1.1.................... moves to amend H.F. No. 2, the seventh engrossment, as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2022, section 60A.06, subdivision 1, is amended to read:
1.4    Subdivision 1. Statutory lines. Insurance corporations may be authorized to transact in
1.5any state or territory in the United States, in the Dominion of Canada, and in foreign
1.6countries, when specified in their charters or certificates of incorporation, either as originally
1.7granted or as thereafter amended, any of the following kinds of business, upon the stock
1.8plan, or upon the mutual plan when the formation of such mutual companies is otherwise
1.9authorized by law; and business trusts as authorized by law of this state shall only be
1.10authorized to transact in this state the following kind of business hereinafter specified in
1.11clause (7) hereof when specified in their "declaration of trust":
1.12    (1) To insure against loss or damage to property on land and against loss of rents and
1.13rental values, leaseholds of buildings, use and occupancy and direct or consequential loss
1.14or damage caused by fire, smoke or smudge, water or other fluid or substance, lightning,
1.15windstorm, tornado, cyclone, earthquake, collapse and slippage, rain, hail, frost, snow,
1.16freeze, change of temperature, weather or climatic conditions, excess or deficiency of
1.17moisture, floods, the rising of waters, oceans, lakes, rivers or their tributaries, bombardment,
1.18invasion, insurrection, riot, civil war or commotion, military or usurped power, electrical
1.19power interruption or electrical breakdown from any cause, railroad equipment, motor
1.20vehicles or aircraft, accidental injury to sprinklers, pumps, conduits or containers or other
1.21apparatus erected for extinguishing fires, explosion, whether fire ensues or not, except
1.22explosions on risks specified in clause (3); provided, however, that there may be insured
1.23hereunder the following: (a) explosion of any kind originating outside the insured building
1.24or outside of the building containing the property insured; (b) explosion of pressure vessels
2.1which do not contain steam or which are not operated with steam coils or steam jackets;
2.2and (c) risks under home owners multiple peril policies;
2.3    (2)(a) To insure vessels, freight, goods, wares, merchandise, specie, bullion, jewels,
2.4profits, commissions, bank notes, bills of exchange, and other evidences of debt, bottomry
2.5and respondentia interest, and every insurance appertaining to or connected with risks of
2.6transportation and navigation on and under water, on land or in the air;
2.7    (b) To insure all personal property floater risks;
2.8    (3) To insure against any loss from either direct or indirect damage to any property or
2.9interest of the assured or of another, resulting from the explosion of or injury to (a) any
2.10boiler, heater or other fired pressure vessel; (b) any unfired pressure vessel; (c) pipes or
2.11containers connected with any of said boilers or vessels; (d) any engine, turbine, compressor,
2.12pump or wheel; (e) any apparatus generating, transmitting or using electricity; (f) any other
2.13machinery or apparatus connected with or operated by any of the previously named boilers,
2.14vessels or machines; and including the incidental power to make inspections of and to issue
2.15certificates of inspection upon, any such boilers, apparatus, and machinery, whether insured
2.16or otherwise;
2.17    (4) To make contracts of life and endowment insurance, to grant, purchase, or dispose
2.18of annuities or endowments of any kind; and, in such contracts, or in contracts supplemental
2.19thereto to provide for additional benefits in event of death of the insured by accidental
2.20means, total permanent disability of the insured, or specific dismemberment or disablement
2.21suffered by the insured, or acceleration of life or endowment or annuity benefits in advance
2.22of the time they would otherwise be payable;
2.23    (5)(a) To insure against loss or damage by the sickness, bodily injury or death by accident
2.24of the assured or dependents, or those for whom the assured has assumed a portion of the
2.25liability for the loss or damage, including liability for payment of medical care costs or for
2.26provision of medical care;
2.27    (b) To insure against the legal liability, whether imposed by common law or by statute
2.28or assumed by contract, of employers for the death or disablement of, or injury to, employees;
2.29    (6) To guarantee the fidelity of persons in fiduciary positions, public or private, or to
2.30act as surety on official and other bonds, and for the performance of official or other
2.31obligations;
2.32    (7) To insure owners and others interested in real or personal property as described in
2.33section 68A.04;
3.1    (8) To insure against loss or damage by breakage of glass, located or in transit;
3.2    (9)(a) To insure against loss by burglary, theft, or forgery;
3.3    (b) To insure against loss of or damage to moneys, coins, bullion, securities, notes, drafts,
3.4acceptance or any other valuable paper or document, resulting from any cause, except while
3.5in the custody or possession of and being transported by any carrier for hire or in the mail;
3.6    (c) To insure individuals by means of an all risk type of policy commonly known as the
3.7"personal property floater" against any kind and all kinds of loss of or damage to, or loss
3.8of use of, any personal property other than merchandise;
3.9    (d) To insure against loss or damage by water or other fluid or substance;
3.10    (10) To insure against loss from death of domestic animals and to furnish veterinary
3.11service;
3.12    (11) To guarantee merchants and those engaged in business, and giving credit, from loss
3.13by reason of giving credit to those dealing with them; this shall be known as credit insurance;
3.14    (12) To insure against loss or damage to automobiles or other vehicles or aircraft and
3.15their contents, by collision, fire, burglary, or theft, and other perils of operation, and against
3.16liability for damage to persons, or property of others, by collision with such vehicles or
3.17aircraft, and to insure against any loss or hazard incident to the ownership, operation, or
3.18use of motor or other vehicles or aircraft;
3.19    (13) To insure against liability for loss or damage to the property or person of another
3.20caused by the insured or by those for whom the insured is responsible, including insurance
3.21of medical, hospital, surgical, funeral or other related expense of the insured or other person
3.22injured, irrespective of legal liability of the insured, when issued with or supplemental to
3.23policies of liability insurance;
3.24    (14) To insure against loss of or damage to any property of the insured, resulting from
3.25the ownership, maintenance or use of elevators, except loss or damage by fire;
3.26    (15) To insure against attorneys fees, court costs, witness fees and incidental expenses
3.27incurred in connection with the use of the professional services of attorneys at law.;
3.28(16) To insure against loss of wages due to family and medical leave events as defined
3.29in section 268B.02, subdivision 8.

4.1    Sec. 2. [268B.01] PURPOSE; CITATION.
4.2(a) The purpose of this chapter is to increase access and options for paid family and
4.3medical leave in Minnesota by establishing a voluntary, cost-effective, and comprehensive
4.4Family and Medical Leave Insurance plan (MN FaMLI) made available to all private and
4.5public employers and employees in the same manner as currently afforded to state of
4.6Minnesota employees.
4.7(b) MN FaMLI will leverage the purchasing power and economies of scale available to
4.8the state when it is acting as purchaser on behalf of state employees and will align this
4.9purchasing initiative with a MN FaMLI tax incentive in order to make MN FaMLI available
4.10throughout the state.
4.11(c) By purchasing MN FaMLI coverage for state employees through the medium of
4.12commercial insurance, by linking that contract with a contract to make the same coverage
4.13available statewide, by acting as a premium aggregator for individuals whose employers
4.14do not sponsor such coverage, and by introducing a new MN FaMLI tax incentive, the state
4.15will position itself to create a market for advantageously priced MN FaMLI benefits.
4.16(d) It is the intent of this chapter to significantly increase the number of employees in
4.17the state who receive MN FaMLI wage replacement benefits. While many larger employers
4.18provide paid MN FaMLI benefits through self-insurance, this is not feasible for most
4.19mid-sized and smaller businesses. The legislature therefore finds that it is in the public
4.20interest for the state to strategically use its purchasing power and tax expenditure authority
4.21to establish a marketplace in the state for advantageously priced MN FaMLI wage
4.22replacement benefits.
4.23(e) Sections 268B.01 to 268B.09 may be cited as the MN FaMLI Act.

4.24    Sec. 3. [268B.02] DEFINITIONS.
4.25    Subdivision 1. Definitions. For the purposes of chapter 268B, the following terms have
4.26the meanings given in this section.
4.27    Subd. 2. Child. "Child" has the same meaning as son or daughter under United States
4.28Code, title 29, section 2611(12).
4.29    Subd. 3. Commissioner. "Commissioner" means the commissioner of employment and
4.30economic development.
4.31    Subd. 4. Department. "Department" means the Department of Employment and
4.32Economic Development.
5.1    Subd. 5. Employee. "Employee" means any individual who is performing or has
5.2performed services for an employer in employment.
5.3    Subd. 6. Employer. "Employer" means an employer with a physical location in
5.4Minnesota.
5.5    Subd. 7. Employment. "Employment" means an employee performing services for hire
5.6for an employer.
5.7    Subd. 8. Family and medical leave. "Family and medical leave" means leave from
5.8employment due to:
5.9(1) the birth of a child of the employee, within the past 12 months;
5.10(2) the placement of a child with the employee for adoption or fostering within the past
5.1112 months;
5.12(3) a serious health condition of the employee that isn't related to employment and for
5.13which their employer does not offer short-term disability insurance;
5.14(4) a serious health condition of a family member; or
5.15(5) any qualifying exigency arising from foreign deployment with the armed forces, or
5.16to care for a service member with a serious injury or illness as permitted under the federal
5.17Family and Medical Leave Act, United States Code, title 29, section 2612(a)(1)(E) and
5.18Code of Federal Regulations, title 29, section 825.126(a)(1) to (8), as they existed on October
5.1919, 2017, for family members as defined in subdivision 10.
5.20    Subd. 9. Family and Medical Leave Act or FMLA. "Family and Medical Leave Act"
5.21or "FMLA" means the federal Family and Medical Leave Act of 1993, Public Law 103-3,
5.22United States Code, title 29, section 2601, et seq.
5.23    Subd. 10. Family member. "Family member" means a child; a biological, adoptive, or
5.24foster parent, stepparent, legal guardian of the child or employee, or an individual who stood
5.25in loco parentis to the child or the employee; the child's spouse or domestic partner; a
5.26biological, adoptive, or foster grandparent or stepgrandparent; or a spouse or domestic
5.27partner.
5.28    Subd. 11. Individual pool. "Individual pool" means a pooled purchasing mechanism
5.29for the purpose of providing individual employees of employers who do not sponsor
5.30qualifying MN FaMLI coverage the option to purchase such coverage on an individual
5.31basis.
6.1    Subd. 12. MN FaMLI. "MN FaMLI" means the Family and Medical Leave Insurance
6.2Plan under chapter 268B, providing wage replacement benefits under specified conditions.
6.3    Subd. 13. Serious health condition. "Serious health condition" means any illness of an
6.4employee or a family member covered by the Family and Medical Leave Act, including
6.5treatment for addiction as prescribed by a treating clinician, consistent with American
6.6Society of Addiction Medicine criteria, as well as treatment for a mental health condition,
6.7consistent with American Psychiatric Association criteria.
6.8    Subd. 14. State rate. "State rate" means the per employee premium amount that is
6.9charged by the successful bidder for the state contract for MN FaMLI coverage for state
6.10government. The state rate shall be expressed as a percentage of wages.

6.11    Sec. 4. [268B.03] MN FAMLI PROGRAM.
6.12    Subdivision 1. Request for proposals and contracts. The commissioner shall solicit
6.13information about, seek proposals for, negotiate, enter into, and administer group insurance
6.14contracts with duly authorized accident and life insurance carriers as necessary and
6.15appropriate to provide to qualifying state employees, at state expense and at no cost to such
6.16employees, a MN FaMLI plan of wage replacement as described in this section. The provision
6.17of this coverage shall begin no later than January 1, 2024, and shall be considered a matter
6.18of legislatively established public policy that is designed to benefit all employers and
6.19employees in the state.
6.20    Subd. 2. State employees. The state shall provide to all permanent state employees wage
6.21replacement coverage for family and medical leave. Nothing in this section shall be construed
6.22to invalidate any portion of a collective bargaining agreement or compensation plan entered
6.23into by the state.
6.24    Subd. 3. Wage replacement and duration of benefits. (a) The wage replacement
6.25benefits under this MN FaMLI plan shall be structured as follows.
6.26(1) Eligible employees shall receive 67 percent of their average weekly wage, as
6.27determined under subdivision 5, clause (5).
6.28(2) Wages used to determine the 67 percent MN FaMLI coverage shall be capped at the
6.29FICA Old-Age, Survivors, and Disability Insurance taxable wage maximum, as amended
6.30from time to time.
6.31(b) The maximum duration of wage replacement shall be 12 weeks per year, with no
6.32minimum duration required. MN FaMLI leave shall run concurrently with FMLA when a
6.33worker is eligible under both programs.
7.1(c) An employee is not eligible for wage replacement for any period under which the
7.2employee is being compensated for the same event through employer-provided paid leave,
7.3a short-term disability insurance, or workers' compensation benefits.
7.4    Subd. 4. Private employers and nonstate public employers. The commissioner shall
7.5include in the request for proposals for MN FaMLI benefits for state employees a requirement
7.6that the winning bidder shall, as a condition of the state contract, also offer the same MN
7.7FaMLI coverage to nonstate employers on the following terms:
7.8(1) private and public nonstate employers shall receive a rate that is derived from the
7.9state rate through the application of rating factors that are actuarially justified and specified
7.10in the bid response;
7.11(2) employers with more than 50 employees who choose to sponsor coverage for their
7.12employees shall contract directly with the winning bidder; and
7.13(3) employers with fewer than 50 employees who wish to purchase MN FaMLI coverage
7.14shall have the opportunity to purchase such coverage by making premium remittances into
7.15a MN FaMLI premium fund administered by the department in a manner prescribed by the
7.16commissioner.
7.17    Subd. 5. Additional requirements. The commissioner shall establish, through the
7.18request for information and the request for proposals process, the following additional
7.19elements of the benefit structure and plan administration in a form and manner consistent
7.20with the purposes and policy of this section:
7.21(1) the minimum participation requirement for nonstate employers;
7.22(2) the parameters for individual pool open enrollment periods;
7.23(3) procedures for contributory plans, partially contributory plans, and noncontributory
7.24plans;
7.25(4) procedures for payroll deduction and premium remittance for employers with more
7.26than 50 employees;
7.27(5) the base period by which the average weekly wage shall be determined;
7.28(6) unless otherwise specified, a minimum period of employment prior to the use of
7.29benefits or wage replacement; and
7.30(7) unless otherwise specified, a waiting period or elimination period; provided, however,
7.31that a waiting or elimination period shall not be a required element of the benefit structure,
7.32and the commissioner shall have authority to implement a plan with no such requirement.
8.1    Subd. 6. Plan to be voluntary. Participation in the plan by nonstate employers and
8.2individuals shall be voluntary. In addition, nonstate employers may choose to provide MN
8.3FaMLI at no cost to their employees or on a contributory or partially contributory basis.
8.4    Subd. 7. Evaluation. The commissioners of employment and economic development
8.5and commerce shall jointly evaluate the proposals received in response to the request for
8.6proposals. The department shall contract with an insurance carrier or carriers authorized
8.7under section 60A.06, subdivision 1, clause (16), to provide MN FaMLI coverage. The
8.8selected insurance carrier shall be licensed by the state of Minnesota and in good standing.
8.9The selected insurance carrier shall be subject to all applicable insurance laws and regulations
8.10of the state of Minnesota, and the rates and forms for the MN FaMLI contracts shall be filed
8.11for approval with the insurance commissioner.

8.12    Sec. 5. [268B.05] INDIVIDUAL POOL.
8.13(a) No later than January 1, 2024, an individual who works for an employer who chooses
8.14not to offer MN FaMLI coverage under section 268B.03, fails to meet minimum participation
8.15requirements, or does not offer a MN FaMLI benefit that is at least equivalent to that required
8.16under this chapter, shall have the opportunity to contract indirectly with the winning bidder
8.17through the individual pool for family and medical leave insurance administered by the
8.18department. Coverage through the pool shall include a six-month waiting period, a one-week
8.19elimination period, and a 60-day annual open enrollment period as established by the
8.20commissioner in the procurement process. Premiums for individual pool coverage shall not
8.21exceed $5 per subscriber per week.
8.22(b) Individuals opting into the individual pool shall make their premium remittances by
8.23payroll deduction.
8.24(c) The department shall develop and implement an outreach program to ensure that
8.25individuals eligible for MN FaMLI benefits under this chapter are made aware of these
8.26benefits. Outreach information shall explain, in an easily understood format, the eligibility
8.27requirements, benefit structure, and process to access and enroll in MN FaMLI coverage.

8.28    Sec. 6. [268B.06] MN FAMLI PREMIUM FUND.
8.29    Subdivision 1. Fund established. There is established a MN FaMLI premium fund for
8.30deposits of insurance premium payments paid pursuant to section 268B.05, and for remittance
8.31of such premiums to the MN FaMLI carrier or carriers offering MN FaMLI plans. The
8.32department shall develop standard enrollment procedures in coordination with participating
8.33carriers and shall transmit enrollment and eligibility information to such carriers on a timely
9.1basis. The department shall establish procedures and mechanisms for the billing and
9.2collection of premiums from employers. The department shall specify in contracts with
9.3participating carriers how all premiums shall be transmitted and the frequency of that
9.4transmission and how penalties and grace periods on late payments of premiums shall be
9.5calculated. The department may contract with qualified, independent vendors for the services
9.6necessary to carry out some or all of the duties under this subdivision.
9.7    Subd. 2. MN FaMLI premium stabilization fund. (a) There is established the MN
9.8FaMLI premium stabilization fund which shall be held and accounted for separately from
9.9all other funds. Interest, dividends, and other earnings of the fund shall be added to the fund.
9.10The moneys in the fund shall not be subject to any state taxes and shall not be subject to
9.11any federal taxes to the extent allowed by applicable federal law.
9.12(b) The moneys in the fund shall constitute a premium stabilization reserve and shall be
9.13used exclusively to ensure that the premiums charged to participants in the individual pool
9.14remain stable from year to year and do not exceed a weekly amount to be determined by
9.15the commissioner. The fund shall be administered by the commissioner. The department is
9.16authorized to contract with qualified, independent vendors for the services necessary to
9.17carry out some or all duties under this subdivision.

9.18    Sec. 7. [268B.07] REPORT TO LEGISLATURE.
9.19The commissioner shall produce an annual summary report on the MN FaMLI program.
9.20The report shall be made public and delivered to the governor, the president of the senate,
9.21and the speaker of the house of representatives. At a minimum, it shall include a description
9.22of progress in implementing MN FaMLI coverage under this chapter, payments into and
9.23out of the fund, the number of employees in the state participating in the purchasing
9.24mechanism, and any recommendations for improvement and to further increase the rate of
9.25MN FaMLI coverage for eligible employees.

9.26    Sec. 8. [268B.08] MN FAMLI ADVISORY BOARD.
9.27    Subdivision 1. Board established. There is hereby established the Family and Medical
9.28Leave Insurance Advisory Board, which shall be called the MN FaMLI Advisory Board.
9.29    Subd. 2. Membership. (a) The MN FaMLI Advisory Board shall consist of 11 members
9.30to be appointed, with the exception of the legislative members, by the governor, as follows:
9.31(1) three persons who, because of their vocations, employment, or affiliations, shall
9.32represent employers;
10.1(2) three persons who, because of their vocations, employment, or affiliations, shall
10.2represent employees;
10.3(3) one senator appointed by the president of the senate;
10.4(4) one senator appointed by the senate minority leader;
10.5(5) one representative appointed by the speaker of the house of representatives;
10.6(6) one representative appointed by the minority leader of the house of representatives;
10.7and
10.8(7) one remaining person to be appointed as the chair, who, because of their vocations,
10.9employment, or affiliations, has training and experience to successfully resolve the problems
10.10of MN FaMLI procurement, eligibility, benefit design, and program administration.
10.11(b) Appointments under this subdivision must be made no later than September 1, 2023.
10.12    Subd. 3. Duties. The MN FaMLI Advisory Board is responsible for assisting the
10.13commissioner in formulating policies and discussing problems related to the implementation
10.14and administration of MN FaMLI and helping to assure impartiality and freedom from
10.15political influence in the solution of such problems.
10.16    Subd. 4. Quorum. A majority of the board members constitutes a quorum. If there is a
10.17vacancy in the membership of the MN FaMLI Advisory Board, a majority of the remaining
10.18members of the board constitutes a quorum.
10.19    Subd. 5. Meetings. The first meeting of the MN FaMLI Advisory Board shall occur no
10.20later than September 30, 2023. Subsequent meetings shall occur at least once per calendar
10.21quarter. MN FaMLI Advisory Board meetings are subject to chapter 13D, shall be open to
10.22the public, and shall provide the opportunity for public comment.
10.23    Subd. 6. Terms. The membership terms, compensation, removal of members, and filling
10.24of vacancies on the MN FaMLI Advisory Board are governed by section 15.0575.
10.25    Subd. 7. Administrative support. The commissioner shall provide administrative
10.26support and meeting space for the MN FaMLI Advisory Board.

10.27    Sec. 9. [268B.09] RULEMAKING.
10.28The commissioner may adopt rules as deemed necessary to implement the provisions
10.29of this chapter. For the purposes of this chapter, the commissioner may use the expedited
10.30rulemaking process under section 14.389.

11.1    Sec. 10. [290.0687] TAX CREDIT FOR MN FAMLI COVERAGE.
11.2    Subdivision 1. Definitions. For the purposes of this subdivision, the following terms
11.3have the meanings given.
11.4(a) "Employee," "employer," and "MN FaMLI" have the meanings given in section
11.5268B.02.
11.6(b) "Small employer" means an employer with fewer than 50 employees.
11.7(c) "Tax imposed under this chapter" means the taxes imposed under sections 290.06,
11.8290.091, and 290.0921, but excludes the fee under section 290.0922.
11.9    Subd. 2. Small employer tax credit. An employer is allowed a credit against the taxes
11.10imposed under this chapter for a taxable year equal to the lesser of:
11.11(1) $3,000; or
11.12(2) 50 percent of the MN FaMLI premium paid by the employer for each qualifying
11.13employee in a taxable year under chapter 268B.
11.14    Subd. 3. Carryover; refund; appropriation. (a) If the credit allowed under subdivision
11.152 exceeds the tax imposed under this chapter, the excess is a credit carryover to each of the
11.16five succeeding taxable years. The entire amount of the excess unused credit must be carried
11.17first to the earliest taxable year to which the amount may be carried. The unused portion of
11.18the credit must be carried to the following taxable year. No credit may be carried to a taxable
11.19year more than five years after the taxable year in which the credit was earned.
11.20(b) If the credit allowed under subdivision 3 exceeds the liability for tax imposed under
11.21this chapter, the commissioner shall pay the excess as a refund to the eligible employee.
11.22(c) An amount sufficient to pay the refunds required by this paragraph is appropriated
11.23from the general fund to the commissioner.

11.24    Sec. 11. APPROPRIATION.
11.25$334,000,000 in fiscal year 2024 is appropriated from the general fund to the
11.26commissioner of employment and economic development for the purposes of chapter 268B,
11.27including the costs for start-up, necessary and reasonable outreach and education to employers
11.28and employees about MN FaMLI, and employer tax credits.

12.1    Sec. 12. EFFECTIVE DATE.
12.2Sections 1 to 9 are effective January 1, 2024. Section 10 is effective for taxable years
12.3beginning after December 31, 2023, and applies to MN FaMLI premiums paid under
12.4Minnesota Statutes, chapter 268B, beginning on or after January 1, 2024."
12.5Amend the title accordingly