Bill Text: MN SF2987 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Welfare reform; low-income workers basic needs; welfare costs reduction; low-income worker child care; working family tax credit and minimum wage increases; emergency employment development program; appropriation

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-05-15 - Referred to Health, Human Services and Housing [SF2987 Detail]

Download: Minnesota-2013-SF2987-Introduced.html

1.1A bill for an act
1.2relating to worker dignity; enabling low-income workers to meet basic needs;
1.3continuing the phased-in minimum wage increase beyond 2016; increasing the
1.4working family credit to match level of the federal earned income tax credit;
1.5providing child care assistance to low-income workers; reestablishing the
1.6Minnesota emergency employment development program; reducing welfare costs
1.7to taxpayers; authorizing rulemaking; appropriating money;amending Minnesota
1.8Statutes 2012, sections 119B.02, subdivisions 1, 2; 119B.03, subdivisions 3, 9, 10;
1.9119B.035, subdivisions 1, 2, 4, 5; 119B.05, subdivision 5; 119B.08, subdivision
1.103; 119B.09, subdivisions 4a, 7; 119B.10; 119B.11, subdivision 1; 119B.12,
1.11subdivision 2; 119B.15; 119B.24; 177.24, subdivision 1, as amended; 290.0671,
1.12subdivision 1; Minnesota Statutes 2013 Supplement, section 119B.13, subdivision
1.131; repealing Minnesota Statutes 2012, sections 119B.011, subdivisions 20, 20a;
1.14119B.03, subdivisions 1, 2, 5, 6, 6a, 6b, 8; 119B.07; 119B.09, subdivision 3;
1.15119B.11, subdivision 4; 290.0671, subdivision 7; Minnesota Statutes 2013
1.16Supplement, sections 119B.03, subdivision 4; 119B.05, subdivision 1.
1.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18ARTICLE 1
1.19FINDINGS

1.20    Section 1. FINDINGS.
1.21(a) The Legislative Commission on Ending Poverty in Minnesota called for steps to
1.22bring an end to poverty by 2020, yet a large number of Minnesotans continue to struggle
1.23to make ends meet. More than one in ten Minnesotans lives in poverty, and three in ten are
1.24struggling to meet basic needs. Some workers cannot afford housing and go from their
1.25jobs to a homeless shelter at night. The year 2014 marks the halfway point between
1.26when the Poverty Commission wrote the report and the year 2020, yet little progress has
1.27been made and bolder action is needed.
2.1(b) Because low-income people frequently need government assistance to feed their
2.2families, the most effective welfare reform is to help Minnesota workers succeed in the
2.3economy. This includes ensuring that there are jobs available to them, they have access
2.4to affordable child care, and that, through higher wages and an increase in the working
2.5family tax credit, they are able to afford basic needs. Helping low-income workers and
2.6their families will boost their productivity, improve the economy, and reduce financial
2.7assistance costs for the state.

2.8ARTICLE 2
2.9CHILD CARE ASSISTANCE CONSOLIDATION

2.10    Section 1. Minnesota Statutes 2012, section 119B.02, subdivision 1, is amended to read:
2.11    Subdivision 1. Child care services. The commissioner shall develop standards
2.12for county and human services boards to provide child care services to enable eligible
2.13families to participate in employment, training, or education programs. Within the limits
2.14of available appropriations, The commissioner shall distribute money to counties to
2.15reduce the costs of child care for eligible families. The commissioner shall adopt rules to
2.16govern the program in accordance with this section. The rules must establish a sliding
2.17schedule of fees for parents receiving child care services. The rules shall provide that
2.18funds received as a lump-sum payment of child support arrearages shall not be counted
2.19as income to a family in the month received but shall be prorated over the 12 months
2.20following receipt and added to the family income during those months. The commissioner
2.21shall maximize the use of federal money under title I and title IV of Public Law 104-193,
2.22the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and
2.23other programs that provide federal or state reimbursement for child care services for
2.24low-income families who are in education, training, job search, or other activities allowed
2.25under those programs. Money appropriated under this section must be coordinated with
2.26the programs that provide federal reimbursement for child care services to accomplish
2.27this purpose. Federal reimbursement obtained must be allocated to the county that spent
2.28money for child care that is federally reimbursable under programs that provide federal
2.29reimbursement for child care services. The counties commissioner shall use the federal
2.30money to expand child care services. The commissioner may adopt rules under chapter 14
2.31to implement and coordinate federal program requirements.

2.32    Sec. 2. Minnesota Statutes 2012, section 119B.02, subdivision 2, is amended to read:
2.33    Subd. 2. Contractual agreements with tribes. The commissioner may enter into
2.34contractual agreements with a federally recognized Indian tribe with a reservation in
3.1Minnesota to carry out the responsibilities of county human service agencies to the extent
3.2necessary for the tribe to operate child care assistance programs for families eligible
3.3under sections 119B.03 119B.09 and 119B.05 119B.10. An agreement may allow for the
3.4tribe to be reimbursed for child care assistance services provided under section 119B.05
3.5
this chapter. The commissioner shall consult with the affected county or counties in the
3.6contractual agreement negotiations, if the county or counties wish to be included, in
3.7order to avoid the duplication of county and tribal child care services. Funding to support
3.8services under section 119B.03 may be transferred to the federally recognized Indian tribe
3.9with a reservation in Minnesota from allocations available to counties in which reservation
3.10boundaries lie. When funding is transferred under section 119B.03, the amount shall be
3.11commensurate to estimates of the proportion of reservation residents with characteristics
3.12identified in section 119B.03, subdivision 6, to the total population of county residents
3.13with those same characteristics.

3.14    Sec. 3. Minnesota Statutes 2012, section 119B.03, subdivision 3, is amended to read:
3.15    Subd. 3. Eligible participants. Families that meet the eligibility requirements
3.16under sections 119B.07, 119B.09, and 119B.10, except MFIP participants, diversionary
3.17work program, and transition year families are eligible for child care assistance under the
3.18basic sliding fee child care assistance program. Families enrolled in the basic sliding fee
3.19 child care assistance program shall be continued until they are no longer eligible. Child
3.20care assistance provided through the child care fund is considered assistance to the parent.

3.21    Sec. 4. Minnesota Statutes 2012, section 119B.03, subdivision 9, is amended to read:
3.22    Subd. 9. Portability pool Family move; continued participation. (a) The
3.23commissioner shall establish a pool of up to five percent of the annual appropriation for
3.24the basic sliding fee program to provide continuous child care assistance for eligible
3.25families who move between Minnesota counties. At the end of each allocation period, any
3.26unspent funds in the portability pool must be used for assistance under the basic sliding fee
3.27program. If expenditures from the portability pool exceed the amount of money available,
3.28the reallocation pool must be reduced to cover these shortages.
3.29(b) To be eligible for portable basic sliding fee assistance, a family that has moved
3.30from a county in which it A family receiving child care assistance under the child care fund
3.31that has moved from a county in which the family was receiving basic sliding fee child
3.32care assistance to a another county with a waiting list for the basic sliding fee program
3.33 must be admitted into the receiving county's child care assistance program if the family:
4.1(1) meet meets the income and eligibility guidelines for the basic sliding fee child
4.2care assistance program; and
4.3(2) notify notifies the new county of residence within 60 days of moving and submit
4.4 submits information to the new county of residence to verify eligibility for the basic
4.5sliding fee child care assistance program.
4.6(c) (b) The receiving county must:
4.7(1) accept administrative responsibility for applicants for portable basic sliding fee
4.8assistance at the end of the two months of assistance under the Unitary Residency Act;.
4.9(2) continue basic sliding fee assistance for the lesser of six months or until the
4.10family is able to receive assistance under the county's regular basic sliding program; and
4.11(3) notify the commissioner through the quarterly reporting process of any family
4.12that meets the criteria of the portable basic sliding fee assistance pool.

4.13    Sec. 5. Minnesota Statutes 2012, section 119B.03, subdivision 10, is amended to read:
4.14    Subd. 10. Application; entry points. Two or more methods of applying for the
4.15basic sliding fee child care assistance program under this chapter must be available to
4.16applicants in each county. To meet the requirements of this subdivision, a county may
4.17provide alternative methods of applying for assistance, including, but not limited to, a mail
4.18application, or application sites that are located outside of government offices.

4.19    Sec. 6. Minnesota Statutes 2012, section 119B.035, subdivision 1, is amended to read:
4.20    Subdivision 1. Establishment. A family in which a parent provides care for the
4.21family's infant child may receive a subsidy in lieu of assistance if the family is eligible
4.22for or is receiving assistance under the basic sliding fee child care assistance program.
4.23An eligible family must meet the eligibility factors under section 119B.09, except as
4.24provided in subdivision 4, and the requirements of this section. Subject to federal match
4.25and maintenance of effort requirements for the child care and development fund, and up to
4.26available appropriations, the commissioner shall provide assistance under the at-home
4.27infant child care program and for administrative costs associated with the program. At
4.28the end of a fiscal year, the commissioner may carry forward any unspent funds under
4.29this section to the next fiscal year within the same biennium for assistance under the basic
4.30sliding fee child care assistance program.

4.31    Sec. 7. Minnesota Statutes 2012, section 119B.035, subdivision 2, is amended to read:
4.32    Subd. 2. Eligible families. A family with an infant under the age of one year is
4.33eligible for assistance if:
5.1(1) the family is not receiving MFIP, other cash assistance, or other child care
5.2assistance;
5.3(2) the family has not previously received a lifelong total of 12 months of assistance
5.4under this section; and
5.5(3) the family is participating in the basic sliding fee child care assistance program
5.6or provides verification of participating in an authorized activity at the time of application
5.7and meets the program requirements.

5.8    Sec. 8. Minnesota Statutes 2012, section 119B.035, subdivision 4, is amended to read:
5.9    Subd. 4. Assistance. (a) A family is limited to a lifetime total of 12 months of
5.10assistance under subdivision 2. The maximum rate of assistance is equal to 68 percent
5.11of the rate established under section 119B.13 for care of infants in licensed family child
5.12care in the applicant's county of residence.
5.13(b) A participating family must report income and other family changes as specified
5.14in the county's plan under section 119B.08, subdivision 3.
5.15(c) Persons who are admitted to the at-home infant child care program retain their
5.16position in any basic sliding fee child care assistance program. Persons leaving the
5.17at-home infant child care program re-enter the basic sliding fee child care assistance
5.18 program at the position they would have occupied.
5.19(d) Assistance under this section does not establish an employer-employee
5.20relationship between any member of the assisted family and the county or state.

5.21    Sec. 9. Minnesota Statutes 2012, section 119B.035, subdivision 5, is amended to read:
5.22    Subd. 5. Implementation. The commissioner shall implement the at-home infant
5.23child care program under this section through counties that administer the basic sliding fee
5.24 child care assistance program under section 119B.03 this chapter. The commissioner must
5.25develop and distribute consumer information on the at-home infant child care program to
5.26assist parents of infants or expectant parents in making informed child care decisions.

5.27    Sec. 10. Minnesota Statutes 2012, section 119B.05, subdivision 5, is amended to read:
5.28    Subd. 5. Federal reimbursement. Counties and the state shall maximize their
5.29federal reimbursement under federal reimbursement programs for money spent for persons
5.30eligible under this chapter. The commissioner shall allocate any federal earnings to the
5.31county to be used to expand child care services under this chapter.

5.32    Sec. 11. Minnesota Statutes 2012, section 119B.08, subdivision 3, is amended to read:
6.1    Subd. 3. Child care fund plan. The county and designated administering agency
6.2shall submit a biennial child care fund plan to the commissioner. The commissioner shall
6.3establish the dates by which the county must submit the plans. The plan shall include:
6.4(1) a description of strategies to coordinate and maximize public and private
6.5community resources, including school districts, health care facilities, government
6.6agencies, neighborhood organizations, and other resources knowledgeable in early
6.7childhood development, in particular to coordinate child care assistance with existing
6.8community-based programs and service providers including child care resource and
6.9referral programs, early childhood family education, school readiness, Head Start, local
6.10interagency early intervention committees, special education services, early childhood
6.11screening, and other early childhood care and education services and programs to the extent
6.12possible, to foster collaboration among agencies and other community-based programs that
6.13provide flexible, family-focused services to families with young children and to facilitate
6.14transition into kindergarten. The county must describe a method by which to share
6.15information, responsibility, and accountability among service and program providers;
6.16(2) a description of procedures and methods to be used to make copies of the
6.17proposed state plan reasonably available to the public, including members of the public
6.18particularly interested in child care policies such as parents, child care providers, culturally
6.19specific service organizations, child care resource and referral programs, interagency
6.20early intervention committees, potential collaborative partners and agencies involved in
6.21the provision of care and education to young children, and allowing sufficient time for
6.22public review and comment; and
6.23(3) information as requested by the department to ensure compliance with the child
6.24care fund statutes and rules promulgated by the commissioner.
6.25The commissioner shall notify counties within 90 days of the date the plan is
6.26submitted whether the plan is approved or the corrections or information needed to approve
6.27the plan. The commissioner shall withhold a county's allocation until it has an approved
6.28plan. Plans not approved by the end of the second quarter after the plan is due may result
6.29in a 25 percent reduction in allocation. Plans not approved by the end of the third quarter
6.30after the plan is due may result in a 100 percent reduction in the allocation to the county
6.31 payments to a county until it has an approved plan. Counties are to maintain services despite
6.32any reduction in their allocation withholding of payments due to plans not being approved.

6.33    Sec. 12. Minnesota Statutes 2012, section 119B.09, subdivision 4a, is amended to read:
6.34    Subd. 4a. Temporary ineligibility of military personnel. Counties must reserve a
6.35family's position under the child care assistance fund if a family has been receiving child
7.1care assistance but is temporarily ineligible for assistance due to increased income from
7.2active military service. Activated military personnel may be temporarily ineligible until
7.3deactivation. A county must reserve a military family's position on the basic sliding fee
7.4waiting list under the child care assistance fund if a family is approved to receive child care
7.5assistance and reaches the top of the waiting list but is temporarily ineligible for assistance.

7.6    Sec. 13. Minnesota Statutes 2012, section 119B.09, subdivision 7, is amended to read:
7.7    Subd. 7. Date of eligibility for assistance. (a) The date of eligibility for child care
7.8assistance under this chapter is the later of the date the application was received by the
7.9county; the beginning date of employment, education, or training; or the date the infant is
7.10born for applicants to the at-home infant care program; or the date a determination has
7.11been made that the applicant is a participant in employment and training services under
7.12Minnesota Rules, part 3400.0080, or chapter 256J.
7.13    (b) Payment ceases for a family under the at-home infant child care program when a
7.14family has used a total of 12 months of assistance as specified under section 119B.035.
7.15Payment of child care assistance for employed persons on MFIP is effective the date of
7.16employment or the date of MFIP eligibility, whichever is later. Payment of child care
7.17assistance for MFIP or DWP participants in employment and training services is effective
7.18the date of commencement of the services or the date of MFIP or DWP eligibility,
7.19whichever is later. Payment of child care assistance for transition year child care must be
7.20made retroactive to the date of eligibility for transition year child care.
7.21(c) Notwithstanding paragraph (b), payment of child care assistance for participants
7.22eligible under section 119B.05 may only be made retroactive for a maximum of six
7.23months from the date of application for child care assistance.

7.24    Sec. 14. Minnesota Statutes 2012, section 119B.10, is amended to read:
7.25119B.10 EMPLOYMENT OR TRAINING ELIGIBILITY.
7.26    Subdivision 1. Assistance for persons seeking and retaining employment. (a)
7.27Persons who are seeking employment and who are eligible for assistance under this section
7.28 chapter are eligible to receive up to 240 hours of child care assistance per calendar year.
7.29(b) Employed persons who work at least an average of 20 hours and full-time students
7.30who work at least an average of ten hours a week and receive at least a minimum wage
7.31for all hours worked are eligible for continued child care assistance for employment. For
7.32purposes of this section, work-study programs must be counted as employment. Child care
7.33assistance during employment must be authorized as provided in paragraphs (c) and (d).
8.1(c) When the person works for an hourly wage and the hourly wage is equal to or
8.2greater than the applicable minimum wage, child care assistance shall be provided for the
8.3actual hours of employment, break, and mealtime during the employment and travel time
8.4up to two hours per day.
8.5(d) When the person does not work for an hourly wage, child care assistance must be
8.6provided for the lesser of:
8.7(1) the amount of child care determined by dividing gross earned income by the
8.8applicable minimum wage, up to one hour every eight hours for meals and break time,
8.9plus up to two hours per day for travel time; or
8.10(2) the amount of child care equal to the actual amount of child care used during
8.11employment, including break and mealtime during employment, and travel time up to
8.12two hours per day.
8.13    Subd. 1a. Assistance for persons participating in employment plan. The
8.14following persons are also eligible for child care assistance:
8.15(1) persons who are participating in employment orientation or job search, or
8.16other employment or training activities that are included in an approved employability
8.17development plan under chapter 256K;
8.18(2) persons who are participating in work, job search, job support, employment, or
8.19training activities as required in their job search support or employment plan or in appeals,
8.20hearings, assessments, or orientations according to chapter 256J;
8.21(3) persons who are participating in social services activities under chapter 256J
8.22or 256K as required in their employment plan approved according to chapter 256J or
8.23256K; and
8.24(4) families who are participating in programs as required in tribal contracts under
8.25section 119B.02, subdivision 2, or 256.01, subdivision 2.
8.26    Subd. 2. Financial eligibility required. Persons participating in employment
8.27programs, training programs, or education programs are eligible for continued assistance
8.28from the child care fund, if they are financially eligible under the sliding fee scale set
8.29by the commissioner in section 119B.12.
8.30    Subd. 3. Child care assistance during education. (a) The following persons are
8.31eligible for child care assistance for education or training:
8.32(1) persons who meet the requirements of section 119B.09 who are enrolled in
8.33remedial or basic education or English as a second language, or persons up to the age of
8.3419 who are enrolled in an educational program to attain a high school diploma or general
8.35equivalency diploma;
9.1(2) persons who meet the requirements of this section and section 119B.09 who
9.2receive child care assistance to reduce the costs of child care for education when employed
9.3an average of at least ten hours per week under subdivision 1, and are not receiving MFIP
9.4benefits as defined in section 119B.011, subdivision 17; and
9.5(3) persons who meet the requirements of this section and section 119B.09 who
9.6receive child care assistance to reduce the costs of child care for education when enrolled
9.7in a postsecondary educational institution as a full-time undergraduate student, and are not
9.8receiving MFIP benefits as defined in section 119B.011, subdivision 17.
9.9(b) Notwithstanding subdivisions 5 and 6, assistance for persons under paragraph
9.10(a), clause (3), is limited to 48 months or the length of time necessary to complete the
9.11degree, whichever is shorter.
9.12    Subd. 4. Satisfactory progress. Students enrolled in an education program
9.13under section 119B.011, subdivision 11, must be making satisfactory progress toward
9.14completion of the program as stipulated in the school's satisfactory progress policy.
9.15    Subd. 5. Limiting duration of training. Counties may not limit the duration of
9.16child care subsidies for a person in an employment or educational program, except when
9.17the person is found to be ineligible under the child care fund eligibility standards. Any
9.18limitation must be based on a person's employment plan in the case of an MFIP participant.
9.19    Subd. 6. Maximum length of time for training. The maximum length of time a
9.20participant is eligible for child care assistance under the child care fund for education and
9.21training is no more than the maximum time allowed to complete the credit requirements
9.22for an associate or baccalaureate degree as stipulated in the school's satisfactory progress
9.23policy. This length of time excludes basic or remedial education programs, English as
9.24a second language, high school, and general equivalency diploma programs needed to
9.25prepare for postsecondary education or employment.
9.26    Subd. 7. MFIP student moves to another county. If an MFIP participant who is
9.27receiving child care assistance under this chapter moves to another county, continues
9.28to participate in educational or training programs authorized in the MFIP participant's
9.29employment plans, and continues to be eligible for child care assistance under this chapter,
9.30the MFIP participant must receive continued child care assistance from the county
9.31responsible for the MFIP participant's current employment plan under section 256G.07.

9.32    Sec. 15. Minnesota Statutes 2012, section 119B.11, subdivision 1, is amended to read:
9.33    Subdivision 1. County contributions required. (a) In addition to payments from
9.34basic sliding fee child care assistance program participants, each county shall contribute
9.35from county tax or other sources a fixed local match equal to its calendar year 1996
10.1required county contribution reduced by the administrative funding loss that would have
10.2occurred in state fiscal year 1996 under section 119B.15. The commissioner shall recover
10.3funds from the county as necessary to bring county expenditures into compliance with this
10.4subdivision. The commissioner may accept county contributions, including contributions
10.5above the fixed local match, in order to make state payments.
10.6(b) The commissioner may accept payments from counties to:
10.7(1) fulfill the county contribution as required under subdivision 1;
10.8(2) pay for services authorized under this chapter beyond those paid for with federal
10.9or state funds or with the required county contributions; or
10.10(3) pay for child care services in addition to those authorized under this chapter, as
10.11authorized under other federal, state, or local statutes or regulations.
10.12(c) The county payments must be deposited in an account in the special revenue
10.13fund. Money in this account is appropriated to the commissioner for child care assistance
10.14under this chapter and other applicable statutes and regulations and is in addition to other
10.15state and federal appropriations.

10.16    Sec. 16. Minnesota Statutes 2012, section 119B.12, subdivision 2, is amended to read:
10.17    Subd. 2. Parent fee. A family must be assessed a parent fee for each service period.
10.18A family's parent fee must be a fixed percentage of its annual gross income. Parent fees
10.19must apply to families eligible for child care assistance under sections 119B.03 and
10.20119B.05 section 119B.09. Income must be as defined in section 119B.011, subdivision 15.
10.21The fixed percent is based on the relationship of the family's annual gross income to 100
10.22percent of the annual state median income. Parent fees must begin at 75 percent of the
10.23poverty level. The minimum parent fees for families between 75 percent and 100 percent
10.24of poverty level must be $2 per biweekly period. Parent fees must provide for graduated
10.25movement to full payment. Payment of part or all of a family's parent fee directly to the
10.26family's child care provider on behalf of the family by a source other than the family shall
10.27not affect the family's eligibility for child care assistance, and the amount paid shall be
10.28excluded from the family's income. Child care providers who accept third-party payments
10.29must maintain family specific documentation of payment source, amount, and time period
10.30covered by the payment.

10.31    Sec. 17. Minnesota Statutes 2013 Supplement, section 119B.13, subdivision 1, is
10.32amended to read:
10.33    Subdivision 1. Subsidy restrictions. (a) Beginning February 3, 2014, July 1,
10.342014, the maximum rate paid for child care assistance in any county or county price
11.1cluster under the child care fund shall be the greater of the 25th percentile of the 2011
11.2child care provider rate survey or the maximum rate effective November 28, 2011. The
11.3commissioner may: (1) assign a county with no reported provider prices to a similar price
11.4cluster; and (2) consider county level access when determining final price clusters is the
11.575th percentile rate for like-care arrangements as surveyed by the commissioner in the
11.6most current market rate survey.
11.7    (b) A rate which includes a special needs rate paid under subdivision 3 or under a
11.8school readiness service agreement paid under section 119B.231, may be in excess of the
11.9maximum rate allowed under this subdivision.
11.10    (c) The department shall monitor the effect of this paragraph on provider rates. The
11.11county shall pay the provider's full charges for every child in care up to the maximum
11.12established. The commissioner shall determine the maximum rate for each type of care
11.13on an hourly, full-day, and weekly basis, including special needs and disability care. The
11.14maximum payment to a provider for one day of care must not exceed the daily rate. The
11.15maximum payment to a provider for one week of care must not exceed the weekly rate.
11.16(d) Child care providers receiving reimbursement under this chapter must not be
11.17paid activity fees or an additional amount above the maximum rates for care provided
11.18during nonstandard hours for families receiving assistance.
11.19    (e) When the provider charge is greater than the maximum provider rate allowed,
11.20the parent is responsible for payment of the difference in the rates in addition to any
11.21family co-payment fee.
11.22    (f) All maximum provider rates changes shall be implemented on the Monday
11.23following the effective date of the maximum provider rate.
11.24    (g) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum
11.25registration fees in effect on January 1, 2013, shall remain in effect.

11.26    Sec. 18. Minnesota Statutes 2012, section 119B.15, is amended to read:
11.27119B.15 ADMINISTRATIVE EXPENSES.
11.28The commissioner shall use up to 1/21 of the state and federal funds available for the
11.29basic sliding fee program and 1/21 of the state and federal funds available for the MFIP
11.30 child care assistance program for payments to counties for administrative expenses the
11.31administrative costs of the delivery of direct services. The commissioner shall make
11.32monthly payments to each county based on direct service expenditures. Payments may be
11.33withheld if monthly reports are incomplete or untimely.

12.1    Sec. 19. Minnesota Statutes 2012, section 119B.24, is amended to read:
12.2119B.24 DUTIES OF COMMISSIONER.
12.3In addition to the powers and duties already conferred by law, the commissioner
12.4of human services shall:
12.5(1) administer the child care fund, including the basic sliding fee program authorized
12.6under sections 119B.011 to 119B.16;
12.7(2) monitor the child care resource and referral programs established under section
12.8119B.19 ; and
12.9(3) encourage child care providers to participate in a nationally recognized
12.10accreditation system for early childhood and school-age care programs. Subject
12.11to approval by the commissioner, family child care providers and early childhood
12.12and school-age care programs shall be reimbursed for one-half of the direct cost of
12.13accreditation fees, upon successful completion of accreditation.

12.14    Sec. 20. DIRECTION TO COMMISSIONER OF MANAGEMENT AND
12.15BUDGET.
12.16The state obligation for the child care assistance program under Minnesota Statutes,
12.17chapter 119B, must be included in the Department of Management and Budget February
12.18and November forecast of state revenues and expenditures under Minnesota Statutes,
12.19section 16A.103, beginning with the November 2014 forecast.

12.20    Sec. 21. REVISOR'S INSTRUCTION.
12.21(a) In the next edition of Minnesota Statutes and Minnesota Rules, the revisor shall
12.22renumber the statutory section in column A with the section in column B, and make
12.23necessary cross-reference changes consistent with the renumbering:
12.24
Column A
Column B
12.25
119B.035
119B.105
12.26
119B.05, subd. 4
119B.03, subd. 11
12.27
119B.05, subd. 5
119B.03, subd. 12
12.28(b) The revisor of statutes shall correct internal cross-references to sections resulting
12.29from the repealer in section 22. The revisor may make changes necessary to correct the
12.30punctuation, grammar, or structure of the remaining text and preserve its meaning.

12.31    Sec. 22. REPEALER.
13.1(a) Minnesota Statutes 2012, sections 119B.011, subdivisions 20 and 20a; 119B.03,
13.2subdivisions 1, 2, 5, 6, 6a, 6b, and 8; 119B.07; 119B.09, subdivision 3; and 119B.11,
13.3subdivision 4, are repealed.
13.4(b) Minnesota Statutes 2013 Supplement, sections 119B.03, subdivision 4; and
13.5119B.05, subdivision 1, are repealed.

13.6ARTICLE 3
13.7WORKING FAMILY TAX CREDIT

13.8    Section 1. Minnesota Statutes 2012, section 290.0671, subdivision 1, is amended to read:
13.9    Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax
13.10imposed by this chapter equal to a percentage 100 percent of earned income. To receive a
13.11credit, a taxpayer must be eligible for a the credit for which the individual is eligible under
13.12section 32 of the Internal Revenue Code.
13.13(b) For individuals with no qualifying children, the credit equals 1.9125 percent of
13.14the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned
13.15income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
13.16case is the credit less than zero.
13.17(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
13.18$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
13.19$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income,
13.20whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
13.21(d) For individuals with two or more qualifying children, the credit equals ten percent
13.22of the first $9,720 of earned income and 20 percent of earned income over $14,860 but less
13.23than $16,800. The credit is reduced by 10.3 percent of earned income or adjusted gross
13.24income, whichever is greater, in excess of $17,890, but in no case is the credit less than zero.
13.25(e) (b) For a nonresident or part-year resident, the credit must be allocated based on
13.26the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
13.27(f) (c) For a person who was a resident for the entire tax year and has earned income
13.28not subject to tax under this chapter, including income excluded under section 290.01,
13.29subdivision 19b
, clause (9), the credit must be allocated based on the ratio of federal
13.30adjusted gross income reduced by the earned income not subject to tax under this chapter
13.31over federal adjusted gross income. For purposes of this paragraph, the subtractions
13.32for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not
13.33considered "earned income not subject to tax under this chapter."
14.1For the purposes of this paragraph, the exclusion of combat pay under section 112
14.2of the Internal Revenue Code is not considered "earned income not subject to tax under
14.3this chapter."
14.4(g) For tax years beginning after December 31, 2007, and before December 31,
14.52010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
14.6paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
14.7$3,000 for married taxpayers filing joint returns. For tax years beginning after December
14.831, 2008, the commissioner shall annually adjust the $3,000 by the percentage determined
14.9pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
14.10section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For 2009,
14.11the commissioner shall then determine the percent change from the 12 months ending on
14.12August 31, 2007, to the 12 months ending on August 31, 2008, and in each subsequent
14.13year, from the 12 months ending on August 31, 2007, to the 12 months ending on August
14.1431 of the year preceding the taxable year. The earned income thresholds as adjusted
14.15for inflation must be rounded to the nearest $10. If the amount ends in $5, the amount
14.16is rounded up to the nearest $10. The determination of the commissioner under this
14.17subdivision is not a rule under the Administrative Procedure Act.
14.18(h) For tax years beginning after December 31, 2010, and before January 1, 2012,
14.19the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
14.20(d), after being adjusted for inflation under subdivision 7, are each increased by $5,000 for
14.21married taxpayers filing joint returns. For tax years beginning after December 31, 2010,
14.22and before January 1, 2012, the commissioner shall annually adjust the $5,000 by the
14.23percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
14.24Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted for the word
14.25"1992." For 2011, the commissioner shall then determine the percent change from the 12
14.26months ending on August 31, 2008, to the 12 months ending on August 31, 2010. The
14.27earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
14.28amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
14.29commissioner under this subdivision is not a rule under the Administrative Procedure Act.
14.30(i) (d) The commissioner shall construct tables showing the amount of the credit
14.31at various income levels and make them available to taxpayers. The tables shall follow
14.32the schedule contained in this subdivision, except that the commissioner may graduate
14.33the transition between income brackets.
14.34EFFECTIVE DATE.This section is effective for taxable years beginning after
14.35December 31, 2014.

15.1    Sec. 2. REPEALER.
15.2Minnesota Statutes 2012, section 290.0671, subdivision 7, is repealed.
15.3EFFECTIVE DATE.This section is effective for taxable years beginning after
15.4December 31, 2014.

15.5ARTICLE 4
15.6MINIMUM WAGE

15.7    Section 1. Minnesota Statutes 2012, section 177.24, subdivision 1, as amended by
15.8Laws 2014, chapter 166, section 2, is amended to read:
15.9    Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
15.10this paragraph have the meanings given them.
15.11(1) "Large employer" means an enterprise whose annual gross volume of sales
15.12made or business done is not less than $500,000 (exclusive of excise taxes at the retail
15.13level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
15.14sections 177.21 to 177.35.
15.15(2) "Small employer" means an enterprise whose annual gross volume of sales made
15.16or business done is less than $500,000 (exclusive of excise taxes at the retail level that
15.17are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
15.18177.21 to 177.35.
15.19(b) Except as otherwise provided in sections 177.21 to 177.35:
15.20(1) every large employer must pay each employee wages at a rate of at least:
15.21(i) $8.00 per hour beginning August 1, 2014;
15.22(ii) $9.00 per hour beginning August 1, 2015;
15.23(iii) $9.50 per hour beginning August 1, 2016; and
15.24(iv) $10.25 per hour beginning August 1, 2017;
15.25(v) $11.00 per hour beginning August 1, 2018;
15.26(vi) $11.75 per hour beginning August 1, 2019;
15.27(vii) $12.50 per hour beginning August 1, 2020; and
15.28(iv) (viii) the rate established under paragraph (f) (e) beginning January 1, 2018
15.29 2021; and
15.30(2) every small employer must pay each employee at a rate of at least:
15.31(i) $6.50 per hour beginning August 1, 2014;
15.32(ii) $7.25 per hour beginning August 1, 2015;
15.33(iii) $7.75 per hour beginning August 1, 2016; and
15.34(iv) $8.50 per hour beginning August 1, 2017;
16.1(v) $9.25 per hour beginning August 1, 2018;
16.2(vi) $10.00 per hour beginning August 1, 2019;
16.3(vii) $10.75 per hour beginning August 1, 2020; and
16.4(iv) (viii) the rate established under paragraph (f) (e) beginning January 1, 2018 2021.
16.5(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
16.6employment, an employer may pay an employee under the age of 20 years a wage of at least:
16.7(1) $6.50 per hour beginning August 1, 2014;
16.8(2) $7.25 per hour beginning August 1, 2015;
16.9(3) $7.75 per hour beginning August 1, 2016; and
16.10(4) $8.50 per hour beginning August 1, 2017;
16.11(5) $9.25 per hour beginning August 1, 2018;
16.12(6) $10.00 per hour beginning August 1, 2019;
16.13(7) $10.75 per hour beginning August 1, 2020; and
16.14(4) (8) the rate established under paragraph (f) (e) beginning January 1, 2018 2021.
16.15No employer may take any action to displace an employee, including a partial
16.16displacement through a reduction in hours, wages, or employment benefits, in order to
16.17hire an employee at the wage authorized in this paragraph.
16.18(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
16.19establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
16.20subdivisions 7
, 8, and 11, must pay an employee working under a contract with the
16.21employer that includes the provision by the employer of a food or lodging benefit, if the
16.22employee is working under authority of a summer work travel exchange visitor program
16.23(J) nonimmigrant visa, a wage of at least:
16.24(1) $7.25 per hour beginning August 1, 2014;
16.25(2) $7.50 per hour beginning August 1, 2015;
16.26(3) $7.75 per hour beginning August 1, 2016; and
16.27(4) the rate established under paragraph (f) beginning January 1, 2018.
16.28No employer may take any action to displace an employee, including a partial
16.29displacement through a reduction in hours, wages, or employment benefits, in order to
16.30hire an employee at the wage authorized in this paragraph.
16.31(e) (d) Notwithstanding paragraph (b), a large employer must pay an employee under
16.32the age of 18 at a rate of at least:
16.33(1) $6.50 per hour beginning August 1, 2014;
16.34(2) $7.25 per hour beginning August 1, 2015;
16.35(3) $7.75 per hour beginning August 1, 2016; and
16.36(4) $8.50 per hour beginning August 1, 2017;
17.1(5) $9.25 per hour beginning August 1, 2018;
17.2(6) $10.00 per hour beginning August 1, 2019;
17.3(7) $10.75 per hour beginning August 1, 2020; and
17.4(4) (8) the rate established under paragraph (f) (e) beginning January 1, 2018 2021.
17.5No employer may take any action to displace an employee, including a partial
17.6displacement through a reduction in hours, wages, or employment benefits, in order to
17.7hire an employee at the wage authorized in this paragraph.
17.8(f) (e) No later than August 31 of each year, beginning in 2017 2021, the
17.9commissioner shall determine the percentage increase in the rate of inflation, as measured
17.10by the implicit price deflator, national data for personal consumption expenditures
17.11as determined by the United States Department of Commerce, Bureau of Economic
17.12Analysis during the 12-month period immediately preceding that August or, if that data
17.13is unavailable, during the most recent 12-month period for which data is available. The
17.14minimum wage rates in paragraphs (b), (c), (d), and (e) are increased by the lesser of:
17.15(1) 2.5 percent, rounded to the nearest cent; or (2) the percentage calculated by the
17.16commissioner, rounded to the nearest cent. A minimum wage rate shall not be reduced
17.17under this paragraph. The new minimum wage rates determined under this paragraph
17.18take effect on the next January 1.
17.19(g)(1) (f)(1) No later than September 30 of each year, beginning in 2017 2021,
17.20the commissioner may issue an order that an increase calculated under paragraph (f)
17.21 (e) not take effect. The commissioner may issue the order only if the commissioner,
17.22after consultation with the commissioner of management and budget, finds that leading
17.23economic indicators, including but not limited to projections of gross domestic product
17.24calculated by the United States Department of Commerce, Bureau of Economic Analysis;
17.25the Consumer Confidence Index issued by the Conference Board; and seasonally adjusted
17.26Minnesota unemployment rates, indicate the potential for a substantial downturn in the
17.27state's economy. Prior to issuing an order, the commissioner shall also calculate and
17.28consider the ratio of the rate of the calculated change in the minimum wage rate to the
17.29rate of change in state median income over the same time period used to calculate the
17.30change in wage rate. Prior to issuing the order, the commissioner shall hold a public
17.31hearing, notice of which must be published in the state register, on the department's Web
17.32site, in newspapers of general circulation, and by other means likely to inform interested
17.33persons of the hearing, at least 10 days prior to the hearing. The commissioner must allow
17.34interested persons to submit written comments to the commissioner before the public
17.35hearing and for 20 days after the public hearing.
18.1(2) The commissioner may in a year subsequent to issuing an order under clause
18.2(1), make a supplemental increase in the minimum wage rate in addition to the increase
18.3for a year calculated under paragraph (f) (e). The supplemental increase may be in an
18.4amount up to the full amount of the increase not put into effect because of the order. If the
18.5supplemental increase is not the full amount, the commissioner may make a supplemental
18.6increase of the difference, or any part of a difference, in a subsequent year until the full
18.7amount of the increase ordered not to take effect has been included in a supplemental
18.8increase. In making a determination to award a supplemental increase under this clause,
18.9the commissioner shall use the same considerations and use the same process as for an
18.10order under clause (1). A supplemental wage increase is not subject to and shall not be
18.11considered in determining whether a wage rate increase exceeds the limits for annual wage
18.12rate increases allowed under paragraph (f) (e).
18.13EFFECTIVE DATE.This section is effective August 1, 2014 2015.

18.14ARTICLE 5
18.15MINNESOTA EMERGENCY EMPLOYMENT DEVELOPMENT

18.16    Section 1. CITATION.
18.17Sections 1 to 14 may be cited as the "Minnesota Emergency Employment
18.18Development (MEED) Act of 2014."

18.19    Sec. 2. DEFINITIONS.
18.20    Subdivision 1. Terms. For the purposes of sections 1 to 14, the following terms
18.21have the meanings given them.
18.22    Subd. 2. Commissioner. "Commissioner" means the commissioner of employment
18.23and economic development.
18.24    Subd. 3. Department. "Department" means the Department of Employment and
18.25Economic Development.
18.26    Subd. 4. Eligible business. "Eligible business" means a for-profit business.
18.27    Subd. 5. Eligible employer. "Eligible employer" means an eligible government
18.28agency, an eligible nonprofit agency, or an eligible business.
18.29    Subd. 6. Eligible government agency. "Eligible government agency" means a
18.30county, municipality, school district, or other local governmental subdivision.
18.31    Subd. 7. Eligible job applicant. "Eligible job applicant" means a person who:
18.32(1) has been a resident of this state for at least six months;
18.33(2) is unemployed;
19.1(3) has attempted to secure a nonsubsidized job by completing a comprehensive job
19.2search program administered by a county or workforce service area;
19.3(4) is not receiving and is not eligible to receive unemployment compensation or
19.4workers' compensation; and
19.5(5) is determined by the employment administrator to be likely to be available for
19.6employment by an eligible employer for the duration of the job.
19.7    Subd. 8. Eligible nonprofit agency. "Eligible nonprofit agency" means an
19.8organization exempt from taxation under the Internal Revenue Code of 1986, section
19.9501(c)(3), as amended.
19.10    Subd. 9. Employment administrator. "Employment administrator" means the
19.11administrative entity designated by the commissioner to administer the provisions of this
19.12act in each workforce service area.
19.13    Subd. 10. Household. "Household" means an individual, the individual's spouse,
19.14and any person considered a dependent under sections 151 and 152 of the Internal
19.15Revenue Code domiciled at the same address.
19.16    Subd. 11. Program. "Program" means the Minnesota emergency employment
19.17development program created by sections 1 to 14 consisting of temporary employment
19.18projects in the government and nonprofit agencies and new permanent job creation in
19.19the private sector.
19.20    Subd. 12. Workforce service area. "Workforce service area" means an area
19.21designated as a workforce service area under Minnesota Statutes, section 116L.666.

19.22    Sec. 3. DUTIES OF COMMISSIONER.
19.23    Subdivision 1. Duties. The commissioner shall administer the provisions of sections
19.241 to 14. The commissioner shall:
19.25(1) enter into contracts with the workforce service areas within 30 days of enactment;
19.26    (2) review the emergency employment development plan submitted by the
19.27employment administrator of each workforce service area and approve satisfactory plans.
19.28If an employment administrator submits an unsatisfactory plan, the department shall assist
19.29the employment administrator in developing a satisfactory one;
19.30    (3) coordinate the program with other state agencies;
19.31    (4) coordinate administration of the program with the Minnesota family investment
19.32program under Minnesota Statutes, chapter 256J;
19.33    (5) set policy regarding disbursement of program funds;
19.34    (6) perform general program marketing and monitoring functions; and
20.1(7) apply to the federal government for a waiver allowing Minnesota to use extended
20.2unemployment insurance benefits for wage subsidies and to seek federal funding for
20.3this program.
20.4    Subd. 2. Enforcement. The commissioner shall ensure that all eligible employers
20.5and employment administrators comply with sections 1 to 14 and all other applicable state
20.6and federal laws, including those relating to:
20.7(1) affirmative action;
20.8(2) occupational health and safety standards;
20.9(3) environmental standards; and
20.10(4) fair labor practices.
20.11    Subd. 3. Report to governor and legislature. The commissioner shall report
20.12semiannually to the chairs of the standing committees of the house of representatives
20.13and senate having jurisdiction over employment and economic development issues and
20.14the governor on:
20.15(1) the number of persons employed;
20.16(2) the number and type of employers under the program;
20.17(3) the amount of money spent in each service delivery area for wages for each type
20.18of employment and each type of other expense;
20.19(4) the number of persons who have completed participation in the program and their
20.20current employment, educational, or training status; and
20.21(5) any other information deemed pertinent by the commissioner.
20.22    Subd. 4. Rules. The commissioner may adopt rules necessary to implement the
20.23Minnesota emergency employment development program of 2014.

20.24    Sec. 4. ALLOCATION OF FUNDS AMONG WORKFORCE SERVICE AREAS.
20.25    (a) Ninety percent of the funds available for allocation to employment administrators
20.26for the program must be allocated among eligible workforce service areas. Workforce
20.27service areas are eligible to receive that proportion of the funds available which equals
20.28the number of unemployed persons in the workforce service area divided by the total
20.29number of unemployed persons in the state for the 12-month period ending with the
20.30most recent March 31.
20.31    (b) Ten percent of the funds available for allocation to employment administrators
20.32under the program must be allocated at the discretion of the commissioner to employment
20.33administrators:
21.1    (1) who will maximize the use of the funds through coordination with other
21.2programs and state, local, and federal agencies, through the use of matching funds or
21.3through the involvement of low-income constituent groups;
21.4    (2) who have demonstrated need beyond the allocation available under paragraph
21.5(a); or
21.6    (3) who have demonstrated outstanding performance in job creation.

21.7    Sec. 5. ALLOCATION WITHIN WORKFORCE SERVICE AREAS;
21.8PRIORITIES.
21.9    Subdivision 1. Among job applicants. Allocation of funds among eligible job
21.10applicants within a workforce service area shall be determined by the employment
21.11administrator in each workforce service area. The employment administrator shall give
21.12priority to:
21.13    (1) applicants living in households with no other income source;
21.14    (2) applicants who would otherwise be eligible to participate in the Minnesota
21.15family investment program or the diversionary work program; and
21.16(3) veterans as defined under Minnesota Statutes, section 196.21, subdivision 2.
21.17    Subd. 2. Among employers. The employment administrator within each workforce
21.18service area shall determine allocation of funds among eligible employers within
21.19a workforce service area according to the priorities in section 9. The employment
21.20administrator shall give priority to funding private sector jobs to the extent that eligible
21.21businesses apply for funds. No more than 50 percent of the funds may be allocated for
21.22jobs with eligible government and nonprofit agencies during the biennium.

21.23    Sec. 6. USE OF FUNDS.
21.24    (a) Funds appropriated for the purposes of sections 1 to 14 may be used as follows:
21.25    (1) to provide a state contribution for wages and fringe benefits for eligible job
21.26applicants for a maximum of 1,040 hours over a maximum period of 26 weeks per job
21.27applicant. For eligible job applicants participating in a job training program, the state
21.28contribution for wages may be used for a maximum period of 26 weeks per job applicant.
21.29The employer must pay at least $10 per hour to each eligible employee. The state
21.30contribution for wages shall be 50 percent of the wage up to $12 per hour for each eligible
21.31job applicant employed by an eligible employer. The employer may use funds from other
21.32sources to provide increased wages to the applicants it employs. At least 70 percent of the
21.33funds appropriated for the program must be used to pay wages for eligible job applicants;
22.1    (2) to reimburse the department in an amount not to exceed one percent of the funds
22.2appropriated for the actual cost of administering sections 1 to 14;
22.3(3) to reimburse the employment administrators in an amount not to exceed 14
22.4percent of the funds appropriated for the actual cost of program operations. Of the 14
22.5percent, no more than ten percent may be used for administrative costs for workforce
22.6service areas as defined under the Workforce Investment Act. The commissioner and
22.7the employment administrators shall reallocate funds from other sources to cover the
22.8administrative costs of this program whenever possible;
22.9    (4) to provide child care services or subsidies to applicants employed under sections
22.101 to 14;
22.11    (5) to provide workers' compensation coverage to applicants employed by
22.12government or nonprofit agencies under sections 1 to 14;
22.13    (6) to provide job search assistance, labor market orientation, job seeking skills,
22.14and referral for other services; and
22.15    (7) to purchase supplies and materials for projects creating permanent improvements
22.16to public property in an amount not to exceed one percent of the funds appropriated.
22.17    (b) Any funds allocated to the workforce service area for which there is no spending
22.18plan approved by the commissioner or which are significantly underspent in the reporting
22.19period shall cancel back to the Minnesota emergency employment development account
22.20and must be reallocated by the commissioner to other employment administrators.

22.21    Sec. 7. EMPLOYMENT ADMINISTRATORS; POWERS AND DUTIES.
22.22    Subdivision 1. In general. The employment administrator for each workforce
22.23service area has the powers and duties given in this section and any additional duties
22.24given by the commissioner.
22.25    Subd. 2. Employment plan. Each employment administrator shall develop an
22.26emergency employment development plan for the workforce service area under guidelines
22.27developed by the commissioner and submit it to the commissioner within the period
22.28allowed by the commissioner. To the extent feasible, the employment administrator shall
22.29seek input from potential eligible employers and the public.
22.30    Subd. 3. Outreach. Each employment administrator shall publicize the program
22.31within the workforce service area to seek maximum participation by eligible job applicants
22.32and employers.
22.33    Subd. 4. Contracts. Each employment administrator shall enter into contracts with
22.34eligible employers setting forth the terms of their participation in the program as required
22.35by sections 1 to 14.
23.1    Subd. 5. Screening and coordination. Each employment administrator shall screen
23.2job applicants and employers to achieve the best possible placement of eligible job
23.3applicants with eligible employers.
23.4    Subd. 6. Eligible job applicant priority lists. Each employment administrator
23.5shall maintain a list of eligible job applicants unable to secure employment under the
23.6program at the time of application. The list shall prioritize eligible job applicants pursuant
23.7to section 5, subdivision 1, and shall be used to fill jobs with eligible employers as they
23.8become available.
23.9    Subd. 7. Coordination of education and training programs. Each employment
23.10administrator shall cooperate with local educational and training institutions to coordinate
23.11and publicize the availability of their resources to assure that applicants may receive
23.12training needed before or while employed in jobs which are available under the program.
23.13    Subd. 8. Materials. Each employment administrator may disburse funds not to
23.14exceed one percent of the amount allocated to the service delivery area for the purchase of
23.15supplies and materials for projects creating permanent improvements to public property.

23.16    Sec. 8. ELIGIBLE GOVERNMENT AND NONPROFIT AGENCY
23.17EMPLOYMENT.
23.18    A government or nonprofit agency is an eligible employer with respect to temporary
23.19employment projects that are determined by the employment administrator to have
23.20long-term benefit to or are needed by the community including, but not limited to, jobs
23.21in permanent public improvement projects, residential or public building weatherization
23.22projects, reforestation projects, mineland reclamation projects, planting or tree trimming
23.23projects, soil conservation projects, natural resource development projects, and community
23.24social service programs such as child care and home health care.

23.25    Sec. 9. BUSINESS EMPLOYMENT.
23.26    Subdivision 1. Eligible businesses. A business employer is an eligible employer
23.27if it enters into a written contract with the employment administrator in its workforce
23.28service area containing assurances that:
23.29    (1) funds received by a business shall be used only as permitted under sections 1 to 14;
23.30    (2) the business has submitted a plan to the employment administrator:
23.31(i) describing the duties and proposed compensation of each employee proposed to
23.32be hired under the program; and
23.33(ii) demonstrating that, with the funds provided under sections 1 to 14, the business
23.34is likely to succeed and continue to employ persons hired under the program;
24.1    (3) the business will use funds exclusively for compensation and fringe benefits of
24.2eligible job applicants and will provide employees hired with these funds with fringe
24.3benefits and other terms and conditions of employment comparable to those provided to
24.4other employees of the business who do comparable work;
24.5    (4) the funds are necessary to allow the business to begin, or to employ additional
24.6people, but not to fill positions which would be filled even in the absence of funds from
24.7this program;
24.8    (5) the business will cooperate with the commissioner and the employment
24.9administrator in collecting data to assess the result of the program; and
24.10    (6) the business is in compliance with all applicable affirmative action, fair labor,
24.11health, safety, and environmental standards.
24.12    Subd. 2. Priorities. In allocating funds among eligible businesses, the employment
24.13administrator shall give priority to businesses which best satisfy the following criteria:
24.14    (1) have a high potential for growth and long-term job creation;
24.15    (2) are labor intensive;
24.16    (3) meet the definition of a small business as defined in Minnesota Statutes, section
24.17645.445;
24.18    (4) make high use of local and Minnesota resources;
24.19    (5) are under ownership of women or minorities;
24.20    (6) make extensive use of new technology;
24.21    (7) produce energy conserving materials or services or are involved in development
24.22of renewable sources of energy; and
24.23    (8) have their primary place of business in Minnesota.
24.24    Subd. 3. Employer accountability. (a) A business receiving funds under this
24.25program is expected to retain employees at least six months beyond the initial six-month
24.26subsidized period. In the event an employer terminates participation in the subsidy program
24.27during the initial six-month subsidy phase for any participant, the employer shall pay back
24.2820 percent of the subsidies received to date. In the event an employer has not retained
24.29a participant at least 90 days beyond the subsidy phase, the employer shall pay back 20
24.30percent of the wage subsidies received. In the event a business employer has retained a
24.31participant 180 days beyond the subsidy period, a business employer will be eligible for a
24.32bonus equivalent to $2 per hour for the hours the participant worked during those 180 days.
24.33(b) If an employer dismisses an employee for good cause or the employee chooses to
24.34leave the position and the employer works in good faith with the program administrator
24.35to employ and train another person referred by the employment administrator, the
25.1accountability conditions shall apply as if the original participant had fulfilled the
25.2employment timeline.

25.3    Sec. 10. MINNESOTA EMERGENCY EMPLOYMENT DEVELOPMENT
25.4ACCOUNT.
25.5The Minnesota emergency employment development account is created in the state
25.6treasury. All payments from businesses under section 9 shall be deposited in this account,
25.7and all funds in the account are appropriated to the commissioner of employment and
25.8economic development for the purpose of making disbursements pursuant to section 6.

25.9    Sec. 11. WORKER DISPLACEMENT PROHIBITED.
25.10    Subdivision 1. Layoffs; work reductions. An eligible employer may not terminate,
25.11lay off, or reduce the working hours of an employee for the purpose of hiring an individual
25.12with funds available under sections 1 to 14.
25.13    Subd. 2. Hiring during layoffs. An eligible employer may not hire an individual
25.14with funds available under sections 1 to 14 if any other person has been laid off from the
25.15same or a substantially equivalent job within the previous six months.
25.16    Subd. 3. Employer certification. In order to qualify as an eligible employer, a
25.17government or nonprofit agency or business must certify to the employment administrator
25.18that each job created and funded under sections 1 to 14:
25.19    (1) will result in an increase in employment opportunities over those which would
25.20otherwise be available;
25.21    (2) will not result in the displacement of currently employed workers, including
25.22partial displacement such as reduction in hours of nonovertime work, wages, or
25.23employment benefits; and
25.24    (3) will not impair existing contracts for service or result in the substitution of
25.25program funds for other funds in connection with work that would otherwise be performed.

25.26    Sec. 12. TERMINATION; NOTIFICATION.
25.27    (a) On the date the program is terminated, any balance remaining in the Minnesota
25.28emergency employment development account established under section 10 shall cancel
25.29to the general fund. Any payments received under section 10 on or after that date shall
25.30be deposited in the general fund.
25.31    (b) The commissioner shall immediately terminate the Minnesota emergency
25.32employment development program if and when none of the money appropriated under
25.33section 13 remains.

26.1    Sec. 13. APPROPRIATION.
26.2$200,000,000 is appropriated from the general fund to the commissioner for
26.3deposit in the Minnesota emergency employment development account each year in the
26.42014-2015 biennium for the Minnesota Emergency Employment Development (MEED)
26.5Act of 2014. Any unexpended balance remaining at the end of the fiscal year does not
26.6cancel and is available until expended.

26.7    Sec. 14. EFFECTIVE DATE.
26.8    This article is effective the day following final enactment.
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