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Capital IconMinnesota Legislature

HF 2536

as introduced - 88th Legislature (2013 - 2014) Posted on 03/05/2014 04:15pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to women's economic security; promoting the economic self-sufficiency
of women; reducing gender segregation in the workforce; reducing the gender
pay gap through the participation of women in high-wage, high-demand,
nontraditional occupations; establishing a Women and Nontraditional Jobs Grant
Program; modifying eligibility for unemployment benefits when applicant is a
victim of sexual assault or stalking; creating a women entrepreneurs business
development competitive grant program; modifying medical assistance asset
availability requirements; providing for pregnancy and parenting leave; requiring
pregnancy accommodations; providing for earned sick and safe time; requiring
certificates of pay equity compliance as a condition for certain state contracts;
classifying data; protecting wage disclosure; prohibiting retaliation; prohibiting
discrimination in employment based on status as a family caregiver; clarifying
unfair employment practices related to nursing mothers; forecasting the basic
sliding fee child care assistance program; modifying child care assistance
provider reimbursement rates; early learning; expanding the availability of early
learning scholarships; requiring a report; authorizing rulemaking; appropriating
money; amending Minnesota Statutes 2012, sections 13.552, by adding a
subdivision; 116L.98; 119B.02, subdivisions 1, 2; 119B.03, subdivision 9;
119B.035, subdivisions 1, 4; 119B.05, subdivision 5; 119B.08, subdivision
3; 119B.09, subdivision 4a; 119B.231, subdivision 5; 177.24, subdivision 1;
181.939; 181.940, subdivision 2; 181.941; 181.943; 256.017, subdivision 9;
256B.059, subdivision 5; 268.095, subdivisions 1, 6, by adding a subdivision;
363A.03, by adding a subdivision; 363A.08, subdivisions 1, 2, 3, 4, by adding
a subdivision; 504B.001, by adding subdivisions; 504B.171, subdivision 1;
504B.206, subdivisions 1, 3, by adding a subdivision; 504B.285, subdivision
1; Minnesota Statutes 2013 Supplement, sections 116L.665, subdivision 2;
119B.011, subdivision 19b; 119B.05, subdivision 1; 119B.13, subdivision 1;
124D.165, subdivision 3; proposing coding for new law in Minnesota Statutes,
chapters 16A; 16C; 116L; 181; 363A; repealing Minnesota Statutes 2012,
sections 119B.011, subdivision 20a; 119B.03, subdivisions 1, 2, 5, 6, 6a, 6b, 8;
119B.09, subdivision 3; 504B.206, subdivisions 4, 6; Minnesota Statutes 2013
Supplement, sections 119B.03, subdivision 4; 181.9413; Minnesota Rules, parts
3400.0020, subpart 8; 3400.0030; 3400.0060, subparts 2, 4, 6, 6a, 7.

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

ARTICLE 1

WOMEN'S ECONOMIC SECURITY ACT

Section 1. new text begin CITATION; WOMEN'S ECONOMIC SECURITY ACT.
new text end

new text begin This act shall be known as the Women's Economic Security Act.
new text end

ARTICLE 2

ECONOMIC SECURITY

Section 1.

Minnesota Statutes 2012, section 13.552, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Certificates of compliance. new text end

new text begin Access to data relating to certificates of pay
equity compliance is governed by sections 16C.37 and 363A.44.
new text end

Sec. 2.

new text begin [16A.066] MINNESOTA SECURE CHOICE RETIREMENT SAVINGS
BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin There is established the Minnesota Secure Choice
Retirement Savings Board to study and develop recommendations for the creation of a
Minnesota Secure Choice Retirement Savings Plan with the goals of:
new text end

new text begin (1) promoting greater retirement income for private employees;
new text end

new text begin (2) maximizing participation by private employees who have no access to retirement
savings through their place of work by minimizing barriers to participation;
new text end

new text begin (3) minimizing fees;
new text end

new text begin (4) portability across private employers; and
new text end

new text begin (5) providing for stable income throughout retirement without incurring state
liability for the payment of benefits.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The board shall have nine members and shall be
composed of the commissioner of management and budget or a designee, who shall serve
as chair, and the following members:
new text end

new text begin (1) four members appointed by the governor;
new text end

new text begin (2) two members appointed by the speaker of the house who are not members of
the legislature; and
new text end

new text begin (3) two members appointed by the majority leader of the senate who are not
members of the legislature.
new text end

new text begin (b) Of the four members appointed under paragraph (a), clause (1):
new text end

new text begin (1) one must have retirement savings or investment expertise;
new text end

new text begin (2) one must represent an employer with between five and 50 employees; and
new text end

new text begin (3) one must be an employee without access to an employer-sponsored retirement
savings plan.
new text end

new text begin Subd. 3. new text end

new text begin Appointments; membership terms. new text end

new text begin (a) Section 15.0597 shall apply to all
appointments and filling of vacancies, except for the commissioner.
new text end

new text begin (b) Membership terms, compensation, and removal of members are as provided
in section 15.0575.
new text end

new text begin (c) Initial appointments to the board must be made by July 1, 2014.
new text end

new text begin (d) Initial terms are as follows:
new text end

new text begin (1) for members appointed under paragraph (a), clause (1), the governor shall
designate two to an initial term of two years and two to an initial term of four years;
new text end

new text begin (2) for members appointed under paragraph (a), clause (2), the speaker of the house
shall designate one to an initial term of one year and two to an initial term of three years; and
new text end

new text begin (3) for members appointed under paragraph (a), clause (3), the majority leader of
the senate shall designate one to an initial term of one year and two to an initial term
of three years.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin The board must report the following no later than December
1, 2014, to the Senate Committee on State and Local Government and the House of
Representatives Committee on Government Operations:
new text end

new text begin (1) estimates of the average amount of savings and other financial resources
residents of Minnesota have upon retirement;
new text end

new text begin (2) estimates of the average amount of savings and other financial resources that are
recommended for a financially secure retirement in Minnesota;
new text end

new text begin (3) estimates of the relative progress toward achieving the savings recommended for
a financially secure retirement by gender, race, and ethnicity;
new text end

new text begin (4) the number of employees in Minnesota without access to an automatic enrollment
payroll deduction Individual Retirement Account (IRA) maintained or offered by the
employee's employer, or a multiemployer retirement plan or qualifying retirement plan
or arrangement described in sections 414(f) and 219(g)(5), respectively, of the Internal
Revenue Code of 1986, as amended through April 14, 2011;
new text end

new text begin (5) the estimated impact on publicly funded social safety net programs attributable
to insufficient retirement savings;
new text end

new text begin (6) options for structuring contributions to the Minnesota Secure Choice Retirement
Savings Plan that achieve the goals in subdivision 1, including a contribution mechanism
and applicability and portability under the Internal Revenue Code of 1986, as amended
through April 14, 2011;
new text end

new text begin (7) options for ensuring that benefits provide for stable income throughout
beneficiaries' retirement years;
new text end

new text begin (8) projected fees relative to asset size and plan structure, to recover the costs of
administration, record keeping, and investment management, consistent with efficient
administration and high-quality investment management, so as to maximize the returns
on plan investments;
new text end

new text begin (9) the cost to participating employers relative to plan structure;
new text end

new text begin (10) the aggregate economic effect of plan options within the state;
new text end

new text begin (11) the conditions by which the Minnesota Secure Choice Retirement Savings Plan,
or a separate plan, could accept contributions from employers under the federal Employee
Retirement Income Security Act, either into a multiemployer defined benefit plan under
sections 413(c) and 414(j) of the Internal Revenue Code of 1986, as amended through
April 14, 2011, or as a profit-sharing plan under section 401(a) of the Internal Revenue
Code of 1986, as amended through April 14, 2011, including the extent to which assets
might be invested in the same manner, with the same managers and asset allocations, as
the assets of the Minnesota Secure Choice Retirement Savings Plan, and to which an
individual's benefits might be combined with their benefits from the Minnesota Secure
Choice Retirement Savings Plan upon retirement; and
new text end

new text begin (12) recommendations on:
new text end

new text begin (i) changes to state law to create a Minnesota Secure Choice Retirement Savings Plan
that meets all of the requirements to qualify for the favorable federal income tax treatment
ordinarily accorded to IRAs under section 408(a) or 408(b) of the Internal Revenue Code
of 1986, as amended through April 14, 2011, and that must not be determined to be an
employee benefit plan under the federal Employee Retirement Income Security Act;
new text end

new text begin (ii) a process for the enrollment of plan participants that minimizes barriers to
participation and maximizes participation by private employees who have no access to
retirement savings through their place of work;
new text end

new text begin (iii) the process by which an employer may forward contributions and related
information to the Minnesota Secure Choice Retirement Savings Plan or its agents; and
new text end

new text begin (iv) investment policies that offer employees returns on contributions and the
conversion of individual account balances within the Minnesota Secure Choice Retirement
Savings Plan to provide for stable and secure retirement income, or annuitization, without
incurring debt or liabilities to the state.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [16C.37] CERTIFICATE OF PAY EQUITY COMPLIANCE.
new text end

new text begin (a) For a contract for goods or services in excess of $500,000, a state department or
agency may not accept a bid or proposal from a business having more than 40 full-time
employees within the state on a single working day during the previous 12 months unless
the commissioner of human rights, under the process established in section 363A.44,
has approved the business's plan to establish equitable compensation relationships for
its employees within the state and has issued the business a certificate of pay equity
compliance. As used in this section, "equitable compensation relationship" has the
meaning given in section 471.991.
new text end

new text begin (b) This section does not apply to construction projects governed by sections 177.43
and 177.44.
new text end

Sec. 4.

Minnesota Statutes 2013 Supplement, section 116L.665, subdivision 2, is
amended to read:


Subd. 2.

Membership.

The governor's Workforce Development Council is
composed of 31 members appointed by the governor. The members may be removed
pursuant to section 15.059. In selecting the representatives of the council, the governor
shall ensure that 50 percent of the members come from nominations provided by local
workforce councils. Local education representatives shall come from nominations
provided by local education to employment partnerships. The 31 members shall represent
the following sectors:

(a) State agencies: the following individuals shall serve on the council:

(1) commissioner of the Minnesota Department of Employment and Economic
Development;

(2) commissioner of the Minnesota Department of Education; and

(3) commissioner of the Minnesota Department of Human Services.

(b) Business and industry: six individuals shall represent the business and industry
sectors of Minnesota.

(c) Organized labor: six individuals shall represent labor organizations of Minnesota.

(d) Community-based organizations: four individuals shall represent
community-based organizations of Minnesota. Community-based organizations are
defined by the Workforce Investment Act as private nonprofit organizations that are
representative of communities or significant segments of communities and that have
demonstrated expertise and effectiveness in the field of workforce investment and may
include entities that provide job training services, serve youth, serve individuals with
disabilities, serve displaced homemakers, union-related organizations, employer-related
nonprofit organizations, and organizations serving nonreservation Indians and tribal
governments.

(e) Education: six individuals shall represent the education sector of Minnesota
as follows:

(1) one individual shall represent local public secondary education;

(2) one individual shall have expertise in design and implementation of school-based
service-learning;

(3) one individual shall represent leadership of the University of Minnesota;

(4) one individual shall represent secondary/postsecondary vocational institutions;

(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and
Universities; and

(6) one individual shall have expertise in agricultural education.

(f) Other: two individuals shall represent other constituencies including:

(1) units of local government; and

(2) applicable state or local programs.

The speaker and the minority leader of the house of representatives shall each
appoint a representative to serve as an ex officio member of the council. The majority
and minority leaders of the senate shall each appoint a senator to serve as an ex officio
member of the council.

The governor shall appoint one individual representing public librariesnew text begin , one
individual with expertise in assisting women in obtaining employment in nontraditional
occupations,
new text end and one individual representing adult basic education programs to serve as deleted text begin a
deleted text end nonvoting deleted text begin advisordeleted text end new text begin advisorsnew text end to the council.

(g) Appointment: each member shall be appointed for a term of three years from the
first day of January or July immediately following their appointment. Elected officials
shall forfeit their appointment if they cease to serve in elected office.

(h) Members of the council are compensated as provided in section 15.059,
subdivision 3
.

Sec. 5.

Minnesota Statutes 2012, section 116L.98, is amended to read:


116L.98 WORKFORCE PROGRAM OUTCOMES.

The commissioner shall develop and implement a set of standard approaches
for assessing the outcomes of workforce programs under this chapter. The outcomes
assessed must include, but are not limited to, periodic comparisons of workforce program
participants and nonparticipants.new text begin By January 1 of each year, the commissioner shall
report to the legislature on progress and outcomes of workforce programs, including the
requirements under section 116L.99. The report regarding outcomes of activities under
section 116L.99 must include data on:
new text end

new text begin (1) the gender, race, and age of participants, including cross tabulations;
new text end

new text begin (2) occupations;
new text end

new text begin (3) geography;
new text end

new text begin (4) advancement salaries; and
new text end

new text begin (5) the gender pay gap within occupations.
new text end

The commissioner shall also monitor the activities and outcomes of programs and
services funded by legislative appropriations and administered by the department on a
pass-through basis and develop a consistent and equitable method of assessing recipients
for the costs of its monitoring activities.

Sec. 6.

new text begin [116L.99] WOMEN AND NONTRADITIONAL JOBS GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) ''Eligible organization'' includes, but is not limited to:
new text end

new text begin (1) community-based organizations experienced in serving women;
new text end

new text begin (2) employers;
new text end

new text begin (3) business and trade associations;
new text end

new text begin (4) labor unions and employee organizations;
new text end

new text begin (5) registered apprenticeship programs;
new text end

new text begin (6) secondary and postsecondary education institutions located in Minnesota; and
new text end

new text begin (7) workforce and economic development agencies.
new text end

new text begin (d) "Nontraditional occupations'' means those occupations in which women make
up less than 25 percent of the workforce as defined under United States Code, title 20,
section 2302.
new text end

new text begin (e) "Registered apprenticeship program'' means a program registered under United
States Code, title 29, section 50.
new text end

new text begin Subd. 2. new text end

new text begin Grant program. new text end

new text begin The commissioner shall establish the women and
nontraditional jobs grant program to increase the number of women in high-wage,
nontraditional occupations. The commissioner shall make grants to eligible organizations
for programs that encourage and assist women to enter high-wage, high-demand,
nontraditional occupations including but not limited to those in the skilled trades, science,
technology, engineering, and math (STEM) occupations.
new text end

new text begin Subd. 3. new text end

new text begin Use of funds. new text end

new text begin (a) Grant funds awarded under this section may be used for:
new text end

new text begin (1) recruitment, preparation, placement, and retention of women, including
low-income women and women over 50 years old, in registered apprenticeships,
postsecondary education programs, on-the-job training, and permanent employment in
high-wage, high-demand, nontraditional occupations;
new text end

new text begin (2) secondary or postsecondary education or other training to prepare women to
succeed in nontraditional occupations. Activities under this clause may be conducted by
the grantee or in collaboration with another institution, including but not limited to a
public or private secondary or postsecondary school;
new text end

new text begin (3) innovative, hands-on, best practices that stimulate interest in nontraditional
occupations among girls, increase awareness among girls about opportunities in
nontraditional occupations, or increase access to secondary programming leading to jobs
in nontraditional occupations. Best practices include but are not limited to mentoring,
internships, or apprenticeships for girls in nontraditional occupations;
new text end

new text begin (4) training and other staff development for job seeker counselors and Minnesota
family investment program (MFIP) caseworkers on opportunities in nontraditional
occupations;
new text end

new text begin (5) incentives for employers and sponsors of registered apprenticeship programs to
retain women in nontraditional occupations for more than one year;
new text end

new text begin (6) training and technical assistance for employers to create a safe and healthy
workplace environment designed to retain and advance women, including best practices
for addressing sexual harassment, and to overcome gender inequity among employers
and registered apprenticeship programs;
new text end

new text begin (7) public education and outreach activities to overcome stereotypes about women
in nontraditional occupations, including the development of educational and marketing
materials; and
new text end

new text begin (8) support for women in nontraditional occupations including but not limited to
assistance with workplace issues resolution and access to advocacy assistance and services.
new text end

new text begin (b) Grant applications must include detailed information about how the applicant
plans to:
new text end

new text begin (1) increase women's participation in high-wage, high-demand occupations in which
women are currently underrepresented in the workforce;
new text end

new text begin (2) comply with the requirements under subdivision 3; and
new text end

new text begin (3) use grant funds in conjunction with funding from other public or private sources.
new text end

new text begin (c) In awarding grants under this subdivision, the commissioner shall give priority
to eligible organizations:
new text end

new text begin (1) with demonstrated success in recruiting and preparing women, especially
low-income women and women over 50 years old, for nontraditional occupations; and
new text end

new text begin (2) that leverage additional public and private resources.
new text end

new text begin (d) At least 50 percent of total grant funds must be awarded to programs providing
services and activities targeted to women with family incomes of less than 200 percent
of the federal poverty guidelines.
new text end

new text begin (e) The commissioner of employment and economic development in conjunction
with the commissioner of labor and industry shall monitor the use of funds under this
section, collect and compile information on the activities of other state agencies and public
or private entities that have purposes similar to those under this section, and identify other
public and private funding available for these purposes.
new text end

Sec. 7.

Minnesota Statutes 2012, section 256B.059, subdivision 5, is amended to read:


Subd. 5.

Asset availability.

(a) At the time of initial determination of eligibility for
medical assistance benefits following the first continuous period of institutionalization on
or after October 1, 1989, assets considered available to the institutionalized spouse shall
be the total value of all assets in which either spouse has an ownership interest, reduced by
the following amount for the community spouse:

(1) prior to July 1, 1994, the greater of:

(i) $14,148;

(ii) the lesser of the spousal share or $70,740; or

(iii) the amount required by court order to be paid to the community spouse;

(2) for persons whose date of initial determination of eligibility for medical
assistance following their first continuous period of institutionalization occurs on or after
July 1, 1994, the greater of:

(i) $20,000;

(ii) the lesser of the spousal share or $70,740; or

(iii) the amount required by court order to be paid to the community spouse.

The value of assets transferred for the sole benefit of the community spouse under section
256B.0595, subdivision 4, in combination with other assets available to the community
spouse under this section, cannot exceed the limit for the community spouse asset
allowance determined under subdivision 3 or 4. deleted text begin Assets that exceed this allowance shall be
considered available to the institutionalized spouse whether or not converted to income.
deleted text end If
the community spouse asset allowance has been increased under subdivision 4, then the
assets considered available to the institutionalized spouse under this subdivision shall be
further reduced by the value of additional amounts allowed under subdivision 4.

(b) An institutionalized spouse may be found eligible for medical assistance even
though assets in excess of the allowable amount are found to be available under paragraph
(a) if the assets are owned jointly or individually by the community spouse, and the
institutionalized spouse cannot use those assets to pay for the cost of care without the
consent of the community spouse, and if: (i) the institutionalized spouse assigns to the
commissioner the right to support from the community spouse under section 256B.14,
subdivision 3
; (ii) the institutionalized spouse lacks the ability to execute an assignment
due to a physical or mental impairment; or (iii) the denial of eligibility would cause an
imminent threat to the institutionalized spouse's health and well-being.

(c) After the month in which the institutionalized spouse is determined eligible for
medical assistance, during the continuous period of institutionalization, no assets of the
community spouse are considered available to the institutionalized spouse, unless the
institutionalized spouse has been found eligible under paragraph (b).

(d) Assets determined to be available to the institutionalized spouse under this
section must be used for the health care or personal needs of the institutionalized spouse.

(e) For purposes of this section, assets do not include assets excluded under the
supplemental security income program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to applications for medical assistance initiated or pending on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2012, section 268.095, subdivision 1, is amended to read:


Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all
unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the
employer as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that
provided substantially better terms and conditions of employment, but the applicant did
not work long enough at the second employment to have sufficient subsequent earnings to
satisfy the period of ineligibility that would otherwise be imposed under subdivision 10
for quitting the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the
employment because the employment was unsuitable for the applicant;

(4) the employment was unsuitable for the applicant and the applicant quit to enter
reemployment assistance training;

(5) the employment was part time and the applicant also had full-time employment
in the base period, from which full-time employment the applicant separated because of
reasons for which the applicant was held not to be ineligible, and the wage credits from
the full-time employment are sufficient to meet the minimum requirements to establish a
benefit account under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant
was going to be laid off because of lack of work within 30 calendar days. An applicant
who quit employment within 30 calendar days of a notified date of layoff because of lack
of work is ineligible for unemployment benefits through the end of the week that includes
the scheduled date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or
injury made it medically necessary that the applicant quit; or (ii) in order to provide
necessary care because of the illness, injury, or disability of an immediate family member
of the applicant. This exception only applies if the applicant informs the employer of
the medical problem and requests accommodation and no reasonable accommodation
is made available.

If the applicant's serious illness is chemical dependency, this exception does not
apply if the applicant was previously diagnosed as chemically dependent or had treatment
for chemical dependency, and since that diagnosis or treatment has failed to make
consistent efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable
employment under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the
applicant to quit the employment, provided the applicant made reasonable effort to obtain
other child care and requested time off or other accommodation from the employer and no
reasonable accommodation is available.

This exception raises an issue of the applicant's being available for suitable
employment under section 268.085, subdivision 1, that the commissioner must determine;

(9) domestic abusenew text begin , sexual assault, or stalkingnew text end of the applicant or an immediate
family member of the applicant, necessitated the applicant's quitting the employment.
Domestic abusenew text begin , sexual assault, or stalkingnew text end must be shown by one or more of the following:

(i) a district court order for protection or other documentation of equitable relief
issued by a court;

(ii) a police record documenting the domestic abusenew text begin , sexual assault, or stalkingnew text end ;

(iii) documentation that the perpetrator of the domestic abusenew text begin , sexual assault, or
stalking
new text end has been convicted of the offense deleted text begin of domestic abusedeleted text end ;

(iv) medical documentation of domestic abusenew text begin , sexual assault, or stalkingnew text end ; deleted text begin or
deleted text end

(v) written statement that the applicant or an immediate family member of the
applicant is a victim of domestic abuse, new text begin sexual assault, or stalking new text end provided by a social
worker, member of the clergy, shelter worker, attorney at law, or other professional who
has assisted the applicant in dealing with the domestic abusedeleted text begin .deleted text end new text begin , sexual assault, or stalking; or
new text end

deleted text begin Domestic abuse for purposes of this clause is defined under section 518B.01; or
deleted text end

new text begin (vi) the applicant's sworn statement attesting to the domestic abuse, sexual assault,
or stalking; or
new text end

(10) the applicant quit in order to relocate to accompany a spouse whose job location
changed making it impractical for the applicant to commute.

Sec. 9.

Minnesota Statutes 2012, section 268.095, subdivision 6, is amended to read:


Subd. 6.

Employment misconduct defined.

(a) Employment misconduct means any
intentional, negligent, or indifferent conduct, on the job or off the job that displays clearly:

(1) a serious violation of the standards of behavior the employer has the right to
reasonably expect of the employee; or

(2) a substantial lack of concern for the employment.

(b) Regardless of paragraph (a), the following is not employment misconduct:

(1) conduct that was a consequence of the applicant's mental illness or impairment;

(2) conduct that was a consequence of the applicant's inefficiency or inadvertence;

(3) simple unsatisfactory conduct;

(4) conduct an average reasonable employee would have engaged in under the
circumstances;

(5) conduct that was a consequence of the applicant's inability or incapacity;

(6) good faith errors in judgment if judgment was required;

(7) absence because of illness or injury of the applicant, with proper notice to the
employer;

(8) absence, with proper notice to the employer, in order to provide necessary care
because of the illness, injury, or disability of an immediate family member of the applicant;

(9) conduct that was a consequence of the applicant's chemical dependency, unless
the applicant was previously diagnosed chemically dependent or had treatment for
chemical dependency, and since that diagnosis or treatment has failed to make consistent
efforts to control the chemical dependency; or

(10) conduct that was a consequence of the applicant, or an immediate family
member of the applicant, being a victim of domestic abuse deleted text begin as defined under section
518B.01
deleted text end new text begin , sexual assault, or stalkingnew text end . Domestic abusenew text begin , sexual assault, or stalkingnew text end must be
shown as provided for in subdivision 1, clause (9).

(c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20,
169A.31, or 169A.50 to 169A.53 that interferes with or adversely affects the employment
is employment misconduct.

(d) If the conduct for which the applicant was discharged involved only a single
incident, that is an important fact that must be considered in deciding whether the conduct
rises to the level of employment misconduct under paragraph (a). This paragraph does
not require that a determination under section 268.101 or decision under section 268.105
contain a specific acknowledgment or explanation that this paragraph was considered.

(e) The definition of employment misconduct provided by this subdivision is
exclusive and no other definition applies.

Sec. 10.

Minnesota Statutes 2012, section 268.095, is amended by adding a subdivision
to read:


new text begin Subd. 13. new text end

new text begin Definitions. new text end

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

new text begin (a) "Domestic abuse" has the meaning given in section 518B.01.
new text end

new text begin (b) "Sexual assault" means an act that would constitute a violation of sections
609.342 to 609.3453 or 609.352.
new text end

new text begin (c) "Stalking" means an act that would constitute a violation of section 609.749.
new text end

Sec. 11.

new text begin [363A.44] CERTIFICATE OF PAY EQUITY COMPLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Compliance; good faith effort. new text end

new text begin (a) The commissioner must approve
a plan and issue a certificate of pay equity compliance under this section to a business
seeking the certification required by section 16C.37 if the business demonstrates that it is
in compliance with equitable compensation relationship standards or is making a good
faith effort to achieve compliance with those standards. As used in this section, certificate
of compliance means a certificate of pay equity compliance. A certificate of compliance is
valid for two years. The standards for determining equitable compensation relationships
for a business under this section are the same as the standards in sections 471.991 to
471.997 and rules adopted under those sections.
new text end

new text begin (b) A business that is not in compliance with equitable compensation relationship
standards is making a good faith effort to achieve compliance if the commissioner has
approved:
new text end

new text begin (1) a plan for achieving compliance, including the business's proposed actions and
response to the commissioner's recommendations; and
new text end

new text begin (2) a proposed date for achieving compliance and for submitting a revised report
for the commissioner's review.
new text end

new text begin Subd. 2. new text end

new text begin Filing fee; account; appropriation. new text end

new text begin The commissioner shall collect a $75
fee for each certificate of compliance issued by the commissioner under this section. The
proceeds of the fee must be deposited in the state treasury and credited to a pay equity fee
special revenue account. Money in the account is appropriated to the commissioner to
fund the cost of administering this section.
new text end

new text begin Subd. 3. new text end

new text begin Revocation of certificate. new text end

new text begin A certificate of compliance may be suspended
or revoked by the commissioner if a holder of a certificate is not effectively implementing
or making a good faith effort to implement its approved plan to establish equitable
compensation relationships. If a contractor does not effectively implement its approved
plan, or fails to make a good faith effort to do so, the commissioner may refuse to approve
subsequent plans submitted by that business.
new text end

new text begin Subd. 4. new text end

new text begin Revocation of contract. new text end

new text begin A contract awarded by a department or agency
of the state may be terminated or abridged by the contracting department or agency if a
certificate of compliance is suspended or revoked. If a contract is awarded to a business
that does not have a contract certificate of compliance as required, the commissioner of
administration may void the contract on behalf of the state.
new text end

new text begin Subd. 5. new text end

new text begin Technical assistance. new text end

new text begin If the commissioner has suspended a contractor's
certificate of compliance, the commissioner shall provide technical assistance that may
enable the contractor to be recertified within 90 days after the contractor's certificate of
compliance has been suspended.
new text end

new text begin Subd. 6. new text end

new text begin Access to data. new text end

new text begin Data submitted to the commissioner by a contractor
or potential contractor for purposes of obtaining a certificate of compliance under this
section are private data on individuals or nonpublic data with respect to persons other than
Department of Human Rights employees. The commissioner's decision to grant, not grant,
revoke, or suspend a certificate of compliance is public data.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014, and applies to contracts
for which a state department or agency issues solicitations on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2012, section 504B.001, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Court official. new text end

new text begin "Court official" means a judge, referee, court
administrator, prosecutor, probation officer, or victim's advocate, whether employed by or
under contract with the court, who is authorized to act on behalf of the court.
new text end

Sec. 13.

Minnesota Statutes 2012, section 504B.001, is amended by adding a
subdivision to read:


new text begin Subd. 10a. new text end

new text begin Qualifying document. new text end

new text begin "Qualifying document" means a document
stating that the tenant or lawful occupant is a victim and naming the perpetrator, if known,
which is signed by a:
new text end

new text begin (i) court official;
new text end

new text begin (ii) city, county, state, or tribal law enforcement official;
new text end

new text begin (iii) licensed health care professional;
new text end

new text begin (iv) domestic abuse advocate, as defined in section 595.02, subdivision 1, paragraph
(l); or
new text end

new text begin (v) sexual assault counselor, as defined in section 595.02, subdivision 1, paragraph
(k).
new text end

Sec. 14.

Minnesota Statutes 2012, section 504B.171, subdivision 1, is amended to read:


Subdivision 1.

Terms of covenant.

new text begin (a) new text end In every lease or license of residential
premises, whether in writing or parol, the landlord or licensor and the tenant or licensee
covenant that:

(1) neither will:

(i) unlawfully allow controlled substances in those premises or in the common
area and curtilage of the premises;

(ii) allow prostitution or prostitution-related activity as defined in section 617.80,
subdivision 4
, to occur on the premises or in the common area and curtilage of the premises;

(iii) allow the unlawful use or possession of a firearm in violation of section 609.66,
subdivision 1a
, 609.67, or 624.713, on the premises or in the common area and curtilage
of the premises; or

(iv) allow stolen property or property obtained by robbery in those premises or in the
common area and curtilage of the premises; and

(2) the common area and curtilage of the premises will not be used by either the
landlord or licensor or the tenant or licensee or others acting under the control of either to
manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a
controlled substance in violation of any criminal provision of chapter 152. The covenant
is not violated when a person other than the landlord or licensor or the tenant or licensee
possesses or allows controlled substances in the premises, common area, or curtilage,
unless the landlord or licensor or the tenant or licensee knew or had reason to know of
that activity.

new text begin (b) In every lease or license of residential premises, whether in writing or parol, the
tenant or licensee covenants that the tenant or licensee will not commit an act enumerated
under section 504B.206, subdivision 1, paragraph (a) against a tenant or licensee or any
person in the tenant or licensee's family or household.
new text end

Sec. 15.

Minnesota Statutes 2012, section 504B.206, subdivision 1, is amended to read:


Subdivision 1.

Right to terminate; procedure.

(a) deleted text begin A tenant to a residential lease
who is a victim of domestic abuse and fears imminent domestic abuse against the tenant or
the tenant's minor children if the tenant or the tenant's minor children remain in the leased
premises may terminate a lease agreement without penalty or liability as provided in this
section. The tenant must provide advance written notice to the landlord stating that:
deleted text end

deleted text begin (1) the tenant fears imminent domestic abuse from a person named in an order
for protection or no contact order;
deleted text end

deleted text begin (2) the tenant needs to terminate the tenancy; and
deleted text end

deleted text begin (3) the specific date the tenancy will terminate.
deleted text end

new text begin A tenant to a residential lease may terminate a lease agreement without penalty or
liability as provided in this section if the tenant or another lawful occupant fears imminent
violence after being subjected to:
new text end

new text begin (1) domestic abuse, as defined in section 518B.01, subdivision 2;
new text end

new text begin (2) criminal sexual assault, as defined in sections 609.342 to 609.3451; or
new text end

new text begin (3) stalking, as defined in section 609.749, subdivision 1.
new text end

(b) new text begin The tenant must provide advance written notice to the landlord:
new text end

new text begin (1) stating the tenant fears imminent violence against the tenant or a lawful occupant
if the tenant or lawful occupant remains in the leased premises from a person named in an
order for protection or no contact order or as indicated in a qualifying document;
new text end

new text begin (2) stating the tenant needs to terminate the tenancy;
new text end

new text begin (3) providing the specific date the tenancy will terminate; and
new text end

new text begin (4) providing written instructions for the disposition of any remaining personal
property in accordance with section 504B.271.
new text end

new text begin (c) new text end The written notice must be delivered before the termination of the tenancy by
mail, fax, or in person, and be accompanied by the order for protection deleted text begin ordeleted text end new text begin ,new text end no contact
ordernew text begin , or qualifying documentnew text end .

new text begin (d) The tenancy terminates, including the right of possession of the premises, on the
termination date stated in the notice under paragraph (b).
new text end

deleted text begin (c)deleted text end new text begin (e)new text end For purposes of this section, an order for protection means an order issued
under chapter 518B. A no contact order means a no contact order currently in effect,
issued under section 629.75 or chapter 609.

Sec. 16.

Minnesota Statutes 2012, section 504B.206, subdivision 3, is amended to read:


Subd. 3.

Liability for rent; termination of tenancy.

(a) A tenant new text begin who is a sole
tenant and is
new text end terminating a lease under subdivision 1 is responsible for the rent payment
for the full month in which the tenancy terminates deleted text begin and an additional amount equal to one
month's rent
deleted text end . The tenant new text begin forfeits all claims for the return of the security deposit under
section 504B.178 and
new text end is relieved of any other contractual obligation for payment of rent or
any other charges for the remaining term of the lease, except as provided in this section.

(b)new text begin In a tenancy with multiple tenants, any lease governing all tenants is terminated
at the latter of the end of the month or the end of the rent interval in which one tenant
terminates the lease under subdivision 1. Upon termination, all claims by all tenants for
the return of the security deposit under section 504B.178, and all claims by the landlord
for future rent, are forfeited, provided that the landlord and remaining tenants maintain all
rights and remedies available under law and the terms of the lease until termination of
the lease. Any tenant whose tenancy was terminated under this paragraph may reapply
to enter into a new lease with the landlord, provided the provisions of section 504B.173
do not apply.
new text end

new text begin (c)new text end This section does not affect a tenant's liability for delinquent, unpaid rent or
other amounts owed to the landlord before the lease was terminated by the tenant under
this section.

deleted text begin (c) The tenancy terminates, including the right of possession of the premises, on the
termination date stated in the notice under subdivision 1. The amount equal to one month's
rent must be paid on or before the termination of the tenancy for the tenant to be relieved of
the contractual obligations for the remaining term of the lease as provided in this section.
deleted text end

deleted text begin (d) For purposes of this section, the provisions of section 504B.178 are triggered
as follows:
deleted text end

deleted text begin (1) if the only tenant is the tenant who is the victim of domestic abuse and the
tenant's minor children, if any, upon the first day of the month following the later of:
deleted text end

deleted text begin (i) the date the tenant vacates the premises; or
deleted text end

deleted text begin (ii) the termination of the tenancy indicated in the written notice under subdivision
1; or
deleted text end

deleted text begin (2) if there are additional tenants bound by the lease, upon the expiration of the lease.
deleted text end

Sec. 17.

Minnesota Statutes 2012, section 504B.206, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Conflict with other law. new text end

new text begin If a federal statute, regulation, or handbook
permitting termination of a residential tenancy subsidized under a federal program
conflicts with any provision of this section, then the landlord must comply with the federal
statute, regulation, or handbook.
new text end

Sec. 18.

Minnesota Statutes 2012, section 504B.285, subdivision 1, is amended to read:


Subdivision 1.

Grounds.

new text begin (a) new text end The person entitled to the premises may recover
possession by eviction when:

(1) any person holds over real property:

(i) after a sale of the property on an execution or judgment; or

(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or
after termination of contract to convey the property;

(2) any person holds over real property after termination of the time for which it is
demised or leased to that person or to the persons under whom that person holds possession,
contrary to the conditions or covenants of the lease or agreement under which that person
holds, or after any rent becomes due according to the terms of such lease or agreement; or

(3) any tenant at will holds over after the termination of the tenancy by notice to quit.

new text begin (b) A landlord must not commence an eviction action against a tenant or lawful
occupant solely on the basis that the tenant or lawful occupant has been the victim of
any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this
paragraph should be construed to prohibit an eviction action based on a breach of the lease.
new text end

Sec. 19. new text begin CERTIFICATE OF COMPLIANCE; TEMPORARY PROVISION.
new text end

new text begin Until July 1, 2015, a business that is not in compliance with equitable compensation
relationship standards is making a good faith effort to achieve compliance if the
commissioner of human rights has approved:
new text end

new text begin (1) a statement of the business's intention to prepare a pay equity report and an
estimated date no later than July 1, 2016, when the report and plan will be submitted; and
new text end

new text begin (2) information on the business's current status, including a statement on the
existence of a job evaluation system, the total number of male and female employees of
the business within this state, and the business's interest in receiving training on how to
establish equitable compensation relationships.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to contracts for which a state department
or agency issues solicitations on or after January 1, 2015.
new text end

Sec. 20. new text begin REPORT.
new text end

new text begin The commissioner of human rights, in cooperation with the commissioner of
administration, shall report to the legislature by January 31, 2015, on implementation
of sections 1, 3 ,11, and 19. The report must include findings and recommendations
on any changes needed to ensure that state contractors achieve equitable compensation
relationships.
new text end

Sec. 21. new text begin WOMEN AND NONTRADITIONAL JOBS GRANT PROGRAM;
APPROPRIATION.
new text end

new text begin $500,000 is appropriated from the general fund in fiscal year 2015 to the
commissioner of employment and economic development to develop and implement
the women and nontraditional jobs grant program under Minnesota Statutes, section
116L.99. Funds available under this section must not supplant other funds available for
the same purposes.
new text end

Sec. 22. new text begin WOMEN AND NONTRADITIONAL JOBS APPRENTICESHIPS;
APPROPRIATION.
new text end

new text begin $250,000 is appropriated from the general fund in fiscal year 2015 to the
commissioner of labor and industry for the labor education advancement program under
Minnesota Statutes, section 178.11, to educate, promote, assist, and support women to
enter apprenticeship programs in nontraditional occupations. Funds available under this
section must not supplant other funds available for the same purposes.
new text end

Sec. 23. new text begin WOMEN ENTREPRENEURS BUSINESS DEVELOPMENT
COMPETITIVE GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $500,000 is appropriated from the general fund
in fiscal year 2015 to the commissioner of employment and economic development
to establish a women entrepreneurs business development competitive grant program
to facilitate the creation and expansion of high-growth, high-revenue businesses by
entrepreneurs who are women. This is a onetime appropriation and is available until
expended.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (a) "Women-owned business" means a business entity owned or controlled by
women that is organized for profit including, but not limited to, an individual, partnership,
corporation, joint venture, association, or cooperative. "Owned or controlled by women"
means:
new text end

new text begin (1) that the business is at least 51 percent owned by one or more women or, in the
case of any publicly traded business, at least 51 percent of the stock of which is owned by
one or more women; and
new text end

new text begin (2) the business has management and daily business operations that are controlled
by one or more women.
new text end

new text begin (b) "High economic impact firm" means a business that is projected to generate at
least $500,000 in annual revenue and create at least ten high-quality jobs.
new text end

new text begin (c) "Qualified business" means a women-owned business in the field of construction;
transportation; warehousing; agriculture; mining; finance; insurance; professional,
technical, or scientific services; technology; or other high economic impact industries.
new text end

new text begin (d) "High-quality job" means a job that pays an annual income equal to at least 150
percent of the federal poverty guideline adjusted for a family size of four.
new text end

new text begin Subd. 3. new text end

new text begin Use of funds. new text end

new text begin Funds available under this section may be used for:
new text end

new text begin (1) entrepreneurial training, mentoring, and technical assistance for the startup or
expansion of businesses owned by women;
new text end

new text begin (2) development of networks of potential investors; and
new text end

new text begin (3) development of a recruitment program for midcareer women with an interest
in starting a qualified business.
new text end

Sec. 24. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 504B.206, subdivisions 4 and 6, new text end new text begin are repealed.
new text end

ARTICLE 3

LABOR STANDARDS AND WAGES

Section 1.

Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:


Subdivision 1.

Amount.

(a) For purposes of this subdivision, the terms defined in
this paragraph have the meanings given them.

(1) "Large employer" means an enterprise whose annual gross volume of sales made
or business done is not less than deleted text begin $625,000deleted text end new text begin $500,000new text end (exclusive of excise taxes at the
retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
Act, sections 177.21 to 177.35.

(2) "Small employer" means an enterprise whose annual gross volume of sales
made or business done is less than deleted text begin $625,000deleted text end new text begin $500,000new text end (exclusive of excise taxes at the
retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
Act, sections 177.21 to 177.35.

(b) Except as otherwise provided in sections 177.21 to 177.35deleted text begin , every large employer
must pay each employee wages at a rate of at least $5.15 an hour beginning September
1, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
1998, and at a rate of at least $5.25 an hour beginning August 1, 2005
deleted text end new text begin :
new text end

new text begin (1) every large employer must pay each employee wages at a rate of at least:
new text end

new text begin (i) $8.00 per hour beginning August 1, 2014;
new text end

new text begin (ii) $9.00 per hour beginning August 1, 2015;
new text end

new text begin (iii) $9.50 per hour beginning August 1, 2016; and
new text end

new text begin (iv) the rate established under paragraph (d) beginning January 1, 2017; and
new text end

new text begin (2) every small employer must pay each employee at a rate of at least:
new text end

new text begin (i) $7.00 per hour beginning August 1, 2014;
new text end

new text begin (ii) $8.00 per hour beginning August 1, 2015;
new text end

new text begin (iii) $8.50 per hour beginning August 1, 2016; and
new text end

new text begin (iv) the rate established under paragraph (d) beginning January 1, 2017new text end .

(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
employment, an employer may pay an employee under the age of 20 years a wage of deleted text begin $4.90
an hour. No employer may take any action to displace any employee, including a partial
displacement through a reduction in hours, wages, or employment benefits, in order to hire
an employee at the wage authorized in this paragraph
deleted text end new text begin at least:
new text end

new text begin (1) $6.50 per hour beginning August 1, 2014;
new text end

new text begin (2) $7.50 per hour beginning August 1, 2015;
new text end

new text begin (3) $8.00 per hour beginning August 1, 2016; and
new text end

new text begin (4) the rate established under paragraph (d) beginning January 1, 2017new text end .

new text begin No employer may take any action to displace an employee, including a partial
displacement through a reduction in hours, wages, or employment benefits, in order to
hire an employee at the wage authorized in this paragraph.
new text end

new text begin (d) No later than November 1 of each year, beginning in 2016, the commissioner
shall determine the percentage increase in the rate of inflation, as measured by the
Consumer Price Index for all urban consumers, United States city average, as determined
by the United States Department of Labor, during the most recent 12-month period for
which data is available. The minimum wage rates in paragraphs (b) and (c) are increased
by the lesser of: (1) 2.5 percent, rounded to the nearest cent; or (2) the percentage
calculated by the commissioner, rounded to the nearest cent. The new minimum wage
rates determined under this paragraph take effect on the next January 1.
new text end

new text begin (e) Minimum wage standards and inflation must be reflected in statewide
reimbursement rates and county and state purchase of service contracts for social services,
including those provided by direct service staff through home and community-based
services waivers for seniors and persons with disabilities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014.
new text end

Sec. 2.

Minnesota Statutes 2012, section 181.940, subdivision 2, is amended to read:


Subd. 2.

Employee.

"Employee" means a person who performs services for hire for
an employer from whom a leave is requested under sections 181.940 to 181.944 for:

(1) at least 12 deleted text begin consecutivedeleted text end months deleted text begin immediatelydeleted text end preceding the request; and

(2) for an average number of hours per week equal to one-half the full-time
equivalent position in the employee's job classification as defined by the employer's
personnel policies or practices or pursuant to the provisions of a collective bargaining
agreement, during those 12 months.

Employee includes all individuals employed at any site owned or operated by the
employer but does not include an independent contractor.

Sec. 3.

Minnesota Statutes 2012, section 181.941, is amended to read:


181.941 new text begin PREGNANCY AND new text end PARENTING LEAVE.

Subdivision 1.

deleted text begin Sixdeleted text end new text begin Twelvenew text end -week leave; new text begin pregnancy, new text end birthnew text begin ,new text end or adoption.

new text begin (a) new text end An
employer must grant an unpaid leave of absence to an employee who is deleted text begin a natural or
adoptive parent in conjunction with the birth or adoption of a child. The length of the
leave shall be determined by the employee, but may not exceed six weeks, unless agreed
to by the employer.
deleted text end new text begin :
new text end

new text begin (1) a natural or adoptive parent in conjunction with the birth or adoption of a child; or
new text end

new text begin (2) a female employee for prenatal care, or incapacity due to pregnancy, childbirth,
or related health conditions.
new text end

new text begin (b) The length of the leave shall be determined by the employee, but must not exceed
12 weeks, unless agreed to by the employer.
new text end

Subd. 2.

Start of leave.

The leave shall begin at a time requested by the employee.
The employer may adopt reasonable policies governing the timing of requests for unpaid
leavedeleted text begin .deleted text end new text begin and may require an employee who plans to take a leave under this section to give
the employer reasonable notice of the date the leave shall commence and the estimated
duration of the leave. For leave taken under subdivision 1, paragraph (a), clause (1),
new text end the
leave deleted text begin maydeleted text end new text begin mustnew text end begin deleted text begin not more than six weeks afterdeleted text end new text begin within 12 months ofnew text end the birth or
adoption; except that, in the case where the child must remain in the hospital longer than
the mother, the leave deleted text begin may notdeleted text end new text begin mustnew text end begin deleted text begin more than six weeksdeleted text end new text begin within 12 monthsnew text end after the
child leaves the hospital.

Subd. 3.

No employer retribution.

An employer shall not retaliate against an
employee for requesting or obtaining a leave of absence as provided by this section.

Subd. 4.

Continued insurance.

The employer must continue to make coverage
available to the employee while on leave of absence under any group insurance policy,
group subscriber contract, or health care plan for the employee and any dependents.
Nothing in this section requires the employer to pay the costs of the insurance or health
care while the employee is on leave of absence.

Sec. 4.

new text begin [181.9414] PREGNANCY ACCOMMODATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Accommodation. new text end

new text begin An employer must provide reasonable
accommodation for an employee for conditions related to pregnancy, childbirth, or related
health conditions, if she so requests. The employer may provide the accommodation
requested by the employee or an equally effective alternative. "Reasonable
accommodation" includes, but is not limited to: seating, frequent restroom breaks, and
limits to heavy lifting.
new text end

new text begin Subd. 2. new text end

new text begin Transfer. new text end

new text begin An employer must temporarily transfer a pregnant female
employee to a less strenuous or hazardous position for the duration of her pregnancy if she
so requests where that transfer can be reasonably accommodated. An employee requesting
a temporary transfer shall be required to provide to the employer a certification of medical
necessity from her doctor. However, no employer shall be required by this subdivision to
create additional employment that the employer would not otherwise have created, nor
shall the employer be required to discharge any employee, transfer any employee with
more seniority, or promote any employee who is not qualified to perform the job.
new text end

new text begin Subd. 3. new text end

new text begin Interaction with other laws. new text end

new text begin Nothing in this section shall be construed to
affect any other provision of law relating to sex discrimination or pregnancy, or in any
way to diminish the coverage of pregnancy, childbirth, or health conditions related to
pregnancy or childbirth under any other provisions of any other law.
new text end

new text begin Subd. 4. new text end

new text begin No employer retribution. new text end

new text begin An employer shall not retaliate against an
employee for requesting or obtaining accommodation under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2012, section 181.943, is amended to read:


181.943 RELATIONSHIP TO OTHER LEAVE.

(a) The length of deleted text begin parentaldeleted text end leave provided under section 181.941 may be reduced
by any period of deleted text begin paid parental or disability leave, but not accrued sick leave, provided
by the employer, so that the total leave does not exceed six weeks, unless agreed to by
the employer.
deleted text end new text begin :
new text end

new text begin (1) paid parental, disability, personal, medical, or sick leave, or accrued vacation
provided by the employer so that the total leave does not exceed 12 weeks, unless agreed
to by the employer; or
new text end

new text begin (2) leave taken for the same purpose by the employee under United States Code,
title 29, chapter 28.
new text end

(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing
leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise
affects an employee's rights with respect to any other employment benefit.

Sec. 6.

new text begin [181.9441] EARNED SICK AND SAFE TIME.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Child" means a minor or adult: biological child, adopted child, foster child,
grandchild, stepchild, legal ward, or a person to whom the covered employee stands in
loco parentis.
new text end

new text begin (c) "Covered employee" means an employee who has been employed for not less
than 30 days by the employer from whom earned sick and safe time is requested.
new text end

new text begin (d) "Domestic abuse" has the meaning given in section 518B.01.
new text end

new text begin (e) "Employee" has the meaning given in section 177.23, subdivision 7, except that
for the purpose of this section, employee includes any individual employed in a bona fide
executive, administrative, or professional capacity, or a salesperson who conducts no more
than 20 percent of sales on the premises of the employer, and includes recipients of public
benefits who are engaged in work activity as a condition of receiving public assistance.
new text end

new text begin (f) "Employer" means any individual, partnership, association, corporation, business,
trust, the state and any political subdivision of the state, or any person or group of persons
acting directly or indirectly in the interest of an employer in relation to an employee.
new text end

new text begin (g) "Extended family member" means any individual related by blood or affinity
whose close association with the covered employee is the equivalent of a family
relationship.
new text end

new text begin (h) "Grandparent" means a parent of a parent.
new text end

new text begin (i) "Earned sick and safe time" means leave that is compensated at the same hourly
rate as the covered employee earns from employment and is provided by an employer to a
covered employee for the purposes described in subdivision 3.
new text end

new text begin (j) "Parent" means:
new text end

new text begin (1) a biological parent, foster parent, stepparent, adoptive parent, or legal guardian
of a covered employee or a covered employee's spouse; or
new text end

new text begin (2) a person who stood in loco parentis when the covered employee or covered
employee's spouse was a minor child.
new text end

new text begin (k) "Sexual assault" means an act that constitutes a violation under sections 609.342
to 609.3453 or 609.352.
new text end

new text begin (l) "Sibling" means a biological, foster, adoptive, or step-sibling.
new text end

new text begin (m) "Stalking" has the meaning given in section 609.749.
new text end

new text begin (n) "Spouse" means a person to whom the covered employee is legally married
under the laws of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Accrual of earned sick and safe time. new text end

new text begin (a) A covered employee shall accrue
a minimum of one hour of earned sick and safe time for every 30 hours worked. A covered
employee may not accrue more than 72 hours of earned sick and safe time in a calendar
year unless the employer agrees to a higher amount, except as provided in paragraph (b).
new text end

new text begin (b) Covered employees of an employer that employs fewer than 21 employees may
not accrue more than 40 hours of earned sick and safe time in a calendar year unless
the employer agrees to a higher amount.
new text end

new text begin (c) Covered employees who are exempt from overtime requirements under United
States Code, title 29, section 213(a)(1), are deemed to work 40 hours in each work week
for purposes of accruing earned sick and safe time, except that a covered employee whose
normal work week is less than 40 hours will accrue earned sick and safe time based upon
the normal work week.
new text end

new text begin (d) Earned sick and safe time under this section begins to accrue at the
commencement of employment of the covered employee.
new text end

new text begin (e) Covered employees shall be entitled to use accrued earned sick and safe time
beginning 90 calendar days following commencement of their employment. After 90
calendar days of employment, covered employees may use earned sick and safe time
as it is accrued.
new text end

new text begin (f) Earned sick and safe time shall be carried over to the following calendar year.
new text end

new text begin (g) An employer complies with this section if the employer has a sick and safe time
policy that makes available an amount of sick and safe time at least equal to and which
may be used for the same purposes and under the same conditions as earned sick and safe
time under this section.
new text end

new text begin (h) An employer may adopt or retain sick and safe time policies that are more
generous to a covered employee than the requirements under this section.
new text end

new text begin Subd. 3. new text end

new text begin Use of earned sick and safe time. new text end

new text begin (a) Earned sick and safe time must be
provided to a covered employee by an employer for:
new text end

new text begin (1) a covered employee's:
new text end

new text begin (i) mental or physical illness, injury, or health condition;
new text end

new text begin (ii) need for medical diagnosis, care, or treatment of a mental or physical illness,
injury, or health condition; or
new text end

new text begin (iii) need for preventive medical or health care;
new text end

new text begin (2) care of a spouse, child, parent, grandparent, sibling, or extended family member:
new text end

new text begin (i) with a mental or physical illness, injury, or health condition;
new text end

new text begin (ii) who needs medical diagnosis, care, or treatment of a mental or physical illness,
injury, or health condition; or
new text end

new text begin (iii) who needs preventive medical or health care;
new text end

new text begin (3) absence due to domestic abuse, sexual assault, or stalking of the covered
employee or covered employee's child, spouse, parent, grandparent, sibling, or extended
family member, provided the absence is to:
new text end

new text begin (i) seek medical attention related to physical or psychological injury or disability
caused by domestic abuse, sexual assault, or stalking;
new text end

new text begin (ii) obtain services from a victim services organization;
new text end

new text begin (iii) obtain psychological or other counseling;
new text end

new text begin (iv) seek relocation due to domestic abuse, sexual assault, or stalking; or
new text end

new text begin (v) take legal action, including preparing for or participating in any civil or criminal
legal proceeding related to or resulting from domestic abuse, sexual assault, or stalking; and
new text end

new text begin (4) closure of the covered employee's place of business by order of a public official
due to a public emergency, or a covered employee's need to care for a child whose school
or place of care has been closed by order of a public official due to a public emergency.
new text end

new text begin (b) An employer may require reasonable notice of the need for earned sick and safe
time. If the need for the leave is foreseeable, an employer may require advance notice of
the intention to use earned sick and safe time, but in no case shall require more than seven
days' advance notice. If the need is not foreseeable, an employer may require a covered
employee to give notice of the need for earned sick and safe time as soon as practicable.
new text end

new text begin (c) For earned sick and safe time of more than three consecutive days, an employer
may require reasonable documentation that the earned sick and safe time is covered by
paragraph (a). For earned sick and safe time under paragraph (a), clause (1) or (2),
reasonable documentation shall include a signed statement by a health care professional
indicating the need for earned sick and safe time. For earned sick and safe time under
paragraph (a), clause (3), a court record or documentation signed by an employee or
volunteer working for a victims services organization, an attorney, a police officer, or other
anti-violence counselor shall be considered reasonable documentation.
new text end

new text begin (d) An employer may not require, as a condition of a covered employee's using earned
sick and safe time, that the covered employee search for or find a replacement worker to
cover the hours during which the covered employee is using earned sick and safe time.
new text end

new text begin (e) Accrued earned sick and safe time may be used in the smaller of hourly
increments or the smallest increment that the employer's payroll system uses to account
for absences or use of other time.
new text end

new text begin Subd. 4. new text end

new text begin Retaliation prohibited. new text end

new text begin An employer shall not retaliate against a covered
employee because the covered employee has requested earned sick and safe time, used
earned sick and safe time, or made a complaint or filed an action to enforce a right to
earned sick and safe time under this section.
new text end

new text begin Subd. 5. new text end

new text begin Notice and posting. new text end

new text begin (a) Employers shall give notice that covered
employees are entitled to earned sick and safe time, the amount of earned sick and safe
time, and the terms of its use under this section, that retaliation against covered employees
who request or use earned sick and safe time is prohibited, and that each covered employee
has the right to file a complaint or bring a civil action if earned sick and safe time is
denied by the employer or the covered employee is retaliated against for requesting or
using earned sick and safe time.
new text end

new text begin (b) Employers may comply with this section by supplying covered employees
with a notice in English and other appropriate languages that contains the information
required in paragraph (a).
new text end

new text begin (c) Employers may comply with this section by displaying a poster in a conspicuous
and accessible place in each establishment where covered employees are employed which
contains all information required under paragraph (a).
new text end

new text begin (d) The commissioner shall create and make available to employers for their use
in complying with this subdivision posters that contain the information required under
paragraph (a).
new text end

new text begin Subd. 6. new text end

new text begin Rulemaking; investigations. new text end

new text begin (a) The commissioner shall adopt rules for
implementing this section including, but not limited to, requirements for documentation
by employers demonstrating compliance with this section.
new text end

new text begin (b) The commissioner shall have enforcement authority and powers as provided
under section 175.20 to administer this section.
new text end

new text begin Subd. 7. new text end

new text begin Remedies. new text end

new text begin (a) Any person aggrieved by a failure of an employer to provide
earned sick and safe time as required by this section may bring an action in district
court against the employer. A prevailing plaintiff in an action under this paragraph is
entitled to recover the full amount of accrued earned sick and safe time, plus any actual
damages suffered as a result of the employer's failure to provide earned sick and safe
time, and reasonable attorney fees. A prevailing plaintiff is also entitled to any other
appropriate legal or equitable relief as determined by the court, including but not limited
to reinstatement in employment.
new text end

new text begin (b) A covered employee subjected to retaliation in violation of this section may
bring an action in district court against the employer. A prevailing plaintiff in an action
under this paragraph is entitled to recover damages and reasonable attorney fees, and other
appropriate legal or equitable relief as determined by the court.
new text end

new text begin (c) Any person aggrieved by a violation of this section may file a complaint with the
attorney general. The filing of a complaint with the attorney general does not preclude
the filing of a civil action under paragraph (a) or (b). The attorney general may bring a
civil action in district court to enforce this section on behalf of any person. The attorney
general may request injunctive relief and, in the case of a willful violation, imposition of a
fine of $1,000 per violation payable to the state.
new text end

new text begin (d) An action authorized by this subdivision may be filed no later than five years
from the date the alleged violation occurred.
new text end

new text begin (e) Persons filing an action under this subdivision may seek certification as a class,
consistent with the requirements of law and court rule.
new text end

new text begin Subd. 8. new text end

new text begin Confidentiality and nondisclosure. new text end

new text begin If an employer possesses health
or medical information or information pertaining to domestic abuse, sexual assault,
or stalking about a covered employee or covered employee's child, parent, spouse,
grandparent, sibling, or extended family member, such information shall be treated
as confidential and not disclosed except to the affected covered employee or with the
permission of the affected covered employee.
new text end

new text begin Subd. 9. new text end

new text begin Encouragement of more generous sick and safe time policies; no effect
on more generous policies.
new text end

new text begin (a) Nothing in this section shall be construed to discourage or
prohibit an employer from the adoption or retention of an earned sick and safe time policy
more generous than required under this section.
new text end

new text begin (b) Nothing in this section shall be construed as diminishing the obligation of an
employer to comply with any contract, collective bargaining agreement, employment
benefit plan, or other agreement providing more generous sick and safe time to a covered
employee than required under this section.
new text end

new text begin (c) Nothing in this section shall be construed as diminishing the rights of public
employees regarding paid leave or use of leave as provided in section 43A.1815.
new text end

new text begin Subd. 10. new text end

new text begin Termination, separation, transfer. new text end

new text begin Nothing in this subdivision may be
construed as requiring financial or other reimbursement to a covered employee from an
employer upon the covered employee's termination, resignation, retirement, or other
separation from employment for accrued earned sick and safe time that has not been
used. If a covered employee is transferred to a separate division, entity, or location, but
remains employed by the same employer, the covered employee is entitled to all earned
sick and safe time accrued at the prior division, entity, or location and is entitled to use
all earned sick and safe time as provided in this section. When there is a separation from
employment and the covered employee is rehired within 12 months of separation by the
same employer, previously accrued earned sick and safe time that had not been used must
be reinstated. A covered employee is entitled to use accrued earned sick and safe time and
accrue additional earned sick and safe time at the commencement of reemployment.
new text end

new text begin An employer may loan earned sick and safe time to a covered employee in advance
of accrual by the covered employee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective 180 days following final enactment.
new text end

Sec. 7. new text begin SEVERABILITY.
new text end

new text begin If any provision of Minnesota Statutes, section 181.9441, or application thereof
to any person or circumstance is judged invalid, the invalidity shall not affect other
provisions or applications of the act which can be given effect without the invalid
provision or application, and to this end the provisions of this act are declared severable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2013 Supplement, section 181.9413, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective 180 days following final enactment.
new text end

ARTICLE 4

EMPLOYMENT PROTECTIONS

Section 1.

Minnesota Statutes 2012, section 181.939, is amended to read:


181.939 NURSING MOTHERS.

new text begin (a) new text end An employer must provide reasonable unpaid break time each day to an
employee who needs to express breast milk for her infant child. The break time must,
if possible, run concurrently with any break time already provided to the employee. An
employer is not required to provide break time under this section if to do so would unduly
disrupt the operations of the employer.

new text begin (b) new text end The employer must make reasonable efforts to provide a room or other location,
in close proximity to the work area, other than a new text begin bathroom or a new text end toilet stall, new text begin that is shielded
from view and free from intrusion from coworkers and the public and that includes access
to an electrical outlet,
new text end where the employee can express her milk in privacy. The employer
would be held harmless if reasonable effort has been made.

new text begin (c) new text end For the purposes of this section, "employer" means a person or entity that
employs one or more employees and includes the state and its political subdivisions.

new text begin (d) A violation of this section is an unfair employment practice as provided for under
section 363A.08, subdivision 8.
new text end

Sec. 2.

Minnesota Statutes 2012, section 363A.03, is amended by adding a subdivision
to read:


new text begin Subd. 18a. new text end

new text begin Family caregiver. new text end

new text begin "Family caregiver" means a person who cares for
another person:
new text end

new text begin (1) who is related by blood, marriage, or legal custody; or
new text end

new text begin (2) with whom the person lives in a familial relationship.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2012, section 363A.08, subdivision 1, is amended to read:


Subdivision 1.

Labor organization.

Except when based on a bona fide occupational
qualification, it is an unfair employment practice for a labor organization, because of race,
color, creed, religion, national origin, sex, marital status, status with regard to public
assistance,new text begin familial status, status as a family caregiver,new text end disability, sexual orientation, or age:

(1) to deny full and equal membership rights to a person seeking membership or
to a member;

(2) to expel a member from membership;

(3) to discriminate against a person seeking membership or a member with respect
to hiring, apprenticeship, tenure, compensation, terms, upgrading, conditions, facilities,
or privileges of employment; or

(4) to fail to classify properly, or refer for employment or otherwise to discriminate
against a person or member.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2012, section 363A.08, subdivision 2, is amended to read:


Subd. 2.

Employer.

Except when based on a bona fide occupational qualification, it
is an unfair employment practice for an employer, because of race, color, creed, religion,
national origin, sex, marital status, status with regard to public assistance,new text begin familial status,
status as a family caregiver,
new text end membership or activity in a local commission, disability,
sexual orientation, or age to:

(1) refuse to hire or to maintain a system of employment which unreasonably
excludes a person seeking employment; or

(2) discharge an employee; or

(3) discriminate against a person with respect to hiring, tenure, compensation, terms,
upgrading, conditions, facilities, or privileges of employment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2012, section 363A.08, subdivision 3, is amended to read:


Subd. 3.

Employment agency.

Except when based on a bona fide occupational
qualification, it is an unfair employment practice for an employment agency, because of
race, color, creed, religion, national origin, sex, marital status, status with regard to public
assistance,new text begin familial status, status as a family caregiver,new text end disability, sexual orientation, or
age to:

(1) refuse or fail to accept, register, classify properly, or refer for employment or
otherwise to discriminate against a person; or

(2) comply with a request from an employer for referral of applicants for
employment if the request indicates directly or indirectly that the employer fails to comply
with the provisions of this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2012, section 363A.08, subdivision 4, is amended to read:


Subd. 4.

Employer, employment agency, or labor organization.

(a) Except when
based on a bona fide occupational qualification, it is an unfair employment practice for an
employer, employment agency, or labor organization, before a person is employed by an
employer or admitted to membership in a labor organization, to:

(1) require or request the person to furnish information that pertains to race, color,
creed, religion, national origin, sex, marital status, status with regard to public assistance,
new text begin familial status,new text end new text begin status as a family caregiver,new text end disability, sexual orientation, or age; or, subject
to section 363A.20, to require or request a person to undergo physical examination; unless
for the sole and exclusive purpose of national security, information pertaining to national
origin is required by the United States, this state or a political subdivision or agency of
the United States or this state, or for the sole and exclusive purpose of compliance with
the Public Contracts Act or any rule, regulation, or laws of the United States or of this
state requiring the information or examination. A law enforcement agency may, after
notifying an applicant for a peace officer or part-time peace officer position that the law
enforcement agency is commencing the background investigation on the applicant, request
the applicant's date of birth, gender, and race on a separate form for the sole and exclusive
purpose of conducting a criminal history check, a driver's license check, and fingerprint
criminal history inquiry. The form shall include a statement indicating why the data is
being collected and what its limited use will be. No document which has date of birth,
gender, or race information will be included in the information given to or available to
any person who is involved in selecting the person or persons employed other than the
background investigator. No person may act both as background investigator and be
involved in the selection of an employee except that the background investigator's report
about background may be used in that selection as long as no direct or indirect references
are made to the applicant's race, age, or gender; or

(2) seek and obtain for purposes of making a job decision, information from any
source that pertains to the person's race, color, creed, religion, national origin, sex,
marital status, status with regard to public assistance,new text begin familial status, status as a family
caregiver,
new text end disability, sexual orientation, or age, unless for the sole and exclusive purpose
of compliance with the Public Contracts Act or any rule, regulation, or laws of the United
States or of this state requiring the information; or

(3) cause to be printed or published a notice or advertisement that relates to
employment or membership and discloses a preference, limitation, specification, or
discrimination based on race, color, creed, religion, national origin, sex, marital status,
status with regard to public assistance,new text begin familial status,new text end new text begin status as a family caregiver,
new text end disability, sexual orientation, or age.

(b) Any individual who is required to provide information that is prohibited by this
subdivision is an aggrieved party under sections 363A.06, subdivision 4, and 363A.28,
subdivisions 1 to 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2012, section 363A.08, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Wage disclosure protection. new text end

new text begin An employer shall not discharge or in any
other manner discriminate or retaliate against, coerce, intimidate, threaten, or interfere
with any employee because the employee inquired about, disclosed, compared, or
discussed the employee's wages or the wages of any other employee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2012, section 363A.08, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Nursing mothers. new text end

new text begin Except when based on a bona fide occupational
qualification, any violation of section 181.939 by an employer is an unfair employment
practice.
new text end

ARTICLE 5

AFFORDABLE CHILDCARE

Section 1.

Minnesota Statutes 2013 Supplement, section 119B.011, subdivision 19b,
is amended to read:


Subd. 19b.

Student parent.

"Student parent" means a person who is:

(1) under 21 years of age and has a child;

(2) pursuing a high school or general equivalency diploma;new text begin and
new text end

deleted text begin (3) residing within a county that has a basic sliding fee waiting list under section
119B.03, subdivision 4; and
deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end not an MFIP participant.

Sec. 2.

Minnesota Statutes 2012, section 119B.02, subdivision 1, is amended to read:


Subdivision 1.

Child care services.

The commissioner shall develop standards
for county and human services boards to provide child care services to enable eligible
families to participate in employment, training, or education programs. deleted text begin Within the limits
of available appropriations,
deleted text end The commissioner shall distribute money to counties to
reduce the costs of child care for eligible families. The commissioner shall adopt rules to
govern the program in accordance with this section. The rules must establish a sliding
schedule of fees for parents receiving child care services. The rules shall provide that
funds received as a lump-sum payment of child support arrearages shall not be counted
as income to a family in the month received but shall be prorated over the 12 months
following receipt and added to the family income during those months. The commissioner
shall maximize the use of federal money under title I and title IV of Public Law 104-193,
the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and
other programs that provide federal or state reimbursement for child care services for
low-income families who are in education, training, job search, or other activities allowed
under those programs. Money appropriated under this section must be coordinated with
the programs that provide federal reimbursement for child care services to accomplish
this purpose. deleted text begin Federal reimbursement obtained must be allocated to the county that spent
money for child care that is federally reimbursable under programs that provide federal
reimbursement for child care services.
deleted text end The deleted text begin countiesdeleted text end new text begin commissionernew text end shall use the federal
money to expand child care services. The commissioner may adopt rules under chapter 14
to implement and coordinate federal program requirements.

Sec. 3.

Minnesota Statutes 2012, section 119B.02, subdivision 2, is amended to read:


Subd. 2.

Contractual agreements with tribes.

The commissioner may enter into
contractual agreements with a federally recognized Indian tribe with a reservation in
Minnesota to carry out the responsibilities of county human service agencies to the extent
necessary for the tribe to operate child care assistance programs under sections 119B.03 and
119B.05. An agreement may allow for the tribe to be reimbursed for child care assistance
services provided under deleted text begin sectiondeleted text end new text begin sections 119B.03 andnew text end 119B.05. The commissioner shall
consult with the affected county or counties in the contractual agreement negotiations, if
the county or counties wish to be included, in order to avoid the duplication of county
and tribal child care services. deleted text begin Funding to support services under section 119B.03 may be
transferred to the federally recognized Indian tribe with a reservation in Minnesota from
allocations available to counties in which reservation boundaries lie. When funding is
transferred under section 119B.03, the amount shall be commensurate to estimates of the
proportion of reservation residents with characteristics identified in section 119B.03,
subdivision 6
, to the total population of county residents with those same characteristics.
deleted text end

Sec. 4.

Minnesota Statutes 2012, section 119B.03, subdivision 9, is amended to read:


Subd. 9.

Portability pool.

deleted text begin (a) The commissioner shall establish a pool of up to five
percent of the annual appropriation for the basic sliding fee program to provide continuous
child care assistance for eligible families who move between Minnesota counties. At the
end of each allocation period, any unspent funds in the portability pool must be used for
assistance under the basic sliding fee program. If expenditures from the portability pool
exceed the amount of money available, the reallocation pool must be reduced to cover
these shortages.
deleted text end

deleted text begin (b) To be eligible for portable basic sliding fee assistance, a family that has moved
from a county in which it
deleted text end new text begin (a) A family receiving child care assistance under the child care
fund that has moved from a county in which the family
new text end was receiving deleted text begin basic sliding fee
deleted text end new text begin child carenew text end assistance to deleted text begin adeleted text end new text begin anothernew text end county deleted text begin with a waiting list for the basic sliding fee program
deleted text end mustnew text begin be admitted into the receiving county's child care assistance program if the familynew text end :

(1) deleted text begin meetdeleted text end new text begin meetsnew text end the income and eligibility guidelines for the basic sliding fee
program; and

(2) deleted text begin notifydeleted text end new text begin notifiesnew text end the new county of residence within 60 days of moving and deleted text begin submit
deleted text end new text begin submitsnew text end information to the new county of residence to verify eligibility for the basic
sliding fee program.

deleted text begin (c)deleted text end new text begin (b)new text end The receiving county mustdeleted text begin :
deleted text end

deleted text begin (1)deleted text end accept administrative responsibility deleted text begin for applicants for portable basic sliding fee
assistance
deleted text end at the end of the two months of assistance under the Unitary Residency Actdeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (2) continue basic sliding fee assistance for the lesser of six months or until the
family is able to receive assistance under the county's regular basic sliding program; and
deleted text end

deleted text begin (3) notify the commissioner through the quarterly reporting process of any family
that meets the criteria of the portable basic sliding fee assistance pool.
deleted text end

Sec. 5.

Minnesota Statutes 2012, section 119B.035, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

A family in which a parent provides care for the
family's infant child may receive a subsidy in lieu of assistance if the family is eligible for
or is receiving assistance under the basic sliding fee program. An eligible family must
meet the eligibility factors under section 119B.09, except as provided in subdivision 4,
and the requirements of this section. Subject to federal match and maintenance of effort
requirements for the child care and development fund, deleted text begin and up to available appropriations,
deleted text end the commissioner shall provide assistance under the at-home infant child care program
and for administrative costs associated with the program. At the end of a fiscal year, the
commissioner may carry forward any unspent funds under this section to the next fiscal
year within the same biennium for assistance under the basic sliding fee program.

Sec. 6.

Minnesota Statutes 2012, section 119B.035, subdivision 4, is amended to read:


Subd. 4.

Assistance.

(a) A family is limited to a lifetime total of 12 months of
assistance under subdivision 2. The maximum rate of assistance is equal to 68 percent
of the rate established under section 119B.13 for care of infants in licensed family child
care in the applicant's county of residence.

(b) A participating family must report income and other family changes as specified
in the county's plan under section 119B.08, subdivision 3.

(c) deleted text begin Persons who are admitted to the at-home infant child care program retain their
position in any basic sliding fee program. Persons leaving the at-home infant child care
program reenter the basic sliding fee program at the position they would have occupied.
deleted text end

deleted text begin (d)deleted text end Assistance under this section does not establish an employer-employee
relationship between any member of the assisted family and the county or state.

Sec. 7.

Minnesota Statutes 2013 Supplement, section 119B.05, subdivision 1, is
amended to read:


Subdivision 1.

Eligible participants.

Families eligible for child care assistance
under the MFIP child care program are:

(1) MFIP participants who are employed or in job search and meet the requirements
of section 119B.10;

(2) persons who are members of transition year families under section 119B.011,
subdivision 20
, and meet the requirements of section 119B.10;

(3) families who are participating in employment orientation or job search, or
other employment or training activities that are included in an approved employability
development plan under section 256J.95;

(4) MFIP families who are participating in work job search, job support,
employment, or training activities as required in their employment plan, or in appeals,
hearings, assessments, or orientations according to chapter 256J;

(5) MFIP families who are participating in social services activities under chapter
256J as required in their employment plan approved according to chapter 256J;

(6) families who are participating in services or activities that are included in an
approved family stabilization plan under section 256J.575;

(7) families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2;new text begin and
new text end

deleted text begin (8) families who are participating in the transition year extension under section
119B.011, subdivision 20a; and
deleted text end

deleted text begin (9)deleted text end new text begin (8)new text end student parents as defined under section 119B.011, subdivision 19b.

Sec. 8.

Minnesota Statutes 2012, section 119B.05, subdivision 5, is amended to read:


Subd. 5.

Federal reimbursement.

Countiesnew text begin and the statenew text end shall maximize their
federal reimbursement under federal reimbursement programs for money spent for persons
eligible under this chapter. The commissioner shall allocate any federal earnings to the
county to be used to expand child care services under this chapter.

Sec. 9.

Minnesota Statutes 2012, section 119B.08, subdivision 3, is amended to read:


Subd. 3.

Child care fund plan.

The county and designated administering agency
shall submit a biennial child care fund plan to the commissioner. The commissioner shall
establish the dates by which the county must submit the plans. The plan shall include:

(1) a description of strategies to coordinate and maximize public and private
community resources, including school districts, health care facilities, government
agencies, neighborhood organizations, and other resources knowledgeable in early
childhood development, in particular to coordinate child care assistance with existing
community-based programs and service providers including child care resource and
referral programs, early childhood family education, school readiness, Head Start, local
interagency early intervention committees, special education services, early childhood
screening, and other early childhood care and education services and programs to the extent
possible, to foster collaboration among agencies and other community-based programs that
provide flexible, family-focused services to families with young children and to facilitate
transition into kindergarten. The county must describe a method by which to share
information, responsibility, and accountability among service and program providers;

(2) a description of procedures and methods to be used to make copies of the
proposed state plan reasonably available to the public, including members of the public
particularly interested in child care policies such as parents, child care providers, culturally
specific service organizations, child care resource and referral programs, interagency
early intervention committees, potential collaborative partners and agencies involved in
the provision of care and education to young children, and allowing sufficient time for
public review and comment; and

(3) information as requested by the department to ensure compliance with the child
care fund statutes and rules promulgated by the commissioner.

The commissioner shall notify counties within 90 days of the date the plan is
submitted whether the plan is approved or the corrections or information needed to approve
the plan. The commissioner shall withhold deleted text begin a county's allocation until it has an approved
plan. Plans not approved by the end of the second quarter after the plan is due may result
in a 25 percent reduction in allocation. Plans not approved by the end of the third quarter
after the plan is due may result in a 100 percent reduction in the allocation to the county
deleted text end new text begin payments to a county until it has an approved plannew text end . Counties are to maintain services despite
any deleted text begin reduction in their allocationdeleted text end new text begin withholding of paymentsnew text end due to plans not being approved.

Sec. 10.

Minnesota Statutes 2012, section 119B.09, subdivision 4a, is amended to read:


Subd. 4a.

Temporary ineligibility of military personnel.

Counties must reserve a
family's position under the child care assistance fund if a family has been receiving child
care assistance but is temporarily ineligible for assistance due to increased income from
active military service. Activated military personnel may be temporarily ineligible until
deactivation. deleted text begin A county must reserve a military family's position on the basic sliding fee
waiting list under the child care assistance fund if a family is approved to receive child care
assistance and reaches the top of the waiting list but is temporarily ineligible for assistance.
deleted text end

Sec. 11.

Minnesota Statutes 2013 Supplement, section 119B.13, subdivision 1, is
amended to read:


Subdivision 1.

Subsidy restrictions.

(a) Beginning deleted text begin February 3deleted text end new text begin July 1new text end , 2014, the
maximum rate paid for child care assistance in any county or county price cluster under
the child care fund shall be the greater of the deleted text begin 25thdeleted text end new text begin 50thnew text end percentile of the deleted text begin 2011deleted text end new text begin most recent
biennial
new text end child care provider rate surveynew text begin under section 119B.02, subdivision 7,new text end or the
maximum rate effective November 28, 2011. The commissioner may: (1) assign a county
with no reported provider prices to a similar price cluster; and (2) consider county level
access when determining final price clusters.

(b) A rate which includes a special needs rate paid under subdivision 3 or under a
school readiness service agreement paid under section 119B.231, may be in excess of the
maximum rate allowed under this subdivision.

(c) The department shall monitor the effect of this paragraph on provider rates. The
county shall pay the provider's full charges for every child in care up to the maximum
established. The commissioner shall determine the maximum rate for each type of care
on an hourly, full-day, and weekly basis, including special needs and disability care. The
maximum payment to a provider for one day of care must not exceed the daily rate. The
maximum payment to a provider for one week of care must not exceed the weekly rate.

(d) Child care providers receiving reimbursement under this chapter must not be
paid activity fees or an additional amount above the maximum rates for care provided
during nonstandard hours for families receiving assistance.

(e) When the provider charge is greater than the maximum provider rate allowed,
the parent is responsible for payment of the difference in the rates in addition to any
family co-payment fee.

(f) All maximum provider rates changes shall be implemented on the Monday
following the effective date of the maximum provider rate.

(g) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum
registration fees in effect on January 1, 2013, shall remain in effect.

Sec. 12.

Minnesota Statutes 2012, section 119B.231, subdivision 5, is amended to read:


Subd. 5.

Relationship to current law.

(a) The following provisions in chapter 119B
must be waived or modified for families receiving services under this section.

(b) Notwithstanding section 119B.13, subdivisions 1 and 1a, maximum weekly rates
under this section are 125 percent of the existing maximum weekly rate for like-care.
Providers eligible for a differential rate under section 119B.13, subdivision 3a, remain
eligible for the differential above the rate identified in this section. Only care for children
who have not yet entered kindergarten may be paid at the maximum rate under this
section. The provider's charge for service provided through an SRSA may not exceed the
rate that the provider charges a private-pay family for like-care arrangements.

(c) A family or child care provider may not be assessed an overpayment for care
provided through an SRSA unless:

(1) there was an error in the amount of care authorized for the family; or

(2) the family or provider did not timely report a change as required under the law.

(d) Care provided through an SRSA is authorized on a weekly basis.

(e) deleted text begin Funds appropriated under this section to serve families eligible under section
119B.03 are not allocated through the basic sliding fee formula under section 119B.03.
deleted text end Funds appropriated under this section are used to offset increased costs when payments
are made under SRSA's.

(f) Notwithstanding section 119B.09, subdivision 6, the maximum amount of child
care assistance that may be authorized for a child receiving care through an SRSA in a
two-week period is 160 hours per child.

(g) Effective May 23, 2008, absent day payment limits under section 119B.13,
subdivision 7
, do not apply to children for care paid through SRSA's provided the family
remains eligible under subdivision 3.

Sec. 13.

Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 3,
is amended to read:


Subd. 3.

Administration.

(a) The commissioner shall establish application
timelines and determine the schedule for awarding scholarships that meets operational
needs of eligible families and programs. The commissioner may prioritize applications on
factors including family income, geographic location, and whether the child's family is on a
waiting list for a publicly funded program providing early education or child care services.

(b) Scholarships may be awarded deleted text begin updeleted text end to deleted text begin $5,000 fordeleted text end each eligible childnew text begin . The
commissioner shall establish a target for the average scholarship amount per child
based on the results of the rate survey conducted under section 119B.13, subdivision 1,
paragraph (b),
new text end per year.

(c) A four-star rated program that has children eligible for a scholarship enrolled
in or on a waiting list for a program beginning in July, August, or September may notify
the commissioner, in the form and manner prescribed by the commissioner, each year
of the program's desire to enhance program services or to serve more children than
current funding provides. The commissioner may designate a predetermined number of
scholarship slots for that program and notify the program of that number.

(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has
not been accepted and subsequently enrolled in a rated program within ten months of the
awarding of the scholarship, the scholarship cancels and the recipient must reapply in
order to be eligible for another scholarship. A child may not be awarded more than one
scholarship in a 12-month period.

(e) A child who receives a scholarship who has not completed development
screening under sections 121A.16 to 121A.19 must complete that screening within 90
days of first attending an eligible program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2012, section 256.017, subdivision 9, is amended to read:


Subd. 9.

Timing and disposition of penalty and case disallowance funds.

Quality
control case penalty and administrative penalty amounts shall be disallowed or withheld
from the next regular reimbursement made to the county agency for state and federal
benefit reimbursements and federal administrative reimbursements for all programs
covered in this section, according to procedures established in statute, but shall not be
imposed sooner than 30 calendar days from the date of written notice of such penalties.
Except for penalties withheld under the child care assistance program, all penalties
must be deposited in the county incentive fund provided in section 256.018. Penalties
withheld under the child care assistance program shall be reallocated to counties deleted text begin using the
allocation formula under section 119B.03, subdivision 5
deleted text end . All penalties must be imposed
according to this provision until a decision is made regarding the status of a written
exception. Penalties must be returned to county agencies when a review of a written
exception results in a decision in their favor.

Sec. 15. new text begin DIRECTION TO COMMISSIONER OF MANAGEMENT AND
BUDGET.
new text end

new text begin The state obligation for the basic sliding fee child care assistance program under
Minnesota Statutes, section 119B.03, must be included in the Minnesota Management
and Budget February and November forecast of state revenues and expenditures under
Minnesota Statutes, section 16A.103, beginning with the November 2014 forecast.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 119B.011, subdivision 20a; 119B.03,
subdivisions 1, 2, 5, 6, 6a, 6b, and 8; and 119B.09, subdivision 3,
new text end new text begin are repealed.
new text end

new text begin (b) Minnesota Statutes 2013 Supplement, section 119B.03, subdivision 4, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Rules, parts 3400.0020, subpart 8; 3400.0030; and 3400.0060,
subparts 2, 4, 6, 6a, and 7,
new text end new text begin are repealed.
new text end