SF 3612

as introduced - 89th Legislature (2015 - 2016) Posted on 05/10/2016 08:26am

A bill for an act
relating to employment; providing a phased-in minimum wage increase; enabling
low-income workers to meet basic needs; increasing the working family credit
to exceed the federal earned income tax credit; providing increased child care
assistance to all low-income workers; reestablishing the Minnesota emergency
employment development program; reducing welfare costs to taxpayers;
authorizing rulemaking; appropriating money; amending Minnesota Statutes
2014, sections 119B.02, subdivisions 1, 2; 119B.03, subdivisions 3, 9, 10;
119B.035, subdivisions 1, 2, 5; 119B.05, subdivision 5; 119B.08, subdivision
3; 119B.09, subdivision 7; 119B.10; 119B.11, subdivision 1; 119B.12,
subdivision 2; 119B.13, subdivision 1; 119B.15; 119B.24; 177.24, subdivision
1; Minnesota Statutes 2015 Supplement, sections 119B.035, subdivision 4;
290.0671, subdivision 1; repealing Minnesota Statutes 2014, sections 119B.011,
subdivisions 20, 20a; 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, 8; 119B.05,
subdivision 1; 119B.07; 119B.09, subdivisions 3, 4a; 119B.11, subdivision 4;
290.0671, subdivision 7.

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

ARTICLE 1

FINDINGS

Section 1. new text begin FINDINGS.
new text end

new text begin (a) The Legislative Commission on Ending Poverty in Minnesota called for steps to
bring an end to poverty by 2020, yet a large number of Minnesotans continue to struggle
to make ends meet. More than one in ten Minnesotans lives in poverty, and three in ten are
struggling to meet basic needs. Some workers cannot afford housing and go from their
jobs to a homeless shelter at night. More than half the time has passed between the year in
which the Poverty Commission wrote the report and the year 2020, yet little progress has
been made and bolder action is needed.
new text end

new text begin (b) Because low-income people frequently need government assistance to feed
their families, the most effective welfare reform is to help Minnesota workers succeed
in the economy. This includes ensuring that there are jobs available to them, that they
have access to affordable child care, and that, through higher wages and an increase in
the working family tax credit, they are able to afford basic needs. Helping low-income
workers and their families will boost their productivity, improve the economy, and reduce
financial assistance costs for the state.
new text end

ARTICLE 2

MINIMUM WAGE

Section 1.

Minnesota Statutes 2014, 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 $500,000 (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 $500,000 (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 177.35:

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

(i) deleted text begin $8.00 deleted text end new text begin $8 new text end per hour beginning August 1, 2014;

(ii) deleted text begin $9.00 deleted text end new text begin $9 new text end per hour beginning August 1, 2015;

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

new text begin (iv) $10.25 per hour beginning August 1, 2017;
new text end

new text begin (v) $11 per hour beginning August 1, 2018;
new text end

new text begin (vi) $12 per hour beginning August 1, 2019;
new text end

new text begin (vii) $13 per hour beginning August 1, 2020;
new text end

new text begin (viii) $14 per hour beginning August 1, 2021;
new text end

new text begin (ix) $15 per hour beginning August 1, 2022; and
new text end

deleted text begin (iv) deleted text end new text begin (x) new text end the rate established under paragraph deleted text begin (f) deleted text end new text begin (e) new text end beginning January 1, deleted text begin 2018 deleted text end new text begin
2023 new text end ; and

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

(i) $6.50 per hour beginning August 1, 2014;

(ii) $7.25 per hour beginning August 1, 2015;

(iii) $7.75 per hour beginning August 1, 2016; deleted text begin and
deleted text end

new text begin (iv) $8.50 per hour beginning August 1, 2017;
new text end

new text begin (v) $9.25 per hour beginning August 1, 2018;
new text end

new text begin (vi) $10 per hour beginning August 1, 2019;
new text end

new text begin (vii) $11 per hour beginning August 1, 2020;
new text end

new text begin (viii) $12 per hour beginning August 1, 2021;
new text end

new text begin (ix) $13 per hour beginning August 1, 2022; and
new text end

deleted text begin (iv) deleted text end new text begin (x) new text end the rate established under paragraph deleted text begin (f) deleted text end new text begin (e) new text end beginning January 1, deleted text begin 2018 deleted text end new text begin 2023 new 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 new text begin who is claimed
as a dependent on a federal income tax return new text end a wage of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; deleted text begin and
deleted text end

new text begin (4) $8.50 per hour beginning August 1, 2017;
new text end

new text begin (5) $9.25 per hour beginning August 1, 2018;
new text end

new text begin (6) $10 per hour beginning August 1, 2019;
new text end

new text begin (7) $11 per hour beginning August 1, 2020;
new text end

new text begin (8) $12 per hour beginning August 1, 2021;
new text end

new text begin (9) $13 per hour beginning August 1, 2022; and
new text end

deleted text begin (4) deleted text end new text begin (10) new text end the rate established under paragraph deleted text begin (f) deleted text end new text begin (e) new text end beginning January 1, deleted text begin 2018 deleted text end new text begin 2023 new text end .

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.

deleted text begin (d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
subdivisions 7, 8, and 11, must pay an employee working under a contract with the
employer that includes the provision by the employer of a food or lodging benefit, if the
employee is working under authority of a summer work travel exchange visitor program
(J) nonimmigrant visa, a wage of at least:
deleted text end

deleted text begin (1) $7.25 per hour beginning August 1, 2014;
deleted text end

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

deleted text begin (3) $7.75 per hour beginning August 1, 2016; and
deleted text end

deleted text begin (4) the rate established under paragraph (f) beginning January 1, 2018.
deleted text end

deleted 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.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end Notwithstanding paragraph (b), a large employer must pay an employee
under the age of 18 new text begin who is claimed as a dependent on a federal income tax return new text end at a
rate of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; deleted text begin and
deleted text end

new text begin (4) $8.50 per hour beginning August 1, 2017;
new text end

new text begin (5) $9.25 per hour beginning August 1, 2018;
new text end

new text begin (6) $10 per hour beginning August 1, 2019;
new text end

new text begin (7) $11 per hour beginning August 1, 2020;
new text end

new text begin (8) $12 per hour beginning August 1, 2021;
new text end

new text begin (9) $13 per hour beginning August 1, 2022; and
new text end

deleted text begin (4) deleted text end new text begin (10) new text end the rate established under paragraph deleted text begin (f) deleted text end new text begin (e) new text end beginning January 1, deleted text begin 2018 deleted text end new text begin 2023 new text end .

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.

deleted text begin (f) deleted text end new text begin (e) new text end No later than August 31 of each year, beginning in deleted text begin 2017 deleted text end new text begin 2022 new text end , the
commissioner shall determine the percentage increase in the rate of inflation, as measured
by the implicit price deflator, national data for personal consumption expenditures
as determined by the United States Department of Commerce, Bureau of Economic
Analysis during the 12-month period immediately preceding that August or, if that data
is unavailable, during the most recent 12-month period for which data is available. The
minimum wage rates in paragraphs (b), (c), new text begin and new text end (d) deleted text begin , and (e) deleted text end 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. A minimum wage rate shall not be reduced
under this paragraph. The new minimum wage rates determined under this paragraph
take effect on the next January 1.

deleted text begin (g)(1) deleted text end new text begin (f)(1) new text end No later than September 30 of each year, beginning in deleted text begin 2017 deleted text end new text begin 2022 new text end ,
the commissioner may issue an order that an increase calculated under paragraph deleted text begin (f) deleted text end new text begin
(e) new text end not take effect. The commissioner may issue the order only if the commissioner,
after consultation with the commissioner of management and budget, finds that leading
economic indicators, including but not limited to projections of gross domestic product
calculated by the United States Department of Commerce, Bureau of Economic Analysis;
the Consumer Confidence Index issued by the Conference Board; and seasonally adjusted
Minnesota unemployment rates, indicate the potential for a substantial downturn in the
state's economy. Prior to issuing an order, the commissioner shall also calculate and
consider the ratio of the rate of the calculated change in the minimum wage rate to the
rate of change in state median income over the same time period used to calculate the
change in wage rate. Prior to issuing the order, the commissioner shall hold a public
hearing, notice of which must be published in the State Register, on the department's Web
site, in newspapers of general circulation, and by other means likely to inform interested
persons of the hearing, at least ten days prior to the hearing. The commissioner must allow
interested persons to submit written comments to the commissioner before the public
hearing and for 20 days after the public hearing.

(2) The commissioner may in a year subsequent to issuing an order under clause
(1), make a supplemental increase in the minimum wage rate in addition to the increase
for a year calculated under paragraph deleted text begin (f) deleted text end new text begin (e) new text end . The supplemental increase may be in an
amount up to the full amount of the increase not put into effect because of the order. If the
supplemental increase is not the full amount, the commissioner may make a supplemental
increase of the difference, or any part of a difference, in a subsequent year until the full
amount of the increase ordered not to take effect has been included in a supplemental
increase. In making a determination to award a supplemental increase under this clause,
the commissioner shall use the same considerations and use the same process as for an
order under clause (1). A supplemental wage increase is not subject to and shall not be
considered in determining whether a wage rate increase exceeds the limits for annual wage
rate increases allowed under paragraph deleted text begin (f) deleted text end new text begin (e) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016.
new text end

ARTICLE 3

CHILD CARE ASSISTANCE ENHANCEMENT AND EXPANSION TO
COVER ALL LOW-INCOME WORKERS

Section 1.

Minnesota Statutes 2014, 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 counties deleted text end new text begin commissioner new 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. 2.

Minnesota Statutes 2014, 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 new text begin for families eligible new text end under
sections deleted text begin 119B.03 deleted text end new text begin 119B.09 new text end and deleted text begin 119B.05 deleted text end new text begin 119B.10 new text end . An agreement may allow the state
to make payments for child care assistance services provided under deleted text begin section 119B.05 deleted text end new text begin
this chapter new text end . 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. 3.

Minnesota Statutes 2014, section 119B.03, subdivision 3, is amended to read:

Subd. 3.

Eligible participants.

Families that meet the eligibility requirements
under sections deleted text begin 119B.07, deleted text end 119B.09 deleted text begin , deleted text end and 119B.10 deleted text begin , except MFIP participants, diversionary
work program, and transition year families deleted text end are eligible for child care assistance under the
deleted text begin basic sliding fee deleted text end new text begin child care assistance new text end program. Families enrolled in the deleted text begin basic sliding fee deleted text end
new text begin child care assistance new text end program shall be continued until they are no longer eligible. Child
care assistance provided through the child care fund is considered assistance to the parent.

Sec. 4.

Minnesota Statutes 2014, section 119B.03, subdivision 9, is amended to read:

Subd. 9.

deleted text begin Portability pool deleted text end new text begin Family move; continued participation new text end .

(a) deleted text begin 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 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
care new text end assistance to deleted text begin a deleted text end new text begin another new text end county deleted text begin with a waiting list for the basic sliding fee program deleted text end
must new text begin be admitted into the receiving county's child care assistance program if the family new text end :

(1) deleted text begin meet deleted text end new text begin meets new text end the income and eligibility guidelines for the deleted text begin basic sliding fee deleted text end new text begin child
care assistance new text end program; and

(2) deleted text begin notify deleted text end new text begin notifies new text end the new county of residence within 60 days of moving and deleted text begin submit deleted text end
new text begin submits new text end information to the new county of residence to verify eligibility for the deleted text begin basic
sliding fee deleted text end new text begin child care assistance new text end program.

deleted text begin (c) deleted text end new text begin (b) new text end The receiving county must deleted 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 Act deleted 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 2014, section 119B.03, subdivision 10, is amended to read:

Subd. 10.

Application; entry points.

Two or more methods of applying for the
deleted text begin basic sliding fee deleted text end new text begin child care assistance new text end program new text begin under this chapter new text end must be available to
applicants in each county. To meet the requirements of this subdivision, a county may
provide alternative methods of applying for assistance, including, but not limited to, a mail
application, or application sites that are located outside of government offices.

Sec. 6.

Minnesota Statutes 2014, 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 deleted text begin basic sliding fee deleted text end new text begin child care assistance new text end 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 deleted text begin basic
sliding fee deleted text end new text begin child care assistance new text end program.

Sec. 7.

Minnesota Statutes 2014, section 119B.035, subdivision 2, is amended to read:

Subd. 2.

Eligible families.

A family with an infant under the age of one year is
eligible for assistance if:

(1) the family is not receiving MFIP, other cash assistance, or other child care
assistance; new text begin and
new text end

deleted text begin (2) the family has not previously received a lifelong total of 12 months of assistance
under this section; and
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end the family is participating in the deleted text begin basic sliding fee deleted text end new text begin child care assistance
new text end program or provides verification of participating in an authorized activity at the time of
application and meets the program requirements.

Sec. 8.

Minnesota Statutes 2015 Supplement, section 119B.035, subdivision 4, is
amended to read:

Subd. 4.

Assistance.

(a) deleted text begin A family is limited to a lifetime total of 12 months of
assistance under subdivision 2. deleted text end 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
sections 256P.06 and 256P.07, and the county's plan under section 119B.08, subdivision 3.

deleted text begin (c) 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 new text begin (c) new 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. 9.

Minnesota Statutes 2014, section 119B.035, subdivision 5, is amended to read:

Subd. 5.

Implementation.

The commissioner shall implement the at-home infant
child care program under this section through counties that administer the deleted text begin basic sliding fee deleted text end
new text begin child care assistance new text end program under deleted text begin section 119B.03 deleted text end new text begin this chapter new text end . The commissioner must
develop and distribute consumer information on the at-home infant child care program to
assist parents of infants or expectant parents in making informed child care decisions.

Sec. 10.

Minnesota Statutes 2014, section 119B.05, subdivision 5, is amended to read:

Subd. 5.

Federal reimbursement.

Counties new text begin and the state new 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. 11.

Minnesota Statutes 2014, 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 plan new text end . Counties are to maintain services despite
any deleted text begin reduction in their allocation deleted text end new text begin withholding of payments new text end due to plans not being approved.

Sec. 12.

Minnesota Statutes 2014, section 119B.09, subdivision 7, is amended to read:

Subd. 7.

Date of eligibility for assistance.

(a) The date of eligibility for child care
assistance under this chapter is the later of the date the application was received by the
county; the beginning date of employment, education, or training; new text begin or new text end the date the infant is
born for applicants to the at-home infant care program deleted text begin ; or the date a determination has
been made that the applicant is a participant in employment and training services under
Minnesota Rules, part 3400.0080, or chapter 256J deleted text end .

(b) deleted text begin Payment ceases for a family under the at-home infant child care program when a
family has used a total of 12 months of assistance as specified under section 119B.035.
Payment of child care assistance for employed persons on MFIP is effective the date of
employment or the date of MFIP eligibility, whichever is later. deleted text end Payment of child care
assistance for MFIP or DWP participants in employment and training services is effective
the date of commencement of the services or the date of MFIP or DWP eligibility,
whichever is later. deleted text begin Payment of child care assistance for transition year child care must be
made retroactive to the date of eligibility for transition year child care.
deleted text end

deleted text begin (c) Notwithstanding paragraph (b), payment of child care assistance for participants
eligible under section 119B.05 may only be made retroactive for a maximum of six
months from the date of application for child care assistance.
deleted text end

Sec. 13.

Minnesota Statutes 2014, section 119B.10, is amended to read:

119B.10 EMPLOYMENT OR TRAINING ELIGIBILITY.

Subdivision 1.

Assistance for persons seeking and retaining employment.

(a)
Persons who are seeking employment and who are eligible for assistance under this deleted text begin section deleted text end
new text begin chapter new text end are eligible to receive up to 240 hours of child care assistance per calendar year.

(b) Employed persons who work at least an average of 20 hours and full-time students
who work at least an average of ten hours a week and receive at least a minimum wage
for all hours worked are eligible for continued child care assistance for employment. For
purposes of this section, work-study programs must be counted as employment. Child care
assistance during employment must be authorized as provided in paragraphs (c) and (d).

(c) When the person works for an hourly wage and the hourly wage is equal to or
greater than the applicable minimum wage, child care assistance shall be provided for the
actual hours of employment, break, and mealtime during the employment and travel time
up to two hours per day.

(d) When the person does not work for an hourly wage, child care assistance must be
provided for the lesser of:

(1) the amount of child care determined by dividing gross earned income by the
applicable minimum wage, up to one hour every eight hours for meals and break time,
plus up to two hours per day for travel time; or

(2) the amount of child care equal to the actual amount of child care used during
employment, including break and mealtime during employment, and travel time up to
two hours per day.

new text begin Subd. 1a. new text end

new text begin Assistance for persons participating in employment or family
stabilization plan. new text end

new text begin The following persons are also eligible for child care assistance:
new text end

new text begin (1) persons who are participating in work, job search, job support, employment, or
training activities as required in their job search support or employment plan or in appeals,
hearings, assessments, or orientations according to chapter 256J;
new text end

new text begin (2) persons who are participating in social services activities under chapter 256J as
required in their employment plan approved according to chapter 256J;
new text end

new text begin (3) families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2; and
new text end

new text begin (4) persons who are participating in services or activities that are included in an
approved family stabilization plan under section 256J.575.
new text end

Subd. 2.

Financial eligibility required.

Persons participating in employment
programs, training programs, or education programs are eligible for continued assistance
from the child care fund, if they are financially eligible under the sliding fee scale set
by the commissioner in section 119B.12.

new text begin Subd. 3. new text end

new text begin Child care assistance during education. new text end

new text begin (a) The following persons are
eligible for child care assistance for education or training:
new text end

new text begin (1) persons who meet the requirements of section 119B.09 who are enrolled in
remedial or basic education or English as a second language, or persons up to the age of
19 who are enrolled in an educational program to attain a high school diploma or general
equivalency diploma;
new text end

new text begin (2) persons who meet the requirements of this section and section 119B.09 who
receive child care assistance to reduce the costs of child care for education when employed
an average of at least ten hours per week under subdivision 1, and are not receiving
MFIP benefits; and
new text end

new text begin (3) persons who meet the requirements of this section and section 119B.09 who
receive child care assistance to reduce the costs of child care for education when enrolled
in a postsecondary educational institution as a full-time undergraduate student, and are not
receiving MFIP benefits.
new text end

new text begin (b) Notwithstanding subdivisions 5 and 6, assistance for persons under paragraph
(a), clause (3), is limited to 48 months or the length of time necessary to complete the
degree, whichever is shorter.
new text end

new text begin Subd. 4. new text end

new text begin Satisfactory progress. new text end

new text begin Students enrolled in an education program must
be making satisfactory progress toward completion of the program as stipulated in the
school's satisfactory progress policy.
new text end

new text begin Subd. 5. new text end

new text begin Limiting duration of training. new text end

new text begin Counties may not limit the duration of
child care subsidies for a person in an employment or educational program, except when
the person is found to be ineligible under the child care fund eligibility standards. Any
limitation must be based on a person's employment or family stabilization plan in the case
of an MFIP participant.
new text end

new text begin Subd. 6. new text end

new text begin Maximum length of time for training. new text end

new text begin The maximum length of time a
participant is eligible for child care assistance under the child care fund for education and
training is no more than the maximum time allowed to complete the credit requirements
for an associate or baccalaureate degree as stipulated in the school's satisfactory progress
policy. This length of time excludes basic or remedial education programs, English as
a second language, high school, and general equivalency diploma programs needed to
prepare for postsecondary education or employment.
new text end

new text begin Subd. 7. new text end

new text begin MFIP student moves to another county. new text end

new text begin If an MFIP participant who is
receiving child care assistance under this chapter moves to another county, continues
to participate in educational or training programs authorized in the MFIP participant's
employment or family stabilization plan, and continues to be eligible for child care
assistance under this chapter, the MFIP participant must receive continued child care
assistance from the county responsible for the MFIP participant's current employment or
family stabilization plan under section 256G.07.
new text end

Sec. 14.

Minnesota Statutes 2014, section 119B.11, subdivision 1, is amended to read:

Subdivision 1.

County contributions required.

(a) In addition to payments from
deleted text begin basic sliding fee deleted text end child care new text begin assistance new text end program participants, each county shall contribute
from county tax or other sources a fixed local match equal to its calendar year 1996
required county contribution reduced by the administrative funding loss that would have
occurred in state fiscal year 1996 under section 119B.15. The commissioner shall recover
funds from the county as necessary to bring county expenditures into compliance with this
subdivision. The commissioner may accept county contributions, including contributions
above the fixed local match, in order to make state payments.

(b) The commissioner may accept payments from counties to:

(1) fulfill the county contribution as required under subdivision 1;

(2) pay for services authorized under this chapter beyond those paid for with federal
or state funds or with the required county contributions; or

(3) pay for child care services in addition to those authorized under this chapter, as
authorized under other federal, state, or local statutes or regulations.

(c) The county payments must be deposited in an account in the special revenue
fund. Money in this account is appropriated to the commissioner for child care assistance
under this chapter and other applicable statutes and regulations and is in addition to other
state and federal appropriations.

Sec. 15.

Minnesota Statutes 2014, section 119B.12, subdivision 2, is amended to read:

Subd. 2.

Parent fee.

A family must be assessed a parent fee for each service period.
A family's parent fee must be a fixed percentage of its annual gross income. Parent fees
must apply to families eligible for child care assistance under deleted text begin sections 119B.03 and
119B.05 deleted text end new text begin section 119B.09 new text end . Income must be as defined in section 119B.011, subdivision 15.
The fixed percent is based on the relationship of the family's annual gross income to 100
percent of the annual state median income. Parent fees must begin at 75 percent of the
poverty level. The minimum parent fees for families between 75 percent and 100 percent
of poverty level must be $2 per biweekly period. Parent fees must provide for graduated
movement to full payment. Payment of part or all of a family's parent fee directly to the
family's child care provider on behalf of the family by a source other than the family shall
not affect the family's eligibility for child care assistance, and the amount paid shall be
excluded from the family's income. Child care providers who accept third-party payments
must maintain family specific documentation of payment source, amount, and time period
covered by the payment.

Sec. 16.

Minnesota Statutes 2014, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

(a) Beginning deleted text begin February 3, 2014 deleted text end new text begin July 1,
2015 new text end , the maximum rate paid for child care assistance deleted text begin in any county or county price
cluster under the child care fund shall be the greater of the 25th percentile of the 2011
child care provider rate survey 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 deleted text end new text begin is the
75th percentile rate for like-care arrangements as surveyed by the commissioner in the
most current market rate survey new text end .

(b) A rate which includes a special needs rate paid under subdivision 3 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. 17.

Minnesota Statutes 2014, section 119B.15, is amended to read:

119B.15 ADMINISTRATIVE EXPENSES.

The commissioner shall use up to 1/21 of the state and federal funds available for the
deleted text begin basic sliding fee program and 1/21 of the state and federal funds available for the MFIP deleted text end
child care new text begin assistance new text end program for deleted text begin payments to counties for administrative expenses deleted text end new text begin the
administrative costs of the delivery of direct services new text end . The commissioner shall make
monthly payments to each county based on direct service expenditures. Payments may be
withheld if monthly reports are incomplete or untimely.

Sec. 18.

Minnesota Statutes 2014, section 119B.24, is amended to read:

119B.24 DUTIES OF COMMISSIONER.

In addition to the powers and duties already conferred by law, the commissioner
of human services shall:

(1) administer the child care fund deleted text begin , including the basic sliding fee program deleted text end authorized
under sections 119B.011 to 119B.16;

(2) monitor the child care resource and referral programs established under section
119B.19; and

(3) encourage child care providers to participate in a nationally recognized
accreditation system for early childhood and school-age care programs. Subject
to approval by the commissioner, family child care providers and early childhood
and school-age care programs shall be reimbursed for one-half of the direct cost of
accreditation fees, upon successful completion of accreditation.

Sec. 19. new text begin DIRECTION TO COMMISSIONER OF MANAGEMENT AND
BUDGET.
new text end

new text begin The state obligation for the child care assistance program under Minnesota Statutes,
chapter 119B, must be included in the Department of Management and Budget February
and November forecast of state revenues and expenditures under Minnesota Statutes,
section 16A.103, beginning with the November 2016 forecast.
new text end

Sec. 20. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) In the next edition of Minnesota Statutes and Minnesota Rules, the revisor shall
renumber the statutory section in column A with the section in column B, and make
necessary cross-reference changes consistent with the renumbering:
new text end

	new text begin Column A new text end	new text begin Column B new text end
	new text begin 119B.035 new text end	new text begin 119B.105 new text end
	new text begin 119B.05, subd. 4 new text end	new text begin 119B.03, subd. 11 new text end
	new text begin 119B.05, subd. 5 new text end	new text begin 119B.03, subd. 12 new text end

new text begin (b) The revisor of statutes shall correct internal cross-references to sections resulting
from the repealer in section 21. The revisor may make changes necessary to correct the
punctuation, grammar, or structure of the remaining text and preserve its meaning.
new text end

Sec. 21. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 119B.011, subdivisions 20 and 20a; 119B.03,
subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8; 119B.05, subdivision 1; 119B.07; 119B.09,
subdivisions 3 and 4a; and 119B.11, subdivision 4, new text end new text begin are repealed.
new text end

ARTICLE 4

WORKING FAMILY TAX CREDIT

Section 1.

Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1,
is amended to read:

Subdivision 1.

Credit allowed.

(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter equal to deleted text begin a percentage deleted text end new text begin 120 percent new text end
of deleted text begin earned income. To receive a credit, a taxpayer must be eligible for a deleted text end new text begin the new text end credit new text begin for which
the individual is eligible new text end under section 32 of the Internal Revenue Code.

deleted text begin (b) For individuals with no qualifying children, the credit equals 2.10 percent of the
first $6,180 of earned income. The credit is reduced by 2.01 percent of earned income
or adjusted gross income, whichever is greater, in excess of $8,130, but in no case is
the credit less than zero.
deleted text end

deleted text begin (c) For individuals with one qualifying child, the credit equals 9.35 percent of the
first $11,120 of earned income. The credit is reduced by 6.02 percent of earned income
or adjusted gross income, whichever is greater, in excess of $21,190, but in no case is
the credit less than zero.
deleted text end

deleted text begin (d) For individuals with two or more qualifying children, the credit equals 11 percent
of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned
income or adjusted gross income, whichever is greater, in excess of $25,130, but in no
case is the credit less than zero.
deleted text end

deleted text begin (e) deleted text end new text begin (b) new text end For a part-year resident, the credit must be allocated based on the percentage
calculated under section 290.06, subdivision 2c, paragraph (e).

deleted text begin (f) deleted text end new text begin (c) new text end For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, including income excluded under section 290.01,
subdivision 19b, clause (9), the credit must be allocated based on the ratio of federal
adjusted gross income reduced by the earned income not subject to tax under this chapter
over federal adjusted gross income. For purposes of this paragraph, the subtractions
for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not
considered "earned income not subject to tax under this chapter."

For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."

deleted text begin (g) For tax years beginning after December 31, 2007, and before December 31,
2010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b),
the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for
inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint
returns. For tax years beginning after December 31, 2008, the commissioner shall annually
adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f)
of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be
substituted for the word "1992." For 2009, the commissioner shall then determine the
percent change from the 12 months ending on August 31, 2007, to the 12 months ending on
August 31, 2008, and in each subsequent year, from the 12 months ending on August 31,
2007, to the 12 months ending on August 31 of the year preceding the taxable year. The
earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.
deleted text end

deleted text begin (h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014,
the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph (d),
after being adjusted for inflation under subdivision 7, are increased by $5,340 for married
taxpayers filing joint returns; and (2) for tax years beginning after December 31, 2013, and
before January 1, 2018, the $8,130 in paragraph (b), the $21,190 in paragraph (c), and the
$25,130 in paragraph (d), after being adjusted for inflation under subdivision 7, are each
increased by $5,000 for married taxpayers filing joint returns. For tax years beginning
after December 31, 2010, and before January 1, 2012, and for tax years beginning after
December 31, 2013, and before January 1, 2018, the commissioner shall annually adjust
the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of
the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be
substituted for the word "1992." For 2011, the commissioner shall then determine the
percent change from the 12 months ending on August 31, 2008, to the 12 months ending on
August 31, 2010, and in each subsequent year, from the 12 months ending on August 31,
2008, to the 12 months ending on August 31 of the year preceding the taxable year. The
earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.
deleted text end

deleted text begin (i) deleted text end new text begin (d) new text end The commissioner shall construct tables showing the amount of the credit
at various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2016.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 290.0671, subdivision 7, 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 for taxable years beginning after
December 31, 2016.
new text end

ARTICLE 5

MINNESOTA EMERGENCY EMPLOYMENT DEVELOPMENT

Section 1.

new text begin CITATION.
new text end

new text begin Sections 1 to 14 may be cited as the "Minnesota Emergency Employment
Development (MEED) Act of 2016."
new text end

Sec. 2.

new text begin DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purposes of sections 1 to 14, the following terms
have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

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

new text begin Subd. 3. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Employment and
Economic Development.
new text end

new text begin Subd. 4. new text end

new text begin Eligible business. new text end

new text begin "Eligible business" means a for-profit business.
new text end

new text begin Subd. 5. new text end

new text begin Eligible employer. new text end

new text begin "Eligible employer" means an eligible government
agency, an eligible nonprofit agency, or an eligible business.
new text end

new text begin Subd. 6. new text end

new text begin Eligible government agency. new text end

new text begin "Eligible government agency" means a
county, municipality, school district, or other local governmental subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Eligible job applicant. new text end

new text begin "Eligible job applicant" means a person who:
new text end

new text begin (1) has been a resident of this state for at least six months;
new text end

new text begin (2) is unemployed;
new text end

new text begin (3) has attempted to secure a nonsubsidized job by completing a comprehensive job
search program administered by a county or workforce service area;
new text end

new text begin (4) is not receiving and is not eligible to receive unemployment compensation or
workers' compensation; and
new text end

new text begin (5) is determined by the employment administrator to be likely to be available for
employment by an eligible employer for the duration of the job.
new text end

new text begin Subd. 8. new text end

new text begin Eligible nonprofit agency. new text end

new text begin "Eligible nonprofit agency" means an
organization exempt from taxation under the Internal Revenue Code of 1986, section
501(c)(3), as amended.
new text end

new text begin Subd. 9. new text end

new text begin Employment administrator. new text end

new text begin "Employment administrator" means the
administrative entity designated by the commissioner to administer the provisions of this
act in each workforce service area.
new text end

new text begin Subd. 10. new text end

new text begin Household. new text end

new text begin "Household" means an individual, the individual's spouse,
and any person considered a dependent under sections 151 and 152 of the Internal
Revenue Code domiciled at the same address.
new text end

new text begin Subd. 11. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota emergency employment
development program created by sections 1 to 14, consisting of temporary employment
projects in the government and nonprofit agencies and new permanent job creation in
the private sector.
new text end

new text begin Subd. 12. new text end

new text begin Workforce service area. new text end

new text begin "Workforce service area" means an area
designated as a workforce service area under Minnesota Statutes, section 116L.666.
new text end

Sec. 3.

new text begin DUTIES OF COMMISSIONER.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin The commissioner shall administer the provisions of sections
1 to 14. The commissioner shall:
new text end

new text begin (1) enter into contracts with the workforce service areas within 30 days of enactment;
new text end

new text begin (2) review the emergency employment development plan submitted by the
employment administrator of each workforce service area and approve satisfactory plans.
If an employment administrator submits an unsatisfactory plan, the department shall assist
the employment administrator in developing a satisfactory one;
new text end

new text begin (3) coordinate the program with other state agencies;
new text end

new text begin (4) coordinate administration of the program with the Minnesota family investment
program under Minnesota Statutes, chapter 256J;
new text end

new text begin (5) set policies regarding disbursement of program funds;
new text end

new text begin (6) perform general program marketing and monitoring functions; and
new text end

new text begin (7) apply to the federal government for a waiver allowing Minnesota to use extended
unemployment insurance benefits for wage subsidies and seek federal funding for this
program.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin The commissioner shall ensure that all eligible employers
and employment administrators comply with sections 1 to 14 and all other applicable state
and federal laws, including those relating to:
new text end

new text begin (1) affirmative action;
new text end

new text begin (2) occupational health and safety standards;
new text end

new text begin (3) environmental standards; and
new text end

new text begin (4) fair labor practices.
new text end

new text begin Subd. 3. new text end

new text begin Report to governor and legislature. new text end

new text begin The commissioner shall report
semiannually to the chairs of the standing committees of the house of representatives
and senate having jurisdiction over employment and economic development issues and
to the governor on:
new text end

new text begin (1) the number of persons employed under the program;
new text end

new text begin (2) the number and type of employers under the program;
new text end

new text begin (3) the amount of money spent in each service delivery area for wages for each type
of employment and each type of other expense;
new text end

new text begin (4) the number of persons who have completed participation in the program and their
current employment, educational, or training status; and
new text end

new text begin (5) any other information deemed pertinent by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Rules. new text end

new text begin The commissioner may adopt rules necessary to implement the
Minnesota emergency employment development program.
new text end

Sec. 4.

new text begin ALLOCATION OF FUNDS AMONG WORKFORCE SERVICE AREAS.
new text end

new text begin (a) Ninety percent of the funds available for allocation to employment administrators
for the program must be allocated among eligible workforce service areas. Workforce
service areas are eligible to receive that proportion of the funds available which equals
the number of unemployed persons in the workforce service area divided by the total
number of unemployed persons in the state for the 12-month period ending with the
most recent March 31.
new text end

new text begin (b) Ten percent of the funds available for allocation to employment administrators
under the program must be allocated at the discretion of the commissioner to employment
administrators:
new text end

new text begin (1) who will maximize the use of the funds through coordination with other
programs and state, local, and federal agencies, through the use of matching funds or
through the involvement of low-income constituent groups;
new text end

new text begin (2) who have demonstrated need beyond the allocation available under paragraph
(a); or
new text end

new text begin (3) who have demonstrated outstanding performance in job creation.
new text end

Sec. 5.

new text begin ALLOCATION WITHIN WORKFORCE SERVICE AREAS;
PRIORITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Among job applicants. new text end

new text begin Allocation of funds among eligible job
applicants within a workforce service area shall be determined by the employment
administrator in each workforce service area. The employment administrator shall give
priority to:
new text end

new text begin (1) applicants living in households with no other income source;
new text end

new text begin (2) applicants who would otherwise be eligible to participate in the Minnesota
family investment program or the diversionary work program; and
new text end

new text begin (3) veterans as defined under Minnesota Statutes, section 196.21, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Among employers. new text end

new text begin The employment administrator within each workforce
service area shall determine allocation of funds among eligible employers within
a workforce service area according to the priorities in section 9. The employment
administrator shall give priority to funding private sector jobs to the extent that eligible
businesses apply for funds. No more than 50 percent of the funds may be allocated for
jobs with eligible government and nonprofit agencies during the biennium.
new text end

Sec. 6.

new text begin USE OF FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Allowable uses of funds. new text end

new text begin Funds appropriated for the purposes of
sections 1 to 14 may be used as follows:
new text end

new text begin (1) to provide a state contribution for wages and fringe benefits for eligible job
applicants for a maximum of 1,040 hours over a maximum period of 26 weeks per job
applicant. For eligible job applicants participating in a job training program, the state
contribution for wages may be used for a maximum period of 26 weeks per job applicant.
The employer must pay at least $12 per hour to each eligible employee. The state
contribution for wages shall be 50 percent of the first $12 per hour of the wage for each
eligible job applicant employed by an eligible employer. The employer may use funds
from other sources to provide increased wages to the applicants it employs. At least 70
percent of the funds appropriated for the program must be used to pay wages for eligible
job applicants;
new text end

new text begin (2) to reimburse the department in an amount not to exceed one percent of the funds
appropriated for the actual cost of administering sections 1 to 14;
new text end

new text begin (3) to reimburse the employment administrators in an amount not to exceed 14
percent of the funds appropriated for the actual cost of program operations. Of the 14
percent, no more than ten percent may be used for administrative costs for workforce
service areas as defined under the Workforce Investment Act. The commissioner and
the employment administrators shall reallocate funds from other sources to cover the
administrative costs of this program whenever possible;
new text end

new text begin (4) to provide child care services or subsidies to applicants employed under sections
1 to 14;
new text end

new text begin (5) to provide workers' compensation coverage to applicants employed by
government or nonprofit agencies under sections 1 to 14;
new text end

new text begin (6) to provide job search assistance, labor market orientation, job seeking skills,
and referral for other services; and
new text end

new text begin (7) to purchase supplies and materials for projects creating permanent improvements
to public property in an amount not to exceed one percent of the funds appropriated.
new text end

new text begin Subd. 2. new text end

new text begin Cancellation and reallocation. new text end

new text begin Any funds allocated to the workforce
service area for which there is no spending plan approved by the commissioner or
which are significantly underspent in the reporting period shall cancel back to the
Minnesota emergency employment development account and must be reallocated by the
commissioner to other employment administrators.
new text end

Sec. 7.

new text begin EMPLOYMENT ADMINISTRATORS; POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin The employment administrator for each workforce
service area has the powers and duties given in this section and any additional duties
given by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Employment plan. new text end

new text begin Each employment administrator shall develop an
emergency employment development plan for the workforce service area under guidelines
developed by the commissioner and submit it to the commissioner within the period
allowed by the commissioner. To the extent feasible, the employment administrator shall
seek input from potential eligible employers and the public.
new text end

new text begin Subd. 3. new text end

new text begin Outreach. new text end

new text begin Each employment administrator shall publicize the program
within the workforce service area to seek maximum participation by eligible job applicants
and employers.
new text end

new text begin Subd. 4. new text end

new text begin Contracts. new text end

new text begin Each employment administrator shall enter into contracts with
eligible employers setting forth the terms of their participation in the program as required
by sections 1 to 14.
new text end

new text begin Subd. 5. new text end

new text begin Screening and coordination. new text end

new text begin Each employment administrator shall screen
job applicants and employers to achieve the best possible placement of eligible job
applicants with eligible employers.
new text end

new text begin Subd. 6. new text end

new text begin Eligible job applicant priority lists. new text end

new text begin Each employment administrator
shall maintain a list of eligible job applicants unable to secure employment under the
program at the time of application. The list shall prioritize eligible job applicants pursuant
to section 5, subdivision 1, and shall be used to fill jobs with eligible employers as they
become available.
new text end

new text begin Subd. 7. new text end

new text begin Coordination of education and training programs. new text end

new text begin Each employment
administrator shall cooperate with local educational and training institutions to coordinate
and publicize the availability of their resources to assure that applicants may receive
training needed before or while employed in jobs which are available under the program.
new text end

new text begin Subd. 8. new text end

new text begin Materials. new text end

new text begin Each employment administrator may disburse funds not to
exceed one percent of the amount allocated to the service delivery area for the purchase of
supplies and materials for projects creating permanent improvements to public property.
new text end

Sec. 8.

new text begin ELIGIBLE GOVERNMENT AND NONPROFIT AGENCY
EMPLOYMENT.
new text end

new text begin A government or nonprofit agency is an eligible employer with respect to temporary
employment projects that are determined by the employment administrator to have
long-term benefit to or are needed by the community, including but not limited to jobs
in permanent public improvement projects, residential or public building weatherization
projects, reforestation projects, mineland reclamation projects, planting or tree trimming
projects, soil conservation projects, natural resource development projects, and community
social service programs such as child care and home health care.
new text end

Sec. 9.

new text begin BUSINESS EMPLOYMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligible businesses. new text end

new text begin A business employer is an eligible employer if
it enters into a written contract with the employment administrator in its workforce service
area and includes in the contract assurances that:
new text end

new text begin (1) funds received by a business shall be used only as permitted under sections 1 to 14;
new text end

new text begin (2) the business has submitted a plan to the employment administrator:
new text end

new text begin (i) describing the duties and proposed compensation of each employee proposed to
be hired under the program; and
new text end

new text begin (ii) demonstrating that, with the funds provided under sections 1 to 14, the business
is likely to succeed and continue to employ persons hired under the program;
new text end

new text begin (3) the business will use funds exclusively for compensation and fringe benefits of
eligible job applicants and will provide employees hired with these funds with fringe
benefits and other terms and conditions of employment comparable to those provided to
other employees of the business who do comparable work;
new text end

new text begin (4) the funds are necessary to allow the business to begin operation, or to employ
additional people, but not to fill positions which would be filled even in the absence of
funds from this program;
new text end

new text begin (5) the business will cooperate with the commissioner and the employment
administrator in collecting data to assess the results of the program; and
new text end

new text begin (6) the business is in compliance with all applicable affirmative action, fair labor,
health, safety, and environmental standards.
new text end

new text begin Subd. 2. new text end

new text begin Priorities. new text end

new text begin In allocating funds among eligible businesses, the employment
administrator shall give priority to businesses which best satisfy the following criteria:
new text end

new text begin (1) have a high potential for growth and long-term job creation;
new text end

new text begin (2) are labor intensive;
new text end

new text begin (3) meet the definition of a small business as defined in Minnesota Statutes, section
645.445;
new text end

new text begin (4) make high use of local and Minnesota resources;
new text end

new text begin (5) are under ownership of women or minorities;
new text end

new text begin (6) make extensive use of new technology;
new text end

new text begin (7) produce energy conserving materials or services or are involved in development
of renewable sources of energy; and
new text end

new text begin (8) have their primary place of business in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Employer accountability. new text end

new text begin (a) A business receiving funds under this
program is expected to retain employees at least six months beyond the initial six-month
subsidized period. In the event an employer terminates participation in the subsidy program
during the initial six-month subsidy phase for any participant, the employer shall pay back
20 percent of the subsidies received to date. In the event an employer has not retained
a participant at least 90 days beyond the subsidy phase, the employer shall pay back 20
percent of the wage subsidies received. In the event a business employer has retained a
participant 180 days beyond the subsidy period, a business employer shall be eligible for a
bonus equivalent to $2 per hour for the hours the participant worked during those 180 days.
new text end

new text begin (b) If an employer dismisses an employee for good cause or the employee chooses to
leave the position and the employer works in good faith with the program administrator
to employ and train another person referred by the employment administrator, the
accountability conditions shall apply as if the original participant had fulfilled the
employment timeline.
new text end

Sec. 10.

new text begin MINNESOTA EMERGENCY EMPLOYMENT DEVELOPMENT
ACCOUNT.
new text end

new text begin The Minnesota emergency employment development account is created in the state
treasury. All payments from businesses under section 9 shall be deposited in this account,
and all funds in the account are appropriated to the commissioner of employment and
economic development for the purpose of making disbursements pursuant to section 6.
new text end

Sec. 11.

new text begin WORKER DISPLACEMENT PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Layoffs; work reductions. new text end

new text begin An eligible employer may not terminate,
lay off, or reduce the working hours of an employee for the purpose of hiring an individual
with funds available under sections 1 to 14.
new text end

new text begin Subd. 2. new text end

new text begin Hiring during layoffs. new text end

new text begin An eligible employer may not hire an individual
with funds available under sections 1 to 14 if any other person has been laid off from the
same or a substantially equivalent job within the previous six months.
new text end

new text begin Subd. 3. new text end

new text begin Employer certification. new text end

new text begin In order to qualify as an eligible employer, a
government or nonprofit agency or business must certify to the employment administrator
that each job created and funded under sections 1 to 14:
new text end

new text begin (1) will result in an increase in employment opportunities over those which would
otherwise be available;
new text end

new text begin (2) will not result in the displacement of currently employed workers, including
partial displacement such as reduction in hours of nonovertime work, wages, or
employment benefits; and
new text end

new text begin (3) will not impair existing contracts for service or result in the substitution of
program funds for other funds in connection with work that would otherwise be performed.
new text end

Sec. 12.

new text begin TERMINATION; NOTIFICATION.
new text end

new text begin (a) On the date the program is terminated, any balance remaining in the Minnesota
emergency employment development account established under section 10 shall cancel
to the general fund. Any payments received under section 10 on or after that date shall
be deposited in the general fund.
new text end

new text begin (b) The commissioner shall immediately terminate the Minnesota emergency
employment development program if and when none of the money appropriated under
section 13 remains.
new text end

Sec. 13. new text begin APPROPRIATION.
new text end

new text begin $200,000,000 in fiscal year 2017 is appropriated from the general fund to the
commissioner for deposit in the Minnesota emergency employment development account
for the Minnesota Emergency Employment Development (MEED) Act of 2016. Any
unexpended balance remaining at the end of the fiscal year does not cancel and is available
until expended.
new text end

Sec. 14. new text begin EFFECTIVE DATE.
new text end

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