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SF 2672

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to employment; requiring certain health cost payments by large
employers; proposing coding for new law in Minnesota Statutes, chapter 177.

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

Section 1.

new text begin [177.45] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of sections 177.45 to 177.47, the terms
defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of labor and
industry.
new text end

new text begin Subd. 3. new text end

new text begin Employee. new text end

new text begin "Employee" means a person who performs services for hire for
an employer, and includes all individuals employed at any site in Minnesota owned or
operated by an employer. Employee does not include an independent contractor.
new text end

new text begin Subd. 4. new text end

new text begin Employer. new text end

new text begin "Employer" means any corporation or other legal entity
with more than 10,000 employees in Minnesota including the state or any of its political
subdivisions.
new text end

new text begin Subd. 5. new text end

new text begin Health costs. new text end

new text begin "Health costs" means the amount paid by an employer to
provide health care or health insurance to employees to the extent the costs are deductible
by an employer under federal tax law. Health costs include payments for insurance,
medical care, prescription drugs, vision care, medical savings accounts, exercise programs, and any other
costs to provide health benefits as defined in section 213(d) of the federal Internal Revenue
Code of 1986, as amended.
new text end

new text begin Subd. 6. new text end

new text begin Wages. new text end

new text begin "Wages" has the meaning provided in section 268.035, subdivision
29.
new text end

new text begin Wages do not include:
new text end

new text begin (1) wages paid to any employee in excess of the state median household income as
most recently determined by the Department of Housing and Urban Development; and
new text end

new text begin (2) wages paid to an employee who is enrolled in or eligible for Medicare.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007.
new text end

Sec. 2.

new text begin [177.46] EMPLOYER HEALTH COST PAYMENT.
new text end

new text begin Subdivision 1. new text end

new text begin When payment required. new text end

new text begin An employer that does not spend at least
eight percent of the total wages paid in a calendar year to employees for health costs
must make a payment to the commissioner equal to the difference between what the
employer spends for health costs and eight percent of the total wages paid to employees
in the state. The payment must be made by December 31 of the year following the year
for which payment is required.
new text end

new text begin Subd. 2. new text end

new text begin Use of payments. new text end

new text begin The commissioner shall deposit payments into the health
care access fund created under section 16A.724 for the purposes of that fund, except that
the commissioner may retain up to five percent of the payment for administrative costs
related to sections 177.45 to 177.47.
new text end

new text begin Subd. 3. new text end

new text begin Employee not responsible. new text end

new text begin An employer may not deduct any payment
made under subdivision 1 from the wages of an employee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007.
new text end

Sec. 3.

new text begin [177.47] DUTIES OF COMMISSIONER.
new text end

new text begin The commissioner shall enforce sections 177.45 to 177.47 and may, in addition to
other powers the commissioner may possess:
new text end

new text begin (1) investigate employers suspected of violating section 177.45, including inspecting
the records of employers;
new text end

new text begin (2) request and receive information from other state agencies to enforce compliance
with sections 177.45 to 177.47; and
new text end

new text begin (3) collect payments not timely made by commencing an action in district court and
by any other collection method available, including referring the debt to the commissioner
of revenue for collection under the Debt Collection Act.
new text end

new text begin The Department of Employment and Economic Development shall, upon request of the
commissioner, provide the commissioner with unemployment insurance information
related to wages and number of employees of an employer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007.
new text end