STATE OF
MINNESOTA
NINETY-SECOND
SESSION - 2021
_____________________
FORTY-THIRD
DAY
Saint Paul, Minnesota, Tuesday, April 20, 2021
The House of Representatives convened at 10:00
a.m. and was called to order by Andrew Carlson, Speaker pro tempore.
Prayer was offered by Imam Mustapha
Hammida, Eastern Twin Cities Islamic Center, Afton and Woodbury Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Acomb
Agbaje
Akland
Albright
Anderson
Backer
Bahner
Bahr
Baker
Becker-Finn
Bennett
Berg
Bernardy
Bierman
Bliss
Boe
Boldon
Burkel
Carlson
Christensen
Daniels
Daudt
Davids
Davnie
Demuth
Dettmer
Drazkowski
Ecklund
Edelson
Elkins
Erickson
Feist
Fischer
Franke
Franson
Frazier
Frederick
Freiberg
Garofalo
Gomez
Green
Greenman
Grossell
Gruenhagen
Haley
Hamilton
Hansen, R.
Hanson, J.
Hassan
Hausman
Heinrich
Heintzeman
Her
Hertaus
Hollins
Hornstein
Howard
Huot
Igo
Johnson
Jordan
Jurgens
Keeler
Kiel
Klevorn
Koegel
Kotyza-Witthuhn
Koznick
Kresha
Lee
Liebling
Lillie
Lippert
Lislegard
Long
Lucero
Lueck
Mariani
Marquart
Masin
McDonald
Mekeland
Miller
Moller
Moran
Morrison
Mortensen
Mueller
Munson
Murphy
Nash
Nelson, M.
Nelson, N.
Neu Brindley
Noor
Novotny
O'Driscoll
Olson, B.
Olson, L.
O'Neill
Pelowski
Petersburg
Pfarr
Pierson
Pinto
Poston
Pryor
Quam
Raleigh
Rasmusson
Reyer
Richardson
Robbins
Sandell
Sandstede
Schomacker
Schultz
Scott
Stephenson
Sundin
Swedzinski
Theis
Thompson
Torkelson
Urdahl
Vang
Wazlawik
West
Winkler
Wolgamott
Xiong, J.
Xiong, T.
Youakim
Spk. Hortman
A quorum was present.
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. 959 and
H. F. No. 1076, which had been referred to the Chief Clerk for
comparison, were examined and found to be not identical.
Hansen, R., moved that
S. F. No. 959 be substituted for H. F. No. 1076
and that the House File be indefinitely postponed. The motion prevailed.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Nelson, M., from the Committee on State Government Finance and Elections to which was referred:
H. F. No. 600, A bill for an act relating to cannabis; establishing the Cannabis Management Board; establishing advisory councils; requiring reports relating to cannabis use and sales; legalizing and limiting the possession and use of cannabis by adults; providing for the licensing, inspection, and regulation of cannabis businesses; requiring testing of cannabis and cannabis products; requiring labeling of cannabis and cannabis products; limiting the advertisement of cannabis, cannabis products, and cannabis businesses; providing for the cultivation of cannabis in private residences; transferring regulatory authority for the medical cannabis program; taxing the sale of adult-use cannabis; establishing grant and loan programs; amending criminal penalties; establishing expungement procedures for certain individuals; establishing labor standards for the use of cannabis by employees and testing of employees; creating a civil cause of action for certain nuisances; amending the scheduling of marijuana and tetrahydrocannabinols; classifying data; appropriating money; amending Minnesota Statutes 2020, sections 13.411, by adding a subdivision; 13.871, by adding a subdivision; 152.02, subdivisions 2, 4; 152.022, subdivisions 1, 2; 152.023, subdivisions 1, 2; 152.024, subdivision 1; 152.025, subdivisions 1, 2; 181.938, subdivision 2; 181.950, subdivisions 2, 4, 5, 8, 13, by adding a subdivision; 181.951, by adding subdivisions; 181.952, by adding a subdivision; 181.953; 181.954; 181.955; 181.957, subdivision 1; 244.05, subdivision 2; 256.01, subdivision 18c; 256D.024, subdivision 1; 256J.26, subdivision 1; 290.0132, subdivision 29; 290.0134, subdivision 19; 297A.67, subdivisions 2, 7; 297A.99, by adding a subdivision; 297D.01, subdivision 2; 297D.04; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; 297D.11; 609.135, subdivision 1; 609.531, subdivision 1; 609.5311, subdivision 1; 609.5314, subdivision 1; 609.5316, subdivision 2; 609.5317, subdivision 1; 609A.01; 609A.03, subdivisions 5, 9; proposing coding for new law in Minnesota Statutes, chapters 17; 28A; 34A; 116J; 116L; 120B; 144; 152; 289A; 295; 604; 609A; proposing coding for new law as Minnesota Statutes, chapter 342; repealing Minnesota Statutes 2020, sections 152.027, subdivisions 3, 4; 152.22, subdivisions 1, 2, 3, 4, 5, 5a, 5b, 6, 7, 8, 9, 10, 11, 12, 13, 14; 152.23; 152.24; 152.25, subdivisions 1, 1a, 1b, 1c, 2, 3, 4; 152.26; 152.261; 152.27, subdivisions 1, 2, 3, 4, 5, 6, 7; 152.28, subdivisions 1, 2, 3; 152.29, subdivisions 1, 2, 3, 3a, 4; 152.30; 152.31; 152.32, subdivisions 1, 2, 3; 152.33, subdivisions 1, 1a, 2, 3, 4, 5, 6; 152.34; 152.35; 152.36, subdivisions 1, 1a, 2, 3, 4, 5; 152.37; 297D.01, subdivision 1; Minnesota Rules, parts 4770.0100; 4770.0200; 4770.0300; 4770.0400; 4770.0500; 4770.0600; 4770.0800; 4770.0900; 4770.1000; 4770.1100; 4770.1200; 4770.1300; 4770.1400; 4770.1460; 4770.1500; 4770.1600; 4770.1700; 4770.1800; 4770.1900; 4770.2000; 4770.2100; 4770.2200; 4770.2300; 4770.2400; 4770.2700; 4770.2800; 4770.4000; 4770.4002; 4770.4003; 4770.4004; 4770.4005; 4770.4007; 4770.4008; 4770.4009; 4770.4010; 4770.4012; 4770.4013; 4770.4014; 4770.4015; 4770.4016; 4770.4017; 4770.4018; 4770.4030.
Reported the same back with the recommendation that the bill be re-referred to the Committee on Education Finance.
The
report was adopted.
Moran from the Committee on Ways and Means to which was referred:
H. F. No. 991, A bill for an act relating to financing and operation of state and local government; providing conformity and nonconformity to certain federal tax law changes; modifying individual income and corporate franchise taxes, sales and use taxes, partnership taxes, special and excise taxes, property taxes, local government aids, provisions related to local taxes, tax increment financing, public finance, and other miscellaneous taxes and tax provisions; providing for various individual and corporate additions and subtractions to income; modifying certain income tax credits and authorizing new credits; providing for a pass-through entity tax; modifying definitions for resident trusts; modifying existing and providing new sales tax exemptions; modifying vapor and tobacco tax provisions; modifying and providing certain property tax exemptions; modifying property classification provisions; allowing for certain special assessments; modifying local government aid appropriations; modifying existing local taxes and authorizing new local taxes; modifying property tax homeowners' and renters' refunds; authorizing and modifying certain tax increment financing provisions; providing for a tax expenditure review commission and the required expiration of tax expenditures; making appointments; requiring reports; appropriating money; amending Minnesota Statutes 2020, sections 3.192; 3.8853, subdivision 2; 16A.152, subdivision 2; 41B.0391, subdivisions 2, 4; 116J.8737, subdivisions 5, 12; 270.41, subdivision 3a; 270.44; 270A.03, subdivision 2; 270B.12, subdivisions 8, 9; 270B.14, by adding a subdivision; 270C.11, subdivisions 2, 4, 6; 270C.13, subdivision 1; 270C.22, subdivision 1; 270C.445, subdivisions 3, 6; 272.02, by adding a subdivision; 272.029, subdivision 2; 272.0295, subdivisions 2, 5; 272.115, subdivision 1; 273.063; 273.0755; 273.124, subdivisions 1, 3a, 6, 9, 13, 13a, 13c, 13d, 14; 273.1245, subdivision 1; 273.13, subdivisions 23, 25, 34; 273.1315, subdivision 2; 273.18; 275.025, subdivisions 1, 2; 275.065, subdivisions 1, 3, by adding subdivisions; 275.066; 287.04; 289A.02, subdivision 7; 289A.08, subdivisions 7, 11, by adding subdivisions; 289A.09, subdivision 2; 289A.20, subdivision 4; 289A.31, subdivision 1; 289A.37, subdivision 2; 289A.38, subdivisions 7, 8, 9, 10; 289A.42; 289A.60, subdivisions 15, 24; 290.01, subdivisions 19, 31, by adding a subdivision; 290.0121, subdivision 3; 290.0122, subdivisions 4, 8; 290.0131, by adding subdivisions; 290.0132, subdivision 27, by adding subdivisions; 290.0133, subdivision 6, by adding subdivisions; 290.0134, subdivision 18, by adding a subdivision; 290.06, subdivisions 2c, 2d, 22, by adding subdivisions; 290.0671, subdivisions 1, 1a, 7; 290.0674, subdivision 2a; 290.0681, subdivision 10; 290.0682; 290.0685, subdivision 1, by adding a subdivision; 290.091, subdivision 2; 290.17, by adding subdivisions; 290.21, subdivision 9, by adding a subdivision; 290.31, subdivision 1; 290.92, subdivisions 1, 2a, 3, 4b, 4c, 5, 5a, 19, 20; 290.923, subdivision 9; 290.993; 290A.03, subdivisions 3, 15; 290A.04, subdivisions 2, 2a; 290A.25; 291.005, subdivision 1; 295.75, subdivision 2; 296A.06, subdivision 2; 297A.66, subdivision 3; 297A.67, by adding a subdivision; 297A.70, subdivision 13, by adding a subdivision; 297A.71, subdivision 52, by adding a subdivision; 297A.75, subdivisions 1, 2, 3; 297A.993, subdivision 2; 297E.021, subdivision 4; 297F.01, subdivisions 19, 22b, 23, by adding subdivisions; 297F.031; 297F.04, subdivision 2; 297F.05, by adding a subdivision; 297F.09, subdivisions 3, 4a, 7, 10; 297F.10, subdivision 1; 297F.13, subdivision 4; 297F.17, subdivisions 1, 6; 297G.09, subdivision 9; 297G.16, subdivision 7; 297H.04, subdivision 2; 297H.05; 297I.05, subdivision 7; 297I.20, by adding a subdivision; 298.001, by adding a subdivision; 298.24, subdivision 1; 298.405, subdivision 1; 325F.781, subdivisions 1, 5, 6; 429.021, subdivision 1; 429.031, subdivision 3; 453A.04, subdivision 21, by adding a subdivision; 462A.38; 465.71; 469.176, by adding a subdivision; 469.1763, subdivisions 2, 3, 4; 469.319, subdivision 4; 475.56; 475.58, subdivision 3b; 475.60, subdivision 1; 475.67, subdivision 8; 477A.013, subdivision 13; 477A.03, subdivisions 2a, 2b; 477A.10; 609B.153; Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended; Laws 2017, First Special Session chapter 1, article 3, section 32, as amended; Laws 2019, First Special Session chapter 6, article 6, sections 25; 27; proposing coding for new law in Minnesota Statutes, chapters 3; 16A; 116U; 289A; 477A; proposing coding for new law as Minnesota Statutes, chapters 299O; 428B; repealing Minnesota Statutes 2020, sections 270C.17, subdivision 2; 290.01, subdivisions 7b, 19i; 290.0131, subdivision 18; 327C.01, subdivision 13; 327C.16; 469.055, subdivision 7.
Reported the same back with the following amendments:
Page 86, delete lines 5 to 9 and insert:
"(a) Notwithstanding Minnesota
Statutes, section 289A.50, or any law to the contrary, the sale and purchase of
any materials, supplies, or equipment used in this state by a restaurant to
adapt to health guidelines or any executive order related to COVID-19 is exempt
from sales and use taxes imposed under Minnesota Statutes, chapter 297A.
For the purposes of this section, "restaurant" means an establishment used as, maintained as, advertised as, or held out to be an operation that prepares, serves, or otherwise provides food or beverages, or both, for human consumption, which operates from a location for more than 21 days annually. Restaurant does not include food carts, mobile food units, grocery stores, convenience stores, gas stations, bakeries, or delis."
Page 160, line 16, delete "$69,750,000" and insert "$94,650,000"
Page 160, line 20, delete "$63,000,000" and insert "$87,900,000"
Page 160, line 28, delete "$100,000" and insert "$150,000"
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
Moran from the Committee on Ways and Means to which was referred:
H. F. No. 2360, A bill for an act relating to claims against the state; providing for the settlement of certain claims; appropriating money.
Reported the same back with the following amendments:
Page 1, after line 4, insert:
"Section 1. EXONERATION
AWARDS.
$108,684.65 in fiscal year 2022 is
appropriated from the general fund to the commissioner of management and budget
for full payment of awards of damages under the Imprisonment and Exoneration
Remedies Act, Minnesota Statutes, sections
611.362 to 611.368, to Nicholas Mark Peterson.
This appropriation is available until June 30, 2022."
Page 1, line 6, before "The" insert "(a)" and delete "section" and insert "paragraph"
Page 1, line 14, delete "$......." and insert "$1,180.63" and delete "and"
Page 1, delete line 15 and insert:
"(2) for payment to Nicholas
Edwards for permanent injuries to his right index finger while performing
assigned duties at Minnesota Correctional Facility - Moose Lake, $3,940;
(3) for payment to Steven Kulkay for
permanent injuries to his left index, middle, ring, and little fingers while
performing assigned duties at Minnesota Correctional Facility - Faribault,
compensation for loss of income, and refunding of his claim fee, $85,751; and
(4) for payment to Michael Schmidt for fractures
to two vertebrae while performing assigned duties at Minnesota Correctional
Facility - Rush City, $5,600.
(b) $43,200 in fiscal year 2022 is appropriated from the general fund to the commissioner of corrections for a minimum ascertainable partial permanent disability award under Minnesota Statutes, section 3.738, of the claim against the state for injuries suffered by James Vandevender while performing assigned duties at Minnesota Correctional Facility - Rush City. Any award for full and final payment of this claim must deduct the amount in this paragraph from the required final payment. This appropriation is available until June 30, 2022."
Renumber the sections in sequence
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
SECOND READING
OF HOUSE BILLS
H. F. Nos. 991 and 2360
were read for the second time.
SECOND READING
OF SENATE BILLS
S. F. No. 959 was read for
the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The
following House Files were introduced:
Hertaus introduced:
H. F. No. 2547, A bill for an act relating to capital investment; appropriating money for Phase 2 of the Lake Effect Project in Wayzata; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee on Capital Investment.
Hertaus introduced:
H. F. No. 2548, A joint resolution applying to Congress to call a constitutional convention to propose an amendment to the Constitution of the United States to provide that members of Congress be subject to term limits.
The bill was read for the first time and referred to the Committee on State Government Finance and Elections.
Sundin and Ecklund introduced:
H. F. No. 2549, A bill for an act relating to taxation; property; requiring state to pay costs of property tax judgments against state-assessed property; appropriating money; amending Minnesota Statutes 2020, section 278.12.
The bill was read for the first time and referred to the Committee on Taxes.
Ecklund and Sundin introduced:
H. F. No. 2550, A bill for an act relating to capital investment; appropriating money for a public water access facility and related improvements in the town of Crane Lake; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee on Capital Investment.
Miller introduced:
H. F. No. 2551, A bill for an act relating to taxation; modifying requirements and procedures governing appeals of utility and railroad property valuations; amending Minnesota Statutes 2020, sections 271.01, subdivision 5; 271.05; 271.09, subdivision 1; 273.372; 278.01, subdivision 3.
The bill was read for the first time and referred to the Committee on Taxes.
Lee introduced:
H. F. No. 2552, A bill for an act relating to legacy; appropriating money for grants to preserve and honor culturally diverse heritage and empower communities to build identity and culture.
The bill was read for the first time and referred to the Committee on Legacy Finance.
Huot introduced:
H. F. No. 2553, A bill for an act relating to veterinary medicine; regulating veterinary technicians, veterinary assistants, and the practice of veterinary technology; amending Minnesota Statutes 2020, sections 156.001, by adding subdivisions; 156.07; 156.072, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 156.
The bill was read for the first time and referred to the Committee on Health Finance and Policy.
MESSAGES FROM THE SENATE
The
following message was received from the Senate:
Madam Speaker:
I hereby announce the passage by the
Senate of the following Senate File, herewith transmitted:
S. F. No. 1846.
Cal R. Ludeman,
Secretary of the Senate
FIRST
READING OF SENATE BILLS
S. F. No. 1846, A bill for an act relating to commerce; modifying various provisions governing or administered by the Department of Commerce; modifying allowance of reinsurance credit; establishing an insurance data security law; making technical changes; requiring a report; amending Minnesota Statutes 2020, sections 60A.092, subdivision 10a, by adding a subdivision; 60A.0921, subdivision 2; 60A.71, subdivision 7; 61A.245, subdivision 4; 79.55, subdivision 10; 79.61, subdivision 1; 80G.06, subdivision 1; 82.57, subdivisions 1, 5; 82.62, subdivision 3; 82.81, subdivision 12; 82B.021, subdivision 18; 82B.11, subdivision 3; 332.33, subdivision 3, by adding a subdivision; 386.375, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 60A; 80G; 332; repealing Minnesota Statutes 2020, sections 45.017; 60A.98; 60A.981; 60A.982.
The bill was read for the first time.
Stephenson moved that S. F. No. 1846 and H. F. No. 2024, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
Winkler moved that the House recess
subject to the call of the Chair. The
motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to
order by the Speaker.
REPORT
FROM THE COMMITTEE ON RULES
AND LEGISLATIVE
ADMINISTRATION
Winkler from the Committee on Rules and
Legislative Administration, pursuant to rules 1.21 and 3.33, designated the
following bills to be placed on the Calendar for the Day for Thursday, April
22, 2021 and established a prefiling requirement for amendments offered to the
following bills:
S. F. No. 959; and
H. F. Nos. 991 and 729.
CALENDAR FOR
THE DAY
S. F. No. 1098 was reported
to the House.
Noor moved to amend
S. F. No. 1098, the third engrossment, as follows:
Delete everything after the enacting
clause and insert the following language of H. F. No. 1342, the
second engrossment:
"ARTICLE 1
ECONOMIC DEVELOPMENT APPROPRIATIONS
Section 1. JOBS
AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
|
(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 "2022" and
"2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023,
respectively. "The first year"
is fiscal year 2022. "The second
year" is fiscal year 2023. "The
biennium" is fiscal years 2022 and 2023.
(b) If an appropriation in this article
is enacted more than once in the 2021 regular or special legislative session,
the appropriation must be given effect only once.
|
|
|
APPROPRIATIONS |
|
|
|
|
Available for the Year |
|
|
|
|
Ending June 30 |
|
|
|
|
2022 |
2023 |
Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT |
|
|
|
Subdivision 1. Total
Appropriation |
|
$128,635,000 |
|
$129,999,000 |
Appropriations
by Fund |
||
|
2022 |
2023
|
General |
117,200,000
|
94,684,000
|
Remediation |
700,000
|
700,000
|
Workforce Development |
10,735,000
|
10,735,000
|
Family and medical benefit insurance account |
-0-
|
23,880,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
Subd. 2. Business
and Community Development |
|
58,936,000
|
|
46,935,000
|
Appropriations
by Fund |
||
General |
56,886,000
|
44,885,000
|
Remediation |
700,000
|
700,000
|
Workforce Development |
1,350,000
|
1,350,000
|
(a) $1,787,000 each year is for the
greater Minnesota business development public infrastructure grant program
under Minnesota Statutes, section 116J.431.
This appropriation is available until June 30, 2025.
(b)
$1,425,000 each year is for the business development competitive grant program. Of this amount, up to five percent is for
administration and monitoring of the business development competitive grant
program. All grant awards shall be for
two consecutive years. Grants shall be
awarded in the first year.
(c) $1,772,000 each year is for
contaminated site cleanup and development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until expended.
(d) $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. This appropriation is available until
expended.
(e) $139,000 each year is for the Center
for Rural Policy and Development.
(f) $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.
(g) $875,000 each year is for the host
community economic development program established in Minnesota Statutes,
section 116J.548.
(h) $500,000 each year is for the small
business development center program for grants to the regional small business
development center offices and the lead center.
This is a onetime appropriation.
(i) $3,000,000 each year is for technical
assistance to small businesses. Of this
amount:
(1) $1,500,000 is for grants to nonprofit
lenders to provide additional equity support to leverage other capital sources;
(2) $750,000 is for the business
development competitive grant program; and
(3) $750,000 is for grants to small
business incubators that serve minority-, veteran-, and women-owned businesses,
or businesses owned by persons with disabilities, to provide commercial space,
technical assistance, and education services.
This is a onetime appropriation.
(j)(1) $10,000,000 in the first year is for
grants to local communities to increase the number of quality child care
providers to support economic development.
This is a onetime appropriation and is available through June 30, 2023. Fifty percent of grant funds must go to
communities located outside the seven-county metropolitan area as defined in
Minnesota Statutes, section 473.121, subdivision 2.
(2) Grant recipients must obtain a 50 percent nonstate match to grant funds in either cash or in-kind contribution, unless the commissioner waives the requirement. Grant funds available under this subdivision must be used to implement projects to reduce the child care shortage in the state, including but not limited to funding for child care business start-ups or expansion, training, facility modifications, direct subsidies or incentives to retain employees, or improvements required for licensing, and assistance with licensing and other regulatory requirements. In awarding grants, the commissioner must give priority to communities that have demonstrated a shortage of child care providers.
(3) 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 new providers, the
number of additional child care provider jobs created, the number of additional
child care slots, and the amount of cash and in-kind local funds invested. Within one month of all grant recipients
reporting on program outcomes, the commissioner must report the grant
recipients' outcomes to the chairs and ranking members of the legislative
committees with jurisdiction over early learning and child care and economic
development.
(k) $2,000,000 in the first year is for a
grant to the Minnesota Initiative Foundations.
This is a onetime appropriation and is available until June 30, 2025. The Minnesota Initiative Foundations must use
grant funds under this section to:
(1) facilitate planning processes for
rural communities resulting in a community solution action plan that guides
decision making to sustain and increase the supply of quality child care in the
region to support economic development;
(2) engage the private sector to invest
local resources to support the community solution action plan and ensure
quality child care is a vital component of additional regional economic
development planning processes;
(3) provide locally based training and
technical assistance to rural child care business owners individually or
through a learning cohort. Access to
financial and business development assistance must prepare child care
businesses for quality engagement and improvement by stabilizing operations,
leveraging funding from other sources, and fostering business acumen that
allows child care businesses to plan for and afford the cost of providing
quality child care; and
(4) recruit child care programs to
participate in Parent Aware, Minnesota's quality and improvement rating system,
and other high quality measurement programs.
The Minnesota Initiative Foundations must work with local partners to
provide low-cost
training,
professional development opportunities, and continuing education curricula. The Minnesota Initiative Foundations must
fund, through local partners, an enhanced level of coaching to rural child care
providers to obtain a quality rating through Parent Aware or other high quality
measurement programs.
(l) $7,500,000 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. This appropriation is
available until expended. The base
amount for this purpose in fiscal year 2024 and beyond is $8,000,000.
(m) $7,750,000 each year is 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 year 2024 and beyond, the base amount is $12,370,000. This appropriation is available until
expended. Notwithstanding Minnesota
Statutes, section 116J.8731, money appropriated to the commissioner for the
Minnesota investment fund may be used for the redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761, at the discretion of the
commissioner. Grants under this
paragraph are not subject to the grant amount limitation under Minnesota
Statutes, section 116J.8731.
(n) $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.
(o) $325,000 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.
(p) $12,000 each year is for a grant to
the Upper Minnesota Film Office.
(q) $500,000 each year is 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, 2025.
(r)
$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.
(s) $1,350,000 each year from the workforce
development fund and $250,000 each year from the general fund are for jobs
training grants under Minnesota Statutes, section 116L.42.
(t) $2,500,000 each year is for Launch
Minnesota. This is a onetime
appropriation and funds are available until June 30, 2025. Of this amount:
(1) $1,500,000 each year is for innovation
grants to eligible Minnesota entrepreneurs or start-up businesses to assist
with their operating needs;
(2)
$500,000 each year is for administration of Launch Minnesota; and
(3) $500,000 each year is for grantee
activities at Launch Minnesota.
(u) $1,050,000 each year is for the
microenterprise development program under Minnesota Statutes, section 116J.8736. Of these amounts, $150,000 each year is for
providing technical assistance and outreach to microenterprise development
organizations.
(v) $5,298,000 in the first year and
$5,297,000 in the second year are for grants to the Neighborhood Development
Center, Metropolitan Economic Development Association, Latino Economic
Development Center, Northside Economic Opportunity Network, and African
Economic Development Solutions to provide business development services and funding. Of these amounts, at least $2,000,000 each
year must be used for services and funding for entrepreneurs who are women of
color. This is a onetime appropriation.
(w) $375,000 each year is for the
publication, dissemination, and use of labor market information under Minnesota
Statutes, section 116J.401.
Subd. 3. Employment
and Training Programs |
|
9,921,000
|
|
9,921,000
|
Appropriations
by Fund |
||
General |
8,421,000
|
8,421,000
|
Workforce Development |
1,500,000
|
1,500,000
|
(a) $500,000 each year from the general
fund and $500,000 each year from the workforce development fund are for rural
career counseling coordinators in the workforce service areas and for the
purposes specified under Minnesota Statutes, section 116L.667.
(b)
$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.
(c) $2,546,000 each year is for the pathways to prosperity competitive grant program. Of this amount, up to five percent is for administration and monitoring of the program.
(d) $500,000 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.
(e) $500,000 each year is from the
workforce development fund for current Minnesota affiliates of OIC of America, Inc.
This appropriation shall be divided equally among the eligible centers.
(f) $1,000,000 each year is 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.
(g)
$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 five percent is for
administration and monitoring of the program.
(h) $1,000,000 each year is for a grant to
Propel Nonprofits to provide capacity-building grants and related technical
assistance to small, culturally specific organizations that primarily serve
historically underserved cultural communities.
Propel Nonprofits may only award grants to nonprofit organizations that
have an annual organizational budget of less than $500,000. These grants may be used for:
(1) organizational infrastructure
improvements, 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) creating or expanding partnerships
with existing organizations that have specialized expertise in order to
increase capacity of the grantee organization to improve services to the
community.
Of this amount, up to five percent may be
used by Propel Nonprofits for administrative costs. This is a onetime appropriation.
(i) $750,000 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.
(j) $875,000 each year is for a grant to
the Minnesota Technology Association to support the SciTech Internship Program,
a program that supports science, technology, engineering, and math (STEM)
internship opportunities for two- and four-year college students and graduate
students in their fields 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
200
students must be matched in the first year and at least 200 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 among women or other underserved populations. This is a onetime appropriation.
Subd. 4. General
Support Services |
|
3,692,000
|
|
4,005,000
|
Appropriations
by Fund |
||
General Fund |
3,637,000
|
3,950,000
|
Workforce Development |
55,000
|
55,000
|
$1,269,000 each year is for transfer to
the Minnesota Housing Finance Agency for operating the Olmstead Compliance
Office.
Subd. 5. Minnesota
Trade Office |
|
2,142,000
|
|
2,142,000
|
(a) $200,000 each year is for the STEP
grants in Minnesota Statutes, section 116J.979.
The base for this purpose in fiscal year 2024 and beyond is $300,000.
(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.
Subd. 6. Vocational
Rehabilitation |
|
36,691,000
|
|
36,691,000
|
Appropriations
by Fund |
||
General |
28,861,000
|
28,861,000
|
Workforce Development |
7,830,000
|
7,830,000
|
(a) $14,300,000 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 are for
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) $3,011,000 each year is for grants to
centers for independent living under Minnesota Statutes, section 268A.11.
(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 |
|
10,828,000
|
|
23,880,000
|
Appropriations
by Fund |
||
General |
10,828,000
|
-0-
|
Family and medical benefit insurance account |
-0-
|
23,880,000
|
(a) $10,828,000 in the first year is for
the purposes of Minnesota Statutes, chapter 268B. This is a onetime appropriation.
(b) $23,250,000 in the second year is from
the family and medical benefit insurance account for the purposes of Minnesota
Statutes, chapter 268B. The base
appropriation is $51,041,000 in fiscal year 2024 and $50,125,000 in fiscal year
2025. Starting in fiscal year 2026, the
base appropriation is $46,465,000.
(c) $630,000 in the second year is from
the family medical benefit insurance account for the purpose of outreach,
education, and technical assistance for employees and employers regarding
Minnesota Statutes, chapter 268B. Of
this amount, at least 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. 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.
Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY |
|
|
|
(a) $528,000 in the first year is for the
purposes of Minnesota Statutes, chapter 268B.
This is a onetime appropriation.
(b) $518,000 in the second year is from
the family and medical benefit insurance account for the purposes of Minnesota
Statutes, chapter 268B. The base
appropriation is $468,000 in fiscal year 2024 and $618,000 in fiscal year 2025.
Sec. 4. DEPARTMENT
OF HUMAN SERVICES |
|
$-0- |
|
$574,000 |
$574,000 in the second year is from the
family and medical benefit insurance account for information technology system
costs associated with Minnesota Statutes, chapter 268B. This is a onetime appropriation.
Sec. 5. MANAGEMENT
AND BUDGET |
|
|
|
|
Subdivision 1. Total
Appropriation |
|
$28,000 |
|
$1,953,000 |
Appropriations
by Fund |
||
|
2022 |
2023
|
General |
28,000
|
1,930,000
|
Family and medical benefit insurance account |
-0-
|
23,000
|
(a) $28,000 in the first year is for information technology systems upgrades necessary to comply with Minnesota Statutes, chapter 268B. This is a onetime appropriation.
(b) $23,000 in the second year from the
family and medical benefit insurance account is for ongoing maintenance of
these information technology systems. For
fiscal year 2024 and beyond, the base appropriation is $13,000.
(c) $1,930,000 in the second year is for
the premiums and notice acknowledgment required of employers under Minnesota
Statutes, chapter 268B. For fiscal year
2024 and beyond, the base appropriation is $3,727,000.
Sec. 6. HOUSE
OF REPRESENTATIVES |
|
$11,000 |
|
$-0- |
$11,000 in the first year is for systems
upgrades necessary to comply with Minnesota Statutes, chapter 268B. This is a onetime appropriation.
Sec. 7. SUPREME
COURT |
|
$20,000 |
|
$-0- |
$20,000 in the first year is for judicial
responsibilities associated with Minnesota Statutes, chapter 268B. This is a onetime appropriation.
Sec. 8. COURT
OF APPEALS |
|
$-0- |
|
$-0- |
For fiscal year 2025, the base from the
family and medical benefit insurance account for judicial responsibilities
associated with Minnesota Statutes, chapter 268B, is $5,600,000.
Sec. 9. FAMILY
AND MEDICAL BENEFITS; TRANSFER.
In the second year only, $11,416,000
shall be transferred from the family and medical benefit insurance account to
the general fund.
ARTICLE 2
PRIOR YEAR APPROPRIATIONS
Section 1. Laws 2017, chapter 94, article 1, section 2, subdivision 2, as amended by Laws 2017, First Special Session chapter 7, section 2, is amended to read:
Subd. 2. Business
and Community Development |
|
$46,074,000 |
|
$40,935,000 |
Appropriations by Fund |
||
General |
$43,363,000 |
$38,424,000 |
Remediation |
$700,000 |
$700,000 |
Workforce Development |
$1,861,000 |
$1,811,000 |
Special Revenue |
$150,000 |
-0- |
(a) $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 spent.
(b) $750,000 each year is for grants to the Neighborhood Development Center for small business programs:
(1) training, lending, and business services;
(2) model outreach and training in greater Minnesota; and
(3) development of new business incubators.
This is a onetime appropriation.
(c) $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.
(d) $125,000 each year is for a grant 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.
(e)(1) $12,500,000 each year is 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. This appropriation is available until spent.
(2) Of the amount appropriated in fiscal year 2018, $4,000,000 is for a loan to construct and equip a wholesale electronic component distribution center investing a minimum of $200,000,000 and constructing a facility at least 700,000 square feet in size. Loan funds may be used for purchases of materials, supplies, and equipment for the construction of the facility and are available from July 1, 2017, to June 30, 2021. The commissioner of employment and economic development shall forgive the loan after verification that the project has satisfied performance goals and contractual obligations as required under Minnesota Statutes, section 116J.8731.
(3) Of the amount appropriated in fiscal year
2018, $700,000 is for a loan to extend an effluent pipe that will deliver
reclaimed water to an innovative waste-to-biofuel project investing a minimum
of $150,000,000 and constructing a facility that is designed to process
approximately 400,000 tons of waste annually.
Loan grant to the Metropolitan Council under Minnesota Statutes,
section 116.195, for wastewater infrastructure to support industrial users in
Rosemount that require significant water use.
Grant funds are available until June 30, 2021 2025.
(f) $8,500,000 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. This appropriation is available until expended. In fiscal year 2020 and beyond, the base amount is $8,000,000.
(g) $1,647,000 each year is for contaminated site cleanup and development grants under Minnesota Statutes, sections 116J.551 to 116J.558. This appropriation is available until spent. In fiscal year 2020 and beyond, the base amount is $1,772,000.
(h) $12,000 each year is for a grant to the Upper Minnesota Film Office.
(i) $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.
(j) $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, 2021.
(k) $139,000 each year is for a grant to the Rural Policy and Development Center under Minnesota Statutes, section 116J.421.
(l)(1) $1,300,000 each year is for the greater Minnesota business development public infrastructure grant program under Minnesota Statutes, section 116J.431. This appropriation is available until spent. If the appropriation for either year is insufficient, the appropriation for the other year is available. In fiscal year 2020 and beyond, the base amount is $1,787,000. Funds available under this paragraph may be used for site preparation of property owned and to be used by private entities.
(2) Of the amounts appropriated, $1,600,000 in fiscal year 2018 is for a grant to the city of Thief River Falls to support utility extensions, roads, and other public improvements related to the construction of a wholesale electronic component distribution center at least 700,000 square feet in size and investing a minimum of $200,000,000. Notwithstanding Minnesota Statutes, section 116J.431, a local match is not required. Grant funds are available from July 1, 2017, to June 30, 2021.
(m) $876,000 the first year and $500,000 the second year are 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 spent. 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.
(n) $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.
(o) $250,000 in fiscal year 2018 is for a grant to the Minnesota Design Center at the University of Minnesota for the greater Minnesota community design pilot project.
(p) $275,000 in fiscal year 2018 is from the general fund to the commissioner of employment and economic development for a grant to Community and Economic Development Associates (CEDA) for an economic development study and analysis of the effects of current and projected economic growth in southeast Minnesota. CEDA shall report on the findings and recommendations of the study to the committees of the house of representatives and senate with jurisdiction over economic development and workforce issues by February 15, 2019. All results and information gathered from the study shall be made available for use by cities in southeast Minnesota by March 15, 2019. This appropriation is available until June 30, 2020.
(q) $2,000,000 in fiscal year 2018 is for a grant to Pillsbury United Communities for construction and renovation of a building in north Minneapolis for use as the "North Market" grocery store and wellness center, focused on offering healthy food, increasing health care access, and providing job creation and economic opportunities in one place for children and families living in the area. To the extent possible, Pillsbury United Communities shall employ individuals who reside within a five mile radius of the grocery store and wellness center. This appropriation is not available until at least an equal amount of money is committed from nonstate sources. This appropriation is available until the project is completed or abandoned, subject to Minnesota Statutes, section 16A.642.
(r) $1,425,000 each year is for the business development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the business development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.
(s) $875,000 each year is for the host community economic development grant program established in Minnesota Statutes, section 116J.548.
(t) $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. This appropriation is available until spent.
(u) $161,000 each year is from the workforce development fund for a grant to the Rural Policy and Development Center. This is a onetime appropriation.
(v) $300,000 each year is from the workforce development fund for a grant to Enterprise Minnesota, Inc. This is a onetime appropriation.
(w) $50,000 in fiscal year 2018 is from the workforce development fund for a grant to Fighting Chance for behavioral intervention programs for at-risk youth.
(x) $1,350,000 each year is from the workforce development fund for job training grants under Minnesota Statutes, section 116L.42.
(y)(1) $519,000 in fiscal year 2018 is for grants to local communities to increase the supply of quality child care providers in order to support economic development. At least 60 percent of grant funds must go to communities located outside of the seven‑county metropolitan area, as defined under Minnesota Statutes, section 473.121, subdivision 2. Grant recipients must obtain a 50 percent nonstate match to grant funds in either cash or in-kind contributions. Grant funds available under this paragraph must be used 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. In awarding grants, the commissioner must give priority to communities that have documented a shortage of child care providers in the area.
(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 new providers, the number of additional child care provider jobs created, the number of additional child care slots, and the amount of local funds invested.
(3) By January 1 of each year, starting in 2019, the commissioner must report to the standing committees of the legislature having jurisdiction over child care and economic development on the outcomes of the program to date.
(z) $319,000 in fiscal year 2018 is from the
general fund for a grant to the East Phillips Improvement Coalition to create
the East Phillips Neighborhood Institute (EPNI) to expand culturally tailored
resources that address small business growth and create green jobs. The grant shall fund the collaborative work
of Tamales y Bicicletas, Little Earth of the United Tribes, a nonprofit serving East Africans, and other coalition members
towards developing
(aa) $150,000 the first year is from the renewable development account in the special revenue fund established in Minnesota Statutes, section 116C.779, subdivision 1, to conduct the biomass facility closure economic impact study.
(bb)(1)$300,000 in fiscal year 2018 is for a grant to East Side Enterprise Center (ESEC) to expand culturally tailored resources that address small business growth and job creation. This appropriation is available until June 30, 2020. The appropriation shall fund the work of African Economic Development Solutions, the Asian Economic Development Association, the Dayton's Bluff Community Council, and the Latino Economic Development Center in a collaborative approach to economic development that is effective with smaller, culturally diverse communities that seek to increase the productivity and success of new immigrant and minority populations living and working in the community. Programs shall provide minority business growth and capacity building that generate wealth and jobs creation for local residents and business owners on the East Side of St. Paul.
(2) In fiscal year 2019 ESEC shall use funds to share its integrated service model and evolving collaboration principles with civic and economic development leaders in greater Minnesota communities which have diverse populations similar to the East Side of St. Paul. ESEC shall submit a report of activities and program outcomes, including quantifiable measures of success annually to the house of representatives and senate committees with jurisdiction over economic development.
(cc) $150,000 in fiscal year 2018 is for a grant to Mille Lacs County for the purpose of reimbursement grants to small resort businesses located in the city of Isle with less than $350,000 in annual revenue, at least four rental units, which are open during both summer and winter months, and whose business was adversely impacted by a decline in walleye fishing on Lake Mille Lacs.
(dd)(1) $250,000 in fiscal year 2018 is for a grant to the Small Business Development Center hosted at Minnesota State University, Mankato, for a collaborative initiative with the Regional Center for Entrepreneurial Facilitation. Funds available under this section 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 section, "direct professional business assistance services" must include, but is not limited to, pre-venture assistance for individuals considering starting a business. This appropriation is not available until the commissioner determines that an equal amount is committed from nonstate sources. Any balance in the first year does not cancel and is available for expenditure in the second year.
(2) Grant recipients shall report to the commissioner by February 1 of each year 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 of each year, the commissioner shall report the information submitted by grant recipients to the chairs of the standing committees of the house of representatives and the senate having jurisdiction over economic development issues.
(ee) $500,000 in fiscal year 2018 is for the central Minnesota opportunity grant program established under Minnesota Statutes, section 116J.9922. This appropriation is available until June 30, 2022.
(ff) $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.
EFFECTIVE
DATE. This section is
effective retroactively from July 1, 2017.
Sec. 2. Laws 2019, First Special Session chapter 7, article 1, section 2, subdivision 2, as amended by Laws 2019, First Special Session chapter 12, section 4, and Laws 2020, chapter 112, section 1, is amended to read:
Subd. 2. Business
and Community Development |
|
44,931,000 |
|
42,381,000 |
Appropriations by Fund |
||
General |
40,756,000 |
38,206,000 |
Remediation |
700,000 |
700,000 |
Workforce Development |
3,475,000 |
3,475,000 |
(a) $1,787,000 each year is for the greater Minnesota business development public infrastructure grant program under Minnesota Statutes, section 116J.431. This appropriation is available until June 30, 2023.
(b) $1,425,000 each year is for the business development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the business development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.
(c) $1,772,000 each year is for contaminated site cleanup and development grants under Minnesota Statutes, sections 116J.551 to 116J.558. This appropriation is available until June 30, 2023.
(d) $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. This appropriation is available until June 30, 2023.
(e) $139,000 each year is for the Center for Rural Policy and Development.
(f) $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.
(g) $875,000 each year is for the host community economic development program established in Minnesota Statutes, section 116J.548.
(h) $125,000 each year is from the workforce development fund for a grant 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.
(i) $450,000 each year is from the workforce development fund 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.
(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) $400,000 each year is from the workforce development fund 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) $750,000 in fiscal year 2020 is for grants to local communities to increase the supply of quality child care providers to support economic development. At least 60 percent of grant funds must go to communities located outside of the seven-county metropolitan area as defined under Minnesota Statutes, section 473.121, subdivision 2. Grant recipients must obtain a 50 percent nonstate match to grant funds in either cash or in-kind contributions. Grant funds available under this section must be used to implement projects to reduce the child care shortage in the state, including but not limited to funding for child care business start-ups or expansion, training, facility modifications or improvements required for licensing, and assistance with licensing and other regulatory requirements. In awarding grants, the commissioner must give priority to communities that have demonstrated a shortage of child care providers in the area. This is a onetime appropriation. 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 new providers, the number of additional child care provider jobs created, the number of additional child care slots, and the amount of cash and in-kind local funds invested.
(m) $750,000 in fiscal year 2020 is for a grant to the Minnesota Initiative Foundations. This is a onetime appropriation and is available until June 30, 2023. The Minnesota Initiative Foundations must use grant funds under this section to:
(1) facilitate planning processes for rural communities resulting in a community solution action plan that guides decision making to sustain and increase the supply of quality child care in the region to support economic development;
(2) engage the private sector to invest local resources to support the community solution action plan and ensure quality child care is a vital component of additional regional economic development planning processes;
(3) provide locally based training and technical assistance to rural child care business owners individually or through a learning cohort. Access to financial and business development assistance must prepare child care businesses for quality engagement and improvement by stabilizing operations, leveraging funding from other sources, and fostering business acumen that allows child care businesses to plan for and afford the cost of providing quality child care; or
(4) recruit child care programs to participate in Parent Aware, Minnesota's quality and improvement rating system, and other high quality measurement programs. The Minnesota Initiative Foundations must work with local partners to provide low-cost training, professional development opportunities, and continuing
education curricula. The Minnesota Initiative Foundations must fund, through local partners, an enhanced level of coaching to rural child care providers to obtain a quality rating through Parent Aware or other high quality measurement programs.
(n)(1) $650,000 each year from the workforce development fund 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.
(o) $8,000,000 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. This appropriation is available until expended.
(p)(1) $11,970,000 each year is 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 year 2022 and beyond, the base amount is $12,370,000. This appropriation is available until expended. Notwithstanding Minnesota Statutes, section 116J.8731, funds appropriated to the commissioner for the Minnesota investment fund may be used for the redevelopment program under Minnesota Statutes, sections 116J.575 and 116J.5761, at the discretion of the commissioner. Grants under this paragraph are not subject to the grant amount limitation under Minnesota Statutes, section 116J.8731.
(2) Of the amount appropriated in the first
year, $2,000,000 $3,000,000 is for a loan to a paper mill in
Duluth for a retrofit project that will support the operation and
manufacture of packaging conversion of the existing Duluth paper mill
for the manufacture of new paper grades.
The company that owns the paper mill must spend $20,000,000 on invest
$25,000,000 in project activities by December 31, 2020 May 1,
2023, 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 April 1, 2021, to July 30, 2021 May 1, 2023. 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 150 80
full-time equivalent employees and has satisfied other performance goals and
contractual obligations as required under Minnesota Statutes, section 116J.8731.
(q) $700,000 in fiscal year 2020 is for the airport infrastructure renewal (AIR) grant program under Minnesota Statutes, section 116J.439.
(r) $100,000 in fiscal year 2020 is for a grant to FIRST in Upper Midwest to support competitive robotics teams. Funds must be used to make up to five awards of no more than $20,000 each to Minnesota-based public entities or private nonprofit organizations for the creation of competitive robotics hubs. Awards may be used for tools, equipment, and physical space to be utilized by robotics teams. At least 50 percent of grant funds must be used outside of the seven-county metropolitan area, as defined under Minnesota Statutes, section 473.121, subdivision 2. The grant recipient shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over jobs and economic growth by February 1, 2021, on the status of awards and include information on the number and amount of awards made, the number of customers served, and any outcomes resulting from the grant. The grant requires a 50 percent match from nonstate sources.
(s) $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.
(t) $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.
(u) $12,000 each year is for a grant to the Upper Minnesota Film Office.
(v) $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.
(w) $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.
(x) $1,350,000 each year is from the workforce development fund for jobs training grants under Minnesota Statutes, section 116L.42.
(y) $2,500,000 each year is for Launch Minnesota. 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;
(2)
$450,000 each year is for administration of Launch Minnesota; and
(3) $450,000 each year is for grantee activities at Launch Minnesota.
(z) $500,000 each year is from the workforce development fund 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.
(aa) $125,000 each year is for a grant to the Hmong Chamber of Commerce to train ethnically Southeast Asian business owners and operators in better business practices. This is a onetime appropriation and is available until June 30, 2023.
EFFECTIVE
DATE. This section is
effective retroactively from July 1, 2019.
Sec. 3. GRANT
TO THE NORTHEAST ENTREPRENEUR FUND; APPROPRIATION.
$1,148,000 in fiscal year 2021 is
appropriated from the general fund to the commissioner of employment and
economic development for a grant to the Northeast Entrepreneur Fund, a small
business administration microlender and community development financial institution
operating in northern Minnesota, to be made only upon the Northeast
Entrepreneur Fund's repayment of its current $1,148,000 loan issued by the
commissioner. Grant funds must be used
as capital for accessing additional federal lending for small businesses
impacted by COVID-19 and must be returned to the commissioner for deposit in
the general fund if the Northeast Entrepreneur Fund fails to secure such
federal funds before January 1, 2022. This
is a onetime appropriation.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. APPROPRIATION;
SMALL BUSINESS COVID-19 GRANT PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Commissioner" means the
commissioner of employment and economic development.
(c)
"Department" means the Department of Employment and Economic
Development.
(d) "Eligible organization"
means the Minnesota Initiative Foundations, community development financial
institutions, and other nonprofits the commissioner determines to be similarly
qualified.
(e) "Program" means the small
business COVID-19 grant program under this section.
Subd. 2. Appropriation. $50,000,000 in fiscal year 2021 is
appropriated from the general fund to the commissioner for the small business
COVID-19 grant program under this section.
Of this amount:
(1) $24,900,000 is for grants to the
Minnesota Initiative Foundations to provide grants to businesses in greater
Minnesota. Up to ten percent of this
amount may be used for the administrative costs of the Minnesota Initiative
Foundations;
(2) $24,900,000 is for grants to
eligible organizations to provide grants to businesses in the seven-county
metropolitan area defined in section 473.121, subdivision 2. Up to ten percent of this amount may be used
for the administrative costs of the eligible organizations; and
(3) $200,000 is for the administrative
costs of the department.
Any funds not spent by eligible
organizations by December 31, 2021, must be returned to the commissioner and
canceled back to the general fund.
Subd. 3. Distribution
of grants. (a) Of grants
given under this section, a minimum of:
(1) $10,000,000 must be awarded to
businesses that employ the equivalent of six full-time workers or less;
(2) $10,000,000 must be awarded to
minority business enterprises, as defined in Minnesota Statutes, section
116M.14, subdivision 5; and
(3) $3,000,000 must be awarded under
subdivision 5.
(b) No business may receive more than
one grant under this section.
Subd. 4. Grants
to businesses. (a) To be
eligible for a grant under this subdivision, a business must:
(1) have primary business operations
located in the state of Minnesota;
(2) be owned by a resident of the state
of Minnesota;
(3) employ the equivalent of 100
full-time workers or less; and
(4) be able to demonstrate financial
hardship as a result of the COVID-19 outbreak.
(b) Grants under this subdivision shall
be for no less than $5,000 and no more than $100,000.
(c) Grant funds must be used for
working capital to support payroll expenses, rent or mortgage payments, utility
bills, and other similar expenses that occur or have occurred since November 1,
2020, in the regular course of business, but not to refinance debt that existed
at the time of the governor's COVID-19 peacetime emergency declaration.
Subd. 5. Grants
to businesses renting space to other businesses. (a) To be eligible for a grant under
this subdivision, a business must:
(1) be an operator of privately owned
permanent indoor retail space that has an ethnic cultural emphasis and at least
12 tenants that are primarily businesses with fewer than 20 employees;
(2) have primary business operations
located in the state of Minnesota;
(3) be owned by a resident of the state
of Minnesota;
(4) employ the equivalent of 100
full-time workers or less; and
(5) be able to demonstrate financial
hardship as a result of the COVID-19 outbreak.
(b) Grants under this subdivision shall
be for no more than $250,000.
(c) Up to $20,000 of grant funds a
business receives may be used for working capital to support payroll expenses,
rent or mortgage payments, utility bills, and other similar expenses that occur
or have occurred since November 1, 2020, in the regular course of business, but
not to refinance debt that existed at the time of the governor's COVID-19
peacetime emergency declaration.
(d) The remainder of grant funds must be
used to maintain existing tenants of the operator through the issuing of
credits or forgiveness of rent. Any
tenant receiving such a benefit from the grant must meet the requirements under
subdivision 4, paragraph (a).
Subd. 6. Applications. (a) The commissioner may develop
criteria, forms, applications, and reporting requirements for use by eligible
organizations providing grants to businesses.
(b) All businesses applying for a grant
must include as part of their application a business plan for continued
operation.
Subd. 7. Exemptions. All grants and grant making processes
under this section are exempt from Minnesota Statutes, sections 16A.15,
subdivision 3; 16B.97; and 16B.98, subdivisions 5, 7, and 8. The commissioner must audit the use of grant
funds under this section in accordance with standard accounting practices. The exemptions under this paragraph expire on
December 30, 2021.
Subd. 8. Reports. (a) By January 31, 2022, eligible
organizations participating in the program must provide a report to the
commissioner that include descriptions of the businesses supported by the
program, the amounts granted, and an explanation of administrative expenses.
(b) By February 15, 2022, the
commissioner must report to the legislative committees in the house of
representatives and senate with jurisdiction over economic development about
grants made under this program based on the information received under
paragraph (a).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. CANCELLATIONS;
FISCAL YEAR 2021.
(a)
$1,022,000 of the fiscal year 2021 general fund appropriation under Laws 2019,
First Special Session chapter 7, article 1, section 2, subdivision 4, is
canceled.
(b) $25,000,000 of the fiscal year 2021
general fund appropriation under Laws 2020, Seventh Special Session chapter 2,
article 3, section 2, is canceled.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 3
DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT
Section 1. Minnesota Statutes 2020, section 116J.035, subdivision 6, is amended to read:
Subd. 6. Receipt of gifts, money; appropriation. (a) The commissioner may:
(1) apply for, accept, and disburse gifts, bequests, grants, payments for services, loans, or other property from the United States, the state, private foundations, or any other source;
(2) enter into an agreement required for the gifts, grants, or loans; and
(3) hold, use, and dispose of its assets according to the terms of the gift, grant, loan, or agreement.
(b) Money received by the commissioner under this subdivision must be deposited in a separate account in the state treasury and invested by the State Board of Investment. The amount deposited, including investment earnings, is appropriated to the commissioner to carry out duties under this section.
(c) Money received by the commissioner under
this subdivision for State Services for the Blind is exempt from depositing
gifts, bequests, charitable contributions, and similar contributions made
solely into the state treasury.
Sec. 2. Minnesota Statutes 2020, section 116J.431, subdivision 2, is amended to read:
Subd. 2. Eligible projects. (a) An economic development project for which a county or city may be eligible to receive a grant under this section includes:
(1) manufacturing;
(2) technology;
(3) warehousing and distribution;
(4) research and development;
(5) agricultural processing, defined as transforming, packaging, sorting, or grading livestock or livestock products into goods that are used for intermediate or final consumption, including goods for nonfood use; or
(6) industrial park development that would be used by any other business listed in this subdivision even if no business has committed to locate in the industrial park at the time the grant application is made.
(b) Up to 15 percent of the development
of a project may be for a purpose that is ancillary to the project but that is
not included under this subdivision as an eligible project. A city or county must provide notice to the
commissioner for the commissioner's approval of the proposed ancillary
development purpose.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to projects that have
been funded previously under Minnesota Statutes, section 116J.431.
Sec. 3. Minnesota Statutes 2020, section 116J.431, is amended by adding a subdivision to read:
Subd. 3a. Development
restrictions expiration. After
ten years from the date of the grant award under this section, a project that
has been developed for its original project purpose may be developed for any
lawful purpose.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to projects that have
been funded previously under Minnesota Statutes, section 116J.431.
Sec. 4. [116J.8736]
MICROENTERPRISE DEVELOPMENT PROGRAM.
Subdivision 1. Establishment. The commissioner of employment and
economic development shall establish the microenterprise development program to
award grants to microenterprise development organizations to encourage
microenterprise development.
Subd. 2. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Commissioner" means the
commissioner of employment and economic development.
(c) "Disadvantaged
entrepreneur" means an owner of a microenterprise who is a low-income
person or otherwise lacks adequate access to capital or other resources
essential for business success.
(d) "Low-income person" means
a person with an income adjusted for family size that does not exceed:
(1) for metropolitan areas, 80 percent
of median income; or
(2) for nonmetropolitan areas, the
greater of 80 percent of the area median income or 80 percent of the statewide
nonmetropolitan area median income.
(e) "Microenterprise" means a
business, including a start-up, home-based, or self-employed business, with no
more than five employees.
(f) "Microenterprise development
organization" means a nonprofit entity that provides one or more of the
services under subdivision 4 to disadvantaged entrepreneurs.
(g) "Program" means the
microenterprise development program established under this section.
Subd. 3. Grants
to microenterprise development organizations. The commissioner shall make grants to
microenterprise development organizations through a competitive grant process
based on criteria developed by the commissioner and shall consider each
applicant's:
(1) plan for providing business
development services and loans to microenterprises;
(2) scope of services to be provided;
(3) plan for coordinating services and
loans with financial institutions;
(4) ability to provide business training
and technical assistance to disadvantaged entrepreneurs;
(5) ability to monitor and provide
financial oversight of recipients of loans and services; and
(6) sources and sufficiency of operating
funds.
In selecting grant recipients, the commissioner shall
ensure that services are provided to all regions of the state, including both
metropolitan areas and communities in greater Minnesota.
Subd. 4. Eligible
uses of grant funds. Microenterprise
development organizations may use grant funds for any of the following
purposes:
(1) satisfying matching fund
requirements for federal or private grants or loans that will allow the
microenterprise development organization to provide another service under this
subdivision to disadvantaged entrepreneurs;
(2)
establishing a revolving loan fund for loans to disadvantaged entrepreneurs. The loans may be zero interest and must be
for no more than $25,000 per microenterprise;
(3) guaranteeing loans from private
financial institutions to disadvantaged entrepreneurs;
(4) providing technical assistance,
mentoring, training, or physical space to disadvantaged entrepreneurs; and
(5) up to ten percent of grant funds may
be used for the operating costs of the microenterprise development organization
and its administrative costs for the program.
Subd. 5. Reports
to the legislature. (a) By
December 1, 2023, and every December 1 thereafter until given permission by the
commissioner to cease reporting, grant recipients must submit a report to the
commissioner on the use of grant funds in the form that the commissioner
prescribes and include any documentation of and supporting information
regarding the grant that the commissioner requires, including:
(1) the demand for services under the
program;
(2) information on the types of
applicants seeking program services; and
(3) a list of all loans or loan
guarantees made, including the name of the recipient, the amount, and its
intended purpose.
(b) By December 31, 2023, and every
December 31 thereafter until all grant recipients have ceased reporting, the
commissioner must submit a report as required under Minnesota Statutes, section
3.195, that details the use of funds under this section, including the information
provided by grant recipients, as well as an analysis of the impact of the
program. A copy of this report must also
be sent to the chairs and ranking minority members of the committees of the
house of representatives and the senate having jurisdiction over economic
development.
Sec. 5. Minnesota Statutes 2020, section 116J.8748, subdivision 3, is amended to read:
Subd. 3. Minnesota job creation fund business designation; requirements. (a) To receive designation as a Minnesota job creation fund business, a business must satisfy all of the following conditions:
(1) the business is or will be engaged in, within Minnesota, one of the following as its primary business activity:
(i) manufacturing;
(ii) warehousing;
(iii) distribution;
(iv) information technology;
(v) finance;
(vi) insurance; or
(vii) professional or technical services;
(2) the business must not be primarily engaged in lobbying; gambling; entertainment; professional sports; political consulting; leisure; hospitality; or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, or primarily engaged in making retail sales to purchasers who are physically present at the business's location;
(3) the business must enter into a binding construction and job creation business subsidy agreement with the commissioner to expend directly, or ensure expenditure by or in partnership with a third party constructing or managing the project, at least $500,000 in capital investment in a capital investment project that includes a new, expanded, or remodeled facility within one year following designation as a Minnesota job creation fund business or $250,000 if the project 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; and:
(i) create at least ten new full-time employee positions within two years of the benefit date following the designation as a Minnesota job creation fund business or five new full-time employee positions within two years of the benefit date if the project 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; or
(ii) expend at least $25,000,000, which may include the installation and purchase of machinery and equipment, in capital investment and retain at least 200 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;
(4) positions or employees moved or relocated from another Minnesota location of the Minnesota job creation fund business must not be included in any calculation or determination of job creation or new positions under this paragraph; and
(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the working hours of an employee for the purpose of hiring an individual to satisfy job creation goals under this subdivision.
With the commissioner's authorization, the one-year period
requirement to meet minimum capital investment requirements under clause (3)
and the minimum job creation requirements under clause (3), item (i), may be
extended for up to 12 months for projects that must meet these requirements
within 12 months of an active peacetime emergency as declared by the governor.
(b) Prior to approving the proposed designation of a business under this subdivision, the commissioner shall consider the following:
(1) the economic outlook of the industry in which the business engages;
(2) the projected sales of the business that will be generated from outside the state of Minnesota;
(3) how the business will build on existing regional, national, and international strengths to diversify the state's economy;
(4) whether the business activity would occur without financial assistance;
(5) whether the business is unable to expand at an existing Minnesota operation due to facility or land limitations;
(6) whether the business has viable location options outside Minnesota;
(7) the effect of financial assistance on industry competitors in Minnesota;
(8) financial contributions to the project made by local governments; and
(9) any other criteria the commissioner deems necessary.
(c) Upon receiving notification of local approval under subdivision 2, the commissioner shall review the determination by the local government and consider the conditions listed in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local area to designate a business as a Minnesota job creation fund business.
(d) If the commissioner designates a business as a Minnesota job creation fund business, the business subsidy agreement shall include the performance outcome commitments and the expected financial value of any Minnesota job creation fund benefits.
(e) The commissioner may amend an agreement once, upon request of a local government on behalf of a business, only if the performance is expected to exceed thresholds stated in the original agreement.
(f) A business may apply to be designated as a Minnesota job creation fund business at the same location more than once only if all goals under a previous Minnesota job creation fund agreement have been met and the agreement is completed.
EFFECTIVE
DATE. This section is
effective retroactively from March 15, 2020.
Sec. 6. Minnesota Statutes 2020, section 116J.994, subdivision 6, is amended to read:
Subd. 6. Failure to meet goals. (a) The subsidy agreement must specify the recipient's obligation if the recipient does not fulfill the agreement. At a minimum, the agreement must require a recipient failing to meet subsidy agreement goals to pay back the assistance plus interest to the grantor or, at the grantor's option, to the account created under section 116J.551 provided that repayment may be prorated to reflect partial fulfillment of goals. The interest rate must be set at no less than the implicit price deflator for government consumption expenditures and gross investment for state and local governments prepared by the Bureau of Economic Analysis of the United States Department of Commerce for the 12-month period ending March 31 of the previous year. The grantor, after a public hearing, may extend for up to one year the period for meeting the wage and job goals under subdivision 4 provided in a subsidy agreement or up to two years if a peacetime emergency under section 12.31, subdivision 2, as declared by the governor is active during the initial two-year compliance period. A grantor may extend the period for meeting other goals under subdivision 3, paragraph (a), clause (3), by documenting in writing the reason for the extension and attaching a copy of the document to its next annual report to the department.
(b) A recipient that fails to meet the terms of a subsidy agreement may not receive a business subsidy from any grantor for a period of five years from the date of failure or until a recipient satisfies its repayment obligation under this subdivision, whichever occurs first.
(c) Before a grantor signs a business subsidy agreement, the grantor must check with the compilation and summary report required by this section to determine if the recipient is eligible to receive a business subsidy.
EFFECTIVE
DATE. This section is
effective retroactively from March 15, 2020.
Sec. 7. Minnesota Statutes 2020, section 116L.02, is amended to read:
116L.02
JOB SKILLS PARTNERSHIP PROGRAM.
(a) The Minnesota Job Skills
Partnership program is created to act as a catalyst to bring together employers
with specific training needs with educational or other nonprofit institutions
which can design programs to fill those needs.
The partnership shall work closely with employers to prepare, train and
place prospective or incumbent workers in identifiable positions as well as
assisting educational or other nonprofit institutions in developing training
programs that coincide with current and future employer requirements. The partnership shall provide grants to
educational or other nonprofit institutions for the purpose of training workers. A participating business must match the
grant-in-aid made by the Minnesota Job Skills Partnership. The match may be in the form of funding,
equipment, or faculty.
(b)
The partnership program is authorized to use funds to pay for training for
individuals who have incomes at or below 200 percent of the federal poverty
line. The board may grant funds to eligible
recipients to pay for board‑certified training. Eligible recipients of grants may include
public, private, or nonprofit entities that provide employment services to
low-income individuals.
Sec. 8. Minnesota Statutes 2020, section 116L.03, subdivision 1, is amended to read:
Subdivision 1. Members. The partnership shall be governed by a
board of 12 13 directors.
Sec. 9. Minnesota Statutes 2020, section 116L.03, subdivision 2, is amended to read:
Subd. 2. Appointment. The Minnesota Job Skills Partnership
Board consists of: seven eight
members appointed by the governor, the commissioner of employment and economic
development, the chancellor, or the chancellor's designee, of the Minnesota
State Colleges and Universities, the president, or the president's designee, of
the University of Minnesota, and two nonlegislator members, one appointed by
the Subcommittee on Committees of the senate Committee on Rules and
Administration and one appointed by the speaker of the house. If the chancellor or the president of the
university makes a designation under this subdivision, the designee must have
experience in technical education. Four
of the appointed members must be members of the governor's Workforce
Development Board, of whom two must represent organized labor and two must
represent business and industry. One
of the appointed members must be a representative of a nonprofit organization
that provides workforce development or job training services. Two of the members must be from
community-based organizations that have demonstrated experience and expertise
in addressing the employment, training, or education needs of individuals or
communities facing barriers to employment.
Sec. 10. Minnesota Statutes 2020, section 116L.03, subdivision 3, is amended to read:
Subd. 3. Qualifications. Members must have expertise in, and be
representative of one of the following fields of: education, job skills training, labor,
business, and or government.
Sec. 11. Minnesota Statutes 2020, section 116L.05, subdivision 5, is amended to read:
Subd. 5. Use of
workforce development funds. After
March 1 of any fiscal year, the board may use workforce development
funds appropriated under section 116L.20, subdivision 2, paragraph (b),
clause (1), for the purposes outlined in sections 116L.02 and 116L.04,
or to provide incumbent worker training services under section 116L.18 116L.21
and 116L.22 if the following conditions have been met:
(1) the board examines relevant economic indicators, including the projected number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of declining and expanding industries, the number of initial applications for and the number of exhaustions of unemployment benefits disaggregated by race and ethnicity, job vacancy data, and any additional relevant information brought to the board's attention;
(2) the board accounts for all allocations made in section 116L.17, subdivision 2;
(3) based on the past expenditures and projected revenue, the board estimates future funding needs for services under section 116L.17 for the remainder of the current fiscal year and the next fiscal year;
(4) the board determines there will be unspent funds after meeting the needs of dislocated workers in the current fiscal year and there will be sufficient revenue to meet the needs of dislocated workers in the next fiscal year; and
(5) the board reports its findings in clauses (1) to (4) to the chairs of legislative committees with jurisdiction over the workforce development fund, to the commissioners of revenue and management and budget, and to the public.
Sec. 12. Minnesota Statutes 2020, section 116L.17, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given them in this subdivision.
(b) "Commissioner" means the commissioner of employment and economic development.
(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time employment ceased or was working in the state at the time employment ceased and:
(1) has been temporarily or
permanently separated or has received a notice of temporary or permanent
separation from public or private sector employment and is eligible for or has
exhausted entitlement to unemployment benefits, and is unlikely to return to
the previous industry or occupation;
(2) has been long-term unemployed and has
limited opportunities for employment or reemployment in the same or a similar
occupation in the area in which the individual resides, including older
individuals who may have substantial barriers to employment by reason of age;
(3) (2) has been terminated or
has received a notice of termination of employment as a result of a plant
closing or a substantial layoff at a plant, facility, or enterprise;
(4) (3) has been self-employed,
including farmers and ranchers, and is unemployed as a result of general
economic conditions in the community in which the individual resides or because
of natural disasters;
(5) (4) is a veteran as
defined by section 197.447, has been discharged or released from active duty
under honorable conditions within the last 36 months, and (i) is unemployed or
(ii) is employed in a job verified to be below the skill level and earning
capacity of the veteran;
(6) (5) is an individual
determined by the United States Department of Labor to be covered by trade
adjustment assistance under United States Code, title 19, sections 2271 to
2331, as amended; or
(7) (6) is a displaced
homemaker. A "displaced
homemaker" is an individual who has spent a substantial number of years in
the home providing homemaking service and (i) has been dependent upon the
financial support of another; and now due to divorce, separation, death, or
disability of that person, must find employment to self support; or (ii)
derived the substantial share of support from public assistance on account of
dependents in the home and no longer receives such support. To be eligible under this clause, the support
must have ceased while the worker resided in Minnesota.
For the purposes of this section, "dislocated worker" does not include an individual who was an employee, at the time employment ceased, of a political committee, political fund, principal campaign committee, or party unit, as those terms are used in chapter 10A, or an organization required to file with the federal elections commission.
(d) "Eligible organization" means a state or local government unit, nonprofit organization, community action agency, business organization or association, or labor organization.
(e) "Plant closing" means the announced or actual permanent shutdown of a single site of employment, or one or more facilities or operating units within a single site of employment.
(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a result of a plant closing, and which results in an employment loss at a single site of employment during any 30-day period for at least 50 employees excluding those employees that work less than 20 hours per week.
Sec. 13. Minnesota Statutes 2020, section 116L.17, subdivision 4, is amended to read:
Subd. 4. Use of funds. Funds granted by the board under this section may be used for any combination of the following, except as otherwise provided in this section:
(1) employment transition services such as developing readjustment plans for individuals; outreach and intake; early readjustment; job or career counseling; testing; orientation; assessment of skills and aptitudes; provision of occupational and labor market information; job placement assistance; job search; job development; prelayoff assistance; relocation assistance; programs provided in cooperation with employers or labor organizations to provide early intervention in the event of plant closings or substantial layoffs; and entrepreneurial training and business consulting;
(2) support services, including assistance to
help the participant relocate to employ existing skills; out-of-area job search
assistance; family care assistance, including child care; commuting transportation
assistance; emergency housing and rental assistance; counseling assistance,
including personal and financial; health care; emergency health assistance;
emergency financial assistance; work-related tools and clothing; and other
appropriate support services that enable a person to participate in an
employment and training program with the goal of reemployment;
(3) specific, short-term training to help the participant enhance current skills in a similar occupation or industry; entrepreneurial training, customized training, or on-the-job training; basic and remedial education to enhance current skills; and literacy and work-related English training for non-English speakers;
(4) long-term training in a new occupation or industry, including occupational skills training or customized training in an accredited program recognized by one or more relevant industries. Long-term training shall only be provided to dislocated workers whose skills are obsolete and who have no other transferable skills likely to result in employment at a comparable wage rate. Training shall only be provided for occupations or industries with reasonable expectations of job availability based on the service provider's thorough assessment of local labor market information where the individual currently resides or is willing to relocate. This clause shall not restrict training in personal services or other such industries; and
(5) direct training services to provide a measurable increase in the job-related skills of participating incumbent workers, including basic assessment, counseling, and preemployment training services requested by the qualifying employer.
Sec. 14. Minnesota Statutes 2020, section 116L.20, subdivision 2, is amended to read:
Subd. 2. Disbursement of special assessment funds. (a) The money collected under this section shall be deposited in the state treasury and credited to the workforce development fund to provide for employment and training programs. The workforce development fund is created as a special account in the state treasury.
(b) All money in the fund not otherwise
appropriated or transferred is appropriated to the Job Skills Partnership Board
for the purposes of section 116L.17 and as provided for in paragraph (d). Of
the money in the fund not otherwise appropriated or transferred by July 1 of
each year:
(1) at least 30 percent is appropriated
to the Job Skills Partnership Board for the purposes of section 116L.17. If the conditions under section 116L.05,
subdivision 5, are met as of March 1 of each year, a minimum of 50 percent and
up to a maximum of 70 percent of the unspent money must be transferred for the
programs under sections 116L.21 and 116L.22;
(2) up to five percent is appropriated
to the Job Skills Partnership Board for the purposes of sections 116L.02 and
116L.04; and
(3) up to 65 percent is appropriated to
the commissioner for workforce development grants under subdivision 3.
(c) The board must act as the fiscal agent for the money and must disburse that money for the purposes of section 116L.17, not allowing the money to be used for any other obligation of the state. All money in the workforce development fund shall be deposited, administered, and disbursed in the same manner and under the same conditions and requirements as are provided by law for the other special accounts in the state treasury, except that all interest or net income resulting from the investment or deposit of money in the fund shall accrue to the fund for the purposes of the fund.
(c) (d) Reimbursement for costs
related to collection of the special assessment shall be in an amount
negotiated between the commissioner and the United States Department of Labor.
(d) If the board determines that the
conditions of section 116L.05, subdivision 5, have been met, the board may use
funds for the purposes outlined in section 116L.04, or to provide incumbent
worker training services under section 116L.18.
Sec. 15. Minnesota Statutes 2020, section 116L.20, is amended by adding a subdivision to read:
Subd. 3. Workforce
development grants. (a)
Grants awarded using money appropriated under subdivision 2, paragraph (b),
clause (3), must be allocated to maximize delivery to organizations with strong
relationships with individuals who are Black, Indigenous, or People of Color. Grant awards must be consistent with the
overall geographic population distribution of the state. Preference or priority for grant awards must
be given to organizations with experience serving communities with the greatest
needs that are Black, Indigenous, and People of Color.
(b) Of the amount appropriated under
subdivision 2, paragraph (b), clause (3):
(1) up to six percent is for
administration and monitoring of the workforce development programs; and
(2) grants must be made for programs
under sections 116L.362, 116L.561, 116L.562, 116L.96, 116L.981, and 116L.99.
(c) Of the amount appropriated under
subdivision 2, paragraph (b), clause (3), remaining after the appropriations
under paragraph (b):
(1) 50 percent is for removing barriers
to employment grants under section 116L.21; and
(2) 50 percent is for innovative
employment solutions grants under section 116L.22.
(d) When making competitive grants for
adult grantees, the commissioner shall benchmark outcomes against similar
populations with similar barriers to employment. The commissioner must consider the following
outcomes for competitive grant awards focused on adults: job placement and retention, wage levels, and
credentials attainment. The commissioner
must consider the following outcomes for competitive grant awards focused on
youth: work readiness, credentials, and
placement.
Sec. 16. [116L.21]
REMOVING BARRIERS TO EMPLOYMENT GRANT PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Commissioner" means the
commissioner of employment and economic development.
(c) "Minority" means a person
who identifies as a member of one or more of the following groups:
(1) Black, including persons having
origins of any of the Black African racial groups not of Hispanic origin;
(2)
Hispanic, including persons of Mexican, Puerto Rican, Cuban, Central American,
South American, or other Spanish culture or origin, regardless of race;
(3) Asian and Pacific Islander,
including persons having origins in any of the original peoples of the Far
East, Southeast Asia, the Indian subcontinent, or the Pacific Islands; and
(4) American Indian or Alaskan Native,
including persons having origins in any of the original people of North America
and maintaining identifiable Tribal affiliations through membership and
participation or community identification.
(d) "Program" means the
removing barriers to employment grant program under this section.
(e) "Targeted population"
means socially and economically disadvantaged minority populations who
experience complex needs and barriers to employment.
Subd. 2. Establishment. The commissioner shall establish a
competitive grant program for organizations to provide individuals with
barriers to employment the services, including supportive services, needed to
enter, participate in, and complete workforce preparation, training, and
education programs.
Subd. 3. Grants. (a) Grants under this section shall be
awarded on a competitive basis after consultation with the Grant Review
Advisory Council under section 116L.23.
(b) The commissioner must provide
outreach and technical assistance to prospective applicants.
(c) Grant applicants may be required to
participate in technical assistance activities, including but not limited to convening
communities of practice to identify and help replicate evidence-based practices
and to help facilitate an assessment and evaluation of grant performance and
initiative success.
Subd. 4. Award
criteria. (a) The
commissioner shall develop criteria for the selection of grant recipients that
focus on but are not limited to the applicant's demonstrated capacity to
provide services to targeted populations.
(b) Priority must be given to
applications that integrate individuals from targeted populations into career
pathway programs aligned with regional labor market needs.
(c) Grant awards must cumulatively
ensure the provision of services statewide and to a range of targeted
populations.
Subd. 5. Capacity
building grants. (a) A
portion of the money available for this program must be allocated for capacity
building competitive grants to small, culturally specific nonprofit
organizations that serve historically underserved cultural communities and have
an annual organizational budget of less than $500,000.
(b) Capacity building grants may be
used for the following purposes: organizational
infrastructure improvement, organizational workforce development, and the
creation or expansion of partnerships.
Subd. 6. Performance
outcome measures. Reporting
and performance outcomes for this program must comply with the requirements
under section 116L.98.
Subd. 7. Report
to the legislature. (a)
Within one year of receiving grant funds under this section, organizations must
each submit a written report to the commissioner on the use of grant funds.
(b)
Beginning in January 2023, the commissioner must submit a biennial report on
the information reported under paragraph (a), as required under section 3.195. A copy of this report must also be sent to
the chairs and ranking minority members of the committees of the house of
representatives and the senate having jurisdiction over workforce development.
Sec. 17. [116L.22]
INNOVATIVE EMPLOYMENT SOLUTIONS GRANT PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Commissioner" means the
commissioner of employment and economic development.
(c) "Department" means the
Department of Employment and Economic Development.
(d) "Minority" means a person
who identifies as a member of one or more of the following groups:
(1) Black, including persons having
origins of any of the Black African racial groups not of Hispanic origin;
(2) Hispanic, including persons of
Mexican, Puerto Rican, Cuban, Central American, South American, or other
Spanish culture or origin, regardless of race;
(3) Asian and Pacific Islander,
including persons having origins in any of the original peoples of the Far
East, Southeast Asia, the Indian subcontinent, or the Pacific Islands; and
(4) American Indian or Alaskan Native,
including persons having origins in any of the original people of North America
and maintaining identifiable Tribal affiliations through membership and
participation or community identification.
(e) "Performance measures"
means specific, measurable, time-based goals, the completion of which
predicates payment under a pay for performance agreement.
(f) "Program" means the
innovative employment solutions grant program under this section.
(g) "Targeted population"
means socially and economically disadvantaged minority populations who
experience complex needs and barriers to employment.
Subd. 2. Establishment. The commissioner shall establish a
competitive grant program for organizations to provide individuals with
barriers to employment the services, including supportive services needed to
enter, participate in, and complete workforce preparation, training, and
education programs aligned with regional labor market needs in innovative ways. This program shall fund new ideas and
approaches and work with organizations with no previous record of
accomplishments with the department. Priority
must be given to applications that integrate individuals from targeted
populations into career pathway programs aligned with regional labor market
needs.
Subd. 3. Grants. (a) Grants under this section shall be
awarded on a competitive basis after consultation with the Grant Review
Advisory Council under section 116L.23.
(b) The commissioner must provide outreach
and technical assistance to prospective applicants.
(c) Grant applicants may be required to
participate in technical assistance activities, including but not limited to
convening communities of practice to identify and help replicate evidence-based
practices and to help facilitate an assessment and evaluation of grant
performance and initiative success.
Subd. 4. Pay
for performance. (a) All
grants under the program must be pay for performance under a written agreement
with the commissioner that stipulates the specific project, services, time
period, number of participants, population targeted, and quantifiable
performance measures the applicant organization will achieve, along with an
amount of money that will be paid to the organization if those performance
measures are achieved within the stated time period.
(b) Achievement of the specified
performance measures shall be determined by an independent evaluator procured
by the organization.
(c) To enter into a written agreement
under this subdivision, the applicant organization must first provide evidence
that it has secured all necessary financing before service delivery begins and
must provide information on these sources of funding, including any matching
funds that will be used.
Subd. 5. Performance
outcome measures. Reporting
and performance outcomes for this program must comply with the requirements
under section 116L.98.
Subd. 6. Report
to legislature. (a) Within
one year of receiving grant funds under this section, organizations must each
submit a written report to the commissioner on the use of grant funds.
(b) Beginning in January 2023, the
commissioner must submit a biennial report on the information reported under
paragraph (a), as required under section 3.195.
A copy of this report must also be sent to the chairs and ranking
minority members of the committees of the house of representatives and the
senate having jurisdiction over workforce development.
Sec. 18. [116L.23]
GRANT REVIEW ADVISORY COUNCIL.
Subdivision 1. Establishment. The commissioner of employment and
economic development shall establish a Grant Review Advisory Council to review
grant applications and make recommendations to the commissioner.
Subd. 2. Appointment
of members. (a) By July 15, 2021,
the commissioner shall appoint 15 members to the advisory council. These members must have demonstrated
experience and expertise in workforce development and must represent a diverse
range of communities and perspectives.
(b) After the initial appointments,
members of the advisory council shall be appointed no later than January 15 of
every odd-numbered year and shall serve until January 15 of the next
odd-numbered year. Members may be
removed and vacancies filled as provided in section 15.059, subdivision 4. Appointed members are eligible for
reappointment and shall serve until their successors have been appointed.
Subd. 3. Operations. (a) The commissioner shall convene the
first meeting of the advisory council no later than August 1, 2021. The advisory council shall elect a chair and
other officers at its first meeting and biannually thereafter. The duties of these officers shall be
established by the advisory council.
(b) Members of the advisory council
serve without compensation or payment of expenses.
(c) The commissioner shall provide
meeting space and administrative services for the advisory council. All costs necessary to support the advisory
council's operations must be absorbed using existing appropriations available
to the commissioner.
(d) The advisory council is subject to
chapter 13D, but may close a meeting to discuss sensitive private business
information included in grant applications.
Data related to an application for a grant submitted to the advisory
council is governed by section 13.599.
Subd. 4. Review
of grants. The advisory
council shall establish criteria for ranking applicants for awards under each
grant program in which the council provides recommendations to the commissioner. This criteria must consider which applicants
are currently able or have the best potential to:
(1) reach a broad diverse audience,
including any populations targeted by the program, through their recruitment
and outreach efforts;
(2)
significantly increase enrollment in and completion of the training program the
applicant plans to promote; and
(3) fill existing market needs for
skilled workers.
The advisory council must also consider the documented
employment outcomes each applicant achieved when operating similar programs in
the past.
Subd. 5. Conflicts
of interest. A member of the
advisory council must not participate in the consideration of an application
submitted by anyone with whom the member has a financial or personal
relationship and must complete a conflict of interest form indicating the
nature of such a relationship before participating in the consideration of any
applicants in the same round of applications to that grant program.
Sec. 19. Minnesota Statutes 2020, section 116L.40, is amended by adding a subdivision to read:
Subd. 2a. Automation
technology. "Automation
technology" means a process or procedure performed with minimal human
assistance. Automation or automatic
control is the use of various control systems for operating equipment such as
machinery, processes in factories, or other applications with minimal or
reduced human intervention. Adoption,
implementation, and utilization of any one of three types of automation in
production are acceptable for consideration of this program, including fixed
automation, programmable automation, and flexible automation.
Sec. 20. Minnesota Statutes 2020, section 116L.40, subdivision 5, is amended to read:
Subd. 5. Employee. "Employee" means the individual employed in a new or existing job.
Sec. 21. Minnesota Statutes 2020, section 116L.40, subdivision 6, is amended to read:
Subd. 6. Employer. "Employer" means the individual, corporation, partnership, limited liability company, or association providing new jobs or investing in new automation technology and entering into an agreement.
Sec. 22. Minnesota Statutes 2020, section 116L.40, subdivision 9, is amended to read:
Subd. 9. Program
costs. "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.
Sec. 23. Minnesota Statutes 2020, section 116L.40, subdivision 10, is amended to read:
Subd. 10. Program services. "Program services" means training and education specifically directed to new or existing 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.
Sec. 24. Minnesota Statutes 2020, section 116L.41, subdivision 1, is amended to read:
Subdivision 1. Service
provision. Upon request, the
commissioner shall provide or coordinate the provision of program services
under sections 116L.40 to 116L.42 to a business eligible for grants under this
section 116L.42. 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 116L.42.
Sec. 25. Minnesota Statutes 2020, section 116L.41, is amended by adding a subdivision to read:
Subd. 1a. Job
training incentive program. (a)
The commissioner may provide grants in aid of up to $200,000 to new or
expanding employers at a location in Minnesota and outside of the metropolitan
area, as defined in section 473.121, subdivision 2, for the provision of
program services using the guidelines in this subdivision.
(b) The program must involve training
and education specifically directed to new jobs that are determined to be
appropriate by the commissioner.
(c) The program must give preference to
projects that provide training for economically disadvantaged people, people of
color, or people with disabilities and to employers located in economically
distressed areas.
(d) Employers are eligible for
reimbursement of program costs of up to $10,000 per new job for which training
is provided, with an additional $1,000 available per new job for an individual
with a disability.
Sec. 26. Minnesota Statutes 2020, section 116L.41, is amended by adding a subdivision to read:
Subd. 1b. Automation
incentive program. (a) The
commissioner may provide grants in aid of up to $35,000 to employers at a location in Minnesota outside of the metropolitan
area, as defined in section 473.121, subdivision 2, for the provision of
program services using the guidelines in this subdivision.
(b) The employer must be an existing
business located in Minnesota that is in the manufacturing or skilled assembly
production industry and has 150 or fewer full-time employees companywide.
(c) The employer must be invested in
new automation technology within the past year or plan to invest in new
automation technology within the project time frame specified in the agreement
under subdivision 3.
(d) The program must involve training
and education for full-time, permanent employees that is directly related to
the new automation technology.
(e) The program must give preference to
projects that provide training for economically disadvantaged people, people of
color, or people with disabilities and to employers located in economically
distressed areas.
(f) Employers are eligible for program
cost reimbursement of up to $5,000 per employee trained on new automation
technology and retained.
Sec. 27. Minnesota Statutes 2020, section 116L.41, subdivision 2, is amended to read:
Subd. 2. 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 receiving
training through the project must be paid wages of at least 120 percent of the
federal poverty guidelines for a family of four, plus benefits; 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 section 116L.42; 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.
Sec. 28. Minnesota Statutes 2020, section 116L.42, subdivision 1, is amended to read:
Subdivision 1. Recovery of program costs. Amounts paid by employers for program costs are repaid by a 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 training employees under a project.
Sec. 29. Minnesota Statutes 2020, section 116L.42, subdivision 2, is amended to read:
Subd. 2. Reports. (a) By February 1, 2018 2024,
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 or investments in automation technology; 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. 30. Minnesota Statutes 2020, section 116L.98, subdivision 1, is amended to read:
Subdivision 1. Requirements. The commissioner shall develop and implement a uniform outcome measurement and reporting system for adult workforce-related programs funded in whole or in part by state funds as well as for youth workforce-related programs funded in whole or in part by state funds. For the purpose of this section, "workforce-related programs" means all education and training programs administered by the commissioner and includes programs and services administered by the commissioner and provided to individuals enrolled in adult basic education under section 124D.52 and the Minnesota family investment program under chapter 256J.
Sec. 31. Minnesota Statutes 2020, section 116L.98, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this subdivision have the meanings given.
(b) "Credential" means
postsecondary degrees, diplomas, licenses, and certificates awarded in
recognition of an individual's attainment of measurable technical or
occupational skills necessary to obtain employment or advance with an
occupation. This definition does not
include certificates awarded by workforce investment boards or work‑readiness
certificates.
(c) "Exit" means to have not received service under a workforce program for 90 consecutive calendar days. The exit date is the last date of service.
(d) "Net impact" means the use of matched control groups and regression analysis to estimate the impacts attributable to program participation net of other factors, including observable personal characteristics and economic conditions.
(e) "Placement" means when a
participant exits into unsubsidized employment, postsecondary education, vocational
or occupational skills training, a registered apprenticeship, or the military.
(e) (f) "Pre-enrollment"
means the period of time before an individual was enrolled in a workforce
program.
Sec. 32. Minnesota Statutes 2020, section 116L.98, subdivision 3, is amended to read:
Subd. 3. Uniform outcome report card; reporting by commissioner. (a) By December 31 of each even‑numbered year, the commissioner must report to the chairs and ranking minority members of the committees of the house of representatives and the senate having jurisdiction over economic development and workforce policy and finance the following information separately for each of the previous two fiscal or calendar years, for each program subject to the requirements of subdivision 1:
(1) the total number of participants enrolled;
(2) the median pre-enrollment wages based on participant wages for the second through the fifth calendar quarters immediately preceding the quarter of enrollment excluding those with zero income;
(3) the total number of participants with zero income in the second through fifth calendar quarters immediately preceding the quarter of enrollment;
(4) the total number of participants enrolled in training;
(5) the total number of participants enrolled in training by occupational group;
(6) the total number of participants that exited the program and the average enrollment duration of participants that have exited the program during the year;
(7) the total number of exited participants who completed training;
(8) the total number of exited participants who attained a credential;
(9) the total number of participants employed during three consecutive quarters immediately following the quarter of exit, by industry;
(10) the median wages of participants employed during three consecutive quarters immediately following the quarter of exit;
(11) the total number of participants
employed during eight consecutive quarters immediately following the quarter of
exit, by industry; and
(12) the median wages of participants
employed during eight consecutive quarters immediately following the quarter of
exit;.
(13) the total cost of the program;
(14) the total cost of the program per
participant;
(15) the cost per credential received
by a participant; and
(16) the administrative cost of the
program.
(b) The report to the legislature
must contain participant information by education level, race and ethnicity,
gender, and geography, and a comparison of exited participants who completed
training and those who did not. The
report to the legislature shall include a summary of current program trends in
the state that are relevant to workforce development and employment outcomes.
(c) The requirements of this
section apply to programs administered directly by the commissioner or
administered by other organizations under a grant made by the department.
(b) For youth workforce-related
programs funded in whole or in part by state funds the following shall be
reported:
(1) the total number of participants
enrolled in training;
(2) the total number of participants
who completed training;
(3) the total number of exited
participants who have a placement in employment;
(4) the total number of exited
participants who have a placement in post-secondary education;
(5) the total number of exited
participants with a placement in occupational or vocational skills training,
apprenticeship training, or military training;
(6) the total number of exited
participants who have returned to school;
(7) the total number of exited
participants who earned academic credit or service learning credit for
work-based learning or participation in work experience;
(8)
the total number of exited participants who have earned their high school
diploma or GED;
(9) the total number of exited
participants who have earned a certificate or industry-recognized credential;
and
(10) the total number of exited
participants who have completed and attained a work readiness skills training. "Work readiness" means a
participant has the knowledge the participant needs in order to seek out
employment. Activities, programs, or
services must be designed to help an individual acquire a combination of basic
academic skills, critical thinking skills, digital literacy skills, and
self-management skills, including competencies in: (i) utilizing resources; (ii) using
information; (iii) working with others; (iv) understanding systems; (v) skills
necessary for successful transition into and completion of postsecondary
education or training, or employment; and (vi) other employability skills. Competencies are measured through a pre- and
post-training checklist completed and evaluated by employers.
Sec. 33. [116L.981]
PATHWAYS TO PROSPERITY PROGRAM.
Subdivision 1. Pathways
to prosperity. (a) The
commissioner shall establish a pathways to prosperity grant program to award
grants to organizations to train low-skill, low-income adults, and adults
facing the greatest employment disparities, and to assist them in finding
employment in high-demand industries with long-term employment opportunities.
(b) "Pathways to prosperity"
means a combination of rigorous and high-quality education, training, and other
services that:
(1) aligns with the skill needs of
high-growth industries in the state, regional, or local economy;
(2) prepares individuals to enter in
demand careers;
(3) includes counseling and to support
an individual in achieving the individual's education and career goals;
(4) includes, as appropriate, education
offered concurrently with and in the same context as workforce preparation
activities and training for a specific occupation or occupational cluster;
(5) organizes education, training, and
other services to meet the particular needs of an individual in a manner that
accelerates the educational and career advancement of the individual to the
extent practicable;
(6) enables an individual to attain a
relevant academic award, certificate, or industry-recognized credential; and
(7) helps an individual enter or advance
within a specific occupation or occupational cluster.
Subd. 2. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Career pathway" means a
career-readiness program that combines vocational skills training, education,
and support services and results in either industry-specific training or an
industry-recognized credential. Career
pathway includes sector specific vocational skills training that leads to
employment in high-demand occupations.
(c) "Pathways to prosperity grant
program" or "grant program" means the competitive grant program
created in this section.
Subd. 3. Competitive
grant process. (a) The
commissioner shall award grants to applicants through a competitive grant
process. This process shall include an
expedited application process for previous grant recipients that operate career
pathway programs that are aligned with current labor market needs and that are
meeting or exceeding their performance goals related to training and placement
for individuals facing multiple barriers to employment.
(b)
The commissioner shall develop criteria for making grants in consultation with
workforce development service providers.
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.
(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.
(e) All grants shall be two years in
length.
Subd. 4. Performance
metrics. Reporting and
performance outcomes for the grant program under this section shall comply with
the requirements under section 116L.98.
Sec. 34. Laws 2019, First Special Session chapter 7, article 2, section 8, is amended to read:
Sec. 8. LAUNCH
MINNESOTA.
Subdivision 1. Establishment. Launch Minnesota 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. Launch Minnesota 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 9.
(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 Minnesota Statutes, 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. "Innovative technology and
business" means a new novel business model or product; a derivative
product incorporating new elements into an existing product; a new use for a
product; or a new process or method for the manufacture, use, or assessment of
any product or activity, patentability, or scalability. Innovative technology or business model does
not include locally based retail, lifestyle, or business services. The business must not be engaged in real
estate development, insurance, banking, lending, lobbying, political
consulting, information technology consulting, wholesale or retail trade,
leisure, hospitality, transportation, construction, ethanol production from
corn, or professional services provided by attorneys, accountants, business
consultants, physicians, or health care consultants.
(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 or lawful permanent resident 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) (j) "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) (k) "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) (l) "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) (m) "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) (n) "Veteran"
has the meaning given in Minnesota Statutes, section 197.447.
(p) "Women" means persons of the
female gender.
(q) "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 commissioner, by and through Launch Minnesota, shall:
(1) support innovation and initiatives
designed to accelerate the growth of high-technology innovative
technology and business start-ups in Minnesota;
(2)
in partnership with other organizations, offer classes and instructional
sessions on how to start a high-tech and innovative an innovative
technology and business 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) accept grant applications under subdivisions 5, 6, and 7 and work with the advisory board to review and prioritize the applications and provide recommendations to the commissioner; and
(9) perform other duties at the commissioner's discretion.
Subd. 4. Administration. (a) The department commissioner
shall employ an executive director in the unclassified service, one staff
member to support Launch Minnesota, and one staff member in the business and
community development division to manage grants. The executive director shall:
(1) assist the commissioner and the advisory board in performing the duties of Launch Minnesota; and
(2) 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 Launch Minnesota shall may occupy and lease must be
physical space in a private coworking facility that includes office
space for staff and space for community engagement for training entrepreneurs. The physical space leased under this
paragraph is exempt from the requirements in Minnesota Statutes, section
16B.24, subdivision 6.
(c) At least three times per month, Launch
Minnesota staff shall visit communicate with organizations in
greater Minnesota that have received a grant under subdivision 7. To the extent possible, Launch Minnesota
shall form partnerships with organizations located throughout the state.
(d) Launch Minnesota must accept grant
applications under this section and provide funding recommendations to the
commissioner, who and the commissioner shall distribute grants
based in part on the recommendations.
Subd. 5. Application process. (a) The commissioner shall establish the application form and procedures for grants.
(b) Upon receiving recommendations from
Launch Minnesota, the department commissioner is responsible for
evaluating all applications using evaluation criteria which shall be developed
by Launch Minnesota in consultation with the advisory board and the
commissioner.
(c) For grants under subdivision 6, priority shall be given if the applicant is:
(1) a business or entrepreneur located in greater Minnesota; or
(2) a business owner, individual with a disability, or entrepreneur who is a woman, veteran, or minority group member.
(d) For grants under subdivision 7, priority shall be given if the applicant is planning to serve:
(1) businesses or entrepreneurs located in greater Minnesota; or
(2) business owners, individuals with disabilities, or entrepreneurs who are women, veterans, or minority group members.
(e) The department staff, and not Launch
Minnesota staff, is are responsible for awarding funding,
disbursing funds, and monitoring grantee performance for all grants awarded
under this section.
(f) Grantees must provide 50 percent in
matching funds by equal expenditures and grant payments must be provided
on a reimbursement basis after review of submitted receipts by the department.
(g) Grant applications must be accepted on a regular periodic basis by Launch Minnesota and must be reviewed by Launch Minnesota 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 $35,000 to an eligible business or entrepreneur for research and development expenses, direct business expenses, and the purchase of technical assistance or services from public higher education institutions and nonprofit entities. Research and development expenditures may include but are 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. Direct business expenses may include rent, equipment purchases, and supplier invoices. Taxes imposed by federal, state, or local government entities may not be reimbursed under this paragraph. Technical assistance or services must be purchased to assist in the development or commercialization of a product or service to be eligible. Each business or entrepreneur may receive only one grant per biennium under this paragraph.
(c) The commissioner shall provide a
grant of up to $7,500 to reimburse an entrepreneur for housing or child care
expenses for the entrepreneur or their spouse or children. Each entrepreneur may receive only one grant
per biennium under this paragraph.
(d) (c) The commissioner
shall provide a grant of up to $35,000 in Phase 1 or $50,000 in Phase
2 to an eligible business or entrepreneur that, as a registered client of
the Small Business Innovation Research (SBIR) program, has been awarded a first
time Phase 1 or 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 per biennium
under this paragraph. Grants under this
paragraph are not subject to the requirements of subdivision 2, paragraph (l)
(k), but do require a recommendation from the Launch Minnesota advisory
board.
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
Launch Minnesota. The evaluation
criteria must be developed by Launch Minnesota, in consultation with the
advisory board, and the commissioner, and priority must be given to an
applicant who demonstrates activity assisting businesses business
owners or entrepreneurs residing in greater Minnesota or who are women,
veterans, or minority group members.
(c) Department staff other than Launch
Minnesota staff is are 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
innovative 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
innovative 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. Launch Minnesota shall report by December 31, 2022, and again by December 31, 2023, 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. Each report shall include information on the work completed, including awards made by the department under this section and progress toward transferring some activities of Launch Minnesota to an entity outside of state government.
Subd. 9. Advisory board. (a) The commissioner shall establish an advisory board to advise the executive director regarding the activities of Launch Minnesota, make the recommendations described in this section, and develop and initiate a strategic plan for transferring some activities of Launch Minnesota to a new or existing public‑private partnership or nonprofit organization outside of state government.
(b) The advisory board shall consist of ten
12 members and is governed by Minnesota Statutes, section 15.059. A minimum of seven members must be from the
private sector representing business and at least two members but no more than
three members must be from government and higher education. At least three of the members of the advisory
board shall be from greater Minnesota and at least three members shall be
minority group members. 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.
(d) The commissioner, or a designee, shall serve as an ex-officio, nonvoting member of the advisory board.
Subd. 10. Expiration. This section expires January 1, 2024.
Sec. 35. GRANT
EXCEPTIONS.
Notwithstanding Minnesota Statutes,
sections 116J.8731, subdivision 5, and 116J.8748, subdivision 4, the
commissioner may approve a Minnesota investment fund grant or job creation fund
grant of up to $2,000,000 for qualified applicants. This section expires July 1, 2022.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 36. 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, 2022. 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, 2023, a home rule
charter or statutory city, county, or town that exercises the option under
paragraph (a) shall submit to the chairs of the legislative committees with
jurisdiction over economic development policy and finance an accounting and
explanation of the use and distribution of the funds.
Sec. 37. REPEALER.
Minnesota Statutes 2020, section
116L.18, is repealed.
ARTICLE 4
FAMILY AND MEDICAL BENEFITS
Section 1. Minnesota Statutes 2020, 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 2020, 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.14, subdivision 3, 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 2020, 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, and must make statements available for review or printing for a period of three years.
(b) The earnings statement may be in any form determined by the employer but must include:
(1) the name of the employee;
(2) the rate or rates of pay 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;
(5) the total amount of gross pay earned by the employee during that period;
(6) a list of deductions made from the employee's pay;
(7) any amount deducted by the employer
under section 268B.14, subdivision 3, and the amount paid by the employer based
on the employee's wages under section 268B.14, subdivision 1;
(7) (8) the net amount of pay
after all deductions are made;
(8) (9) the date on which the
pay period ends;
(9) (10) the legal name of
the employer and the operating name of the employer if different from the legal
name;
(10) (11) the physical
address of the employer's main office or principal place of business, and a
mailing address if different; and
(11) (12) 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 number of days in the pay period, the regularly scheduled pay day, and the pay day on which the employee will receive the first payment of wages earned;
(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. The English version of the notice must include text provided by the commissioner that informs employees that they may request, by indicating on the form, the notice be provided in a particular language. If requested, the employer shall provide the notice in the language requested by the employee. The commissioner shall make available to employers the text to be included in the English version of the notice required by this section and assist employers with translation of the notice in the languages requested by their employees.
(f) An employer must provide the employee any written changes to the information contained in the notice under paragraph (d) prior to the date the changes take effect.
Sec. 4. Minnesota Statutes 2020, 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 Supplemental Nutrition Assistance Program (SNAP) benefits, 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.
Subd. 2. Applicant. "Applicant" means an
individual applying for leave with benefits under this chapter.
Subd. 3. 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. 4. Base
period. (a) "Base
period," unless otherwise provided in this subdivision, means the most
recent four completed calendar quarters before the effective date of an
applicant's application for family or medical leave benefits if the application
has an effective date occurring after the month following the most recent completed
calendar quarter. The base period under
this paragraph is as follows:
If the application for family
or medical leave benefits is effective on or between these dates: |
The base period is the prior: |
February 1 to March 31 |
January 1 to December 31 |
May 1 to June 30 |
April 1 to March 31 |
August 1 to September 30 |
July 1 to June 30 |
November 1 to December 31 |
October 1 to September 30 |
(b) If an application for family or
medical leave benefits has an effective date that is during the month following
the most recent completed calendar quarter, then the base period is the first
four of the most recent five completed calendar quarters before the effective
date of an applicant's application for family or medical leave benefits. The base period under this paragraph is as
follows:
If the application for family
or medical leave benefits is effective on or between these dates: |
The base period is the prior: |
January 1 to January 31 |
October 1 to September 30 |
April 1 to April 30 |
January 1 to December 31 |
July 1 to July 31 |
April 1 to March 31 |
October 1 to October 31 |
July 1 to June 30 |
(c) Regardless of paragraph (a), a base
period of the first four of the most recent five completed calendar quarters
must be used if the applicant would have more wage credits under that base
period than under a base period of the four most recent completed calendar
quarters.
(d)
If the applicant has insufficient wage credits to establish a benefit account
under a base period of the four most recent completed calendar quarters, or a
base period of the first four of the most recent five completed calendar
quarters, but during either base period the applicant received workers'
compensation for temporary disability under chapter 176 or a similar federal
law or similar law of another state, or if the applicant whose own serious
illness caused a loss of work for which the applicant received compensation for
loss of wages from some other source, the applicant may request a base period
as follows:
(1) if an applicant was compensated for
a loss of work of seven to 13 weeks during a base period referred to in
paragraph (a) or (b), then the base period is the first four of the most recent
six completed calendar quarters before the effective date of the application
for family or medical leave benefits;
(2) if an applicant was compensated for
a loss of work of 14 to 26 weeks during a base period referred to in paragraph
(a) or (b), then the base period is the first four of the most recent seven
completed calendar quarters before the effective date of the application for
family or medical leave benefits;
(3) if an applicant was compensated for
a loss of work of 27 to 39 weeks during a base period referred to in paragraph
(a) or (b), then the base period is the first four of the most recent eight
completed calendar quarters before the effective date of the application for
family or medical leave benefits; and
(4) if an applicant was compensated for
a loss of work of 40 to 52 weeks during a base period referred to in paragraph
(a) or (b), then the base period is the first four of the most recent nine
completed calendar quarters before the effective date of the application for
family or medical leave benefits.
Subd. 5. Benefit. "Benefit" or
"benefits" means 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 account. "Benefit account" means a benefit account established under section 268B.04.
Subd. 7. Benefit
year. "Benefit
year" means the period of 52 calendar weeks beginning the date a benefit account under section 268B.04 is effective. For a benefit account established effective
any January 1, April 1, July 1, or October 1, the benefit year will be a
period of 53 calendar weeks.
Subd. 8. 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. 9. Calendar
day. "Calendar day"
or "day" means a fixed 24-hour period corresponding to a single
calendar date.
Subd. 10. Calendar
quarter. "Calendar
quarter" means the period of three consecutive calendar months ending on
March 31, June 30, September 30, or December 31.
Subd. 11. Calendar
week. "Calendar
week" has the same meaning as "week" under subdivision 46.
Subd. 12. Commissioner. "Commissioner" means the
commissioner of employment and economic development, unless otherwise indicated
by context.
Subd. 13. Covered
employment. (a) "Covered
employment" means performing services of whatever nature, unlimited by the
relationship of master and servant as known to the common law, or any other
legal relationship performed for wages or under any contract calling for the
performance of services, written or oral, express or implied.
(b) "Employment" includes an
individual's entire service performed within or without or both within and
without this state, if:
(1) the service is localized in this
state; or
(2) the service is not localized in any
state, but some of the service is performed in this state and:
(i) the base of operations of the
employee is in the state, or if there is no base of operations, then the place
from which such service is directed or controlled is in this state; or
(ii) the base of operations or place
from which such service is directed or controlled is not in any state in which
some part of the service is performed, but the individual's residence is in
this state.
(c) "Covered employment" does
not include:
(1) a self-employed individual; or
(2) an independent contractor.
Subd. 14. Department. "Department" means the
Department of Employment and Economic Development, unless otherwise indicated
by context.
Subd. 15. Employee. (a) "Employee" means an
individual who is in the employment of an employer.
(b) Employee does not include employees
of the United States of America.
Subd. 16. Employer. (a) "Employer" means:
(1) any person, type of organization,
or entity, including any partnership, association, trust, estate, joint stock
company, insurance company, limited liability company, or corporation, whether
domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or the
legal representative of a deceased person, having any individual in covered
employment;
(2) the state, statewide system, and
state agencies; and
(3) any local government entity,
including but not limited to a county, city, town, school district, municipal
corporation, quasimunicipal corporation, or other political subdivision. An employer also includes charter schools.
(b) Employer does not include:
(1) the United States of America; or
(2) a self-employed individual who has
elected and been approved for coverage under section 268B.11 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
and medical benefit insurance account.
"Family and medical benefit insurance account" means
the family and medical benefit insurance account in the special revenue fund in
the state treasury under section 268B.02.
Subd. 19. Family
and medical benefit insurance enforcement account. "Family and medical benefit
insurance enforcement account" means the family and medical benefit
insurance enforcement account in the state treasury under section 268B.185.
Subd. 20. 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. 21. 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. 22. 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 domestic partner.
(b) For the purposes of this chapter, a
child includes a stepchild, biological, adopted, or foster child of the
employee, or a child for whom the employee is standing in loco parentis.
(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 leave under this chapter.
Subd. 23. Health
care provider. "Health
care provider" means:
(1) an individual who is licensed,
certified, or otherwise authorized under law to practice in the individual's
scope of practice as a physician, osteopath, surgeon, or advanced practice
registered nurse; or
(2) any other individual determined by
the commissioner by rule, in accordance with the rulemaking procedures in the
Administrative Procedure Act, to be capable of providing health care services.
Subd. 24. High
quarter. "High
quarter" means the calendar quarter in an applicant's base period with the
highest amount of wage credits.
Subd. 25. Incapacity. "Incapacity" means inability
to perform regular work, attend school, or perform other regular daily
activities due to a serious health condition, treatment therefore, or recovery
therefrom.
Subd. 26. 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 shall 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. 27. Inpatient
care. "Inpatient
care" means an overnight stay in a hospital, hospice, or residential
medical care facility, including any period of incapacity, or any subsequent
treatment in connection with such inpatient care.
Subd. 28. Maximum
weekly benefit amount. "Maximum
weekly benefit amount" means the state's average weekly wage as calculated
under section 268.035, subdivision 23.
Subd. 29. 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. 30. 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. 31. Pregnancy. "Pregnancy" means prenatal
care or incapacity due to pregnancy or recovery from childbirth, still birth,
miscarriage, or related health conditions.
Subd. 32. 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. 33. 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. 34. 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. 35. 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. 36. 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. 37. Serious
health condition. (a)
"Serious health condition" means a physical or mental illness,
injury, impairment, condition, or substance use disorder that involves:
(1)
at-home care or inpatient care in a hospital, hospice, or residential medical
care facility, including any period of incapacity; or
(2) continuing treatment or supervision
by a health care provider which includes any one or more of the following:
(i) 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:
(A) treatment two or more times by a
health care provider or by a provider of health care services under orders of,
or on referral by, a health care provider; or
(B) 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;
(ii) a period of incapacity due to
pregnancy, or for prenatal care;
(iii) a period of incapacity or
treatment for a chronic health condition that:
(A) requires periodic visits, defined
as at least twice a year, for treatment by a health care provider or under
orders of, or on referral by, a health care provider;
(B) continues over an extended period
of time, including recurring episodes of a single underlying condition; and
(C) may cause episodic rather than
continuing periods of incapacity;
(iv) a period of incapacity which is
permanent or long term due to a condition for which treatment may not be
effective. The employee or family member
must be under the continuing supervision of, but need not be receiving active
treatment by, a health care provider; or
(v) a period of absence to receive
multiple treatments, including any period of recovery from the treatments, by a
health care provider or by a provider of
health care services under orders of, or on referral by, a health care
provider, for:
(A) restorative surgery after an
accident or other injury; or
(B) a condition that would likely
result in a period of incapacity of more than three consecutive, full calendar
days in the absence of medical intervention or treatment.
(b) For the purposes of paragraph (a),
clauses (1) and (2), treatment by a health care provider means an in-person
visit or telemedicine visit with a health care provider, or by a provider of
health care services under orders of, or on referral by, a health care
provider.
(c) For the purposes of paragraph (a),
treatment includes but is not limited to examinations to determine if a serious
health condition exists and evaluations of the condition.
(d) Absences attributable to incapacity
under paragraph (a), clause (2), item (ii) or (iii), qualify for leave under
this chapter even if the employee or the family member does not receive
treatment from a health care provider during the absence, and even if the
absence does not last more than three consecutive, full calendar days.
Subd. 38. State's
average weekly wage. "State's
average weekly wage" means the weekly wage calculated under section
268.035, subdivision 23.
Subd. 39. Supplemental
benefit payment. (a)
"Supplemental benefit payment" means:
(1) a payment made by an employer to an
employee as salary continuation or as paid time off. Such a payment must be in addition to any
family or medical leave benefits the employee is receiving under this chapter;
and
(2) a payment offered by an employer to
an employee who is taking leave under this chapter to supplement the family or
medical leave benefits the employee is receiving.
(b) Employers may, but are not required
to, designate certain benefits including but not limited to salary
continuation, vacation leave, sick leave, or other paid time off as a
supplemental benefit payment.
(c) Nothing in this chapter requires an
employee to receive supplemental benefit payments.
Subd. 40. Taxable
year. "Taxable
year" has the meaning given in section 290.01, subdivision 9.
Subd. 41. Taxable
wages. "Taxable
wages" means those wages paid to an employee in covered employment each
calendar year up to an amount equal to the maximum wages subject to premium in
a calendar year, which is equal to the maximum earnings in that year subject to
the FICA Old-Age, Survivors, and Disability Insurance tax rounded to the
nearest $1,000.
Subd. 42. Typical
workweek hours. "Typical
workweek hours" means:
(1) for an hourly employee, the average
number of hours worked per week by an employee within the high quarter during
the base year; or
(2) 40 hours for a salaried employee,
regardless of the number of hours the salaried employee typically works.
Subd. 43. Wage
credits. "Wage
credits" means the amount of wages paid within an applicant's base period
for covered employment, as defined in subdivision 13.
Subd. 44. Wage
detail report. "Wage
detail report" means the report on each employee in covered employment
required from an employer on a calendar quarter basis under section 268B.12.
Subd. 45. Wages. (a) "Wages" means all
compensation for employment, including commissions; bonuses, awards, and
prizes; severance payments; standby pay; vacation and holiday pay; back pay as
of the date of payment; tips and gratuities paid to an employee by a customer
of an employer and accounted for by the employee to the employer; sickness and
accident disability payments, except as otherwise provided in this subdivision;
and the cash value of housing, utilities, meals, exchanges of services, and any
other goods and services provided to compensate an employee, except:
(1) the amount of any payment made to,
or on behalf of, an employee under a plan established by an employer that makes
provision for employees generally or for a class or classes of employees,
including any amount paid by an employer for insurance or annuities, or into a
plan, to provide for a payment, on account of (i) retirement, (ii) medical and
hospitalization expenses in connection with sickness or accident disability, or
(iii) death;
(2) the payment by an employer of the
tax imposed upon an employee under United States Code, title 26, section 3101
of the Federal Insurance Contribution Act, with respect to compensation paid to
an employee for domestic employment in a private household of the employer or
for agricultural employment;
(3)
any payment made to, or on behalf of, an employee or beneficiary (i) from or to
a trust described in United States Code, title 26, section 401(a) of the
federal Internal Revenue Code, that is exempt from tax under section 501(a) at
the time of the payment unless the payment is made to an employee of the trust
as compensation for services as an employee and not as a beneficiary of the
trust, or (ii) under or to an annuity plan that, at the time of the payment, is
a plan described in section 403(a);
(4) the value of any special discount
or markdown allowed to an employee on goods purchased from or services supplied
by the employer where the purchases are optional and do not constitute regular
or systematic payment for services;
(5) customary and reasonable directors'
fees paid to individuals who are not otherwise employed by the corporation of
which they are directors;
(6) the payment to employees for
reimbursement of meal expenses when employees are required to perform work
after their regular hours;
(7) the payment into a trust or plan
for purposes of providing legal or dental services if provided for all
employees generally or for a class or classes of employees;
(8) the value of parking facilities
provided or paid for by an employer, in whole or in part, if provided for all
employees generally or for a class or classes of employees;
(9) royalties to an owner of a
franchise, license, copyright, patent, oil, mineral, or other right;
(10) advances or reimbursements for
traveling or other ordinary and necessary expenses incurred or reasonably
expected to be incurred in the business of the employer. Traveling and other reimbursed expenses must
be identified either by making separate payments or by specifically indicating
the separate amounts where both wages and expense allowances are combined in a
single payment;
(11) residual payments to radio,
television, and similar artists that accrue after the production of television
commercials, musical jingles, spot announcements, radio transcriptions, film
soundtracks, and similar activities;
(12) the income to a former employee
resulting from the exercise of a nonqualified stock option;
(13) supplemental unemployment benefit
payments under a plan established by an employer, if the payment is not wages
under the Federal Unemployment Tax Act. The
payments are wages unless made solely for the supplementing of weekly state or
federal unemployment benefits. Supplemental
unemployment benefit payments may not be assigned, nor may any consideration be
required from the applicant, other than a release of claims in order to be
excluded from wages;
(14) sickness or accident disability
payments made by the employer after the expiration of six calendar months
following the last calendar month that the individual worked for the employer;
(15) disability payments made under the
provisions of any workers' compensation law;
(16) sickness or accident disability
payments made by a third-party payer such as an insurance company; or
(17) payments made into a trust fund,
or for the purchase of insurance or an annuity, to provide for sickness or
accident disability payments to employees under a plan or system established by
the employer that provides for the employer's employees generally or for a
class or classes of employees.
(b)
Nothing in this subdivision excludes from the term "wages" any
payment made under any type of salary reduction agreement, including payments
made under a cash or deferred arrangement and cafeteria plan, as defined in
United States Code, title 26, sections 401(k) and 125 of the federal Internal
Revenue Code, to the extent that the employee has the option to receive the
payment in cash.
(c) Wages includes the total payment to
the operator and supplier of a vehicle or other equipment where the payment
combines compensation for personal services as well as compensation for the
cost of operating and hiring the equipment in a single payment. This paragraph does not apply if:
(1) there is a preexisting written
agreement providing for allocation of specific amounts; or
(2) at the time of each payment there
is a written acknowledgment indicating the separate allocated amounts.
(d) Wages includes payments made for
services as a caretaker. Unless there is
a contract or other proof to the contrary, compensation is considered as being
equally received by a married couple where the employer makes payment to only
one spouse, or by all tenants of a household who perform services where two or
more individuals share the same dwelling and the employer makes payment to only
one individual.
(e) Wages includes payments made for
services by a migrant family. Where
services are performed by a married couple or a family and an employer makes
payment to only one individual, each worker is considered as having received an
equal share of the compensation unless there is a contract or other proof to
the contrary.
(f) Wages includes advances or draws
against future earnings, when paid, unless the payments are designated as a
loan or return of capital on the books and records of the employer at the time
of payment.
(g) Wages includes payments made by a
subchapter "S" corporation, as organized under the Internal Revenue
Code, to or on behalf of officers and shareholders that are reasonable
compensation for services performed for the corporation.
For a subchapter "S" corporation, wages does not
include:
(1) a loan for business purposes to an
officer or shareholder evidenced by a promissory note signed by an officer
before the payment of the loan proceeds and recorded on the books and records
of the corporation as a loan to an officer or shareholder;
(2) a repayment of a loan or payment of
interest on a loan made by an officer to the corporation and recorded on the
books and records of the corporation as a liability;
(3) a reimbursement of reasonable
corporation expenses incurred by an officer and documented by a written expense
voucher and recorded on the books and records of the corporation as corporate
expenses; and
(4) a reasonable lease or rental
payment to an officer who owns property that is leased or rented to the
corporation.
Subd. 46. Wages
paid. (a) "Wages
paid" means the amount of wages:
(1) that have been actually paid; or
(2) that have been credited to or set
apart so that payment and disposition is under the control of the employee.
(b)
Wage payments delayed beyond the regularly scheduled pay date are wages paid on
the missed pay date. Back pay is wages
paid on the date of actual payment. Any
wages earned but not paid with no scheduled date of payment are wages paid on
the last day of employment.
(c) Wages paid does not include wages
earned but not paid except as provided for in this subdivision.
Subd. 47. Week. "Week" means calendar week
ending at midnight Saturday.
Subd. 48. Weekly
benefit amount. "Weekly
benefit amount" means the amount of family and medical leave benefits computed
under section 268B.04.
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.18.
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]
PAYMENT OF BENEFITS.
Subdivision 1. Requirements. The commissioner must pay benefits
from the family and medical benefit insurance account as provided under this
chapter to an applicant who has met each of the following requirements:
(1) the applicant has filed an
application for benefits and established a benefit account in accordance with
section 268B.04;
(2) the applicant has met all of the
ongoing eligibility requirements under section 268B.06;
(3) the applicant does not have an
outstanding overpayment of family or medical leave benefits, including any
penalties or interest;
(4) the applicant has not been held
ineligible for benefits under section 268.07, subdivision 2; and
(5) the applicant is not employed
exclusively by a private plan employer and has wage credits during the base
year attributable to employers covered under the state family and medical leave
program.
Subd. 2. Benefits
paid from state funds. Benefits
are paid from state funds and are not considered paid from any special
insurance plan, nor as paid by an employer.
An application for family or medical leave benefits is not considered a claim
against an employer but is considered a request for benefits from the family
and medical benefit insurance account. The
commissioner has the responsibility for the proper payment of benefits
regardless of the
level
of interest or participation by an applicant or an employer in any
determination or appeal. An applicant's
entitlement to benefits must be determined based upon that information
available without regard to a burden of proof.
Any agreement between an applicant and an employer is not binding on the
commissioner in determining an applicant's entitlement. There is no presumption of entitlement or
nonentitlement to benefits.
Sec. 8. [268B.04]
BENEFIT ACCOUNT; BENEFITS.
Subdivision 1. Application
for benefits; determination of benefit account. (a) An application for benefits may be
filed in person, by mail, or by electronic transmission as the commissioner may
require. The applicant must include
certification supporting a request for leave under this chapter. The applicant must meet eligibility
requirements at the time the application is filed and must provide all
requested information in the manner required.
If the applicant does not meet eligibility at the time of the
application or fails to provide all requested information, the communication is
not an application for family and medical leave benefits.
(b) The commissioner must examine each
application for benefits to determine the base period and the benefit year, and
based upon all the covered employment in the base period the commissioner must
determine the weekly benefit amount available, if any, and the maximum amount
of benefits available, if any. The
determination, which is a document separate and distinct from a document titled
a determination of eligibility or determination of ineligibility, must be
titled determination of benefit account.
A determination of benefit account must be sent to the applicant and all
base period employers, by mail or electronic transmission.
(c) If a base period employer did not
provide wage detail information for the applicant as required under section
268B.12, the commissioner may accept an applicant certification of wage
credits, based upon the applicant's records, and issue a determination of
benefit account.
(d) The commissioner may, at any time
within 24 months from the establishment of a benefit account, reconsider any
determination of benefit account and make an amended determination if the
commissioner finds that the wage credits listed in the determination were
incorrect for any reason. An amended
determination of benefit account must be promptly sent to the applicant and all
base period employers, by mail or electronic transmission. This paragraph does not apply to documents
titled determinations of eligibility or determinations of ineligibility issued.
(e) If an amended determination of
benefit account reduces the weekly benefit amount or maximum amount of benefits
available, any benefits that have been paid greater than the applicant was
entitled is an overpayment of benefits. A
determination or amended determination issued under this section that results
in an overpayment of benefits must set out the amount of the overpayment and
the requirement that the overpaid benefits must be repaid according to section
268B.185.
Subd. 2. Benefit
account requirements. (a)
Unless paragraph (b) applies, to establish a benefit account, an applicant must
have wage credits of at least 5.3 percent of the state's average annual wage
rounded down to the next lower $100.
(b) To establish a new benefit account
following the expiration of the benefit year on a prior benefit account, an
applicant must have performed actual work in subsequent covered employment and
have been paid wages in one or more completed calendar quarters that started
after the effective date of the prior benefit account. The wages paid for that employment must be at
least enough to meet the requirements of paragraph (a). A benefit account under this paragraph must
not be established effective earlier than the Sunday following the end of the
most recent completed calendar quarter in which the requirements of paragraph
(a) were met. An applicant must not
establish a second benefit account as a result of one loss of employment.
Subd. 3. Weekly
benefit amount; maximum amount of benefits available; prorated 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
typical workweek and weekly wage during the high quarter of the base period:
(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) The maximum weekly benefit amount
is the state's average weekly wage as calculated under section 268.035,
subdivision 23.
(d) The state's maximum weekly benefit
amount, computed in accordance with section 268.035, subdivision 23, applies to
a benefit account established effective on or after the last Sunday in October. Once established, an applicant's weekly
benefit amount is not affected by the last Sunday in October change in the
state's maximum weekly benefit amount.
(e) For an employee receiving family or
medical leave, a weekly benefit amount is prorated when:
(1) the employee works hours for wages;
or
(2) the employee uses paid sick leave,
paid vacation leave, or other paid time off that is not considered a
supplemental benefit payment as defined in section 268B.01, subdivision 37.
Subd. 4. Timing
of payment. Except as
otherwise provided for in this chapter, benefits must be paid weekly.
Subd. 5. 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. 6. 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 duration
of eight consecutive hours in a week. If
an employee on leave claims eight hours at any point during a week, the minimum
duration is satisfied.
Subd. 7. Right
of appeal. (a) A
determination or amended determination of benefit account is final unless an
applicant files an appeal within 20 calendar days after the sending of the
determination or amended determination. Every
determination or amended determination of benefit account must contain a
prominent statement indicating in clear language the consequences of not
appealing. Proceedings on the appeal are
conducted in accordance with section 268B.08.
(b) Any applicant may appeal from a
determination or amended determination of benefit account on the issue of
whether services performed constitute employment, whether the employment is
covered employment, and whether money paid constitutes wages.
Subd. 8. Limitations
on applications and benefit accounts.
(a) An application for family or medical leave benefits is
effective the Sunday of the calendar week that the application was filed. An application for benefits may be backdated
one calendar week before the Sunday of the week the application was actually
filed if the applicant
requests
the backdating within seven calendar days of the date the application is filed. An application may be backdated only if the
applicant was eligible for the benefit during the period of the backdating. If an individual attempted to file an
application for benefits, but was prevented from filing an application by the
department, the application is effective the Sunday of the calendar week the
individual first attempted to file an application.
(b) A benefit account established under
subdivision 2 is effective the date the application for benefits was effective.
(c) A benefit account, once established,
may later be withdrawn if:
(1) the applicant has not been paid any
benefits on that benefit account; and
(2) a new application for benefits is
filed and a new benefit account is established at the time of the withdrawal.
A benefit account may be withdrawn after
the expiration of the benefit year, and the new work requirements of
subdivision 2, paragraph (b), do not apply if the applicant was not paid any
benefits on the benefit account that is being withdrawn.
A determination or amended determination
of eligibility or ineligibility issued under section 268B.07 that was sent
before the withdrawal of the benefit account, remains in effect and is not
voided by the withdrawal of the benefit account.
Sec. 9. [268B.05]
CONTINUED REQUEST FOR BENEFITS.
A continued request for family or
medical leave benefits is a certification by an applicant, done on a weekly
basis, that the applicant is unable to perform usual work due to a qualifying
event and meets the ongoing eligibility requirements for benefits under section
268B.06. A continued request must
include information on possible issues of ineligibility.
Sec. 10. [268B.06]
ELIGIBILITY REQUIREMENTS; PAYMENTS THAT AFFECT BENEFITS.
Subdivision 1. Eligibility
conditions. (a) An applicant
may be eligible to receive family or medical leave benefits for any week if:
(1) the applicant has filed a continued
request for benefits for that week under section 268B.05;
(2) the week for which benefits are
requested is in the applicant's benefit year;
(3) the applicant was unable to perform regular work due to a serious health condition, a qualifying exigency, safety leave, family care, bonding, pregnancy, or recovery from pregnancy for the period required under subdivision 2;
(4) the applicant has sufficient wage
credits from an employer or employers as defined in section 268B.01,
subdivision 41, to establish a benefit account under section 268B.04; and
(5) an applicant requesting benefits
under this chapter must fulfill certification requirements under subdivision 3.
(b) A self-employed individual or
independent contractor who has elected and been approved for coverage under
section 268B.11 need not fulfill the requirement of paragraph (a), clause (4).
Subd. 2. 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. 3. 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.
Subd. 4. Not
eligible. An applicant is
ineligible for family or medical leave benefits for any portion of a typical
workweek:
(1) that occurs before the effective
date of a benefit account;
(2) that the applicant has an
outstanding misrepresentation overpayment balance under section 268B.185,
subdivision 5, including any penalties and interest;
(3) that the applicant fails or refuses
to provide information on an issue of ineligibility required under section
268B.07, subdivision 2; or
(4) for which the applicant worked for
pay.
Subd. 5. Vacation,
sick leave, and supplemental benefit payments. (a) An applicant is not eligible to receive
benefits for any portion of a typical workweek the applicant is receiving, has
received, or will receive vacation pay, sick pay, or personal time off pay,
also known as "PTO."
(b) Paragraph (a) does not apply:
(1) upon a permanent separation from
employment;
(2) to payments from a vacation fund
administered by a union or a third party not under the control of the employer;
or
(3) to supplemental benefit payments, as
defined in section 268B.01, subdivision 37.
(c) Payments under this subdivision are
applied to the period immediately following the later of the date of separation
from employment or the date the applicant first becomes aware that the employer
will be making a payment. The date the
payment is actually made or received, or that an applicant must agree to a
release of claims, does not affect the application of this subdivision.
Subd. 6. Workers'
compensation and disability insurance offset. (a) An applicant is not eligible to
receive benefits for any portion of a week in which the applicant is receiving
or has received compensation for loss of wages equal to or in excess of the
applicant's weekly family or medical leave benefit amount under:
(1) the workers' compensation law of
this state;
(2) the workers' compensation law of any
other state or similar federal law; or
(3) any insurance or trust fund paid in
whole or in part by an employer.
(b)
This subdivision does not apply to an applicant who has a claim pending for
loss of wages under paragraph (a).
If the applicant later receives compensation as a result of the pending
claim, the applicant is subject to paragraph (a) and the family or medical
leave benefits paid are overpaid benefits under section 268B.185.
(c) If the amount of compensation
described under paragraph (a) for any week is less than the applicant's weekly
family or medical leave benefit amount, benefits requested for that week are
reduced by the amount of that compensation payment.
Subd. 7. Separation,
severance, or bonus payments. (a)
An applicant is not eligible to receive benefits for any week the applicant is
receiving, has received, or will receive separation pay, severance pay, bonus
pay, or any other payments paid by an employer because of, upon, or after
separation from employment. This
subdivision applies if the payment is:
(1)
considered wages under section 268B.01, subdivision 43; or
(2) subject to the Federal Insurance
Contributions Act (FICA) tax imposed to fund Social Security and Medicare.
(b) Payments under this subdivision are
applied to the period immediately following the later of the date of separation
from employment or the date the applicant first becomes aware that the employer
will be making a payment. The date the
payment is actually made or received, or that an applicant must agree to a
release of claims, does not affect the application of this paragraph.
(c) This subdivision does not apply to
vacation pay, sick pay, personal time off pay, or supplemental benefit payment
under subdivision 4.
(d) This subdivision applies to all the
weeks of payment.
(e) Under this subdivision, if the
payment with respect to a week is equal to or more than the applicant's weekly
benefit amount, the applicant is ineligible for benefits for that week. If the payment with respect to a week is less
than the applicant's weekly benefit amount, benefits are reduced by the amount
of the payment.
Subd. 8. Social
Security disability benefits. (a)
An applicant who is receiving, has received, or has filed for primary Social
Security disability benefits for any week is ineligible for benefits for that
week, unless:
(1) the Social Security Administration
approved the collecting of primary Social Security disability benefits each
month the applicant was employed during the base period; or
(2) the applicant provides a statement
from an appropriate health care professional who is aware of the applicant's
Social Security disability claim and the basis for that claim, certifying that
the applicant is available for suitable employment.
(b) If an applicant meets the
requirements of paragraph (a), clause (1) or (2), there is no deduction from
the applicant's weekly benefit amount for any Social Security disability
benefits.
(c) Information from the Social
Security Administration is conclusive, absent specific evidence showing that
the information was erroneous.
Sec. 11. [268B.07]
DETERMINATION ON ISSUES OF ELIGIBILITY.
Subdivision 1. Employer
notification. (a) Upon a
determination 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;
and
(5) the maximum duration of benefits.
Subd. 2. Determination. (a) The commissioner must determine
any issue of ineligibility raised by information required from an applicant and
send to the applicant and any current base period employer, by mail or
electronic transmission, a document titled a determination of eligibility or a
determination of ineligibility, as is appropriate, within two weeks.
(b) If an applicant obtained benefits
through misrepresentation, the department is authorized to issue a
determination of ineligibility within 48 months of the establishment of the
benefit account.
(c) If the department has filed an
intervention in a worker's compensation matter under section 176.361, the
department is authorized to issue a determination of ineligibility within 48
months of the establishment of the benefit account.
(d) A determination of eligibility or
determination of ineligibility is final unless an appeal is filed by the
applicant within 20 calendar days after sending. The determination must contain a prominent
statement indicating the consequences of not appealing. Proceedings on the appeal are conducted in
accordance with section 268B.08.
(e) An issue of ineligibility required
to be determined under this section includes any question regarding the denial
or allowing of benefits under this chapter.
Subd. 3. Amended
determination. Unless an
appeal has been filed, the commissioner, on the commissioner's own motion, may
reconsider a determination of eligibility or determination of ineligibility
that has not become final and issue an amended determination. Any amended determination must be sent to the
applicant and any employer in the current base period by mail or electronic
transmission. Any amended determination
is final unless an appeal is filed by the applicant within 20 calendar days
after sending. Proceedings on the appeal
are conducted in accordance with section 268B.08.
Subd. 4. Benefit
payment. If a determination
or amended determination allows benefits to an applicant, the family or medical
leave benefits must be paid regardless of any appeal period or any appeal
having been filed.
Subd. 5. Overpayment. A determination or amended determination
that holds an applicant ineligible for benefits for periods an applicant has
been paid benefits is an overpayment of those family or medical leave benefits. A determination or amended determination
issued under this section that results in an overpayment of benefits must set
out the amount of the overpayment and the requirement that the overpaid
benefits must be repaid according to section 268B.185.
Sec. 12. [268B.08]
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. 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
notice was not practicable upon request from the employer.
(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.06, subdivision 3.
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.26, 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.04,
subdivision 5.
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
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 similar
condition, 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 clause (1). 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
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 must not 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 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. 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. 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 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.04 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.
(a) 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 continue under the
private plan while an employee remains employed by the employer.
(b) Notwithstanding paragraph (a), a
private plan may provide shorter durations of leave and benefit eligibility if
the total dollar value of wage replacement benefits under the private plan for
an employee for any particular qualifying event meets or exceeds what the total
dollar value would be under the public family and medical benefit program.
Subd. 3. Private
plan requirements; family benefit program.
(a) 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 continue under the
private plan while an employee remains employed by the employer.
(b) Notwithstanding paragraph (a), a
private plan may provide shorter durations of leave and benefit eligibility if
the total dollar value of wage replacement benefits under the private plan for
an employee for any particular qualifying event meets or exceeds what the total
dollar value would be under the public family and medical benefit program.
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 is not required to pay premiums
established under section 268B.14. An
employer with an approved private plan is 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 must review and report on
the adequacy of this fee to cover private plan administrative costs annually
beginning October 1, 2022, 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 section 268B.26.
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 family and medical benefit insurance
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. 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.14, subdivision 5, 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.04, subdivision 1, must
be calculated as a percentage of the self-employed individual's self-employment
premium base, rather than wages.
Sec. 17. [268B.12]
WAGE REPORTING.
Subdivision 1. Wage
detail report. (a) Each
employer must submit, under the employer premium account described in section
268B.13, a quarterly wage detail report by electronic transmission, in a format
prescribed by the commissioner. The
report must include for each employee in covered employment during the calendar
quarter, the employee's name, Social Security number, the total wages paid to
the employee, and total number of paid hours worked. For employees exempt from the definition of
employee in section 177.23, subdivision 7, clause (6), the employer must report
40 hours worked for each week any duties were performed by a full-time employee
and must report a reasonable estimate of the hours worked for each week duties
were performed by a part-time employee. In
addition, the wage detail report must include the number of employees employed
during the payroll period that includes the 12th day of each calendar month
and, if required by the commissioner, the report must be broken down by
business location and separate business unit.
The report is due and must be received by the commissioner on or before
the last day of the month following the end of the calendar quarter. The commissioner may delay the due date on a
specific calendar quarter in the event the department is unable to accept wage
detail reports electronically.
(b) The employer may report the wages
paid to the next lower whole dollar amount.
(c) An employer need not include the
name of the employee or other required information on the wage detail report if
disclosure is specifically exempted from being reported by federal law.
(d) A wage detail report must be
submitted for each calendar quarter even though no wages were paid, unless the
business has been terminated.
Subd. 2. Electronic
transmission of report required. Each
employer must submit the quarterly wage detail report by electronic
transmission in a format prescribed by the commissioner. The commissioner has the discretion to accept
wage detail reports that are submitted by any other means or the commissioner
may return the report submitted by other than electronic transmission to the
employer, and reports returned are considered as not submitted and the late
fees under subdivision 3 may be imposed.
Subd. 3. Failure
to timely file report; late fees. (a)
Any employer that fails to submit the quarterly wage detail report when due
must pay a late fee of $10 per employee, computed based upon the highest of:
(1) the number of employees reported on
the last wage detail report submitted;
(2) the number of employees reported in
the corresponding quarter of the prior calendar year; or
(3) if no wage detail report has ever
been submitted, the number of employees listed at the time of employer
registration.
The late fee is canceled if the wage detail report is
received within 30 calendar days after a demand for the report is sent to the
employer by mail or electronic transmission.
A late fee assessed an employer may not be canceled more than twice each
12 months. The amount of the late fee
assessed may not be less than $250.
(b) If the wage detail report is not
received in a manner and format prescribed by the commissioner within 30
calendar days after demand is sent under paragraph (a), the late fee assessed
under paragraph (a) doubles and a renewed demand notice and notice of the
increased late fee will be sent to the employer by mail or electronic
transmission.
(c) Late fees due under this
subdivision may be canceled, in whole or in part, under section 268B.16.
Subd. 4. Missing
or erroneous information. (a)
Any employer that submits the wage detail report, but fails to include all
required employee information or enters erroneous information, is subject to an
administrative service fee of $25 for each employee for whom the information is
partially missing or erroneous.
(b) Any employer that submits the wage
detail report, but fails to include an employee, is subject to an
administrative service fee equal to two percent of the total wages for each
employee for whom the information is completely missing.
Subd. 5. Fees. The fees provided for in subdivisions
3 and 4 are in addition to interest and other penalties imposed by this chapter
and are collected in the same manner as delinquent taxes and credited to the
family and medical benefit insurance account.
Sec. 18. [268B.13]
EMPLOYER PREMIUM ACCOUNTS.
The commissioner must maintain a
premium account for each employer. The
commissioner must assess the premium account for all the premiums due under
section 268B.14, and credit the family and medical benefit insurance account
with all premiums paid.
Sec. 19. [268B.14]
PREMIUMS.
Subdivision 1. Payments. (a) Family and medical leave premiums
accrue and become payable by each employer for each calendar year on the
taxable wages that the employer paid to employees in covered employment.
Each employer must pay premiums
quarterly, at the premium rate defined under this section, on the taxable wages
paid to each employee. The commissioner
must compute the premium due from the wage detail report required under section
268B.12 and notify the employer of the premium due. The premiums must be paid to the family and
medical benefit insurance account and must be received by the department on or
before the last day of the month following the end of the calendar quarter.
(b)
If for any reason the wages on the wage detail report under section 268B.12 are
adjusted for any quarter, the commissioner must recompute the premiums due for
that quarter and assess the employer for any amount due or credit the employer
as appropriate.
Subd. 2. Payments
by electronic payment required. (a)
Every employer must make any payments due under this chapter by electronic
payment.
(b) All third-party processors, paying
on behalf of a client company, must make any payments due under this chapter by
electronic payment.
(c) Regardless of paragraph (a) or (b),
the commissioner has the discretion to accept payment by other means.
Subd. 3. 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. 4. Wages
and payments subject to premium. 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.
Subd. 5. Annual
premium rates. The employer
premium rates for the calendar year beginning January 1, 2023, 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. 6. Premium
rate adjustments. (a)
Beginning January 1, 2026, and each calendar year thereafter, 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 family and medical benefit insurance account for the 52‑week
period ending September 30 of the prior year;
(2) subtract the amount in the family
and medical benefit insurance 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. 7. Deposit
of premiums. All premiums
collected under this section must be deposited into the family and medical
benefit insurance account.
Subd. 8. 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. 20. [268B.145]
INCOME TAX WITHHOLDING.
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. 21. [268B.15]
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
its incorrectness. 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) family and medical leave premiums
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) the payment is specifically
designated by the employer to be applied to an outstanding overpayment of
benefits of an applicant;
(3) a court or administrative order
directs that the payment be applied to a specific obligation;
(4) a preexisting payment plan provides
for the application of payment; or
(5) the commissioner, under the compromise
authority of section 268B.16, agrees to apply the payment to a different
priority.
Subd. 3. Estimating
the premium due. Only if an
employer fails to make all necessary records available for an audit under
section 268B.21 and the commissioner has reason to believe the employer has not
reported all the required wages on the quarterly wage detail reports, may the
commissioner then estimate the amount of premium due and assess the employer
the estimated amount due.
Subd. 4. Costs. (a) Any employer and any applicant
subject to section 268B.185, subdivision 2, 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 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 enforcement account under section 268B.185,
subdivision 3.
Subd. 5. Interest
on amounts past due. If any
amounts due from an employer under this chapter are not received on the date
due, the commissioner must assess interest on any amount that remains unpaid. Interest is assessed at the rate of one
percent per month or any part of a month.
Interest is not assessed on unpaid interest. Interest
collected under this subdivision is credited to the enforcement account under
section 268B.185, subdivision 3.
Subd. 6. Interest
on judgments. Regardless of
section 549.09, if a 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 5
until the date of payment.
Subd. 7. 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 mail or electronic transmission.
The determination of denial is final unless an employer files an appeal
within 20 calendar days after sending. Proceedings
on the appeal are conducted in accordance with section 268B.08.
(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.14, subdivision 3, and return any amount erroneously deducted to
each affected employee.
Subd. 8. 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, 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 in any state.
Sec. 22. [268B.155]
CHILD SUPPORT DEDUCTION FROM BENEFITS.
Subdivision 1. Definitions. As used in this section:
(1) "child support agency"
means the public agency responsible for child support enforcement, including
federally approved comprehensive Tribal IV-D programs; and
(2)
"child support obligations" means obligations that are being enforced
by a child support agency in accordance with a plan described in United States
Code, title 42, sections 454 and 455 of the Social Security Act that has been
approved by the secretary of health and human services under part D of title IV
of the Social Security Act. This does
not include any type of spousal maintenance or foster care payments.
Subd. 2. Notice
upon application. In an
application for family or medical leave benefits, the applicant must disclose
if child support obligations are owed and, if so, in what state and county. If child support obligations are owed, the
commissioner must, if the applicant establishes a benefit account, notify the
child support agency.
Subd. 3. Withholding
of benefit. The commissioner
must deduct and withhold from any family or medical leave benefits payable to
an applicant who owes child support obligations:
(1) the amount required under a proper
order of a court or administrative agency; or
(2) if clause (1) is not applicable,
the amount determined under an agreement under United States Code, title 42,
section 454 (20)(B)(i), of the Social Security Act; or
(3) if clause (1) or (2) is not
applicable, the amount specified by the applicant.
Subd. 4. Payment. Any amount deducted and withheld must
be paid to the child support agency, must for all purposes be treated as if it
were paid to the applicant as family or medical leave benefits and paid by the
applicant to the child support agency in satisfaction of the applicant's child
support obligations.
Subd. 5. Payment
of costs. The child support
agency must pay the costs incurred by the commissioner in the implementation
and administration of this section and sections 518A.50 and 518A.53.
Sec. 23. [268B.16]
COMPROMISE.
(a) The commissioner may compromise in
whole or in part any action, determination, or decision that affects only an
employer and not an applicant. This
paragraph applies if it is determined by a court of law, or a confession of
judgment, that an applicant, while employed, wrongfully took from the employer
$500 or more in money or property.
(b) The commissioner may at any time
compromise any premium or reimbursement due from an employer under this
chapter.
(c) Any compromise involving an amount
over $10,000 must be authorized by an attorney licensed to practice law in
Minnesota who is an employee of the department designated by the commissioner
for that purpose.
(d) Any compromise must be in the best
interest of the state of Minnesota.
Sec. 24. [268B.17]
ADMINISTRATIVE COSTS.
From July 1, 2023, through December 31,
2023, the commissioner may spend up to seven percent of premiums collected
under section 268B.15 for administration of this chapter. Beginning January 1, 2024, 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. 25. [268B.18]
PUBLIC OUTREACH.
Beginning in fiscal year 2023, 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.17, 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. 26. [268B.185]
BENEFIT OVERPAYMENTS.
Subdivision 1. Repaying
an overpayment. (a) Any
applicant who (1) because of a determination or amended determination issued
under this chapter, or (2) because of a benefit law judge's decision under
section 268B.08, has received any family or medical leave benefits that the
applicant was held not entitled to, is overpaid the benefits and must promptly
repay the benefits to the family and medical benefit insurance account.
(b) If the applicant fails to repay the
benefits overpaid, including any penalty and interest assessed under
subdivisions 2 and 4, the total due may be collected by the methods allowed
under state and federal law.
Subd. 2. Overpayment
because of misrepresentation. (a)
An applicant has committed misrepresentation if the applicant is overpaid
benefits by making a false statement or representation without a good faith
belief as to the correctness of the statement or representation.
(b) After the discovery of facts
indicating misrepresentation, the commissioner must issue a determination of
overpayment penalty assessing a penalty equal to 20 percent of the amount
overpaid. This penalty is in addition to
penalties under section 268B.19.
(c) Unless the applicant files an appeal
within 20 calendar days after the sending of a determination of overpayment
penalty to the applicant by mail or electronic transmission, the determination
is final. Proceedings on the appeal are
conducted in accordance with section 268B.08.
(d) A determination of overpayment
penalty must state the methods of collection the commissioner may use to
recover the overpayment, penalty, and interest assessed. Money received in repayment of overpaid benefits,
penalties, and interest is first applied to the benefits overpaid, second to
the penalty amount due, and third to any interest due.
(e) The department is authorized to
issue a determination of overpayment penalty under this subdivision within 48 months
of the establishment of the benefit account upon which the benefits were
obtained through misrepresentation.
Subd. 3. Family
and medical benefit insurance enforcement account created. The family and medical benefit
insurance enforcement account is created in the state treasury. Any penalties and interest collected under
this section shall be deposited into the account under this subdivision and
shall be used only for the purposes of administering and enforcing this chapter. Only the commissioner may authorize
expenditures from the account under this subdivision.
Subd. 4. Interest. For any family and medical leave
benefits obtained by misrepresentation, and any penalty amounts assessed under
subdivision 2, the commissioner must assess interest on any amount that remains
unpaid beginning 30 calendar days after the date of a determination of
overpayment penalty. Interest is
assessed at the rate of one percent per month or any part of a month. A determination of overpayment penalty must
state that interest will be assessed. Interest
is not assessed on unpaid interest. Interest
collected under this subdivision is credited to the family and medical benefit
insurance enforcement account.
Subd. 5. Offset
of benefits. The commissioner
may offset from any future family and medical leave benefits otherwise payable
the amount of a nonmisrepresentation overpayment. Except when the nonmisrepresentation
overpayment resulted because the applicant failed to report deductible earnings
or deductible or benefit delaying payments, no single offset may exceed 50
percent of the amount of the payment from which the offset is made.
Subd. 6. Cancellation
of overpayments. (a) If
family and medical leave benefits overpaid for reasons other than
misrepresentation are not repaid or offset from subsequent benefits within six
years after the date of the determination or decision holding the applicant
overpaid, the commissioner must cancel the overpayment balance, and no
administrative or legal proceedings may be used to enforce collection of those
amounts.
(b) If family and medical leave
benefits overpaid because of misrepresentation including penalties and interest
are not repaid within ten years after the date of the determination of
overpayment penalty, the commissioner must cancel the overpayment balance and
any penalties and interest due, and no administrative or legal proceeding may
be used to enforce collection of those amounts.
(c) The commissioner may cancel at any
time any overpayment, including penalties and interest that the commissioner
determines is uncollectible because of death or bankruptcy.
Subd. 7. Court
fees; collection fees. (a) If
the department is required to pay any court fees in an attempt to enforce
collection of overpaid family and medical leave benefits, penalties, or
interest, the amount of the court fees may be added to the total amount due.
(b) If an applicant who has been
overpaid family and medical leave benefits because of misrepresentation seeks
to have any portion of the debt discharged under the federal bankruptcy code,
and the department files an objection in bankruptcy court to the discharge, the
cost of any court fees may be added to the debt if the bankruptcy court does
not discharge the debt.
(c) If the Internal Revenue Service
assesses the department a fee for offsetting from a federal tax refund the
amount of any overpayment, including penalties and interest, the amount of the
fee may be added to the total amount due.
The offset amount must be put in the family and medical benefit
insurance enforcement account and that amount credited to the total amount due
from the applicant.
Subd. 8. Collection
of overpayments. (a) The
commissioner has discretion regarding the recovery of any overpayment for
reasons other than misrepresentation. Regardless
of any law to the contrary, the commissioner is not required to refer any
overpayment for reasons other than misrepresentation to a public or private
collection agency, including agencies of this state.
(b) Amounts overpaid for reasons other
than misrepresentation are not considered a "debt" to the state of
Minnesota for purposes of any reporting requirements to the commissioner of
management and budget.
(c) A pending appeal under section
268B.08 does not suspend the assessment of interest, penalties, or collection
of an overpayment.
(d) Section 16A.626 applies to the
repayment by an applicant of any overpayment, penalty, or interest.
Sec. 27. [268B.19]
APPLICANT ADMINISTRATIVE PENALTIES.
(a) Any applicant who 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 being ineligible for 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 mail or electronic transmission. The department is authorized to issue a
determination of ineligibility under this subdivision within 48 months of the
establishment of the benefit account upon which the benefits were obtained, or
attempted to be obtained. Unless an
appeal is filed within 20 calendar days of sending, the determination is final. Proceedings on the appeal are conducted in
accordance with section 268B.08.
Sec. 28. [268B.20]
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
family and medical benefit insurance 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. 29. [268B.21]
RECORDS; AUDITS.
Subdivision 1. Employer
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 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. Subpoenas may be issued under section 268B.22
as necessary, for an audit.
(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
family and medical benefit insurance account.
(d)
An employer, or other person, that fails to provide a weekly breakdown of money
earned by an applicant upon request of the commissioner, information necessary
for the detection of applicant misrepresentation under section 268B.185,
subdivision 2, may be assessed an administrative penalty of $100. Any notice requesting a weekly breakdown must
clearly state that a $100 penalty may be assessed for failure to provide the
information. The penalty collected is
credited to the family and medical benefit insurance account.
Subd. 2. Department
records; destruction. (a) The
commissioner may make summaries, compilations, duplications, or reproductions
of any records pertaining to this chapter that the commissioner considers
advisable for the preservation of the information.
(b) Regardless of any law to the
contrary, the commissioner may destroy any records that are no longer necessary
for the administration of this chapter. In
addition, the commissioner may destroy any record from which the information
has been electronically captured and stored.
Sec. 30. [268B.22]
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, are 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. 31. [268B.23]
LIEN; LEVY; SETOFF; AND CIVIL ACTION.
Subdivision 1. Lien. (a) Any amount due under this chapter,
from an applicant or an employer, becomes a lien upon all the property, within
this state, both real and personal, of the person liable, from the date of
assessment. For the purposes of this
section, "date of assessment" means the date the obligation was due.
(b) The lien is not enforceable against
any purchaser, mortgagee, pledgee, holder of a Uniform Commercial Code security
interest, mechanic's lien, or judgment lien creditor, until a notice of lien
has been filed with the county recorder of the county where the property is
situated, or in the case of personal property belonging to a nonresident person
in the Office of the Secretary of State.
When the notice of lien is filed with the county recorder, the fee for
filing and indexing is as provided in sections 272.483 and 272.484.
(c) Notices of liens, lien renewals,
and lien releases, in a form prescribed by the commissioner, may be filed with
the county recorder or the secretary of state by mail, personal delivery, or
electronic transmission into the computerized filing system of the secretary of
state. The secretary of state must, on
any notice filed with that office, transmit the notice electronically to the
appropriate county recorder. The filing
officer, whether the county recorder or the secretary of state, must endorse
and index a printout of the notice as if the notice had been mailed or
delivered.
(d) County recorders and the secretary
of state must enter information on lien notices, renewals, and releases into
the central database of the secretary of state.
For notices filed electronically with the county recorders, the date and
time of receipt of the notice and county recorder's file number, and for
notices filed electronically with the secretary of state, the secretary of
state's recording information, must be entered into the central database before
the close of the working day following the day of the original data entry by
the commissioner.
(e)
The lien imposed on personal property, even though properly filed, is not
enforceable against a purchaser of tangible personal property purchased at
retail or personal property listed as exempt in sections 550.37, 550.38, and
550.39.
(f) A notice of lien filed has priority
over any security interest arising under chapter 336, article 9, that is
perfected prior in time to the lien imposed by this subdivision, but only if:
(1) the perfected security interest
secures property not in existence at the time the notice of lien is filed; and
(2) the property comes into existence
after the 45th calendar day following the day the notice of lien is filed, or
after the secured party has actual notice or knowledge of the lien filing,
whichever is earlier.
(g) The lien is enforceable from the
time the lien arises and for ten years from the date of filing the notice of
lien. A notice of lien may be renewed
before expiration for an additional ten years.
(h) The lien is enforceable by levy
under subdivision 2 or by judgment lien foreclosure under chapter 550.
(i) The lien may be imposed upon
property defined as homestead property in chapter 510 but may be enforced only
upon the sale, transfer, or conveyance of the homestead property.
(j) The commissioner may sell and assign
to a third party the commissioner's right of redemption in specific real
property for liens filed under this subdivision. The assignee is limited to the same rights of
redemption as the commissioner, except that in a bankruptcy proceeding, the
assignee does not obtain the commissioner's priority. Any proceeds from the sale of the right of
redemption are credited to the family and medical benefit insurance account.
Subd. 2. Levy. (a) If any amount due under this
chapter, from an applicant or an employer, is not paid when due, the amount may
be collected by the commissioner by direct levy upon all property and rights of
property of the person liable for the amount due except property exempt from
execution under section 550.37. For the
purposes of this section, "levy" includes the power of distraint and
seizure by any means.
(b) In addition to a direct levy, the
commissioner may issue a warrant to the sheriff of any county who must proceed
within 60 calendar days to levy upon the property or rights to property of the
delinquent person within the county, except property exempt under section
550.37. The sheriff must sell that
property necessary to satisfy the total amount due, together with the
commissioner's and sheriff's costs. The
sales are governed by the law applicable to sales of like property on execution
of a judgment.
(c) Notice and demand for payment of the
total amount due must be mailed to the delinquent person at least ten calendar
days before action being taken under paragraphs (a) and (b).
(d) If the commissioner has reason to
believe that collection of the amount due is in jeopardy, notice and demand for
immediate payment may be made. If the
total amount due is not paid, the commissioner may proceed to collect by direct
levy or issue a warrant without regard to the ten calendar day period.
(e) In executing the levy, the
commissioner must have all of the powers provided in chapter 550 or any other
law that provides for execution against property in this state. The sale of property levied upon and the time
and manner of redemption is as provided in chapter 550. The seal of the court is not required. The levy may be made whether or not the
commissioner has commenced a legal action for collection.
(f) Where any assessment has been made
by the commissioner, the property seized for collection of the total amount due
must not be sold until any determination of liability has become final. No sale may be made unless a portion of the
amount due remains unpaid for a period of more than 30 calendar days after the
determination of liability becomes final.
Seized property may be sold at any time if:
(1)
the delinquent person consents in writing to the sale; or
(2) the commissioner determines that
the property is perishable or may become greatly reduced in price or value by
keeping, or that the property cannot be kept without great expense.
(g) Where a levy has been made to
collect the amount due and the property seized is properly included in a formal
proceeding commenced under sections 524.3-401 to 524.3-505 and maintained under
full supervision of the court, the property may not be sold until the probate
proceedings are completed or until the court orders.
(h) The property seized must be
returned if the owner:
(1) gives a surety bond equal to the
appraised value of the owner's interest in the property, as determined by the
commissioner; or
(2) deposits with the commissioner
security in a form and amount the commissioner considers necessary to insure
payment of the liability.
(i) If a levy or sale would irreparably
injure rights in property that the court determines superior to rights of the
state, the court may grant an injunction to prohibit the enforcement of the
levy or to prohibit the sale.
(j) Any person who fails or refuses to
surrender without reasonable cause any property or rights to property subject
to levy is personally liable in an amount equal to the value of the property or
rights not so surrendered, but not exceeding the amount due.
(k) If the commissioner has seized the
property of any individual, that individual may, upon giving 48 hours notice to
the commissioner and to the court, bring a claim for equitable relief before
the district court for the release of the property upon terms and conditions
the court considers equitable.
(l) Any person in control or possession
of property or rights to property upon which a levy has been made who
surrenders the property or rights to property, or who pays the amount due is
discharged from any obligation or liability to the person liable for the amount
due with respect to the property or rights to property.
(m) The notice of any levy may be
served personally or by mail.
(n) The commissioner may release the levy
upon all or part of the property or rights to property levied upon if the
commissioner determines that the release will facilitate the collection of the
liability, but the release does not prevent any subsequent levy. If the commissioner determines that property
has been wrongfully levied upon, the commissioner must return:
(1) the specific property levied upon,
at any time; or
(2) an amount of money equal to the
amount of money levied upon, at any time before the expiration of nine months
from the date of levy.
(o) Regardless of section 52.12, a levy
upon a person's funds on deposit in a financial institution located in this
state, has priority over any unexercised right of setoff of the financial
institution to apply the levied funds toward the balance of an outstanding loan
or loans owed by the person to the financial institution. A claim by the financial institution that it
exercised its right to setoff before the levy must be substantiated by evidence
of the date of the setoff, and verified by an affidavit from a corporate
officer of the financial institution. For
purposes of determining the priority of any levy under this subdivision, the
levy is treated as if it were an execution under chapter 550.
Subd. 3. Right
of setoff. (a) Upon certification
by the commissioner to the commissioner of management and budget, or to any
state agency that disburses its own funds, that a person, applicant, or
employer has a liability under this chapter, and that the state has purchased
personal services, supplies, contract services, or property from that person,
the commissioner of management and budget or the state agency must set off and
pay to the commissioner an amount sufficient to satisfy the unpaid liability
from funds appropriated for payment of the obligation of the state otherwise
due the person. No amount may be set off
from any funds exempt under section 550.37 or funds due an individual who
receives assistance under chapter 256.
(b) All funds, whether general or
dedicated, are subject to setoff.
(c) Regardless of any law to the
contrary, the commissioner has first priority to setoff from any funds
otherwise due from the department to a delinquent person.
Subd. 4. Collection
by civil action. (a) Any
amount due under this chapter, from an applicant or employer, may be collected
by civil action in the name of the state of Minnesota. Civil actions brought under this subdivision
must be heard as provided under section 16D.14.
In any action, judgment must be entered in default for the relief
demanded in the complaint without proof, together with costs and disbursements,
upon the filing of an affidavit of default.
(b) Any person that is not a resident
of this state and any resident person removed from this state, is considered to
appoint the secretary of state as its agent for the acceptance of process in
any civil action. The commissioner must
file process with the secretary of state, together with a payment of a fee of
$15 and that service is considered sufficient service and has the same force
and validity as if served personally within this state. Notice of the service of process, together
with a copy of the process, must be sent by certified mail to the person's last
known address. An affidavit of
compliance with this subdivision, and a copy of the notice of service must be
appended to the original of the process and filed in the court.
(c) No court filing fees, docketing
fees, or release of judgment fees may be assessed against the state for actions
under this subdivision.
Subd. 5. Injunction
forbidden. No injunction or
other legal action to prevent the determination, assessment, or collection of
any amounts due under this chapter, from an applicant or employer, are allowed.
Sec. 32. [268B.24]
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. 33. [268B.25]
ANNUAL REPORTS.
(a) Beginning on or before December 1,
2023, the commissioner must annually 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
sections 268B.29 and 268B.18;
(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) Beginning on or before December 1,
2023, the commissioner must annually 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. 34. [268B.26]
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, whichever 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 subdivision 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-owned computer
during an employee's regular working hours to review and print required
notices.
Sec. 35. [268B.27]
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) except as provided under section
268B.01, subdivision 37, 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. 36. [268B.28]
SEVERABLE.
If the United States Department of
Labor or a court of competent jurisdiction determines that any provision of the
family and medical benefit insurance program under this chapter is not in
conformity with, or is inconsistent with, the requirements of federal law, the
provision has no force or effect. If
only a portion of the provision, or the application to any person or
circumstances, is determined not in conformity, or determined inconsistent, the
remainder of the provision and the application of the provision to other
persons or circumstances are not affected.
Sec. 37. [268B.29]
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 family and medical benefit insurance 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. 38. EFFECTIVE
DATES.
(a) Benefits under Minnesota Statutes,
chapter 268B, shall not be applied for or paid until January 1, 2024, and
thereafter.
(b) Sections 1, 2, 4, 5, 6, 36, and 38
are effective July 1, 2021.
(c) Section 15 is effective July 1,
2022.
(d) Sections 3, 17, 18, 19, 21, 23, 24,
25, 29, 30, 31, and 33 are effective January 1, 2023.
(e) Sections 7, 8, 9, 10, 11, 12, 13,
14, 16, 20, 22, 26, 27, 28, 32, 34, 35, and 37 are effective January 1, 2024.
ARTICLE 5
FAMILY AND MEDICAL LEAVE BENEFIT AS EARNINGS
Section 1. Minnesota Statutes 2020, 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 2020, 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 2020, 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 2020, 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
DATE.
Sections 1 to 4 are effective January
1, 2024.
ARTICLE 6
UNEMPLOYMENT INSURANCE
Section 1. Minnesota Statutes 2020, section 268.035, subdivision 21c, is amended to read:
Subd. 21c. Reemployment
assistance training. (a) An
applicant is in "reemployment assistance training" when:
(1) (i) a reasonable opportunity for suitable employment for the applicant does not exist in the labor market area and additional training will assist the applicant in obtaining suitable employment;
(2) (ii) the curriculum,
facilities, staff, and other essentials are adequate to achieve the training
objective;
(3) (iii) the training is
vocational or short term academic training directed to an occupation or skill
that will substantially enhance the employment opportunities available to the
applicant in the applicant's labor market area;
(4) (iv) the training course
is full time by the training provider; and
(5) (v) the applicant is
making satisfactory progress in the training.;
(2)
the applicant can provide proof of enrollment in one or more programs offered
by an adult basic education consortium under section 124D.518. Programs may include but are not limited to:
(i) general educational development
diploma preparation;
(ii) local credit completion adult high school diploma preparation;
(iii) state competency-based adult high
school diploma preparation;
(iv) basic skills enhancement training
focused on math, functional literacy, reading, or writing;
(v) computer skills training; or
(vi) English as a second language
instruction;
(3) the applicant can provide proof of
enrollment in an English as a second language program taught by a licensed
instructor;
(4) the applicant can provide proof of
enrollment in an over-the-road truck driving training program offered by a
college or university within the Minnesota state system; or
(5) the applicant can provide proof of
enrollment in a program funded under section 116L.99.
(b) Full-time training provided through the dislocated worker program, the Trade Act of 1974, as amended, or the North American Free Trade Agreement is "reemployment assistance training," if that training course is in accordance with the requirements of that program.
(c) Apprenticeship training provided in order to meet the requirements of an apprenticeship program under chapter 178 is "reemployment assistance training."
(d) An applicant is in reemployment assistance training only if the training course has actually started or is scheduled to start within 30 calendar days.
Sec. 2. Minnesota Statutes 2020, section 268.085, subdivision 2, is amended to read:
Subd. 2. Not eligible. An applicant is ineligible for unemployment benefits for any week:
(1) that occurs before the effective date of a benefit account;
(2) that the applicant, at any time during the week, has an outstanding misrepresentation overpayment balance under section 268.18, subdivision 2, including any penalties and interest;
(3) that occurs in a period when the
applicant is a student in attendance at, or on vacation from a secondary school
including the period between academic years or terms;
(4) (3) that the applicant is
incarcerated or performing court-ordered community service. The applicant's weekly unemployment benefit
amount is reduced by one-fifth for each day the applicant is incarcerated or
performing court‑ordered community service;
(5) (4) that the applicant
fails or refuses to provide information on an issue of ineligibility required
under section 268.101;
(6) (5) that the applicant is performing services 32 hours or more, in employment, covered employment, noncovered employment, volunteer work, or self-employment regardless of the amount of any earnings; or
(7) (6) with respect to which
the applicant has filed an application for unemployment benefits under any
federal law or the law of any other state.
If the appropriate agency finally determines that the applicant is not
entitled to establish a benefit account under federal law or the law of any
other state, this clause does not apply.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 3. Minnesota Statutes 2020, section 268.085, subdivision 4a, is amended to read:
Subd. 4a. Social Security disability benefits. (a) An applicant who is receiving, has received, or has filed for primary Social Security disability benefits for any week is ineligible for unemployment benefits for that week, unless:
(1) the Social Security Administration approved the collecting of primary Social Security disability benefits each month the applicant was employed during the base period; or
(2) the applicant provides a statement from an appropriate health care professional who is aware of the applicant's Social Security disability claim and the basis for that claim, certifying that the applicant is available for suitable employment.
(b) If an applicant meets the requirements of paragraph (a), clause (1) or (2), there is no deduction from the applicant's weekly benefit amount for any Social Security disability benefits.
(c) If an applicant meets the requirements
of paragraph (a), clause (2), there must be deducted from the applicant's
weekly unemployment benefit amount 50 percent of the weekly equivalent of the
primary Social Security disability benefits the applicant is receiving, has
received, or has filed for, with respect to that week.
If the Social Security Administration
determines that the applicant is not entitled to receive primary Social
Security disability benefits for any week the applicant has applied for those
benefits, then this paragraph does not apply to that week.
(d) (c) Information from the
Social Security Administration is conclusive, absent specific evidence showing
that the information was erroneous.
(e) (d) This subdivision does
not apply to Social Security survivor benefits.
EFFECTIVE
DATE. This section is
effective retroactively from January 1, 2021.
Sec. 4. Minnesota Statutes 2020, section 268.085, subdivision 7, is amended to read:
Subd. 7. School employees; between terms denial. (a) Wage credits from employment with an educational institution or institutions may not be used for unemployment benefit purposes for any week during the period between two successive academic years or terms if:
(1) the applicant had employment for an educational institution or institutions in the prior academic year or term; and
(2) there is a reasonable assurance that the applicant will have employment for an educational institution or institutions in the following academic year or term.
This paragraph applies to a vacation period or holiday recess if the applicant was employed immediately before the vacation period or holiday recess, and there is a reasonable assurance that the applicant will be employed immediately following the vacation period or holiday recess. This paragraph also applies to the period between two regular but not successive terms if there is an agreement for that schedule between the applicant and the educational institution.
This paragraph does not apply if the subsequent employment is substantially less favorable than the employment of the prior academic year or term, or the employment prior to the vacation period or holiday recess.
(b) Paragraph (a) does not apply to:
(1) an applicant who, at the end of
the prior academic year or term, had an agreement for a definite period of
employment between academic years or terms in other than an instructional,
research, or principal administrative capacity and the educational institution
or institutions failed to provide that employment.; or
(2) an applicant in a position for which
no license is required by the Professional Educator Licensing and Standards
Board or the Board of School Administrators.
(c) If unemployment benefits are denied to any applicant under paragraph (a) who was employed in the prior academic year or term in other than an instructional, research, or principal administrative capacity and who was not offered an opportunity to perform the employment in the following academic year or term, the applicant is entitled to retroactive unemployment benefits for each week during the period between academic years or terms that the applicant filed a timely continued request for unemployment benefits, but unemployment benefits were denied solely because of paragraph (a).
(d) This subdivision applies to employment with an educational service agency if the applicant performed the services at an educational institution or institutions. "Educational service agency" means a governmental entity established and operated for the purpose of providing services to one or more educational institutions.
(e) This subdivision applies to employment with Minnesota, a political subdivision, or a nonprofit organization, if the services are provided to or on behalf of an educational institution or institutions.
(f) Paragraph (a) applies beginning the Sunday of the week that there is a reasonable assurance of employment.
(g) Employment and a reasonable assurance with multiple education institutions must be aggregated for purposes of application of this subdivision.
(h) If all of the applicant's employment with any educational institution or institutions during the prior academic year or term consisted of on-call employment, and the applicant has a reasonable assurance of any on-call employment with any educational institution or institutions for the following academic year or term, it is not considered substantially less favorable employment.
(i) A "reasonable assurance" may be written, oral, implied, or established by custom or practice.
(j) An "educational institution" is a school, college, university, or other educational entity operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit organization.
(k) An "instructional, research, or principal administrative capacity" does not include an educational assistant.
Sec. 5. Minnesota Statutes 2020, section 268.101, subdivision 2, is amended to read:
Subd. 2. Determination. (a) The commissioner must determine any issue of ineligibility raised by information required from an applicant under subdivision 1, paragraph (a) or (c), and send to the applicant and any involved employer, by mail or electronic transmission, a document titled a determination of eligibility or a determination of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge of the applicant must state the effect on the employer under section 268.047. A determination must be made in accordance with this paragraph even if a notified employer has not raised the issue of ineligibility.
(b) The commissioner must determine any issue of ineligibility raised by an employer and send to the applicant and that employer, by mail or electronic transmission, a document titled a determination of eligibility or a determination of ineligibility as is appropriate. The determination on an issue of ineligibility as a result of a quit or discharge of the applicant must state the effect on the employer under section 268.047.
If a base period employer:
(1) was not the applicant's most recent employer before the application for unemployment benefits;
(2) did not employ the applicant during the six calendar months before the application for unemployment benefits; and
(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant within ten calendar days of notification under subdivision 1, paragraph (b);
then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two weeks following the week that the issue of ineligibility as a result of a quit or discharge of the applicant was raised by the employer.
A communication from an employer must specifically set out why the applicant should be determined ineligible for unemployment benefits for that communication to be considered to have raised an issue of ineligibility for purposes of this section. A statement of "protest" or a similar term without more information does not constitute raising an issue of ineligibility for purposes of this section.
(c) Subject to section 268.031, an issue of ineligibility is determined based upon that information required of an applicant, any information that may be obtained from an applicant or employer, and information from any other source.
(d) Regardless of the requirements of this subdivision, the commissioner is not required to send to an applicant a copy of the determination where the applicant has satisfied a period of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.
(e) The department is authorized to issue a determination on an issue of ineligibility within 24 months from the establishment of a benefit account based upon information from any source, even if the issue of ineligibility was not raised by the applicant or an employer.
If an applicant obtained unemployment benefits through misrepresentation under section 268.18, subdivision 2, the department is authorized to issue a determination of ineligibility within 48 months of the establishment of the benefit account.
If the department has filed an intervention in a worker's compensation matter under section 176.361, the department is authorized to issue a determination of ineligibility within 48 months of the establishment of the benefit account.
(f)
A determination of eligibility or determination of ineligibility is final
unless an appeal is filed by the applicant or employer within 20 60
calendar days after sending. The
determination must contain a prominent statement indicating the consequences of
not appealing. Proceedings on the appeal
are conducted in accordance with section 268.105.
(g) An issue of ineligibility required to be determined under this section includes any question regarding the denial or allowing of unemployment benefits under this chapter except for issues under section 268.07. An issue of ineligibility for purposes of this section includes any question of effect on an employer under section 268.047.
Sec. 6. Minnesota Statutes 2020, section 268.133, is amended to read:
268.133
UNEMPLOYMENT BENEFITS WHILE IN ENTREPRENEURIAL TRAINING.
Unemployment benefits are available to dislocated workers participating in the converting layoffs into Minnesota businesses (CLIMB) program under section 116L.17, subdivision 11. Applicants participating in CLIMB are considered in reemployment assistance training under section 268.035, subdivision 21c. All requirements under section 268.069, subdivision 1, must be met, except the commissioner may waive:
(1) the deductible earnings provisions in section 268.085, subdivision 5; and
(2) the
32 hours of work limitation in section 268.085, subdivision 2, clause (6)
(5). A maximum of 500 applicants
may receive a waiver at any given time.
EFFECTIVE
DATE. This section is
effective August 1, 2021.
Sec. 7. Minnesota Statutes 2020, section 268.136, subdivision 1, is amended to read:
Subdivision 1. Shared work plan requirements. An employer may submit a proposed shared work plan for an employee group to the commissioner for approval in a manner and format set by the commissioner. The proposed shared work plan must include:
(1) a certified statement that the normal weekly hours of work of all of the proposed participating employees were full time or regular part time but are now reduced, or will be reduced, with a corresponding reduction in pay, in order to prevent layoffs;
(2) the name and Social Security number of each participating employee;
(3) the
number of layoffs that would have occurred absent the employer's ability to
participate in a shared work plan;
(4) a certified statement that each
participating employee was first hired by the employer at least one year
three months before the proposed shared work plan is submitted and is
not a seasonal, temporary, or intermittent worker;
(5) the hours of work each participating employee will work each week for the duration of the shared work plan, which must be at least 50 percent of the normal weekly hours but no more than 80 percent of the normal weekly hours, except that the plan may provide for a uniform vacation shutdown of up to two weeks;
(6) a certified statement that any health benefits and pension benefits provided by the employer to participating employees will continue to be provided under the same terms and conditions as though the participating employees' hours of work each week had not been reduced;
(7) a certified statement that the terms and implementation of the shared work plan is consistent with the employer's obligations under state and federal law;
(8) an acknowledgment that the employer understands that unemployment benefits paid under a shared work plan will be used in computing the future tax rate of a taxpaying employer or charged to the reimbursable account of a nonprofit or government employer;
(9) the proposed duration of the shared work plan, which must be at least two months and not more than one year, although a plan may be extended for up to an additional year upon approval of the commissioner;
(10) a starting date beginning on a Sunday at least 15 calendar days after the date the proposed shared work plan is submitted; and
(11) a signature of an owner or officer of the employer who is listed as an owner or officer on the employer's account under section 268.045.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. CONTINUED
SUSPENSION OF ONE-WEEK WAITING PERIOD.
Notwithstanding Minnesota Statutes,
section 268.085, subdivision 1, the one-week nonpayable waiting period to
receive unemployment benefits is waived for applicants for unemployment
insurance benefit accounts established between December 27, 2020, and September
4, 2021.
EFFECTIVE
DATE. This section is
effective retroactively from December 27, 2020.
Sec. 9. CONTINUED
SUSPENSION OF FIVE-WEEK BUSINESS OWNER BENEFIT LIMITATION.
Notwithstanding Minnesota Statutes, section
268.085, subdivision 9, the five-week limitation for receipt of unemployment
benefits for business owners is suspended for applicants for unemployment
insurance benefit accounts established between December 27, 2020, and September
4, 2021.
EFFECTIVE
DATE. This section is
effective retroactively from December 27, 2020.
Sec. 10. LEAVE
OF ABSENCE DUE TO COVID-19.
Notwithstanding Minnesota Statutes,
section 268.085, subdivision 13a, for an applicant applying for an unemployment
insurance benefit account established between December 27, 2020, and September
4, 2021, a leave of absence is presumed to be an involuntary leave of absence
and not ineligible if:
(1) a determination has been made by
health authorities or by a health care professional that the presence of the
applicant in the workplace would jeopardize the health of others, whether or
not the applicant has actually contracted a communicable disease;
(2) a quarantine or isolation order has
been issued to the applicant pursuant to Minnesota Statutes, sections 144.419
to 144.4196;
(3) there is a recommendation from
health authorities or from a health care professional that the applicant should
self-isolate or self-quarantine due to elevated risk from COVID-19 due to being
immunocompromised;
(4) the applicant has been instructed by the applicant's employer not to come to the employer's place of business due to an outbreak of a communicable disease; or
(5)
the applicant has received a notification from a school district, day care, or
other child care provider that either (i) classes are canceled, or (ii) the
applicant's ordinary child care is unavailable, provided that the applicant
made reasonable effort to obtain other child care and requested time off or
other accommodation from the employer and no reasonable accommodation was
available.
EFFECTIVE
DATE. This section is
effective retroactively from December 27, 2020.
Sec. 11. SUITABLE
EMPLOYMENT DURING COVID-19 PANDEMIC.
Notwithstanding the definition of
"suitable employment" provided in Minnesota Statutes, section
268.035, subdivision 23a, for an applicant applying for unemployment insurance
benefits between December 27, 2020, and September 4, 2021, employment is not
suitable under Minnesota Statutes, section 268.035, subdivision 23a, paragraphs
(a) and (b), if:
(1) the employment puts the health and
safety of the applicant at risk due to potential exposure of the applicant to
COVID-19; or
(2) the employment puts the health and
safety of other workers and the general public at risk due to potential
exposure of the other workers and the general public to COVID-19.
EFFECTIVE
DATE. This section is
effective retroactively from December 27, 2020.
Sec. 12. PANDEMIC
UNEMPLOYMENT ASSISTANCE TO HIGH SCHOOL STUDENTS.
Pandemic Unemployment Assistance
payments made to high school students under the federal CARES Act, United
States Code, title 15, chapter 116, and extended by the federal Consolidated
Appropriations Act, 2021, Public Law 116-260, subject to any necessary federal
approval, must not be counted as income when determining eligibility for the
programs administered by the Department of Human Services.
EFFECTIVE
DATE. This section is
effective retroactively from January 7, 2021.
Sec. 13. REPEALER.
(a) Minnesota Statutes 2020, section 268.085,
subdivision 4, is repealed January 1, 2021.
(b) Minnesota Statutes 2020, section
268.085, subdivision 8, is repealed.
ARTICLE 7
LABOR APPROPRIATIONS
Section
1. LABOR AND INDUSTRY AND BUREAU OF MEDIATION SERVICES APPROPRIATIONS. |
(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 "2022" and
"2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023,
respectively. "The first year"
is fiscal year 2022. "The second
year" is fiscal year 2023. "The
biennium" is fiscal years 2022 and 2023.
(b) If an appropriation in this article
is enacted more than once in the 2021 regular or special legislative session,
the appropriation must be given effect only once.
|
|
|
APPROPRIATIONS |
|
|
|
|
Available for the Year |
|
|
|
|
Ending June 30 |
|
|
|
|
2022 |
2023 |
Sec. 2. DEPARTMENT OF LABOR AND INDUSTRY |
|
|
|
Subdivision 1. Total
Appropriation |
|
$32,558,000 |
|
$32,742,000 |
Appropriations
by Fund |
||
|
2022 |
2023
|
General |
6,320,000
|
6,604,000
|
Workers' Compensation |
22,991,000
|
22,991,000
|
Workforce Development |
3,247,000
|
3,147,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
Subd. 2. General
Support |
|
6,515,000
|
|
6,515,000
|
Appropriations
by Fund |
||
General |
476,000
|
476,000
|
Workers' Compensation |
6,039,000
|
6,039,000
|
$476,000 each year is for system upgrades. This appropriation is available until June 30, 2023. The base a