House Journal 61st Day Tuesday May 2 2023

The bill was passed and its title agreed to.

Reyer was excused between the hours of 12:45 p.m. and 2:15 p.m.

H. F. No. 2 was reported to the House.

Richardson moved to amend H. F. No. 2, the seventh engrossment, as follows:

Page 13, delete subdivision 15 and insert:

"Subd. 15. 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) For the purposes of this chapter, covered employment means an employee's entire employment during a calendar quarter if:

(1) 50 percent or more of the employment during the calendar quarter is performed in Minnesota;

(2) 50 percent or more of the employment during the calendar quarter is not performed in Minnesota or any other state, or Canada, but some of the employment is performed in Minnesota and the employee's residence is in Minnesota during 50 percent or more of the calendar quarter; or

(3) 50 percent or more of the employment during the calendar quarter is not performed in Minnesota or any other state, or Canada, but the place from where the employee's employment is controlled and directed is based in Minnesota."

Page 15, delete subdivision 24 and insert:

"Subd. 24. Family member. (a) "Family member" means, with respect to an applicant:

(1) a spouse or domestic partner;

(2) a child, including a biological, adopted, or foster child, a stepchild, or a child to whom the applicant stands in loco parentis, is a legal guardian, or is a de facto parent;

(3) a parent or legal guardian of the applicant;

(4) a sibling;

(5) a grandchild;

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(6) a grandparent or spouse's grandparent;

(7) a son-in-law or daughter-in-law; and

(8) an individual who has a relationship with the applicant that creates an expectation and reliance that the applicant care for the individual, whether or not the applicant and the individual reside together.

(b) For the purposes of this chapter, "grandchild" means a child of the applicant's child.

(d) For the purposes of this chapter, "parent" means the biological, adoptive, de facto, or foster parent, stepparent, or legal guardian of an applicant or the applicant's spouse, or an individual who stood in loco parentis to an applicant when the applicant was a child."

Page 69, lines 19 and 25, delete "or approved"

Page 70, line 11, delete "or approved"

Page 70, after line 25, insert:

"(f) The department shall prepare a uniform employee notice form for employers to use that provides the notice information required under this section. The commissioner shall prepare the uniform employee notice in the five most common languages spoken in Minnesota. Upon the written request of an employer who is subject to this section, the commissioner shall provide a copy of the uniform employee notice in any primary language spoken by an employee in the employer's place of business. If the commissioner does not provide the copy of the uniform employee notice in response to a request under this paragraph, the employer who makes the request is not subject to a penalty for failing to provide the required notice under this section for violations that arise after the date of the request. The commissioner shall pay for any costs associated with preparing the uniform employee notice form or providing additional copies under this paragraph."

Page 71, line 13, delete "or"

Page 71, after line 13, insert:

"(4) alter or amend the duty of parties to a collective bargaining agreement to meet and negotiate or bargain collectively about the terms and conditions of employment, including the amount or percentage of an employee charge back, pursuant to chapter 179A, and United States Code, title 29, section 158(a)(5) and (b)(3). Nothing in this chapter requires parties to a collective bargaining agreement to:

(i) renegotiate an existing collective bargaining agreement;

(ii) delay collective bargaining or negotiation about the amount or percentage of an employee charge back until an existing collective bargaining agreement expires; or

(iii) bargain collectively or negotiate for a new employee charge back provision each time annual premium rates are changed under this chapter; or"

Page 71, line 14, delete "(4)" and insert "(5)"

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Richardson moved to amend the Richardson amendment to H. F. No. 2, the seventh engrossment, as follows:

Page 1, after line 17, insert:

"(c) "Covered employment" does not include:

(1) a self-employed individual; or

(2) an independent contractor."

The motion prevailed and the amendment to the amendment was adopted.

The question recurred on the Richardson amendment, as amended, to H. F. No. 2, the seventh engrossment. The motion prevailed and the amendment, as amended, was adopted.

Richardson moved to amend H. F. No. 2, the seventh engrossment, as amended, as follows:

Page 27, delete subdivision 5 and insert:

"Subd. 5. Maximum length of benefits. (a) Except as provided in paragraph (b), in a single benefit year, an applicant may receive benefits under this chapter as follows:

(1) for an applicant's serious health condition or pregnancy, up to 12 weeks of benefits; or

(2) for bonding, safety leave, family care, or leave related to a qualifying exigency, up to 12 weeks of benefits; and

(3) if an applicant is eligible for benefits under clauses (1) and (2) in the same benefit year, up to an additional six weeks of benefits; provided that, the maximum length of benefits an applicant may receive in a single benefit year under this chapter shall not exceed 18 weeks total, unless paragraph (b) applies.

(b) In addition to the benefits received under paragraph (a), an applicant may receive up to an additional six weeks of benefits for leave related to pregnancy recovery or complications; provided that, the maximum length of benefits an applicant may receive in a single benefit year under this chapter shall not exceed 24 weeks total."

The motion prevailed and the amendment was adopted.

Niska moved to amend H. F. No. 2, the seventh engrossment, as amended, as follows:

Page 61, after line 7, insert:

"(e) In any case where the commissioner or the department has probable cause that any applicant, employer, or other person has fraudulently obtained benefits, the commissioner or the department must report the matter to the county attorney of jurisdiction for prosecution."

The motion prevailed and the amendment was adopted.

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Baker moved to amend H. F. No. 2, the seventh engrossment, as amended, as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2022, section 60A.06, subdivision 1, is amended to read:

Subdivision 1. Statutory lines. Insurance corporations may be authorized to transact in any state or territory in the United States, in the Dominion of Canada, and in foreign countries, when specified in their charters or certificates of incorporation, either as originally granted or as thereafter amended, any of the following kinds of business, upon the stock plan, or upon the mutual plan when the formation of such mutual companies is otherwise authorized by law; and business trusts as authorized by law of this state shall only be authorized to transact in this state the following kind of business hereinafter specified in clause (7) hereof when specified in their "declaration of trust":

(1) To insure against loss or damage to property on land and against loss of rents and rental values, leaseholds of buildings, use and occupancy and direct or consequential loss or damage caused by fire, smoke or smudge, water or other fluid or substance, lightning, windstorm, tornado, cyclone, earthquake, collapse and slippage, rain, hail, frost, snow, freeze, change of temperature, weather or climatic conditions, excess or deficiency of moisture, floods, the rising of waters, oceans, lakes, rivers or their tributaries, bombardment, invasion, insurrection, riot, civil war or commotion, military or usurped power, electrical power interruption or electrical breakdown from any cause, railroad equipment, motor vehicles or aircraft, accidental injury to sprinklers, pumps, conduits or containers or other apparatus erected for extinguishing fires, explosion, whether fire ensues or not, except explosions on risks specified in clause (3); provided, however, that there may be insured hereunder the following: (a) explosion of any kind originating outside the insured building or outside of the building containing the property insured; (b) explosion of pressure vessels which do not contain steam or which are not operated with steam coils or steam jackets; and (c) risks under home owners multiple peril policies;

(2)(a) To insure vessels, freight, goods, wares, merchandise, specie, bullion, jewels, profits, commissions, bank notes, bills of exchange, and other evidences of debt, bottomry and respondentia interest, and every insurance appertaining to or connected with risks of transportation and navigation on and under water, on land or in the air;

(b) To insure all personal property floater risks;

(3) To insure against any loss from either direct or indirect damage to any property or interest of the assured or of another, resulting from the explosion of or injury to (a) any boiler, heater or other fired pressure vessel; (b) any unfired pressure vessel; (c) pipes or containers connected with any of said boilers or vessels; (d) any engine, turbine, compressor, pump or wheel; (e) any apparatus generating, transmitting or using electricity; (f) any other machinery or apparatus connected with or operated by any of the previously named boilers, vessels or machines; and including the incidental power to make inspections of and to issue certificates of inspection upon, any such boilers, apparatus, and machinery, whether insured or otherwise;

(4) To make contracts of life and endowment insurance, to grant, purchase, or dispose of annuities or endowments of any kind; and, in such contracts, or in contracts supplemental thereto to provide for additional benefits in event of death of the insured by accidental means, total permanent disability of the insured, or specific dismemberment or disablement suffered by the insured, or acceleration of life or endowment or annuity benefits in advance of the time they would otherwise be payable;

(5)(a) To insure against loss or damage by the sickness, bodily injury or death by accident of the assured or dependents, or those for whom the assured has assumed a portion of the liability for the loss or damage, including liability for payment of medical care costs or for provision of medical care;

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(b) To insure against the legal liability, whether imposed by common law or by statute or assumed by contract, of employers for the death or disablement of, or injury to, employees;

(6) To guarantee the fidelity of persons in fiduciary positions, public or private, or to act as surety on official and other bonds, and for the performance of official or other obligations;

(7) To insure owners and others interested in real or personal property as described in section 68A.04;

(8) To insure against loss or damage by breakage of glass, located or in transit;

(9)(a) To insure against loss by burglary, theft, or forgery;

(b) To insure against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptance or any other valuable paper or document, resulting from any cause, except while in the custody or possession of and being transported by any carrier for hire or in the mail;

(c) To insure individuals by means of an all risk type of policy commonly known as the "personal property floater" against any kind and all kinds of loss of or damage to, or loss of use of, any personal property other than merchandise;

(d) To insure against loss or damage by water or other fluid or substance;

(10) To insure against loss from death of domestic animals and to furnish veterinary service;

(11) To guarantee merchants and those engaged in business, and giving credit, from loss by reason of giving credit to those dealing with them; this shall be known as credit insurance;

(12) To insure against loss or damage to automobiles or other vehicles or aircraft and their contents, by collision, fire, burglary, or theft, and other perils of operation, and against liability for damage to persons, or property of others, by collision with such vehicles or aircraft, and to insure against any loss or hazard incident to the ownership, operation, or use of motor or other vehicles or aircraft;

(13) To insure against liability for loss or damage to the property or person of another caused by the insured or by those for whom the insured is responsible, including insurance of medical, hospital, surgical, funeral or other related expense of the insured or other person injured, irrespective of legal liability of the insured, when issued with or supplemental to policies of liability insurance;

(14) To insure against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire;

(15) To insure against attorneys fees, court costs, witness fees and incidental expenses incurred in connection with the use of the professional services of attorneys at law.;

(16) To insure against loss of wages due to family and medical leave events as defined in section 268B.02, subdivision 8.

Sec. 2. [268B.01] PURPOSE; CITATION.

(a) The purpose of this chapter is to increase access and options for paid family and medical leave in Minnesota by establishing a voluntary, cost-effective, and comprehensive Family and Medical Leave Insurance plan (MN FaMLI) made available to all private and public employers and employees in the same manner as currently afforded to state of Minnesota employees.

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(b) MN FaMLI will leverage the purchasing power and economies of scale available to the state when it is acting as purchaser on behalf of state employees and will align this purchasing initiative with a MN FaMLI tax incentive in order to make MN FaMLI available throughout the state.

(c) By purchasing MN FaMLI coverage for state employees through the medium of commercial insurance, by linking that contract with a contract to make the same coverage available statewide, by acting as a premium aggregator for individuals whose employers do not sponsor such coverage, and by introducing a new MN FaMLI tax incentive, the state will position itself to create a market for advantageously priced MN FaMLI benefits.

(d) It is the intent of this chapter to significantly increase the number of employees in the state who receive MN FaMLI wage replacement benefits. While many larger employers provide paid MN FaMLI benefits through self‑insurance, this is not feasible for most mid-sized and smaller businesses. The legislature therefore finds that it is in the public interest for the state to strategically use its purchasing power and tax expenditure authority to establish a marketplace in the state for advantageously priced MN FaMLI wage replacement benefits.

(e) Sections 268B.01 to 268B.09 may be cited as the MN FaMLI Act.

Sec. 3. [268B.02] DEFINITIONS.

Subdivision 1. Definitions. For the purposes of chapter 268B, the following terms have the meanings given in this section.

Subd. 2. Child. "Child" has the same meaning as son or daughter under United States Code, title 29, section 2611(12).

Subd. 3. Commissioner. "Commissioner" means the commissioner of employment and economic development.

Subd. 4. Department. "Department" means the Department of Employment and Economic Development.

Subd. 5. Employee. "Employee" means any individual who is performing or has performed services for an employer in employment.

Subd. 6. Employer. "Employer" means an employer with a physical location in Minnesota.

Subd. 7. Employment. "Employment" means an employee performing services for hire for an employer.

Subd. 8. Family and medical leave. "Family and medical leave" means leave from employment due to:

(1) the birth of a child of the employee, within the past 12 months;

(2) the placement of a child with the employee for adoption or fostering within the past 12 months;

(3) a serious health condition of the employee that isn't related to employment and for which their employer does not offer short-term disability insurance;

(4) a serious health condition of a family member; or

(5) any qualifying exigency arising from foreign deployment with the armed forces, or to care for a service member with a serious injury or illness as permitted under the federal Family and Medical Leave Act, United States Code, title 29, section 2612(a)(1)(E) and Code of Federal Regulations, title 29, section 825.126(a)(1) to (8), as they existed on October 19, 2017, for family members as defined in subdivision 10.

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Subd. 9. Family and Medical Leave Act or FMLA. "Family and Medical Leave Act" or "FMLA" means the federal Family and Medical Leave Act of 1993, Public Law 103-3, United States Code, title 29, section 2601, et seq.

Subd. 10. Family member. "Family member" means a child; a biological, adoptive, or foster parent, stepparent, legal guardian of the child or employee, or an individual who stood in loco parentis to the child or the employee; the child's spouse or domestic partner; a biological, adoptive, or foster grandparent or stepgrandparent; or a spouse or domestic partner.

Subd. 11. Individual pool. "Individual pool" means a pooled purchasing mechanism for the purpose of providing individual employees of employers who do not sponsor qualifying MN FaMLI coverage the option to purchase such coverage on an individual basis.

Subd. 12. MN FaMLI. "MN FaMLI" means the Family and Medical Leave Insurance Plan under chapter 268B, providing wage replacement benefits under specified conditions.

Subd. 13. Serious health condition. "Serious health condition" means any illness of an employee or a family member covered by the Family and Medical Leave Act, including treatment for addiction as prescribed by a treating clinician, consistent with American Society of Addiction Medicine criteria, as well as treatment for a mental health condition, consistent with American Psychiatric Association criteria.

Subd. 14. State rate. "State rate" means the per employee premium amount that is charged by the successful bidder for the state contract for MN FaMLI coverage for state government. The state rate shall be expressed as a percentage of wages.

Sec. 4. [268B.03] MN FAMLI PROGRAM.

Subdivision 1. Request for proposals and contracts. The commissioner shall solicit information about, seek proposals for, negotiate, enter into, and administer group insurance contracts with duly authorized accident and life insurance carriers as necessary and appropriate to provide to qualifying state employees, at state expense and at no cost to such employees, a MN FaMLI plan of wage replacement as described in this section. The provision of this coverage shall begin no later than January 1, 2024, and shall be considered a matter of legislatively established public policy that is designed to benefit all employers and employees in the state.

Subd. 2. State employees. The state shall provide to all permanent state employees wage replacement coverage for family and medical leave. Nothing in this section shall be construed to invalidate any portion of a collective bargaining agreement or compensation plan entered into by the state.

Subd. 3. Wage replacement and duration of benefits. (a) The wage replacement benefits under this MN FaMLI plan shall be structured as follows.

(1) Eligible employees shall receive 67 percent of their average weekly wage, as determined under subdivision 5, clause (5).

(2) Wages used to determine the 67 percent MN FaMLI coverage shall be capped at the FICA Old-Age, Survivors, and Disability Insurance taxable wage maximum, as amended from time to time.

(b) The maximum duration of wage replacement shall be 12 weeks per year, with no minimum duration required. MN FaMLI leave shall run concurrently with FMLA when a worker is eligible under both programs.

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(c) An employee is not eligible for wage replacement for any period under which the employee is being compensated for the same event through employer-provided paid leave, a short-term disability insurance, or workers' compensation benefits.

Subd. 4. Private employers and nonstate public employers. The commissioner shall include in the request for proposals for MN FaMLI benefits for state employees a requirement that the winning bidder shall, as a condition of the state contract, also offer the same MN FaMLI coverage to nonstate employers on the following terms:

(1) private and public nonstate employers shall receive a rate that is derived from the state rate through the application of rating factors that are actuarially justified and specified in the bid response;

(2) employers with more than 50 employees who choose to sponsor coverage for their employees shall contract directly with the winning bidder; and

(3) employers with fewer than 50 employees who wish to purchase MN FaMLI coverage shall have the opportunity to purchase such coverage by making premium remittances into a MN FaMLI premium fund administered by the department in a manner prescribed by the commissioner.

Subd. 5. Additional requirements. The commissioner shall establish, through the request for information and the request for proposals process, the following additional elements of the benefit structure and plan administration in a form and manner consistent with the purposes and policy of this section:

(1) the minimum participation requirement for nonstate employers;

(2) the parameters for individual pool open enrollment periods;

(3) procedures for contributory plans, partially contributory plans, and noncontributory plans;

(4) procedures for payroll deduction and premium remittance for employers with more than 50 employees;

(5) the base period by which the average weekly wage shall be determined;

(6) unless otherwise specified, a minimum period of employment prior to the use of benefits or wage replacement; and

(7) unless otherwise specified, a waiting period or elimination period; provided, however, that a waiting or elimination period shall not be a required element of the benefit structure, and the commissioner shall have authority to implement a plan with no such requirement.

Subd. 6. Plan to be voluntary. Participation in the plan by nonstate employers and individuals shall be voluntary. In addition, nonstate employers may choose to provide MN FaMLI at no cost to their employees or on a contributory or partially contributory basis.

Subd. 7. Evaluation. The commissioners of employment and economic development and commerce shall jointly evaluate the proposals received in response to the request for proposals. The department shall contract with an insurance carrier or carriers authorized under section 60A.06, subdivision 1, clause (16), to provide MN FaMLI coverage. The selected insurance carrier shall be licensed by the state of Minnesota and in good standing. The selected insurance carrier shall be subject to all applicable insurance laws and regulations of the state of Minnesota, and the rates and forms for the MN FaMLI contracts shall be filed for approval with the insurance commissioner.

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Sec. 5. [268B.05] INDIVIDUAL POOL.

(a) No later than January 1, 2024, an individual who works for an employer who chooses not to offer MN FaMLI coverage under section 268B.03, fails to meet minimum participation requirements, or does not offer a MN FaMLI benefit that is at least equivalent to that required under this chapter, shall have the opportunity to contract indirectly with the winning bidder through the individual pool for family and medical leave insurance administered by the department. Coverage through the pool shall include a six-month waiting period, a one-week elimination period, and a 60-day annual open enrollment period as established by the commissioner in the procurement process. Premiums for individual pool coverage shall not exceed $5 per subscriber per week.

(b) Individuals opting into the individual pool shall make their premium remittances by payroll deduction.

(c) The department shall develop and implement an outreach program to ensure that individuals eligible for MN FaMLI benefits under this chapter are made aware of these benefits. Outreach information shall explain, in an easily understood format, the eligibility requirements, benefit structure, and process to access and enroll in MN FaMLI coverage.

Sec. 6. [268B.06] MN FAMLI PREMIUM FUND.

Subdivision 1. Fund established. There is established a MN FaMLI premium fund for deposits of insurance premium payments paid pursuant to section 268B.05, and for remittance of such premiums to the MN FaMLI carrier or carriers offering MN FaMLI plans. The department shall develop standard enrollment procedures in coordination with participating carriers and shall transmit enrollment and eligibility information to such carriers on a timely basis. The department shall establish procedures and mechanisms for the billing and collection of premiums from employers. The department shall specify in contracts with participating carriers how all premiums shall be transmitted and the frequency of that transmission and how penalties and grace periods on late payments of premiums shall be calculated. The department may contract with qualified, independent vendors for the services necessary to carry out some or all of the duties under this subdivision.

Subd. 2. MN FaMLI premium stabilization fund. (a) There is established the MN FaMLI premium stabilization fund which shall be held and accounted for separately from all other funds. Interest, dividends, and other earnings of the fund shall be added to the fund. The moneys in the fund shall not be subject to any state taxes and shall not be subject to any federal taxes to the extent allowed by applicable federal law.

(b) The moneys in the fund shall constitute a premium stabilization reserve and shall be used exclusively to ensure that the premiums charged to participants in the individual pool remain stable from year to year and do not exceed a weekly amount to be determined by the commissioner. The fund shall be administered by the commissioner. The department is authorized to contract with qualified, independent vendors for the services necessary to carry out some or all duties under this subdivision.

Sec. 7. [268B.07] REPORT TO LEGISLATURE.

The commissioner shall produce an annual summary report on the MN FaMLI program. The report shall be made public and delivered to the governor, the president of the senate, and the speaker of the house of representatives. At a minimum, it shall include a description of progress in implementing MN FaMLI coverage under this chapter, payments into and out of the fund, the number of employees in the state participating in the purchasing mechanism, and any recommendations for improvement and to further increase the rate of MN FaMLI coverage for eligible employees.

Sec. 8. [268B.08] MN FAMLI ADVISORY BOARD.

Subdivision 1. Board established. There is hereby established the Family and Medical Leave Insurance Advisory Board, which shall be called the MN FaMLI Advisory Board.

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Subd. 2. Membership. (a) The MN FaMLI Advisory Board shall consist of 11 members to be appointed, with the exception of the legislative members, by the governor, as follows:

(1) three persons who, because of their vocations, employment, or affiliations, shall represent employers;

(2) three persons who, because of their vocations, employment, or affiliations, shall represent employees;

(3) one senator appointed by the president of the senate;

(4) one senator appointed by the senate minority leader;

(5) one representative appointed by the speaker of the house of representatives;

(6) one representative appointed by the minority leader of the house of representatives; and

(7) one remaining person to be appointed as the chair, who, because of their vocations, employment, or affiliations, has training and experience to successfully resolve the problems of MN FaMLI procurement, eligibility, benefit design, and program administration.

(b) Appointments under this subdivision must be made no later than September 1, 2023.

Subd. 3. Duties. The MN FaMLI Advisory Board is responsible for assisting the commissioner in formulating policies and discussing problems related to the implementation and administration of MN FaMLI and helping to assure impartiality and freedom from political influence in the solution of such problems.

Subd. 4. Quorum. A majority of the board members constitutes a quorum. If there is a vacancy in the membership of the MN FaMLI Advisory Board, a majority of the remaining members of the board constitutes a quorum.

Subd. 5. Meetings. The first meeting of the MN FaMLI Advisory Board shall occur no later than September 30, 2023. Subsequent meetings shall occur at least once per calendar quarter. MN FaMLI Advisory Board meetings are subject to chapter 13D, shall be open to the public, and shall provide the opportunity for public comment.

Subd. 6. Terms. The membership terms, compensation, removal of members, and filling of vacancies on the MN FaMLI Advisory Board are governed by section 15.0575.

Subd. 7. Administrative support. The commissioner shall provide administrative support and meeting space for the MN FaMLI Advisory Board.

Sec. 9. [268B.09] RULEMAKING.

The commissioner may adopt rules as deemed necessary to implement the provisions of this chapter. For the purposes of this chapter, the commissioner may use the expedited rulemaking process under section 14.389.

Sec. 10. [290.0687] TAX CREDIT FOR MN FAMLI COVERAGE.

Subdivision 1. Definitions. For the purposes of this subdivision, the following terms have the meanings given.

(a) "Employee," "employer," and "MN FaMLI" have the meanings given in section 268B.02.

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(b) "Small employer" means an employer with fewer than 50 employees.

(c) "Tax imposed under this chapter" means the taxes imposed under sections 290.06, 290.091, and 290.0921, but excludes the fee under section 290.0922.

Subd. 2. Small employer tax credit. An employer is allowed a credit against the taxes imposed under this chapter for a taxable year equal to the lesser of:

(1) $3,000; or

(2) 50 percent of the MN FaMLI premium paid by the employer for each qualifying employee in a taxable year under chapter 268B.

Subd. 3. Carryover; refund; appropriation. (a) If the credit allowed under subdivision 2 exceeds the tax imposed under this chapter, the excess is a credit carryover to each of the five succeeding taxable years. The entire amount of the excess unused credit must be carried first to the earliest taxable year to which the amount may be carried. The unused portion of the credit must be carried to the following taxable year. No credit may be carried to a taxable year more than five years after the taxable year in which the credit was earned.

(b) If the credit allowed under subdivision 3 exceeds the liability for tax imposed under this chapter, the commissioner shall pay the excess as a refund to the eligible employee.

(c) An amount sufficient to pay the refunds required by this paragraph is appropriated from the general fund to the commissioner.

Sec. 11. APPROPRIATION.

$334,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of employment and economic development for the purposes of chapter 268B, including the costs for start-up, necessary and reasonable outreach and education to employers and employees about MN FaMLI, and employer tax credits.

Sec. 12. EFFECTIVE DATE.

Sections 1 to 9 are effective January 1, 2024. Section 10 is effective for taxable years beginning after December 31, 2023, and applies to MN FaMLI premiums paid under Minnesota Statutes, chapter 268B, beginning on or after January 1, 2024."

Amend the title accordingly

A roll call was requested and properly seconded.

Cha was excused between the hours of 1:35 p.m. and 7:30 p.m.

The question was taken on the Baker amendment and the roll was called. There were 64 yeas and 68 nays as follows:

Those who voted in the affirmative were:

Acomb

Agbaje

Altendorf

Anderson, P. E.

Anderson, P. H.

Backer

Bahner

Bakeberg

Baker

Becker-Finn

Bennett

Berg

Bierman

Bliss

Brand

Burkel

Carroll

Clardy

Coulter

Curran

Daniels

Daudt

Davids

Davis

Demuth

Dotseth

Edelson

Elkins

Engen

Feist

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Finke

Fischer

Fogelman

Franson

Frazier

Frederick

Freiberg

Garofalo

Gillman

Gomez

Greenman

Grossell

Hansen, R.

Hanson, J.

Harder

Hassan

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Hudella

Hudson

Huot

Hussein

Igo

Jacob

Johnson

Jordan

Keeler

Kiel

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Koznick

Kraft

Kresha

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

McDonald

Mekeland

Moller

Mueller

Murphy

Myers

Nadeau

Nash

Nelson, M.

Nelson, N.

Neu Brindley

Newton

Niska

Noor

Norris

Novotny

O'Driscoll

Olson, B.

Olson, L.

O'Neill

Pelowski

Pérez-Vega

Perryman

Petersburg

Pfarr

Pinto

Pryor

Pursell

Quam

Rehm

Reyer

Richardson

Robbins

Schomacker

Schultz

Scott

Sencer-Mura

Skraba

Smith

Stephenson

Swedzinski

Tabke

Torkelson

Urdahl

Vang

West

Wiener

Wiens

Witte

Wolgamott

Xiong

Youakim

Zeleznikar

Spk. Hortman

The bill was passed, as amended, and its title agreed to.

Long moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

There being no objection, the order of business reverted to Messages from the Senate.

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MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 463, A bill for an act relating to capital investment; appropriating money for the Rural Finance Authority; authorizing the sale and issuance of state bonds.

Thomas S. Bottern, Secretary of the Senate

Madam Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 100, A bill for an act relating to cannabis; establishing the Office of Cannabis Management; establishing advisory councils; requiring reports relating to cannabis use and sales; legalizing and limiting the possession and use of cannabis and certain hemp products by adults; providing for the licensing, inspection, and regulation of cannabis businesses and hemp businesses; requiring testing of cannabis flower, cannabis products, and certain hemp products; requiring labeling of cannabis flower, cannabis products, and certain hemp products; limiting the advertisement of cannabis flower, cannabis products, and cannabis businesses, and hemp businesses; providing for the cultivation of cannabis in private residences; transferring regulatory authority for the medical cannabis program; taxing the sale of cannabis flower, cannabis products, and certain hemp products; establishing grant and loan programs; clarifying the prohibition on operating a motor vehicle while under the influence of certain products and chemicals; amending criminal penalties; establishing expungement procedures for certain individuals; requiring reports on expungements; providing for expungement of certain evictions; clarifying the rights of landlords and tenants regarding use of certain forms of cannabis; establishing labor standards for the use of cannabis flower, cannabis products, and certain hemp products by employees and testing of employees; providing for the temporary regulation of certain edible cannabinoid products; providing for professional licensing protections; providing for local registration of certain cannabis businesses and hemp businesses operating retail establishments; amending the scheduling of marijuana and tetrahydrocannabinols; classifying data; making miscellaneous cannabis-related changes and additions; making clarifying and technical changes; appropriating money; amending Minnesota Statutes 2022, sections 13.411, by adding a subdivision; 13.871, by adding a subdivision; 34A.01, subdivision 4; 144.99, subdivision 1; 144A.4791, subdivision 14; 151.72; 152.01, by adding subdivisions; 152.02, subdivisions 2, 4; 152.021, subdivisions 1, 2; 152.022, subdivisions 1, 2; 152.023, subdivisions 1, 2; 152.024, subdivision 1; 152.025, subdivisions 1, 2; 152.11, subdivision 2; 152.22, by adding subdivisions; 152.29, subdivision 4, by adding a subdivision; 152.30; 152.32; 152.33, subdivision 1; 169A.03, by adding subdivisions; 169A.20, subdivision 1; 169A.31, subdivision 1; 169A.51, subdivisions 1, 4; 169A.72; 175.45, subdivision 1; 181.938, subdivision 2; 181.950, subdivisions 2, 4, 5, 8, 13, by adding a subdivision; 181.951, subdivisions 4, 5, 6, by adding subdivisions; 181.952, by adding a subdivision; 181.953; 181.954; 181.955; 181.957, subdivision 1; 244.05, subdivision 2; 245C.08, subdivision 1; 256.01, subdivision 18c; 256B.0625, subdivision 13d; 256D.024, subdivisions 1, 3; 256J.26, subdivisions 1, 3; 270B.12, by adding a subdivision; 273.13, subdivision 24; 275.025, subdivision 2; 290.0132, subdivision 29; 290.0134, subdivision 19; 297A.61, subdivision 3; 297A.67, subdivisions 2, 7; 297A.70, subdivisions 2, 4, 18; 297A.85; 297D.01; 297D.04; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; 297D.11; 340A.412, subdivision 14; 484.014, subdivision 3; 504B.171, subdivision 1; 609.2112,

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subdivision 1; 609.2113, subdivisions 1, 2, 3; 609.2114, subdivisions 1, 2; 609.5311, subdivision 1; 609.5314, subdivision 1; 609.5316, subdivision 2; 609A.01; 609A.03, subdivisions 5, 9; 609B.425, subdivision 2; 609B.435, subdivision 2; 624.712, by adding subdivisions; 624.713, subdivision 1; 624.714, subdivision 6; 624.7142, subdivision 1; 624.7151; proposing coding for new law in Minnesota Statutes, chapters 3; 116J; 116L; 120B; 144; 152; 169A; 270C; 289A; 295; 340A; 504B; 609A; 624; proposing coding for new law as Minnesota Statutes, chapter 342; repealing Minnesota Statutes 2022, sections 151.72; 152.027, subdivisions 3, 4; 152.21; 152.22, subdivisions 1, 2, 3, 4, 5, 5a, 5b, 6, 7, 8, 9, 10, 11, 12, 13, 14; 152.23; 152.24; 152.25, subdivisions 1, 1a, 1b, 1c, 2, 3, 4; 152.26; 152.261; 152.27, subdivisions 1, 2, 3, 4, 5, 6, 7; 152.28, subdivisions 1, 2, 3; 152.29, subdivisions 1, 2, 3, 3a, 4; 152.30; 152.31; 152.32, subdivisions 1, 2, 3; 152.33, subdivisions 1, 1a, 2, 3, 4, 5, 6; 152.34; 152.35; 152.36, subdivisions 1, 1a, 2, 3, 4, 5; 152.37.

The Senate has appointed as such committee:

Senators Port, Oumou Verbeten, Murphy, Pha, and Rasmusson.

Said House File is herewith returned to the House.

Thomas S. Bottern, Secretary of the Senate

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 1938, A bill for an act relating to financing and operation of state and local government; modifying provisions governing individual income and corporate franchise taxes, federal conformity, property taxes, certain state aid and credit programs, sales and use taxes, minerals taxes, tax increment financing, certain local taxes, provisions related to public finance, and various other taxes and tax-related provisions; modifying income tax credits; modifying existing and proposing new subtractions; modifying provisions related to the taxation of pass-through entities; providing for certain federal tax conformity; modifying individual income tax rates; modifying provisions related to reporting of corporate income; providing a onetime refundable rebate credit; providing for conformity to certain federal tax provisions; modifying property tax exemptions, classifications, and refunds; modifying local government aid calculations; establishing soil and water conservation district aid; providing for certain sales tax exemptions and providing new definitions; modifying taconite taxes and distributions; converting the renter's property tax refund into a refundable individual income tax credit; modifying provisions related to tax increment financing and allowing certain special local provisions; modifying certain local taxes; establishing tourism improvement special taxing districts; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 3.8855, subdivisions 4, 7; 6.495, subdivision 3; 10A.31, subdivisions 1, 3; 13.46, subdivision 2; 41B.0391, subdivisions 1, 2, 4, 7; 116U.27, subdivisions 1, 4, 7; 118A.04, subdivision 5; 123B.61; 168B.07, subdivision 3; 256J.45, subdivision 2; 256L.15, subdivision 1a; 270A.03, subdivision 2; 270B.12, subdivision 8; 270B.14, subdivision 1; 270C.13, subdivision 1; 270C.19, subdivisions 1, 2; 270C.445, subdivisions 2, 3; 270C.446, subdivision 2; 270C.52, subdivision 2; 272.01, subdivision 2; 272.02, subdivisions 24, 73, 98, by adding a subdivision; 273.11, subdivision 12; 273.124, subdivisions 6, 13, 13a, 13c, 13d, 14; 273.1245, subdivision 1; 273.13, subdivisions 25, 34, 35; 273.1315, subdivision 2; 273.1341; 273.1392; 275.065, subdivisions 3, 3b, 4; 278.01, subdivision 1; 279.03, subdivision 1a; 282.261, subdivision 2; 289A.02, subdivision 7, as amended; 289A.08, subdivisions 7, as amended, 7a, as amended, by adding subdivisions; 289A.18, subdivision 5; 289A.38, subdivision 4; 289A.382, subdivision 2; 289A.50, by adding a subdivision; 289A.56, subdivision 6; 289A.60, subdivisions 12, 13, 28; 290.01, subdivisions 19, as amended, 31, as amended; 290.0132, subdivisions 4, 24, 26, 27, by adding subdivisions; 290.0133, subdivision 6; 290.0134, subdivision 18, by adding a subdivision; 290.06, subdivisions 2c, as amended, 2d, 22, 39; 290.067; 290.0671, as amended; 290.0674; 290.0677, subdivision 1;

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290.0682, subdivision 2, by adding a subdivision; 290.0685, subdivision 1, by adding a subdivision; 290.0686; 290.091, subdivision 2, as amended; 290.17, subdivision 4, by adding a subdivision; 290.21, subdivision 9; 290.92, subdivision 20; 290.9705, subdivision 1; 290A.02; 290A.03, subdivisions 3, 6, 8, 12, 13, 15, as amended, by adding a subdivision; 290A.04, subdivisions 1, 2, 2h, 4, 5; 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, as amended; 295.50, subdivision 4; 296A.083, subdivision 3; 297A.61, subdivision 29, by adding subdivisions; 297A.67, subdivisions 2, 7, 9; 297A.68, subdivisions 4, 25; 297A.70, subdivisions 2, 4, 18, 19; 297E.02, subdivision 6; 297E.021, subdivision 4; 297H.13, subdivision 2; 297I.20, subdivision 4; 298.015; 298.018, subdivisions 1, 1a; 298.28, subdivisions 5, 7a, by adding a subdivision; 298.296, subdivision 4; 299C.76, subdivisions 1, 2; 327C.02, subdivision 5; 349.11; 349.12, subdivisions 12b, 12c, by adding a subdivision; 366.095, subdivision 1; 373.01, subdivision 3; 383B.117, subdivision 2; 410.32; 412.301; 462A.05, subdivision 24; 462A.38; 469.033, subdivision 6; 469.053, subdivisions 4, 6; 469.107, subdivision 1; 469.174, subdivision 14, by adding a subdivision; 469.175, subdivision 6; 469.176, subdivisions 3, 4; 469.1761, subdivision 1; 469.1763, subdivisions 2, 3, 4, 6; 469.1771, subdivisions 2, 2a, 3; 474A.02, subdivisions 22b, 23a; 475.54, subdivision 1; 477A.011, subdivision 34, by adding subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 8, 9; 477A.03, subdivisions 2a, 2b, by adding a subdivision; 477A.12, subdivisions 1, 3, by adding a subdivision; 477A.30; 477B.01, subdivisions 5, 10, 11, by adding subdivisions; 477B.02, subdivisions 2, 3, 5, 8, 9, 10, by adding a subdivision; 477B.03, subdivisions 2, 3, 4, 5, 7; 477B.04, subdivision 1, by adding a subdivision; 477C.02, subdivision 4; 477C.03, subdivisions 2, 5; 477C.04, by adding a subdivision; 514.972, subdivision 5; Laws 1971, chapter 773, section 1, subdivision 2, as amended; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 2006, chapter 259, article 11, section 3, as amended; Laws 2008, chapter 366, article 5, sections 26, as amended; 36, subdivisions 1, 3, as amended; article 7, section 17; article 17, section 6; Laws 2014, chapter 308, article 6, section 12, subdivision 2; Laws 2023, chapter 1, section 15; proposing coding for new law in Minnesota Statutes, chapters 16A; 181; 290; 477A; proposing coding for new law as Minnesota Statutes, chapter 428B; repealing Minnesota Statutes 2022, sections 270A.04, subdivision 5; 290.01, subdivision 19i; 290.0131, subdivision 18; 290.0132, subdivision 33; 290A.03, subdivisions 9, 11; 290A.04, subdivision 2a; 290A.23, subdivision 1; 477A.011, subdivisions 30a, 38, 42, 45; 477A.013, subdivision 13; 477A.16, subdivisions 1, 2, 3; 477B.02, subdivision 4; 477B.03, subdivision 6.

Thomas S. Bottern, Secretary of the Senate

Gomez moved that the House refuse to concur in the Senate amendments to H. F. No. 1938, that the Speaker appoint a Conference Committee of 5 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

ANNOUNCEMENT BY THE SPEAKER

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 1938:

Gomez; Lislegard; Lee, K.; Agbaje and Davids.

MOTIONS AND RESOLUTIONS

Brand moved that the name of Tabke be shown as chief author on H. F. No. 1206. The motion prevailed.

Freiberg moved that the name of Tabke be added as an author on H. F. No. 1930. The motion prevailed.

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Pinto moved that the name of Fischer be added as an author on H. F. No. 2707. The motion prevailed.

Pursell moved that the name of Fischer be added as an author on H. F. No. 2791. The motion prevailed.

Wolgamott moved that the names of Hicks, Franson, Tabke, Norris and Jordan be added as authors on H. F. No. 3294. The motion prevailed.

PROTEST AND DISSENT

Pursuant to Article IV, Section 11 of the Minnesota Constitution, we the undersigned Members of the Minnesota House of Representatives register our protest and dissent against Representatives Dawn Gillman, Mary Franson, Walter Hudson, Krista Knudsen, Isaac Schultz, Elliot Engen, and Pam Altendorf for their untrue, inflammatory, and grossly irresponsible social media posts on or about April 26, 2023.

The House Code of Conduct Policy for the Minnesota House of Representatives, pursuant to House Rule 9.01, states:

"A State Representative and an officer or employee of the House of Representatives shall:

"Respect the principles of representative democracy, by exemplifying good citizenship and High personal integrity, and by observing the letter and spirit of laws, and House Rules…

"Treat everyone with respect, fairness, and courtesy…

"Exercise sound judgment."

Further, the Minnesota House of Representatives Policy Against Discrimination and Harassment states:

"Every member and employee in the Minnesota House of Representatives is responsible for contributing to a safe and respectful workplace."

On or about April 26, 2023, Reps. Gillman, Franson, Hudson, Knudsen, Schultz, Engen, and Altendorf shared dangerous, intimidating, hateful, and misleading posts on social media that targeted Representative Leigh Finke. The sharing of these posts amplified lies and offensive content, and contributed to an increase in hateful comments and threats of violence targeted at Rep. Finke.

We the undersigned find these members' actions to be unacceptable. These posts are easily disproven. Each member had all the resources at their disposal to determine whether the outrageous accusation was true before sharing the content.

These Representatives did not act with respect or exercise sound judgment and therefore violated House rules and policies. We do not condone actions that mislead the public, magnify abhorrent comments, or target violence toward members, and we admonish these members for their actions. We further request that the Speaker, Minority Leader, and House Human Resources do all that is within their power to ensure a respectful workplace and the safety of everyone in our State Capitol.

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Further, pursuant to Article IV, Section 11 of the Minnesota Constitution, we direct that our protest and dissent be entered into the Journal of the House of Representatives.

Respectfully submitted, Melissa Hortman Jamie Long

Aisha Gomez Alicia Kozlowski

Emma Greenman Hodan Hassan

Liz Lee Matt Norris

Erin Koegel Dave Pinto

Kristi Pursell Ned Carroll

Mike Freiberg Josiah Hill

Amanda Hemmingsen-Jaeger Luke Frederick

Jeff Brand Andrew Smith

Lucy Rehm Steve Elkins

Heather Keeler Michael Nelson

Athena Hollins Liz Olson

Esther Agbaje Frank Hornstein

Leon Lillie Patty Acomb

John Huot Kristin Bahner

Leigh Finke Brad Tabke

Zack Stephenson Mohamud Noor

Samantha Sencer-Mura Ethan Cha

Carlie Kotyza-Witthuhn Cheryl Youakim

Kaohly Her Mary F. Clardy

Kim Hicks Michael Howard

Nathan Coulter Sydney Jordan

Jess Hanson Larry Kraft

Peter M. Fischer Jerry Newton

Laurie Pryor Liz Reyer

Samakab Hussein Sandra Feist

Samantha Vang Brion Curran

Maria Isa Pérez-Vega Jamie Becker-Finn

Jay Xiong Heather Edelson

Cedrick Frazier Fue Lee

Ruth Richardson Rick Hansen

Tina Liebling Kaela Berg

ADJOURNMENT

Long moved that when the House adjourns today it adjourn until 11:00 a.m., Thursday, May 4, 2023. The motion prevailed.

Long moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 11:00 a.m., Thursday, May 4, 2023.

Patrick D. Murphy, Chief Clerk, House of Representatives