SF 3885

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 05/11/2022 09:35am

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.

[63A.01] DEFINITIONS.

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

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

(c) "Child" means a person who is:

(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

(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.

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

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

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

(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.

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

Sec. 2.

[63A.02] PAID FAMILY LEAVE INCOME REPLACEMENT BENEFITS.

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

(1) the birth or adoption of a child by the employee;

(2) placement of a child with the employee for foster care;

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

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

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

Sec. 3.

[63A.03] FAMILY LEAVE BENEFITS.

Family leave benefits may be provided for leave taken by an employee from work to:

(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;

(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;

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

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

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

Sec. 4.

[63A.04] EXPLANATION OF FAMILY LEAVE REASONS.

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

Sec. 5.

[63A.05] BENEFIT PERIOD.

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

(1) a calendar year;

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

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

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

(5) any other method specified in the insurance policy.

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

(1) the waiting period runs over a period of consecutive calendar days;

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

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

(4) the employee may work or receive paid time off or other compensation by the
employer during the waiting period.

Sec. 6.

[63A.06] AMOUNT OF FAMILY LEAVE BENEFITS; OTHER INCOME.

(a) An insurance policy must set forth:

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

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

(3) how the wages or other income is calculated.

(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:

(1) all wages or other income that may be set off; and

(2) the circumstances under which wages or other income may be offset.

Sec. 7.

[63A.07] PERMISSIBLE LIMITATIONS AND EXCLUSIONS.

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

Sec. 8.

[63A.08] OTHER PROVISIONS.

Subdivision 1.

State may not act as insurer.

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

Subd. 2.

Joint pool.

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

Sec. 9. EFFECTIVE DATE.

Sections 1 to 8 are effective January 1, 2023.