STATE OF
MINNESOTA
NINETY-SECOND
SESSION - 2022
_____________________
ONE
HUNDRED SECOND DAY
Saint Paul, Minnesota, Wednesday, May 4, 2022
The House of Representatives convened at
11:00 a.m. and was called to order by Andrew Carlson, Speaker pro tempore.
The members of the House paused for a brief
meditation or moment of reflection.
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
Burkel
Carlson
Christensen
Daniels
Daudt
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
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
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.
Boldon, Davids and Kresha were excused.
O'Driscoll was excused until 12:40 p.m.
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.
INTRODUCTION AND FIRST READING
OF HOUSE BILLS
The
following House Files were introduced:
Winkler, Hassan, Gomez, Noor and Davnie introduced:
H. F. No. 4854, A bill for an act relating to capital investment; appropriating money for Unidos MN Education Fund.
The bill was read for the first time and referred to the Committee on Workforce and Business Development Finance and Policy.
Hamilton introduced:
H. F. No. 4855, A bill for an act relating to capital investment; appropriating money for an expansion of the Lewis & Clark Regional Water System.
The bill was read for the first time and referred to the Committee on Industrial Education and Economic Development Finance and Policy.
Howard introduced:
H. F. No. 4856, A bill for an act relating to housing; transferring money from the general fund to the housing trust fund for grants to low-income persons for purchase of shares in limited equity cooperative housing units.
The bill was read for the first time and referred to the Committee on Housing Finance and Policy.
Moller introduced:
H. F. No. 4857, A bill for an act relating to human services; modifying electronic visit verification requirements; amending Minnesota Statutes 2020, section 256B.073, subdivisions 3, 4, by adding a subdivision.
The bill was read for the first time and referred to the Committee on Human Services Finance and Policy.
Howard introduced:
H. F. No. 4858, A bill for an act relating to civil law; providing for a tenant's right to counsel in eviction proceedings; proposing coding for new law in Minnesota Statutes, chapter 504B.
The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law.
Howard introduced:
H. F. No. 4859, A bill for an act relating to human rights; prohibiting rental discrimination based on a tenant's receipt of public housing assistance; amending Minnesota Statutes 2020, sections 363A.03, by adding a subdivision; 363A.09, subdivisions 1, 2.
The bill was read for the first time and referred to the Committee on Housing Finance and Policy.
Winkler introduced:
H. F. No. 4860, A bill for an act relating to commerce; requiring scrap metal dealers to verify ownership before purchasing a catalytic converter; amending Minnesota Statutes 2021 Supplement, section 325E.21, subdivision 1b.
The bill was read for the first time and referred to the Committee on Commerce Finance and Policy.
Petersburg introduced:
H. F. No. 4861, A bill for an act relating to capital investment; appropriating money for a veterans memorial in Steele County.
The bill was read for the first time and referred to the Committee on Labor, Industry, Veterans and Military Affairs Finance and Policy.
Ecklund introduced:
H. F. No. 4862, A bill for an act relating to capital investment; appropriating money for an ambulance service facility in the city of Ely; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee on Capital Investment.
CALENDAR FOR THE DAY
H. F. No. 3669 was reported
to the House.
Marquart moved to amend H. F. No. 3669, the second engrossment, as follows:
Page 84, line 10, delete everything after the period
Page 84, delete line 11
Page 221, after line 16, insert:
"Section 1. Minnesota Statutes 2021 Supplement, section 3.8855, subdivision 4, is amended to read:
Subd. 4. Duties. (a) In the first For not more
than three years after the commission is established, the commission must
complete an initial review of the state's tax expenditures. The initial review must identify the purpose
of each of the state's tax expenditures, if none was identified in the enacting
legislation in accordance with section 3.192.
The commission may also identify metrics for evaluating the
effectiveness of an expenditure.
(b) In each year following the initial review under paragraph (a), the commission must review and evaluate Minnesota's tax expenditures on a regular, rotating basis. The commission must establish a review schedule that ensures each tax expenditure will be reviewed by the commission at least once every ten years. The commission may review expenditures affecting similar constituencies or policy areas in the same year, but the commission must review a subset of the tax expenditures within each tax type each year. To the extent possible, the commission must review a similar number of tax expenditures within each tax type each year. The commission may decide not to review a tax expenditure that is adopted by reference to federal law.
(c) Before December 1 of the year a tax expenditure is included in a commission report, the commission must hold a public hearing on the expenditure, including but not limited to a presentation of the review components in subdivision 5.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2021 Supplement, section 3.8855, subdivision 7, is amended to read:
Subd. 7. Report
to legislature. (a) By December 15
of each year, the commission must submit a written report to the legislative
committees with jurisdiction over tax policy.
The report must detail the results of the commission's review of tax
expenditures in for the previous calendar year, including
the review components detailed in subdivision 5.
(b) Notwithstanding paragraph (a), during the period of initial review under subdivision 4, the report may be limited to the purpose statements and metrics for evaluating the effectiveness of expenditures, as identified by the commission. The report may also include relevant publicly available data on an expenditure.
(c) The report may include any additional information the commission deems relevant to the review of an expenditure.
(d) The legislative committees with jurisdiction over tax policy must hold a public hearing on the report during the regular legislative session in the year following the year in which the report was submitted.
EFFECTIVE DATE. This section is effective the day following final enactment."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion prevailed and the amendment was adopted.
Bahr moved to amend H. F. No. 3669, the second engrossment, as amended, as follows:
Page 148, after line 1, insert:
"Sec. 24. LOCAL
GOVERNMENT AID REIMBURSEMENT.
Notwithstanding Minnesota Statutes,
section 477A.0124, Anoka County shall have its calendar year 2023 certified
county program aid under Minnesota Statutes, section 477A.0124, increased by
$484,650. Notwithstanding Minnesota
Statutes, sections 477A.011 to 477A.03, for aids payable in calendar year 2023,
the city of Minneapolis shall have its certified aid under Minnesota Statutes,
section 477A.013, subdivision 9, reduced by $484,650.
EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023."
Renumber the sections in sequence
A roll call was requested and properly seconded.
The question was taken on the Bahr amendment and the roll was
called. There were 60 yeas and 69 nays
as follows:
Those who voted in the affirmative were:
Akland
Albright
Anderson
Backer
Bahr
Baker
Bennett
Bliss
Boe
Burkel
Daniels
Daudt
Demuth
Dettmer
Drazkowski
Erickson
Franson
Garofalo
Green
Grossell
Gruenhagen
Haley
Hamilton
Heinrich
Heintzeman
Hertaus
Igo
Johnson
Jurgens
Kiel
Koznick
Lucero
Lueck
McDonald
Mekeland
Miller
Mortensen
Mueller
Nash
Nelson, N.
Neu Brindley
Novotny
O'Driscoll
Olson, B.
O'Neill
Petersburg
Pfarr
Pierson
Poston
Quam
Raleigh
Rasmusson
Robbins
Scott
Stephenson
Swedzinski
Theis
Torkelson
Urdahl
West
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Becker-Finn
Berg
Bernardy
Bierman
Carlson
Christensen
Davnie
Ecklund
Edelson
Elkins
Feist
Fischer
Franke
Frazier
Frederick
Freiberg
Gomez
Greenman
Hansen, R.
Hanson, J.
Hassan
Hausman
Her
Hollins
Hornstein
Howard
Huot
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Lee
Liebling
Lillie
Lippert
Lislegard
Long
Mariani
Marquart
Masin
Moller
Moran
Morrison
Murphy
Nelson, M.
Noor
Olson, L.
Pelowski
Pinto
Pryor
Reyer
Richardson
Sandell
Sandstede
Schultz
Sundin
Thompson
Vang
Wazlawik
Winkler
Wolgamott
Xiong, J.
Xiong, T.
Youakim
Spk. Hortman
The
motion did not prevail and the amendment was not adopted.
H. F. No. 3669, A bill for
an act relating to taxation; modifying provisions governing individual income
and corporate franchise taxes, sales and use taxes, property taxes, certain
state aid programs, certain local taxes, tax increment financing, and various
other taxes and tax-related provisions; providing for certain federal tax
conformity; modifying and proposing certain income tax credits and
subtractions; providing for certain sales tax exemptions; modifying property
tax refunds and programs; proposing additional local government aid programs;
authorizing certain tax increment financing; authorizing certain local taxes;
converting the renter's property tax refund into a refundable individual income
tax credit; requiring reports; appropriating money; amending Minnesota Statutes
2020, sections 6.495, subdivision 3; 38.27, subdivision 4; 41B.0391,
subdivisions 1, 2, 4; 123B.595, subdivision 3; 123B.61; 126C.40, subdivision 1;
270A.03, subdivision 2; 270B.12, subdivision 8; 272.01, subdivision 2; 272.02,
subdivisions 24, 98, by adding subdivisions; 272.025, subdivision 1; 273.124,
subdivisions 3a, 6, 13a, 13c, 13d; 273.1245, subdivision 1; 273.13, subdivision
35; 273.1315, subdivision 2; 273.1387, subdivision 2; 273.41; 279.03,
subdivision 1a; 282.261, subdivision 2; 287.12; 287.29; 287.31, subdivision 3;
289A.02, subdivision 7; 289A.38, subdivision 4; 289A.56, subdivision 6;
289A.60, subdivision 12; 290.0131, by adding subdivisions; 290.0132,
subdivisions 18, 21, 26, by adding subdivisions; 290.0133, by adding a
subdivision; 290.0134, by adding a subdivision; 290.067; 290.0674, subdivision
2; 290.0681, subdivisions 2, 3, 4; 290.0685, subdivision 1, by adding a
subdivision; 290.091, subdivision 2; 290.095, subdivision 11; 290A.02; 290A.03,
subdivisions 6, 8, 12, 13, 15; 290A.04, subdivisions 1, 2, 2h, 4; 290A.05;
290A.07, subdivision 2a; 290A.08; 290A.09; 290A.091; 290A.13; 290A.19; 290A.25;
290B.03, subdivision 1; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1;
291.005, subdivision 1; 296A.083, subdivision 3; 297A.61, subdivisions 12, 29;
297A.68, subdivision 25, by adding subdivisions; 297A.70, subdivision 21;
297A.71, subdivision 51, by adding subdivisions; 297A.94; 297A.99, subdivisions 1, 3; 297H.13,
subdivision 2; 298.28, subdivisions 7a, 9b; 366.095, subdivision 1; 373.01,
subdivision 3; 383B.117, subdivision 2; 410.32; 412.301; 462A.05, subdivision
24; 462A.38; 469.174, subdivision 14, by adding a subdivision; 469.176,
subdivisions 3, 4; 469.1763, subdivision 6; 469.1771, subdivisions 2, 2a, 3;
477A.011, subdivision 34, by adding subdivisions; 477A.0124, subdivision 2;
477A.013, subdivisions 8, 9; 477A.015; 477A.03, subdivision 2a; 477A.12,
subdivisions 1, 3, by adding a subdivision; 477B.01, subdivisions 5, 10, 11, by
adding subdivisions; 477B.02, subdivisions 2, 3, 5, 8, 9, by adding a
subdivision; 477B.03, subdivisions 2, 3, 4, 5, 7; 477B.04, subdivision 1, by
adding a subdivision; 477C.03, subdivisions 2, 5; 477C.04, by adding a
subdivision; Minnesota Statutes 2021 Supplement, sections 3.8855, subdivisions
4, 7; sections 16A.152, subdivision 2; 116J.8737, subdivision 5; 116U.27,
subdivision 1; 126C.10, subdivision 2e; 272.0295, subdivision 2; 273.11,
subdivision 12; 273.124, subdivisions 13, 14; 273.13, subdivisions 23, 25, 34;
289A.08, subdivisions 7, 7a; 289A.382, subdivision 2; 290.01, subdivisions 19,
31; 290.06, subdivisions 2c, 22; 290.0671, subdivision 1; 290.0681, subdivision
10; 290.0682, by adding subdivisions; 290.993; 290A.03, subdivision 3; 297A.71,
subdivision 52; 297A.75, subdivisions 1, 2, 3; 297A.99, subdivision 2; 297F.09,
subdivision 10; 297G.09, subdivision 9; 469.1763, subdivisions 2, 3, 4;
477A.03, subdivision 2b; 477A.30; Laws 1998, chapter 389, article 8, section
43, as amended; Laws 2003, chapter 127, article 10, section 31, subdivision 1,
as amended; Laws 2006, chapter 259, article 11, section 3, as amended; Laws
2008, chapter 366, article 7, section 17; Laws 2011, First Special Session
chapter 7, article 4, section 14; Laws 2014, chapter 308, article 6, section
12, subdivision 2; Laws 2017, First Special Session chapter 1, article 3,
section 26; Laws 2019, First Special Session chapter 6, article 6, section 25;
Laws 2021, First Special Session chapter 14, article 8, sections 5; 7;
proposing coding for new law in Minnesota Statutes, chapters 240A; 290; 477A;
proposing coding for new law as Minnesota Statutes, chapter 428B; repealing
Minnesota Statutes 2020, sections 6.91; 290.0674, subdivision 2a; 290A.03,
subdivisions 9, 11; 290A.04, subdivisions 2a, 5; 290A.23, subdivision 1; 327C.01,
subdivision 13; 327C.16; 477A.011, subdivisions 30a, 38, 42, 45; 477A.013,
subdivision 13; 477B.02, subdivision 4; 477B.03, subdivision 6; Minnesota
Statutes 2021 Supplement, section 290.0111.
Speaker
pro tempore Carlson called Vang to the Chair.
The bill was read for the third time, as
amended, and placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 69 yeas and 62 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Bahner
Becker-Finn
Berg
Bernardy
Bierman
Carlson
Christensen
Davnie
Ecklund
Edelson
Elkins
Feist
Fischer
Frazier
Frederick
Freiberg
Gomez
Greenman
Hansen, R.
Hanson, J.
Hassan
Hausman
Her
Hollins
Hornstein
Howard
Huot
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Lee
Liebling
Lillie
Lippert
Lislegard
Long
Mariani
Marquart
Masin
Moller
Moran
Morrison
Murphy
Nelson, M.
Noor
Olson, L.
Pelowski
Pinto
Pryor
Reyer
Richardson
Sandell
Sandstede
Schultz
Stephenson
Sundin
Thompson
Vang
Wazlawik
Winkler
Wolgamott
Xiong, J.
Xiong, T.
Youakim
Spk. Hortman
Those who voted in the negative were:
Akland
Albright
Anderson
Backer
Bahr
Baker
Bennett
Bliss
Boe
Burkel
Daniels
Daudt
Demuth
Dettmer
Drazkowski
Erickson
Franke
Franson
Garofalo
Green
Grossell
Gruenhagen
Haley
Hamilton
Heinrich
Heintzeman
Hertaus
Igo
Johnson
Jurgens
Kiel
Koznick
Lucero
Lueck
McDonald
Mekeland
Miller
Mortensen
Mueller
Munson
Nash
Nelson, N.
Neu Brindley
Novotny
O'Driscoll
Olson, B.
O'Neill
Petersburg
Pfarr
Pierson
Poston
Quam
Raleigh
Rasmusson
Robbins
Schomacker
Scott
Swedzinski
Theis
Torkelson
Urdahl
West
The
bill was passed, as amended, and its title agreed to.
S. F. No. 4091 was reported
to the House.
Noor moved to amend
S. F. No. 4091, the fourth engrossment, as follows:
Delete everything after the enacting
clause and insert the following language of H. F. No. 4355, the
second engrossment:
"ARTICLE 1
ECONOMIC DEVELOPMENT APPROPRIATIONS
Section
1. APPROPRIATIONS. |
The sums shown in the columns under
"Appropriations" are added to the appropriations in Laws 2021, First
Special Session chapter 10, or other law to the specified agencies. 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.
Appropriations for the fiscal year ending June 30, 2022, are effective
the day following final enactment. If an
appropriation in this act is enacted more than once during the 2022 regular
session, the appropriation is to 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 |
|
$-0- |
|
$217,097,000 |
Appropriations
by Fund |
||
|
2022
|
2023
|
|
|
|
General Fund |
-0-
|
191,347,000
|
Workforce Development |
-0-
|
25,750,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
Subd. 2. Business and Community Development |
|
-0-
|
|
134,300,000
|
(a) $20,000,000 in fiscal year 2023 is for
the Main Street Economic Revitalization Program under Minnesota Statutes,
section 116J.8749. This is a onetime
appropriation and is available until June 30, 2025.
(b) $45,000,000 in fiscal year 2023 is for
deposit in the spark small business loan program account under Minnesota
Statutes, section 116J.9926. Of this
amount, $10,000,000 is for loans to community businesses as defined in
Minnesota Statutes, section 116J.8751. Beginning
in fiscal year 2024, the base amount is $3,000,000.
(c) $20,000,000 in fiscal year 2023 is for
deposit in the emerging developer fund account in the special revenue fund. Of this amount, up to five percent is for the
administration and monitoring of the emerging developer fund program under
Minnesota Statutes, section 116J.9926. Beginning
in fiscal year 2024, the base amount is $1,000,000.
(d) $7,500,000 in fiscal year 2023 is for
the Canadian border counties economic relief program. This is a onetime appropriation.
(e) $35,000,000 in fiscal year 2023 is for
the small business recovery grant program.
This is a onetime appropriation and is available until June 30, 2024.
(f) $800,000 in fiscal year 2023 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.
(g) $1,000,000 in fiscal year 2023 is for
Join Us Minnesota campaign to market the state of Minnesota to businesses and
potential workers. This appropriation is
available until June 30, 2024. Of this
amount, up to five percent is for administration and monitoring of the program. Beginning in fiscal year 2024, the base
amount is $500,000.
(h) $2,000,000 in fiscal year 2023 is for
a grant to the Center for Economic Inclusion for strategic, data-informed
investments in job creation strategies that respond to the needs of underserved
populations statewide. Of this amount,
up to ten percent may be used for the center's technical assistance and
administrative costs. This is a onetime
appropriation.
(i)(1) $1,000,000 in fiscal year 2023 is
for a grant to the Coalition of Asian American Leaders to address employment
and economic disparities for Asian Minnesotan communities in response to the
COVID-19 pandemic and incidents of bias by conducting and disseminating
research and by providing grants, outreach, and
technical assistance to Asian
Minnesotan individuals, small businesses, and nonprofit organizations to
navigate state programs and grants related to COVID-19 pandemic health and
economic recovery challenges. This is a
onetime appropriation and is available until December 31, 2024.
(2) The Coalition of Asian American Leaders must issue a report on the outcomes of the grant to the commissioner of employment and economic development by December 15, 2024.
(j) $2,000,000 in fiscal year 2023 is for a
grant to Women's Foundation of Minnesota to invest in economic structures that
educate, mobilize, and equip Black women with the necessary tools to build,
retain, and strengthen the capacity to build generational wealth. This is a onetime appropriation.
Subd. 3. Employment
and Training Programs |
|
-0-
|
|
52,450,000
|
Appropriations
by Fund |
||
General Fund |
-0-
|
26,700,000
|
Workforce Development Fund |
-0-
|
25,750,000
|
(a) $1,000,000 in fiscal year 2023 is for
grants to organizations providing support services to new Americans in order to
facilitate successful community integration and entry into the workforce. Services may include case management, job
training and employment services, education programs, and legal services. Of this amount:
(1) $325,000 is for a grant to the
International Institute of Minnesota;
(2) $325,000 is for a grant to the
Minnesota Council of Churches;
(3) $223,000 is for a grant to Arrive
Ministries; and
(4) $127,000 is for a grant to Catholic
Charities of the Diocese of Winona, Inc.
This is a onetime appropriation.
(b) $750,000 in fiscal year 2023 is from
the workforce development fund for a grant to the Minneapolis Park and
Recreation Board's Teen Teamworks youth employment and training programs. This is a onetime appropriation and is
available until spent.
(c)(1) $20,000,000 in fiscal year 2023 is
from the workforce development fund for grants to Minnesota's 16 local
workforce development boards for strategies identified in local Workforce
Innovation and Opportunity Act plans to address Minnesota's current workforce
shortages by supporting training for unemployed
and underemployed Minnesotans and the earning of industry‑recognized credentials to equip workers with in-demand skills. Allowable uses of money include but are not limited to helping job seekers prepare for and find jobs, providing services to employers, supporting CareerForce locations, and conducting marketing and outreach for CareerForce services. Grant money must not be used for administrative costs. Grants shall be distributed consistent with the distribution and utilization of money under federal legislation regarding job training and related services. This is a onetime appropriation and is available until expended.
(2) By January 15 of each year that grant
money is used, beginning in 2023, all grant recipients shall submit a report to
the governor's Workforce Development Board that details the use of grant money,
including the number of businesses, job seekers, and other stakeholders served.
(d) $5,000,000 in fiscal year 2023 is from the workforce development fund for a youth technology competitive training grant program to prepare people who are Black, Indigenous, people of color, or women to meet the growing labor needs in Minnesota's technology industry. This is a onetime appropriation and money is available until June 30, 2024. Of this amount, up to five percent is for administration and monitoring of the program. Grant money must be used to:
(1) provide career education, wraparound support services, and job skills training for high school aged youth in the technology industry;
(2) increase the number of summer
internship opportunities in the technology industry;
(3) support outreach activities to businesses and create pathways for employment and internships for youth in the technology industry; and
(4) increase the number of young adults
employed in the technology industry and ensure that they reflect Minnesota's
diverse workforce.
Programs and services supported by grant
money must give priority to individuals and groups that are economically
disadvantaged or historically underrepresented in the technology industry,
including but not limited to women, veterans, and members of minority and
immigrant groups.
(e) $470,000 in fiscal year 2023 is for
activities associated with the Office for New Americans in Minnesota Statutes,
section 116J.4231. Beginning in fiscal
year 2024, the base amount is $500,000.
(f) $25,230,000 in fiscal year
2023 is for the targeted community capital project grant program under
Minnesota Statutes, section 116J.9924. This
is a onetime appropriation.
Subd. 4. Paid
Family and Medical Leave |
|
-0-
|
|
30,347,000
|
(a) $30,347,000 in fiscal year 2023 is for
purposes of Minnesota Statutes, chapter 268B.
This is a onetime appropriation.
(b) The base for the family and medical
benefit insurance account in the special revenue fund is $37,215,000 in fiscal
year 2024 and $453,290,000 in fiscal year 2025.
Sec. 3. DEPARTMENT
OF LABOR AND INDUSTRY |
$-0- |
|
$536,000 |
(a) $536,000 in fiscal year 2023 is for
purposes of Minnesota Statutes, chapter 268B.
This is a onetime appropriation.
(b) The base for the family and medical
benefit insurance account in the special revenue fund is $436,000 in fiscal
year 2024 and $559,000 in fiscal year 2025.
Sec. 4. DEPARTMENT
OF HUMAN SERVICES |
|
$-0- |
|
$1,066,000 |
$1,066,000 in fiscal year 2023 is for
purposes of Minnesota Statutes, chapter 268B.
The base for this appropriation is $0 in fiscal year 2024 and $214,000
in fiscal year 2025.
Sec. 5. MANAGEMENT
AND BUDGET |
|
$-0- |
|
$-0- |
For purposes of Minnesota Statutes,
chapter 268B, the general fund base is $1,967,000 in fiscal year 2024 and
$4,103,000 in fiscal year 2025.
Sec. 6. LEGISLATIVE
COORDINATING COMMISSION |
$-0- |
|
$22,000 |
$22,000 in fiscal year 2023 is for
purposes of Minnesota Statutes, chapter 268B.
The base for this appropriation is $73,000 in fiscal year 2024 and
$141,000 in fiscal year 2025.
Sec. 7. SUPREME
COURT |
|
$-0- |
|
$15,000 |
$15,000 in fiscal year 2023 is for
purposes of Minnesota Statutes, chapter 268B.
The base for this appropriation is $15,000 in fiscal year 2024 and
$492,000 in fiscal year 2025.
Sec. 8. UNIVERSITY
OF MINNESOTA |
|
$-0- |
|
$-0- |
For purposes of Minnesota Statutes,
chapter 268B, the general fund base is $1,686,000 in fiscal year 2025.
Sec. 9. FAMILY
AND MEDICAL BENEFITS; TRANSFER.
$31,986,000 in fiscal year 2024 is
transferred from the family and medical benefit insurance account in the
special revenue fund to the general fund.
This is a onetime transfer.
Sec. 10. DUPLICATE
APPROPRIATIONS GIVEN EFFECT ONCE.
If an appropriation in this act is
enacted more than once during the 2022 regular session, the appropriation is to
be given effect only once.
Sec. 11. Laws 2021, First Special Session chapter 10, article 1, section 2, subdivision 2, is amended to read:
Subd. 2. Business
and Community Development |
|
208,015,000 |
|
|
Appropriations by Fund |
||
General |
205,215,000 |
|
Remediation |
700,000 |
700,000 |
Workforce Development |
2,100,000 |
2,100,000 |
(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) $8,425,000 in the first year and $1,425,000
$6,425,000 in the second year are for the small business partnership
grant program formerly known as 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 and $7,000,000 in the first year is and
$5,000,000 in the second year are for technical assistance to small
businesses. Funding for technical
assistance to small businesses in the second year shall be divided
proportionately between program grantees from the first year. Except for awards for technical assistance
for small businesses, all grant awards shall be for two consecutive years. Grants and shall be awarded in the
first year. The small business
partnership grant program shall also provide business development assistance
and services to commercial cooperatives, employee-owned businesses, and
commercial land trusts. Beginning in
fiscal year 2024, the base amount is $4,925,000 of which $1,500,000 is for
technical assistance to small businesses participating in the spark small
business loan program under Minnesota Statutes, section 116J.8751.
(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)(1) $2,500,000 each year is the
first year and $6,500,000 the second year are for grants to local
communities to increase the number of quality child care providers to support
economic development. This appropriation
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.
In fiscal year 2024 and beyond, the base amount is $1,500,000.
(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.
(i) $1,500,000 each year is for a grant to the Minnesota Initiative Foundations. This appropriation is available until June 30, 2025. In fiscal year 2024 and beyond, the base amount is $1,000,000. 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 quality rating and improvement 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 measurement programs.
The Minnesota Initiative Foundations are
authorized to subgrant their allocation to partner organizations who are
assisting in their child care work.
(j) $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.
(k) $10,029,000 the first year and $10,028,000 the second year are for the Minnesota investment fund under Minnesota Statutes, section 116J.8731. Of this amount, the commissioner of employment and economic development may use up to three percent for administration and monitoring of the program. In fiscal 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.
(l) $0 each $5,000,000 in the
second year is for the redevelopment program under Minnesota Statutes,
sections 116J.575 116J.571 and 116J.5761. This appropriation is available until
spent. In fiscal year 2024 and
beyond, the base amount is $2,246,000 $3,496,000.
(2) For funding in fiscal year 2023, the
commissioner shall prioritize applications from development authorities located
in low-income areas, defined as:
(i) a census tract that has a poverty rate
of at least 20 percent, as reported by the United States Bureau of the Census
in the most recent American Community Survey;
(ii) a qualified census tract, as defined
under United States Code, title 26, section 42; or
(iii) a census tract, city, township, or
county in which ten percent of the population have an annual income of 200
percent or less of the federal poverty level.
(3) Notwithstanding any other law to the
contrary, no local matching funds are required from development authorities
located in low-income areas in fiscal year 2023 and state funds may be used for
100 percent of the cost of the projects.
(m) $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.
(n) $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.
(o) $12,000 each year is for a grant to the Upper Minnesota Film Office.
(p) $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.
(q) $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.
(r) $1,350,000 each year from the workforce development fund is for jobs training grants under Minnesota Statutes, section 116L.41.
(s) $2,500,000 each year is for Launch Minnesota. This appropriation is available until June 30, 2025. The base in fiscal year 2026 is $0. 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.
(t) $1,148,000 the first year is for a grant to the Northeast Entrepreneur Fund, a small business administration microlender and community development financial institution operating in northern Minnesota. 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.
(u) $80,000,000 the first year is for the Main Street Economic Revitalization Loan Program. Of this amount, up to $300,000 is for the commissioner's administration and monitoring of the program. This appropriation is available until June 30, 2025.
(v) $70,000,000 the first year is for the Main Street COVID-19 Relief Grant Program. Of this amount, up to:
(1) $34,950,000 is for grants to the Minnesota Initiative Foundations to serve businesses outside of the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2;
(2) $34,950,000 is for grants to partner organizations to serve businesses inside the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2; and
(3) $100,000 is for the commissioner's administration and monitoring of the program.
(w) $250,000 each year is for the publication, dissemination, and use of labor market information under Minnesota Statutes, section 116J.401.
(x) $500,000 each year is for the airport infrastructure renewal (AIR) grant program under Minnesota Statutes, section 116J.439. In awarding grants with this appropriation, the commissioner must prioritize eligible applicants that did not receive a grant pursuant to the appropriation in Laws 2019, First Special Session chapter 7, article 1, section 2, subdivision 2, paragraph (q).
(y) $750,000 each year is from the workforce development fund for grants to the Neighborhood Development Center for small business programs, including:
(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.
(z) $5,000,000 in the first year is for a grant to Lake of the Woods County for the forgivable loan program for remote recreational businesses. This appropriation is available until April 1, 2022.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Laws 2021, First Special Session chapter 14, article 11, section 42, is amended to read:
Sec. 42. APPROPRIATION;
MEAT PROCESSING BUSINESSES IN REDEVELOPMENT AREA.
Of an appropriation in fiscal year 2022
for the targeted community capital project grant program under Minnesota
Statutes, section 116J.9924, the commissioner of employment and economic
development must grant $6,000,000 for one or more grants to any business
engaged in the meat processing industry and currently conducting operations in
a building or buildings constructed on or before January 1, 1947, and located
in a city of the second class that was designated as a redevelopment area by
the United States Department of Commerce under the Public Works and Economic
Development Act of 1965, Public Law 89-136, title IV, section 401(a)(4). This appropriation includes: site acquisition costs; relocation costs;
predesign; design; sewer, water, and stormwater infrastructure; site
preparation; engineering; and the cost of improvements to real property locally
zoned to allow a meat processing land use that are incurred by any qualified
business under this section. A grantee
under this section must work in consultation with a local government unit with
jurisdiction over the area where the property is located on activities funded
by the grant. This is a onetime
appropriation. A grant issued under this
section is not subject to the grant requirements under Minnesota Statutes,
section 116J.9924. to the city of
South St. Paul for economic development, redevelopment, and job creation
and retention programs and projects. This
grant is not subject to the requirements under Minnesota Statutes, chapter
116J.
Sec. 13. CANCELLATION
AND APPROPRIATION.
(a) All unspent money, estimated to be
$889,000, appropriated under Laws 2015, First Special Session chapter 1,
article 1, section 2, subdivision 2, paragraphs (k) and (l), is canceled to the
general fund.
(b) All money canceled under paragraph
(a) is appropriated in fiscal year 2023 to the commissioner of employment and
economic development for the targeted community capital project grant program
under Minnesota Statutes, section 116J.9924.
This is a onetime appropriation.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 2
ECONOMIC DEVELOPMENT POLICY
Section 1.
[116J.015] REVIEW OF REPORT
MANDATES.
The commissioner of employment and
economic development shall annually create a list of reports that were mandated
by law at least three years prior to the date of the list and that no longer
serve a useful purpose. This list, along
with suggested legislation for eliminating the listed reports, shall be
submitted no later than January 15 each year, beginning in 2023, to the
legislative committees with jurisdiction over employment and economic
development for the consideration of the legislature.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. [116J.4231]
OFFICE OF NEW AMERICANS.
Subdivision 1. Office
established; purpose. (a) The
Office of New Americans is established within the Department of Employment and
Economic Development. The governor must
appoint an executive director who serves in the unclassified service. The executive director must hire a program
manager and an office assistant, as well as any staff necessary to carry out
the office's duties under subdivision 2.
(b) The purpose of the office is to
serve immigrants and refugees in Minnesota by:
(1) addressing challenges that face immigrants and refugees in Minnesota, and creating access in economic development and workforce programs and services;
(2) providing interstate agency
coordination, policy reviews, and guidance that assist in creating access to
immigrants and refugees.
Subd. 2. Duties. (a) The office has the duty to:
(1) create and implement a statewide
strategy to support immigrant and refugee integration into Minnesota
communities;
(2) address the state's workforce needs
by connecting employers and job seekers within the immigrant and refugee
community;
(3) identify strategies to reduce
employment barriers for immigrants and refugees;
(4) ensure equitable opportunities and
access to services within state government for immigrants and refugees;
(5) work with state agencies
and community and foundation partners to undertake studies and research and
analyze economic and demographic trends to better understand and serve the
state's immigrant and refugee communities;
(6) coordinate and establish best
practices for language access initiatives to all state agencies;
(7) convene stakeholders and make policy
recommendations to the governor on issues impacting immigrants and refugees;
(8) promulgate rules necessary to
implement and effectuate this section;
(9) provide an annual report, as
required by subdivision 3;
(10) perform any other activities
consistent with the office's purpose.
Subd. 3. Reporting. (a) Beginning January 15, 2024, and
each year thereafter, the Office of New Americans shall report to the
legislative committees with jurisdiction over the office's activities during
the previous year.
(b) The report shall contain, at a
minimum:
(1) a summary of the office's
activities;
(2) suggested policies, incentives, and
legislation designed to accelerate the achievement of the duties under
subdivision 2;
(3) any proposed legislative and policy
initiatives;
(4) the amount and types of grants
awarded under subdivision 6; and
(5) any other information deemed necessary and requested by the legislative committees with jurisdiction over the office.
(c) The report may be submitted electronically and is subject to section 3.195, subdivision 1.
Subd. 4. Interdepartmental
Coordinating Council on Immigrant and Refugee Affairs. (a) An interdepartmental Coordinating
Council on Immigrant and Refugee Affairs is established to advise the Office of
New Americans.
(b) The purpose of the council is to
identify and establish ways in which state departments and agencies can work
together to deliver state programs and services effectively and efficiently to
Minnesota's immigrant and refugee populations.
The council shall implement policies, procedures, and programs requested
by the governor through the state departments and offices.
(c) The council shall be chaired by the
executive director of the Office of New Americans and shall be comprised of the
commissioners, department directors, or designees, from the following state
departments and offices:
(1) the governor's office;
(2) the Department of Administration;
(3) the Department of Employment and
Economic Development;
(4) the Department of Human
Services;
(5) the Department of Human Services
Resettlement Program Office;
(6) the Department of Labor and
Industry;
(7) the Department of Health;
(8) the Department of Education;
(9) the Office of Higher Education;
(10) the Department of Public Safety;
(11) the Department of Corrections; and
(12) the Office of New Americans.
(d) Each department or office serving
as a member of the council shall designate one staff member as an immigrant and
refugee services liaison. The liaisons'
responsibilities shall include:
(1) preparation and dissemination of
information and services available to immigrants and refugees;
(2) interfacing with the Office of New
Americans on issues that impact immigrants and refugees and their communities;
and
(3) where applicable, serving as the
point of contact for immigrants and refugees accessing resources both within
the department and with boards charged with oversight of a profession.
Subd. 5. No
right of action. Nothing in
this section shall be construed to create any right or benefit, substantive or
procedural, enforceable at law or in equity by any party against the state; its
departments, agencies, or entities; its officers, employees, or agents; or any
other person.
Subd. 6. Grants. Within the limits of available
appropriations, the office may apply for grants for interested state agencies,
community partners, and stakeholders under this section to carry out the duties
under subdivision 2.
Sec. 3. Minnesota Statutes 2020, section 116J.552, subdivision 6, is amended to read:
Subd. 6. Municipality. "Municipality" means the statutory or home rule charter city, town, federally recognized Tribe, or, in the case of unorganized territory, the county in which the site is located.
Sec. 4. Minnesota Statutes 2020, section 116J.8747, is amended to read:
116J.8747
JOB TRAINING PROGRAM GRANT.
Subdivision 1. Grant allowed. The commissioner may provide a grant to a qualified job training program from money appropriated for the purposes of this section as follows:
(1) an $11,000 placement grant paid to
a job training program upon placement in employment of a qualified graduate of
the program; and
(2) an $11,000 retention grant
paid to a job training program upon retention in employment of a qualified
graduate of the program for at least one year.
(1) up to ten percent of the
appropriation may be allocated for administrative expenses by the program;
(2) up to 20 percent of the
appropriation may be allocated for direct service expenses by the program;
(3) a placement grant paid to a job
training program upon placement in employment of a qualified graduate of the
job training program as follows:
(i) $2,500 for placement in part-time
employment (20 hours a week or more) of at least 150 percent of the state
minimum wage hourly;
(ii) $2,500 for placement in full-time employment
(32 hours a week or more) at the state minimum wage but below 150 percent of
the state minimum wage hourly; and
(iii) $5,000 for placement in full-time
employment (32 hours a week or more) of at least 150 percent of the state
minimum wage hourly; and
(4) a retention grant paid to a job
training program upon retention in employment of a qualified graduate of the
job training program for at least one year as follows:
(i) $5,000 for one year of retained
part-time employment (20 hours a week or more) of at least 150 percent of the
state minimum wage;
(ii) $5,000 for one year of retained
full-time employment (32 hours a week or more) at the state minimum wage but
below 150 percent of the state minimum wage; and
(iii) $10,000 for one year of retained
full-time employment (32 hours a week or more) of at least 150 percent of the
state minimum wage hourly.
Subd. 2. Qualified job training program. To qualify for grants under this section, a job training program must satisfy the following requirements:
(1) the program must be operated by a nonprofit corporation that qualifies under section 501(c)(3) of the Internal Revenue Code;
(2) the program may spend up to $5,500 in total training per participant;
(3) the program must provide education and training in:
(i) basic skills, such as reading, writing, financial literacy, digital literacy, mathematics, and communications;
(ii) long-term plans for success including participant coaching for two years after placement;
(iii) soft skills, including skills critical to success on the job; and
(iv) access to internships, technology training, personal and emotional intelligence skill development, and other support services;
(4) the program may provide income
supplements not to exceed $2,000 per participant support services,
when needed, to participants for housing, counseling, tuition, and other basic
needs;
(5) individuals served by the program must be 18 years of age or older as of the date of enrollment, and have household income in the six months immediately before entering the program that is 200 percent or less of the federal poverty guideline for Minnesota, based on family size; and
(6) the program must be certified by the commissioner of employment and economic development, or the commissioner's designee, as meeting the requirements of this subdivision.
Subd. 3. Graduation
and retention grant Employment requirements. For purposes of a placement grant
under this section, a qualified graduate is a graduate of a job training
program qualifying under subdivision 2 who is placed in a job in Minnesota that
pays at least the current state minimum wage.
To qualify for a retention grant under this section for a retention fee,
a job in which the graduate is retained must pay at least the current state
minimum wage. (a) For employment
to qualify under subdivision 1, the employment must be permanent, unsubsidized,
private or public sector employment, eligible for unemployment insurance under
section 268.035, or otherwise eligible for unemployment insurance under section
268.035 if hours were above 32 per week.
(b) Programs are limited to one
placement and one retention payment for a qualified graduate in a performance
program within the two years following a placement or retention payment made
under this section.
Subd. 4. Duties of program. (a) A program certified by the commissioner under subdivision 2 must comply with the requirements of this subdivision.
(b) A program must maintain and provide
upon request records for each qualified graduate in compliance with
state record retention requirements.
The records must include information sufficient to verify the graduate's
eligibility under this section, identify the employer, and describe the job
including its compensation rate and, benefits, and average
hours per week.
(c) A program is subject to the reporting requirements under section 116L.98.
Sec. 5. Minnesota Statutes 2021 Supplement, section 116J.8749, is amended to read:
116J.8749
MAIN STREET ECONOMIC REVITALIZATION PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given.
(b) "Borrower" means an eligible recipient receiving a loan guaranteed or capitalized under this section.
(c) "Capitalized loan" means
a loan for which the state provides up to 20 percent of the loan funding with
the state funds payment subordinate in the event of default.
(c) (d) "Commissioner"
means the commissioner of employment and economic development.
(d) (e) "Eligible
project" means the development, redevelopment, demolition, site
preparation, predesign, design, engineering, repair, or renovation of real
property or capital improvements. Eligible
projects must be designed to address the greatest economic development and
redevelopment needs that have arisen in the community surrounding that real
property since March 15, 2020. Eligible
project includes but is not limited to the construction of buildings,
infrastructure, and related site amenities, landscaping, or street-scaping. Eligible project does not include the
purchase of real estate or business operations or business operating expenses,
such as inventory, wages, or working capital.
(e) (f) "Eligible recipient" means a:
(1) business;
(2) nonprofit organization; or
(3) developer
that is seeking funding to complete an eligible project. Eligible recipient does not include a partner organization or a local unit of government.
(f) (g) "Guaranteed
loan" means a loan guaranteed by the state for 80 percent of the loan
amount for a maximum period of 15 years from the origination of the loan.
(g) (h) "Leveraged
grant" means a grant that is matched by the eligible recipient's
commitment to the eligible project of nonstate funds at a level of 200 percent
of the grant amount. The nonstate match
may include but is not limited to funds contributed by a partner organization
and insurance proceeds.
(h) (i) "Loan guarantee
trust fund" means a dedicated account established under this section for
the purpose of compensation for defaulted loan guarantees.
(j) "Low-income area" means a
census tract that has a poverty rate of at least 20 percent as reported in the
most recently completed decennial census published by the United States Bureau
of the Census.
(i) (k) "Partner
organizations" or "partners" means:
(1) foundations engaged in economic development;
(2) community development financial institutions; and
(3) community development corporations.
(j) (l) "Program"
means the Main Street Economic Revitalization Program under this section.
(k) (m) "Subordinated
loan" means a loan secured by a lien that is lower in priority than one or
more specified other liens.
Subd. 2. Establishment. The commissioner shall establish the Main Street Economic Revitalization Program to make grants to partner organizations to fund leveraged grants, capitalized loans, and guaranteed loans to specific named eligible recipients for eligible projects that are designed to address the greatest economic development and redevelopment needs that have arisen in the surrounding community since March 15, 2020.
Subd. 3. Grants to partner organizations. (a) The commissioner shall make grants to partner organizations to provide leveraged grants, capitalized loans, and guaranteed loans to eligible recipients using criteria, forms, applications, and reporting requirements developed by the commissioner.
(b) To be eligible for a grant, a partner organization must:
(1) outline a plan to provide leveraged grants, capitalized loans, and guaranteed loans to eligible recipients for specific eligible projects that represent the greatest economic development and redevelopment needs in the surrounding community. This plan must include an analysis of the economic impact of the eligible projects the partner organization proposes to make these investments in;
(2) establish a process of
ensuring there are no conflicts of interest in determining awards under the
program; and
(3) demonstrate that the partner organization has raised funds for the specific purposes of this program to commit to the proposed eligible projects or will do so within the 15-month period following the encumbrance of funds. Existing assets and state or federal funds may not be used to meet this requirement.
(c) Grants shall be made in up to three rounds:
(1) a first round with an application date before September 1, 2021, during which no more than 50 percent of available funds will be granted;
(2) a second round with an application date after September 1, 2021, but before March 1, 2022; and
(3) a third round with an application date after June 30, 2023, if any funds remain after the first two rounds.
A partner may apply in multiple rounds for projects that were not funded in earlier rounds or for new projects.
(d) Up to four percent of a grant under this subdivision may be used by the partner organization for administration and monitoring of the program.
Subd. 4. Award criteria. In awarding grants under this section, the commissioner shall give funding preference to applications that:
(1) have the greatest regional economic impact under subdivision 3, paragraph (b), clause (1), particularly with regard to increasing the local tax base; and
(2) have the greatest portion of the estimated cost of the eligible projects met through nonstate funds.
Subd. 5. Leveraged grants to eligible recipients. (a) A leveraged grant to an eligible recipient shall be for no more than $750,000.
(b) A leveraged grant may be used to finance no more than 30 percent of an eligible project.
(c) An eligible project must have secured commitments for all required matching funds and all required development approvals before a leveraged grant may be distributed.
(d) The commissioner may waive the
matching fund requirement for projects located in low-income areas.
Subd. 6. Capitalized and guaranteed loans to eligible recipients. (a) A capitalized or guaranteed loan to an eligible recipient must:
(1) be for no more than $2,000,000; and
(2) be for a term of no more than 15 years;
and.
(3) (b) All capitalized loans shall
comply with the terms under subdivision 6a and all guaranteed loans shall
comply with the terms under subdivision 7.
(b) (c) An eligible project
must have all required development approvals before a capitalized or
guaranteed loan may be distributed.
(d)
Upon origination of a capitalized loan, the commissioner shall authorize
disbursement of up to 20 percent of the loan amount to the partner
organization.
(c) (e) Upon origination of
a guaranteed loan, the commissioner must reserve ten percent of the loan amount
into the loan guarantee trust fund created under subdivision 8.
(d) (f) No capitalized or
guaranteed loan may be made to an eligible recipient after December 31, 2024.
Subd. 6a. Required
terms for capitalized loans. For
a capitalized loan under the program:
(1) principal and interest payments
made by the borrower under the terms of the loan shall be allocated first to
the nonstate portion of the loan and second to the state portion of the loan;
(2) the partner organization shall not
accelerate repayment of the loan or exercise other remedies if the borrower
defaults, unless:
(i) the borrower fails to make a
required payment of principal or interest within 60 days of the due date; or
(ii) the commissioner consents in writing;
(3) the partner organization must
timely prepare and deliver to the commissioner, annually by the date specified
in the loan agreement, an audited or reviewed financial statement for the loan,
prepared by a certified public accountant according to generally accepted
accounting principles, if available, and documentation that the borrower used
the loan proceeds solely for an eligible project;
(4) the commissioner shall have access
to loan documents at any time subsequent to the loan documents being submitted
to the partner organization;
(5) the partner organization must
maintain adequate records and documents concerning the loan so that the
commissioner may determine the borrower's financial condition and compliance
with program requirements;
(6) the state portion of the loan may
be subordinate to other loans made by lenders in the overall financing package;
and
(7) repayments of the state portion of
the loan may be retained by the partner organization for capitalizing
additional redevelopment projects.
Subd. 7. Required terms for guaranteed loans. For a guaranteed loan under the program:
(1) principal and interest payments made by the borrower under the terms of the loan are to reduce the guaranteed and nonguaranteed portion of the loan on a proportionate basis. The nonguaranteed portion shall not receive preferential treatment over the guaranteed portion;
(2) the partner organization shall not accelerate repayment of the loan or exercise other remedies if the borrower defaults, unless:
(i) the borrower fails to make a required payment of principal or interest within 60 days of the due date; or
(ii) the commissioner consents in writing;
(3) in the event of a default, the partner organization may not make a demand for payment pursuant to the guarantee unless the commissioner agrees in writing that the default has materially affected the rights or security of the parties;
(4) the partner organization must timely prepare and deliver to the commissioner, annually by the date specified in the loan guarantee, an audited or reviewed financial statement for the loan, prepared by a certified public accountant according to generally accepted accounting principles, if available, and documentation that the borrower used the loan proceeds solely for an eligible project;
(5) the commissioner shall have access to loan documents at any time subsequent to the loan documents being submitted to the partner organization;
(6) the partner organization must maintain adequate records and documents concerning the loan so that the commissioner may determine the borrower's financial condition and compliance with program requirements;
(7) orderly liquidation of collateral securing the loan must be provided for in the event of default, pursuant to the loan guarantee; and
(8) the guaranteed portion of the loan may be subordinate to other loans made by lenders in the overall financing package.
Subd. 8. Loan guarantee trust fund established. A loan guarantee trust fund account in the special revenue fund is created in the state treasury to pay for defaulted loan guarantees. The commissioner shall administer this account. The day that this section expires, all remaining funds in the account are canceled to the general fund.
Subd. 9. Statewide program. In proportion to eligible demand, leveraged grants, capitalized loans, and guaranteed loans under this section shall be made so that an approximately equal dollar amount of leveraged grants, capitalized loans, and guaranteed loans are made to businesses in the metropolitan area as in the nonmetropolitan area, not to exceed 65 percent in any one area. After June 30, 2023, the department may allow leveraged grants, capitalized loans, and guaranteed loans to be made anywhere in the state without regard to geographic area.
Subd. 10. 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 funds under this section in accordance with standard accounting practices. The exemptions under this subdivision expire on December 31, 2023.
Subd. 11. Reports. (a) By January 31, 2022, and annually until December 31, 2026, after which biennial reporting will be permitted after the commissioner consults with the legislature, partner organizations participating in the program must provide a report to the commissioner that includes descriptions of the eligible projects supported by the program, the type and amount of support provided, any economic development gains attributable to the support, and an explanation of administrative expenses.
(b) By February 15, 2022, and annually until December 31, 2026, after which biennial reporting will be permitted after the commissioner consults with the legislature, the commissioner must report to the legislative committees in the house of representatives and senate with jurisdiction over economic development about funding provided under this program based on the information received under paragraph (a) and about the performance of the loan guarantee trust fund.
Subd. 12. Expiration. This section expires December 31, 2036.
EFFECTIVE
DATE. This section is
effective retroactively from July 1, 2021.
Sec. 6. [116J.8751]
SPARK SMALL BUSINESS LOAN PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Account" means the spark
small business loan program account created under subdivision 5.
(c) "Commissioner" means the
commissioner of employment and economic development.
(d) "Community business"
means a cooperative, an employee-owned business, or a commercial land trust
that is at least 51 percent owned by individuals from targeted groups.
(e) "Immigrant" means a
lawful permanent resident who has been in the United States for a maximum of
seven years at the time of application.
(f) "Partner organization"
means a community development financial institution or nonprofit corporation.
(g) "Program" means the spark
small business loan program established under this section.
(h) "Targeted groups" means
people who are Black, Indigenous, People of Color, immigrants, low income,
women, veterans, or people with disabilities.
Subd. 2. Establishment. The spark small business loan program
is established to award grants to partner organizations to fund loans statewide
to businesses that employ the equivalent of 50 full-time workers or less, to
encourage private investment, provide jobs, create and strengthen business
enterprises, and promote economic development.
Subd. 3. Grants
to partner organizations. (a)
The commissioner shall award grants to partner organizations through a
competitive grant process where applicants apply using a form designed by the commissioner. In evaluating applications, the commissioner
must consider, among other things, whether the applicant:
(1) has a board of directors that
includes citizens experienced in business and community development and
creating jobs;
(2) has the technical skills to analyze
projects;
(3) is familiar with other available
public and private funding sources and economic development programs;
(4) can initiate and implement economic
development projects;
(5) can establish and administer a revolving
loan account or has operated a revolving loan account; and
(6) can work with job referral
networks.
(b) The commissioner shall ensure that,
to the extent there is sufficient eligible demand, loans are made to businesses
inside and outside the metropolitan area, as defined in section 473.121,
subdivision 2, in a manner approximating each region's proportion of the state
population. After March 31 of each
fiscal year, the commissioner may allow loans to be made anywhere in the state
without regard to geographic area.
(c) Partner organizations that receive
grants under this subdivision may use up to ten percent of the award for
administrative expenses, including providing specialized technical and legal
assistance, either directly or through partnership with nonprofit
organizations, to businesses eligible to apply for loans under this program.
(d) The commissioner shall
review existing agreements with partner organizations every five years and may
renew or terminate the agreement based on that review. In making the review, the commissioner shall
consider, among other criteria, the criteria in paragraph (a).
Subd. 4. Loans
to businesses. (a) A partner
organization that receives a grant under subdivision 3 shall establish a plan
for making loans to businesses. The plan
requires approval by the commissioner.
(b) Under the plan:
(1) the partner organization shall
establish a commissioner-certified revolving loan fund for the purpose of
making loans to businesses;
(2) loans shall be for projects that are
unlikely to be undertaken unless a loan is received under the program;
(3) a partner organization may not make
a loan to a project in which it has an ownership interest;
(4) the state contribution to each loan
shall be no less than $5,000 and no more than:
(i) $35,000 if the loan is for a retail
development project;
(ii) $600,000 if the loan is for a
community business; and
(iii) $150,000 for all other loans;
(5) the interest rate on a loan shall
not be higher than the Wall Street Journal prime rate and may be zero;
(6) loans shall be for a maximum term of
seven years;
(7) the partner organization may charge
a loan origination fee of no more than one percent of the loan value and may
retain that origination fee;
(8) a loan application given preliminary
approval by the partner organization must be forwarded to the commissioner for
final approval;
(9) repayments may be deferred for up to
one year if justified by the project proposed and approved by the commissioner;
(10) all repayments of interest on loans
shall be deposited in the partner organization's revolving loan fund for use in
making further loans consistent with this section;
(11) all repayments of loan principal
must be paid to the commissioner for deposit in the spark small business loan
program account; and
(12) up to ten percent of a loan's
principal amount may be forgiven if the commissioner approves and the borrower
has met lender criteria, including being current with all payments.
Subd. 5. Creation
of account. A spark small
business loan program account is created in the special revenue fund in the
state treasury. Money in the account is
appropriated to the commissioner for the grants under this section. Annually, the commissioner may use an amount
equal to no more than four percent of the value of grants made in the previous
year for the administrative costs of the program. In fiscal year 2023, the commissioner may use
$500,000 for administration. Notwithstanding
section 16A.28, money deposited in the account from any source is available
until expended.
Subd. 6. Reporting
requirements. (a) A partner
organization that receives a grant shall:
(1) submit an annual report to the
commissioner by February 15 of each year, beginning in 2024, that includes a description
of businesses supported by the program, an account of loans made during the
calendar year, the program's impact on business enterprises and job creation,
the source and amount of money collected and distributed by the program, the
program's assets and liabilities, and an explanation of administrative
expenses; and
(2) provide for an independent annual
audit to be performed in accordance with generally accepted accounting
practices and auditing standards and submit a copy of each annual audit report
to the commissioner.
(b) By March 1 of each year, beginning
in 2024, the commissioner shall submit a report to the chairs and ranking
minority members of the legislative committees with jurisdiction over economic
development on program outcomes, including copies of all reports and audits
received under paragraph (a).
Sec. 7. Minnesota Statutes 2020, section 116J.8770, is amended to read:
116J.8770
EQUITY INVESTMENTS.
The commissioner may invest funds from the
capital access account to make equity investments in community development
early stage and venture capital funds for the purpose of providing
capital for small and emerging businesses.
The community development early stage and venture capital
fund must have experience in equity investments with small businesses and the
ability to raise private capital.
Sec. 8. Minnesota Statutes 2021 Supplement, section 116J.9924, subdivision 4, is amended to read:
Subd. 4. Grant
amount; project phasing. (a) The
commissioner shall award grants in an amount not to exceed $1,500,000 $3,000,000
per grant.
(b) A grant awarded under this section must be no less than the amount required to complete one or more phases of the project, less any nonstate funds already committed for such activities.
Sec. 9. [116J.9926]
EMERGING DEVELOPER FUND 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) "Disadvantaged community"
means a community where the median household income is less than 80 percent of
the area median income.
(d) "Eligible project" means
a project that is based in Minnesota and meets one or more of the following
criteria:
(1) it will stimulate community
stabilization or revitalization;
(2) it will be located within a census
tract identified as a disadvantaged community or low-income community;
(3) it will directly benefit residents
of a low-income household;
(4) it will increase the supply and
improve the condition of affordable housing and homeownership;
(5) it will support the growth
needs of new and existing community-based enterprises that promote economic
stability or improve the supply or quality of job opportunities; or
(6) it will promote wealth creation,
including by being a project in a neighborhood traditionally not served by real
estate developers.
(e) "Emerging developer"
means a developer who:
(1) has limited access to loans from
traditional financial institutions; or
(2) is a new or smaller developer who
has engaged in educational training in real estate development; and
(3) is either a:
(i) minority as defined in section
116M.14, subdivision 6;
(ii) woman;
(iii) person with a disability, as
defined in section 116M.14, subdivision 9; or
(iv) low-income person.
(f) "Low-income person" means
a person who:
(1) has a household income at or below
200 percent of the federal poverty level; or
(2) has a family income that does not
exceed 60 percent of the area median income as determined by the United States
Department of Housing and Urban Development.
(g) "Partner organization"
means a community development financial institution or a similarly qualified
nonprofit corporation, as determined by the commissioner.
(h) "Program" means the
emerging developer fund program created under this section.
Subd. 2. Establishment. The commissioner shall establish an
emerging developer fund program to make grants to partner organizations to make
loans to emerging developers for eligible projects to transform neighborhoods
statewide and promote economic development and the creation and retention of
jobs in Minnesota. The program must also
reduce racial and socioeconomic disparities by growing the financial capacity
of emerging developers.
Subd. 3. Grants
to partner organizations. (a)
The commissioner shall design a competitive process to award grants to partner
organizations to make loans to emerging developers under subdivision 4.
(b) A partner organization may use up
to ten percent of grant funds for the administrative costs of the program.
Subd. 4. Loans
to emerging developers. (a)
Through the program, partner organizations shall offer emerging developers
predevelopment, construction, and bridge loans for eligible projects according
to a plan submitted to and approved by the commissioner.
(b) Predevelopment loans must be for no
more than $50,000. All other types of
loans must be for no more than $500,000.
(c)
Loans must be for a term set by the partner organization and approved by the
commissioner of no less than six months and no more than five years, depending
on the use of loan proceeds.
(d) Loans must be for zero interest or
an interest rate of no more than the Wall Street Journal prime rate, as determined
by the partner organization and approved by the commissioner based on the
individual project risk and type of loan sought.
(e) Loans must have flexible collateral
requirements compared to traditional loans, but may require a personal guaranty from the emerging developer and may be
largely unsecured when the appraised value of the real estate is low.
(f) Loans must have no prepayment
penalties and are expected to be repaid from permanent financing or a
conventional loan, once that is secured.
(g) Loans must have the ability to
bridge many types of receivables, such as tax credits, grants, developer fees,
and other forms of long-term financing.
(h) At the partner organization's
request and the commissioner's discretion, an emerging developer may be
required to work with an experienced developer or professional services
consultant who can offer expertise and advice throughout the development of the
project.
(i) All loan repayments must be paid
into the emerging developer fund account created in this section to fund
additional loans.
Subd. 5. Eligible
expenses. (a) The following
are eligible expenses for a predevelopment loan under the program:
(1) earnest money or purchase deposit;
(2) building inspection fees and
environmental reviews;
(3) appraisal and surveying;
(4) design and tax credit application
fees;
(5) title and recording fees;
(6) site preparation, demolition, and
stabilization;
(7) interim maintenance and project
overhead;
(8) property taxes and insurance;
(9) construction bonds or letters of
credit;
(10) market and feasibility studies;
and
(11) professional fees.
(b) The following are eligible expenses
for a construction or bridge loan under the program:
(1) land or building acquisition;
(2) construction-related
expenses;
(3) developer and contractor fees;
(4) site preparation and demolition;
(5) financing fees, including title and
recording;
(6) professional fees;
(7) carrying costs;
(8) construction period interest;
(9) project reserves; and
(10) leasehold improvements and
equipment purchase.
Subd. 6. Emerging
developer fund account. An
emerging developer fund account is created in the special revenue fund in the
state treasury. Money in the account is
appropriated to the commissioner for grants to partner organizations to make
loans under this section.
Subd. 7. Reports
to the legislature. (a) By
January 15 of each year, beginning in 2024, each partner organization shall
submit a report to the commissioner on the use of program funds and program
outcomes.
(b) By February 15 of each year,
beginning in 2024, the commissioner shall submit a report to the chairs of the
house of representatives and senate committees with jurisdiction over economic
development on the use of program funds and program outcomes.
Sec. 10. Minnesota Statutes 2020, section 116J.993, subdivision 3, is amended to read:
Subd. 3. Business subsidy. "Business subsidy" or "subsidy" means a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business.
The following forms of financial assistance are not a business subsidy:
(1) a business subsidy of less than $150,000;
(2) assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria;
(3) public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made;
(4) redevelopment property polluted by contaminants as defined in section 116J.552, subdivision 3;
(5) assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50 percent of the total cost;
(6) assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services;
(7) assistance for housing;
(8) assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under section 469.174, subdivision 23;
(9) assistance for energy conservation;
(10) tax reductions resulting from conformity with federal tax law;
(11) workers' compensation and unemployment insurance;
(12) benefits derived from regulation;
(13) indirect benefits derived from assistance to educational institutions;
(14) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1999;
(15) assistance for a collaboration between a Minnesota higher education institution and a business;
(16) assistance for a tax increment financing soils condition district as defined under section 469.174, subdivision 19;
(17) redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value;
(18) general changes in tax increment financing law and other general tax law changes of a principally technical nature;
(19) federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency;
(20) funds from dock and wharf bonds issued by a seaway port authority;
(21) business loans and loan guarantees of $150,000 or less;
(22) federal loan funds provided through the United States Department of Commerce, Economic Development Administration, Department of the Treasury; and
(23) property tax abatements granted under section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100.
Sec. 11. Minnesota Statutes 2020, section 116L.04, subdivision 1a, is amended to read:
Subd. 1a. Pathways program. The pathways program may provide grants-in-aid for developing programs which assist in the transition of persons from welfare to work and assist individuals at or below 200 percent of the federal poverty guidelines. The program is to be operated by the board. The board shall consult and coordinate with program administrators at the Department of Employment and Economic Development to design and provide services for temporary assistance for needy families recipients.
Pathways grants-in-aid may be awarded to educational or other nonprofit training institutions or to workforce development intermediaries for education and training programs and services supporting education and training programs that serve eligible recipients.
Preference shall be given to projects that:
(1) provide employment with benefits paid to employees;
(2) provide employment where there are defined career paths for trainees;
(3) pilot the development of an educational pathway that can be used on a continuing basis for transitioning persons from welfare to work; and
(4) demonstrate the active participation of Department of Employment and Economic Development workforce centers, Minnesota State College and University institutions and other educational institutions, and local welfare agencies.
Pathways projects must demonstrate the
active involvement and financial commitment of private participating
business. Pathways projects must be
matched with cash or in-kind contributions on at least a one-half-to-one ratio
by participating private business.
A single grant to any one institution shall not exceed $400,000. A portion of a grant may be used for preemployment training.
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 permanently separated or has received a notice of 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) 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) 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) 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) 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) 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 now 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.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) "Pre-enrollment" means the period of time before an individual was enrolled in a workforce program.
Sec. 14. 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.
(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.
Sec. 15. CANADIAN
BORDER COUNTIES ECONOMIC RELIEF PROGRAM.
Subdivision 1. Relief
program established. The
Northland Foundation and the Northwest Minnesota Foundation must develop and
implement a Canadian border counties economic relief program to assist businesses
adversely affected by the 2021 closure of the Boundary Waters Canoe Area
Wilderness or the closures of the Canadian border since 2020.
Subd. 2. Available
relief. (a) The economic
relief program established under this section may include grants provided in
this section to the extent that funds are available. Before awarding grants to the Northland
Foundation and the Northwest Minnesota Foundation for the relief program under
this section:
(1) the Northland Foundation and the
Northwest Minnesota Foundation must develop criteria, procedures, and
requirements for:
(i) determining eligibility for
assistance;
(ii) evaluating applications for
assistance;
(iii) awarding assistance; and
(iv) administering the grant program
authorized under this section;
(2) the Northland Foundation and the
Northwest Minnesota Foundation must submit criteria, procedures, and
requirements developed under clause (1) to the commissioner of employment and
economic development for review; and
(3) the commissioner must approve the
criteria, procedures, and requirements submitted under clause (2).
(b) The maximum grant to a business
under this section is $50,000 per business.
Subd. 3. Qualification
requirements. To qualify for
assistance under this section, a business must:
(1) be located within a county that
shares a border with Canada;
(2) document a reduction of at least 20
percent in gross receipts in 2021 compared to 2019; and
(3) provide a written explanation for
how the 2021 closure of the Boundary Waters Canoe Area Wilderness or the closures of the Canadian border since 2020
resulted in the reduction in gross receipts documented under clause (2).
Subd. 4. Monitoring. (a) The Northland Foundation and the
Northwest Minnesota Foundation must establish performance measures, including
but not limited to the following components:
(1) the number of grants awarded and
award amounts for each grant;
(2) the number of jobs created or
retained as a result of the assistance, including information on the wages and
benefit levels, the status of the jobs as full time or part time, and the
status of the jobs as temporary or permanent;
(3) the amount of business activity and
changes in gross revenues of the grant recipient as a result of the assistance;
and
(4) the new tax revenue generated as a
result of the assistance.
(b) The commissioner of
employment and economic development must monitor the Northland Foundation's and
the Northwest Minnesota Foundation's compliance with this section and the
performance measures developed under paragraph (a).
(c) The Northland Foundation and the
Northwest Minnesota Foundation must comply with all requests made by the
commissioner under this section.
Subd. 5. Business
subsidy requirements. Minnesota
Statutes, sections 116J.993 to 116J.995, do not apply to assistance under this
section. Businesses in receipt of
assistance under this section must provide for job creation and retention goals
and wage and benefit goals.
Subd. 6. Administrative
costs. The commissioner of
employment and economic development may use up to three percent of the
appropriation made for this section for administrative expenses of the
department.
EFFECTIVE
DATE. This section is
effective July 1, 2022, and expires June 30, 2023.
Sec. 16. SMALL
BUSINESS RECOVERY GRANT PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Business" means both for-profit
businesses and nonprofit organizations that earn revenue in ways similar to
businesses, including but not limited to ticket sales and membership fees.
(c) "Commissioner" means the
commissioner of employment and economic development.
(d) "Partner organization" or
"partner" means the Minnesota Initiative Foundations and nonprofit
corporations on the certified lenders list that the commissioner determines to
be qualified to provide grants to businesses under this section.
(e) "Program" means the small
business recovery grant program under this section.
Subd. 2. Establishment. The commissioner shall establish the
small business recovery grant program to make grants to partner organizations
to provide grants to businesses that have been directly or indirectly impacted
by the COVID-19 pandemic and other economic challenges.
Subd. 3. Grants
to partner organizations. (a)
The commissioner shall make grants to partner organizations to provide grants
to businesses under subdivision 4 using criteria, forms, applications, and
reporting requirements developed by the commissioner.
(b) The commissioner must, to the
degree practical, grant an equal amount of money to partner organizations
serving the seven-county metropolitan area, as defined under Minnesota
Statutes, section 473.121, subdivision 2, as the commissioner grants to
organizations serving greater Minnesota.
(c) Up to four percent of a grant under
this subdivision may be used by the partner organization for administration and
monitoring of the program.
(d) Any money not spent by partner
organizations by December 31, 2023, must be returned to the commissioner and
canceled back to the general fund.
Subd. 4. Grants
to businesses. (a) Partners
shall make grants to businesses using criteria, forms, applications, and
reporting requirements developed by the commissioner.
(b) To be eligible for a grant
under this subdivision, a business must:
(1) have primary business operations
located in Minnesota;
(2) be at least 50 percent owned by a
resident of Minnesota;
(3) employ the equivalent of 50
full-time workers or less;
(4) be able to demonstrate financial
hardship during 2021 or 2022;
(5) include as part of the application
a business plan for continued operation; and
(6) primarily do business in one or
more of the industries listed under subdivision 5.
(c) Grants under this subdivision shall
be awarded by randomized selection process after applications are collected
over a period of no more than ten calendar days.
(d) Grants under this subdivision must
be for up to $25,000 per business.
(e) No business may receive more than
one grant under this section.
(f) Grant money 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 January 1,
2022, 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. Eligible
industries. To be eligible
for a grant under subdivision 4, a business must primarily do business in one
or more of the following industries:
(1) serving food or beverages, such as
restaurants, cafes, bars, breweries, wineries, and distilleries;
(2) personal services, such as hair
care, nail care, skin care, or massage;
(3) indoor entertainment, such as a
business providing arcade games, escape rooms, or indoor trampoline parks;
(4) indoor fitness and recreational sports centers, such as gyms, fitness studios, indoor ice rinks, and indoor swimming pools;
(5) wellness and recreation, such as
the teaching of yoga, dance, or martial arts;
(6) catering services;
(7) temporary lodging, such as hotels
and motels; or
(8) performance venues.
Subd. 6. Distribution
of awards. Of grant funds
awarded under subdivision 4, a minimum of:
(1) $5,000,000 must be awarded to
businesses that employ the equivalent of six full-time workers or less;
(2) $3,500,000 must be awarded to
minority business enterprises, as defined in Minnesota Statutes, section
116M.14, subdivision 5;
(3) $1,000,000 must be awarded
to businesses that are majority owned and operated by veterans as defined in
Minnesota Statutes, section 197.447; and
(4) $1,000,000 must be awarded to
businesses that are majority owned and operated by women.
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
money under this section in accordance with standard accounting practices. This subdivision expires on December 31,
2023.
Subd. 8. Reports. (a) By January 31, 2024, partner
organizations participating in the program must provide a report to the
commissioner that includes descriptions of the businesses supported by the
program, the amounts granted, and an explanation of administrative expenses.
(b) By February 15, 2024, 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 section based on the information received under
paragraph (a).
Sec. 17. ENCUMBRANCE
EXCEPTION.
Notwithstanding Minnesota Statutes,
section 16B.98, subdivision 5, paragraph (a), clause (2), or 16C.05,
subdivision 2, paragraph (a), clause (3), the commissioner of employment and
economic development may permit grant recipients of the Minnesota investment
fund program under Minnesota Statutes, section 116J.8731; the job creation fund
program under Minnesota Statutes, section 116J.8748; and the border-to-border
broadband program under Minnesota Statutes, section 116J.395, to incur eligible
expenses based on an agreed upon work plan and budget for up to 90 days prior
to an encumbrance being established in the accounting system.
EFFECTIVE
DATE. This section is
effective the day following final enactment and expires on June 30, 2025.
Sec. 18. REPEALER.
Minnesota Statutes 2021 Supplement,
section 116J.9924, subdivision 6, is repealed.
ARTICLE 3
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:
(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, with respect to an employee:
(1) a spouse, including a domestic
partner in a civil union or other registered domestic partnership recognized by
the state, and a spouse's parent;
(2) a child and a child's spouse;
(3) a parent and a parent's spouse;
(4) a sibling and a sibling's spouse;
(5) a grandparent, a grandchild, or a
spouse of a grandparent or grandchild; and
(6) any other individual who is related
by blood or affinity and whose association with the employee is equivalent of a
family relationship. For the purposes of
this clause, with respect to an employee, this includes but is not limited to:
(i) a child of a sibling of the
employee;
(ii) a sibling of the parents of the
employee;
(iii) a child-in-law, a parent-in-law,
a sibling-in-law, and a grandparent-in-law; and
(iv) an individual who has
resided at the same address as the employee for at least one year as of the
first day of leave under this chapter.
(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 or biological, adopted, or foster
grandchild of the employee.
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 fully 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 shall 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
appeal is filed by the applicant within 30 calendar days after the sending of
the determination or amended determination, or within 60 calendar days, if an
applicant establishes good cause for not appealing within 30 days. For the purposes of this paragraph,
"good cause" means a reason that would have prevented an applicant
from acting with due diligence in appealing within 30 days and includes any
illness, disability, or linguistic and literacy limitation of the applicant, along
with other relevant factors. If an
applicant claims good cause for a late appeal, the applicant must be granted a
hearing on the issue of timeliness. This
hearing can be held at the same time as a hearing on the merits of the appeal. 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 shall 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), 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 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, this
paragraph does not apply to that week.
(d) 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 30 calendar days
after sending, or within 60 calendar days, if the applicant establishes good
cause for not appealing within 30 days. For
the purposes of this paragraph, "good cause" means a reason that
would have prevented an applicant from acting with due diligence in appealing
within 30 days and includes any illness, disability, or linguistic and literacy
limitation of the applicant, along with other relevant factors. If an applicant claims good cause for a late
appeal, the applicant must be granted a hearing on the issue of timeliness. This hearing can be held at the same time as
a hearing on the merits of the appeal. 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
oral, telephone, or text message 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 is reasonable and
appropriate to the needs of 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 has 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 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 December 1, 2024, as part of the annual report established in section
268B.24.
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, 2024, 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 account.
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 January 1, 2024, through December
31, 2024, the commissioner may spend up to seven percent of premiums collected
under section 268B.15 for administration of this chapter. Beginning January 1, 2025, 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 January 1, 2024, 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 30 calendar days after the sending of a determination of overpayment
penalty to the applicant by mail or electronic transmission, or within 60
calendar days, if the applicant establishes good cause for not appealing within
30 days, the determination is final. For
the purposes of this paragraph, "good cause" means a reason that
would have prevented an applicant from acting with due diligence in appealing
within 30 days and includes any illness, disability, or linguistic and literacy
limitation of the applicant, along with other relevant factors. If an applicant claims good cause for a late
appeal, the applicant must be granted a hearing on the issue of timeliness. This hearing can be held at the same time as
a hearing on the merits of the appeal. 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,
2024, 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,
2025, 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) Sections 1, 4, 5, 6, and 36 are
effective July 1, 2022.
(b) Section 15 is effective July 1,
2023.
(c) Section 34 is effective December 1,
2023.
(d) Sections 2, 3, 16 to 19, 21, 23 to
25, 28 to 31, and 33 are effective January 1, 2024.
(e) Sections 7 to 14, 20, 22, 26 to 27,
32, 35, and 37 are effective January 1, 2025.
ARTICLE 4
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 2021 Supplement, section 256P.01, subdivision 3, is amended to read:
Subd. 3. Earned income. "Earned income" means 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, royalties, honoraria, or other profit from activity that results from the client's work, effort, or labor for purposes other than student financial assistance, rehabilitation programs, student training programs, or service programs such as AmeriCorps. The income must be in return for, or as a result of, legal activity.
Sec. 5. EFFECTIVE
DATES.
Sections 1 to 4 are effective January 1,
2025.
ARTICLE 5
LABOR AND INDUSTRY APPROPRIATIONS
Section 1. APPROPRIATIONS. |
The sums shown in the columns under
"Appropriations" are added to the appropriations in Laws 2021, First
Special Session chapter 10, or other law to the specified agencies. 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.
Appropriations for the fiscal year ending June 30, 2022, are effective
the day following final enactment.
|
|
|
APPROPRIATIONS |
|
|
|
|
Available for the Year |
|
|
|
|
Ending June 30 |
|
|
|
|
2022 |
2023 |
Sec. 2. DEPARTMENT OF LABOR AND INDUSTRY |
|
|
|
Subdivision
1. Total Appropriation |
|
$-0- |
|
$10,332,000 |
Appropriations
by Fund |
||
|
2022 |
2023
|
General |
-0-
|
7,117,000
|
Workers' Compensation |
-0-
|
82,000
|
Workforce Development |
-0-
|
3,133,000
|
Subd. 2. Labor
Standards and Apprenticeship |
|
-0-
|
|
5,996,000
|
Appropriations
by Fund |
||
|
2022 |
2023 |
General Fund |
-0-
|
2,863,000
|
Workforce Development |
-0-
|
3,133,000
|
(a) $1,059,000 in fiscal year 2023 is from
the workforce development fund for labor education and advancement program
grants under Minnesota Statutes, section 178.11, to expand and promote
registered apprenticeship training for people of color, Indigenous people, and
women. Of this amount:
(1) $159,000 is available for program
administration; and
(2) at least $500,000 must be awarded to
community-based organizations.
(b) $316,000 is from the workforce
development fund for administration of the apprenticeship program under
Minnesota Statutes, chapter 178.
(c) $1,758,000 in fiscal year 2023 is from
the workforce development fund for prevailing wage education and compliance.
(d) $196,000 in fiscal year 2023 is to
expand and strengthen fair labor standards for agricultural and food processing
workers. In fiscal year 2024 and beyond,
the base is $146,000.
(e) $500,000 in fiscal year
2023 is for the loggers safety grant program under Laws 2021, First Special
Session chapter 10, article 3, section 21.
This is a onetime appropriation.
(f) $200,000 in fiscal year 2023 is to
establish a Veterans Liaison Coordinator position in the Registered
Apprenticeship Division. The position is
responsible for collaborating with Minnesota stakeholders and state and federal
agencies to: promote and increase
veterans in the trades; support initiatives for veterans seeking a living wage
and sustainable employment; and increase awareness of registered apprenticeship
opportunities in Minnesota. Of this
amount, up to $150,000 is for salary and benefits for the position, and $50,000
is for administrative support services, marketing, and paid communications. The base for this appropriation is $180,000
in fiscal year 2024 and $160,000 in fiscal year 2025.
(g) $1,367,000 in fiscal year 2023 is for
enforcement and other duties regarding earned sick and safe time under
Minnesota Statutes, sections 181.9445 to 181.9448, and chapter 177. In fiscal year 2024, the base for this
appropriation is $2,018,000. In fiscal
year 2025, the base for this appropriation is $1,708,000.
(h) $300,000 in fiscal year 2023 is for
earned sick and safe time grants to community organizations under Minnesota
Statutes, section 177.50, subdivision 4.
In fiscal year 2024, the base for this appropriation is $300,000. In fiscal year 2025, the base for this
appropriation is $0.
(i) $300,000 in fiscal year 2023 is for a
grant to Building Strong Communities, Inc., for a statewide apprenticeship
readiness program to prepare women, BIPOC community members, and veterans to enter
the building and construction trades. This
is a onetime appropriation.
Subd. 3. Workforce
Development Initiatives |
|
-0-
|
|
747,000
|
(a) $500,000 in fiscal year 2023 is for
youth skills training grants under Minnesota Statutes, section 175.46.
(b) $247,000 in fiscal year 2023 is for
administration of the youth skills training grants under Minnesota Statutes,
section 175.46. In fiscal year 2024, the
base for this appropriation is $258,000.
In fiscal year 2025, the base for this appropriation is $270,000.
Subd. 4. Combative
Sports |
|
-0-
|
|
150,000
|
Subd. 5. Transfer
to Construction Code Fund |
|
-0-
|
|
2,850,000
|
$2,850,000 in fiscal year 2023 is for
transfer to the construction code fund under
Minnesota Statutes, section 326B.04, subdivision 1. In fiscal year 2024, the base for this
appropriation is $4,477,000. In fiscal year 2025, the base for this
appropriation is $0.
Subd. 6. Agricultural Worker Wellness |
|
-0-
|
|
507,000
|
(a) $255,000 in fiscal year 2023 is for the
ombudsperson for the safety, health, and well-being of agricultural and food
processing workers under Minnesota Statutes, section 179.911.
(b) $252,000 in fiscal year 2023 is for the
agricultural worker wellness committee under Minnesota Statutes, section
179.912.
Subd. 7. Warehouse
Distribution Worker Safety |
|
-0-
|
|
82,000
|
$82,000 in fiscal year 2023 is from the workers'
compensation fund for enforcement and other duties regarding warehouse
distribution workers safety under Minnesota Statutes, section 182.6526. In fiscal year 2024 and beyond, the base is
$56,000 each year.
Sec. 3. WORKERS'
COMPENSATION COURT OF APPEALS |
$-0- |
|
$300,000 |
(a) This appropriation is from the workers'
compensation fund. Of this amount,
$100,000 is for rulemaking. This
appropriation is onetime.
(b) In fiscal years 2024 and 2025, $200,000
is added to the agency's base.
Sec. 4. BUREAU
OF MEDIATION SERVICES |
|
$-0- |
|
$400,000 |
This appropriation is for purposes of the
Public Employment Relations Board under Minnesota Statutes, section 179A.041. In fiscal years 2024 and 2025, the base is
$525,000.
Sec. 5. MINNESOTA
MANAGEMENT AND BUDGET |
$-0- |
|
$54,000 |
(a) $3,000 in fiscal year 2023 is for
printing costs associated with earned sick and safe time. This is a onetime appropriation.
(b) $51,000 in fiscal year 2023 is to
allocate money to executive branch state agencies, boards, and commissions to
offset the cost of earned sick and safe time leave required under Minnesota
Statutes, sections 181.9445 to 181.9448.
The commissioner of management and budget must determine an allocation
of the amount appropriated for each executive branch state agency, board, and
commission. In fiscal year 2024 and
beyond, the base for this appropriation is $102,000.
Sec. 6. HOUSE
OF REPRESENTATIVES |
|
$-0- |
|
$18,000 |
$18,000 in fiscal year 2023 is for
modifying the timecard and human resources systems as necessary to comply with
earned sick and safe time requirements under Minnesota Statutes, sections
181.9445 to 181.9448. This is a onetime
appropriation.
Sec. 7. SUPREME COURT |
|
$-0- |
|
$1,000 |
$1,000 in fiscal year 2023 is for purposes
of earned sick and safe time under Minnesota Statutes, sections 181.9445 to
181.9448. In fiscal year 2024, the base
for this appropriation is $492,000. In
fiscal year 2025, the base for this appropriation is $459,000.
Sec. 8. Laws 2021, First Special Session chapter 10, article 1, section 5, is amended to read:
Sec. 5. BUREAU
OF MEDIATION SERVICES |
|
$2,370,000 |
|
$2,415,000 |
(a) $125,000 each year is for purposes of the Public Employment Relations Board under Minnesota Statutes, section 179A.041. This is a onetime appropriation.
(b) $68,000 each year is for grants to area
labor management committees. Grants may
be awarded for a 12-month period beginning July 1 each year. Any unencumbered balance remaining at the end
of the first year does not cancel but is available for the second year.
(c) (b) $47,000 each year is for
rulemaking, staffing, and other costs associated with peace officer grievance
procedures.
Sec. 9. DUPLICATE
APPROPRIATIONS GIVEN EFFECT ONCE.
If an appropriation in this act is
enacted more than once during the 2022 regular session, the appropriation is to
be given effect only once.
ARTICLE 6
LABOR AND INDUSTRY POLICY AND TECHNICAL
Section 1. Minnesota Statutes 2020, section 175.16, subdivision 1, is amended to read:
Subdivision 1. Established. The Department of Labor and Industry shall consist of the following divisions: Division of Workers' Compensation, Division of Construction Codes and Licensing, Division of Occupational Safety and Health, Division of Statistics, Division of Labor Standards, and Division of Apprenticeship, and such other divisions as the commissioner of the Department of Labor and Industry may deem necessary and establish. Each division of the department and persons in charge thereof shall be subject to the supervision of the commissioner of the Department of Labor and Industry and, in addition to such duties as are or may be imposed on them by statute, shall perform such other duties as may be assigned to them by the commissioner. Notwithstanding any other law to the contrary, the commissioner is the administrator and supervisor of all of the department's dispute resolution functions and personnel and may delegate authority to compensation judges and others to make determinations under sections 176.106, 176.238, and 176.239 and to approve settlement of claims under section 176.521.
Sec. 2. Minnesota Statutes 2020, section 177.26, is amended to read:
177.26
DIVISION OF LABOR STANDARDS.
Subdivision 1. Creation. The Division of Labor Standards and
Apprenticeship in the Department of Labor and Industry is supervised and
controlled by the commissioner of labor and industry.
Subd. 2. Powers
and duties. The Division of Labor
Standards and Apprenticeship shall administer this chapter and chapters 178,
181, 181A, and 184.
Subd. 3. Employees;
transfer from Division of Women and Children. All persons employed by the department
in the Division of Women and Children are transferred to the Division of Labor
Standards. A transferred person does not
lose rights acquired by reason of employment at the time of transfer.
Sec. 3. 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, or 181.991, and 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.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to franchise agreements
entered into or amended on or after that date.
Sec. 4. Minnesota Statutes 2020, section 178.01, is amended to read:
178.01
PURPOSES.
The purposes of this chapter are: to open to all people regardless of race,
sex, creed, color or national origin, the opportunity to obtain training and
on-the-job learning that will equip them for profitable employment and
citizenship; to establish as a means to this end, a program of voluntary
apprenticeship under approved apprenticeship agreements providing facilities
for their training and guidance in the arts, skills, and crafts of industry and
trade or occupation, with concurrent, supplementary instruction in related
subjects; to promote apprenticeship opportunities under conditions providing
adequate training and on-the-job learning and reasonable earnings; to relate
the supply of skilled workers to employment demands; to establish standards for
apprentice training; to establish an Apprenticeship Board and apprenticeship
committees to assist in effectuating the purposes of this chapter; to provide
for a Division of Labor Standards and Apprenticeship within the
Department of Labor and Industry; to provide for reports to the legislature
regarding the status of apprentice training in the state; to establish a
procedure for the determination of apprenticeship agreement controversies; and
to accomplish related ends.
Sec. 5. Minnesota Statutes 2020, section 178.011, subdivision 7, is amended to read:
Subd. 7. Division. "Division" means the
department's Labor Standards and Apprenticeship Division, established
under sections 175.16 and 178.03, and the State Apprenticeship Agency as
defined in Code of Federal Regulations, title 29, part 29, section 29.2.
Sec. 6. Minnesota Statutes 2020, section 178.03, subdivision 1, is amended to read:
Subdivision 1. Establishment
of division. There is established a
Division of Labor Standards and Apprenticeship in the Department of
Labor and Industry. This division shall
be administered by a director, and be under the supervision of the
commissioner.
Sec. 7. Minnesota Statutes 2020, section 178.11, is amended to read:
178.11
LABOR EDUCATION ADVANCEMENT GRANT PROGRAM.
The commissioner shall establish the labor
education advancement grant program for the purpose of facilitating the
participation or retention of minorities people of color,
Indigenous people, and women in apprenticeable trades and occupations
registered apprenticeship programs.
The commissioner shall award grants to community-based and nonprofit
organizations and Minnesota Tribal governments as defined in section 10.65,
serving the targeted populations on a competitive request-for-proposal basis. Interested organizations shall apply for the
grants in a form prescribed by the commissioner. As part of the application process,
applicants must provide a statement of need for the grant, a description of the
targeted population and apprenticeship opportunities, a description of
activities to be funded by the grant, evidence supporting the ability to
deliver services, information related to coordinating grant activities with
other employment and learning programs, identification of matching funds, a
budget, and performance objectives. Each
submitted application shall be evaluated for completeness and effectiveness of
the proposed grant activity.
Sec. 8. Minnesota Statutes 2020, section 181.9435, subdivision 1, is amended to read:
Subdivision 1. Investigation. The Division of Labor Standards and
Apprenticeship shall receive complaints of employees against employers
relating to sections 181.172, paragraph (a) or (d), and 181.939 to 181.9436 and
investigate informally whether an employer may be in violation of sections
181.172, paragraph (a) or (d), and 181.939 to 181.9436. The division shall attempt to resolve
employee complaints by informing employees and employers of the provisions of
the law and directing employers to comply with the law. For complaints related to section 181.939,
the division must contact the employer within two business days and investigate
the complaint within ten days of receipt of the complaint.
Sec. 9. Minnesota Statutes 2020, section 181.9436, is amended to read:
181.9436
POSTING OF LAW.
The Division of Labor Standards and
Apprenticeship shall develop, with the assistance of interested business
and community organizations, an educational poster stating employees' rights
under sections 181.940 to 181.9436. The
department shall make the poster available, upon request, to employers for
posting on the employer's premises.
Sec. 10. [181.988]
COVENANTS NOT TO COMPETE VOID IN EMPLOYMENT AGREEMENTS; SUBSTANTIVE PROTECTIONS
OF MINNESOTA LAW APPLY.
Subdivision 1. Definitions. (a) "Covenant not to
compete" means an agreement between an employee and employer that
restricts the employee, after termination of the employment, from performing:
(1) work for another employer for a
specified period of time;
(2) work in a specified geographical
area; or
(3) work for another employer in a
capacity that is similar to the employee's work for the employer that is party
to the agreement.
(b) "Employer" means any
individual, partnership, association, corporation, business trust, or any
person or group of persons acting directly or indirectly in the interest of an
employer in relation to an employee.
Subd. 2. Covenants
not to compete void and unenforceable.
(a) Subject to the exception in paragraph (b), any covenant not
to compete contained in a contract or agreement is void and unenforceable.
(b) Notwithstanding paragraph (a), a
covenant not to compete between an employer and employee is valid and
enforceable if:
(1) the employee earned an annual salary
from the employer at least equal to the median family income for a four-person
family in Minnesota, as determined by the United States Census Bureau, for the
most recent year available at the time of the employee's termination; and
(2) the employer agrees to pay the
employee on a pro rata basis during the entirety of the restricted period of
the covenant not to compete at least 50 percent of the employee's highest
annualized base salary paid by the employer within the two years preceding the
employee's separation from employment.
(c) Nothing in this subdivision shall be
construed to render void or unenforceable any other provisions in a contract or
agreement containing a void or unenforceable covenant not to compete.
(d) In addition to injunctive relief and
any other remedies available, a court may award an employee who is enforcing
rights under this section reasonable attorney fees.
Subd. 3. Choice
of law; venue. (a) An
employer must not require an employee who primarily resides and works in
Minnesota, as a condition of employment, to agree to a provision in an
agreement or contract that would do either of the following:
(1) require the employee to adjudicate
outside of Minnesota a claim arising in Minnesota; or
(2) deprive the employee of the
substantive protection of Minnesota law with respect to a controversy arising
in Minnesota.
(b) Any provision of a contract or
agreement that violates paragraph (a) is voidable at any time by the employee
and if a provision is rendered void at the request of the employee, the matter
shall be adjudicated in Minnesota and Minnesota law shall govern the dispute.
(c) In addition to injunctive relief and
any other remedies available, a court may award an employee who is enforcing
rights under this section reasonable attorney fees.
(d) For purposes of this section,
adjudication includes litigation and arbitration.
(e) This subdivision shall not apply to
a contract with an employee who is in fact individually represented by legal
counsel in negotiating the terms of an agreement to designate either the venue
or forum in which a controversy arising from the employment contract may be
adjudicated or the choice of law to be applied.
Subd. 4. Severability. If any provision of this section is
found to be unconstitutional and void, the remaining provisions of this section
are valid.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to contracts and
agreements entered into on or after that date.
Sec. 11. [181.991]
RESTRICTIVE FRANCHISE AGREEMENTS PROHIBITED.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given them.
(b) "Employee" means an
individual employed by an employer and includes independent contractors.
(c) "Employer" has
the meaning given in section 177.23, subdivision 6.
(d) "Franchise,"
"franchisee," and "franchisor" have the meanings given in
section 80C.01, subdivisions 4 to 6.
Subd. 2. Prohibition
on restrictive franchise agreements.
(a) No franchisor may restrict, restrain, or prohibit in any way
a franchisee from soliciting or hiring an employee of a franchisee of the same
franchisor.
(b) No franchisor may restrict,
restrain, or prohibit in any way a franchisee from soliciting or hiring an
employee of the franchisor.
Subd. 3. Franchise
agreement amendment. Notwithstanding
any law to the contrary, no later than one year from the effective date of this
section, franchisors shall amend existing franchise agreements to remove any
restrictive employment provision that violates subdivision 2.
Subd. 4. Civil
action; penalties. (a) An
employee alleging a violation of this section may bring a civil action for
damages and injunctive relief against the employer.
(b) If the court finds that a
franchisor has violated this section, the court shall enter judgment, grant
injunctive relief as deemed appropriate, and award the employee plaintiff the
greater of:
(1) the actual damages incurred by the
plaintiff, plus any injunctive relief, costs, and reasonable attorney fees; or
(2) a $5,000 penalty.
(c) If no civil action is commenced,
the commissioner of labor and industry shall assess a $5,000 per employee
penalty for violations of this section. This
assessment is in addition to the commissioner's authority under section 177.27,
subdivisions 4 and 7. Any penalty
assessed under this subdivision shall be awarded to the employee plaintiff and
not to the commissioner or the department.
Subd. 5. Severability. If any provision of this section is
found to be unconstitutional and void, the remaining provisions of this section
are valid.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to franchise agreements
entered into or amended on or after that date.
Sec. 12. Minnesota Statutes 2021 Supplement, section 326B.092, subdivision 7, is amended to read:
Subd. 7. License fees and license renewal fees. (a) The license fee for each license is the base license fee plus any applicable board fee, continuing education fee, and contractor recovery fund fee and additional assessment, as set forth in this subdivision.
(b) For purposes of this section, "license duration" means the number of years for which the license is issued except that if the initial license is not issued for a whole number of years, the license duration shall be rounded up to the next whole number.
(c) If there is a continuing education requirement for renewal of the license, then a continuing education fee must be included in the renewal license fee. The continuing education fee for all license classifications is $5.
(d) The base license fee shall depend on whether the license is classified as an entry level, master, journeyworker, or business license, and on the license duration. The base license fee shall be:
|
License Classification |
License Duration |
|
|
|
1 year |
2 years |
|
Entry level |
$10 |
$20 |
|
Journeyworker |
$20 |
$40 |
|
Master |
$40 |
$80 |
|
Business |
|
$180 |
(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925, then a board fee must be included in the license fee and the renewal license fee. The board fee for all license classifications shall be: $4 if the license duration is one year; and $8 if the license duration is two years.
(f) If the application is for the renewal of a license issued under sections 326B.802 to 326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 3, and any additional assessment required under section 326B.89, subdivision 16, must be included in the license renewal fee.
(g) Notwithstanding the fee amounts
described in paragraphs (d) to (f), for the period October 1, 2021, through September
June 30, 2023 2022, the following fees apply:
|
License Classification |
License Duration |
|
|
|
1 year |
2 years |
|
Entry level |
$10 |
$20 |
|
Journeyworker |
$15 |
$30 |
|
Master |
$30 |
$60 |
|
Business |
|
$120 |
(h) For the period of July 1, 2022,
through June 30, 2024, no fees described in paragraphs (c) to (e) shall apply,
except as described in paragraph (i).
(i) Notwithstanding the fee amounts
described in paragraphs (d) to (f), for the period of October 1, 2021, through
September 30, 2023, the base license fee for business licenses shall be $120.
Sec. 13. Minnesota Statutes 2020, section 326B.103, subdivision 13, is amended to read:
Subd. 13. State
licensed facility. "State
licensed facility" means a building and its grounds that are licensed by
the state as a hospital, nursing home, supervised living facility,
free-standing outpatient surgical center, correctional facility, boarding care
home, or residential hospice, or assisted living facility, including
assisted living facility with dementia care.
Sec. 14. Minnesota Statutes 2020, section 326B.106, subdivision 1, is amended to read:
Subdivision 1. Adoption of code. (a) Subject to paragraphs (c) and (d) and sections 326B.101 to 326B.194, the commissioner shall by rule and in consultation with the Construction Codes Advisory Council establish a code of standards for the construction, reconstruction, alteration, and repair of buildings, governing matters of structural materials, design and construction, fire protection, health, sanitation, and safety, including design and construction
standards regarding heat loss control, illumination, and climate control. The code must also include duties and responsibilities for code administration, including procedures for administrative action, penalties, and suspension and revocation of certification. The code must conform insofar as practicable to model building codes generally accepted and in use throughout the United States, including a code for building conservation. In the preparation of the code, consideration must be given to the existing statewide specialty codes presently in use in the state. Model codes with necessary modifications and statewide specialty codes may be adopted by reference. The code must be based on the application of scientific principles, approved tests, and professional judgment. To the extent possible, the code must be adopted in terms of desired results instead of the means of achieving those results, avoiding wherever possible the incorporation of specifications of particular methods or materials. To that end the code must encourage the use of new methods and new materials. Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall administer and enforce the provisions of those sections.
(b) The commissioner shall develop rules addressing the plan review fee assessed to similar buildings without significant modifications including provisions for use of building systems as specified in the industrial/modular program specified in section 326B.194. Additional plan review fees associated with similar plans must be based on costs commensurate with the direct and indirect costs of the service.
(c) Beginning with the 2018 edition of the model building codes and every six years thereafter, the commissioner shall review the new model building codes and adopt the model codes as amended for use in Minnesota, within two years of the published edition date. The commissioner may adopt amendments to the building codes prior to the adoption of the new building codes to advance construction methods, technology, or materials, or, where necessary to protect the health, safety, and welfare of the public, or to improve the efficiency or the use of a building.
(d) Notwithstanding paragraph (c), the commissioner shall act on each new model residential energy code and the new model commercial energy code in accordance with federal law for which the United States Department of Energy has issued an affirmative determination in compliance with United States Code, title 42, section 6833. The commissioner shall act on the new model commercial energy code by adopting each new published edition and amending it as necessary to achieve a minimum of eight percent energy efficiency. The commissioner may adopt amendments prior to adoption of the new energy codes, as amended for use in Minnesota, to advance construction methods, technology, or materials, or, where necessary to protect the health, safety, and welfare of the public, or to improve the efficiency or use of a building.
Sec. 15. Minnesota Statutes 2020, section 326B.106, subdivision 4, is amended to read:
Subd. 4. Special requirements. (a) Space for commuter vans. The code must require that any parking ramp or other parking facility constructed in accordance with the code include an appropriate number of spaces suitable for the parking of motor vehicles having a capacity of seven to 16 persons and which are principally used to provide prearranged commuter transportation of employees to or from their place of employment or to or from a transit stop authorized by a local transit authority.
(b) Smoke detection devices. The code must require that all dwellings, lodging houses, apartment houses, and hotels as defined in section 299F.362 comply with the provisions of section 299F.362.
(c) Doors in nursing homes and hospitals. The State Building Code may not require that each door entering a sleeping or patient's room from a corridor in a nursing home or hospital with an approved complete standard automatic fire extinguishing system be constructed or maintained as self-closing or automatically closing.
(d) Child care facilities in churches; ground level exit. A licensed day care center serving fewer than 30 preschool age persons and which is located in a belowground space in a church building is exempt from the State Building Code requirement for a ground level exit when the center has more than two stairways to the ground level and its exit.
(e) Family and group family day care. Until the legislature enacts legislation specifying appropriate standards, the definition of dwellings constructed in accordance with the International Residential Code as adopted as part of the State Building Code applies to family and group family day care homes licensed by the Department of Human Services under Minnesota Rules, chapter 9502.
(f) Enclosed stairways. No provision of the code or any appendix chapter of the code may require stairways of existing multiple dwelling buildings of two stories or less to be enclosed.