1.1 	A bill for an act
1.2 	relating to employment; providing a phased-in minimum wage increase; enabling 
1.3 	low-income workers to meet basic needs; increasing the working family credit 
1.4 	to exceed the federal earned income tax credit; providing increased child care 
1.5 	assistance to all low-income workers; reestablishing the Minnesota emergency 
1.6 	employment development program; reducing welfare costs to taxpayers; 
1.7 	authorizing rulemaking; appropriating money;amending Minnesota Statutes 
1.8 	2014, sections 119B.02, subdivisions 1, 2; 119B.03, subdivisions 3, 9, 10; 
1.9 	119B.035, subdivisions 1, 2, 5; 119B.05, subdivision 5; 119B.08, subdivision 
1.10 	3; 119B.09, subdivision 7; 119B.10; 119B.11, subdivision 1; 119B.12, 
1.11 	subdivision 2; 119B.13, subdivision 1; 119B.15; 119B.24; 177.24, subdivision 
1.12 	1; Minnesota Statutes 2015 Supplement, sections 119B.035, subdivision 4; 
1.13 	290.0671, subdivision 1; repealing Minnesota Statutes 2014, sections 119B.011, 
1.14 	subdivisions 20, 20a; 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, 8; 119B.05, 
1.15 	subdivision 1; 119B.07; 119B.09, subdivisions 3, 4a; 119B.11, subdivision 4; 
1.16 	290.0671, subdivision 7.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	FINDINGS

1.20 	Section 1. FINDINGS.
 1.21 	(a) The Legislative Commission on Ending Poverty in Minnesota called for steps to 
1.22 	bring an end to poverty by 2020, yet a large number of Minnesotans continue to struggle 
1.23 	to make ends meet. More than one in ten Minnesotans lives in poverty, and three in ten are 
1.24 	struggling to meet basic needs. Some workers cannot afford housing and go from their 
1.25 	jobs to a homeless shelter at night. More than half the time has passed between the year in 
1.26 	which the Poverty Commission wrote the report and the year 2020, yet little progress has 
1.27 	been made and bolder action is needed.
2.1 	(b) Because low-income people frequently need government assistance to feed 
2.2 	their families, the most effective welfare reform is to help Minnesota workers succeed 
2.3 	in the economy. This includes ensuring that there are jobs available to them, that they 
2.4 	have access to affordable child care, and that, through higher wages and an increase in 
2.5 	the working family tax credit, they are able to afford basic needs. Helping low-income 
2.6 	workers and their families will boost their productivity, improve the economy, and reduce 
2.7 	financial assistance costs for the state.

2.8 	ARTICLE 2
2.9 	MINIMUM WAGE

2.10 	Section 1. Minnesota Statutes 2014, section 177.24, subdivision 1, is amended to read:
2.11 		Subdivision 1.Amount. (a) For purposes of this subdivision, the terms defined in 
2.12 	this paragraph have the meanings given them.
2.13 	(1) "Large employer" means an enterprise whose annual gross volume of sales 
2.14 	made or business done is not less than $500,000 (exclusive of excise taxes at the retail 
2.15 	level that are separately stated) and covered by the Minnesota Fair Labor Standards Act, 
2.16 	sections 177.21 to 177.35.
2.17 	(2) "Small employer" means an enterprise whose annual gross volume of sales made 
2.18 	or business done is less than $500,000 (exclusive of excise taxes at the retail level that 
2.19 	are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 
2.20 	177.21 to 177.35.
2.21 	(b) Except as otherwise provided in sections 177.21 to 177.35:
2.22 	(1) every large employer must pay each employee wages at a rate of at least:
2.23 	(i) $8.00 $8 per hour beginning August 1, 2014;
2.24 	(ii) $9.00 $9 per hour beginning August 1, 2015;
2.25 	(iii) $9.50 per hour beginning August 1, 2016; and
2.26 	(iv) $10.25 per hour beginning August 1, 2017;
2.27 	(v) $11 per hour beginning August 1, 2018;
2.28 	(vi) $12 per hour beginning August 1, 2019;
2.29 	(vii) $13 per hour beginning August 1, 2020;
2.30 	(viii) $14 per hour beginning August 1, 2021;
2.31 	(ix) $15 per hour beginning August 1, 2022; and
2.32 	(iv) (x) the rate established under paragraph (f) (e) beginning January 1, 2018
2.33 	2023; and
2.34 	(2) every small employer must pay each employee at a rate of at least:
2.35 	(i) $6.50 per hour beginning August 1, 2014;
3.1 	(ii) $7.25 per hour beginning August 1, 2015;
3.2 	(iii) $7.75 per hour beginning August 1, 2016; and
3.3 	(iv) $8.50 per hour beginning August 1, 2017;
3.4 	(v) $9.25 per hour beginning August 1, 2018;
3.5 	(vi) $10 per hour beginning August 1, 2019;
3.6 	(vii) $11 per hour beginning August 1, 2020;
3.7 	(viii) $12 per hour beginning August 1, 2021;
3.8 	(ix) $13 per hour beginning August 1, 2022; and
3.9 	(iv) (x) the rate established under paragraph (f) (e) beginning January 1, 2018 2023.
3.10 	(c) Notwithstanding paragraph (b), during the first 90 consecutive days of 
3.11 	employment, an employer may pay an employee under the age of 20 years who is claimed 
3.12 	as a dependent on a federal income tax return a wage of at least:
3.13 	(1) $6.50 per hour beginning August 1, 2014;
3.14 	(2) $7.25 per hour beginning August 1, 2015;
3.15 	(3) $7.75 per hour beginning August 1, 2016; and
3.16 	(4) $8.50 per hour beginning August 1, 2017;
3.17 	(5) $9.25 per hour beginning August 1, 2018;
3.18 	(6) $10 per hour beginning August 1, 2019;
3.19 	(7) $11 per hour beginning August 1, 2020;
3.20 	(8) $12 per hour beginning August 1, 2021;
3.21 	(9) $13 per hour beginning August 1, 2022; and
3.22 	(4) (10) the rate established under paragraph (f) (e) beginning January 1, 2018 2023.
3.23 	No employer may take any action to displace an employee, including a partial 
3.24 	displacement through a reduction in hours, wages, or employment benefits, in order to 
3.25 	hire an employee at the wage authorized in this paragraph.
3.26 	(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging 
3.27 	establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15, 
3.28 	subdivisions 7, 8, and 11, must pay an employee working under a contract with the 
3.29 	employer that includes the provision by the employer of a food or lodging benefit, if the 
3.30 	employee is working under authority of a summer work travel exchange visitor program 
3.31 	(J) nonimmigrant visa, a wage of at least:
3.32 	(1) $7.25 per hour beginning August 1, 2014;
3.33 	(2) $7.50 per hour beginning August 1, 2015;
3.34 	(3) $7.75 per hour beginning August 1, 2016; and
3.35 	(4) the rate established under paragraph (f) beginning January 1, 2018.
4.1 	No employer may take any action to displace an employee, including a partial 
4.2 	displacement through a reduction in hours, wages, or employment benefits, in order to 
4.3 	hire an employee at the wage authorized in this paragraph.
4.4 	(e) (d) Notwithstanding paragraph (b), a large employer must pay an employee 
4.5 	under the age of 18 who is claimed as a dependent on a federal income tax return at a 
4.6 	rate of at least:
4.7 	(1) $6.50 per hour beginning August 1, 2014;
4.8 	(2) $7.25 per hour beginning August 1, 2015;
4.9 	(3) $7.75 per hour beginning August 1, 2016; and
4.10 	(4) $8.50 per hour beginning August 1, 2017;
4.11 	(5) $9.25 per hour beginning August 1, 2018;
4.12 	(6) $10 per hour beginning August 1, 2019;
4.13 	(7) $11 per hour beginning August 1, 2020;
4.14 	(8) $12 per hour beginning August 1, 2021;
4.15 	(9) $13 per hour beginning August 1, 2022; and
4.16 	(4) (10) the rate established under paragraph (f) (e) beginning January 1, 2018 2023.
4.17 	No employer may take any action to displace an employee, including a partial 
4.18 	displacement through a reduction in hours, wages, or employment benefits, in order to 
4.19 	hire an employee at the wage authorized in this paragraph.
4.20 	(f) (e) No later than August 31 of each year, beginning in 2017 2022, the 
4.21 	commissioner shall determine the percentage increase in the rate of inflation, as measured 
4.22 	by the implicit price deflator, national data for personal consumption expenditures 
4.23 	as determined by the United States Department of Commerce, Bureau of Economic 
4.24 	Analysis during the 12-month period immediately preceding that August or, if that data 
4.25 	is unavailable, during the most recent 12-month period for which data is available. The 
4.26 	minimum wage rates in paragraphs (b), (c), and (d), and (e) are increased by the lesser 
4.27 	of: (1) 2.5 percent, rounded to the nearest cent; or (2) the percentage calculated by the 
4.28 	commissioner, rounded to the nearest cent. A minimum wage rate shall not be reduced 
4.29 	under this paragraph. The new minimum wage rates determined under this paragraph 
4.30 	take effect on the next January 1.
4.31 	(g)(1) (f)(1) No later than September 30 of each year, beginning in 2017 2022, 
4.32 	the commissioner may issue an order that an increase calculated under paragraph (f)
4.33 	(e) not take effect. The commissioner may issue the order only if the commissioner, 
4.34 	after consultation with the commissioner of management and budget, finds that leading 
4.35 	economic indicators, including but not limited to projections of gross domestic product 
4.36 	calculated by the United States Department of Commerce, Bureau of Economic Analysis; 
5.1 	the Consumer Confidence Index issued by the Conference Board; and seasonally adjusted 
5.2 	Minnesota unemployment rates, indicate the potential for a substantial downturn in the 
5.3 	state's economy. Prior to issuing an order, the commissioner shall also calculate and 
5.4 	consider the ratio of the rate of the calculated change in the minimum wage rate to the 
5.5 	rate of change in state median income over the same time period used to calculate the 
5.6 	change in wage rate. Prior to issuing the order, the commissioner shall hold a public 
5.7 	hearing, notice of which must be published in the State Register, on the department's Web 
5.8 	site, in newspapers of general circulation, and by other means likely to inform interested 
5.9 	persons of the hearing, at least ten days prior to the hearing. The commissioner must allow 
5.10 	interested persons to submit written comments to the commissioner before the public 
5.11 	hearing and for 20 days after the public hearing.
5.12 	(2) The commissioner may in a year subsequent to issuing an order under clause 
5.13 	(1), make a supplemental increase in the minimum wage rate in addition to the increase 
5.14 	for a year calculated under paragraph (f) (e). The supplemental increase may be in an 
5.15 	amount up to the full amount of the increase not put into effect because of the order. If the 
5.16 	supplemental increase is not the full amount, the commissioner may make a supplemental 
5.17 	increase of the difference, or any part of a difference, in a subsequent year until the full 
5.18 	amount of the increase ordered not to take effect has been included in a supplemental 
5.19 	increase. In making a determination to award a supplemental increase under this clause, 
5.20 	the commissioner shall use the same considerations and use the same process as for an 
5.21 	order under clause (1). A supplemental wage increase is not subject to and shall not be 
5.22 	considered in determining whether a wage rate increase exceeds the limits for annual wage 
5.23 	rate increases allowed under paragraph (f) (e).

5.24 	EFFECTIVE DATE. This section is effective August 1, 2016.

5.25 	ARTICLE 3
5.26 	CHILD CARE ASSISTANCE ENHANCEMENT AND EXPANSION TO 
5.27 	COVER ALL LOW-INCOME WORKERS

5.28 	Section 1. Minnesota Statutes 2014, section 119B.02, subdivision 1, is amended to read:
5.29 		Subdivision 1.Child care services. The commissioner shall develop standards 
5.30 	for county and human services boards to provide child care services to enable eligible 
5.31 	families to participate in employment, training, or education programs. Within the limits 
5.32 	of available appropriations, The commissioner shall distribute money to counties to 
5.33 	reduce the costs of child care for eligible families. The commissioner shall adopt rules to 
5.34 	govern the program in accordance with this section. The rules must establish a sliding 
6.1 	schedule of fees for parents receiving child care services. The rules shall provide that 
6.2 	funds received as a lump-sum payment of child support arrearages shall not be counted 
6.3 	as income to a family in the month received but shall be prorated over the 12 months 
6.4 	following receipt and added to the family income during those months. The commissioner 
6.5 	shall maximize the use of federal money under title I and title IV of Public Law 104-193, 
6.6 	the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and 
6.7 	other programs that provide federal or state reimbursement for child care services for 
6.8 	low-income families who are in education, training, job search, or other activities allowed 
6.9 	under those programs. Money appropriated under this section must be coordinated with 
6.10 	the programs that provide federal reimbursement for child care services to accomplish 
6.11 	this purpose. Federal reimbursement obtained must be allocated to the county that spent 
6.12 	money for child care that is federally reimbursable under programs that provide federal 
6.13 	reimbursement for child care services. The countiescommissioner shall use the federal 
6.14 	money to expand child care services. The commissioner may adopt rules under chapter 14 
6.15 	to implement and coordinate federal program requirements.

6.16 	Sec. 2. Minnesota Statutes 2014, section 119B.02, subdivision 2, is amended to read:
6.17 		Subd. 2.Contractual agreements with tribes. The commissioner may enter into 
6.18 	contractual agreements with a federally recognized Indian tribe with a reservation in 
6.19 	Minnesota to carry out the responsibilities of county human service agencies to the extent 
6.20 	necessary for the tribe to operate child care assistance programs for families eligible under 
6.21 	sections 119B.03 119B.09 and 119B.05 119B.10. An agreement may allow the state 
6.22 	to make payments for child care assistance services provided under section 119B.05
6.23 	this chapter. The commissioner shall consult with the affected county or counties in the 
6.24 	contractual agreement negotiations, if the county or counties wish to be included, in 
6.25 	order to avoid the duplication of county and tribal child care services. Funding to support 
6.26 	services under section 119B.03 may be transferred to the federally recognized Indian tribe 
6.27 	with a reservation in Minnesota from allocations available to counties in which reservation 
6.28 	boundaries lie. When funding is transferred under section 119B.03, the amount shall be 
6.29 	commensurate to estimates of the proportion of reservation residents with characteristics 
6.30 	identified in section 119B.03, subdivision 6, to the total population of county residents 
6.31 	with those same characteristics.

6.32 	Sec. 3. Minnesota Statutes 2014, section 119B.03, subdivision 3, is amended to read:
6.33 		Subd. 3.Eligible participants. Families that meet the eligibility requirements 
6.34 	under sections 119B.07,119B.09, and 119B.10, except MFIP participants, diversionary 
7.1 	work program, and transition year families are eligible for child care assistance under the 
7.2 	basic sliding feechild care assistance program. Families enrolled in the basic sliding fee
7.3 	child care assistance program shall be continued until they are no longer eligible. Child 
7.4 	care assistance provided through the child care fund is considered assistance to the parent.

7.5 	Sec. 4. Minnesota Statutes 2014, section 119B.03, subdivision 9, is amended to read:
7.6 		Subd. 9.Portability pool Family move; continued participation. (a) The 
7.7 	commissioner shall establish a pool of up to five percent of the annual appropriation for 
7.8 	the basic sliding fee program to provide continuous child care assistance for eligible 
7.9 	families who move between Minnesota counties. At the end of each allocation period, any 
7.10 	unspent funds in the portability pool must be used for assistance under the basic sliding fee 
7.11 	program. If expenditures from the portability pool exceed the amount of money available, 
7.12 	the reallocation pool must be reduced to cover these shortages.
7.13 	(b) To be eligible for portable basic sliding fee assistance, a family that has moved 
7.14 	from a county in which it A family receiving child care assistance under the child care fund 
7.15 	that has moved from a county in which the family was receiving basic sliding feechild 
7.16 	care assistance to aanother county with a waiting list for the basic sliding fee program
7.17 	must be admitted into the receiving county's child care assistance program if the family:
7.18 	(1) meet meets the income and eligibility guidelines for the basic sliding feechild 
7.19 	care assistance program; and
7.20 	(2) notifynotifies the new county of residence within 60 days of moving and submit
7.21 	submits information to the new county of residence to verify eligibility for the basic 
7.22 	sliding fee child care assistance program.
7.23 	(c) (b) The receiving county must:
7.24 	(1) accept administrative responsibility for applicants for portable basic sliding fee 
7.25 	assistance at the end of the two months of assistance under the Unitary Residency Act;.
7.26 	(2) continue basic sliding fee assistance for the lesser of six months or until the 
7.27 	family is able to receive assistance under the county's regular basic sliding program; and
7.28 	(3) notify the commissioner through the quarterly reporting process of any family 
7.29 	that meets the criteria of the portable basic sliding fee assistance pool.

7.30 	Sec. 5. Minnesota Statutes 2014, section 119B.03, subdivision 10, is amended to read:
7.31 		Subd. 10.Application; entry points. Two or more methods of applying for the 
7.32 	basic sliding fee child care assistance program under this chapter must be available to 
7.33 	applicants in each county. To meet the requirements of this subdivision, a county may 
8.1 	provide alternative methods of applying for assistance, including, but not limited to, a mail 
8.2 	application, or application sites that are located outside of government offices.

8.3 	Sec. 6. Minnesota Statutes 2014, section 119B.035, subdivision 1, is amended to read:
8.4 		Subdivision 1.Establishment. A family in which a parent provides care for the 
8.5 	family's infant child may receive a subsidy in lieu of assistance if the family is eligible 
8.6 	for or is receiving assistance under the basic sliding fee child care assistance program. 
8.7 	An eligible family must meet the eligibility factors under section 119B.09, except as 
8.8 	provided in subdivision 4, and the requirements of this section. Subject to federal match 
8.9 	and maintenance of effort requirements for the child care and development fund, and up to 
8.10 	available appropriations, the commissioner shall provide assistance under the at-home 
8.11 	infant child care program and for administrative costs associated with the program. At 
8.12 	the end of a fiscal year, the commissioner may carry forward any unspent funds under 
8.13 	this section to the next fiscal year within the same biennium for assistance under the basic 
8.14 	sliding fee child care assistance program.

8.15 	Sec. 7. Minnesota Statutes 2014, section 119B.035, subdivision 2, is amended to read:
8.16 		Subd. 2.Eligible families. A family with an infant under the age of one year is 
8.17 	eligible for assistance if:
8.18 	(1) the family is not receiving MFIP, other cash assistance, or other child care 
8.19 	assistance; and
8.20 	(2) the family has not previously received a lifelong total of 12 months of assistance 
8.21 	under this section; and
8.22 	(3) (2) the family is participating in the basic sliding feechild care assistance 
8.23 	program or provides verification of participating in an authorized activity at the time of 
8.24 	application and meets the program requirements.

8.25 	Sec. 8. Minnesota Statutes 2015 Supplement, section 119B.035, subdivision 4, is 
8.26 	amended to read:
8.27 		Subd. 4.Assistance. (a) A family is limited to a lifetime total of 12 months of 
8.28 	assistance under subdivision 2. The maximum rate of assistance is equal to 68 percent 
8.29 	of the rate established under section 119B.13 for care of infants in licensed family child 
8.30 	care in the applicant's county of residence.
8.31 	(b) A participating family must report income and other family changes as specified in 
8.32 	sections 256P.06 and 256P.07, and the county's plan under section 119B.08, subdivision 3.
9.1 	(c) Persons who are admitted to the at-home infant child care program retain their 
9.2 	position in any basic sliding fee program. Persons leaving the at-home infant child care 
9.3 	program reenter the basic sliding fee program at the position they would have occupied.
9.4 	(d) (c) Assistance under this section does not establish an employer-employee 
9.5 	relationship between any member of the assisted family and the county or state.

9.6 	Sec. 9. Minnesota Statutes 2014, section 119B.035, subdivision 5, is amended to read:
9.7 		Subd. 5.Implementation. The commissioner shall implement the at-home infant 
9.8 	child care program under this section through counties that administer the basic sliding fee
9.9 	child care assistance program under section 119B.03 this chapter. The commissioner must 
9.10 	develop and distribute consumer information on the at-home infant child care program to 
9.11 	assist parents of infants or expectant parents in making informed child care decisions.

9.12 	Sec. 10. Minnesota Statutes 2014, section 119B.05, subdivision 5, is amended to read:
9.13 		Subd. 5.Federal reimbursement. Counties and the state shall maximize their 
9.14 	federal reimbursement under federal reimbursement programs for money spent for persons 
9.15 	eligible under this chapter. The commissioner shall allocate any federal earnings to the 
9.16 	county to be used to expand child care services under this chapter.

9.17 	Sec. 11. Minnesota Statutes 2014, section 119B.08, subdivision 3, is amended to read:
9.18 		Subd. 3.Child care fund plan. The county and designated administering agency 
9.19 	shall submit a biennial child care fund plan to the commissioner. The commissioner shall 
9.20 	establish the dates by which the county must submit the plans. The plan shall include:
9.21 	(1) a description of strategies to coordinate and maximize public and private 
9.22 	community resources, including school districts, health care facilities, government 
9.23 	agencies, neighborhood organizations, and other resources knowledgeable in early 
9.24 	childhood development, in particular to coordinate child care assistance with existing 
9.25 	community-based programs and service providers including child care resource and 
9.26 	referral programs, early childhood family education, school readiness, Head Start, local 
9.27 	interagency early intervention committees, special education services, early childhood 
9.28 	screening, and other early childhood care and education services and programs to the extent 
9.29 	possible, to foster collaboration among agencies and other community-based programs that 
9.30 	provide flexible, family-focused services to families with young children and to facilitate 
9.31 	transition into kindergarten. The county must describe a method by which to share 
9.32 	information, responsibility, and accountability among service and program providers;
10.1 	(2) a description of procedures and methods to be used to make copies of the 
10.2 	proposed state plan reasonably available to the public, including members of the public 
10.3 	particularly interested in child care policies such as parents, child care providers, culturally 
10.4 	specific service organizations, child care resource and referral programs, interagency 
10.5 	early intervention committees, potential collaborative partners and agencies involved in 
10.6 	the provision of care and education to young children, and allowing sufficient time for 
10.7 	public review and comment; and
10.8 	(3) information as requested by the department to ensure compliance with the child 
10.9 	care fund statutes and rules promulgated by the commissioner.
10.10 	The commissioner shall notify counties within 90 days of the date the plan is 
10.11 	submitted whether the plan is approved or the corrections or information needed to approve 
10.12 	the plan. The commissioner shall withhold a county's allocation until it has an approved 
10.13 	plan. Plans not approved by the end of the second quarter after the plan is due may result 
10.14 	in a 25 percent reduction in allocation. Plans not approved by the end of the third quarter 
10.15 	after the plan is due may result in a 100 percent reduction in the allocation to the county
10.16 	payments to a county until it has an approved plan. Counties are to maintain services despite 
10.17 	any reduction in their allocationwithholding of payments due to plans not being approved.

10.18 	Sec. 12. Minnesota Statutes 2014, section 119B.09, subdivision 7, is amended to read:
10.19 		Subd. 7.Date of eligibility for assistance. (a) The date of eligibility for child care 
10.20 	assistance under this chapter is the later of the date the application was received by the 
10.21 	county; the beginning date of employment, education, or training; or the date the infant is 
10.22 	born for applicants to the at-home infant care program; or the date a determination has 
10.23 	been made that the applicant is a participant in employment and training services under 
10.24 	Minnesota Rules, part 3400.0080, or chapter 256J.
10.25 	(b) Payment ceases for a family under the at-home infant child care program when a 
10.26 	family has used a total of 12 months of assistance as specified under section 119B.035. 
10.27 	Payment of child care assistance for employed persons on MFIP is effective the date of 
10.28 	employment or the date of MFIP eligibility, whichever is later. Payment of child care 
10.29 	assistance for MFIP or DWP participants in employment and training services is effective 
10.30 	the date of commencement of the services or the date of MFIP or DWP eligibility, 
10.31 	whichever is later. Payment of child care assistance for transition year child care must be 
10.32 	made retroactive to the date of eligibility for transition year child care.
10.33 	(c) Notwithstanding paragraph (b), payment of child care assistance for participants 
10.34 	eligible under section 119B.05 may only be made retroactive for a maximum of six 
10.35 	months from the date of application for child care assistance.

11.1 	Sec. 13. Minnesota Statutes 2014, section 119B.10, is amended to read:
11.2 	119B.10 EMPLOYMENT OR TRAINING ELIGIBILITY.
11.3 		Subdivision 1.Assistance for persons seeking and retaining employment. (a) 
11.4 	Persons who are seeking employment and who are eligible for assistance under this section
11.5 	chapter are eligible to receive up to 240 hours of child care assistance per calendar year.
11.6 	(b) Employed persons who work at least an average of 20 hours and full-time students 
11.7 	who work at least an average of ten hours a week and receive at least a minimum wage 
11.8 	for all hours worked are eligible for continued child care assistance for employment. For 
11.9 	purposes of this section, work-study programs must be counted as employment. Child care 
11.10 	assistance during employment must be authorized as provided in paragraphs (c) and (d).
11.11 	(c) When the person works for an hourly wage and the hourly wage is equal to or 
11.12 	greater than the applicable minimum wage, child care assistance shall be provided for the 
11.13 	actual hours of employment, break, and mealtime during the employment and travel time 
11.14 	up to two hours per day.
11.15 	(d) When the person does not work for an hourly wage, child care assistance must be 
11.16 	provided for the lesser of:
11.17 	(1) the amount of child care determined by dividing gross earned income by the 
11.18 	applicable minimum wage, up to one hour every eight hours for meals and break time, 
11.19 	plus up to two hours per day for travel time; or
11.20 	(2) the amount of child care equal to the actual amount of child care used during 
11.21 	employment, including break and mealtime during employment, and travel time up to 
11.22 	two hours per day.
11.23 		Subd. 1a.Assistance for persons participating in employment or family 
11.24 	stabilization plan. The following persons are also eligible for child care assistance:
11.25 	(1) persons who are participating in work, job search, job support, employment, or 
11.26 	training activities as required in their job search support or employment plan or in appeals, 
11.27 	hearings, assessments, or orientations according to chapter 256J;
11.28 	(2) persons who are participating in social services activities under chapter 256J as 
11.29 	required in their employment plan approved according to chapter 256J;
11.30 	(3) families who are participating in programs as required in tribal contracts under 
11.31 	section 119B.02, subdivision 2, or 256.01, subdivision 2; and
11.32 	(4) persons who are participating in services or activities that are included in an 
11.33 	approved family stabilization plan under section 256J.575.
11.34 		Subd. 2.Financial eligibility required. Persons participating in employment 
11.35 	programs, training programs, or education programs are eligible for continued assistance 
12.1 	from the child care fund, if they are financially eligible under the sliding fee scale set 
12.2 	by the commissioner in section 119B.12. 
12.3 		Subd. 3.Child care assistance during education. (a) The following persons are 
12.4 	eligible for child care assistance for education or training:
12.5 	(1) persons who meet the requirements of section 119B.09 who are enrolled in 
12.6 	remedial or basic education or English as a second language, or persons up to the age of 
12.7 	19 who are enrolled in an educational program to attain a high school diploma or general 
12.8 	equivalency diploma;
12.9 	(2) persons who meet the requirements of this section and section 119B.09 who 
12.10 	receive child care assistance to reduce the costs of child care for education when employed 
12.11 	an average of at least ten hours per week under subdivision 1, and are not receiving 
12.12 	MFIP benefits; and
12.13 	(3) persons who meet the requirements of this section and section 119B.09 who 
12.14 	receive child care assistance to reduce the costs of child care for education when enrolled 
12.15 	in a postsecondary educational institution as a full-time undergraduate student, and are not 
12.16 	receiving MFIP benefits.
12.17 	(b) Notwithstanding subdivisions 5 and 6, assistance for persons under paragraph 
12.18 	(a), clause (3), is limited to 48 months or the length of time necessary to complete the 
12.19 	degree, whichever is shorter.
12.20 		Subd. 4.Satisfactory progress. Students enrolled in an education program must 
12.21 	be making satisfactory progress toward completion of the program as stipulated in the 
12.22 	school's satisfactory progress policy.
12.23 		Subd. 5.Limiting duration of training. Counties may not limit the duration of 
12.24 	child care subsidies for a person in an employment or educational program, except when 
12.25 	the person is found to be ineligible under the child care fund eligibility standards. Any 
12.26 	limitation must be based on a person's employment or family stabilization plan in the case 
12.27 	of an MFIP participant.
12.28 		Subd. 6.Maximum length of time for training. The maximum length of time a 
12.29 	participant is eligible for child care assistance under the child care fund for education and 
12.30 	training is no more than the maximum time allowed to complete the credit requirements 
12.31 	for an associate or baccalaureate degree as stipulated in the school's satisfactory progress 
12.32 	policy. This length of time excludes basic or remedial education programs, English as 
12.33 	a second language, high school, and general equivalency diploma programs needed to 
12.34 	prepare for postsecondary education or employment.
12.35 		Subd. 7.MFIP student moves to another county. If an MFIP participant who is 
12.36 	receiving child care assistance under this chapter moves to another county, continues 
13.1 	to participate in educational or training programs authorized in the MFIP participant's 
13.2 	employment or family stabilization plan, and continues to be eligible for child care 
13.3 	assistance under this chapter, the MFIP participant must receive continued child care 
13.4 	assistance from the county responsible for the MFIP participant's current employment or 
13.5 	family stabilization plan under section 256G.07.

13.6 	Sec. 14. Minnesota Statutes 2014, section 119B.11, subdivision 1, is amended to read:
13.7 		Subdivision 1.County contributions required. (a) In addition to payments from 
13.8 	basic sliding fee child care assistance program participants, each county shall contribute 
13.9 	from county tax or other sources a fixed local match equal to its calendar year 1996 
13.10 	required county contribution reduced by the administrative funding loss that would have 
13.11 	occurred in state fiscal year 1996 under section 119B.15. The commissioner shall recover 
13.12 	funds from the county as necessary to bring county expenditures into compliance with this 
13.13 	subdivision. The commissioner may accept county contributions, including contributions 
13.14 	above the fixed local match, in order to make state payments.
13.15 	(b) The commissioner may accept payments from counties to:
13.16 	(1) fulfill the county contribution as required under subdivision 1;
13.17 	(2) pay for services authorized under this chapter beyond those paid for with federal 
13.18 	or state funds or with the required county contributions; or
13.19 	(3) pay for child care services in addition to those authorized under this chapter, as 
13.20 	authorized under other federal, state, or local statutes or regulations.
13.21 	(c) The county payments must be deposited in an account in the special revenue 
13.22 	fund. Money in this account is appropriated to the commissioner for child care assistance 
13.23 	under this chapter and other applicable statutes and regulations and is in addition to other 
13.24 	state and federal appropriations.

13.25 	Sec. 15. Minnesota Statutes 2014, section 119B.12, subdivision 2, is amended to read:
13.26 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period. 
13.27 	A family's parent fee must be a fixed percentage of its annual gross income. Parent fees 
13.28 	must apply to families eligible for child care assistance under sections 119B.03 and 
13.29 	119B.05 section 119B.09. Income must be as defined in section 119B.011, subdivision 15. 
13.30 	The fixed percent is based on the relationship of the family's annual gross income to 100 
13.31 	percent of the annual state median income. Parent fees must begin at 75 percent of the 
13.32 	poverty level. The minimum parent fees for families between 75 percent and 100 percent 
13.33 	of poverty level must be $2 per biweekly period. Parent fees must provide for graduated 
13.34 	movement to full payment. Payment of part or all of a family's parent fee directly to the 
14.1 	family's child care provider on behalf of the family by a source other than the family shall 
14.2 	not affect the family's eligibility for child care assistance, and the amount paid shall be 
14.3 	excluded from the family's income. Child care providers who accept third-party payments 
14.4 	must maintain family specific documentation of payment source, amount, and time period 
14.5 	covered by the payment.

14.6 	Sec. 16. Minnesota Statutes 2014, section 119B.13, subdivision 1, is amended to read:
14.7 		Subdivision 1.Subsidy restrictions. (a) Beginning February 3, 2014 July 1, 
14.8 	2015, the maximum rate paid for child care assistance in any county or county price 
14.9 	cluster under the child care fund shall be the greater of the 25th percentile of the 2011 
14.10 	child care provider rate survey or the maximum rate effective November 28, 2011. The 
14.11 	commissioner may: (1) assign a county with no reported provider prices to a similar price 
14.12 	cluster; and (2) consider county level access when determining final price clusters is the 
14.13 	75th percentile rate for like-care arrangements as surveyed by the commissioner in the 
14.14 	most current market rate survey.
14.15 	(b) A rate which includes a special needs rate paid under subdivision 3 may be in 
14.16 	excess of the maximum rate allowed under this subdivision.
14.17 	(c) The department shall monitor the effect of this paragraph on provider rates. The 
14.18 	county shall pay the provider's full charges for every child in care up to the maximum 
14.19 	established. The commissioner shall determine the maximum rate for each type of care 
14.20 	on an hourly, full-day, and weekly basis, including special needs and disability care. The 
14.21 	maximum payment to a provider for one day of care must not exceed the daily rate. The 
14.22 	maximum payment to a provider for one week of care must not exceed the weekly rate.
14.23 	(d) Child care providers receiving reimbursement under this chapter must not be 
14.24 	paid activity fees or an additional amount above the maximum rates for care provided 
14.25 	during nonstandard hours for families receiving assistance.
14.26 	(e) When the provider charge is greater than the maximum provider rate allowed, 
14.27 	the parent is responsible for payment of the difference in the rates in addition to any 
14.28 	family co-payment fee.
14.29 	(f) All maximum provider rates changes shall be implemented on the Monday 
14.30 	following the effective date of the maximum provider rate.
14.31 	(g) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum 
14.32 	registration fees in effect on January 1, 2013, shall remain in effect.

14.33 	Sec. 17. Minnesota Statutes 2014, section 119B.15, is amended to read:
14.34 	119B.15 ADMINISTRATIVE EXPENSES.
15.1 	The commissioner shall use up to 1/21 of the state and federal funds available for the 
15.2 	basic sliding fee program and 1/21 of the state and federal funds available for the MFIP
15.3 	child care assistance program for payments to counties for administrative expenses the 
15.4 	administrative costs of the delivery of direct services. The commissioner shall make 
15.5 	monthly payments to each county based on direct service expenditures. Payments may be 
15.6 	withheld if monthly reports are incomplete or untimely.

15.7 	Sec. 18. Minnesota Statutes 2014, section 119B.24, is amended to read:
15.8 	119B.24 DUTIES OF COMMISSIONER.
15.9 	In addition to the powers and duties already conferred by law, the commissioner 
15.10 	of human services shall:
15.11 	(1) administer the child care fund, including the basic sliding fee program authorized 
15.12 	under sections 119B.011 to 119B.16;
15.13 	(2) monitor the child care resource and referral programs established under section 
15.14 	119B.19; and
15.15 	(3) encourage child care providers to participate in a nationally recognized 
15.16 	accreditation system for early childhood and school-age care programs. Subject 
15.17 	to approval by the commissioner, family child care providers and early childhood 
15.18 	and school-age care programs shall be reimbursed for one-half of the direct cost of 
15.19 	accreditation fees, upon successful completion of accreditation.

15.20 	Sec. 19. DIRECTION TO COMMISSIONER OF MANAGEMENT AND 
15.21 	BUDGET.
 15.22 	The state obligation for the child care assistance program under Minnesota Statutes, 
15.23 	chapter 119B, must be included in the Department of Management and Budget February 
15.24 	and November forecast of state revenues and expenditures under Minnesota Statutes, 
15.25 	section 16A.103, beginning with the November 2016 forecast.

15.26 	Sec. 20. REVISOR'S INSTRUCTION.
 15.27 	(a) In the next edition of Minnesota Statutes and Minnesota Rules, the revisor shall 
15.28 	renumber the statutory section in column A with the section in column B, and make 
15.29 	necessary cross-reference changes consistent with the renumbering:

15.30		Column A
	Column B
	
15.31		119B.035
	119B.105
	
15.32		119B.05, subd. 4
	119B.03, subd. 11
	
15.33		119B.05, subd. 5
	119B.03, subd. 12
	
16.1 	(b) The revisor of statutes shall correct internal cross-references to sections resulting 
16.2 	from the repealer in section 21. The revisor may make changes necessary to correct the 
16.3 	punctuation, grammar, or structure of the remaining text and preserve its meaning.

16.4 	Sec. 21.  REPEALER.
 16.5 	Minnesota Statutes 2014, sections 119B.011, subdivisions 20 and 20a; 119B.03, 
16.6 	subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8; 119B.05, subdivision 1; 119B.07; 119B.09, 
16.7 	subdivisions 3 and 4a; and 119B.11, subdivision 4, are repealed.

16.8 	ARTICLE 4
16.9 	WORKING FAMILY TAX CREDIT

16.10 	Section 1. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1, 
16.11 	is amended to read:
16.12 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
16.13 	allowed a credit against the tax imposed by this chapter equal to a percentage 120 percent
16.14 	of earned income. To receive a credit, a taxpayer must be eligible for a the credit for which 
16.15 	the individual is eligible under section 32 of the Internal Revenue Code.
16.16 	(b) For individuals with no qualifying children, the credit equals 2.10 percent of the 
16.17 	first $6,180 of earned income. The credit is reduced by 2.01 percent of earned income 
16.18 	or adjusted gross income, whichever is greater, in excess of $8,130, but in no case is 
16.19 	the credit less than zero.
16.20 	(c) For individuals with one qualifying child, the credit equals 9.35 percent of the 
16.21 	first $11,120 of earned income. The credit is reduced by 6.02 percent of earned income 
16.22 	or adjusted gross income, whichever is greater, in excess of $21,190, but in no case is 
16.23 	the credit less than zero.
16.24 	(d) For individuals with two or more qualifying children, the credit equals 11 percent 
16.25 	of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned 
16.26 	income or adjusted gross income, whichever is greater, in excess of $25,130, but in no 
16.27 	case is the credit less than zero.
16.28 	(e) (b) For a part-year resident, the credit must be allocated based on the percentage 
16.29 	calculated under section 290.06, subdivision 2c, paragraph (e).
16.30 	(f) (c) For a person who was a resident for the entire tax year and has earned income 
16.31 	not subject to tax under this chapter, including income excluded under section 290.01, 
16.32 	subdivision 19b, clause (9), the credit must be allocated based on the ratio of federal 
16.33 	adjusted gross income reduced by the earned income not subject to tax under this chapter 
16.34 	over federal adjusted gross income. For purposes of this paragraph, the subtractions 
17.1 	for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not 
17.2 	considered "earned income not subject to tax under this chapter."
17.3 	For the purposes of this paragraph, the exclusion of combat pay under section 112 
17.4 	of the Internal Revenue Code is not considered "earned income not subject to tax under 
17.5 	this chapter."
17.6 	(g) For tax years beginning after December 31, 2007, and before December 31, 
17.7 	2010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b), 
17.8 	the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for 
17.9 	inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint 
17.10 	returns. For tax years beginning after December 31, 2008, the commissioner shall annually 
17.11 	adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f) 
17.12 	of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be 
17.13 	substituted for the word "1992." For 2009, the commissioner shall then determine the 
17.14 	percent change from the 12 months ending on August 31, 2007, to the 12 months ending on 
17.15 	August 31, 2008, and in each subsequent year, from the 12 months ending on August 31, 
17.16 	2007, to the 12 months ending on August 31 of the year preceding the taxable year. The 
17.17 	earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the 
17.18 	amount ends in $5, the amount is rounded up to the nearest $10. The determination of the 
17.19 	commissioner under this subdivision is not a rule under the Administrative Procedure Act.
17.20 	(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014, 
17.21 	the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph (d), 
17.22 	after being adjusted for inflation under subdivision 7, are increased by $5,340 for married 
17.23 	taxpayers filing joint returns; and (2) for tax years beginning after December 31, 2013, and 
17.24 	before January 1, 2018, the $8,130 in paragraph (b), the $21,190 in paragraph (c), and the 
17.25 	$25,130 in paragraph (d), after being adjusted for inflation under subdivision 7, are each 
17.26 	increased by $5,000 for married taxpayers filing joint returns. For tax years beginning 
17.27 	after December 31, 2010, and before January 1, 2012, and for tax years beginning after 
17.28 	December 31, 2013, and before January 1, 2018, the commissioner shall annually adjust 
17.29 	the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of 
17.30 	the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be 
17.31 	substituted for the word "1992." For 2011, the commissioner shall then determine the 
17.32 	percent change from the 12 months ending on August 31, 2008, to the 12 months ending on 
17.33 	August 31, 2010, and in each subsequent year, from the 12 months ending on August 31, 
17.34 	2008, to the 12 months ending on August 31 of the year preceding the taxable year. The 
17.35 	earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the 
18.1 	amount ends in $5, the amount is rounded up to the nearest $10. The determination of the 
18.2 	commissioner under this subdivision is not a rule under the Administrative Procedure Act.
18.3 	(i) (d) The commissioner shall construct tables showing the amount of the credit 
18.4 	at various income levels and make them available to taxpayers. The tables shall follow 
18.5 	the schedule contained in this subdivision, except that the commissioner may graduate 
18.6 	the transition between income brackets.

18.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
18.8 	December 31, 2016.

18.9 	Sec. 2.  REPEALER.
 18.10 	Minnesota Statutes 2014, section 290.0671, subdivision 7, is repealed.

18.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
18.12 	December 31, 2016.

18.13 	ARTICLE 5
18.14 	MINNESOTA EMERGENCY EMPLOYMENT DEVELOPMENT

18.15 	Section 1. CITATION.
18.16 	Sections 1 to 14 may be cited as the "Minnesota Emergency Employment 
18.17 	Development (MEED) Act of 2016."

18.18 	Sec. 2. DEFINITIONS.
18.19 		Subdivision 1.Terms. For the purposes of sections 1 to 14, the following terms 
18.20 	have the meanings given them.
18.21 		Subd. 2.Commissioner. "Commissioner" means the commissioner of employment 
18.22 	and economic development.
18.23 		Subd. 3.Department. "Department" means the Department of Employment and 
18.24 	Economic Development.
18.25 		Subd. 4.Eligible business. "Eligible business" means a for-profit business.
18.26 		Subd. 5.Eligible employer. "Eligible employer" means an eligible government 
18.27 	agency, an eligible nonprofit agency, or an eligible business.
18.28 		Subd. 6.Eligible government agency. "Eligible government agency" means a 
18.29 	county, municipality, school district, or other local governmental subdivision.
18.30 		Subd. 7.Eligible job applicant. "Eligible job applicant" means a person who:
18.31 	(1) has been a resident of this state for at least six months;
18.32 	(2) is unemployed;
19.1 	(3) has attempted to secure a nonsubsidized job by completing a comprehensive job 
19.2 	search program administered by a county or workforce service area;
19.3 	(4) is not receiving and is not eligible to receive unemployment compensation or 
19.4 	workers' compensation; and
19.5 	(5) is determined by the employment administrator to be likely to be available for 
19.6 	employment by an eligible employer for the duration of the job.
19.7 		Subd. 8.Eligible nonprofit agency. "Eligible nonprofit agency" means an 
19.8 	organization exempt from taxation under the Internal Revenue Code of 1986, section 
19.9 	501(c)(3), as amended.
19.10 		Subd. 9.Employment administrator. "Employment administrator" means the 
19.11 	administrative entity designated by the commissioner to administer the provisions of this 
19.12 	act in each workforce service area.
19.13 		Subd. 10.Household. "Household" means an individual, the individual's spouse, 
19.14 	and any person considered a dependent under sections 151 and 152 of the Internal 
19.15 	Revenue Code domiciled at the same address.
19.16 		Subd. 11.Program. "Program" means the Minnesota emergency employment 
19.17 	development program created by sections 1 to 14, consisting of temporary employment 
19.18 	projects in the government and nonprofit agencies and new permanent job creation in 
19.19 	the private sector.
19.20 		Subd. 12.Workforce service area. "Workforce service area" means an area 
19.21 	designated as a workforce service area under Minnesota Statutes, section 116L.666.

19.22 	Sec. 3. DUTIES OF COMMISSIONER.
19.23 		Subdivision 1.Duties. The commissioner shall administer the provisions of sections 
19.24 	1 to 14. The commissioner shall:
19.25 	(1) enter into contracts with the workforce service areas within 30 days of enactment;
19.26 	(2) review the emergency employment development plan submitted by the 
19.27 	employment administrator of each workforce service area and approve satisfactory plans. 
19.28 	If an employment administrator submits an unsatisfactory plan, the department shall assist 
19.29 	the employment administrator in developing a satisfactory one;
19.30 	(3) coordinate the program with other state agencies;
19.31 	(4) coordinate administration of the program with the Minnesota family investment 
19.32 	program under Minnesota Statutes, chapter 256J;
19.33 	(5) set policies regarding disbursement of program funds;
19.34 	(6) perform general program marketing and monitoring functions; and
20.1 	(7) apply to the federal government for a waiver allowing Minnesota to use extended 
20.2 	unemployment insurance benefits for wage subsidies and seek federal funding for this 
20.3 	program.
20.4 		Subd. 2.Enforcement. The commissioner shall ensure that all eligible employers 
20.5 	and employment administrators comply with sections 1 to 14 and all other applicable state 
20.6 	and federal laws, including those relating to:
20.7 	(1) affirmative action;
20.8 	(2) occupational health and safety standards;
20.9 	(3) environmental standards; and
20.10 	(4) fair labor practices.
20.11 		Subd. 3.Report to governor and legislature. The commissioner shall report 
20.12 	semiannually to the chairs of the standing committees of the house of representatives 
20.13 	and senate having jurisdiction over employment and economic development issues and 
20.14 	to the governor on:
20.15 	(1) the number of persons employed under the program;
20.16 	(2) the number and type of employers under the program;
20.17 	(3) the amount of money spent in each service delivery area for wages for each type 
20.18 	of employment and each type of other expense;
20.19 	(4) the number of persons who have completed participation in the program and their 
20.20 	current employment, educational, or training status; and
20.21 	(5) any other information deemed pertinent by the commissioner.
20.22 		Subd. 4.Rules. The commissioner may adopt rules necessary to implement the 
20.23 	Minnesota emergency employment development program.

20.24 	Sec. 4. ALLOCATION OF FUNDS AMONG WORKFORCE SERVICE AREAS.
20.25 	(a) Ninety percent of the funds available for allocation to employment administrators 
20.26 	for the program must be allocated among eligible workforce service areas. Workforce 
20.27 	service areas are eligible to receive that proportion of the funds available which equals 
20.28 	the number of unemployed persons in the workforce service area divided by the total 
20.29 	number of unemployed persons in the state for the 12-month period ending with the 
20.30 	most recent March 31.
20.31 	(b) Ten percent of the funds available for allocation to employment administrators 
20.32 	under the program must be allocated at the discretion of the commissioner to employment 
20.33 	administrators:
21.1 	(1) who will maximize the use of the funds through coordination with other 
21.2 	programs and state, local, and federal agencies, through the use of matching funds or 
21.3 	through the involvement of low-income constituent groups;
21.4 	(2) who have demonstrated need beyond the allocation available under paragraph 
21.5 	(a); or
21.6 	(3) who have demonstrated outstanding performance in job creation.

21.7 	Sec. 5. ALLOCATION WITHIN WORKFORCE SERVICE AREAS; 
21.8 	PRIORITIES.
21.9 		Subdivision 1.Among job applicants. Allocation of funds among eligible job 
21.10 	applicants within a workforce service area shall be determined by the employment 
21.11 	administrator in each workforce service area. The employment administrator shall give 
21.12 	priority to:
21.13 	(1) applicants living in households with no other income source;
21.14 	(2) applicants who would otherwise be eligible to participate in the Minnesota 
21.15 	family investment program or the diversionary work program; and
21.16 	(3) veterans as defined under Minnesota Statutes, section 196.21, subdivision 2.
21.17 		Subd. 2.Among employers. The employment administrator within each workforce 
21.18 	service area shall determine allocation of funds among eligible employers within 
21.19 	a workforce service area according to the priorities in section 9. The employment 
21.20 	administrator shall give priority to funding private sector jobs to the extent that eligible 
21.21 	businesses apply for funds. No more than 50 percent of the funds may be allocated for 
21.22 	jobs with eligible government and nonprofit agencies during the biennium.

21.23 	Sec. 6. USE OF FUNDS.
21.24 		Subdivision 1.Allowable uses of funds. Funds appropriated for the purposes of 
21.25 	sections 1 to 14 may be used as follows:
21.26 	(1) to provide a state contribution for wages and fringe benefits for eligible job 
21.27 	applicants for a maximum of 1,040 hours over a maximum period of 26 weeks per job 
21.28 	applicant. For eligible job applicants participating in a job training program, the state 
21.29 	contribution for wages may be used for a maximum period of 26 weeks per job applicant. 
21.30 	The employer must pay at least $12 per hour to each eligible employee. The state 
21.31 	contribution for wages shall be 50 percent of the first $12 per hour of the wage for each 
21.32 	eligible job applicant employed by an eligible employer. The employer may use funds 
21.33 	from other sources to provide increased wages to the applicants it employs. At least 70 
22.1 	percent of the funds appropriated for the program must be used to pay wages for eligible 
22.2 	job applicants;
22.3 	(2) to reimburse the department in an amount not to exceed one percent of the funds 
22.4 	appropriated for the actual cost of administering sections 1 to 14;
22.5 	(3) to reimburse the employment administrators in an amount not to exceed 14 
22.6 	percent of the funds appropriated for the actual cost of program operations. Of the 14 
22.7 	percent, no more than ten percent may be used for administrative costs for workforce 
22.8 	service areas as defined under the Workforce Investment Act. The commissioner and 
22.9 	the employment administrators shall reallocate funds from other sources to cover the 
22.10 	administrative costs of this program whenever possible;
22.11 	(4) to provide child care services or subsidies to applicants employed under sections 
22.12 	1 to 14;
22.13 	(5) to provide workers' compensation coverage to applicants employed by 
22.14 	government or nonprofit agencies under sections 1 to 14;
22.15 	(6) to provide job search assistance, labor market orientation, job seeking skills, 
22.16 	and referral for other services; and
22.17 	(7) to purchase supplies and materials for projects creating permanent improvements 
22.18 	to public property in an amount not to exceed one percent of the funds appropriated.
22.19 		Subd. 2.Cancellation and reallocation. Any funds allocated to the workforce 
22.20 	service area for which there is no spending plan approved by the commissioner or 
22.21 	which are significantly underspent in the reporting period shall cancel back to the 
22.22 	Minnesota emergency employment development account and must be reallocated by the 
22.23 	commissioner to other employment administrators.

22.24 	Sec. 7. EMPLOYMENT ADMINISTRATORS; POWERS AND DUTIES.
22.25 		Subdivision 1.In general. The employment administrator for each workforce 
22.26 	service area has the powers and duties given in this section and any additional duties 
22.27 	given by the commissioner.
22.28 		Subd. 2.Employment plan. Each employment administrator shall develop an 
22.29 	emergency employment development plan for the workforce service area under guidelines 
22.30 	developed by the commissioner and submit it to the commissioner within the period 
22.31 	allowed by the commissioner. To the extent feasible, the employment administrator shall 
22.32 	seek input from potential eligible employers and the public.
22.33 		Subd. 3.Outreach. Each employment administrator shall publicize the program 
22.34 	within the workforce service area to seek maximum participation by eligible job applicants 
22.35 	and employers.
23.1 		Subd. 4.Contracts. Each employment administrator shall enter into contracts with 
23.2 	eligible employers setting forth the terms of their participation in the program as required 
23.3 	by sections 1 to 14.
23.4 		Subd. 5.Screening and coordination. Each employment administrator shall screen 
23.5 	job applicants and employers to achieve the best possible placement of eligible job 
23.6 	applicants with eligible employers.
23.7 		Subd. 6.Eligible job applicant priority lists. Each employment administrator 
23.8 	shall maintain a list of eligible job applicants unable to secure employment under the 
23.9 	program at the time of application. The list shall prioritize eligible job applicants pursuant 
23.10 	to section 5, subdivision 1, and shall be used to fill jobs with eligible employers as they 
23.11 	become available.
23.12 		Subd. 7.Coordination of education and training programs. Each employment 
23.13 	administrator shall cooperate with local educational and training institutions to coordinate 
23.14 	and publicize the availability of their resources to assure that applicants may receive 
23.15 	training needed before or while employed in jobs which are available under the program.
23.16 		Subd. 8.Materials. Each employment administrator may disburse funds not to 
23.17 	exceed one percent of the amount allocated to the service delivery area for the purchase of 
23.18 	supplies and materials for projects creating permanent improvements to public property.

23.19 	Sec. 8. ELIGIBLE GOVERNMENT AND NONPROFIT AGENCY 
23.20 	EMPLOYMENT.
23.21 	A government or nonprofit agency is an eligible employer with respect to temporary 
23.22 	employment projects that are determined by the employment administrator to have 
23.23 	long-term benefit to or are needed by the community, including but not limited to jobs 
23.24 	in permanent public improvement projects, residential or public building weatherization 
23.25 	projects, reforestation projects, mineland reclamation projects, planting or tree trimming 
23.26 	projects, soil conservation projects, natural resource development projects, and community 
23.27 	social service programs such as child care and home health care.

23.28 	Sec. 9. BUSINESS EMPLOYMENT.
23.29 		Subdivision 1.Eligible businesses. A business employer is an eligible employer if 
23.30 	it enters into a written contract with the employment administrator in its workforce service 
23.31 	area and includes in the contract assurances that:
23.32 	(1) funds received by a business shall be used only as permitted under sections 1 to 14;
23.33 	(2) the business has submitted a plan to the employment administrator:
24.1 	(i) describing the duties and proposed compensation of each employee proposed to 
24.2 	be hired under the program; and
24.3 	(ii) demonstrating that, with the funds provided under sections 1 to 14, the business 
24.4 	is likely to succeed and continue to employ persons hired under the program;
24.5 	(3) the business will use funds exclusively for compensation and fringe benefits of 
24.6 	eligible job applicants and will provide employees hired with these funds with fringe 
24.7 	benefits and other terms and conditions of employment comparable to those provided to 
24.8 	other employees of the business who do comparable work;
24.9 	(4) the funds are necessary to allow the business to begin operation, or to employ 
24.10 	additional people, but not to fill positions which would be filled even in the absence of 
24.11 	funds from this program;
24.12 	(5) the business will cooperate with the commissioner and the employment 
24.13 	administrator in collecting data to assess the results of the program; and
24.14 	(6) the business is in compliance with all applicable affirmative action, fair labor, 
24.15 	health, safety, and environmental standards.
24.16 		Subd. 2.Priorities. In allocating funds among eligible businesses, the employment 
24.17 	administrator shall give priority to businesses which best satisfy the following criteria:
24.18 	(1) have a high potential for growth and long-term job creation;
24.19 	(2) are labor intensive;
24.20 	(3) meet the definition of a small business as defined in Minnesota Statutes, section 
24.21 	645.445;
24.22 	(4) make high use of local and Minnesota resources;
24.23 	(5) are under ownership of women or minorities;
24.24 	(6) make extensive use of new technology;
24.25 	(7) produce energy conserving materials or services or are involved in development 
24.26 	of renewable sources of energy; and
24.27 	(8) have their primary place of business in Minnesota.
24.28 		Subd. 3.Employer accountability. (a) A business receiving funds under this 
24.29 	program is expected to retain employees at least six months beyond the initial six-month 
24.30 	subsidized period. In the event an employer terminates participation in the subsidy program 
24.31 	during the initial six-month subsidy phase for any participant, the employer shall pay back 
24.32 	20 percent of the subsidies received to date. In the event an employer has not retained 
24.33 	a participant at least 90 days beyond the subsidy phase, the employer shall pay back 20 
24.34 	percent of the wage subsidies received. In the event a business employer has retained a 
24.35 	participant 180 days beyond the subsidy period, a business employer shall be eligible for a 
24.36 	bonus equivalent to $2 per hour for the hours the participant worked during those 180 days.
25.1 	(b) If an employer dismisses an employee for good cause or the employee chooses to 
25.2 	leave the position and the employer works in good faith with the program administrator 
25.3 	to employ and train another person referred by the employment administrator, the 
25.4 	accountability conditions shall apply as if the original participant had fulfilled the 
25.5 	employment timeline.

25.6 	Sec. 10. MINNESOTA EMERGENCY EMPLOYMENT DEVELOPMENT 
25.7 	ACCOUNT.
25.8 	The Minnesota emergency employment development account is created in the state 
25.9 	treasury. All payments from businesses under section 9 shall be deposited in this account, 
25.10 	and all funds in the account are appropriated to the commissioner of employment and 
25.11 	economic development for the purpose of making disbursements pursuant to section 6.

25.12 	Sec. 11. WORKER DISPLACEMENT PROHIBITED.
25.13 		Subdivision 1.Layoffs; work reductions. An eligible employer may not terminate, 
25.14 	lay off, or reduce the working hours of an employee for the purpose of hiring an individual 
25.15 	with funds available under sections 1 to 14.
25.16 		Subd. 2.Hiring during layoffs. An eligible employer may not hire an individual 
25.17 	with funds available under sections 1 to 14 if any other person has been laid off from the 
25.18 	same or a substantially equivalent job within the previous six months.
25.19 		Subd. 3.Employer certification. In order to qualify as an eligible employer, a 
25.20 	government or nonprofit agency or business must certify to the employment administrator 
25.21 	that each job created and funded under sections 1 to 14:
25.22 	(1) will result in an increase in employment opportunities over those which would 
25.23 	otherwise be available;
25.24 	(2) will not result in the displacement of currently employed workers, including 
25.25 	partial displacement such as reduction in hours of nonovertime work, wages, or 
25.26 	employment benefits; and
25.27 	(3) will not impair existing contracts for service or result in the substitution of 
25.28 	program funds for other funds in connection with work that would otherwise be performed.

25.29 	Sec. 12. TERMINATION; NOTIFICATION.
25.30 	(a) On the date the program is terminated, any balance remaining in the Minnesota 
25.31 	emergency employment development account established under section 10 shall cancel 
25.32 	to the general fund. Any payments received under section 10 on or after that date shall 
25.33 	be deposited in the general fund.
26.1 	(b) The commissioner shall immediately terminate the Minnesota emergency 
26.2 	employment development program if and when none of the money appropriated under 
26.3 	section 13 remains.

26.4 	Sec. 13. APPROPRIATION.
 26.5 	$200,000,000 in fiscal year 2017 is appropriated from the general fund to the 
26.6 	commissioner for deposit in the Minnesota emergency employment development account 
26.7 	for the Minnesota Emergency Employment Development (MEED) Act of 2016. Any 
26.8 	unexpended balance remaining at the end of the fiscal year does not cancel and is available 
26.9 	until expended.

26.10 	Sec. 14. EFFECTIVE DATE.
 26.11 	This article is effective the day following final enactment.