Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2943 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to retirement; Minnesota Secure Choice Retirement Program; adding
3	3	1.3 penalties for noncompliance; providing criminal penalties; proposing coding for
4	4	1.4 new law in Minnesota Statutes, chapter 187.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. [187.012] PENALTIES FOR NONCOMPLIANCE.
7	7	1.7 Subdivision 1.Failure to enroll covered employees or distribute information.(a)
8	8	1.8The board must assess penalties against a covered employer that fails to comply with section
9	9	1.9187.07, subdivision 1 or 3 or both subdivisions 1 and 3, beginning with the second
10	10	1.10anniversary of the date on which the covered employer was first required to comply with
11	11	1.11section 187.07, subdivision 1 or 3, as applicable.
12	12	1.12 (b) The board must assess the following penalties for a covered employer's failure to
13	13	1.13comply with section 187, subdivision 1 or 3:
14	14	1.14 (1) on the second anniversary, a penalty of $100 per covered employee, not to exceed
15	15	1.15$4,000;
16	16	1.16 (2) on the third anniversary, a penalty of $200 per covered employee, not to exceed
17	17	1.17$6,000;
18	18	1.18 (3) on the fourth anniversary, a penalty of $300 per covered employee; and
19	19	1.19 (4) on each anniversary after the fourth anniversary, a penalty of $500 per covered
20	20	1.20employee.
21	21	1.21 (c) If the covered employer fails to comply with both subdivisions 1 and 3, the board
22	22	1.22must assess two times the penalties in paragraph (b).
23	23	1Section 1.
24	24	REVISOR VH/MI 25-0468103/19/25
25	25	State of Minnesota
26	26	This Document can be made available
27	27	in alternative formats upon request
28	28	HOUSE OF REPRESENTATIVES
29	29	H. F. No. 2943
30	30	NINETY-FOURTH SESSION
31	31	Authored by Nadeau and Lillie04/01/2025
32	32	The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1 (d) The date on which a covered employer is first required to comply with section 187.07,
33	33	2.2subdivision 1, is the following:
34	34	2.3 (1) for paragraph (a), on or before the 30th day after the first day of employment of a
35	35	2.4covered employee hired by the covered employer; and
36	36	2.5 (2) for paragraph (b), on or before the 30th day after the end of the enrollment window
37	37	2.6applicable to the covered employer.
38	38	2.7 (e) The date on which a covered employer is first required to comply with section 187.07,
39	39	2.8subdivision 3, is the following:
40	40	2.9 (1) for paragraph (a), for a newly hired covered employee no later than 14 days after the
41	41	2.10covered employee's first day of employment; and
42	42	2.11 (2) for paragraph (b), no later than the 14th day prior to the date of the first paycheck
43	43	2.12from which employee contributions could be deducted for transmittal to the program.
44	44	2.13 Subd. 2.Notice and waiver.Before assessing a penalty under subdivision 1, the board
45	45	2.14must provide the covered employer with a written notice informing the covered employer
46	46	2.15of the amount of the penalty and that the penalty will not be assessed if:
47	47	2.16 (1) the covered employer cures the violation no later than 30 days after the date of the
48	48	2.17notice; or
49	49	2.18 (2) the board waives the penalty at the request of the covered employer due to extenuating
50	50	2.19circumstances.
51	51	2.20 Subd. 3.Failure to remit contributions.(a) If the executive director has reason to
52	52	2.21believe, based on communication from a covered employee or another source, that a covered
53	53	2.22employer has failed to comply with section 187.07, subdivision 2, by not remitting payroll
54	54	2.23deduction contributions withheld from the paycheck of one or more covered employees
55	55	2.24within 30 days after the deduction is withheld, the executive director must make a written
56	56	2.25demand to the covered employer requiring the covered employer to immediately remit to
57	57	2.26the program the withheld contributions plus interest at the annual rate specified in section
58	58	2.27356.59, subdivision 2, for the period beginning with the tenth day after the contribution was
59	59	2.28deducted from the covered employee's paycheck to the date the contribution is remitted to
60	60	2.29the program.
61	61	2.30 (b) Any covered employer that willfully and intentionally fails to remit a payroll deduction
62	62	2.31contribution within ten days after demand from the executive director is guilty of a
63	63	2.32misdemeanor.
64	64	2Section 1.
65	65	REVISOR VH/MI 25-0468103/19/25 3.1 (c) If the executive director issues a written demand to a covered employer under
66	66	3.2paragraph (a) for a second time, the executive director must assess a penalty of $250 for
67	67	3.3each employee contribution withheld but not transmitted to the program.
68	68	3.4 Subd. 4.Action; damages.(a) A covered employee or the attorney general, upon referral
69	69	3.5from the board, may bring a civil action against a covered employer for a failure to enroll
70	70	3.6covered employees, distribute information, or remit contributions under section 187.07,
71	71	3.7subdivisions 1 to 3. A covered employer who is found to have violated these subdivisions
72	72	3.8is liable to the program for the civil penalties provided for in this section. A covered employer
73	73	3.9who is found to have violated these subdivisions is liable for compensatory damages and
74	74	3.10other appropriate relief including but not limited to injunctive relief.
75	75	3.11 (b) The attorney general, upon referral from the board, may bring a criminal action
76	76	3.12against a covered employer for the misdemeanor of not remitting contributions under section
77	77	3.13187.07, subdivision 2.
78	78	3.14 (c) An action brought under paragraph (a) or (b) may be filed in the district court of the
79	79	3.15county in which a violation is alleged to have been committed, where the covered employer
80	80	3.16resides or has a principal place of business, or any other court of competent jurisdiction.
81	81	3.17 (d) In an action brought under paragraph (a) or (b), the court must order a covered
82	82	3.18employer who is found to have committed a violation to pay to the program or covered
83	83	3.19employee, as appropriate, reasonable costs, disbursements, witness fees, and attorney fees.
84	84	3.20 EFFECTIVE DATE.This section is effective upon enactment in the 2025 regular or
85	85	3.21special session of a bill styled as H.F. No. ..../S.F. No. ...., also referred to as revisor number
86	86	3.2225-04680, section 8, or its equivalent.
87	87	3Section 1.
88	88	REVISOR VH/MI 25-0468103/19/25