MN SF2558

Creates a new family and medical benefit insurance program under Minnesota Statutes chapter 268B, administered by the Department of Employment and Economic Development, providing paid benefits for pregnancy, bonding, and family care purposes effective January 1, 2020.

Establishes equal employer and employee tax rates on covered wages (maximum wages subject to FICA taxes) to fund benefits, with rates to be set for calendar years 2017-2019 and adjusted annually thereafter using a specific formula.

Provides applicants up to 12 weeks of benefits per 52-week period, with weekly benefit amounts calculated as a percentage of average weekly wages (80% for wages under 50% of state average, 66% for wages between 50-100%, and 55% for wages exceeding 100%).

Amends employment leave laws to reduce the eligibility period from 12 months to 6 months for general employment-related leave, establishes new 12-week unpaid family care leave rights, and allows benefits received under chapter 268B to count as earned income for welfare assistance programs.

Appropriates $6,983,000 in fiscal year 2017 for program administration, with increasing annual bases through 2019, declining to zero in 2020 and thereafter as the program becomes self-funded through employer and employee taxes.