SF 2996

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic security; creating a birth and 
  1.3             adoption fund and providing paid parental leave to 
  1.4             eligible employees; amending Minnesota Statutes 1999 
  1.5             Supplement, section 268.051, subdivision 2; proposing 
  1.6             coding for new law in Minnesota Statutes, chapter 268. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.9   268.051, subdivision 2, is amended to read: 
  1.10     Subd. 2.  [COMPUTATION OF TAX RATES.] (a) For each calendar 
  1.11  year the commissioner shall compute the tax rate of each 
  1.12  taxpaying employer that qualifies for an experience rating by 
  1.13  adding the minimum tax rate to the employer's experience rating. 
  1.14     (b) The minimum tax rate shall be six-tenths 57/100 of one 
  1.15  percent if the amount in the fund is less than $200,000,000 on 
  1.16  June 30 of the prior calendar year; or five-tenths 47/100 of one 
  1.17  percent if the fund is more than $200,000,000 but less than 
  1.18  $225,000,000; or four-tenths 37/100 of one percent if the fund 
  1.19  is more than $225,000,000 but less than $250,000,000; 
  1.20  or three-tenths 27/100 of one percent if the fund is more than 
  1.21  $250,000,000 but less than $275,000,000; or two-tenths 17/100 of 
  1.22  one percent if the fund is $275,000,000 but less than 
  1.23  $300,000,000; or one-tenth 7/100 of one percent if the fund is 
  1.24  $300,000,000 or more. 
  1.25     (c) For the purposes of this subdivision the fund shall not 
  1.26  include any money borrowed from the federal unemployment trust 
  2.1   fund pursuant to section 268.194, subdivision 6. 
  2.2      Sec. 2.  [268.99] [BIRTH AND ADOPTION LEAVE PROGRAM.] 
  2.3      Subdivision 1.  [DEFINITIONS.] For the purpose of this 
  2.4   section, "approved leave of absence" means an approved, 
  2.5   temporary separation from a specific employer. 
  2.6      Subd. 2.  [CREATED.] The commissioner of economic security 
  2.7   shall administer a birth and adoption leave program to provide 
  2.8   paid parental leave for six weeks to eligible employees during 
  2.9   the first year of their newborn's life or during the first year 
  2.10  after placement of their newly adopted child.  The program shall 
  2.11  be funded through an employer assessment. 
  2.12     Subd. 3.  [REIMBURSING EMPLOYER.] An employer making 
  2.13  payments in lieu of taxes under sections 268.052 and 268.053 
  2.14  shall be billed and required to reimburse the birth and adoption 
  2.15  leave fund for paid parental leave benefits. 
  2.16     Subd. 4.  [DETERMINATION AND COLLECTION OF SPECIAL 
  2.17  ASSESSMENT.] In addition to all other taxes, assessments, and 
  2.18  payment obligations under this chapter, each employer, except an 
  2.19  employer making payments in lieu of taxes under sections 268.052 
  2.20  and 268.053, is liable for a special assessment levied at the 
  2.21  rate of 3/100 of one percent per year on all taxable wages as 
  2.22  defined in section 268.035, subdivision 24.  The assessment 
  2.23  becomes due and must be paid by each employer to the 
  2.24  commissioner of economic security on the same schedule and in 
  2.25  the same manner as other taxes required by section 268.051. 
  2.26     Subd. 5.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
  2.27  The money collected under this section must be deposited in the 
  2.28  state treasury and credited to a special account, to be known as 
  2.29  the birth and adoption leave fund, to provide for the birth and 
  2.30  adoption leave program. 
  2.31     (b) All money in the birth and adoption leave fund is 
  2.32  appropriated to the commissioner of economic security who must 
  2.33  act as the fiscal agent for the money and must disburse the 
  2.34  money for the purposes of this section, not allowing the money 
  2.35  to be used for any other obligation of the state.  All money in 
  2.36  the birth and adoption leave fund must be deposited, 
  3.1   administered, and disbursed in the same manner and under the 
  3.2   same conditions and requirements as are provided by law for the 
  3.3   other dedicated funds in the state treasury. 
  3.4      (c) No more than five percent of the birth and adoption 
  3.5   leave assessment collected in each fiscal year may be used by 
  3.6   the department of economic security for its administrative costs.
  3.7      (d) Reimbursement for costs related to collection of the 
  3.8   special assessment must be in an amount negotiated between the 
  3.9   commissioner and the United States Department of Labor. 
  3.10     Subd. 6.  [ELIGIBILITY.] In order to be eligible for birth 
  3.11  and adoption leave benefits, the employee must meet the 
  3.12  eligibility requirements of section 268.085, except subdivisions 
  3.13  1, clauses (2) and (4), and 2, clause (4), and must also meet 
  3.14  the following requirements: 
  3.15     (1) the employee must establish a base period, as defined 
  3.16  in section 268.035, subdivision 4; 
  3.17     (2) the employee must have earned a majority of wage 
  3.18  credits from one employer; 
  3.19     (3) the employee must have both physical and legal custody 
  3.20  of the child; 
  3.21     (4) the employee must be on an approved leave of absence 
  3.22  from the employer; 
  3.23     (5) the employee cannot work for another employer while 
  3.24  receiving paid parental leave benefits; and 
  3.25     (6) the employee cannot collect birth and adoption benefits 
  3.26  if the employee is already collecting similar benefits in 
  3.27  another state. 
  3.28     Subd. 7.  [APPLICATION PROCESS.] To receive birth and 
  3.29  adoption benefits, an employee must file an application with the 
  3.30  department of economic security.  The application is established 
  3.31  effective the Sunday of the calendar week that the application 
  3.32  for benefits was filed. 
  3.33     Subd. 8.  [BENEFIT AMOUNT.] Benefits shall be payable to an 
  3.34  eligible employee who has made application with the department 
  3.35  of economic security.  The benefit amount shall be the lesser of 
  3.36  the employee's average weekly wage during the high quarter or 
  4.1   the statewide average weekly wage.  Section 268.21 applies to 
  4.2   the state's obligation to pay benefits under this section. 
  4.3      Subd. 9.  [IMPLEMENTATION.] Paid parental leave benefits 
  4.4   shall be available for birth and adoption leaves commencing on 
  4.5   or after September 1, 2001. 
  4.6      Sec. 3.  [EXPIRATION.] 
  4.7      Sections 1 and 2 expire on June 30, 2003. 
  4.8      Sec. 4.  [EFFECTIVE DATE.] 
  4.9      This act is effective the day following final enactment.