HF 4446

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/21/2022 02:32pm

A bill for an act
relating to human services; creating workforce incentive fund grants; designating
workforce incentive grants as a subtraction; categorizing workforce incentive grant
payments as nonincome; amending Minnesota Statutes 2020, sections 290.0132,
by adding a subdivision; 290.0674, subdivision 2a; Minnesota Statutes 2021
Supplement, section 290A.03, subdivision 3; proposing coding for new law in
Minnesota Statutes, chapter 256.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [256.4778] WORKFORCE INCENTIVE FUND GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The commissioner shall establish grants
for behavioral health, housing, disability, and home and community-based older adult
providers to assist with recruiting and retaining direct support and frontline workers.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of human services.
new text end

new text begin (c) "Eligible employer" means a nonprofit organization enrolled in Minnesota health
care programs or providing housing services that is at least one of the following:
new text end

new text begin (1) a provider of home and community-based services under chapter 245D;
new text end

new text begin (2) an agency provider or financial management services provider under section 256B.85;
new text end

new text begin (3) a home care provider licensed under sections 144A.43 to 144A.482;
new text end

new text begin (4) a facility certified as an intermediate care facility for persons with developmental
disabilities as defined under section 245D.02, subdivision 11a;
new text end

new text begin (5) a provider of home care services as defined under section 256B.0651, subdivision
1, paragraph (d);
new text end

new text begin (6) an agency as defined under section 256B.0949, subdivision 2;
new text end

new text begin (7) a provider of mental health day treatment services for children or adults as defined
under sections 245.4871, subdivision 10, and 256B.0671, subdivision 3, paragraph (b);
new text end

new text begin (8) a provider of emergency services as defined under section 256E.36;
new text end

new text begin (9) a provider of housing support as defined in chapter 256I;
new text end

new text begin (10) a provider of housing stabilization services as defined in section 256B.051;
new text end

new text begin (11) a provider of transitional housing programs as defined under section 256E.33;
new text end

new text begin (12) a provider of substance use disorder services as defined in chapter 245G;
new text end

new text begin (13) an eligible financial management services provider serving people through
consumer-directed community supports under chapter 256S and sections 256B.092 and
256B.49 or consumer support grants under section 256.476;
new text end

new text begin (14) a provider of customized living services as defined in section 256S.02; or
new text end

new text begin (15) a provider of services for children with an emotional disorder or adults with mental
illness under section 245I.011 or 256B.0671, including:
new text end

new text begin (i) assertive community treatment;
new text end

new text begin (ii) intensive residential treatment services;
new text end

new text begin (iii) adult rehabilitative mental health services;
new text end

new text begin (iv) mobile crisis services;
new text end

new text begin (v) children's therapeutic services and supports;
new text end

new text begin (vi) children's residential services;
new text end

new text begin (vii) psychiatric residential treatment facilities;
new text end

new text begin (viii) outpatient mental health treatment provided by mental health professionals,
community mental health center services, or certified community behavioral health clinics;
or
new text end

new text begin (ix) intensive mental health outpatient treatment services.
new text end

new text begin (d) "Eligible worker" means a worker who earns $30 per hour or less and has worked
in an eligible profession for at least six months. An eligible worker may receive up to $5,000
annually in payments from the workforce incentive fund.
new text end

new text begin Subd. 3. new text end

new text begin Allowable uses of money. new text end

new text begin (a) Grantees must use money awarded under this
section to provide payments to eligible workers for the following purposes:
new text end

new text begin (1) retention and incentive payments;
new text end

new text begin (2) postsecondary education loan and tuition payments;
new text end

new text begin (3) child care costs;
new text end

new text begin (4) transportation-related costs; or
new text end

new text begin (5) other costs associated with retaining and recruiting workers, as approved by the
commissioner.
new text end

new text begin (b) The commissioner must develop a grant cycle distribution plan that allows for
equitable distribution of funding among eligible employer types. The commissioner's
determination of the grant awards and grant amounts is final and is not subject to appeal.
new text end

new text begin (c) The commissioner must make efforts to prioritize eligible employers owned by Black,
Indigenous, and people of color and small to midsize eligible employers.
new text end

new text begin Subd. 4. new text end

new text begin Attestation. new text end

new text begin As a condition of obtaining grant payments under this section, an
eligible employer must attest and agree to the following:
new text end

new text begin (1) the employer is an eligible employer;
new text end

new text begin (2) the total number of eligible employees;
new text end

new text begin (3) the employer will distribute the entire value of the grant to eligible employees
identified by the employer, as allowed under this section;
new text end

new text begin (4) the employer will create and maintain records of the total amount of grant money
awarded and how that money was distributed to eligible employees; and
new text end

new text begin (5) the employer will not use the money appropriated under this section for any purpose
other than the purposes permitted under this section.
new text end

new text begin Subd. 5. new text end

new text begin Self-directed services workforce. new text end

new text begin Grants paid to eligible employees providing
services within the covered programs defined in section 256B.0711 do not constitute a
change in a term or condition for individual providers in covered programs and are not
subject to the state's obligation to meet and negotiate under chapter 179A.
new text end

new text begin Subd. 6. new text end

new text begin Grants not to be considered income. new text end

new text begin (a) Notwithstanding any law to the
contrary, grant awards under this section must not be considered income, assets, or personal
property for purposes of determining eligibility or recertifying eligibility for:
new text end

new text begin (1) child care assistance programs under chapter 119B;
new text end

new text begin (2) general assistance, Minnesota supplemental aid, and food support under chapter
256D;
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new text begin (3) housing support under chapter 256I;
new text end

new text begin (4) the Minnesota family investment program and diversionary work program under
chapter 256J; and
new text end

new text begin (5) economic assistance programs under chapter 256P.
new text end

new text begin (b) The commissioner of human services must not consider grant awards under this
section as income or assets under section 256B.056, subdivision 1a, paragraph (a); 3; or 3c,
or for persons with eligibility determined under section 256B.057, subdivision 3, 3a, or 3b.
new text end

new text begin Subd. 7. new text end

new text begin Audits and recoupment. new text end

new text begin (a) The commissioner may perform an audit under
this section up to six years after the grant is awarded to ensure the grantee:
new text end

new text begin (1) used the money solely for the purposes stated in subdivision 3;
new text end

new text begin (2) was truthful when making attestations under subdivision 4; and
new text end

new text begin (3) complied with the conditions of receiving a grant under this section.
new text end

new text begin (b) If the commissioner determines that a grantee used awarded money for purposes not
authorized under this section, the commissioner must treat any amount used for a purpose
not authorized under this section as an overpayment. The commissioner must recover any
overpayment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 31. new text end

new text begin Workforce incentive fund grant payments. new text end

new text begin The amount of workforce
incentive grants under section 256.4778 is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 290.0674, subdivision 2a, is amended to read:

Subd. 2a.

Income.

(a) For purposes of this section, "income" means the sum of the
following:

(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code;
and

(2) the sum of the following amounts to the extent not included in clause (1):

(i) all nontaxable income;

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;

(iv) cash public assistance and relief;

(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;

(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;

(vii) workers' compensation;

(viii) nontaxable strike benefits;

(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;

(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code;

(xii) nontaxable scholarship or fellowship grants;

(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;

(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;

(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and

(xvi) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.

In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" means federal adjusted gross income reflected in the
fiscal year ending in the next calendar year. Federal adjusted gross income may not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.

(b) "Income" does not include:

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;

(2) amounts of any pension or annuity that were exclusively funded by the claimant or
spouse if the funding payments were not excluded from federal adjusted gross income in
the years when the payments were made;

(3) surplus food or other relief in kind supplied by a governmental agency;

(4) relief granted under chapter 290A;

(5) child support payments received under a temporary or final decree of dissolution or
legal separation; deleted text begin and
deleted text end

(6) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16 new text begin ; and
new text end

new text begin (7) workforce incentive grant payments under section 256.4778 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021.
new text end

Sec. 4.

Minnesota Statutes 2021 Supplement, section 290A.03, subdivision 3, is amended
to read:

Subd. 3.

Income.

(a) "Income" means the sum of the following:

(1) federal adjusted gross income as defined in the Internal Revenue Code; and

(2) the sum of the following amounts to the extent not included in clause (1):

(i) all nontaxable income;

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;

(iv) cash public assistance and relief;

(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;

(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;

(vii) workers' compensation;

(viii) nontaxable strike benefits;

(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;

(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;

(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;

(xiii) nontaxable scholarship or fellowship grants;

(xiv) alimony received to the extent not included in the recipient's income;

(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;

(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and

(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.

In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.

(b) "Income" does not include:

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;

(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;

(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;

(4) surplus food or other relief in kind supplied by a governmental agency;

(5) relief granted under this chapter;

(6) child support payments received under a temporary or final decree of dissolution or
legal separation;

(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16;

(8) alimony paid; deleted text begin or
deleted text end

(9) veterans disability compensation paid under title 38 of the United States Code new text begin ; and
new text end

new text begin (10) workforce incentive grant payments under section 256.4778 new text end .

(c) The sum of the following amounts may be subtracted from income:

(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;

(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;

(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;

(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;

(5) for the claimant's fifth dependent, the exemption amount; and

(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
before December 31 of the year for which the taxes were levied or rent paid, the exemption
amount.

(d) For purposes of this subdivision, the following terms have the meanings given:

(1) "exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b), for the taxable year for which the income is reported;

(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and

(3) "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid in 2022
and property taxes payable in 2023.
new text end