HF 74

as introduced - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am

A bill for an act
relating to employment; creating the large employer
fair share health care fund; requiring certain large
employers to make payments to the fund; regulating
assets of the fund; authorizing the commissioner of
employment and economic development to adopt rules;
providing penalties; proposing coding for new law in
Minnesota Statutes, chapter 181.

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

Section 1.

new text begin [181.825] LARGE EMPLOYER FAIR SHARE HEALTH
CARE FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in this
subdivision apply to this section.
new text end

new text begin (a) "Commissioner" means the commissioner of employment and
economic development.
new text end

new text begin (b) "Employee" means all individuals employed full-time or
part-time directly by an employer.
new text end

new text begin (c) "Employer" means any person having 10,000 or more
employees in Minnesota, but does not include the federal
government, the state, or any political subdivision of the
state. An employer has 10,000 or more employees in Minnesota if
the average number of employees reported on the 12th day of each
calendar month as required by section 268.044, subdivision 1, is
equal to or greater than 10,000.
new text end

new text begin (d) "Fund" means the large employer fair share health care
fund.
new text end

new text begin (e) "Health insurance costs" means the amount paid by an
employer to provide health care or health insurance to employees
in the state to the extent the costs may be deductible by an
employer under federal tax law. Health insurance costs include
payments for medical care, prescription drugs, vision care,
medical savings accounts, and any other costs to provide health
benefits as defined in section 213(d) of the Internal Revenue
Code.
new text end

new text begin (f) "Wages" means the same as that term is defined in
section 3401(a) and (f) of the Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Fund. new text end

new text begin There is created in the state treasury a
large employer fair share health care fund as a special revenue
fund for deposit of payments made by employers as required by
this section. The fund consists of any revenue received from
payments made by employers as required by this section and of
any other money from any source accepted for the benefit of the
fund. The commissioner of finance shall invest the money of the
fund in the same manner as other state money may be invested.
Investment earnings of the fund must be retained to the credit
of the fund. The fund is subject to an audit by the legislative
auditor. The fund must be used to support medical assistance
for needy persons under chapter 256B.
new text end

new text begin Subd. 3. new text end

new text begin Employer reporting requirement. new text end

new text begin (a) On March 1,
2007, and annually thereafter, an employer must submit a report
on a form and in a manner approved by the commissioner. The
report must include:
new text end

new text begin (1) the number of employees of the employer in the state as
of the twelfth day of each calendar month in the previous
calendar year as reported under section 268.044, subdivision 1;
new text end

new text begin (2) the amount spent by the employer in the previous
calendar year on health insurance costs in the state; and
new text end

new text begin (3) the percentage of payroll that was spent by the
employer in the previous calendar year on health insurance costs
in the state.
new text end

new text begin (b) The principal executive officer or an individual
performing a similar function for an employer must sign the form
required under paragraph (a) and must include an affidavit under
penalty of perjury that the information provided on the form was
reviewed by the signing officer and is true to the best of the
signing officer's knowledge, information, and belief.
new text end

new text begin (c) When calculating the percentage of payroll under
paragraph (a), clause (3), an employer may exempt wages paid to
any employee in excess of the median household income in the
state as published by the United States Census Bureau and wages
paid to an employee who is enrolled in or eligible for medicare.
new text end

new text begin Subd. 4. new text end

new text begin Payroll assessment. new text end

new text begin (a) An employer that is a
nonprofit organization that does not spend six percent or more
of the total wages paid to employees in the state on health
insurance costs must pay to the commissioner an amount equal to
the difference between what the employer spends for health
insurance costs and an amount equal to six percent of the total
wages paid to employees in the state.
new text end

new text begin (b) An employer that is not a nonprofit organization and
does not spend eight percent or more of the total wages paid to
employees in the state on health insurance costs must pay to the
commissioner an amount equal to the difference between what the
employer spends for health insurance costs and an amount equal
to eight percent of the total wages paid to employees in the
state.
new text end

new text begin (c) An employer may not deduct any payments required by
this subdivision from the wages of an employee.
new text end

new text begin (d) An employer must make the payment required under this
subdivision to the commissioner on a periodic basis as
determined by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Penalties. new text end

new text begin (a) An employer that fails to submit
a report as required under subdivision 3 when due must pay a
late fee of $250 for each day that the report is not timely
filed.
new text end

new text begin (b) An employer that fails to make the payment required
under subdivision 4 is subject to a civil penalty of $250,000.
new text end

new text begin Subd. 6. new text end

new text begin Duties of the commissioner; adoption of
rules. new text end

new text begin (a) The commissioner shall annually verify which
employers have 10,000 or more employees in the state and shall
ensure that all employers with 10,000 or more employees in the
state have made the report required under subdivision 3.
new text end

new text begin (b) The commissioner shall pay the revenue from the payroll
assessment under subdivision 4 to the fund.
new text end

new text begin (c) The commissioner may adopt rules to implement this
section.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective January 1, 2007.
new text end