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Minnesota Legislature

Office of the Revisor of Statutes

HF 2963

as introduced - 89th Legislature (2015 - 2016) Posted on 03/14/2016 03:10pm

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

Current Version - as introduced

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A bill for an act
relating to paid family medical leave benefits; establishing a family and
medical leave benefit insurance program; imposing a wage tax; authorizing
rulemaking; creating an account; appropriating money;amending Minnesota
Statutes 2014, sections 13.719, by adding a subdivision; 268.19, subdivision 1;
290.01, subdivision 19b; Minnesota Statutes 2015 Supplement, section 177.27,
subdivision 4; proposing coding for new law as Minnesota Statutes, chapter 268B.

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

ARTICLE 1

FAMILY AND MEDICAL LEAVE BENEFITS

Section 1.

Minnesota Statutes 2014, section 13.719, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Family and medical leave insurance data. new text end

new text begin (a) For the purposes of this
subdivision, the terms used have the meanings given them in section 268B.01.
new text end

new text begin (b) All data on applicants or employers under chapter 268B is private or nonpublic
data, provided that the department may share data collected from applicants with
employers, health care providers, or law enforcement to the extent necessary to meet the
requirements of chapter 268B or other applicable law.
new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 177.27, subdivision 4, is
amended to read:


Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032,
181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275,
subdivision 2a
, 181.722, 181.79, deleted text beginanddeleted text end 181.939 to 181.943,new text begin and 268B.09new text end or with any rule
promulgated under section 177.28. The commissioner shall issue an order requiring an
employer to comply with sections 177.41 to 177.435 if the violation is repeated. For
purposes of this subdivision only, a violation is repeated if at any time during the two years
that preceded the date of violation, the commissioner issued an order to the employer for
violation of sections 177.41 to 177.435 and the order is final or the commissioner and the
employer have entered into a settlement agreement that required the employer to pay back
wages that were required by sections 177.41 to 177.435. The department shall serve the
order upon the employer or the employer's authorized representative in person or by
certified mail at the employer's place of business. An employer who wishes to contest the
order must file written notice of objection to the order with the commissioner within 15
calendar days after being served with the order. A contested case proceeding must then be
held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being
served with the order, the employer fails to file a written notice of objection with the
commissioner, the order becomes a final order of the commissioner.

Sec. 3.

Minnesota Statutes 2014, section 268.19, subdivision 1, is amended to read:


Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered
from any person under the administration of the Minnesota Unemployment Insurance Law
are private data on individuals or nonpublic data not on individuals as defined in section
13.02, subdivisions 9 and 12, and may not be disclosed except according to a district court
order or section 13.05. A subpoena is not considered a district court order. These data
may be disseminated to and used by the following agencies without the consent of the
subject of the data:

(1) state and federal agencies specifically authorized access to the data by state
or federal law;

(2) any agency of any other state or any federal agency charged with the
administration of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other
state in accordance with section 256.978;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed
assistance programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
Department of Commerce for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its
agents within the Department of Human Services, including county fraud investigators,
for investigations related to recipient or provider fraud and employees of providers when
the provider is suspected of committing public assistance fraud;

(10) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program by providing data on recipients and former recipients of food stamps or food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

(11) local and state welfare agencies for the purpose of identifying employment,
wages, and other information to assist in the collection of an overpayment debt in an
assistance program;

(12) local, state, and federal law enforcement agencies for the purpose of
ascertaining the last known address and employment location of an individual who is the
subject of a criminal investigation;

(13) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(14) the Department of Health for the purposes of epidemiologic investigations;

(15) the Department of Corrections for the purpose of case planning for preprobation
and postprobation employment tracking of offenders sentenced to probation and
preconfinement and postconfinement employment tracking of committed offenders;

(16) the state auditor to the extent necessary to conduct audits of job opportunity
building zones as required under section 469.3201; deleted text beginand
deleted text end

(17) the Office of Higher Education for purposes of supporting program
improvement, system evaluation, and research initiatives including the Statewide
Longitudinal Education Data Systemnew text begin; and
new text end

new text begin (18) the family and medical leave division of the Department of Employment and
Economic Development to be used as necessary to administer chapter 268B
new text end.

(b) Data on individuals and employers that are collected, maintained, or used by
the department in an investigation under section 268.182 are confidential as to data
on individuals and protected nonpublic data not on individuals as defined in section
13.02, subdivisions 3 and 13, and must not be disclosed except under statute or district
court order or to a party named in a criminal proceeding, administrative or judicial, for
preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota
unemployment insurance program must not be made the subject or the basis for any
suit in any civil proceedings, administrative or judicial, unless the action is initiated by
the department.

Sec. 4.

new text begin [268B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter, the terms defined in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Account. new text end

new text begin "Account" means the family and medical leave account in the
special revenue fund in the state treasury under section 268B.02.
new text end

new text begin Subd. 3. new text end

new text begin Applicant. new text end

new text begin "Applicant" means an individual applying for benefits under
this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Benefit. new text end

new text begin "Benefit" means monetary payments under this chapter associated
with a bonding leave, family leave, medical leave, or pregnancy leave.
new text end

new text begin Subd. 5. 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. 6. 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. 7. new text end

new text begin Employee. new text end

new text begin "Employee" means an individual who performs services for
hire for an employer, but does not include an independent contractor.
new text end

new text begin Subd. 8. new text end

new text begin Employer. new text end

new text begin "Employer" means a person or entity, other than an employee,
required to pay taxes under this chapter.
new text end

new text begin Subd. 9. new text end

new text begin Health care provider. new text end

new text begin "Health care provider" means an individual who is
licensed, certified, or otherwise authorized under law to practice in the individual's state
of practice as a physician, osteopath, physician assistant, chiropractor, advanced practice
registered nurse, optometrist, licensed psychologist, licensed independent clinical social
worker, dentist, or podiatrist. "Chiropractor" means only a chiropractor who provides
manual manipulation of the spine to correct a subluxation demonstrated to exist by an x-ray.
new text end

new text begin Subd. 10. new text end

new text begin Qualifying event. new text end

new text begin "Qualifying event" means any of the following:
new text end

new text begin (1) a serious health condition of an applicant that renders the applicant unable to
perform the function of an applicant's position as an employee;
new text end

new text begin (2) prenatal care or incapacity due to pregnancy, childbirth, or related health
conditions;
new text end

new text begin (3) a serious health condition of an applicant's family member; and
new text end

new text begin (4) a biological or adoptive parent in conjunction with the birth or adoption of a
child, or a foster parent in conjunction with the placement of a child in foster care.
new text end

new text begin Subd. 11. new text end

new text begin Bonding leave. new text end

new text begin "Bonding leave" means a nonworking period taken for
the purpose of bonding between a biological or adoptive parent in conjunction with the
birth or adoption of a child, or a foster parent in conjunction with the placement of a
child in foster care.
new text end

new text begin Subd. 12. new text end

new text begin Family leave. new text end

new text begin "Family leave" means a nonworking period taken for the
purpose of caring for a family member who has a serious health condition.
new text end

new text begin Subd. 13. new text end

new text begin Medical leave. new text end

new text begin "Medical leave" means a nonworking period taken by an
employee who is unable to perform the functions of the employee's position because of a
serious health condition.
new text end

new text begin Subd. 14. new text end

new text begin Pregnancy leave. new text end

new text begin "Pregnancy leave" means a nonworking period taken
by a female applicant for prenatal care, or incapacity due to pregnancy, childbirth,
recovery from childbirth, or related health conditions.
new text end

new text begin Subd. 15. new text end

new text begin Covered employment. new text end

new text begin "Covered employment" has the meaning given in
section 268.035, subdivision 12.
new text end

new text begin Subd. 16. new text end

new text begin Noncovered employment. new text end

new text begin "Noncovered employment" has the meaning
given in section 268.035, subdivision 20.
new text end

new text begin Subd. 17. new text end

new text begin FMLA. new text end

new text begin "FMLA" means the federal leave program under United States
Code, title 29, chapter 28.
new text end

new text begin Subd. 18. new text end

new text begin Qualified health care provider. new text end

new text begin "Qualified health care provider" means
a health care provider who, in the judgment of the commissioner, has the qualifications
necessary to diagnose or treat a particular health condition or conditions associated with
benefits sought under this chapter.
new text end

new text begin Subd. 19. new text end

new text begin Serious health condition. new text end

new text begin "Serious health condition" means an illness,
injury, impairment, or physical or mental condition that involves:
new text end

new text begin (1) inpatient care in a hospital, hospice, or residential medical care facility; or
new text end

new text begin (2) continuing treatment by a health care provider.
new text end

new text begin Subd. 20. new text end

new text begin Wage credits. new text end

new text begin "Wage credits" has the meaning given in section 268.035,
subdivision 27.
new text end

new text begin Subd. 21. new text end

new text begin High quarter. new text end

new text begin "High quarter" has the meaning given in section 268.035,
subdivision 19.
new text end

new text begin Subd. 22. new text end

new text begin Maximum weekly benefit amount. new text end

new text begin "Maximum weekly benefit amount"
means the state's average weekly wage as calculated under section 268.035, subdivision 23.
new text end

new text begin Subd. 23. new text end

new text begin Employer plan. new text end

new text begin "Employer plan" means any plan that provides benefits
similar to those provided under this chapter that is subsidized, offered, or otherwise
provided by an employer to an employee.
new text end

new text begin Subd. 24. new text end

new text begin ICD code. new text end

new text begin "ICD code" means the code under the International
Classification of Diseases, Clinical Modification/Coding System, for the most recent
edition commonly used.
new text end

new text begin Subd. 25. new text end

new text begin Medical leave benefit program. new text end

new text begin "Medical leave benefit program" means
the program administered under this chapter for the collection of taxes and payment of
benefits related to medical leave and pregnancy leave.
new text end

new text begin Subd. 26. new text end

new text begin Family leave benefit program. new text end

new text begin "Family leave benefit program" means
the program administered under this chapter for the collection of taxes and payment of
benefits related to family leave and bonding leave.
new text end

new text begin Subd. 27. new text end

new text begin State's average weekly wage. new text end

new text begin "State's average weekly wage" means the
weekly wage calculated under section 268.035, subdivision 23.
new text end

new text begin Subd. 28. new text end

new text begin Family member. new text end

new text begin "Family member" means an employee's child, adult
child, spouse, sibling, parent, foster parent, mother-in-law, father-in-law, grandchild,
grandparent, or stepparent.
new text end

new text begin Subd. 29. new text end

new text begin Leave. new text end

new text begin "Leave" means a period or periods in which an employee does not
perform work for the employee's employer, but the parties maintain an employer-employee
relationship.
new text end

Sec. 5.

new text begin [268B.02] FAMILY AND MEDICAL LEAVE INSURANCE PROGRAM
CREATION.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin A family and medical leave benefit program is created to
be administered by the commissioner according to the terms of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Creation of division. new text end

new text begin A family and medical leave benefit division is
created within the department under the authority of the commissioner. The commissioner
shall appoint a director of the division. The division shall administer and operate the
benefit program under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Rulemaking. new text end

new text begin The commissioner may adopt rules to implement the
provisions of this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Account creation; appropriation. new text end

new text begin The family and medical leave benefit
account is created in the special revenue fund in the state treasury. Money in this account
is appropriated to the commissioner to pay benefits under and to administer this chapter.
new text end

Sec. 6.

new text begin [268B.03] ELIGIBILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Applicant. new text end

new text begin An applicant who satisfies the conditions of this section
is eligible to receive benefits subject to the provisions of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Wage credits. new text end

new text begin An applicant must have sufficient wage credits to establish
a benefit account under section 268.07, subdivision 2. Wage credits from an employer
during a period in which the employer has successfully opted out of the benefit program
being applied for may not be used for the purposes of this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Seven-day qualifying event. new text end

new text begin The period for which an applicant is seeking
benefits must be or have been based on a single qualifying event of at least seven days.
The days need not be consecutive.
new text end

new text begin Subd. 4. new text end

new text begin Eligible benefits. new text end

new text begin An applicant is not entitled to benefits for any day in
which the applicant worked for pay.
new text end

new text begin Subd. 5. new text end

new text begin Certification by health care provider. new text end

new text begin Except for bonding leave, the
qualifying event underlying the application for benefits must be certified in writing by a
qualified health care professional.
new text end

new text begin Subd. 6. new text end

new text begin Records release. new text end

new text begin An individual whose medical records are necessary to
determine entitlement to benefits under this chapter must sign and date a legally effective
waiver authorizing the department to release health and other records to the limited extent
necessary to administer this chapter.
new text end

new text begin Subd. 7. new text end

new text begin Self-employed applicant. new text end

new text begin (a) To be eligible for benefits, a self-employed
individual who has elected coverage under section 268B.11 must fulfill only the
requirements, to the extent possible, of subdivisions 3, 4, 5, and 6 in addition to the
requirements under paragraph (b).
new text end

new text begin (b) A self-employed individual must provide documents sufficient to prove the
existence of the individual's business as well as how long that business has been in
operation. The commissioner must determine that the business was not created for the
purpose of obtaining benefits under this section.
new text end

Sec. 7.

new text begin [268B.04] APPLICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application forms. new text end

new text begin (a) The commissioner must create application
forms, to be available both online and on paper, for each of the following:
new text end

new text begin (1) an application for family leave benefits;
new text end

new text begin (2) an application for bonding leave benefits;
new text end

new text begin (3) an application for pregnancy leave benefits; and
new text end

new text begin (4) an application for medical leave benefits.
new text end

new text begin Subd. 2. new text end

new text begin Content of applications. new text end

new text begin (a) All four application forms under subdivision
1 must require, at a minimum, the following:
new text end

new text begin (1) the name, birth date, home address, and mailing address of the applicant;
new text end

new text begin (2) the Social Security number, or other unique identification number, of the applicant;
new text end

new text begin (3) a description of the qualifying event underlying the leave;
new text end

new text begin (4) the date the leave for which benefits are sought began or will begin, if known;
new text end

new text begin (5) the date the leave for which benefits are sought ended or will end, if known;
new text end

new text begin (6) whether the leave for which benefits are sought was or will be on an intermittent
basis;
new text end

new text begin (7) whether the applicant has applied for or received any other paid benefits, whether
public or private, based on the same qualifying event underlying the leave or during the
same time period for which the applicant is seeking benefits;
new text end

new text begin (8) a description of any benefits listed under clause (7);
new text end

new text begin (9) a signed and dated certification that all the information contained in the
application is true and correct, to the best of the applicant's knowledge; and
new text end

new text begin (10) a list of all the applicant's employers for the past 79 weeks.
new text end

new text begin (b) In addition to the requirements of paragraph (a), an application for benefits
associated with a family leave must contain, at a minimum, the following:
new text end

new text begin (1) the name, birth date, home address, and mailing address of the family member
for whom the applicant has provided or will be providing care;
new text end

new text begin (2) the family member's relationship to the applicant;
new text end

new text begin (3) the Social Security number, or other unique identification number, of the family
member for whom the applicant has provided or will be providing care;
new text end

new text begin (4) a certification from the care recipient, or the care recipient's authorized
representative, that all the information contained in the application is true and correct,
to the best of that individual's knowledge;
new text end

new text begin (5) a legally effective authorization, signed and dated by the care recipient or the
care recipient's authorized representative, for disclosure of medical information needed by
the department to fulfill its duties under this chapter; and
new text end

new text begin (6) a signed and dated certification by a qualified health care provider treating the
care recipient:
new text end

new text begin (i) describing the nature of the serious medical condition or conditions of the care
recipient;
new text end

new text begin (ii) stating whether care by another individual is necessary in the treatment, or will
aid in the recovery, of the care recipient;
new text end

new text begin (iii) describing the nature of the care under item (ii);
new text end

new text begin (iv) stating or estimating the dates of leave needed; and
new text end

new text begin (v) listing the ICD code or codes, if any, of the serious medical condition or
conditions underlying the application for benefits.
new text end

new text begin (c) In addition to the requirements of paragraph (a), an application for benefits
associated with a bonding leave must contain, at a minimum, the following:
new text end

new text begin (1) proof of the birth, adoption, or placement in foster care, as appropriate, of the
child for whom bonding leave is sought; and
new text end

new text begin (2) a legally effective authorization, signed and dated by the applicant or other
authorized representative of the child for whom bonding leave is sought, for disclosure of
medical information needed by the department to fulfill its duties under this chapter.
new text end

new text begin (d) In addition to the requirements of paragraph (a), an application for benefits
associated with a pregnancy leave must contain, at a minimum, the following:
new text end

new text begin (1) a legally effective authorization, signed and dated by the applicant or the
applicant's authorized representative, for disclosure of medical information needed by the
department to fulfill its duties under this chapter; and
new text end

new text begin (2) a signed and dated certification by a qualified health care provider treating the
applicant:
new text end

new text begin (i) describing the reason or reasons that a leave is needed;
new text end

new text begin (ii) stating or estimating the dates of leave needed; and
new text end

new text begin (iii) listing the ICD code or codes, if any, of the condition or conditions underlying
the application for benefits.
new text end

new text begin (e) In addition to the requirements of paragraph (a), an application for benefits
associated with a medical leave must contain, at a minimum, the following:
new text end

new text begin (1) a legally effective authorization, signed and dated by the applicant or the
applicant's authorized representative, for disclosure of medical information needed by the
department to fulfill its duties under this chapter; and
new text end

new text begin (2) a signed and dated certification by a qualified health care provider treating the
applicant:
new text end

new text begin (i) describing the nature of the serious health condition or conditions of the applicant;
new text end

new text begin (ii) describing any treatment needed based on the condition or conditions;
new text end

new text begin (iii) stating or estimating the dates of leave needed; and
new text end

new text begin (iv) listing the ICD code or codes, if any, of the serious medical condition or
conditions underlying the application for benefits.
new text end

new text begin Subd. 3. new text end

new text begin Online access. new text end

new text begin The commissioner must, to the extent possible, create a
system allowing for all aspects of the applications under this section to be completed
online. This includes the use of electronic signatures.
new text end

new text begin Subd. 4. new text end

new text begin Administrative efficiencies. new text end

new text begin To the maximum extent feasible, the
commissioner must use the same or similar procedures for applications under this section
as for applications for benefits under chapter 268.
new text end

Sec. 8.

new text begin [268B.05] DETERMINATION OF APPLICATION.
new text end

new text begin Upon the filing of a complete application for benefits, the commissioner shall examine
the application and on the basis of facts found by the commissioner and records maintained
by the department, the application shall be determined to be valid or invalid within two
weeks. If the application is determined to be valid, the commissioner shall promptly notify
the applicant and any other interested party as to the week when benefits commence,
the weekly benefit amount payable, and the maximum duration of those benefits. If the
application is determined to be invalid, the commissioner shall notify the applicant and
any other interested party of that determination and the reasons for it. If the processing
of the application is delayed for any reason, the commissioner shall notify the applicant,
in writing, within two weeks of the date the application for benefits is filed of the reason
for the delay. Unless the applicant or any other interested party, within 30 days, requests
a hearing before a benefit judge, the determination is final. For good cause shown, the
30-day period may be extended. At any time within one year from the date of a monetary
determination, the commissioner, upon request of the applicant or on the commissioner's
own initiative, may reconsider the determination if it is found that an error in computation
or identity has occurred in connection with the determination or that additional wages
pertinent to the applicant's status have become available, or if that determination has been
made as a result of a nondisclosure or misrepresentation of a material fact.
new text end

Sec. 9.

new text begin [268B.06] EMPLOYER NOTIFICATION.
new text end

new text begin (a) Upon a determination under section 268B.05 that an applicant is entitled to
benefits, the commissioner must promptly send a notification to each current employer
of the applicant, if any, in accordance with paragraph (b).
new text end

new text begin (b) The notification under paragraph (a) must include, at a minimum:
new text end

new text begin (1) the name of the applicant;
new text end

new text begin (2) that the applicant has applied for and received benefits;
new text end

new text begin (3) that the applicant has been identified as an employee of the employer;
new text end

new text begin (4) the week the benefits commence;
new text end

new text begin (5) the weekly benefit amount payable;
new text end

new text begin (6) the maximum duration of benefits;
new text end

new text begin (7) an explanation of why the notification has been sent;
new text end

new text begin (8) a request, but not a requirement, that the employer notify the department if it has
reason to believe any of the information provided is incorrect; and
new text end

new text begin (9) descriptions of the employer's right to participate in a hearing under section
268B.05, and appeal process under section 268B.07.
new text end

Sec. 10.

new text begin [268B.07] APPEAL PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Hearing. new text end

new text begin (a) The commissioner shall designate a chief benefit judge.
new text end

new text begin (b) Upon a timely appeal to a determination having been filed or upon a referral
for direct hearing, the chief benefit judge must set a time and date for a de novo due
process hearing and send notice to any applicant and any employer, by mail or electronic
transmission, not less than ten calendar days before the date of the hearing.
new text end

new text begin (c) The commissioner may adopt rules on procedures for hearings. The rules need
not conform to common law or statutory rules of evidence and other technical rules of
procedure.
new text end

new text begin (d) The chief benefit judge has discretion regarding the method by which the hearing
is conducted.
new text end

new text begin Subd. 2. new text end

new text begin Decision. new text end

new text begin (a) After the conclusion of the hearing, upon the evidence
obtained, the benefit judge must send by mail or electronic transmission to all parties, the
decision, reasons for the decision, and written findings of fact.
new text end

new text begin (b) Decisions of a benefit judge are not precedential.
new text end

new text begin Subd. 3. new text end

new text begin Request for reconsideration. new text end

new text begin Any party, or the commissioner, may,
within 30 calendar days of the receipt of the benefit judge's decision, file a request for
reconsideration asking the judge to reconsider that decision.
new text end

new text begin Subd. 4. new text end

new text begin Appeal to Court of Appeals. new text end

new text begin Any final determination on a request for
reconsideration may be appealed by any party directly to the Minnesota Court of Appeals.
new text end

new text begin Subd. 5. new text end

new text begin Benefit judges. new text end

new text begin (a) Only employees of the department who are attorneys
licensed to practice law in Minnesota may serve as a chief benefit judge, senior benefit
judges who are supervisors, or benefit judges.
new text end

new text begin (b) The chief benefit judge must assign a benefit judge to conduct a hearing and may
transfer to another benefit judge any proceedings pending before another benefit judge.
new text end

Sec. 11.

new text begin [268B.08] BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Weekly benefit amount. new text end

new text begin (a) Weekly benefits must be calculated
as follows:
new text end

new text begin (1) if the average weekly wage of an applicant does not exceed 50 percent of the
state's average weekly wage, then the weekly benefit amount equals 80 percent of the
average weekly wage of the applicant;
new text end

new text begin (2) if the average weekly wage of an applicant exceeds 50 percent, but does not
exceed 100 percent, of the state's average weekly wage, then the weekly benefit amount
equals 66 percent of the average weekly wage of the applicant; and
new text end

new text begin (3) if the average weekly wage of the applicant exceeds 100 percent of the state's
average weekly wage, then the weekly benefit amount equals 55 percent of the average
weekly wage of the applicant.
new text end

new text begin (b) The average weekly wage of the applicant under paragraph (a) must be calculated
by dividing the high quarter wage credits of the applicant by 13.
new text end

new text begin (c) Notwithstanding any other provision in this section, benefits must not exceed the
maximum weekly benefit amount.
new text end

new text begin Subd. 2. new text end

new text begin Timing of payment. new text end

new text begin Except as otherwise provided for in this chapter,
benefits must be paid weekly.
new text end

new text begin Subd. 3. new text end

new text begin Method of payment. new text end

new text begin The commissioner may pay benefits using any
method or methods authorized for the payment of unemployment insurance benefits
under chapter 268.
new text end

new text begin Subd. 4. new text end

new text begin Maximum length of benefits. new text end

new text begin An applicant may receive up to 12 weeks of
benefits within a 52-week period for each of the following:
new text end

new text begin (1) a qualifying event or qualifying events under section 268B.01, subdivision 10,
clauses (1) and (2); and
new text end

new text begin (2) a qualifying event or qualifying events under section 268B.01, subdivision
10, clauses (3) and (4).
new text end

new text begin Subd. 5. new text end

new text begin Minimum period for which benefits payable. new text end

new text begin Any claim for benefits
must be based on a single qualifying event of at least seven days. Thereafter, benefits may
be paid for a minimum increment of one day.
new text end

new text begin Subd. 6. new text end

new text begin Total paid leave not to exceed average weekly wage. new text end

new text begin An applicant's
combined weekly employer paid leave benefits and benefits under this chapter must not
exceed an applicant's average weekly wage.
new text end

new text begin Subd. 7. new text end

new text begin Withholding of federal tax. new text end

new text begin If the Internal Revenue Service determines
that benefits are subject to federal income tax, and an applicant elects to have federal
income tax deducted and withheld from the applicant's benefits, the commissioner must
deduct and withhold the amount specified in the Internal Revenue Code in a manner
consistent with state law.
new text end

Sec. 12.

new text begin [268B.09] EMPLOYMENT PROTECTIONS.
new text end

new text begin (a) An employer must not retaliate against an employee for requesting or obtaining
benefits, or for exercising any other right under this chapter.
new text end

new text begin (b) Any applicant who exercises any right to leave or benefits under this chapter
or from an employer exempted under section 268B.10, upon the expiration of the leave,
is entitled to be restored by the employer to the position held by the employee when the
leave commenced, or to a position with equivalent seniority, status, benefits, pay, and other
terms and conditions of employment including fringe benefits and service credits that the
employee had been entitled to at the commencement of the leave.
new text end

new text begin (c) In addition to any other remedies available by law, an individual injured by a
violation of this section may bring a civil action seeking any damages recoverable by
law, together with costs and disbursements, including reasonable attorney fees, and may
receive injunctive and other equitable relief as determined by a court.
new text end

new text begin (d) During any leave taken under this chapter, the employer must maintain coverage
under any group insurance policy, group subscriber contract, or health care plan for the
employee and any dependents as if the employee was not on leave, provided, however,
that the employee must continue to pay any employee share of the cost of such benefits.
new text end

Sec. 13.

new text begin [268B.10] SUBSTITUTION OF OTHER PLAN; EMPLOYER
EXCLUSION.
new text end

new text begin Subdivision 1. new text end

new text begin Application for exclusion. new text end

new text begin If a majority of affected employees agree
in writing to the application, an employer may apply to the commissioner to be excluded
from either or both benefit programs under this chapter. An employer excluded under
this subdivision from either or both benefit programs is liable for the appropriate tax
under section 268B.12.
new text end

new text begin Subd. 2. new text end

new text begin Employer plan requirements; medical leave benefit program. new text end

new text begin The
commissioner must approve an application for exclusion from the medical leave benefit
program if the commissioner finds that:
new text end

new text begin (1) all of the employees of the employer are to be covered under the provisions of
the employer plan;
new text end

new text begin (2) eligibility requirements for benefits are no more restrictive than as provided for
benefits payable under this chapter;
new text end

new text begin (3) the weekly benefits payable under the employer plan for any week of disability
are at least equal to the weekly benefit amount payable under this chapter, taking into
consideration any coverage with respect to concurrent employment by another employer,
and the total number of weeks of disability for which benefits are payable under the
employer plan is at least equal to the total number of weeks for which benefits would have
been payable under this chapter;
new text end

new text begin (4) no greater amount is required to be paid by employees toward the cost of benefits
under the employer plan than by this chapter; and
new text end

new text begin (5) coverage will be continued under the employer plan while an employee remains
employed by the employer.
new text end

new text begin Subd. 3. new text end

new text begin Employer plan; family leave benefit program. new text end

new text begin The commissioner
must approve an application for exclusion from the family leave benefit program if the
commissioner finds that:
new text end

new text begin (1) all of the employees of the employer are to be covered under the provisions of
the employer plan;
new text end

new text begin (2) eligibility requirements for benefits are no more restrictive than as provided for
benefits payable under this chapter;
new text end

new text begin (3) the weekly benefits payable under the employer plan is at least equal to the
weekly benefit amount payable under this chapter, and the total number of weeks of leave
for which benefits are payable under the employer plan is at least equal to the total number
of weeks for which benefits would have been payable under this chapter;
new text end

new text begin (4) no greater amount is required to be paid by employees toward the cost of benefits
under the employer plan than by this chapter; and
new text end

new text begin (5) coverage will be continued under the employer plan while an employee remains
employed by the employer.
new text end

new text begin Subd. 4. new text end

new text begin Audit and investigation. new text end

new text begin The commissioner may investigate and audit
private plans approved under this section both before and after the plans are approved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019, for exclusions
commencing January 1, 2020, and thereafter.
new text end

Sec. 14.

new text begin [268B.11] SELF-EMPLOYED ELECTION OF COVERAGE.
new text end

new text begin (a) A self-employed individual may file with the commissioner, by electronic
transmission in a format prescribed by the commissioner, an election that the individual is
covered as an employee for not less than two calendar years. Upon the approval of the
commissioner, sent by United States mail or electronic transmission, the individual is
covered as an employee under this chapter beginning the calendar quarter after the date
of approval or beginning in a later calendar quarter if requested by the employer. The
individual ceases to be covered as of the first day of January of any calendar year only if,
at least 30 calendar days before the first day of January, the individual has filed with the
commissioner, by electronic transmission in a format prescribed by the commissioner, a
notice to that effect.
new text end

new text begin (b) The commissioner must terminate any election agreement under this section
upon 30 calendar days' notice sent by mail or electronic transmission if the individual is
delinquent on any taxes due the account.
new text end

new text begin (c) The individual electing under this section must pay both the employer and
employee taxes under section 268B.12.
new text end

new text begin (d) The individual must comply with the requirements imposed on employers and
employees under this chapter except to the extent the commissioner determines requiring
compliance is unreasonable.
new text end

Sec. 15.

new text begin [268B.12] TAXATION.
new text end

new text begin Subdivision 1. new text end

new text begin Employer. new text end

new text begin (a) Each taxpaying employer under the state's
unemployment insurance program must pay a tax on the wages paid to employees in
covered employment for each calendar year. The tax must be paid on all wages up to the
maximum specified by this section.
new text end

new text begin (b) Each reimbursing employer under the state's unemployment insurance law must
pay a tax on the wages paid to employees in covered employment in the same amount
and manner as provided by paragraph (a).
new text end

new text begin Subd. 2. new text end

new text begin Employee. new text end

new text begin Each employee on whose wages a tax is paid under this
section must pay a tax equal to that of the employer under this section, except that an
employee pays no tax under subdivision 4, paragraph (b). The employer shall withhold
those taxes from the wages of an employee and make payment to the commissioner on
behalf of the employee.
new text end

new text begin Subd. 3. new text end

new text begin Wages subject to tax. new text end

new text begin The maximum wages subject to tax in a calendar
year is equal to the maximum earnings in that year subject to the FICA Old-Age,
Survivors, and Disability Insurance tax.
new text end

new text begin Subd. 4. new text end

new text begin Annual tax rates. new text end

new text begin (a) The employer tax rates for the calendar year
beginning January 1, 2020, shall be as follows:
new text end

new text begin (1) for employers participating in both family and medical leave benefit programs,
0.27 percent;
new text end

new text begin (2) for an employer participating in only the medical leave benefit program and
opting out of the family leave benefit program, 0.24 percent, plus the alternative tax in
paragraph (b);
new text end

new text begin (3) for an employer participating in only the family leave benefit program and
opting out of the medical leave benefit program, 0.03 percent, plus the alternative tax in
paragraph (b); and
new text end

new text begin (4) for an employer who opts out of both the family and medical leave benefit
programs, the alternative tax in paragraph (b).
new text end

new text begin (b) For employers who opt out of one or both family and medical leave benefit
programs, the employer tax rate is 14 percent of the combined employer and employee tax
rate for the programs or programs of which they have opted out.
new text end

new text begin Subd. 5. new text end

new text begin Tax rate adjustments. new text end

new text begin (a) Each calendar year following the calendar year
beginning January 1, 2020, the commissioner must adjust the annual tax rates using the
formula in paragraph (b).
new text end

new text begin (b) To calculate the employer tax rates for a calendar year, the commissioner must:
new text end

new text begin (1) multiply 1.45 times the amount disbursed from the account for the 52-week
period ending September 30 of the prior year;
new text end

new text begin (2) subtract the amount in the account on that September 30 from the resulting figure;
new text end

new text begin (3) divide the resulting figure by twice the total wages in covered employment of
employees of employers that have not opted out of both the family and medical leave
benefit programs. For employees of employers that have opted out of one of the two
programs, count only the proportion of wages in covered employment associated with
the program of which the employer did not opt out; and
new text end

new text begin (4) round the resulting figure down to the nearest one-tenth of one percent.
new text end

new text begin (c) Notwithstanding any provision of law to the contrary, the commissioner must not
increase or decrease the employer tax rate by more than 0.1 percent each year.
new text end

new text begin (d) The commissioner must apportion the tax rate between the family and medical
leave benefit programs based on the relative proportion of expenditures for each program
during the preceding year.
new text end

new text begin Subd. 6. new text end

new text begin Tax rate limits. new text end

new text begin Notwithstanding any provision of law to the contrary, the
aggregate tax rate of employers and employees under this chapter must not be less than
0.1 percent or more than 1.5 percent annually.
new text end

new text begin Subd. 7. new text end

new text begin Collection of taxes; efficiencies. new text end

new text begin For collection of taxes under this section,
the commissioner must, to the maximum extent possible, use the same collection process
as that used for collection of unemployment insurance taxes.
new text end

new text begin Subd. 8. new text end

new text begin Deposit of taxes. new text end

new text begin All taxes collected under this section must be deposited
into the family and medical leave benefit account in the special revenue fund in the state
treasury.
new text end

Sec. 16.

new text begin [268B.13] COLLECTION OF TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Amount computed presumed correct. new text end

new text begin Any amount due from an
employer, as computed by the commissioner, is presumed to be correctly determined and
assessed, and the burden is upon the employer to show its incorrectness. A statement
by the commissioner of the amount due is admissible in evidence in any court or
administrative proceeding and is prima facie evidence of the facts in the statement.
new text end

new text begin Subd. 2. new text end

new text begin Priority of payments. new text end

new text begin (a) Any payment received from an employer must
be applied in the following order:
new text end

new text begin (1) taxes due under this chapter; then
new text end

new text begin (2) interest on past due taxes; then
new text end

new text begin (3) penalties, late fees, administrative service fees, and costs.
new text end

new text begin (b) Paragraph (a) is the priority used for all payments received from an employer,
regardless of how the employer may designate the payment to be applied, except when:
new text end

new text begin (1) there is an outstanding lien and the employer designates that the payment made
should be applied to satisfy the lien;
new text end

new text begin (2) a court or administrative order directs that the payment be applied to a specific
obligation;
new text end

new text begin (3) a preexisting payment plan provides for the application of payment; or
new text end

new text begin (4) the commissioner agrees to apply the payment to a different priority.
new text end

new text begin Subd. 3. new text end

new text begin Costs. new text end

new text begin (a) Any employer that fails to pay any amount when due under this
chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral
to any public or private collection agency, or litigation costs, including attorney fees,
incurred in the collection of the amounts due.
new text end

new text begin (b) If any tendered payment of any amount due is not honored when presented to a
financial institution for payment, any costs assessed to the department by the financial
institution and a fee of $25 must be assessed to the person.
new text end

new text begin (c) Costs and fees collected under this subdivision are credited to the account.
new text end

new text begin Subd. 4. new text end

new text begin Interest on amounts past due. new text end

new text begin If any amounts due from an employer
under this chapter, except late fees, are not received on the date due, the unpaid balance
bears interest at the rate of one percent per month or any part of a month. Interest collected
under this subdivision is payable to the account.
new text end

new text begin Subd. 5. new text end

new text begin Interest on judgments. new text end

new text begin Regardless of section 549.09, if judgment is
entered upon any past due amounts from an employer under this chapter, the unpaid
judgment bears interest at the rate specified in subdivision 4 until the date of payment.
new text end

new text begin Subd. 6. new text end

new text begin Credit adjustments; refunds. new text end

new text begin (a) If an employer makes an application for
a credit adjustment of any amount paid under this chapter within four years of the date
that the payment was due, in a manner and format prescribed by the commissioner, and
the commissioner determines that the payment or any portion thereof was erroneous,
the commissioner must make an adjustment and issue a credit without interest. If a
credit cannot be used, the commissioner must refund, without interest, the amount
erroneously paid. The commissioner, on the commissioner's own motion, may make a
credit adjustment or refund under this subdivision.
new text end

new text begin (b) Any refund returned to the commissioner is considered unclaimed property
under chapter 345.
new text end

new text begin (c) If a credit adjustment or refund is denied in whole or in part, a determination of
denial must be sent to the employer by United States mail or electronic transmission. The
determination of denial is final unless an employer files an appeal within 20 calendar days
after receipt of the determination.
new text end

new text begin Subd. 7. new text end

new text begin Priorities under legal dissolutions or distributions. new text end

new text begin In the event of
any distribution of an employer's assets according to an order of any court, including
any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar
proceeding, taxes then or thereafter due must be paid in full before all other claims
except claims for wages of not more than $1,000 per former employee that are earned
within six months of the commencement of the proceedings. In the event of an employer's
adjudication in bankruptcy under federal law, taxes then or thereafter due are entitled to
the priority provided in that law for taxes due.
new text end

Sec. 17.

new text begin [268B.14] ADMINISTRATIVE COSTS.
new text end

new text begin For the calendar year beginning January 1, 2020, and each calendar year thereafter,
the commissioner may spend up to seven percent of projected benefit payments for that
calendar year for the administration of this chapter.
new text end

Sec. 18.

new text begin [268B.15] PUBLIC OUTREACH.
new text end

new text begin The commissioner may use administrative funds for the purpose of outreach and
education for employees regarding this chapter. This may include providing grants to
public and private persons and entities.
new text end

Sec. 19.

new text begin [268B.16] APPLICANT'S FALSE REPRESENTATIONS;
CONCEALMENT OF FACTS; PENALTY.
new text end

new text begin (a) Any applicant who knowingly makes a false statement or representation,
knowingly fails to disclose a material fact, or makes a false statement or representation
without a good-faith belief as to the correctness of the statement or representation in order
to obtain or in an attempt to obtain benefits may be assessed, in addition to any other
penalties, an administrative penalty of ineligibility of benefits for 13 to 104 weeks.
new text end

new text begin (b) A determination of ineligibility setting out the weeks the applicant is ineligible
must be sent to the applicant by United States mail or electronic transmission. The
determination is final unless an appeal is filed within 30 calendar days after receipt of
the determination.
new text end

Sec. 20.

new text begin [268B.17] EMPLOYER MISCONDUCT; PENALTY.
new text end

new text begin (a) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer is in collusion with any applicant for the purpose of
assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the
amount of benefits determined to be overpaid, whichever is greater.
new text end

new text begin (b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer:
new text end

new text begin (1) made a false statement or representation knowing it to be false;
new text end

new text begin (2) made a false statement or representation without a good-faith belief as to the
correctness of the statement or representation; or
new text end

new text begin (3) knowingly failed to disclose a material fact.
new text end

new text begin (c) The penalty is the greater of $500 or 50 percent of the following resulting from
the employer's action:
new text end

new text begin (1) the amount of any overpaid benefits to an applicant;
new text end

new text begin (2) the amount of benefits not paid to an applicant that would otherwise have
been paid; or
new text end

new text begin (3) the amount of any payment required from the employer under this chapter that
was not paid.
new text end

new text begin (d) Penalties must be paid within 30 calendar days of issuance of the determination
of penalty and credited to the account.
new text end

new text begin (e) The determination of penalty is final unless the employer files an appeal within
30 calendar days after the sending of the determination of penalty to the employer by
United States mail or electronic transmission.
new text end

Sec. 21.

new text begin [268B.18] RECORDS; AUDITS.
new text end

new text begin (a) Each employer must keep true and accurate records on individuals performing
services for the employer, containing the information the commissioner may require
under this chapter. The records must be kept for a period of not less than four years
in addition to the current calendar year.
new text end

new text begin (b) For the purpose of administering this chapter, the commissioner has the power to
investigate, audit, examine, or cause to be supplied or copied, any books, correspondence,
papers, records, or memoranda that are the property of, or in the possession of, an
employer or any other person at any reasonable time and as often as may be necessary.
new text end

new text begin (c) An employer or other person that refuses to allow an audit of its records by the
department or that fails to make all necessary records available for audit in the state upon
request of the commissioner may be assessed an administrative penalty of $500. The
penalty collected is credited to the account.
new text end

Sec. 22.

new text begin [268B.19] SUBPOENAS; OATHS.
new text end

new text begin (a) The commissioner or benefit judge has authority to administer oaths and
affirmations, take depositions, certify to official acts, and issue subpoenas to compel the
attendance of individuals and the production of documents and other personal property
necessary in connection with the administration of this chapter.
new text end

new text begin (b) Individuals subpoenaed, other than applicants or officers and employees of an
employer that is the subject of the inquiry, must be paid witness fees the same as witness
fees in civil actions in district court. The fees need not be paid in advance.
new text end

new text begin (c) The subpoena is enforceable through the district court in Ramsey County.
new text end

Sec. 23.

new text begin [268B.20] MEDIATION AND CONCILIATION.
new text end

new text begin The department must offer mediation and conciliation services to employers and
applicants to resolve disputes concerning benefits under this chapter. The commissioner
shall notify parties of the availability of those services and may by rule extend appeal
deadlines to accommodate conciliation and mediation.
new text end

Sec. 24.

new text begin [268B.21] LEAVE.
new text end

new text begin (a) An employee is entitled to leave under this chapter for any period the employee
is entitled to benefits under this chapter.
new text end

new text begin (b) For bonding leave, the leave begins at a time requested by the employee. The
employer may adopt reasonable policies governing the timing of requests for such leave
and may require an employee who plans to take a bonding leave to give the employer
reasonable notice of the date the leave will commence and the estimated duration of the
leave. Bonding leave must begin within 12 months of the birth, adoption, or placement of
a foster child except that, in the case where the child must remain in the hospital longer
than the mother, the leave must begin within 12 months after the child leaves the hospital.
new text end

new text begin (c) When the necessity for family, medical, or pregnancy leave is foreseeable based
on planned medical treatment, the employee must make a reasonable effort to schedule
the treatment so as not to disrupt unduly the operations of the employer, subject to the
approval of the health care provider of the employee or the health care provider of the
family member of the employee.
new text end

new text begin (d) Whether family, medical, or pregnancy leave is foreseeable or unforeseeable, an
employee must give notice of the leave to the employer as soon as practicable.
new text end

new text begin (e) The length of leave under this chapter may be reduced by the length of any leave
taken for the same purposes under United States Code, title 29, chapter 28.
new text end

new text begin (f) Nothing in this chapter prevents any employer from providing leave benefits in
addition to those provided in this chapter or otherwise affects an employee's rights with
respect to any other employment benefit.
new text end

Sec. 25.

Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;

(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(8) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
clause (12), in the case of a shareholder of an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service, including compensation for services performed
under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
5b
, and "active service" includes service performed in accordance with section 190.08,
subdivision 3
;

(11) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States
or United Nations for active duty performed under United States Code, title 10; or the
authority of the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(14) to the extent included in the federal taxable income of a nonresident of
Minnesota, compensation paid to a service member as defined in United States Code, title
10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
Act, Public Law 108-189, section 101(2);

(15) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program;

(16) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision
11
, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of the
Internal Revenue Code;

(20) the amount of the phaseout of personal exemptions under section 151(d) of
the Internal Revenue Code; deleted text beginand
deleted text end

(21) to the extent included in federal taxable income, the amount of qualified
transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
Revenue Code. The subtraction is limited to the lesser of the amount of qualified
transportation fringe benefits received in excess of the limitations under section
132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
of the Internal Revenue Codenew text begin; and
new text end

new text begin (22) the amount received in benefits under chapter 268Bnew text end.

ARTICLE 2

TEMPORARY PROVISIONS AND APPROPRIATIONS

Section 1. new text beginINITIAL TAX RATES FOR FAMILY AND MEDICAL LEAVE
BENEFIT PROGRAM.
new text end

new text begin Notwithstanding any other law to the contrary, the tax rate for employers subject to
tax under Minnesota Statutes, section 268B.12, and employees in an equal amount, is:
new text end

new text begin (1) zero percent in calendar year 2017;
new text end

new text begin (2) 0.05 percent in calendar year 2018; and
new text end

new text begin (3) 0.1 percent in calendar year 2019.
new text end

Sec. 2. new text beginFAMILY AND MEDICAL LEAVE BENEFIT PROGRAM;
APPROPRIATION.
new text end

new text begin $....... in fiscal year 2017 is appropriated from the general fund to the commissioner
of employment and economic development for the purposes of Minnesota Statutes,
chapter 268B.
new text end