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SF 2838

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/14/2023 08:05am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to commerce; authorizing certain insurers to offer paid family leave
insurance benefits; proposing coding for new law as Minnesota Statutes, chapter
63A.

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

Section 1.

new text begin [63A.01] DEFINITIONS.
new text end

new text begin (a) As used in this chapter, the following terms have the meanings given.
new text end

new text begin (b) "Armed forces of the United States" means members of the National Guard and
Reserves.
new text end

new text begin (c) "Child" means a person who is:
new text end

new text begin (1) under 18 years of age, or 18 years of age or older and incapable of self-care as a
result of a mental or physical disability; and
new text end

new text begin (2) a biological, adopted, or foster son or daughter; a stepson or stepdaughter; a legal
ward; a son or daughter of a domestic partner; or a son or daughter of a person to whom the
employee stands in loco parentis.
new text end

new text begin (d) "Family leave" means leave taken by an employee from work for a reason specified
in section 63A.03.
new text end

new text begin (e) "Family member" means a child, spouse, parent, or grandparent, as defined in this
chapter, or any other person defined as a family member in an insurance policy.
new text end

new text begin (f) "Health care provider" means an individual licensed, certified, or otherwise authorized
under law to practice in the individual's scope of practice as a physician, osteopath, surgeon,
or advanced practice registered nurse.
new text end

new text begin (g) "Parent" means a biological, foster, or adoptive parent; a stepparent; a legal guardian;
or other person who stood in loco parentis to the employee when the employee was a child.
new text end

new text begin (h) "Serious health condition" means an illness, injury, impairment, or physical or mental
condition, including organ or tissue transplant or donation, that involves inpatient care in a
hospital, hospice, or residential health care facility, continuing treatment, or continuing
supervision by a health care provider, as defined in an insurance policy. Continuing
supervision by a health care provider includes a period of incapacity that is permanent or
long term due to a condition for which treatment may not be effective and where the family
member is not receiving active treatment by a health care provider.
new text end

Sec. 2.

new text begin [63A.02] PAID FAMILY LEAVE INCOME REPLACEMENT BENEFITS.
new text end

new text begin (a) An insurance company licensed to issue disability income insurance policies in
Minnesota may also offer paid family leave insurance benefits providing wage replacement
for the employee's income loss due to:
new text end

new text begin (1) the birth or adoption of a child by the employee;
new text end

new text begin (2) placement of a child with the employee for foster care;
new text end

new text begin (3) care of an employee's family member who has a serious health condition; or
new text end

new text begin (4) circumstances arising from the fact that the employee's family member is a service
member on active duty or has been notified of an impending call or order to active duty.
new text end

new text begin (b) The benefits may be offered either through a rider to a disability income insurance
policy or as a separate insurance policy. The benefits may also be offered through a group
policy.
new text end

Sec. 3.

new text begin [63A.03] FAMILY LEAVE BENEFITS.
new text end

new text begin Family leave benefits may be provided for leave taken from work by an employee to:
new text end

new text begin (1) participate in providing care, including physical or psychological care, for the
employee's family member that is made necessary by the family member's serious health
condition;
new text end

new text begin (2) bond with the employee's child during the first 12 months after the child's birth, or
the first 12 months after the placement of the child for adoption or foster care with the
employee;
new text end

new text begin (3) address a qualifying exigency, as interpreted under the Family and Medical Leave
Act, United States Code, title 29, section 2612(a)(1)(e), and Code of Federal Regulations,
title 29, sections 825.126(a)(1) to (8), arising from the fact that the spouse, child, or parent
of the employee is on active duty or has been notified of an impending call or order to active
duty in the armed forces of the United States;
new text end

new text begin (4) care for a family service member injured in the line of duty; or
new text end

new text begin (5) take other leave to provide care for a family member or other family leave, as specified
in an insurance policy.
new text end

Sec. 4.

new text begin [63A.04] EXPLANATION OF FAMILY LEAVE REASONS.
new text end

new text begin An insurance policy must set forth the details and requirements regarding each reason
for covered family leave.
new text end

Sec. 5.

new text begin [63A.05] BENEFIT PERIOD.
new text end

new text begin (a) An insurance policy must set the length of family leave benefits available for each
covered family leave reason as 52 consecutive calendar weeks. Fifty-two consecutive
calendar weeks may be calculated by:
new text end

new text begin (1) a calendar year;
new text end

new text begin (2) any fixed period starting on a particular date, including the policy effective date or
anniversary date;
new text end

new text begin (3) the period measured forward from the employee's first day of family leave;
new text end

new text begin (4) a rolling period measured by looking back from the employee's first day of family
leave; or
new text end

new text begin (5) any other method specified in the insurance policy.
new text end

new text begin (b) An insurance policy must set forth whether there is an unpaid waiting period and, if
so, the unpaid waiting period terms and conditions, which may include but are not limited
to whether:
new text end

new text begin (1) the waiting period runs over a period of consecutive calendar days;
new text end

new text begin (2) the waiting period is in addition to the annual allotment of family leave benefits;
new text end

new text begin (3) the waiting period must be met only once per benefit year; and
new text end

new text begin (4) the employee may work or receive paid time off or other compensation from the
employer during the waiting period.
new text end

Sec. 6.

new text begin [63A.06] AMOUNT OF FAMILY LEAVE BENEFITS; OTHER INCOME.
new text end

new text begin (a) An insurance policy must set forth:
new text end

new text begin (1) the amount of benefits that are paid for covered family leave reasons;
new text end

new text begin (2) the definition of the wages or other income upon which the amount of family leave
benefits is based; and
new text end

new text begin (3) how the wages or other income is calculated.
new text end

new text begin (b) If family leave benefits are subject to offsets for wages, other income received, or
other income that the insured may be eligible for, the policy must set forth:
new text end

new text begin (1) all wages or other income that may be set off; and
new text end

new text begin (2) the circumstances under which wages or other income may be offset.
new text end

Sec. 7.

new text begin [63A.07] PERMISSIBLE LIMITATIONS AND EXCLUSIONS.
new text end

new text begin Any limitations or exclusions must be set forth in an insurance policy and approved by
the commissioner.
new text end

Sec. 8.

new text begin [63A.08] OTHER PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin State may not act as insurer. new text end

new text begin The state of Minnesota must not act as an
insurer under sections 63A.01 to 63A.08. The state must not provide or facilitate coverage
under sections 63A.01 to 63A.08 either by contract with a licensed insurer or otherwise.
new text end

new text begin Subd. 2. new text end

new text begin Joint pool. new text end

new text begin Any two or more employers or an association of employers may
jointly issue paid family leave insurance benefits as set forth under sections 62H.01 to
62H.08.
new text end

Sec. 9. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 8 are effective January 1, 2024.
new text end