Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2529 Latest Draft

Bill / Introduced Version Filed 03/12/2025

                            1.1	A bill for an act​
1.2 relating to employment; delaying the implementation of the Minnesota Paid Leave​
1.3 Law by one year; amending Minnesota Statutes 2024, sections 268B.02, subdivision​
1.4 6; 268B.14, subdivisions 6, 7; 268B.17; 268B.18; 268B.25; 268B.26.​
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.6 Section 1. Minnesota Statutes 2024, section 268B.02, subdivision 6, is amended to read:​
1.7 Subd. 6.Procurement.For purposes of administering this chapter, until July 1, 2026​
1.82027, the department is exempt from the requirements of sections 16A.15, subdivision 3;​
1.916C.06; 16C.08 to 16C.09; and any other applicable state procurement laws and procedures.​
1.10 EFFECTIVE DATE.This section is effective the day following final enactment.​
1.11 Sec. 2. Minnesota Statutes 2024, section 268B.14, subdivision 6, is amended to read:​
1.12 Subd. 6.Annual employer premium rates.The employer premium rates beginning​
1.13January 1, 2026 2027, shall be as follows:​
1.14 (1) for an employer participating in both family and medical benefit programs, 0.7​
1.15percent;​
1.16 (2) for an employer participating in only the medical benefit program and with an​
1.17approved private plan for the family benefit program, 0.4 percent; and​
1.18 (3) for an employer participating in only the family benefit program and with an approved​
1.19private plan for the medical benefit program, 0.3 percent.​
1.20 EFFECTIVE DATE.This section is effective January 1, 2027.​
1​Sec. 2.​
25-02235 as introduced​01/21/25 REVISOR SS/KR​
SENATE​
STATE OF MINNESOTA​
S.F. No. 2529​NINETY-FOURTH SESSION​
(SENATE AUTHORS: RARICK)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​03/13/2025​
Referred to Jobs and Economic Development​ 2.1 Sec. 3. Minnesota Statutes 2024, section 268B.14, subdivision 7, is amended to read:​
2.2 Subd. 7.Premium rate adjustments.The commissioner may adjust the annual premium​
2.3rates pursuant to this section prior to January 1, 2026 2027. By July 31, 2026 2027, and​
2.4then by July 31 of each year thereafter, the commissioner must adjust the annual premium​
2.5rates for the following calendar year based on program historical experience and sound​
2.6actuarial principles and so that the projected fund balance as a percentage of total program​
2.7expenditure does not fall below 25 percent. The commissioner shall contract with a qualified​
2.8independent actuarial consultant to conduct an actuarial study for this purpose no less than​
2.9every year. A copy of all actuarial studies, and any revisions or other documents received​
2.10that relate to an actuarial study, must be provided promptly to the chairs and ranking minority​
2.11members of the legislative committees with jurisdiction over this chapter. All actuarial​
2.12studies, and any revisions or other documents received that relate to an actuarial study, must​
2.13also be filed with the Legislative Reference Library in compliance with section 3.195. A​
2.14qualified independent actuarial consultant is one who is a Fellow of the Society of Actuaries​
2.15(FSA) and a Member of the American Academy of Actuaries (MAAA) and who has​
2.16experience directly relevant to the analysis required. In no year shall the annual premium​
2.17rate exceed 1.2 percent of taxable wages paid to each employee.​
2.18 EFFECTIVE DATE.This section is effective January 1, 2027.​
2.19 Sec. 4. Minnesota Statutes 2024, section 268B.17, is amended to read:​
2.20 268B.17 ADMINISTRATIVE COSTS.​
2.21 Beginning January 1, 2026 2027, and each calendar year thereafter, the commissioner​
2.22may spend up to seven percent of projected benefit payments for that calendar year for the​
2.23administration of this chapter. The department may enter into interagency agreements with​
2.24the Department of Labor and Industry and the Department of Commerce, including​
2.25agreements to transfer funds, subject to the limit in this section, for the Department of Labor​
2.26and Industry to fulfill its enforcement authority of this chapter and for the Department of​
2.27Commerce to fulfill the requirements of this chapter.​
2.28 EFFECTIVE DATE.This section is effective July 1, 2026.​
2.29 Sec. 5. Minnesota Statutes 2024, section 268B.18, is amended to read:​
2.30 268B.18 PUBLIC OUTREACH.​
2.31 Beginning in fiscal year 2026 2027, the commissioner must use at least 0.5 percent of​
2.32projected benefit payments under section 268B.17 for the purpose of outreach, education,​
2​Sec. 5.​
25-02235 as introduced​01/21/25 REVISOR SS/KR​ 3.1and technical assistance for employees, employers, and self-employed individuals eligible​
3.2to elect coverage under section 268B.11. The department may enter into interagency​
3.3agreements with the Department of Labor and Industry and the Department of Commerce,​
3.4including agreements to transfer funds, subject to the limit in section 268B.17, to accomplish​
3.5the requirements of this section. At least one-half of the amount spent under this section​
3.6must be used for grants to community-based groups.​
3.7 EFFECTIVE DATE.This section is effective January 1, 2027.​
3.8 Sec. 6. Minnesota Statutes 2024, section 268B.25, is amended to read:​
3.9 268B.25 ANNUAL REPORTS.​
3.10 (a) Beginning on or before January 1, 2027 2028, the commissioner must annually report​
3.11to the Department of Management and Budget and the house of representatives and senate​
3.12committee chairs with jurisdiction over this chapter on program administrative expenditures​
3.13and revenue collection for the prior fiscal year, including but not limited to:​
3.14 (1) total revenue raised through premium collection;​
3.15 (2) the number of self-employed individuals or independent contractors electing coverage​
3.16under section 268B.11 and amount of associated revenue;​
3.17 (3) the number of covered business entities paying premiums under this chapter and​
3.18associated revenue;​
3.19 (4) administrative expenditures including transfers to other state agencies expended in​
3.20the administration of the chapter;​
3.21 (5) summary of contracted services expended in the administration of this chapter;​
3.22 (6) grant amounts and recipients under sections 268B.18 and 268B.29;​
3.23 (7) an accounting of required outreach expenditures;​
3.24 (8) summary of private plan approvals including the number of employers and employees​
3.25covered under private plans; and​
3.26 (9) adequacy and use of the private plan approval and oversight fee.​
3.27 (b) Beginning on or before January 1, 2027 2028, the commissioner must annually​
3.28publish a publicly available report providing the following information for the previous​
3.29fiscal year:​
3.30 (1) total eligible claims;​
3​Sec. 6.​
25-02235 as introduced​01/21/25 REVISOR SS/KR​ 4.1 (2) the number and percentage of claims attributable to each category of benefit;​
4.2 (3) claimant demographics by age, race or ethnicity, gender, average weekly wage,​
4.3occupation, and the type of leave taken;​
4.4 (4) the percentage of claims denied and the reasons therefor, including but not limited​
4.5to insufficient information and ineligibility and the reason therefor;​
4.6 (5) average weekly benefit amount paid for all claims and by category of benefit;​
4.7 (6) changes in the benefits paid compared to previous fiscal years;​
4.8 (7) processing times for initial claims processing, initial determinations, and final​
4.9decisions;​
4.10 (8) average duration for cases completed;​
4.11 (9) the number of cases remaining open at the close of such year; and​
4.12 (10) the employers who received approval by the department for seasonal employee​
4.13classification and the number of seasonal employees approved for each year.​
4.14 EFFECTIVE DATE.This section is effective January 1, 2027.​
4.15 Sec. 7. Minnesota Statutes 2024, section 268B.26, is amended to read:​
4.16 268B.26 NOTICE REQUIREMENTS.​
4.17 (a) Each employer must post in a conspicuous place on each of its premises a workplace​
4.18notice prepared by the commissioner providing notice of benefits available under this chapter.​
4.19The required workplace notice must be in English and each language other than English​
4.20which is the primary language of five or more employees or independent contractors of that​
4.21workplace, if such notice is available from the department.​
4.22 (b) Each employer must issue to each employee not more than 30 days from the beginning​
4.23date of the employee's employment, or 30 days before premium collection begins, whichever​
4.24is later, the following written information provided by the department in the primary language​
4.25of the employee:​
4.26 (1) an explanation of the availability of family and medical leave benefits provided under​
4.27this chapter, including rights to reinstatement and continuation of health insurance;​
4.28 (2) the amount of premium deductions made by the employer under this chapter;​
4.29 (3) the employer's premium amount and obligations under this chapter;​
4.30 (4) the name and mailing address of the employer;​
4​Sec. 7.​
25-02235 as introduced​01/21/25 REVISOR SS/KR​ 5.1 (5) the identification number assigned to the employer by the department;​
5.2 (6) instructions on how to file a claim for family and medical leave benefits;​
5.3 (7) the mailing address, email address, and telephone number of the department; and​
5.4 (8) any other information required by the department.​
5.5Delivery is made when an employee provides written or electronic acknowledgment of​
5.6receipt of the information. In cases where an employee refuses to acknowledge receipt, an​
5.7employer must be able to demonstrate the way the employee had been notified.​
5.8 (c) An employer that fails to comply with this section may be issued, for a first violation,​
5.9a civil penalty of $50 per employee, and for each subsequent violation, a civil penalty of​
5.10$300 per employee. The employer shall have the burden of demonstrating compliance with​
5.11this section.​
5.12 (d) Employer notice to an employee under this section may be provided in paper or​
5.13electronic format. For notice provided in electronic format only, the employer must provide​
5.14employee access to an employer-owned computer during an employee's regular working​
5.15hours to review and print required notices.​
5.16 (e) The department shall prepare a uniform employee notice form for employers to use​
5.17that provides the notice information required under this section. The commissioner shall​
5.18prepare the uniform employee notice in the five most common languages spoken in​
5.19Minnesota.​
5.20 (f) Each employer who employs or intends to employ seasonal employees as defined in​
5.21section 268B.01, subdivision 35, must issue to each seasonal employee a notice that the​
5.22employee is not eligible to receive paid family and medical leave benefits while the employee​
5.23is so employed. The notice must be provided at the time an employment offer is made, or​
5.24within 30 days of November 1, 2025 2026, for the employer's existing seasonal employees,​
5.25and be in a form provided by the department. Delivery is made when an employee provides​
5.26written or electronic acknowledgment of receipt of the information, or signs a statement​
5.27indicating the employee's refusal to sign such acknowledgment.​
5.28 EFFECTIVE DATE.This section is effective November 1, 2026.​
5.29 Sec. 8. EFFECTIVE DATES.​
5.30 (a) Notwithstanding any law to the contrary, the effective dates for the following sections​
5.31of Minnesota Statutes are as follows:​
5.32 (1) section 268B.03 is effective January 1, 2027;​
5​Sec. 8.​
25-02235 as introduced​01/21/25 REVISOR SS/KR​ 6.1 (2) section 268B.04 is effective November 1, 2026;​
6.2 (3) section 268B.05 is effective November 1, 2026;​
6.3 (4) section 268B.06 is effective November 1, 2026;​
6.4 (5) section 268B.07 is effective November 1, 2026;​
6.5 (6) section 268B.081 is effective November 1, 2026;​
6.6 (7) section 268B.085, subdivision 1, is effective November 1, 2026;​
6.7 (8) section 268B.085, subdivisions 2 and 3, are effective January 1, 2027;​
6.8 (9) section 268B.09, subdivisions 1 to 4, are effective November 1, 2026;​
6.9 (10) section 268B.09, subdivisions 5 to 8, are effective January 1, 2027;​
6.10 (11) section 268B.10 is effective July 1, 2026;​
6.11 (12) section 268B.11 is effective July 1, 2026;​
6.12 (13) section 268B.13 is effective January 1, 2027;​
6.13 (14) section 268B.14 is effective January 1, 2027;​
6.14 (15) section 268B.145 is effective January 1, 2027;​
6.15 (16) section 268B.15 is effective January 1, 2027;​
6.16 (17) section 268B.155 is effective January 1, 2027;​
6.17 (18) section 268B.16 is effective January 1, 2027;​
6.18 (19) section 268B.17 is effective July 1, 2026;​
6.19 (20) section 268B.18 is effective January 1, 2027;​
6.20 (21) section 268B.185 is effective January 1, 2027;​
6.21 (22) section 268B.24 is effective November 1, 2026;​
6.22 (23) section 268B.25 is effective January 1, 2027;​
6.23 (24) section 268B.26 is effective November 1, 2026;​
6.24 (25) section 268B.27 is effective January 1, 2027; and​
6.25 (26) section 268B.29 is effective January 1, 2027.​
6.26 (b) The effective dates in paragraph (a) supersede and prevail over the effective date of​
6.27any other amendments to the sections in paragraph (a) enacted in the 2025 regular or special​
6​Sec. 8.​
25-02235 as introduced​01/21/25 REVISOR SS/KR​ 7.1session of the legislature, regardless of order of enactment. The effective dates for changes​
7.2made to the sections in paragraph (a) during the 2023-2024 legislative sessions are void.​
7.3 EFFECTIVE DATE.This section is effective the day following final enactment.​
7​Sec. 8.​
25-02235 as introduced​01/21/25 REVISOR SS/KR​