SF 4352

as introduced - 91st Legislature (2019 - 2020) Posted on 05/01/2020 08:06am

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] PAID FAMILY LEAVE INCOME REPLACEMENT BENEFITS.
new text end

new text begin An insurance company licensed to issue disability income insurance policies in Minnesota
may also offer paid family leave insurance benefits providing wage replacement caused by
absences that are not based on an insured's status as disabled. The benefits may be offered
either through a rider to a disability income insurance policy or as a separate insurance
policy.
new text end

Sec. 2.

new text begin [63A.02] 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.
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new text begin (c) "Child" means a person who is:
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new text begin (1) under 18 years of age, or 18 years of age or older and incapable of self-care because
of a mental or physical disability; and
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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, or parent as defined in this chapter, or any
other person defined as a family member in the insurance policy.
new text end

new text begin (f) "Health care provider" means a person licensed under the public health laws of
Minnesota.
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 transplantation preparation and recovery from surgery related to organ
or tissue 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 the 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. 3.

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

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

new text begin (1) participate in providing care, including physical or psychological care, for a family
member of the employee 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;
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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 out of 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 the insurance policy.
new text end

Sec. 4.

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

new text begin The 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) The 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:
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new text begin (1) a calendar year;
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new text begin (2) any fixed period starting on a particular date, including the policy effective date or
anniversary date;
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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
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new text begin (5) any other method specified in the insurance policy.
new text end

new text begin (b) The 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:
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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 by 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) The insurance policy must set forth:
new text end

new text begin (1) the amount of benefits that paid for covered family leave reasons;
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new text begin (2) the definition of the wages or other income upon which the amount of family leave
benefits is based; and
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new text begin (3) how the wages or other income is calculated.
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new text begin (b) If family leave benefits are subject to offsets for wages or other income received or
that the insured may be eligible for, the policy must set forth:
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new text begin (1) all wages or other income that may be set off; and
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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, EXCLUSIONS, REDUCTIONS.
new text end

new text begin Limitations, exclusions, or reductions must be set forth in the insurance policy. A
permissible limitation, exclusion, or reduction may include but is not limited to any of the
following:
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new text begin (1) any period of family leave where the notice and medical certification required by
the policy has not been provided;
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new text begin (2) any family leave related to a serious health condition or other harm to a family
member brought about by the employee's willful intention;
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new text begin (3) any period of family leave during which the employee performed work for
remuneration or profit;
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new text begin (4) any period of family leave for which the employee is eligible to receive from the
employee's employer, or from a fund to which the employer has contributed remuneration
or maintenance;
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new text begin (5) any period of family leave in which the employee is eligible to receive benefits under
any other statutory program or employer-sponsored program, including but not limited to
unemployment insurance benefits, worker's compensation benefits, statutory disability
benefits, statutory paid leave benefits, or paid time off or employer's paid leave policy;
new text end

new text begin (6) any period of family leave beginning before the employee becomes eligible for family
leave benefits under the policy; or
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new text begin (7) periods of family leave where more than one person seeks family leave for the same
family member.
new text end

Sec. 8.

new text begin [63A.08] PAYMENT OF FAMILY LEAVE BENEFITS.
new text end

new text begin Except for a contested period of family leave and subject to section 63A.07, family leave
benefits provided under this chapter must be paid periodically and promptly.
new text end

Sec. 9. new text begin EFFECTIVE DATE.
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new text begin This act is effective January 1, 2021.
new text end