and employees covered under private plans;
and
(9) adequacy and use of the private
plan approval and oversight fee.
(b) Annually, beginning on or before
December 1, 2022, the commissioner must publish a publicly available report
providing the following information for the previous fiscal year:
(1) total eligible claims;
(2) the number and percentage of claims
attributable to each category of benefit;
(3) claimant demographics by age,
gender, average weekly wage, occupation, and the type of leave taken;
(4) the percentage of claims denied and
the reasons therefor, including, but not limited to insufficient information
and ineligibility and the reason therefor;
(5) average weekly benefit amount paid for all claims and by category of benefit;
(6) changes in the benefits paid
compared to previous fiscal years;
(7) processing times for initial claims
processing, initial determinations, and final decisions;
(8) average duration for cases
completed; and
(9) the number of cases remaining open
at the close of such year.
Sec. 27. [268B.22]
NOTICE REQUIREMENTS.
(a) Each employer must post in a
conspicuous place on each of its premises a workplace notice prepared or
approved by the commissioner providing notice of benefits available under this
chapter. The required workplace notice
must be in English and each language other than English which is the primary
language of five or more employees or independent contractors of that
workplace, if such notice is available from the department.
(b) Each employer must issue to each
employee not more than 30 days from the beginning date of the employee's
employment, or 30 days before premium collection begins, which ever is later,
the following written information provided or approved by the department in the
primary language of the employee:
(1) an explanation of the availability
of family and medical leave benefits provided under this chapter, including
rights to reinstatement and continuation of health insurance;
(2) the amount of premium deductions
made by the employer under this chapter;
(3) the employer's premium amount and
obligations under this chapter;
(4) the name and mailing address of the employer;
(5) the identification number assigned
to the employer by the department;
(6) instructions on how to file a claim
for family and medical leave benefits;
(7) the mailing address, email
address, and telephone number of the department; and
(8) any other information required by
the department.
Delivery is made when an employee provides written
acknowledgment of receipt of the information, or signs a statement indicating
the employee's refusal to sign such acknowledgment.
(c) Each employer shall provide to each
independent contractor with whom it contracts, at the time such contract is
made or, for existing contracts, within 30 days of the effective date of this
section, the following written information provided or approved by the
department in the self-employed individual's primary language:
(1) the address and telephone number of the department; and
(2) any other information required by
the department.
(d)
An employer that fails to comply with this subsection may be issued, for a
first violation, a civil penalty of $50 per employee and per independent
contractor with whom it has contracted, and for each subsequent violation, a
civil penalty of $300 per employee or self-employed individual with whom it has
contracted. The employer shall have the
burden of demonstrating compliance with this section.
(e) Employer notice to an employee
under this section may be provided in paper or electronic format. For notice provided in electronic format
only, the employer must provide employee access to an employer-owner computer
during an employee's regular working hours to review and print required
notices.
Sec. 28. [268B.23]
RELATIONSHIP TO OTHER LEAVE; CONSTRUCTION.
Subdivision 1. Concurrent
leave. An employer may
require leave taken under this chapter to run concurrently with leave taken for
the same purpose under section 181.941 or the Family and Medical Leave Act,
United States Code, title 29, sections 2601 to 2654, as amended.
Subd. 2. Construction. Nothing in this chapter shall be
construed to:
(1) allow an employer to compel an employee to exhaust accumulated sick, vacation, or personal time before or while taking leave under this chapter;
(2) prohibit an employer from providing
additional benefits, including, but not limited to, covering the portion of
earnings not provided under this chapter during periods of leave covered under
this chapter; or
(3) limit the parties to a collective
bargaining agreement from bargaining and agreeing with respect to leave
benefits and related procedures and employee protections that meet or exceed,
and do not otherwise conflict with, the minimum standards and requirements in
this chapter.
Sec. 29. [268B.24]
SMALL BUSINESS ASSISTANCE GRANTS.
(a) Employers with 50 or fewer
employees may apply to the department for grants under this section.
(b) The commissioner may approve a
grant of up to $3,000 if the employer hires a temporary worker to replace an
employee on family or medical leave for a period of seven days or more.
(c) For an employee's family or medical
leave, the commissioner may approve a grant of up to $1,000 as reimbursement
for significant additional wage-related costs due to the employee's leave.
(d) To be eligible for consideration
for a grant under this section, the employer must provide the department
written documentation showing the temporary worker hired or significant
wage-related costs incurred are due to an employee's use of leave under this
chapter.
(e) The grants under this section may
be funded from the account.
(f) For the purposes of this section,
the commissioner shall average the number of employees reported by an employer
over the last four completed calendar quarters to determine the size of the
employer.
(g) An employer who has an approved
private plan is not eligible to receive a grant under this section.
(h)
The commissioner may award grants under this section only up to a maximum of
$5,000,000 per calendar year.
Sec. 30. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision to read:
Subd. 23. Benefits
under chapter 268B. The
amount received in benefits under chapter 268B is a subtraction.
Sec. 31. EFFECTIVE
DATES.
(a) Benefits under Minnesota Statutes,
chapter 268B, shall not be applied for or paid until January 1, 2022, and
thereafter.
(b) Sections 1, 2, 4, 5, and 6 are
effective July 1, 2019.
(c) Section 15 is effective July 1,
2020.
(d) Sections 3, 17, 18, 22, 23, 24, and
26 are effective January 1, 2021.
(e) Sections 19 and 20 are effective
July 1, 2021.
(f) Sections 7, 8, 9, 10, 11, 12, 13,
14, 16, 21, 25, 27, 28, 29, and 30 are effective January 1, 2022.
ARTICLE 3
FAMILY AND MEDICAL LEAVE BENEFIT AS EARNINGS
Section 1. Minnesota Statutes 2018, section 256J.561, is amended by adding a subdivision to read:
Subd. 4. Parents
receiving family and medical leave benefits. A parent who meets the criteria under
subdivision 2 and who receives benefits under chapter 268B is not required to
participate in employment services.
Sec. 2. Minnesota Statutes 2018, section 256J.95, subdivision 3, is amended to read:
Subd. 3. Eligibility for diversionary work program. (a) Except for the categories of family units listed in clauses (1) to (8), all family units who apply for cash benefits and who meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must participate in the diversionary work program. Family units or individuals that are not eligible for the diversionary work program include:
(1) child only cases;
(2) single-parent family units that include a child under 12 months of age. A parent is eligible for this exception once in a parent's lifetime;
(3) family units with a minor parent without a high school diploma or its equivalent;
(4) family units with an 18- or 19-year-old caregiver without a high school diploma or its equivalent who chooses to have an employment plan with an education option;
(5) family units with a caregiver who received DWP benefits within the 12 months prior to the month the family applied for DWP, except as provided in paragraph (c);
(6) family units with a caregiver who received MFIP within the 12 months prior to the month the family applied for DWP;
(7) family units with a caregiver who
received 60 or more months of TANF assistance; and
(8)
family units with a caregiver who is disqualified from the work participation
cash benefit program, DWP, or MFIP due to fraud.; and
(9) single-parent family units where a parent is receiving
family and medical leave benefits under chapter 268B.
(b) A two-parent family must participate in DWP unless both caregivers meet the criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit includes a parent who meets the criteria in paragraph (a), clause (6), (7), or (8).
(c) Once DWP eligibility is determined, the four months run consecutively. If a participant leaves the program for any reason and reapplies during the four-month period, the county must redetermine eligibility for DWP.
Sec. 3. Minnesota Statutes 2018, section 256J.95, subdivision 11, is amended to read:
Subd. 11. Universal participation required. (a) All DWP caregivers, except caregivers who meet the criteria in paragraph (d), are required to participate in DWP employment services. Except as specified in paragraphs (b) and (c), employment plans under DWP must, at a minimum, meet the requirements in section 256J.55, subdivision 1.
(b) A caregiver who is a member of a two-parent family that is required to participate in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed to develop an employment plan under section 256J.521, subdivision 2, that may contain alternate activities and reduced hours.
(c) A participant who is a victim of family violence shall be allowed to develop an employment plan under section 256J.521, subdivision 3. A claim of family violence must be documented by the applicant or participant by providing a sworn statement which is supported by collateral documentation in section 256J.545, paragraph (b).
(d) One parent in a two-parent family unit that has a
natural born child under 12 months of age is not required to have an
employment plan until the child reaches 12 months of age unless the family
unit has already used the exclusion under section 256J.561, subdivision 3, or
the previously allowed child under age one exemption under section 256J.56,
paragraph (a), clause (5). if that parent:
(1) receives family and medical leave benefits under
chapter 268B; or
(2) has a natural born child under 12 months of age
until the child reaches 12 months of age unless the family unit has already
used the exclusion under section 256J.561, subdivision 3, or the previously
allowed child under age one exemption under section 256J.56, paragraph (a),
clause (5).
(e) The provision in paragraph (d) ends the first full month after the child reaches 12 months of age. This provision is allowable only once in a caregiver's lifetime. In a two-parent household, only one parent shall be allowed to use this category.
(f) The participant and job counselor must meet in the month after the month the child reaches 12 months of age to revise the participant's employment plan. The employment plan for a family unit that has a child under 12 months of age that has already used the exclusion in section 256J.561 must be tailored to recognize the caregiving needs of the parent.
Sec. 4. Minnesota Statutes 2018, section 256P.01, subdivision 3, is amended to read:
Subd. 3. Earned income. "Earned income" means cash or in-kind income earned through the receipt of wages, salary, commissions, bonuses, tips, gratuities, profit from employment activities, net profit from self-employment activities, payments made by an employer for regularly accrued vacation or sick leave, severance pay based on
accrued leave time, benefits paid under chapter 268B, payments from training programs at a rate at or greater than the state's minimum wage, royalties, honoraria, or other profit from activity that results from the client's work, service, effort, or labor. The income must be in return for, or as a result of, legal activity.
Sec. 5. EFFECTIVE
DATES.
Sections 1 to 4 are effective January
1, 2022.
ARTICLE 4
ECONOMIC DEVELOPMENT POLICY
Section 1.
[116J.545] GETTING TO WORK
GRANT PROGRAM.
Subdivision 1. Creation. The commissioner of employment and
economic development shall make grants to nonprofit organizations to establish
and operate programs under this section that provide, repair, or maintain motor
vehicles to assist eligible individuals in obtaining or maintaining employment. All grants shall be for two years.
Subd. 2. Qualified
grantee. A grantee must:
(1) qualify under section 501(c)(3) of
the Internal Revenue Code; and
(2) at the time of application, offer
or have the demonstrated capacity to offer a motor vehicle program that
provides the services required under subdivision 3.
Subd. 3. Program
requirements. (a) A program
must offer one or more of the following services:
(1) provision of new or used motor
vehicles by gift, sale, or lease;
(2) motor vehicle repair and
maintenance services; or
(3) motor vehicle loans.
(b) In addition to the requirements of
paragraph (a), a program must offer one or more of the following services:
(1) financial literacy education;
(2) education on budgeting for vehicle
ownership;
(3) car maintenance and repair
instruction;
(4) credit counseling; or
(5) job training related to motor
vehicle maintenance and repair.
Subd. 4. Application. An application for a grant must be on
a form provided by the commissioner and on a schedule set by the commissioner. An application must, in addition to any other
information required by the commissioner, include the following:
(1) a detailed description of all
services to be offered;
(2) the area to be served;
(3)
the estimated number of program participants to be served by the grant; and
(4) a plan for leveraging resources
from partners that may include but are not limited to:
(i) automobile dealers;
(ii) automobile parts dealers;
(iii) independent local mechanics and
automobile repair facilities;
(iv) banks and credit unions;
(v) employers;
(vi) employment and training agencies;
(vii) insurance companies and agents;
(viii) local workforce centers; and
(ix) educational institutions including
vocational institutions and jobs or skills training programs.
Subd. 5. Participant
eligibility. (a) To be
eligible to receive program services, a person must:
(1) have a household income at or below
200 percent of the federal poverty level;
(2) be at least 18 years of age;
(3) have a valid driver's license;
(4) provide the grantee with proof of
motor vehicle insurance; and
(5) demonstrate to the grantee that a
motor vehicle is required by the person to obtain or maintain employment.
(b) This subdivision does not preclude
a grantee from imposing additional requirements consistent with paragraph (a)
for the receipt of program services.
Subd. 6. Report
to legislature. By February
15, 2021, and each January 15 in an odd-numbered year thereafter, the
commissioner shall submit a report to the chairs of the house of
representatives and senate committees with jurisdiction over workforce and
economic development on program outcomes.
At a minimum, the report must include:
(1) the total number of program
participants;
(2) the number of program participants
who received each of the following:
(i) provision of a motor vehicle;
(ii) motor vehicle repair services; and
(iii) motor vehicle loans;
(3)
the number of program participants who report that they or their children were
able to increase their participation in community activities such as after-school
programs, other youth programs, church or civic groups, or library services as
a result of participation in the program; and
(4) an analysis of the impact of the
getting to work grant program on the employment rate and wages of program
participants.
Sec. 2. Minnesota Statutes 2018, section 116J.8731, subdivision 5, is amended to read:
Subd. 5. Grant
limits. A Minnesota investment fund
grant may not be approved for an amount in excess of $1,000,000, except that
a grant of up to $2,000,000 is allowable for projects that have at least
$25,000,000 in capital investment and 150 new employees. This limit covers all money paid to complete
the same project, whether paid to one or more grant recipients and whether paid
in one or more fiscal years. A local
community or recognized Indian tribal government may retain 40 percent, but not
more than $100,000, of a Minnesota investment fund grant when it is repaid to
the local community or recognized Indian tribal government by the person or
entity to which it was loaned by the local community or Indian tribal
government. Money repaid to the state
must be credited to a Minnesota investment revolving loan account in the state
treasury. Funds in the account are
appropriated to the commissioner and must be used in the same manner as are
funds appropriated to the Minnesota investment fund. Funds repaid to the state through existing
Minnesota investment fund agreements must be credited to the Minnesota
investment revolving loan account effective July 1, 2005. A grant or loan may not be made to a person
or entity for the operation or expansion of a casino or a store which is used
solely or principally for retail sales. Persons
or entities receiving grants or loans must pay each employee total
compensation, including benefits not mandated by law, that on an annualized
basis is equal to at least 110 125 percent of the federal poverty
level for a family of four.
Sec. 3. Minnesota Statutes 2018, section 116J.8748, subdivision 4, is amended to read:
Subd. 4. Certification; benefits. (a) The commissioner may certify a Minnesota job creation fund business as eligible to receive a specific value of benefit under paragraphs (b) and (c) when the business has achieved its job creation and capital investment goals noted in its agreement under subdivision 3.
(b) A qualified Minnesota job creation fund business may be certified eligible for the benefits in this paragraph for up to five years for projects located in the metropolitan area as defined in section 200.02, subdivision 24, and seven years for projects located outside the metropolitan area, as determined by the commissioner when considering the best interests of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a), clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located outside the metropolitan area may be for up to seven years in length. The eligibility for the following benefits begins the date the commissioner certifies the business as a qualified Minnesota job creation fund business under this subdivision:
(1) up to five percent rebate for projects located in the metropolitan area as defined in section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan area, on capital investment on qualifying purchases as provided in subdivision 5 with the total rebate for a project not to exceed $500,000;
(2) an award of up to $500,000 based on full-time job creation and wages paid as provided in subdivision 6 with the total award not to exceed $500,000;
(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards are allowable for projects that have at least $25,000,000 in capital investment and 200 new employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75 new employees for projects located outside the metropolitan area;
(4) up to $1,000,000 in capital investment rebates are allowable for projects that have at least $25,000,000 in capital investment and 200 retained employees for projects located in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for projects located outside the metropolitan area; and
(5) for clauses (3) and (4) only, the capital investment expenditure requirements may include the installation and purchases of machinery and equipment. These expenditures are not eligible for the capital investment rebate provided under subdivision 5.
(c) The job creation award may be provided in multiple years as long as the qualified Minnesota job creation fund business continues to meet the job creation goals provided for in its agreement under subdivision 3 and the total award does not exceed $500,000 except as provided under paragraph (b), clauses (3) and (4).
(d) No rebates or award may be provided until the Minnesota job creation fund business or a third party constructing or managing the project has at least $500,000 in capital investment in the project and at least ten full‑time jobs have been created and maintained for at least one year or the retained employees, as provided in paragraph (b), clause (4), remain for at least one year. The agreement may require additional performance outcomes that need to be achieved before rebates and awards are provided. If fewer retained jobs are maintained, but still above the minimum under this subdivision, the capital investment award shall be reduced on a proportionate basis.
(e) The forms needed to be submitted to document performance by the Minnesota job creation fund business must be in the form and be made under the procedures specified by the commissioner. The forms shall include documentation and certification by the business that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66, and other provisions as specified by the commissioner.
(f) Minnesota job creation fund businesses
must pay each new full-time employee added pursuant to the agreement total
compensation, including benefits not mandated by law, that on an annualized
basis is equal to at least 110 125 percent of the federal poverty
level for a family of four.
(g) A Minnesota job creation fund business must demonstrate reasonable progress on capital investment expenditures within six months following designation as a Minnesota job creation fund business to ensure that the capital investment goal in the agreement under subdivision 1 will be met. Businesses not making reasonable progress will not be eligible for benefits under the submitted application and will need to work with the local government unit to resubmit a new application and request to be a Minnesota job creation fund business. Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not be considered a default of the business subsidy agreement.
Sec. 4. Minnesota Statutes 2018, section 116J.8748, subdivision 6, is amended to read:
Subd. 6. Job
creation award. (a) A qualified
Minnesota job creation fund business is eligible for an annual award for each
new job created and maintained by the business using the following schedule: $1,000 for each job position paying annual
wages at least $26,000 $32,188 but less than $35,000 no
more than $37,707; $2,000 for each job position paying at least $35,000
more than $37,707 but less than $45,000 no more than $47,965;
and $3,000 for each job position paying at least $45,000 more than
$47,965; and as noted in the goals under the agreement provided under
subdivision 1. These awards are
increased by $1,000 if the business is located outside the metropolitan area as
defined in section 200.02, subdivision 24, or if 51 percent of the business is
cumulatively owned by minorities, veterans, women, or persons with a
disability.
(b) The job creation award schedule must be adjusted annually using the percentage increase in the federal poverty level for a family of four.
(c) Minnesota job creation fund businesses seeking an award credit provided under subdivision 4 must submit forms and applications to the Department of Employment and Economic Development as prescribed by the commissioner.
Sec. 5. [116L.25]
PATHWAYS TO PROSPERITY GRANT PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Career pathway" means a
career-readiness program, connected to a specific industry sector, that
combines basic skills training, education, and support services and results in
either industry-specific training or an employer‑recognized credential.
(c) "Commissioner" means the
commissioner of employment and economic development.
(d) "Pathways to prosperity grant
program" or "grant program" means the competitive grant program
created in this section.
Subd. 2. Establishment. The commissioner shall establish a
pathways to prosperity grant program to award grants to organizations to train
adults facing the greatest employment disparities and to assist them in finding
employment in high-demand occupations with long-term employment opportunities.
Subd. 3. Grant
process. (a) The commissioner
shall award grants to organizations through a competitive grant process.
(b) The commissioner shall develop
grant-making criteria for the grant program.
These criteria shall include guidelines for multiple types of career
pathways. These criteria shall also consider
a program's alignment with the labor market in the community where the program
operates and, where applicable, a program's previous grant performance. At least once every biennium, the
commissioner shall consult with workforce development service providers on
program criteria and administration.
(c) All reporting requirements for
grant recipients shall be outlined in plain language in both the request for
proposal and the grant contract.
(d) The commissioner shall provide
applicants with technical assistance with understanding application procedures
and program guidelines.
Sec. 6. [116L.35]
INVENTORY OF WORKFORCE DEVELOPMENT PROGRAMS.
(a) By January 15, 2020, and by January
15 of each even-numbered year thereafter, the commissioner of employment and
economic development must submit a report to the chairs of the legislative
committees with jurisdiction over workforce development that provides an
inventory of all workforce development programs either provided by or overseen
by any branch of the state of Minnesota.
(b) Programs related to workforce
development that must be included in the report include those that:
(1) are federally funded or state
funded;
(2) provide assistance to either
businesses or individuals; or
(3) support internships,
apprenticeships, career and technical education, or any form of employment
training.
(c)
For each workforce development program, the report must include, at a minimum,
the following information:
(1) details of program costs;
(2) the number of staff, both within
the department and any outside organization;
(3) the number of program participants;
(4) a short description of what each program does;
(5) to the extent practical,
quantifiable measures of program success;
(6) any data necessary to describe the
work of the program;
(7) any data necessary to describe or
evaluate the success of the program; and
(8) a plan for how the program can best
measure its success in a manner useful and understandable to those responsible
for funding the program in the future.
Sec. 7. [116L.43]
METROPOLITAN JOB TRAINING GRANTS.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Agreement" means the
agreement between an employer and the commissioner for a project.
(c) "Commissioner" means the
commissioner of employment and economic development.
(d) "Disability" has the
meaning given under United States Code, title 42, chapter 126.
(e) "Employee" means the
individual employed in a new job.
(f) "Employer" means the
individual, corporation, partnership, limited liability company, or association
providing new jobs and entering into an agreement.
(g) "New job" means a job:
(1) that is provided by a new or
expanding business in the manufacturing or technology industry;
(2) that is located within the
metropolitan area, as defined under section 473.121, subdivision 2;
(3) that provides at least 32 hours of
work per week for a minimum of nine months per year and is permanent with no
planned termination date;
(4) that is certified by the
commissioner as qualifying under the program before the first employee is hired
to fill the job; and
(5) for which an employee hired was
not:
(i) formerly employed by the employer
in the state; or
(ii) a replacement worker, including a
worker newly hired as a result of a labor dispute.
(h)
"Program" means the project or projects established under this
section.
(i) "Program costs" means all
necessary and incidental costs of providing program services, except that
program costs are increased by $1,000 per employee for an individual with a
disability. The term does not include
the cost of purchasing equipment to be owned or used by the training or
educational institution or service.
(j) "Program services" means
training and education specifically directed to new jobs that are determined to
be appropriate by the commissioner, including in-house training; services
provided by institutions of higher education and federal, state, or local
agencies; or private training or educational services. Administrative services and assessment and
testing costs are included.
(k) "Project" means a
training arrangement that is the subject of an agreement entered into between
the commissioner and an employer to provide program services.
Subd. 2. Service
provision. Upon request, the
commissioner shall provide or coordinate the provision of program services
under this section to a business eligible for grants under subdivision 8. The commissioner shall specify the form of
and required information to be provided with applications for projects to be
funded with grants under this section.
Subd. 3. Agreements;
required terms. (a) The
commissioner may enter into an agreement to establish a project with an
employer that:
(1) identifies program costs to be paid
from sources under the program;
(2) identifies program costs to be paid
by the employer;
(3) provides that on-the-job training
costs for employees may not exceed 50 percent of the annual gross wages and
salaries of the new jobs in the first full year after execution of the
agreement up to a maximum of $10,000 per eligible employee;
(4) provides that each employee must be
paid wages at least equal to the median hourly wage for the county in which the
job is located, as reported in the most recently available data from the United
States Bureau of the Census, plus benefits, by the earlier of the end of the
training period or 18 months of employment under the project; and
(5) provides that job training will be
provided and the length of time of training.
(b) Before entering into a final
agreement, the commissioner shall:
(1) determine that sufficient funds for
the project are available under subdivision 8; and
(2) investigate the applicability of
other training programs and determine whether the job skills partnership grant
program is a more suitable source of funding for the training and whether the
training can be completed in a timely manner that meets the needs of the
business.
The investigation under clause (2) must be completed
within 15 days or as soon as reasonably possible after the employer has
provided the commissioner with all the requested information.
Subd. 4. Grant
funds sufficient. The
commissioner must not enter into an agreement under subdivision 3 unless the
commissioner determines that sufficient funds are available.
Subd. 5. Grant
limit. The maximum grant
amount for a project is $400,000.
Subd. 6. Allocation. The commissioner shall allocate grant
funds under subdivision 8 to project applications based on a first-come,
first-served basis, determined on the basis of the commissioner's receipt of a
complete application for the project, including the provision of all of the
required information. The agreement must
specify the amount of grant funds available to the employer for each year
covered by the agreement.
Subd. 7. Application
fee. The commissioner may
charge each employer an application fee to cover part or all of the
administrative and legal costs incurred, not to exceed $500 per employer. The fee is deemed approved under section
16A.1283. The fee is deposited in the
metropolitan jobs training account in the special revenue fund and amounts in
the account are appropriated to the commissioner for the costs of administering
the program. The commissioner shall
refund the fee to the employer if the application is denied because program
funding is unavailable.
Subd. 8. Grants;
recovery of program costs. Amounts
paid by employers for program costs are repaid by a metropolitan job training grant
equal to the lesser of the following:
(1) the amount of program costs
specified in the agreement for the project; or
(2) the amount of program costs paid by
the employer for new employees under a project.
Subd. 9. Reports. (a) By February 1, 2022, and each
February 1 thereafter, the commissioner shall report to the governor and the
legislature on the program. The report
must include at least:
(1) the amount of grants issued under
the program;
(2) the number of individuals receiving
training under the program, including the number of new hires who are
individuals with disabilities;
(3) the number of new hires
attributable to the program, including the number of new hires who are
individuals with disabilities;
(4) an analysis of the effectiveness of
the grant in encouraging employment; and
(5) any other information the
commissioner determines appropriate.
(b) The report to the legislature must
be distributed as provided in section 3.195.
Sec. 8. [116L.9761]
MINNESOTA CALL CENTER JOBS ACT.
Sections 116L.9762 to 116L.9766 shall
be known as the "Minnesota Call Center Jobs Act."
EFFECTIVE
DATE. This section is
effective 180 days after final enactment
Sec. 9. [116L.9762]
DEFINITIONS.
Subdivision 1. Application. For the purposes of sections 116L.9762
to 116L.9766, the terms defined in this section have the meanings given them.
Subd. 2. Agency. "Agency" means a state
department under section 15.01.
Subd. 3. Business
entity. "Business
entity" means any organization, corporation, trust, partnership, sole
proprietorship, unincorporated association, or venture established to make a
profit, in whole or in part, by purposefully availing itself of the privilege
of conducting commerce in Minnesota.
Subd. 4. Call
center. "Call
center" means a facility or other operation with employees who receive
incoming telephone calls, email, or other electronic communications for the
purpose of providing customer assistance or other service.
Subd. 5. Commissioner. "Commissioner" means the
commissioner of employment and economic development.
Subd. 6. Employer. "Employer" means a business
enterprise that employs, for the purpose of customer service or back-office
operations:
(1) 50 or more employees, excluding
part-time employees; or
(2) 50 or more employees who, in the
aggregate, work at least 1,500 hours per week, exclusive of hours of overtime.
Subd. 7. Part-time
employee. "Part-time
employee" means an employee who is employed for an average of fewer than
20 hours per week or who has been employed for fewer than six of the 12 months
preceding the date on which notice is required under section 116L.9763.
Subd. 8. Relocating;
relocation. "Relocating"
or "relocation" means the closure of a call center, the cessation of
operations of a call center, or one or more facilities or operating units
within a call center comprising at least 30 percent of the call center's
or operating unit's total volume when measured against the previous 12-month
average call volume of operations or substantially similar operations, to a
location outside of the United States.
EFFECTIVE
DATE. This section is
effective 180 days after final enactment
Sec. 10. [116L.9763]
CALL CENTER RELOCATIONS.
(a) An employer must notify the
commissioner if it intends to relocate from Minnesota to a foreign country
either of the following:
(1) a call center; or
(2) one or more facilities or operating
units within a call center that comprise at least 30 percent of the call
center's or operating unit's total volume when measured against the previous
12-month average call volume of operations or substantially similar operations.
(b) The notification required under
paragraph (a) must be given at least 120 days before the relocation is to
occur.
(c) An employer that violates paragraph
(a) is subject to a civil penalty not to exceed $10,000 for each day of the
violation, except that the commissioner may reduce the amount for just cause
shown.
(d) The commissioner shall compile a
semiannual list of all employers that relocate a call center, or one or more
facilities or operating units within a call center comprising at least 30
percent of the call center's total volume of operations, from the United States
to a foreign country, and distribute the list to all agencies.
EFFECTIVE
DATE. This section is
effective 180 days after final enactment
Sec. 11. [116L.9764]
GRANTS; LOANS; SUBSIDIES.
(a) Except as provided in paragraph (b)
and notwithstanding any other provision of law, an employer that appears on the
list prepared under section 116L.9763 shall be ineligible for any direct or
indirect state grants or state guaranteed loans for five years after the date
the employer is placed on the list.
(b) Except as provided in paragraph (c)
and notwithstanding any other provision of law, an employer that appears on the
list prepared under section 116L.9763 shall remit to the commissioner of
management and budget the unamortized value of any grants, guaranteed loans,
tax benefits, or other governmental support it has previously received.
(c) The commissioner of management and
budget, in consultation with the commissioner of the agency providing or
administering the public subsidy, may waive the ineligibility requirement under
paragraph (a) if the employer applying for the loan or grant demonstrates that
not having the loan or grant would threaten national security, result in
substantial job loss in Minnesota, or harm the environment.
EFFECTIVE
DATE. This section is
effective 180 days after final enactment
Sec. 12. [116L.9765]
PROCUREMENT.
The commissioner of each agency shall
ensure that all state business related call center and customer service work be
performed by state contractors or their agents or subcontractors entirely
within Minnesota. State contractors who
currently perform work outside Minnesota shall have two years following the
effective date of this act to comply with this section. Any new call center or customer service
employees hired by the contractor during the compliance period under this
section must be employed in Minnesota.
EFFECTIVE
DATE. This section is
effective 180 days after final enactment
Sec. 13. [116L.9766]
EMPLOYEE BENEFITS.
Nothing in sections 116L.9762 to
116L.9766 shall be construed to permit the withholding or denial of payments,
compensation, or benefits under any other state law, including state
unemployment compensation, disability payments, or worker retraining or
readjustment funds, to employees of employers that relocate to a foreign
country.
EFFECTIVE
DATE. This section is
effective 180 days after final enactment
Sec. 14. Laws 2017, chapter 94, article 1, section 2, subdivision 3, is amended to read:
Subd. 3. Workforce
Development |
|
$31,498,000 |
|
$30,231,000 |
Appropriations by Fund |
||
General |
$6,239,000 |
$5,889,000 |
Workforce Development |
$25,259,000 |
$24,342,000 |
(a) $500,000 each year is for the youth-at-work competitive grant program under Minnesota Statutes, section 116L.562. Of this amount, up to five percent is for administration and monitoring of the youth workforce development competitive grant program. All
grant awards shall be for two consecutive years. Grants shall be awarded in the first year. In fiscal year 2020 and beyond, the base amount is $750,000.
(b) $250,000 each year is for pilot programs in the workforce service areas to combine career and higher education advising.
(c) $500,000 each year is for rural career counseling coordinator positions in the workforce service areas and for the purposes specified in Minnesota Statutes, section 116L.667. The commissioner of employment and economic development, in consultation with local workforce investment boards and local elected officials in each of the service areas receiving funds, shall develop a method of distributing funds to provide equitable services across workforce service areas.
(d) $1,000,000 each year is for a grant to the Construction Careers Foundation for the construction career pathway initiative to provide year-round educational and experiential learning opportunities for teens and young adults under the age of 21 that lead to careers in the construction industry. This is a onetime appropriation. Grant funds must be used to:
(1) increase construction industry exposure activities for middle school and high school youth, parents, and counselors to reach a more diverse demographic and broader statewide audience. This requirement includes, but is not limited to, an expansion of programs to provide experience in different crafts to youth and young adults throughout the state;
(2) increase the number of high schools in Minnesota offering construction classes during the academic year that utilize a multicraft curriculum;
(3) increase the number of summer internship opportunities;
(4) enhance activities to support graduating seniors in their efforts to obtain employment in the construction industry;
(5) increase the number of young adults employed in the construction industry and ensure that they reflect Minnesota's diverse workforce; and
(6) enhance an industrywide marketing campaign targeted to youth and young adults about the depth and breadth of careers within the construction industry.
Programs and services supported by grant funds must give priority to individuals and groups that are economically disadvantaged or historically underrepresented in the construction industry, including but not limited to women, veterans, and members of minority and immigrant groups.
(e) $1,539,000 each year from the general fund and $4,604,000 each year from the workforce development fund are for the Pathways to Prosperity adult workforce development competitive grant program. Of this amount, up to four percent is for administration and monitoring of the program. When awarding grants under this paragraph, the commissioner of employment and economic development may give preference to any previous grantee with demonstrated success in job training and placement for hard-to-train individuals. In fiscal year 2020 and beyond, the general fund base amount for this program is $4,039,000.
(f) $750,000 each year is for a competitive grant program to provide grants to organizations that provide support services for individuals, such as job training, employment preparation, internships, job assistance to fathers, financial literacy, academic and behavioral interventions for low-performing students, and youth intervention. Grants made under this section must focus on low-income communities, young adults from families with a history of intergenerational poverty, and communities of color. Of this amount, up to four percent is for administration and monitoring of the program. In fiscal year 2020 and beyond, the base amount is $1,000,000.
(g) $500,000 each year is for the women and high-wage, high‑demand, nontraditional jobs grant program under Minnesota Statutes, section 116L.99. Of this amount, up to five percent is for administration and monitoring of the program. In fiscal year 2020 and beyond, the base amount is $750,000.
(h) $500,000 each year is for a competitive grant program for grants to organizations providing services to relieve economic disparities in the Southeast Asian community through workforce recruitment, development, job creation, assistance of smaller organizations to increase capacity, and outreach. Of this amount, up to five percent is for administration and monitoring of the program. In fiscal year 2020 and beyond, the base amount is $1,000,000.
(i) $250,000 each year is for a grant to the American Indian Opportunities and Industrialization Center, in collaboration with the Northwest Indian Community Development Center, to reduce academic disparities for American Indian students and adults. This is a onetime appropriation. The grant funds may be used to provide:
(1) student tutoring and testing support services;
(2) training in information technology;
(3) assistance in obtaining a GED;
(4) remedial training leading to enrollment in a postsecondary higher education institution;
(5) real-time work
experience in information technology fields; and
(6) contextualized adult basic education.
After notification to the legislature, the commissioner may transfer this appropriation to the commissioner of education.
(j) $100,000 each year is for the getting to work grant program. This is a onetime appropriation and is available until June 30, 2021.
(k) $525,000 each year is from the workforce development fund for a grant to the YWCA of Minneapolis to provide economically challenged individuals the job skills training, career counseling, and job placement assistance necessary to secure a child development associate credential and to have a career path in early childhood education. This is a onetime appropriation.
(l) $1,350,000 each year is from the workforce development fund for a grant to the Minnesota High Tech Association to support SciTechsperience, a program that supports science, technology, engineering, and math (STEM) internship opportunities for two- and four-year college students and graduate students in their field of study. The internship opportunities must match students with paid internships within STEM disciplines at small, for-profit companies located in Minnesota, having fewer than 250 employees worldwide. At least 300 students must be matched in the first year and at least 350 students must be matched in the second year. No more than 15 percent of the hires may be graduate students. Selected hiring companies shall receive from the grant 50 percent of the wages paid to the intern, capped at $2,500 per intern. The program must work toward increasing the participation of women or other underserved populations. This is a onetime appropriation.
(m) $450,000 each year is from the workforce development fund for grants to Minnesota Diversified Industries, Inc. to provide progressive development and employment opportunities for people with disabilities. This is a onetime appropriation.
(n) $500,000 each year is from the workforce development fund for a grant to Resource, Inc. to provide low-income individuals career education and job skills training that are fully integrated with chemical and mental health services. This is a onetime appropriation.
(o) $750,000 each year is from the workforce development fund for a grant to the Minnesota Alliance of Boys and Girls Clubs to administer a statewide project of youth job skills and career development. This project, which may have career guidance
components including health and life skills, is designed to encourage, train, and assist youth in early access to education and job-seeking skills, work-based learning experience including career pathways in STEM learning, career exploration and matching, and first job placement through local community partnerships and on-site job opportunities. This grant requires a 25 percent match from nonstate resources. This is a onetime appropriation.
(p) $215,000 each year is from the workforce development fund for grants to Big Brothers, Big Sisters of the Greater Twin Cities for workforce readiness, employment exploration, and skills development for youth ages 12 to 21. The grant must serve youth in the Twin Cities, Central Minnesota, and Southern Minnesota Big Brothers, Big Sisters chapters. This is a onetime appropriation.
(q) $250,000 each year is from the workforce development fund for a grant to YWCA St. Paul to provide job training services and workforce development programs and services, including job skills training and counseling. This is a onetime appropriation.
(r) $1,000,000 each year is from the workforce development fund for a grant to EMERGE Community Development, in collaboration with community partners, for services targeting Minnesota communities with the highest concentrations of African and African-American joblessness, based on the most recent census tract data, to provide employment readiness training, credentialed training placement, job placement and retention services, supportive services for hard-to-employ individuals, and a general education development fast track and adult diploma program. This is a onetime appropriation.
(s) $1,000,000 each year is from the workforce development fund for a grant to the Minneapolis Foundation for a strategic intervention program designed to target and connect program participants to meaningful, sustainable living-wage employment. This is a onetime appropriation.
(t) $750,000 each year is from the workforce development fund for a grant to Latino Communities United in Service (CLUES) to expand culturally tailored programs that address employment and education skill gaps for working parents and underserved youth by providing new job skills training to stimulate higher wages for low-income people, family support systems designed to reduce intergenerational poverty, and youth programming to promote educational advancement and career pathways. At least 50 percent of this amount must be used for programming targeted at greater Minnesota. This is a onetime appropriation.
(u) $600,000 each year is from the workforce development fund for a grant to Ujamaa Place for job training, employment preparation, internships, education, training in the construction trades, housing, and organizational capacity building. This is a onetime appropriation.
(v) $1,297,000 in the first year and $800,000 in the second year are from the workforce development fund for performance grants under Minnesota Statutes, section 116J.8747, to Twin Cities R!SE to provide training to hard-to-train individuals. Of the amounts appropriated, $497,000 in fiscal year 2018 is for a grant to Twin Cities R!SE, in collaboration with Metro Transit and Hennepin Technical College for the Metro Transit technician training program. This is a onetime appropriation and funds are available until June 30, 2020.
(w) $230,000 in fiscal year 2018 is from the workforce
development fund for a grant to the Bois Forte Tribal Employment Rights Office
(TERO) for an American Indian workforce development training pilot project. This is a onetime appropriation and is
available until June 30, 2019. Funds
appropriated the first year are available for use in the second year of the
biennium.
(x) $40,000 in fiscal year 2018 is from the workforce development fund for a grant to the Cook County Higher Education Board to provide educational programming and academic support services to remote regions in northeastern Minnesota. This appropriation is in addition to other funds previously appropriated to the board.
(y) $250,000 each year is from the workforce development fund for a grant to Bridges to Healthcare to provide career education, wraparound support services, and job skills training in high‑demand health care fields to low-income parents, nonnative speakers of English, and other hard-to-train individuals, helping families build secure pathways out of poverty while also addressing worker shortages in one of Minnesota's most innovative industries. Funds may be used for program expenses, including, but not limited to, hiring instructors and navigators; space rental; and supportive services to help participants attend classes, including assistance with course fees, child care, transportation, and safe and stable housing. In addition, up to five percent of grant funds may be used for Bridges to Healthcare's administrative costs. This is a onetime appropriation and is available until June 30, 2020.
(z) $500,000 each year is from the workforce development fund for a grant to the Nonprofits Assistance Fund to provide capacity‑building grants to small, culturally specific organizations that primarily serve historically underserved cultural communities. Grants may only be awarded to nonprofit organizations that have an annual organizational budget of less than $500,000 and are
culturally specific organizations that primarily serve historically underserved cultural communities. Grant funds awarded must be used for:
(1) organizational infrastructure improvement, including developing database management systems and financial systems, or other administrative needs that increase the organization's ability to access new funding sources;
(2) organizational workforce development, including hiring culturally competent staff, training and skills development, and other methods of increasing staff capacity; or
(3) creation or expansion of partnerships with existing organizations that have specialized expertise in order to increase the capacity of the grantee organization to improve services for the community. Of this amount, up to five percent may be used by the Nonprofits Assistance Fund for administration costs and providing technical assistance to potential grantees. This is a onetime appropriation.
(aa) $4,050,000 each year is from the workforce development fund for the Minnesota youth program under Minnesota Statutes, sections 116L.56 and 116L.561.
(bb) $1,000,000 each year is from the workforce development fund for the youthbuild program under Minnesota Statutes, sections 116L.361 to 116L.366.
(cc) $3,348,000 each year is from the workforce development fund for the "Youth at Work" youth workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the youth workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.
(dd) $500,000 each year is from the workforce development fund for the Opportunities Industrialization Center programs.
(ee) $750,000 each year is from the workforce development fund for a grant to Summit Academy OIC to expand its contextualized GED and employment placement program. This is a onetime appropriation.
(ff) $500,000 each year is from the workforce development fund for a grant to Goodwill-Easter Seals Minnesota and its partners. The grant shall be used to continue the FATHER Project in Rochester, Park Rapids, St. Cloud, Minneapolis, and the surrounding areas to assist fathers in overcoming barriers that prevent fathers from supporting their children economically and emotionally. This is a onetime appropriation.
(gg) $150,000 each year is from the workforce development fund for displaced homemaker programs under Minnesota Statutes, section 116L.96. The commissioner shall distribute the funds to existing nonprofit and state displaced homemaker programs. This is a onetime appropriation.
(hh)(1) $150,000 in fiscal year 2018 is from the workforce development fund for a grant to Anoka County to develop and implement a pilot program to increase competitive employment opportunities for transition-age youth ages 18 to 21.
(2) The competitive employment for transition-age youth pilot program shall include career guidance components, including health and life skills, to encourage, train, and assist transition-age youth in job-seeking skills, workplace orientation, and job site knowledge.
(3) In operating the pilot program, Anoka County shall collaborate with schools, disability providers, jobs and training organizations, vocational rehabilitation providers, and employers to build upon opportunities and services, to prepare transition-age youth for competitive employment, and to enhance employer connections that lead to employment for the individuals served.
(4) Grant funds may be used to create an on-the-job training incentive to encourage employers to hire and train qualifying individuals. A participating employer may receive up to 50 percent of the wages paid to the employee as a cost reimbursement for on-the-job training provided.
(ii) $500,000 each year is from the workforce development fund for rural career counseling coordinator positions in the workforce service areas and for the purposes specified in Minnesota Statutes, section 116L.667. The commissioner of employment and economic development, in consultation with local workforce investment boards and local elected officials in each of the service areas receiving funds, shall develop a method of distributing funds to provide equitable services across workforce service areas.
(jj) In calendar year 2017, the public utility subject to Minnesota Statutes, section 116C.779, must withhold $1,000,000 from the funds required to fulfill its financial commitments under Minnesota Statutes, section 116C.779, subdivision 1, and pay such amounts to the commissioner of employment and economic development for deposit in the Minnesota 21st century fund under Minnesota Statutes, section 116J.423.
(kk) $350,000 in fiscal year 2018 is for a grant to AccessAbility Incorporated to provide job skills training to individuals who have been released from incarceration for a felony-level offense and are no more than 12 months from the date of release. AccessAbility
Incorporated shall annually report to the commissioner on how the money was spent and the results achieved. The report must include, at a minimum, information and data about the number of participants; participant homelessness, employment, recidivism, and child support compliance; and training provided to program participants.
EFFECTIVE
DATE. This section is
effective retroactively from July 1, 2017.
Sec. 15. PLAN
TO ADDRESS BARRIERS TO EMPLOYMENT.
The commissioner of employment and
economic development must consult with the commissioners of health and human
services and stakeholders in order to identify the barriers that people with
mental illness face in obtaining employment and all current programs that
assist people with mental illness in obtaining employment. Stakeholders shall include people with mental
illness and their families, mental health advocates, mental health providers,
and employers. The commissioner of
employment and economic development shall submit a detailed plan to the
legislative committees with jurisdiction over employment and human services
before February 1, 2020, identifying the barriers to employment and making
recommendations on how to best improve the employment rate among people with
mental illness.
Sec. 16. INNOVATIONS
IN SPECIAL EDUCATION EMPLOYMENT (ISEE) PILOT PROJECT.
Subdivision 1. Definitions. (a) For the purposes of this section,
the terms in this subdivision have the meanings given.
(b) "Commissioner" means the
commissioner of employment and economic development.
(c) "Eligible provider" means
an organization currently eligible to provide services through the extended
employment program under Minnesota Statutes, section 268A.15.
(d) "Eligible student" means:
(1) a student receiving special
instruction under Minnesota Statutes, section 125A.03, who has completed at
least three years of high school; or
(2) an individual under the age of 25
who has graduated from secondary school after receiving special instruction
under Minnesota Statutes, section 125A.03, but has not had competitive wage
employment in an integrated community setting.
(e) "Pilot" means the
innovations in special education employment (ISEE) pilot project established
under this section.
Subd. 2. Establishment. The commissioner shall establish an
innovations in special education employment (ISEE) pilot project designed to
transition special education graduates into competitive wage employment in
integrated community settings.
Subd. 3. Services. Eligible providers wishing to
participate in the pilot must notify the commissioner, on a form designated by
the commissioner, of the intent to provide an eligible student with one of the
following services:
(1) comprehensive job preparation
training that must provide an eligible student with at least 20 hours in a
classroom setting, resume preparation, and assistance in establishing a bank
account;
(2)
job shadowing experiences where eligible students can observe at least 30 hours
of workplace activity for a job similar to one the eligible student might be
hired for. Eligible providers shall
facilitate transportation to and from the workplace for the eligible student;
and
(3) employment placement services to
match eligible students with appropriate employment paying at least the minimum
wage in an integrated community setting.
Eligible providers shall support such placements with training for the
employer and the eligible student, both before and after hiring, to foster
success.
Subd. 4. Payments. Eligible providers may apply to the
commissioner, on a form designated by the commissioner, for the following
payments for performance:
(1) $1,000 for each eligible student
certified to have completed the services under subdivision 3, clause (1);
(2) $1,000 for each eligible student
certified to have completed the services under subdivision 3, clause (2); and
(3) $3,000 for each eligible student
certified to have completed 90 days of employment after receiving the services
under subdivision 3, clause (3).
Subd. 5. Forms. By October 1, 2019, the commissioner
must make available the forms necessary for eligible providers to participate
in the pilot. These must include:
(1)
a form to notify the commissioner of the intent to provide an eligible student
with a service under subdivision 3; and
(2) a form to certify to the
commissioner that an eligible student from clause (1) was provided the service
under subdivision 3, and to apply for payment for performance of that service
under subdivision 4.
Sec. 17. MINNESOTA
INNOVATION COLLABORATIVE.
Subdivision 1. Establishment. The Minnesota Innovation Collaborative
is established within the Business and Community Development Division of the
Department of Employment and Economic Development to encourage and support the
development of new private sector technologies and support the science and technology
policies under Minnesota Statutes, section 3.222. The Minnesota Innovation Collaborative must
provide entrepreneurs and emerging technology-based companies business
development assistance and financial assistance to spur growth.
Subd. 2. Definitions. (a) For purposes of this section, the
terms defined in this subdivision have the meanings given.
(b) "Advisory board" means
the board established under subdivision 11.
(c) "Commissioner" means the
commissioner of employment and economic development.
(d) "Department" means the
Department of Employment and Economic Development.
(e) "Entrepreneur" means a
Minnesota resident who is involved in establishing a business entity and
secures resources directed to its growth while bearing the risk of loss.
(f) "Greater Minnesota" means
the area of Minnesota located outside of the metropolitan area as defined in
section 473.121, subdivision 2.
(g)
"High technology" includes aerospace, agricultural processing,
renewable energy, energy efficiency and conservation, environmental
engineering, food technology, cellulosic ethanol, information technology,
materials science technology, nanotechnology, telecommunications,
biotechnology, medical device products, pharmaceuticals, diagnostics,
biologicals, chemistry, veterinary science, and similar fields.
(h)
"Institution of higher education" has the meaning given in Minnesota
Statutes, section 136A.28, subdivision 6.
(i) "Minority group member"
means a United States citizen who is Asian, Pacific Islander, Black, Hispanic,
or Native American.
(j) "Minority-owned business"
means a business for which one or more minority group members:
(1) own at least 50 percent of the
business or, in the case of a publicly owned business, own at least 51 percent
of the stock; and
(2) manage the business and control the
daily business operations.
(k) "Research and development" means any activity that is:
(1) a systematic, intensive study directed toward greater knowledge or understanding of the subject studies;
(2) a systematic study directed specifically toward applying new knowledge to meet a recognized need; or
(3) a systematic application of
knowledge toward the production of useful materials, devices, systems and
methods, including design, development and improvement of prototypes and new
processes to meet specific requirements.
(l) "Start-up" means a
business entity that has been in operation for less than ten years, has
operations in Minnesota, and is in the development stage defined as devoting
substantially all of its efforts to establishing a new business and either of
the following conditions exists:
(1) planned principal operations have not commenced; or
(2) planned principal operations have
commenced, but have generated less than $1,000,000 in revenue.
(m) "Technology-related
assistance" means the application and utilization of
technological-information and technologies to assist in the development and
production of new technology-related products or services or to increase the
productivity or otherwise enhance the production or delivery of existing
products or services.
(n) "Trade association" means
a nonprofit membership organization organized to promote businesses and
business conditions and having an election under Internal Revenue Code section
501(c)(3) or 501(c)(6).
(o) "Women" means persons of
the female gender.
(p) "Women-owned business"
means a business for which one or more women:
(1) own at least 50 percent of the business or, in the case of a publicly owned business, own at least 51 percent of the stock; and
(2) manage the business and control the
daily business operations.
Subd. 3. Duties. The Minnesota Innovation Collaborative
shall:
(1) support innovation and initiatives designed to accelerate the growth of high-technology start-ups in Minnesota;
(2) offer classes and instructional sessions on how to start a high-tech and innovative start-up;
(3) promote activities for entrepreneurs and investors regarding the state's growing innovation economy;
(4) hold events and meetings that gather key stakeholders in the state's innovation sector;
(5) conduct outreach and education on innovation activities and related financial programs available from the department and other organizations, particularly for underserved communities;
(6) interact and collaborate with statewide partners including but not limited to businesses, nonprofits, trade associations, and higher education institutions;
(7) administer an advisory board to assist with direction, grant application review, program evaluation, report development, and partnerships;
(8) commission research in partnership with the University of Minnesota and Minnesota State Colleges and Universities to study innovation and its impacts on the state's economy with emphasis on the state's labor market;
(9) accept grant applications under
subdivisions 5 and 6 and work with the advisory board to evaluate the
applications and provide funding recommendations to the commissioner; and
(10) perform other duties at the
commissioner's discretion.
Subd. 4. Administration. (a) The department shall employ an
executive director in the unclassified service.
The executive director shall:
(1) hire no more than two staff;
(2) assist the commissioner and the
advisory board in performing the duties of the Minnesota Innovation
Collaborative; and
(3) comply with all state and federal
program requirements, and all state and federal securities and tax laws and
regulations.
(b) To the extent possible, the space
that the Minnesota Innovation Collaborative shall occupy and lease must be a
private coworking facility that includes office space for staff and space for
community engagement for training entrepreneurs. The space leased under this paragraph is
exempt from the requirements in Minnesota Statutes, section 16B.24, subdivision
6.
(c) Except for grants under subdivision
7, the Minnesota Innovation Collaborative must accept grant applications under
this section and provide funding recommendations to the commissioner, who shall
distribute grants based in part on the recommendations.
Subd. 5. Application
process. (a) The commissioner
shall establish the application form and procedures for innovation grants.
(b)
Upon receiving recommendations from the Minnesota Innovation Collaborative
under subdivision 4, paragraph (c), the department is responsible for
evaluating all applications using evaluation criteria developed by the
Minnesota Innovation Collaborative, the advisory board, and the commissioner. Priority shall be given if the applicant is:
(1) a business or entrepreneur located
in greater Minnesota; or
(2) a business owner or entrepreneur who
is a woman or minority group member.
(c) The department staff, and not the
Minnesota Innovation Collaborative staff, is responsible for awarding funding,
disbursing funds, and monitoring grantee performance for all grants awarded
under this section.
(d) Grantees must provide matching funds
by equal expenditures and grant payments must be provided on a reimbursement
basis after review of submitted receipts by the department.
(e) Grant applications must be accepted
on a regular periodic basis by the Minnesota Innovation Collaborative and must
be reviewed by the collaborative and the advisory board before being submitted
to the commissioner with their recommendations.
Subd. 6. Innovation
grants. (a) The commissioner
shall distribute innovation grants under this subdivision.
(b) The commissioner shall provide a
grant of up to $50,000 to an eligible business or entrepreneur for research and
development expenses. Research and
development expenditures may be related but not limited to proof of concept
activities, intellectual property protection, prototype designs and production,
and commercial feasibility. Expenditures
funded under this subdivision are not eligible for the research and development
tax credit under Minnesota Statutes, section 290.068. Each business or entrepreneur may receive
only one grant under this paragraph.
(c) The commissioner shall provide a
grant of up to $25,000 to an eligible start-up or entrepreneur for direct
business expenses including but not limited to rent, equipment purchases,
supplier invoices, and staffing. Taxes
imposed by the federal, state, or local government entities may be not be
reimbursed under this paragraph. Each
start-up or entrepreneur may receive only one grant under this paragraph.
(d) The commissioner shall provide a
grant of up to $7,500 to reimburse an entrepreneur for health care, housing, or
child care expenses for the entrepreneur, spouse, or children 26 years of age
or younger. Each entrepreneur may
receive only one grant under this paragraph.
(e) The commissioner shall provide a
grant of up to $50,000 to an eligible business or entrepreneur that, as a
registered client of the Small Business Innovation Research (SBIR) program, has
been awarded a Phase 2 award pursuant to the SBIR or Small Business Technology
Transfer (STTR) programs after July 1, 2019.
Each business or entrepreneur may receive only one grant under this
paragraph. Grants under this paragraph
are not subject to the requirements of subdivision 2, paragraph (l), and are
awarded without the review or recommendation of the Minnesota Innovation
Collaborative.
(f) The commissioner shall provide a
grant of up to $25,000 to provide financing to start-ups to purchase technical
assistance and services from public higher education institutions and nonprofit
entities to assist in the development or commercialization of innovative new
products or services.
Subd. 7. Entrepreneur education grants. (a) The commissioner shall make entrepreneur education grants to institutions of higher education and other organizations to provide educational programming to entrepreneurs and provide outreach to and collaboration with businesses, federal and state agencies, institutions of higher education, trade associations, and other organizations working to advance innovative, high technology businesses throughout Minnesota.
(b)
Applications for entrepreneur education grants under this subdivision must be
submitted to the commissioner and evaluated by department staff other than the
Minnesota Innovation Collaborative. The
evaluation criteria must be developed by the Minnesota Innovation
Collaborative, the advisory board, and the commissioner with priority given to
an applicant who demonstrates activity assisting businesses or entrepreneurs
residing in greater Minnesota or who are women or minority group members.
(c) Department staff other than the
Minnesota Innovation Collaborative staff is responsible for awarding funding,
disbursing funds, and monitoring grantee performance under this subdivision.
(d) Grantees may use the grant funds to deliver the following services:
(1) development and delivery to high
technology businesses of industry specific or innovative product or process
specific counseling on issues of business formation, market structure, market
research and strategies, securing first mover advantage or overcoming barriers
to entry, protecting intellectual property, and securing debt or equity capital.
This counseling is to be delivered in a
classroom setting or using distance media presentations;
(2) outreach and education to businesses
and organizations on the small business investment tax credit program under
Minnesota Statutes, section 116J.8737, the MNvest crowd-funding program under
Minnesota Statutes, section 80A.461, and other state programs that support high
technology business creation especially in underserved communities;
(3) collaboration with institutions of
higher education, local organizations, federal and state agencies, the Small
Business Development Center, and the Small Business Assistance Office to create
and offer educational programming and ongoing counseling in greater Minnesota
that is consistent with those services offered in the metropolitan area; and
(4) events and meetings with other
innovation-related organizations to inform entrepreneurs and potential
investors about Minnesota's growing information economy.
Subd. 8. Report. The Minnesota Innovation Collaborative
shall report by February 1, 2020, and again on February 1, 2021, to the chairs
and ranking minority members of the committees of the house of representatives
and senate having jurisdiction over economic development policy and finance
issues on the work completed, including awards made by the department under
this section.
Subd. 9. Advisory board. (a) The commissioner shall establish an advisory board to advise the executive director regarding the activities of the Minnesota Innovation Collaborative and to perform the recommendations described in this section.
(b) The advisory board shall consist of
ten members and is governed by Minnesota Statutes, section 15.059. A minimum of six members must be from the
private sector representing business and at least two members but no more than
four members from government and higher education. Appointees shall represent a range of
interests, including entrepreneurs, large businesses, industry organizations,
investors, and both public and private small business service providers.
(c) The advisory board shall select a chair from its private sector members. The executive director shall provide administrative support to the committee.
Sec. 18. CHILD
CARE ECONOMIC DEVELOPMENT GRANT PROGRAM.
Subdivision 1. Establishment. A grant program is established under
the Department of Employment and Economic Development to award grants to
eligible local communities to increase the availability of child care in order
to reduce the child care shortage in the community, and support increased
workforce participation, business expansion and retention, and new business
location.
Subd. 2. Definitions. For the purposes of this section, the
following terms have the meanings given them:
(1) "commissioner" means the
commissioner of employment and economic development;
(2) "child care" has the
meaning given in section 119B.011;
(3) "political subdivision"
means a county, statutory or home rule charter city, or school district; and
(4) "Indian tribe" means one
of the federally recognized Minnesota tribes listed in section 3.922,
subdivision 1, clause (1).
Subd. 3. Eligible
expenditures. The
commissioner may make grants under this section to implement solutions to
reduce the child care shortage in the state including but not limited to
funding for child care business start-ups or expansions, training, facility
modifications or improvements required for licensing, and assistance with
licensing and other regulatory requirements.
Subd. 4. Eligible
applicants. Eligible
applicants for grants awarded under this section include:
(1) a political subdivision;
(2) an Indian tribe;
(3) a Minnesota nonprofit organization
organized under chapter 317 having experience in one or more of the following: the operation of, planning for, financing of,
advocacy for, or advancement of the delivery of child care services in a
defined service area spanning the boundaries of one or more political
subdivisions.
Subd. 5. Application process. (a) An eligible applicant must submit an application to the commissioner on a form prescribed by the commissioner. The commissioner shall develop procedures governing the application and grant award process. The commissioner shall act as fiscal agent for the grant program and shall be responsible for receiving and reviewing grant applications and awarding grants under this section.
(b) At least 30 days prior to the first
day applications may be submitted each fiscal year, the commissioner must
publish on the department's website the specific criteria and any quantitative
weighting scheme or scoring system the commissioner will use to evaluate or
rank applications and award grants under subdivision 6.
Subd. 6. Application
contents. An applicant for a
grant under this section shall provide the following information on the
application:
(1) the service area of the project;
(2) the project budget;
(3) evidence of the child care shortage
in the community in which the project is to be located;
(4) the number of licensed child care
slots that will be created as a result of the project;
(5) the number of families with
children under age six that will have access to child care as a result of the
project;
(6) community employers and businesses
that will benefit from the proposed project;
(7)
evidence of community support for the project;
(8) the total cost of the project;
(9) sources of funding or in-kind
contributions for the project that will supplement any grant award; and
(10) any additional information
requested by the commissioner.
Subd. 7. Awarding
grants. (a) In evaluating
applications and awarding grants, the commissioner may give priority to
applications that:
(1) are in areas that have a documented
shortage of affordable quality child care;
(2) demonstrate programmatic or
financial collaborations and partnering among private sector employers, public
and nonprofit organizations within geographic areas;
(3) serve areas of the state
experiencing worker shortages, low prime age workforce participation rates, or
prime age worker population loss that is significantly greater than the
statewide average;
(4) provide evidence of strong support
for the project from citizens, government, businesses, and institutions in the
community;
(5) leverage greater amounts of funding
for the project from private and nonstate public sources.
(b) The commissioner shall endeavor to
award grants under this section to qualified applicants in all regions of the
state.
Subd. 8. Limitation. (a) No grant awarded under this
section may fund more than 50 percent of the total cost of a project.
(b) Grants awarded to a single project
under this section must not exceed $100,000.
Sec. 19. COMMUNITY
PROSPERITY GRANT PROGRAM.
Subdivision 1. Establishment;
purpose. The community
prosperity grant program is established to provide grants to public or
501(c)(3) nonprofit entities to implement innovative economic development
projects that will support economic growth in their community.
Subd. 2. Definitions. For the purposes of this section, the
following terms have the meanings given them:
(1) "economic development"
means activities, services, investments, and infrastructure that support the
economic success of individuals, businesses, and communities by facilitating an
economic environment that produces net new jobs;
(2) "innovative project"
means the provision of a public service or good that was absent in the
community or of insufficient quantity or quality;
(3) "local governmental unit"
means a county, city, town, special district, public higher education institution,
or other political subdivision or public corporation; and
(4) "community" means any
geographic area defined by one or more census tracts.
Subd. 3. Community
prosperity grants. The
commissioner of employment and economic development shall:
(1) develop and implement a community
prosperity grant program that will provide matching grants up to 85 percent
of total project cost up to $100,000 to implement innovative economic
development projects that will induce economic growth in their community;
(2) develop a request for proposals;
(3) review responses to requests for
proposals and award grants under this section;
(4) establish a transparent and
objective accountability process focused on outcomes that grantees agree to
achieve; and
(5) maintain data on outcomes reported
by grantees.
Subd. 4. Eligible
grantees. Organizations
eligible to receive grant funding under this section include:
(1) local government units; and
(2) nonprofit 501(c)(3) organizations
that have established partnerships with one or more local government units to
implement economic development projects or activities.
Subd. 5. Priority
of proposals; grant awards. The
commissioner shall prioritize the award of grants to proposals that demonstrate
that the project:
(1) will serve communities with a
population of 5,000 or less;
(2) will support community groups or
neighborhood organizations within one of the 128 federally designated
opportunity zones;
(3) will support the economic success
of individuals, businesses, and communities by facilitating an economic
environment that produces net new jobs;
(4) will provide public services or
goods that was absent in the community or of insufficient quantity or quality;
(5) serves a defined geographic area;
racial, ethnic, or minority community; or American Indian community
experiencing any the following: below
state average wages, above state average unemployment rate, or below state
average labor force participation rate;
(6) will be sustainable or continue to
have impact beyond the one-time funding from this program;
(7) will be successfully implemented
based on the qualifications of the lead organization; and
(8) will serve two or more local
government units.
Subd. 6. Geographic
distribution of grants. The
commissioner shall ensure that a minimum of 50 percent of grants are awarded to
communities outside the seven-county metropolitan area.
Subd. 7. Report. Grantees must report grant program
outcomes to the commissioner on the forms and according to the timelines established
by the commissioner.
Sec. 20. ONETIME
EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA INVESTMENT FUND LOCAL GOVERNMENT
LOAN REPAYMENT FUNDS.
(a) Notwithstanding Minnesota Statutes,
section 116J.8731, a home rule charter or statutory city, county, or town that
has uncommitted money received from repayment of funds awarded under Minnesota
Statutes, section 116J.8731, may choose to transfer 20 percent of the balance
of that money to the state general fund before June 30, 2020. Any local entity that does so may then use
the remaining 80 percent of the uncommitted money as a general purpose aid for
any lawful expenditure.
(b) By February 15, 2021, a home rule
charter or statutory city, county, or town that exercises the option under
paragraph (a) shall submit to the chairs and ranking minority members of the
legislative committees with jurisdiction over economic development policy and
finance an accounting and explanation of the use and distribution of the funds.
ARTICLE 5
WAGE THEFT
Section 1. Minnesota Statutes 2018, section 16C.285, subdivision 3, is amended to read:
Subd. 3. Minimum criteria. "Responsible contractor" means a contractor that conforms to the responsibility requirements in the solicitation document for its portion of the work on the project and verifies that it meets the following minimum criteria:
(1) the contractor:
(i) is in compliance with workers' compensation and unemployment insurance requirements;
(ii) is in compliance with Department of Revenue and Department of Employment and Economic Development registration requirements if it has employees;
(iii) has a valid federal tax identification number or a valid Social Security number if an individual; and
(iv) has filed a certificate of authority to transact business in Minnesota with the secretary of state if a foreign corporation or cooperative;
(2) the contractor or related entity is in compliance with and, during the three-year period before submitting the verification, has not violated section 177.24, 177.25, 177.41 to 177.44, 181.03, 181.101, 181.13, 181.14, or 181.722, and has not violated United States Code, title 29, sections 201 to 219, or United States Code, title 40, sections 3141 to 3148. For purposes of this clause, a violation occurs when a contractor or related entity:
(i) repeatedly fails to pay statutorily required wages or penalties on one or more separate projects for a total underpayment of $25,000 or more within the three-year period, provided that a failure to pay is "repeated" only if it involves two or more separate and distinct occurrences of underpayment during the three-year period;
(ii) has been issued an order to comply by the commissioner of labor and industry that has become final;
(iii) has been issued at least two determination letters within the three-year period by the Department of Transportation finding an underpayment by the contractor or related entity to its own employees;
(iv) has been found by the commissioner of labor and industry to have repeatedly or willfully violated any of the sections referenced in this clause pursuant to section 177.27;
(v)
has been issued a ruling or findings of underpayment by the administrator of
the Wage and Hour Division of the United States Department of Labor that have
become final or have been upheld by an administrative law judge or the
Administrative Review Board; or
(vi) has been found liable for
underpayment of wages or penalties or misrepresenting a construction worker as
an independent contractor in an action brought in a court having jurisdiction;
or
(vii) has been convicted of a violation of section 609.52, subdivision 2, clause (19).
Provided that, if the contractor or related entity contests a determination of underpayment by the Department of Transportation in a contested case proceeding, a violation does not occur until the contested case proceeding has concluded with a determination that the contractor or related entity underpaid wages or penalties;
(3) the contractor or related entity is in compliance with and, during the three-year period before submitting the verification, has not violated section 181.723 or chapter 326B. For purposes of this clause, a violation occurs when a contractor or related entity has been issued a final administrative or licensing order;
(4) the contractor or related entity has not, more than twice during the three-year period before submitting the verification, had a certificate of compliance under section 363A.36 revoked or suspended based on the provisions of section 363A.36, with the revocation or suspension becoming final because it was upheld by the Office of Administrative Hearings or was not appealed to the office;
(5) the contractor or related entity has not received a final determination assessing a monetary sanction from the Department of Administration or Transportation for failure to meet targeted group business, disadvantaged business enterprise, or veteran-owned business goals, due to a lack of good faith effort, more than once during the three-year period before submitting the verification;
(6) the contractor or related entity is not currently suspended or debarred by the federal government or the state of Minnesota or any of its departments, commissions, agencies, or political subdivisions that have authority to debar a contractor; and
(7) all subcontractors and motor carriers that the contractor intends to use to perform project work have verified to the contractor through a signed statement under oath by an owner or officer that they meet the minimum criteria listed in clauses (1) to (6).
Any violations, suspensions, revocations, or sanctions, as defined in clauses (2) to (5), occurring prior to July 1, 2014, shall not be considered in determining whether a contractor or related entity meets the minimum criteria.
Sec. 2. Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to read:
Subd. 1a. Authority
to investigate. To carry out
the purposes of this chapter and chapters 181, 181A, and 184, and utilizing the
enforcement authority of section 175.20, the commissioner is authorized to
enter the places of business and employment of any employer in the state to
investigate wages, hours, and other conditions and practices of work, collect
evidence, and conduct interviews. The
commissioner is authorized to enter the places of business and employment
during working hours and without delay. The
commissioner may use investigation methods that include but are not limited to
examination, surveillance, transcription, copying, scanning, photographing,
audio or video recording, testing, and sampling along with taking custody of
evidence. Evidence that may be collected
includes but is not limited to documents, records, books, registers, payrolls,
electronically and digitally stored information, machinery, equipment, tools,
and other tangible items that in any way relate to wages,
hours,
and other conditions and practices of work.
The commissioner may privately interview any individual, including
owners, employers, operators, agents, workers, and other individuals who may
have knowledge of the conditions and practices of work under investigation.
Sec. 3. Minnesota Statutes 2018, section 177.27, subdivision 2, is amended to read:
Subd. 2. Submission of records; penalty. The commissioner may require the employer of employees working in the state to submit to the commissioner photocopies, certified copies, or, if necessary, the originals of employment records which the commissioner deems necessary or appropriate. The records which may be required include full and correct statements in writing, including sworn statements by the employer, containing information relating to wages, hours, names, addresses, and any other information pertaining to the employer's employees and the conditions of their employment as the commissioner deems necessary or appropriate.
The commissioner may require the records to be submitted by certified mail delivery or, if necessary, by personal delivery by the employer or a representative of the employer, as authorized by the employer in writing.
The commissioner may fine the employer up to $1,000 for each failure to submit or deliver records as required by this section, and up to $10,000 for each repeated failure. This penalty is in addition to any penalties provided under section 177.32, subdivision 1. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered.
Sec. 4. Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to read:
Subd. 11.
Subpoenas. In order to carry out the purposes of
this chapter and chapter 181, 181A, or 184, the commissioner may issue
subpoenas to compel persons to appear before the commissioner to give testimony
and produce and permit inspection, copying, testing, or sampling of documents,
electronically stored information, tangible items, or other items in the
possession, custody, or control of that person that are deemed necessary or
appropriate by the commissioner. A
subpoena may specify the form or format in which electronically stored
information is to be produced. Upon the
application of the commissioner, a district court shall treat the failure of
any person to obey a subpoena lawfully issued by the commissioner under this
subdivision as a contempt of court.
Sec. 5. Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to read:
Subd. 12.
Court orders for entrance and
inspection. To carry out the
purposes of this chapter and chapters 181, 181A, and 184, and utilizing the
enforcement authority of section 175.20, the commissioner is authorized to
enter places of business and employment of any employer in the state to
investigate wages, hours, and other conditions and practices of work, collect
evidence, and conduct interviews. The
commissioner is authorized to enter the places of business and employment
during working hours and without delay. Upon
the anticipated refusal based on a refusal to permit entrance on a prior occasion
or actual refusal of an employer, owner, operator, or agent in charge of an
employer's place of business or employment, the commissioner may apply for an
order in the district court in the county in which the place of business or
employment is located, to compel an employer, owner, operator, or agent in
charge of the place of business or employment to permit the commissioner entry
to investigate wages, hours, and other conditions and practices of work,
collect evidence, and interview witnesses.
Sec. 6. Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to read:
Subd. 13.
State licensing or regulatory
power. In the case of an
employer which is subject to the licensing or regulatory power of the state or
any political subdivision or agency thereof, if the commissioner issues an
order to comply under subdivision 4, the commissioner may provide the licensing
or regulatory agency a copy of the order to comply. Unless the order to comply is reversed in the
course of administrative or judicial review, the order to
comply
is binding on the agency and the agency may take appropriate action, including
action related to the eligibility, renewal, suspension, or revocation of a
license or certificate of public convenience and necessity if the agency is
otherwise authorized to take such action.
Sec. 7. Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to read:
Subd. 14. Public
contracts. In the case of an
employer that is a party to a public contract, if the commissioner issues an
order to comply under subdivision 4, the commissioner may provide a copy of the
order to comply to the contract letting agency.
Unless the order to comply is reversed in the course of administrative
or judicial review, an order to comply is binding on the contract letting
agency and the agency may take appropriate administrative action, including the
imposition of financial penalties and eligibility for, termination or
nonrenewal of a contract, in whole or in part, if the agency is otherwise
authorized to take the action.
Sec. 8. Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to read:
Subd. 15. Notice
to employees of compliance orders and citations. In a compliance order or citation
issued under this chapter and chapters 181, 181A, and 184, the commissioner may
require that the provisions of a compliance order or citation setting out the
violations found by the commissioner and any subsequent document setting out
the resolution of the compliance order or citation through settlement agreement
or other final disposition, upon receipt by the employer, be made available for
review by the employees of the employer using the means the employer uses to
provide other work-related notices to the employer's employees. The means used by the employer must be at
least as effective as the following options for providing notice: (1) posting a copy of the compliance order or
citation at each location where employees perform work and where the notice
must be readily observed and easily reviewed by all employees performing work;
or (2) providing a paper or electronic copy of the compliance order or citation
to employees. Each citation and proposed
penalty shall be posted or made available to employees for a minimum period of
20 days. Upon issuance of a compliance
order or citation to an employer, the commissioner may also provide the
provisions of the compliance order or citation setting out the violations found
by the commissioner and any resolution of a compliance order or citation
through settlement agreement or other final disposition to the employer's
employees who may be affected by the order or citation and how the order or
citation and resolution may affect their interests.
Sec. 9. Minnesota Statutes 2018, section 177.30, is amended to read:
177.30
KEEPING RECORDS; PENALTY.
(a) Every employer subject to sections 177.21 to 177.44 must make and keep a record of:
(1) the name, address, and occupation of each employee;
(2) the rate of pay, and the amount paid each pay period to each employee, including whether each employee is paid by the hour, shift, day, week, salary, piece, commission, or other;
(3) the hours worked each day and each workweek by the employee, including for all employees paid at piece rate, the number of pieces completed at each piece rate;
(4) any personnel policies provided to
employees;
(5) a copy of the notice provided to each
employee as required by section 181.032, paragraph (d);
(6) for each employer subject to sections 177.41 to 177.44, and while performing work on public works projects funded in whole or in part with state funds, the employer shall furnish under oath signed by an owner or officer of an employer to the contracting authority and the project owner every two weeks, a certified payroll report with respect
to the wages and benefits paid each employee during the preceding weeks specifying for each employee: name; identifying number; prevailing wage master job classification; hours worked each day; total hours; rate of pay; gross amount earned; each deduction for taxes; total deductions; net pay for week; dollars contributed per hour for each benefit, including name and address of administrator; benefit account number; and telephone number for health and welfare, vacation or holiday, apprenticeship training, pension, and other benefit programs; and
(5) (7) other information the
commissioner finds necessary and appropriate to enforce sections 177.21 to
177.435. The records must be kept for
three years in or near the premises where an employee works except each
employer subject to sections 177.41 to 177.44, and while performing work on
public works projects funded in whole or in part with state funds, the records
must be kept for three years after the contracting authority has made final
payment on the public works project.
(b) All records required to be kept under
paragraph (a) must be readily available for inspection by the commissioner upon
demand. The records must be either kept
at the place where employees are working or kept in a manner that allows the
employer to comply with this paragraph within 24 hours.
(c) The commissioner may fine an employer up to $1,000 for each failure to maintain records as required by this section, and up to $10,000 for each repeated failure. This penalty is in addition to any penalties provided under section 177.32, subdivision 1. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered.
(d) If the records maintained by the
employer do not provide sufficient information to determine the exact amount of
back wages due an employee, the commissioner may make a determination of wages
due based on available evidence.
Sec. 10. Minnesota Statutes 2018, section 177.32, subdivision 1, is amended to read:
Subdivision 1. Misdemeanors. (a) An employer who does any of the following is guilty of a misdemeanor:
(1) hinders or delays the commissioner in the performance of duties required under sections 177.21 to 177.435, or chapter 181;
(2) refuses to admit the commissioner to the place of business or employment of the employer, as required by section 177.27, subdivision 1;
(3) repeatedly fails to make, keep, and preserve records as required by section 177.30;
(4) falsifies any record;
(5) refuses to make any record available, or to furnish a sworn statement of the record or any other information as required by section 177.27;
(6) repeatedly fails to post a summary of sections 177.21 to 177.44 or a copy or summary of the applicable rules as required by section 177.31;
(7) pays or agrees to pay wages at a rate less than the rate required under sections 177.21 to 177.44, or described and provided by an employer to its employees under section 181.032;
(8) refuses to allow adequate time from work as required by section 177.253; or
(9) otherwise violates any provision of sections 177.21 to 177.44, or commits wage theft as described in section 181.03, subdivision 1.
Intent is not an element of a misdemeanor under this
paragraph.
(b) An employer is guilty of a gross
misdemeanor if the employer is found to have intentionally retaliated against
an employee for asserting rights or remedies under sections 177.21 to 177.44 or
section 181.03.
Sec. 11. [177.45]
ENFORCEMENT; REMEDIES.
Subdivision 1. Public
enforcement. In addition to
the enforcement of this chapter by the department, the attorney general may
enforce this chapter under section 8.31.
Subd. 2. Remedies
cumulative. The remedies
provided in this chapter are cumulative and do not restrict any remedy that is
otherwise available, including remedies provided under section 8.31. The remedies available under this section are
not exclusive and are in addition to any other requirements, rights, remedies,
and penalties provided by law.
Sec. 12. Minnesota Statutes 2018, section 181.03, subdivision 1, is amended to read:
Subdivision 1. Prohibited
practices. An employer may not,
directly or indirectly and with intent to defraud: (a) No employer shall commit wage
theft.
(b) For purposes of this section, wage
theft is committed if:
(1) cause an employer has failed
to pay an employee all wages, salary, gratuities, earnings, or commissions at
the employee's rate or rates of pay or at the rate or rates required by law,
including any applicable statute, regulation, rule, ordinance, government
resolution or policy, contract, or other legal authority, whichever rate of pay
is greater;
(2) an employer directly or indirectly causes any employee to give a receipt for wages for a greater amount than that actually paid to the employee for services rendered;
(2) (3) an employer directly
or indirectly demand demands or receive receives
from any employee any rebate or refund from the wages owed the employee under
contract of employment with the employer; or
(3) (4) an employer in any
manner make makes or attempt attempts to make it
appear that the wages paid to any employee were greater than the amount
actually paid to the employee.
Sec. 13. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to read:
Subd. 4. Enforcement. The use of an enforcement provision in
this section shall not preclude the use of any other enforcement provision provided
by law.
Sec. 14. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to read:
Subd. 5. Citations. (a) In addition to other remedies and
penalties provided by this chapter and chapter 177, the commissioner may issue
a citation for a civil penalty of up to $1,000 for any wage theft of up to
$1,000 by serving the citation on the employer.
The citation may direct the employer to pay employees in a manner
prescribed by the commissioner any wages, salary, gratuities, earnings, or
commissions owed to the employee within 15 days of service of the citation on
the employer. The commissioner shall
serve the citation upon the employer or the
employer's
authorized representative in person or by certified mail at the employer's place
of business or registered office address with the secretary of state. The citation shall require the employer to
correct the violation and cease and desist from committing the violation.
(b) In determining the amount of the
civil penalty, the commissioner shall consider the size of the employer's
business and the gravity of the violation as provided in section 14.045,
subdivision 3, paragraph (a). If the
citation includes a penalty assessment, the penalty is due and payable on the
date the citation becomes final. The
commissioner may vacate the citation if the employer pays the amount of wages,
salaries, commissions, earnings, and gratuities due in the citation within five
days after the citation is served on the employer.
Sec. 15. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to read:
Subd. 6. Administrative
review. Within 15 days after
the commissioner of labor and industry issues a citation under subdivision 5,
the employer to whom the citation is issued may request an expedited hearing to
review the citation. The request for
hearing must be in writing and must be served on the commissioner at the
address specified in the citation. If
the employer does not request a hearing or if the employer's written request
for hearing is not served on the commissioner by the 15th day after the
commissioner issues the citation, the citation becomes a final order of the
commissioner and is not subject to review by any court or agency. The hearing request must state the reasons
for seeking review of the citation. The
employer to whom the citation is issued and the commissioner are the parties to
the expedited hearing. The commissioner
must notify the employer to whom the citation is issued of the time and place
of the hearing at least 15 days before the hearing. The hearing shall be conducted under
Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this section. If a hearing has been held, the commissioner
shall not issue a final order until at least five days after the date of the
administrative law judge's report. Any
person aggrieved by the administrative law judge's report may, within those
five days, serve written comments to the commissioner on the report and the
commissioner shall consider and enter the comments in the record. The commissioner's final order shall comply
with sections 14.61, subdivision 2, and 14.62, subdivisions 1 and 2a, and may
be appealed in the manner provided in sections 14.63 to 14.69.
Sec. 16. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to read:
Subd. 7. Effect
on other laws. Nothing in
this section shall be construed to limit the application of other state or
federal laws.
Sec. 17. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to read:
Subd. 8. Retaliation. An employer must not retaliate against
an employee for asserting rights or remedies under this section, including but
not limited to filing a complaint with the Department of Labor and Industry or
telling the employer of intention to file a complaint. A rebuttable presumption of unlawful
retaliation under this section exists whenever an employer takes adverse action
against an employee within 90 days of the employee asserting rights or remedies
under this section.
Sec. 18. Minnesota Statutes 2018, section 181.032, is amended to read:
181.032
REQUIRED STATEMENT OF EARNINGS BY EMPLOYER; NOTICE TO EMPLOYEE.
(a) At the end of each pay period, the employer shall provide each employee an earnings statement, either in writing or by electronic means, covering that pay period. An employer who chooses to provide an earnings statement by electronic means must provide employee access to an employer-owned computer during an employee's regular working hours to review and print earnings statements.
(b) The earnings statement may be in any form determined by the employer but must include:
(1) the name of the employee;
(2) the hourly rate or rates
of pay (if applicable) and basis thereof, including whether the
employee is paid by hour, shift, day, week, salary, piece, commission, or other
method;
(3) allowances, if any, claimed
pursuant to permitted meals and lodging;
(4) the total number of hours worked by the employee unless exempt from chapter 177;
(4) (5) the total amount of
gross pay earned by the employee during that period;
(5) (6) a list of deductions
made from the employee's pay;
(6) (7) the net amount of
pay after all deductions are made;
(7) (8) the date on which
the pay period ends; and
(8) (9) the legal name of
the employer and the operating name of the employer if different from the legal
name.;
(10) the physical address of the
employer's main office or principal place of business, and a mailing address if
different; and
(11) the telephone number of the
employer.
(c) An employer must provide earnings statements to an employee in writing, rather than by electronic means, if the employer has received at least 24 hours notice from an employee that the employee would like to receive earnings statements in written form. Once an employer has received notice from an employee that the employee would like to receive earnings statements in written form, the employer must comply with that request on an ongoing basis.
(d) At the start of employment, an employer
shall provide each employee a written notice containing the following
information:
(1) the rate or rates of pay and basis
thereof, including whether the employee is paid by the hour, shift, day, week,
salary, piece, commission, or other method, and the specific application of any
additional rates;
(2) allowances, if any, claimed
pursuant to permitted meals and lodging;
(3) paid vacation, sick time, or other
paid time off accruals and terms of use;
(4) the employee's employment status
and whether the employee is exempt from minimum wage, overtime, and other
provisions of chapter 177, and on what basis;
(5) a list of deductions that may be
made from the employee's pay;
(6) the dates on which the pay periods
start and end and the regularly scheduled payday;
(7) the legal name of the employer and
the operating name of the employer if different from the legal name;
(8)
the physical address of the employer's main office or principal place of
business, and a mailing address if different; and
(9) the telephone number of the
employer.
(e) The employer must keep a copy of the
notice under paragraph (d) signed by each employee acknowledging receipt of the
notice. The notice must be provided to
each employee in English and in the employee's native language.
(f) An employer must provide the
employee any written changes to the information contained in the notice under
paragraph (d) at least seven calendar days prior to the time the changes take
effect. The changes must be signed by
the employee before the changes go into effect.
The employer must keep a signed copy of all notice of changes as well as
the initial notices under paragraph (d).
Sec. 19. Minnesota Statutes 2018, section 181.101, is amended to read:
181.101
WAGES; HOW OFTEN PAID.
(a) Except as provided in paragraph (b),
every employer must pay all wages earned by an employee at least once every 31
16 days on a regular payday designated in advance by the employer
regardless of whether the employee requests payment at longer intervals. Unless paid earlier, the wages earned
during the first half of the first 31-day pay period become due on the first
regular payday following the first day of work. An employer's pay period must be no longer
than 16 days. All wages earned in a pay
period must be paid to an employee within 16 days of the end of that pay period. If wages earned are not paid, the
commissioner of labor and industry or the commissioner's representative may serve
a demand for payment on behalf of an employee. If payment is not made within ten five
days of service of the demand, the commissioner may charge and collect
the wages earned and a penalty liquidated damages in the amount
of the employee's average daily earnings at the employee's rate agreed
upon in the contract of employment or rates of pay or at the rate or
rates required by law, including any applicable statute, regulation, rule,
ordinance, government resolution or policy, contract, or other legal authority,
whichever rate of pay is greater, not exceeding 15 days in all, for
each day beyond the ten-day five-day limit following the demand. Money collected by the commissioner must be
paid to the employee concerned. This
section does not prevent an employee from prosecuting a claim for wages. This section does not prevent a school
district, other public school entity, or other school, as defined under section
120A.22, from paying any wages earned by its employees during a school year on
regular paydays in the manner provided by an applicable contract or collective
bargaining agreement, or a personnel policy adopted by the governing board. For purposes of this section,
"employee" includes a person who performs agricultural labor as
defined in section 181.85, subdivision 2.
For purposes of this section, wages are earned on the day an employee
works.
(b) An employer of a volunteer firefighter, as defined in section 424A.001, subdivision 10, a member of an organized first responder squad that is formally recognized by a political subdivision in the state, or a volunteer ambulance driver or attendant must pay all wages earned by the volunteer firefighter, first responder, or volunteer ambulance driver or attendant at least once every 31 days, unless the employer and the employee mutually agree upon payment at longer intervals.
Sec. 20. [181.1721]
ENFORCEMENT; REMEDIES.
Subdivision 1. Public
enforcement. In addition to
the enforcement of this chapter by the department, the attorney general may
enforce this chapter under section 8.31.
Subd. 2. Remedies
cumulative. The remedies
provided in this chapter are cumulative and do not restrict any remedy that is
otherwise available, including remedies provided under section 8.31. The remedies available under this section are
not exclusive and are in addition to any other requirements, rights, remedies,
and penalties provided by law.
Sec. 21. Minnesota Statutes 2018, section 609.52, subdivision 1, is amended to read:
Subdivision 1. Definitions. In this section:
(1) "Property" means all forms of tangible property, whether real or personal, without limitation including documents of value, electricity, gas, water, corpses, domestic animals, dogs, pets, fowl, and heat supplied by pipe or conduit by municipalities or public utility companies and articles, as defined in clause (4), representing trade secrets, which articles shall be deemed for the purposes of Extra Session Laws 1967, chapter 15 to include any trade secret represented by the article.
(2) "Movable property" is property whose physical location can be changed, including without limitation things growing on, affixed to, or found in land.
(3) "Value" means the retail
market value at the time of the theft, or if the retail market value cannot be
ascertained, the cost of replacement of the property within a reasonable time
after the theft, or in the case of a theft or the making of a copy of an
article representing a trade secret, where the retail market value or
replacement cost cannot be ascertained, any reasonable value representing the
damage to the owner which the owner has suffered by reason of losing an
advantage over those who do not know of or use the trade secret. For a check, draft, or other order for the
payment of money, "value" means the amount of money promised or
ordered to be paid under the terms of the check, draft, or other order. For a theft committed within the meaning of
subdivision 2, clause (5), items (i) and (ii), if the property has been
restored to the owner, "value" means the value of the use of the
property or the damage which it sustained, whichever is greater, while the
owner was deprived of its possession, but not exceeding
the value otherwise provided herein. For
a theft committed within the meaning of subdivision 2, clause (9), if
the property has been restored to the owner, "value" means the rental
value of the property, determined at the rental rate contracted by the
defendant or, if no rental rate was contracted, the rental rate customarily
charged by the owner for use of the property, plus any damage that occurred to
the property while the owner was deprived of its possession, but not exceeding
the total retail value of the property at the time of rental. For a theft committed within the meaning
of subdivision 2, clause (19), "value" means the difference between
wages legally required to be reported or paid to an employee and the amount
actually reported or paid to the employee.
(4) "Article" means any object, material, device or substance, including any writing, record, recording, drawing, sample specimen, prototype, model, photograph, microorganism, blueprint or map, or any copy of any of the foregoing.
(5) "Representing" means describing, depicting, containing, constituting, reflecting or recording.
(6) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(i) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and
(ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
(7) "Copy" means any facsimile, replica, photograph or other reproduction of an article, and any note, drawing, or sketch made of or from an article while in the presence of the article.
(8) "Property of another" includes property in which the actor is co-owner or has a lien, pledge, bailment, or lease or other subordinate interest, property transferred by the actor in circumstances which are known to the actor and which make the transfer fraudulent as defined in section 513.44, property possessed pursuant to a short-term
rental contract, and property of a partnership of which the actor is a member, unless the actor and the victim are husband and wife. It does not include property in which the actor asserts in good faith a claim as a collection fee or commission out of property or funds recovered, or by virtue of a lien, setoff, or counterclaim.
(9) "Services" include but are not limited to labor, professional services, transportation services, electronic computer services, the supplying of hotel accommodations, restaurant services, entertainment services, advertising services, telecommunication services, and the supplying of equipment for use including rental of personal property or equipment.
(10) "Motor vehicle" means a self-propelled device for moving persons or property or pulling implements from one place to another, whether the device is operated on land, rails, water, or in the air.
(11) "Motor fuel" has the meaning given in section 604.15, subdivision 1.
(12) "Retailer" has the meaning given in section 604.15, subdivision 1.
Sec. 22. Minnesota Statutes 2018, section 609.52, subdivision 2, is amended to read:
Subd. 2. Acts constituting theft. (a) Whoever does any of the following commits theft and may be sentenced as provided in subdivision 3:
(1) intentionally and without claim of right takes, uses, transfers, conceals or retains possession of movable property of another without the other's consent and with intent to deprive the owner permanently of possession of the property; or
(2) with or without having a legal interest in movable property, intentionally and without consent, takes the property out of the possession of a pledgee or other person having a superior right of possession, with intent thereby to deprive the pledgee or other person permanently of the possession of the property; or
(3) obtains for the actor or another the possession, custody, or title to property of or performance of services by a third person by intentionally deceiving the third person with a false representation which is known to be false, made with intent to defraud, and which does defraud the person to whom it is made. "False representation" includes without limitation:
(i) the issuance of a check, draft, or order for the payment of money, except a forged check as defined in section 609.631, or the delivery of property knowing that the actor is not entitled to draw upon the drawee therefor or to order the payment or delivery thereof; or
(ii) a promise made with intent not to perform. Failure to perform is not evidence of intent not to perform unless corroborated by other substantial evidence; or
(iii) the preparation or filing of a claim for reimbursement, a rate application, or a cost report used to establish a rate or claim for payment for medical care provided to a recipient of medical assistance under chapter 256B, which intentionally and falsely states the costs of or actual services provided by a vendor of medical care; or
(iv) the preparation or filing of a claim for reimbursement for providing treatment or supplies required to be furnished to an employee under section 176.135 which intentionally and falsely states the costs of or actual treatment or supplies provided; or
(v) the preparation or filing of a claim for reimbursement for providing treatment or supplies required to be furnished to an employee under section 176.135 for treatment or supplies that the provider knew were medically unnecessary, inappropriate, or excessive; or
(4) by swindling, whether by artifice, trick, device, or any other means, obtains property or services from another person; or
(5) intentionally commits any of the acts listed in this subdivision but with intent to exercise temporary control only and:
(i) the control exercised manifests an indifference to the rights of the owner or the restoration of the property to the owner; or
(ii) the actor pledges or otherwise attempts to subject the property to an adverse claim; or
(iii) the actor intends to restore the property only on condition that the owner pay a reward or buy back or make other compensation; or
(6) finds lost property and, knowing or having reasonable means of ascertaining the true owner, appropriates it to the finder's own use or to that of another not entitled thereto without first having made reasonable effort to find the owner and offer and surrender the property to the owner; or
(7) intentionally obtains property or services, offered upon the deposit of a sum of money or tokens in a coin or token operated machine or other receptacle, without making the required deposit or otherwise obtaining the consent of the owner; or
(8) intentionally and without claim of right converts any article representing a trade secret, knowing it to be such, to the actor's own use or that of another person or makes a copy of an article representing a trade secret, knowing it to be such, and intentionally and without claim of right converts the same to the actor's own use or that of another person. It shall be a complete defense to any prosecution under this clause for the defendant to show that information comprising the trade secret was rightfully known or available to the defendant from a source other than the owner of the trade secret; or
(9) leases or rents personal property under a written instrument and who:
(i) with intent to place the property beyond the control of the lessor conceals or aids or abets the concealment of the property or any part thereof; or
(ii) sells, conveys, or encumbers the property or any part thereof without the written consent of the lessor, without informing the person to whom the lessee sells, conveys, or encumbers that the same is subject to such lease or rental contract with intent to deprive the lessor of possession thereof; or
(iii) does not return the property to the lessor at the end of the lease or rental term, plus agreed-upon extensions, with intent to wrongfully deprive the lessor of possession of the property; or
(iv) returns the property to the lessor at the end of the lease or rental term, plus agreed-upon extensions, but does not pay the lease or rental charges agreed upon in the written instrument, with intent to wrongfully deprive the lessor of the agreed-upon charges.
For the purposes of items (iii) and (iv), the value of the property must be at least $100.
Evidence that a lessee used a false, fictitious, or not current name, address, or place of employment in obtaining the property or fails or refuses to return the property or pay the rental contract charges to lessor within five days after written demand for the return has been served personally in the manner provided for service of process of a civil action or sent by certified mail to the last known address of the lessee, whichever shall occur later, shall be evidence of intent to violate this clause. Service by certified mail shall be deemed to be complete upon deposit in the United States mail of such demand, postpaid and addressed to the person at the address for the person set forth in the lease or rental agreement, or, in the absence of the address, to the person's last known place of residence; or
(10) alters, removes, or obliterates numbers or symbols placed on movable property for purpose of identification by the owner or person who has legal custody or right to possession thereof with the intent to prevent identification, if the person who alters, removes, or obliterates the numbers or symbols is not the owner and does not have the permission of the owner to make the alteration, removal, or obliteration; or
(11) with the intent to prevent the identification of property involved, so as to deprive the rightful owner of possession thereof, alters or removes any permanent serial number, permanent distinguishing number or manufacturer's identification number on personal property or possesses, sells or buys any personal property knowing or having reason to know that the permanent serial number, permanent distinguishing number or manufacturer's identification number has been removed or altered; or
(12) intentionally deprives another of a lawful charge for cable television service by:
(i) making or using or attempting to make or use an unauthorized external connection outside the individual dwelling unit whether physical, electrical, acoustical, inductive, or other connection; or by
(ii) attaching any unauthorized device to any cable, wire, microwave, or other component of a licensed cable communications system as defined in chapter 238. Nothing herein shall be construed to prohibit the electronic video rerecording of program material transmitted on the cable communications system by a subscriber for fair use as defined by Public Law 94-553, section 107; or
(13) except as provided in clauses (12) and (14), obtains the services of another with the intention of receiving those services without making the agreed or reasonably expected payment of money or other consideration; or
(14) intentionally deprives another of a lawful charge for telecommunications service by:
(i) making, using, or attempting to make
or use an unauthorized connection whether physical, electrical, by wire, microwave, radio, or other means to a component
of a local telecommunication system as provided in chapter 237; or
(ii) attaching an unauthorized device to a cable, wire, microwave, radio, or other component of a local telecommunication system as provided in chapter 237.
The existence of an unauthorized connection is prima facie evidence that the occupier of the premises:
(A) made or was aware of the connection; and
(B) was aware that the connection was unauthorized;
(15) with intent to defraud, diverts corporate property other than in accordance with general business purposes or for purposes other than those specified in the corporation's articles of incorporation; or
(16) with intent to defraud, authorizes or causes a corporation to make a distribution in violation of section 302A.551, or any other state law in conformity with it; or
(17) takes or drives a motor vehicle without the consent of the owner or an authorized agent of the owner, knowing or having reason to know that the owner or an authorized agent of the owner did not give consent; or
(18) intentionally, and without claim of
right, takes motor fuel from a retailer without the retailer's consent and with
intent to deprive the retailer permanently of possession of the fuel by driving
a motor vehicle from the premises of the retailer without having paid for the
fuel dispensed into the vehicle.; or
(19) intentionally engages in or
authorizes a prohibited practice of wage theft as described in section 181.03,
subdivision 1.
(b) Proof that the driver of a motor vehicle into which motor fuel was dispensed drove the vehicle from the premises of the retailer without having paid for the fuel permits the factfinder to infer that the driver acted intentionally and without claim of right, and that the driver intended to deprive the retailer permanently of possession of the fuel. This paragraph does not apply if: (1) payment has been made to the retailer within 30 days of the receipt of notice of nonpayment under section 604.15; or (2) a written notice as described in section 604.15, subdivision 4, disputing the retailer's claim, has been sent. This paragraph does not apply to the owner of a motor vehicle if the vehicle or the vehicle's license plate has been reported stolen before the theft of the fuel.
Sec. 23. Minnesota Statutes 2018, section 609.52, subdivision 3, is amended to read:
Subd. 3. Sentence. Whoever commits theft may be sentenced as follows:
(1) to imprisonment for not more than 20
years or to payment of a fine of not more than $100,000, or both, if the
property is a firearm, or the value of the property or services stolen is more
than $35,000 and the conviction is for a violation of subdivision 2, clause
(3), (4), (15), or (16), or (19), or section 609.2335,
subdivision 1, clause (1) or (2), item (i); or
(2) to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both, if the value of the property or services stolen exceeds $5,000, or if the property stolen was an article representing a trade secret, an explosive or incendiary device, or a controlled substance listed in Schedule I or II pursuant to section 152.02 with the exception of marijuana; or
(3) to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if any of the following circumstances exist:
(a) the value of the property or services stolen is more than $1,000 but not more than $5,000; or
(b) the property stolen was a controlled substance listed in Schedule III, IV, or V pursuant to section 152.02; or
(c) the value of the property or services stolen is more than $500 but not more than $1,000 and the person has been convicted within the preceding five years for an offense under this section, section 256.98; 268.182; 609.24; 609.245; 609.53; 609.582, subdivision 1, 2, or 3; 609.625; 609.63; 609.631; or 609.821, or a statute from another state, the United States, or a foreign jurisdiction, in conformity with any of those sections, and the person received a felony or gross misdemeanor sentence for the offense, or a sentence that was stayed under section 609.135 if the offense to which a plea was entered would allow imposition of a felony or gross misdemeanor sentence; or
(d) the value of the property or services stolen is not more than $1,000, and any of the following circumstances exist:
(i) the property is taken from the person of another or from a corpse, or grave or coffin containing a corpse; or
(ii) the property is a record of a court or officer, or a writing, instrument or record kept, filed or deposited according to law with or in the keeping of any public officer or office; or
(iii) the property is taken from a burning, abandoned, or vacant building or upon its removal therefrom, or from an area of destruction caused by civil disaster, riot, bombing, or the proximity of battle; or
(iv) the
property consists of public funds belonging to the state or to any political
subdivision or agency thereof; or
(v) the property stolen is a motor vehicle; or
(4) to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both, if the value of the property or services stolen is more than $500 but not more than $1,000; or
(5) in all other cases where the value of the property or services stolen is $500 or less, to imprisonment for not more than 90 days or to payment of a fine of not more than $1,000, or both, provided, however, in any prosecution under subdivision 2, clauses (1), (2), (3), (4), and (13), the value of the money or property or services received by the defendant in violation of any one or more of the above provisions within any six-month period may be aggregated and the defendant charged accordingly in applying the provisions of this subdivision; provided that when two or more offenses are committed by the same person in two or more counties, the accused may be prosecuted in any county in which one of the offenses was committed for all of the offenses aggregated under this paragraph.
ARTICLE 6
EARNED SICK AND SAFE TIME
Section 1. Minnesota Statutes 2018, section 181.942, subdivision 1, is amended to read:
Subdivision 1. Comparable
position. (a) An employee returning from
a leave of absence under section 181.941 is entitled to return to employment in
the employee's former position or in a position of comparable duties, number of
hours, and pay. An employee returning
from a leave of absence longer than one month must notify a supervisor at least
two weeks prior to return from leave. An
employee returning from a leave under section 181.9412 or 181.9413 181.9445
is entitled to return to employment in the employee's former position.
(b) If, during a leave under sections 181.940 to 181.944, the employer experiences a layoff and the employee would have lost a position had the employee not been on leave, pursuant to the good faith operation of a bona fide layoff and recall system, including a system under a collective bargaining agreement, the employee is not entitled to reinstatement in the former or comparable position. In such circumstances, the employee retains all rights under the layoff and recall system, including a system under a collective bargaining agreement, as if the employee had not taken the leave.
Sec. 2. [181.9445]
EARNED SICK AND SAFE TIME.
Subdivision 1. Definitions. (a) For the purposes of this section
and section 177.50, the terms defined in this subdivision have the meanings
given them.
(b) "Commissioner" means the
commissioner of labor and industry or authorized designee or representative.
(c) "Domestic abuse" has the
meaning given in section 518B.01.
(d) "Earned sick and safe
time" means leave, including paid time off and other paid leave systems,
that is paid at the same hourly rate as an employee earns from employment that
may be used for the same purposes and under the same conditions as provided
under subdivision 3.
(e)
"Employee" means any person who is employed by an employer, including
temporary and part-time employees, who performs work for at least 80 hours in a
year for that employer in Minnesota. Employee
does not include an independent contractor.
(f) "Employer" means a person
who has one or more employees. Employer
includes an individual, a corporation, a partnership, an association, a
business trust, a nonprofit organization, a group of persons, a state, county,
town, city, school district, or other governmental subdivision. In the event that a temporary employee is
supplied by a staffing agency, absent a contractual agreement stating
otherwise, that individual shall be an employee of the staffing agency for all
purposes of this section and section 177.50.
(g) "Family member" means:
(1) an employee's:
(i) child, foster child, adult child,
legal ward, or child for whom the employee is legal guardian;
(ii) spouse or registered domestic
partner;
(iii) sibling, stepsibling, or foster
sibling;
(iv) parent or stepparent;
(v) grandchild, foster grandchild, or
stepgrandchild; or
(vi) grandparent or stepgrandparent;
(2) any of the family members listed in
clause (1) of a spouse or registered domestic partner;
(3) any individual related by blood or
affinity whose close association with the employee is the equivalent of a family
relationship; and
(4) up to one individual annually
designated by the employee.
(h) "Health care
professional" means any person licensed under federal or state law to
provide medical or emergency services, including doctors, physician assistants,
nurses, and emergency room personnel.
(i) "Prevailing wage rate"
has the meaning given in section 177.42 and as calculated by the Department of
Labor and Industry.
(j) "Retaliatory personnel
action" means:
(1) any form of intimidation, threat,
reprisal, harassment, discrimination, or adverse employment action, including
discipline, discharge, suspension, transfer, or reassignment to a lesser
position in terms of job classification, job security, or other condition of
employment; reduction in pay or hours or denial of additional hours; the
accumulation of points under an attendance point system; informing another
employer that the person has engaged in activities protected by this chapter;
or reporting or threatening to report the actual or suspected citizenship or
immigration status of an employee, former employee, or family member of an
employee to a federal, state, or local agency; and
(2) interference with or punishment for
participating in any manner in an investigation, proceeding, or hearing under
this chapter.
(k)
"Sexual assault" means an act that constitutes a violation under
sections 609.342 to 609.3453 or 609.352.
(l) "Stalking" has the
meaning given in section 609.749.
(m) "Year" means a regular
and consecutive 12-month period, as determined by an employer and clearly
communicated to each employee of that employer.
Subd. 2. Accrual
of earned sick and safe time. (a)
An employee accrues a minimum of one hour of earned sick and safe time for
every 30 hours worked up to a maximum of 48 hours of earned sick and safe time
in a year. Employees may not accrue more
than 48 hours of earned sick and safe time in a year unless the employer agrees
to a higher amount.
(b) Employers must permit an employee
to carry over accrued but unused sick and safe time into the following year. The total amount of accrued but unused earned
sick and safe time for an employee may not exceed 80 hours at any time, unless
an employer agrees to a higher amount.
(c) Employees who are exempt from
overtime requirements under United States Code, title 29, section 213(a)(1), as
amended through the effective date of this section, are deemed to work 40 hours
in each workweek for purposes of accruing earned sick and safe time, except
that an employee whose normal workweek is less than 40 hours will accrue earned
sick and safe time based on the normal workweek.
(d) Earned sick and safe time under
this section begins to accrue at the commencement of employment of the
employee.
(e) Employees may use accrued earned
sick and safe time beginning 90 calendar days after the day their employment
commenced. After 90 days from the day
employment commenced, employees may use earned sick and safe time as it is
accrued. The 90-calendar-day period
under this paragraph includes both days worked and days not worked.
Subd. 3. Use
of earned sick and safe time. (a)
An employee may use accrued earned sick and safe time for:
(1) an employee's:
(i) mental or physical illness, injury,
or other health condition;
(ii) need for medical diagnosis, care,
or treatment of a mental or physical illness, injury, or health condition; or
(iii) need for preventive medical or
health care;
(2) care of a family member:
(i) with a mental or physical illness,
injury, or other health condition;
(ii) who needs medical diagnosis, care,
or treatment of a mental or physical illness, injury, or other health
condition; or
(iii) who needs preventive medical or
health care;
(3) absence due to domestic abuse,
sexual assault, or stalking of the employee or employee's family member,
provided the absence is to:
(i)
seek medical attention related to physical or psychological injury or
disability caused by domestic abuse, sexual assault, or stalking;
(ii) obtain services from a victim
services organization;
(iii) obtain psychological or other
counseling;
(iv) seek relocation due to domestic
abuse, sexual assault, or stalking; or
(v) seek legal advice or take legal
action, including preparing for or participating in any civil or criminal legal
proceeding related to or resulting from domestic abuse, sexual assault, or
stalking;
(4) closure of the employee's place of
business due to weather or other public emergency or an employee's need to care
for a family member whose school or place of care has been closed due to
weather or other public emergency; and
(5) when it has been determined by the
health authorities having jurisdiction or by a health care professional that
the presence of the employee or family member of the employee in the community
would jeopardize the health of others because of the exposure of the employee
or family member of the employee to a communicable disease, whether or not the
employee or family member has actually contracted the communicable disease.
(b) An employer may require notice of
the need for use of earned sick and safe time as provided in this paragraph. If the need for use is foreseeable, an
employer may require advance notice of the intention to use earned sick and
safe time but must not require more than seven days' advance notice. If the need is unforeseeable, an employer may
require an employee to give notice of the need for earned sick and safe time as
soon as practicable.
(c) When an employee uses earned sick
and safe time for more than three consecutive days, an employer may require
reasonable documentation that the earned sick and safe time is covered by
paragraph (a). For earned sick and safe
time under paragraph (a), clauses (1) and (2), reasonable documentation may
include a signed statement by a health care professional indicating the need
for use of earned sick and safe time. For
earned sick and safe time under paragraph (a), clause (3), an employer must
accept a court record or documentation signed by a volunteer or employee of a
victims services organization, an attorney, a police officer, or an
antiviolence counselor as reasonable documentation. An employer must not require disclosure of
details relating to domestic abuse, sexual assault, or stalking or the details
of an employee's or an employee's family member's medical condition as related
to an employee's request to use earned sick and safe time under this section.
(d) An employer may not require, as a
condition of an employee using earned sick and safe time, that the employee
seek or find a replacement worker to cover the hours the employee uses as
earned sick and safe time.
(e) Earned sick and safe time may be
used in the smallest increment of time tracked by the employer's payroll
system, provided such increment is not more than four hours.
Subd. 4. Retaliation
prohibited. An employer shall
not take retaliatory personnel action against an employee because the employee
has requested earned sick and safe time, used earned sick and safe time,
requested a statement of accrued sick and safe time, or made a complaint or
filed an action to enforce a right to earned sick and safe time under this
section.
Subd. 5. Reinstatement
to comparable position after leave. An
employee returning from a leave under this section is entitled to return to
employment in a comparable position. If,
during a leave under this section, the employer experiences a layoff and the
employee would have lost a position had the employee not been on leave,
pursuant to the good faith operation of a bona fide layoff and recall system,
including a system under a collective bargaining agreement, the employee is not
entitled to reinstatement in the former or comparable position. In such circumstances, the employee retains
all rights under the layoff and recall system, including a system under a
collective bargaining agreement, as if the employee had not taken the leave.
Subd. 6. Pay
and benefits after leave. An
employee returning from a leave under this section is entitled to return to
employment at the same rate of pay the employee had been receiving when the
leave commenced, plus any automatic adjustments in the employee's pay scale
that occurred during leave period. The
employee returning from a leave is entitled to retain all accrued preleave
benefits of employment and seniority as if there had been no interruption in
service, provided that nothing under this section prevents the accrual of
benefits or seniority during the leave pursuant to a collective bargaining or
other agreement between the employer and employees.
Subd. 7. Part-time
return from leave. An
employee, by agreement with the employer, may return to work part time during
the leave period without forfeiting the right to return to employment at the
end of the leave, as provided under this section.
Subd. 8. Notice
and posting by employer. (a)
Employers must give notice to all employees that they are entitled to earned
sick and safe time, including the amount of earned sick and safe time, the
accrual year for the employee, and the terms of its use under this section;
that retaliation against employees who request or use earned sick and safe time
is prohibited; and that each employee has the right to file a complaint or
bring a civil action if earned sick and safe time is denied by the employer or
the employee is retaliated against for requesting or using earned sick and safe
time.
(b) Employers must supply employees
with a notice in English and other appropriate languages that contains the
information required in paragraph (a) at commencement of employment or the
effective date of this section, whichever is later.
(c) The means used by the employer must
be at least as effective as the following options for providing notice:
(1) posting a copy of the notice at
each location where employees perform work and where the notice must be readily
observed and easily reviewed by all employees performing work; or
(2) providing a paper or electronic
copy of the notice to employees.
The notice must contain all information required under
paragraph (a). The commissioner shall
create and make available to employers a poster and a model notice that
contains the information required under paragraph (a) for their use in
complying with this section.
(d) An employer that provides an
employee handbook to its employees must include in the handbook notice of employee
rights and remedies under this section.
Subd. 9. Required
statement to employee. (a)
Upon request of the employee, the employer must provide, in writing or
electronically, current information stating the employee's amount of:
(1) earned sick and safe time available
to the employee; and
(2) used earned sick and safe time.
(b) Employers may choose a reasonable
system for providing the information in paragraph (a), including but not
limited to listing information on each pay stub or developing an online system
where employees can access their own information.
Subd. 10. Employer
records. (a) Employers shall
retain accurate records documenting hours worked by employees and earned sick
and safe time taken and comply with all requirements under section 177.30.
(b)
An employer must allow an employee to inspect records required by this section
and relating to that employee at a reasonable time and place.
Subd. 11. Confidentiality
and nondisclosure. (a) If, in
conjunction with this section, an employer possesses (1) health or medical
information regarding an employee or an employee's family member; (2)
information pertaining to domestic abuse, sexual assault, or stalking; (3)
information that the employee has requested or obtained leave under this section;
or (4) any written or oral statement, documentation, record, or corroborating
evidence provided by the employee or an employee's family member, the employer
must treat such information as confidential.
Information given by an employee may only be disclosed by an employer if
the disclosure is requested or consented to by the employee, when ordered by a
court or administrative agency, or when otherwise required by federal or state
law.
(b) Records and documents relating to
medical certifications, recertifications, or medical histories of employees or
family members of employees created for purposes of this section or section
177.50 must be maintained as confidential medical records separate from the
usual personnel files. At the request of
the employee, the employer must destroy or
return the records required by this section that are older than three years
prior to the current calendar year.
(c) Employers may not discriminate
against any employee based on records created for the purposes of this section
or section 177.50.
Subd. 12. No
effect on more generous sick and safe time policies. (a) Nothing in this section shall be
construed to discourage employers from adopting or retaining earned sick and
safe time policies that meet or exceed, and do not otherwise conflict with, the
minimum standards and requirements provided in this section.
(b) Nothing in this section shall be
construed to limit the right of parties to a collective bargaining agreement to
bargain and agree with respect to earned sick and safe time policies or to
diminish the obligation of an employer to comply with any contract, collective
bargaining agreement, or any employment benefit program or plan that meets or
exceeds, and does not otherwise conflict with, the minimum standards and
requirements provided in this section.
(c) Employers who provide earned sick
and safe time to their employees under a paid time off policy or other paid
leave policy that meets or exceeds, and does not otherwise conflict with, the
minimum standards and requirements provided in this section are not required to
provide additional earned sick and safe time.
(d) An employer may opt to satisfy the
requirements of this section for construction industry employees by:
(1) paying at least the prevailing wage
rate as defined by section 177.42 and as calculated by the Department of Labor
and Industry; or
(2) paying at least the required rate
established in a registered apprenticeship agreement for apprentices registered
with the Department of Labor and Industry.
An employer electing this option is deemed to be in
compliance with this section for construction industry employees who receive
either at least the prevailing wage rate or the rate required in the applicable
apprenticeship agreement regardless of whether the employees are working on
private or public projects.
(e) This section does not prohibit an
employer from establishing a policy whereby employees may donate unused accrued
sick and safe time to another employee.
(f) This section does not prohibit an employer
from advancing sick and safe time to an employee before accrual by the
employee.
Subd. 13. Termination;
separation; transfer. This
section does not require financial or other reimbursement to an employee from
an employer upon the employee's termination, resignation, retirement, or other
separation from employment for accrued earned sick and safe time that has not
been used. If an employee is transferred
to a separate division, entity, or location, but remains employed by the same
employer, the employee is entitled to all earned sick and safe time accrued at
the prior division, entity, or location and is entitled to use all earned sick
and safe time as provided in this section.
When there is a separation from employment and the employee is rehired
within 180 days of separation by the same employer, previously accrued earned
sick and safe time that had not been used must be reinstated. An employee is entitled to use accrued earned
sick and safe time and accrue additional earned sick and safe time at the
commencement of reemployment.
Subd. 14. Employer
succession. (a) When a
different employer succeeds or takes the place of an existing employer, all
employees of the original employer who remain employed by the successor
employer are entitled to all earned sick and safe time accrued but not used
when employed by the original employer, and are entitled to use all earned sick
and safe time previously accrued but not used.
(b) If, at the time of transfer of the
business, employees are terminated by the original employer and hired within 30
days by the successor employer following the transfer, those employees are
entitled to all earned sick and safe time accrued but not used when employed by
the original employer, and are entitled to use all earned sick and safe time
previously accrued but not used.
Sec. 3. REPEALER.
Minnesota Statutes 2018, section
181.9413, is repealed.
Sec. 4. EFFECTIVE
DATE.
Sections 1 to 3 are effective 180 days
following final enactment.
ARTICLE 7
EARNED SICK AND SAFE TIME ENFORCEMENT
Section 1. Minnesota Statutes 2018, section 177.27, subdivision 2, is amended to read:
Subd. 2. Submission of records; penalty. The commissioner may require the employer of employees working in the state to submit to the commissioner photocopies, certified copies, or, if necessary, the originals of employment records which the commissioner deems necessary or appropriate. The records which may be required include full and correct statements in writing, including sworn statements by the employer, containing information relating to wages, hours, names, addresses, and any other information pertaining to the employer's employees and the conditions of their employment as the commissioner deems necessary or appropriate.
The commissioner may require the records to be submitted by certified mail delivery or, if necessary, by personal delivery by the employer or a representative of the employer, as authorized by the employer in writing.
The commissioner may fine the employer up
to $1,000 $10,000 for each failure to submit or deliver records
as required by this section. This
penalty is in addition to any penalties provided under section 177.32,
subdivision 1. In determining the amount
of a civil penalty under this subdivision, the appropriateness of such penalty
to the size of the employer's business and the gravity of the violation shall
be considered.
Sec. 2. Minnesota Statutes 2018, section 177.27, subdivision 4, is amended to read:
Subd. 4. Compliance
orders. The commissioner may issue
an order requiring an employer to comply with sections 177.21 to 177.435,
181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145,
181.15, 181.172, paragraph (a) or (d), 181.275, subdivision 2a, 181.722,
181.79, and 181.939 to 181.943, and 181.9445, or with any rule
promulgated under section 177.28. The
commissioner shall issue an order requiring an employer to comply with sections
177.41 to 177.435 if the violation is repeated.
For purposes of this subdivision only, a violation is repeated if at any
time during the two years that preceded the date of violation, the commissioner
issued an order to the employer for violation of sections 177.41 to 177.435 and
the order is final or the commissioner and the employer have entered into a
settlement agreement that required the employer to pay back wages that were
required by sections 177.41 to 177.435. The
department shall serve the order upon the employer or the employer's authorized
representative in person or by certified mail at the employer's place of
business. An employer who wishes to
contest the order must file written notice of objection to the order with the
commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held
in accordance with sections 14.57 to 14.69.
If, within 15 calendar days after being served with the order, the
employer fails to file a written notice of objection with the commissioner, the
order becomes a final order of the commissioner.
Sec. 3. Minnesota Statutes 2018, section 177.27, subdivision 7, is amended to read:
Subd. 7. Employer
liability. If an employer is found
by the commissioner to have violated a section identified in subdivision 4, or
any rule adopted under section 177.28, and the commissioner issues an order to
comply, the commissioner shall order the employer to cease and desist from
engaging in the violative practice and to take such affirmative steps that in
the judgment of the commissioner will effectuate the purposes of the section or
rule violated. The commissioner shall
order the employer to pay to the aggrieved parties back pay, gratuities, and
compensatory damages, less any amount actually paid to the employee by the
employer, and for an additional equal amount as liquidated damages. Any employer who is found by the commissioner
to have repeatedly or willfully violated a section or sections identified in
subdivision 4 shall be subject to a civil penalty of up to $1,000 $10,000
for each violation for each employee. In
determining the amount of a civil penalty under this subdivision, the
appropriateness of such penalty to the size of the employer's business and the
gravity of the violation shall be considered.
In addition, the commissioner may order the employer to reimburse the
department and the attorney general for all appropriate litigation and hearing
costs expended in preparation for and in conducting the contested case
proceeding, unless payment of costs would impose extreme financial hardship on
the employer. If the employer is able to
establish extreme financial hardship, then the commissioner may order the
employer to pay a percentage of the total costs that will not cause extreme
financial hardship. Costs include but
are not limited to the costs of services rendered by the attorney general,
private attorneys if engaged by the department, administrative law judges,
court reporters, and expert witnesses as well as the cost of transcripts. Interest shall accrue on, and be added to,
the unpaid balance of a commissioner's order from the date the order is signed
by the commissioner until it is paid, at an annual rate provided in section
549.09, subdivision 1, paragraph (c). The
commissioner may establish escrow accounts for purposes of distributing
damages.
Sec. 4. [177.50]
EARNED SICK AND SAFE TIME ENFORCEMENT.
Subdivision 1. Definitions. The definitions in section 181.9445,
subdivision 1, apply to this section.
Subd. 2. Rulemaking
authority. The commissioner
may adopt rules to carry out the purposes of this section and section 181.9445.
Subd. 3. Individual
remedies. In addition to any
other remedies provided by law, a person injured by a violation of section
181.9445 may bring a civil action to recover general and special damages, along
with costs, fees, and reasonable attorney fees, and may receive injunctive and
other equitable relief as determined by a court. An action to recover damages under this
subdivision must be commenced within three years of the violation of section
181.9445 that caused the injury to the employee.
Subd. 4. Grants
to community organizations. The
commissioner may make grants to community organizations for the purpose of
outreach to and education for employees regarding their rights under section
181.9445. The community-based organizations
must be selected based on their experience, capacity, and relationships in
high-violation industries. The work
under such a grant may include the creation and administration of a statewide
worker hotline.
Subd. 5. Report
to legislature. (a) The
commissioner must submit an annual report to the legislature, including to the
chairs and ranking minority members of any relevant legislative committee. The report must include, but is not limited
to:
(1)
a list of all violations of section 181.9445, including the employer involved,
and the nature of any violations; and
(2) an analysis of noncompliance with
section 181.9445, including any patterns by employer, industry, or county.
(b) A report under this section must not
include an employee's name or other identifying information, any health or
medical information regarding an employee or an employee's family member, or
any information pertaining to domestic abuse, sexual assault, or stalking of an
employee or an employee's family member.
Subd. 6. Contract
for labor or services. It is
the responsibility of all employers to not enter into any contract or agreement
for labor or services where the employer has any actual knowledge or knowledge
arising from familiarity with the normal facts and circumstances of the
business activity engaged in, or has any additional facts or information that,
taken together, would make a reasonably prudent person undertake to inquire
whether, taken together, the contractor is not complying or has failed to
comply with this section. For purposes
of this subdivision, "actual knowledge" means information obtained by
the employer that the contractor has violated this section within the past two
years and has failed to present the employer with credible evidence that such
noncompliance has been cured going forward.
EFFECTIVE
DATE. This section is
effective 180 days after final enactment.
ARTICLE 8
LABOR AND INDUSTRY POLICY
Section 1. Minnesota Statutes 2018, section 15.72, subdivision 2, is amended to read:
Subd. 2. Retainage. (a) A public contracting agency
may reserve as retainage from any progress payment on a public contract for a
public improvement an amount not to exceed five percent of the payment. A The public contracting
agency may reduce the amount of the retainage and may eliminate retainage on
any monthly contract payment if, in the agency's opinion, the work is
progressing satisfactorily.
(b) For all construction contracts greater than $5,000,000, the public contracting agency must reduce retainage to no more than 2.5 percent if the public contracting agency determines the work is 75 percent or more complete, that work is progressing satisfactorily, and all contract requirements are being met.
(c) The public contracting agency must
release any remaining retainage no later than 60 days after substantial
completion.
(d) A contractor on a public contract
for a public improvement must pay out any remaining retainage to its
subcontractors no later than ten days after receiving payment of retainage from
the public contracting agency, unless there is a dispute about the work under a
subcontract. If there is a dispute about
the work under a subcontract, the contractor must pay out retainage to any
subcontractor whose work is not involved in the dispute, and must provide a
written statement detailing the amount and reason for the withholding to the
affected subcontractor and the public agency.
(e)
A contractor may not reserve as retainage from a subcontractor an amount that
exceeds the amount reserved by the public contracting agency under this
subdivision. Upon written request of a
subcontractor who has not been paid for work in accordance with section
16A.1245 or 471.425, subdivision 4a, the public contracting agency shall notify
the subcontractor of a progress payment, retainage payment, or final payment
made to the contractor. A contractor
must include in any contract with a subcontractor the name, address, and
telephone number of a responsible official at the public contracting agency
that may be contacted for purposes of making a request under this paragraph.
(f) After substantial completion, a public contracting agency may withhold no more than:
(1) 250 percent of the value of
incomplete or defective work; and
(2) one percent of the value of the
contract or $500, whichever is greater, pending completion and submission of
all final paperwork by the contractor, provided that an amount withheld under
this clause may not exceed $10,000.
If the public contracting agency withholds payment under
this paragraph, the public contracting agency must promptly provide a written
statement detailing the amount and basis of withholding to the contractor. The public contracting agency must provide a
copy of this statement to any subcontractor that requests it. Any amounts withheld for incomplete or
defective work shall be paid within 45 days after the completion of the work. Any amounts withheld under clause (1) must be
paid within 45 days after completion of the work. Any amounts withheld under clause (2) must be
paid within 45 days after submission of all final paperwork.
(g) As used in this subdivision,
"substantial completion" shall be determined as provided in section
541.051, subdivision 1, paragraph (a). For
construction, reconstruction, or improvement of streets and highways, including
bridges, substantial completion means the date when construction-related
traffic devices and ongoing inspections are no longer required.
(h) The maximum retainage percentage
allowed for a building and construction contract is the retainage percentage
withheld by the public contracting agency from the contractor.
(i) Withholding retainage for
warranties or warranty work is prohibited.
EFFECTIVE
DATE. This section applies to
agreements entered into on or after August 1, 2019.
Sec. 2. Minnesota Statutes 2018, section 175.46, subdivision 3, is amended to read:
Subd. 3. Duties. (a) The commissioner shall:
(1) approve youth skills training programs that train student learners for careers in high-growth, high-demand occupations that provide:
(i) that the work of the student learner in the occupations declared particularly hazardous shall be incidental to the training;
(ii) that the work shall be intermittent and for short periods of time, and under the direct and close supervision of a qualified and experienced person;
(iii) that safety instruction shall be provided to the student learner and may be given by the school and correlated by the employer with on-the-job training;
(iv) a schedule of organized and progressive work processes to be performed on the job;
(v) a schedule of wage rates in compliance with section 177.24; and
(vi) whether the student learner will obtain secondary school academic credit, postsecondary credit, or both, for the training program;
(2) approve occupations and maintain a list of approved occupations for programs under this section;
(3) issue requests for proposals for grants;
(4) work with individuals representing industry and labor to develop new youth skills training programs;
(5) develop model program guides;
(6) monitor youth skills training programs;
(7) provide technical assistance to local partnership grantees;
(8) work with providers to identify paths for receiving postsecondary credit for participation in the youth skills training program; and
(9) approve other activities as necessary to implement the program.
(b) The commissioner shall collaborate with stakeholders, including, but not limited to, representatives of secondary school institutions, career and technical education instructors, postsecondary institutions, businesses, and labor, in developing youth skills training programs, and identifying and approving occupations and competencies for youth skills training programs.
Sec. 3. Minnesota Statutes 2018, section 175.46, subdivision 13, is amended to read:
Subd. 13. Grant
awards. (a) The commissioner
shall award grants to local partnerships for youth skills training programs
that train student learners for careers in high-growth, high-demand occupations. Grant awards may not exceed $100,000 per
local partnership grant.
(b) A local partnership awarded a grant under this section must use the grant award for any of the following implementation and coordination activities:
(1) recruiting additional employers to provide on-the-job training and supervision for student learners and providing technical assistance to those employers;
(2) recruiting students to participate in the local youth skills training program, monitoring the progress of student learners participating in the program, and monitoring program outcomes;
(3) coordinating youth skills training activities within participating school districts and among participating school districts, postsecondary institutions, and employers;
(4) coordinating academic, vocational and occupational learning, school-based and work-based learning, and secondary and postsecondary education for participants in the local youth skills training program;
(5) coordinating transportation for student learners participating in the local youth skills training program; and
(6) any other implementation or coordination activity that the commissioner may direct or permit the local partnership to perform.
(b) (c) Grant awards may not
be used to directly or indirectly pay the wages of a student learner.
Sec. 4. Minnesota Statutes 2018, section 176.1812, subdivision 2, is amended to read:
Subd. 2. Filing and review. (a) A copy of the agreement and the approximate number of employees who will be covered under it must be filed with the commissioner. Within 21 days of receipt of an agreement, the commissioner shall review the agreement for compliance with this section and the benefit provisions of this chapter and notify the parties of any additional information required or any recommended modification that would bring the agreement into compliance. Upon receipt of any requested information or modification, the commissioner must notify the parties within 21 days whether the agreement is in compliance with this section and the benefit provisions of this chapter.
(b) After an agreement is approved by
the commissioner under paragraph (a), a qualified employer may join or withdraw
from a qualified group of employers without commissioner review or approval. The commissioner must be notified within 30
days when a qualified employer joins or withdraws from a qualified group of
employers.
(c) In order for any agreement to
remain in effect, it must provide for a timely and accurate method of reporting
to the commissioner necessary information regarding service cost and
utilization the individual claims covered by the agreement and
claim-specific dispute resolution data, in the form and manner prescribed by
the commissioner. Dispute resolution
data includes information about facilitation, mediation, and arbitration and
shall be provided annually to the commissioner to enable the commissioner
to annually report aggregate dispute data to the legislature. The information provided to the
commissioner must include aggregate data on the:
(i) person hours and payroll covered by
agreements filed;
(ii) number of claims filed;
(iii) average cost per claim;
(iv) number of litigated claims,
including the number of claims submitted to arbitration, the Workers'
Compensation Court of Appeals, the Office of Administrative Hearings, the
district court, the Minnesota Court of Appeals or the supreme court;
(v) number of contested claims resolved
prior to arbitration;
(vi) projected incurred costs and
actual costs of claims;
(vii) employer's safety history;
(viii) number of workers participating
in vocational rehabilitation; and
(ix) number of workers participating in
light-duty programs.
EFFECTIVE DATE. Paragraphs (a) and (b) are effective June 1,
2019. Paragraph (c) is effective August
1, 2020.
Sec. 5. Minnesota Statutes 2018, section 176.231, subdivision 1, is amended to read:
Subdivision 1. Time limitation. (a) Where death or serious injury occurs to an employee during the course of employment, the employer shall report the injury or death to the commissioner and insurer within 48 hours after its occurrence. Where any other injury occurs which wholly or partly incapacitates the employee from performing labor or service for more than three calendar days, the employer shall report the injury to the insurer on a form prescribed by the commissioner within ten days from its occurrence. An insurer and self-insured employer shall report the injury to the commissioner no later than 14 days from its occurrence. Where an injury has once been reported but subsequently death ensues, the employer shall report the death to the commissioner and insurer within 48 hours after the employer receives notice of this fact. An employer who provides notice to the Occupational Safety and Health Division of the Department of Labor and Industry of a fatality within the eight-hour time frame required by law, or of an inpatient hospitalization within the 24-hour time frame required by law, has satisfied the employer's obligation under this section.
(b) At the time an injury is required
to be reported to the commissioner, the insurer or self-insured employer must
also specify whether the injury is covered by a collective bargaining agreement
approved by the commissioner under section 176.1812. Notice must be provided in the format and
manner prescribed by the commissioner.
EFFECTIVE
DATE. This section is
effective August 1, 2020.
Sec. 6. Minnesota Statutes 2018, section 179.86, subdivision 1, is amended to read:
Subdivision 1. Definition. For the purpose of this section,
"employer" means:
(1) an employer in the meatpacking
industry. whose employees routinely pack, can, or otherwise process
poultry or meat for human consumption; or
(2) an employer whose employees routinely
clean or sterilize meat processing or poultry processing equipment used by an
employer as defined in clause (1).
Sec. 7. Minnesota Statutes 2018, section 179.86, subdivision 3, is amended to read:
Subd. 3. Information
provided to employee by employer. (a)
An employer must provide an explanation in an employee's native language
of the employee's rights and duties as an employee either person to person or
through written materials that, at a minimum, include:
(1) a complete description of the salary and benefits plans as they relate to the employee;
(2) a job description for the employee's position;
(3) a description of leave policies;
(4) a description of the work hours and work hours policy; and
(5) a description of the occupational hazards known to exist for the position.
(b) The explanation must also include information on the following employee rights as protected by state or federal law and a description of where additional information about those rights may be obtained:
(1) the right to organize and bargain collectively and refrain from organizing and bargaining collectively;
(2) the right to a safe workplace; and
(3) the right to be free from discrimination.
(c) The explanation must be provided in a
language the employee speaks fluently.
Sec. 8. Minnesota Statutes 2018, section 181.635, subdivision 2, is amended to read:
Subd. 2. Recruiting;
required disclosure. An employer
shall provide written disclosure of the terms and conditions of employment to a
person at the time it recruits the person to relocate to work in the food
processing industry. The disclosure requirement does not apply to
an exempt employee as defined in United States Code, title 29, section
213(a)(1). The disclosure must be
written in English and Spanish, a language the employee speaks
fluently in addition to any other languages preferred by the employer. The disclosure must be dated and signed
by the employer and the person recruited, and maintained by the employer for
two years. If the employer has any
reason to doubt the employee's ability to read, the employer must read the
disclosure out loud to the employee in a language the employee speaks fluently
before the disclosure is signed. A
copy of the signed and completed disclosure must be delivered immediately to
the recruited person. The disclosure may
not be construed as an employment contract.
Sec. 9. Minnesota Statutes 2018, section 182.659, subdivision 8, is amended to read:
Subd. 8. Protection
from subpoena; data. Neither the
commissioner nor any employee of the department, including those employees
of the Department of Health providing services to the Department of Labor and
Industry, pursuant to section 182.67, subdivision 1, is subject to subpoena
for purposes of inquiry into any occupational safety and health inspection
except in enforcement proceedings brought under this chapter. Data that identify individuals who provide
data to the department as part of an investigation conducted under this chapter
shall be private.
Sec. 10. Minnesota Statutes 2018, section 182.666, subdivision 1, is amended to read:
Subdivision 1. Willful
or repeated violations. Any employer
who willfully or repeatedly violates the requirements of section 182.653, or
any standard, rule, or order adopted under the authority of the commissioner as
provided in this chapter, may be assessed a fine not to exceed $70,000 $129,335
for each violation. The minimum fine for
a willful violation is $5,000 $9,240.
EFFECTIVE
DATE. This section is
effective July 1, 2019.
Sec. 11. Minnesota Statutes 2018, section 182.666, subdivision 2, is amended to read:
Subd. 2. Serious
violations. Any employer who has
received a citation for a serious violation of its duties under section
182.653, or any standard, rule, or order adopted under the authority of the
commissioner as provided in this chapter, shall be assessed a fine not to
exceed $7,000 $12,935 for each violation. If a serious violation under section 182.653,
subdivision 2, causes or contributes to the death of an employee, the employer
shall be assessed a fine of up to $25,000 for each violation.
EFFECTIVE
DATE. This section is effective
July 1, 2019.
Sec. 12. Minnesota Statutes 2018, section 182.666, subdivision 3, is amended to read:
Subd. 3. Nonserious
violations. Any employer who has
received a citation for a violation of its duties under section 182.653,
subdivisions 2 to 4, where the violation is specifically determined not to be
of a serious nature as provided in section 182.651, subdivision 12, may be
assessed a fine of up to $7,000 $12,935 for each violation.
EFFECTIVE
DATE. This section is
effective July 1, 2019.
Sec. 13. Minnesota Statutes 2018, section 182.666, subdivision 4, is amended to read:
Subd. 4. Failure
to correct a violation. Any employer
who fails to correct a violation for which a citation has been issued under
section 182.66 within the period permitted for its correction, which period
shall not begin to run until the date of the final order of the commissioner in
the case of any review proceedings under this chapter initiated by the employer
in good faith and not solely for delay or avoidance of penalties, may be
assessed a fine of not more than $7,000 $12,935 for each day
during which the failure or violation continues.
EFFECTIVE
DATE. This section is
effective July 1, 2019.
Sec. 14. Minnesota Statutes 2018, section 182.666, subdivision 5, is amended to read:
Subd. 5. Posting
violations. Any employer who
violates any of the posting requirements, as prescribed under this chapter,
except those prescribed under section 182.661, subdivision 3a, shall be
assessed a fine of up to $7,000 $12,935 for each violation.
EFFECTIVE
DATE. This section is
effective July 1, 2019.
Sec. 15. Minnesota Statutes 2018, section 182.666, is amended by adding a subdivision to read:
Subd. 6a. Increases
for inflation. (a) No later
than August 31 of each year, beginning in 2019, the commissioner shall
determine the percentage increase in the rate of inflation, as measured by the
implicit price deflator, national data for personal consumption expenditures as
determined by the United States Department of Commerce, Bureau of Economic
Analysis during the 12-month period immediately preceding that August or, if
that data is unavailable, during the most recent 12-month period for which data
is available. The fines in subdivisions
1, 2, 3, 4, and 5, except for the fine for a serious violation under section
182.653, subdivision 2, that causes or contributes to the death of an employee,
are increased by the lesser of (1) 2.5 percent, rounded to the nearest dollar
amount evenly divisible by ten, or (2) the percentage calculated by the
commissioner, rounded to the nearest dollar amount evenly divisible by ten.
(b) The fines increased under paragraph
(a) shall not be increased to an amount greater than the corresponding federal
penalties for the specified violations promulgated in United States Code, title
29, section, 666, subsections (a)-(d), (i), as amended through November 5,
1990, and adjusted according to United States Code, title 28, section 2461,
note (Federal Civil Penalties Inflation Adjustment), as amended through November
2, 2015.
(c) A fine must not be reduced under
this subdivision. A fine increased under
this subdivision takes effect on the next January 1.
EFFECTIVE
DATE. This section is
effective July 1, 2019.
Sec. 16. Minnesota Statutes 2018, section 326B.082, subdivision 6, is amended to read:
Subd. 6. Notices of violation. (a) The commissioner may issue a notice of violation to any person who the commissioner determines has committed a violation of the applicable law. The notice of violation must state a summary of the facts that constitute the violation and the applicable law violated. The notice of violation may require the person to correct the violation. If correction is required, the notice of violation must state the deadline by which the violation must be corrected.
(b) The commissioner shall issue the notice of violation by:
(1) serving the notice of violation on the property owner or on the person who committed the violation; or
(2) posting the notice of violation at the location where the violation occurred.
(c) If the person to whom the commissioner
has issued the notice of violation believes the notice was issued in error,
then the person may request reconsideration of the parts of the notice that the
person believes are in error. The
request for reconsideration must be in writing and must be served on or,
faxed, or emailed to the commissioner at the address or,
fax number, or email address specified in the notice of violation by
the tenth day after the commissioner issued the notice of violation. The date on which a request for
reconsideration is served by mail shall be the postmark date on the envelope in
which the request for reconsideration is mailed. If the person does not serve or,
fax, or email a written request for reconsideration or if the person's
written request for reconsideration is not served on or faxed to the
commissioner by the tenth day after the commissioner issued the notice of
violation, the notice of violation shall become a final order of the
commissioner and will not be subject to review by any court or agency. The request for reconsideration must:
(1) specify which parts of the notice of violation the person believes are in error;
(2) explain why the person believes the parts are in error; and
(3) provide documentation to support the request for reconsideration.
The commissioner shall respond in writing to requests for reconsideration made under this paragraph within 15 days after receiving the request. A request for reconsideration does not stay a requirement to correct a violation as set forth in the notice of violation. After reviewing the request for reconsideration, the commissioner may affirm, modify, or rescind the notice of violation. The commissioner's response to a request for reconsideration is final and shall not be reviewed by any court or agency.
Sec. 17. Minnesota Statutes 2018, section 326B.082, subdivision 8, is amended to read:
Subd. 8. Hearings
related to administrative orders. (a)
Within 30 days after the commissioner issues an administrative order or within 20 days after the commissioner issues the
notice under section 326B.083, subdivision 3, paragraph (b), clause (3),
the person to whom the administrative order or notice is issued may request an
expedited hearing to review the commissioner's order or notice. The request for hearing must be in writing
and must be served on or, faxed, or emailed to the
commissioner at the address or, fax number, or email address
specified in the order or notice. If the
person does not request a hearing or if the person's written request for
hearing is not served on or, faxed, or emailed to the
commissioner by the 30th day after the commissioner issues the administrative
order or the 20th day after the commissioner issues the notice under section
326B.083, subdivision 3, paragraph (b), clause (3), the order will become a
final order of the commissioner and will not be subject to review by any court
or agency. The date on which a request
for hearing is served by mail shall be the postmark date on the envelope in
which the request for hearing is mailed.
The hearing request must specifically state the reasons for seeking
review of the order or notice. The
person to whom the order or notice is issued and the commissioner are the
parties to the expedited hearing. The
commissioner must notify the person to whom the order or notice is issued of
the time and place of the hearing at least 15 days before the hearing. The expedited hearing must be held within 45
days after a request for hearing has been received by the commissioner unless
the parties agree to a later date.
(b) Parties may submit written arguments if permitted by the administrative law judge. All written arguments must be submitted within ten days following the completion of the hearing or the receipt of any late-filed exhibits that the parties and the administrative law judge have agreed should be received into the record, whichever is later. The hearing shall be conducted under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this subdivision. The Office of Administrative Hearings may, in consultation with the agency, adopt rules specifically applicable to cases under this section.
(c) The administrative law judge shall issue a report making findings of fact, conclusions of law, and a recommended order to the commissioner within 30 days following the completion of the hearing, the receipt of late‑filed exhibits, or the submission of written arguments, whichever is later.
(d) If the administrative law judge makes a finding that the hearing was requested solely for purposes of delay or that the hearing request was frivolous, the commissioner may add to the amount of the penalty the costs charged to the department by the Office of Administrative Hearings for the hearing.
(e) If a hearing has been held, the commissioner shall not issue a final order until at least five days after the date of the administrative law judge's report. Any person aggrieved by the administrative law judge's report may, within those five days, serve written comments to the commissioner on the report and the commissioner shall consider and enter the comments in the record. The commissioner's final order shall comply with sections 14.61, subdivision 2, and 14.62, subdivisions 1 and 2a, and may be appealed in the manner provided in sections 14.63 to 14.69.
Sec. 18. Minnesota Statutes 2018, section 326B.082, subdivision 12, is amended to read:
Subd. 12. Issuance of licensing orders; hearings related to licensing orders. (a) If the commissioner determines that a permit, license, registration, or certificate should be conditioned, limited, suspended, revoked, or denied under subdivision 11, or that the permit holder, licensee, registrant, or certificate holder should be censured under subdivision 11, then the commissioner shall issue to the person an order denying, conditioning, limiting, suspending, or revoking the person's permit, license, registration, or certificate, or censuring the permit holder, licensee, registrant, or certificate holder.
(b) Any order issued under paragraph (a) may include an assessment of monetary penalties and may require the person to cease and desist from committing the violation or committing the act, conduct, or practice set out in subdivision 11, paragraph (b). The monetary penalty may be up to $10,000 for each violation or act, conduct, or practice committed by the person. The procedures in section 326B.083 must be followed when issuing orders under paragraph (a).
(c) The permit holder, licensee, registrant,
certificate holder, or applicant to whom the commissioner issues an order under
paragraph (a) shall have 30 days after issuance of the order to request a
hearing. The request for hearing must be
in writing and must be served on or, faxed, or emailed to
the commissioner at the address or, fax number, or email
address specified in the order by the 30th day after issuance of the order. If the person does not request a hearing or
if the person's written request for hearing is not served on or, faxed,
or emailed to the commissioner by the 30th day after issuance of the
order, the order shall become a final order of the commissioner and will not be
subject to review by any court or agency.
The date on which a request for hearing is served by mail shall be the
postmark date on the envelope in which the request for hearing is mailed. If the person submits to the commissioner a
timely request for hearing, the order is stayed unless the commissioner
summarily suspends the license, registration, certificate, or permit under
subdivision 13, and a contested case hearing shall be held in accordance with
chapter 14.
Sec. 19. Minnesota Statutes 2018, section 326B.103, subdivision 11, is amended to read:
Subd. 11. Public
building. "Public building"
means a building and its grounds the cost of which is paid for by the state or
a state agency regardless of its cost, and a school district building
project for a school district or charter school building project
the cost of which is $100,000 or more.
Sec. 20. Minnesota Statutes 2018, section 326B.106, subdivision 9, is amended to read:
Subd. 9.
Accessibility. (a) Public
buildings. The code must provide
for making require new public buildings constructed or remodeled
after July 1, 1963, and remodeled portions of existing public buildings
to be accessible to and usable by persons with disabilities, although
this does not require the remodeling of public buildings solely to provide
accessibility and usability to persons with disabilities when remodeling would
not otherwise be undertaken.
(b) Leased space. No agency of the state may lease space for agency operations in a non-state-owned building unless the building satisfies the requirements of the State Building Code for accessibility by persons with disabilities, or is eligible to display the state symbol of accessibility. This limitation applies to leases of 30 days or more for space of at least 1,000 square feet.
(c) Meetings or conferences. Meetings or conferences for the public or for state employees which are sponsored in whole or in part by a state agency must be held in buildings that meet the State Building Code requirements relating to accessibility for persons with disabilities. This subdivision does not apply to any classes, seminars, or training programs offered by the Minnesota State Colleges and Universities or the University of Minnesota. Meetings or conferences intended for specific individuals none of whom need the accessibility features for persons with disabilities specified in the State Building Code need not comply with this subdivision unless a person with a disability gives reasonable advance notice of an intent to attend the meeting or conference. When sign language interpreters will be provided, meetings or conference sites must be chosen which allow participants who are deaf or hard-of-hearing to see the sign language interpreters clearly.
(d) Exemptions. The commissioner may grant an exemption from the requirements of paragraphs (b) and (c) in advance if an agency has demonstrated that reasonable efforts were made to secure facilities which complied with those requirements and if the selected facilities are the best available for access for persons with disabilities. Exemptions shall be granted using criteria developed by the commissioner in consultation with the Council on Disability.
(e) Symbol indicating access. The wheelchair symbol adopted by Rehabilitation International's Eleventh World Congress is the state symbol indicating buildings, facilities, and grounds which are accessible to and usable by persons with disabilities. In the interests of uniformity, this symbol is the sole symbol for display in or on all public or private buildings, facilities, and grounds which qualify for its use. The secretary of state shall obtain the symbol and keep it on file. No building, facility, or grounds may display the symbol unless it is in compliance with the rules adopted by the commissioner under subdivision 1. Before any rules are proposed for adoption under this paragraph, the commissioner shall consult with the Council on Disability. Rules adopted under this paragraph must be enforced in the same way as other accessibility rules of the State Building Code.
Sec. 21. Minnesota Statutes 2018, section 326B.46, is amended by adding a subdivision to read:
Subd. 7. License
number to be displayed. Any
vehicle used by a plumbing contractor or restricted plumbing contractor while
performing plumbing work for which a contractor's license is required shall
have the contractor's name and license number as it appears on the contractor's
license in contrasting color with characters at least three inches high and
one-half inch in width affixed to each side of the vehicle.
Sec. 22. Minnesota Statutes 2018, section 326B.475, subdivision 4, is amended to read:
Subd. 4. Renewal;
use period for license. (a) A
restricted master plumber and restricted journeyworker plumber license must be
renewed for as long as that licensee engages in the plumbing trade. Notwithstanding section 326B.094, failure to
renew a restricted master plumber and restricted journeyworker plumber license
within 12 months after the expiration date will result in permanent forfeiture
of the restricted master plumber and restricted journeyworker plumber license.
(b) The commissioner shall in a manner
determined by the commissioner, without the need for any rulemaking under
chapter 14, phase in the renewal of restricted master plumber and restricted
journeyworker plumber licenses from one year to two years. By June 30, 2011, all restricted master
plumber and restricted journeyworker plumber licenses shall be two-year
licenses.
Sec. 23. Minnesota Statutes 2018, section 326B.802, subdivision 15, is amended to read:
Subd. 15. Special skill. "Special skill" means one of the following eight categories:
(a) Excavation. Excavation includes work in any of the following areas:
(1) excavation;
(2) trenching;
(3) grading; and
(4) site grading.
(b) Masonry and concrete. Masonry and concrete includes work in any of the following areas:
(1) drain systems;
(2) poured walls;
(3) slabs and poured-in-place footings;
(4) masonry walls;
(5) masonry fireplaces;
(6) masonry veneer; and
(7) water resistance and waterproofing.
(c) Carpentry. Carpentry includes work in any of the following areas:
(1) rough framing;
(2) finish carpentry;
(3) doors, windows, and skylights;
(4) porches and decks, excluding footings;
(5) wood foundations; and
(6) drywall installation, excluding taping and finishing.
(d) Interior finishing. Interior finishing includes work in any of the following areas:
(1) floor covering;
(2) wood floors;
(3) cabinet and counter top installation;
(4) insulation and vapor barriers;
(5) interior or exterior painting;
(6) ceramic, marble, and quarry tile;
(7) ornamental guardrail and installation of prefabricated stairs; and
(8) wallpapering.
(e) Exterior finishing. Exterior finishing includes work in any of the following areas:
(1) siding;
(2) soffit, fascia, and trim;
(3) exterior plaster and stucco;
(4) painting; and
(5) rain carrying systems, including gutters and down spouts.
(f) Drywall and plaster. Drywall and plaster includes work in any of the following areas:
(1) installation;
(2) taping;
(3) finishing;
(4) interior plaster;
(5) painting; and
(6) wallpapering.
(g) Residential roofing. Residential roofing includes work in any of the following areas:
(1) roof coverings;
(2) roof sheathing;
(3) roof weatherproofing and insulation; and
(4) repair of roof support system, but not
construction of new roof support system.; and
(5) penetration of roof covering for
purposes of attaching a solar photovoltaic system.
(h) General installation specialties. Installation includes work in any of the following areas:
(1) garage doors and openers;
(2) pools, spas, and hot tubs;
(3) fireplaces and wood stoves;
(4) asphalt paving and seal coating; and
(5) ornamental guardrail and prefabricated
stairs.; and
(6) assembly of the support system for
a solar photovoltaic system.
Sec. 24. Minnesota Statutes 2018, section 326B.815, subdivision 1, is amended to read:
Subdivision 1. Fees. (a) For the purposes of calculating fees
under section 326B.092, an initial or renewed residential contractor,
residential remodeler, or residential roofer license is a business license. Notwithstanding section 326B.092, the
licensing fee for manufactured home installers under section 327B.041 is $300
$180 for a three-year period.
(b) All initial and renewal licenses, except for manufactured home installer licenses, shall be effective for two years and shall expire on March 31 of the year after the year in which the application is made.
(c) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of residential contractor, residential remodeler, and residential roofer licenses from one year to two years. By June 30, 2011, all renewed residential contractor, residential remodeler, and residential roofer licenses shall be two-year licenses.
Sec. 25. Minnesota Statutes 2018, section 326B.821, subdivision 21, is amended to read:
Subd. 21. Residential building contractor, remodeler, and roofer education. (a) Each licensee must, during each continuing education reporting period, complete and report one hour of continuing education relating to energy codes or energy conservation measures applicable to residential buildings and one hour of business management strategies applicable to residential construction businesses.
(b) Immediately following the adoption date of a new residential code, the commissioner may prescribe that up to seven of the required 14 hours of continuing education credit per licensure period include education hours specifically designated to instruct licensees on new or existing State Building Code provisions.
Sec. 26. Minnesota Statutes 2018, section 326B.84, is amended to read:
326B.84
GROUNDS FOR SANCTIONS.
The commissioner may use any enforcement provision in section 326B.082 against an applicant for, qualifying person of, or holder of a license or certificate of exemption, or any individual or entity who is required by law to hold a license or certificate of exemption, if the individual, entity, applicant, licensee, certificate of exemption holder, qualifying person, or owner, officer, member, managing employee, or affiliate of the applicant, licensee, or certificate of exemption holder:
(1) has filed an application for licensure or a certificate of exemption which is incomplete in any material respect or contains any statement which, in light of the circumstances under which it is made, is false or misleading with respect to any material fact;
(2) has engaged in a fraudulent, deceptive, or dishonest practice;
(3) is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the business;
(4) has failed to reasonably supervise employees, agents, subcontractors, or salespersons, or has performed negligently or in breach of contract, so as to cause injury or harm to the public;
(5) has violated or failed to comply with any provision of sections 326B.802 to 326B.885, any rule or order under sections 326B.802 to 326B.885, or any other law, rule, or order related to the duties and responsibilities entrusted to the commissioner;
(6) has been convicted of a violation of the State Building Code or has refused to comply with a correction order issued by a certified building official, or in local jurisdictions that have not adopted the State Building Code has refused to correct a violation of the State Building Code when the violation has been documented by a certified building official;
(7) has failed to use the proceeds of any payment made to the licensee for the construction of, or any improvement to, residential real estate, as defined in section 326B.802, subdivision 13, for the payment of labor, skill, material, and machinery contributed to the construction or improvement, knowing that the cost of any labor performed, or skill, material, or machinery furnished for the improvement remains unpaid;
(8) has not furnished to the person making payment either a valid lien waiver as to any unpaid labor performed, or skill, material, or machinery furnished for an improvement, or a payment bond in the basic amount of the contract price for the improvement conditioned for the prompt payment to any person or persons entitled to payment;
(9) has engaged in an act or practice that results in compensation to an aggrieved owner or lessee from the contractor recovery fund pursuant to section 326B.89, unless:
(i) the applicant or licensee has repaid the fund twice the amount paid from the fund, plus interest at the rate of 12 percent per year; and
(ii) the applicant or licensee has obtained a surety bond in the amount of at least $40,000, issued by an insurer authorized to transact business in this state;
(10) has engaged in bad faith, unreasonable delays, or frivolous claims in defense of a civil lawsuit or arbitration arising out of their activities as a licensee or certificate of exemption holder under this chapter;
(11) has had a judgment entered against them for failure to make payments to employees, subcontractors, or suppliers, that the licensee has failed to satisfy and all appeals of the judgment have been exhausted or the period for appeal has expired;
(12) if unlicensed, has obtained a building permit by the fraudulent use of a fictitious license number or the license number of another, or, if licensed, has knowingly allowed an unlicensed person to use the licensee's license number for the purpose of fraudulently obtaining a building permit; or has applied for or obtained a building permit for an unlicensed person;
(13) has made use of a forged mechanic's lien waiver under chapter 514;
(14) has provided false, misleading, or incomplete information to the commissioner or has refused to allow a reasonable inspection of records or premises;
(15) has engaged in an act or practice whether or not the act or practice directly involves the business for which the person is licensed, that demonstrates that the applicant or licensee is untrustworthy, financially irresponsible, or otherwise incompetent or unqualified to act under the license granted by the commissioner; or
(16) has failed to comply with requests for information, documents, or other requests from the department within the time specified in the request or, if no time is specified, within 30 days of the mailing of the request by the department.
Sec. 27. Minnesota Statutes 2018, section 327.31, is amended by adding a subdivision to read:
Subd. 23. Modular
home. "Modular
home" means a building or structural unit of closed construction that has
been substantially manufactured or constructed, in whole or in part, at an
off-site location, with the final assembly occurring on site alone or with
other units and attached to a foundation designed to the State Building Code
and occupied as a single-family dwelling.
Modular home construction must comply with applicable standards adopted
in Minnesota Rules, chapter 1360 or 1361.
Sec. 28. [327.335]
PLACEMENT OF MODULAR HOMES.
A modular home may be placed in a
manufactured home park as defined in section 327.14, subdivision 3. A modular home placed in a manufactured home
park is a manufactured home for purposes of chapters 327C and 504B and all
rights, obligations, and duties under those chapters apply. A modular home may not be placed in a
manufactured home park without prior written approval of the park owner. Nothing in this section shall be construed to
inhibit the application of zoning, subdivision, architectural, or esthetic
requirements pursuant to chapters 394 and 462 that otherwise apply to
manufactured homes and manufactured home parks.
A modular home placed in a manufactured home park under this section
shall be assessed and taxed as a manufactured home.
Sec. 29. Minnesota Statutes 2018, section 327B.041, is amended to read:
327B.041
MANUFACTURED HOME INSTALLERS.
(a) Manufactured home installers are subject to all of the fees in section 326B.092 and the requirements of sections 326B.802 to 326B.885, except for the following:
(1) manufactured home installers are not subject to the continuing education requirements of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education requirements established in rules adopted under section 327B.10;
(2) the examination requirement of section 326B.83, subdivision 3, for manufactured home installers shall be satisfied by successful completion of a written examination administered and developed specifically for the examination of manufactured home installers. The examination must be administered and developed by the commissioner. The commissioner and the state building official shall seek advice on the grading, monitoring, and updating of examinations from the Minnesota Manufactured Housing Association;
(3) a local government unit may not place a surcharge on a license fee, and may not charge a separate fee to installers;
(4) a dealer or distributor who does not install or repair manufactured homes is exempt from licensure under sections 326B.802 to 326B.885;
(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply; and
(6) manufactured home installers are not subject to the contractor recovery fund in section 326B.89.
(b) The commissioner may waive all or part of the requirements for licensure as a manufactured home installer for any individual who holds an unexpired license or certificate issued by any other state or other United St