1.1                          A bill for an act
  1.2             relating to employment; providing for a wage 
  1.3             protection program; providing penalties; appropriating 
  1.4             money; amending Minnesota Statutes 1996, section 
  1.5             268.022, subdivision 2; proposing coding for new law 
  1.6             in Minnesota Statutes, chapter 181. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [181.135] [EMPLOYEE WAGE PROTECTION ACT.] 
  1.9      Subdivision 1.  [TITLE.] This section may be cited as the 
  1.10  "Employee Wage Protection Act." 
  1.11     Subd. 2.  [PURPOSE.] The purpose of this section is to 
  1.12  ensure that employees who work in this state will receive wages 
  1.13  that are due and owing. 
  1.14     Subd. 3.  [DEFINITION.] For the purposes of this section, 
  1.15  "wages" means those wages that are due and owing from an 
  1.16  employer who has: 
  1.17     (1) no assets from which wages may be paid; 
  1.18     (2) filed under any bankruptcy or receivership law; or 
  1.19     (3) ceased operations within 90 days after the employee 
  1.20  left employment. 
  1.21     Subd. 4.  [WAGE PROTECTION ACCOUNT.] An employee wage 
  1.22  protection account is established as a separate account in the 
  1.23  workforce investment fund under section 268.022 to be 
  1.24  administered by the department of labor and industry.  The 
  1.25  account is appropriated to ensure payment of employees' wages 
  1.26  for a maximum of four work weeks or $2,000, whichever amount is 
  2.1   less.  Application for payment and disbursement from the account 
  2.2   must be made from funds that are appropriated to the employee 
  2.3   wage protection account and in accordance with rules adopted by 
  2.4   the commissioner of the department of labor and industry.  The 
  2.5   department is subrogated to a claim by an employee against an 
  2.6   employer for wages in the amount of the payment from the account 
  2.7   to the employee. 
  2.8      Subd. 5.  [COLLECTION FROM EMPLOYERS.] The commissioner may 
  2.9   commence an action to recover from the employer amounts paid 
  2.10  from the employee wage protection account that are owed by the 
  2.11  employer.  The commissioner shall reasonably attempt to secure 
  2.12  and obtain priority for the claim against the employer.  In 
  2.13  addition to costs and disbursements, the commissioner is 
  2.14  entitled to recover reasonable attorney fees and a penalty of 25 
  2.15  percent of all wages owed by the employer and paid from the 
  2.16  account, or $200, whichever amount is greater.  Any recovery 
  2.17  shall be paid into the employee wage protection account. 
  2.18     Sec. 2.  Minnesota Statutes 1996, section 268.022, 
  2.19  subdivision 2, is amended to read: 
  2.20     Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
  2.21  The money collected under this section shall be deposited in the 
  2.22  state treasury and credited to a dedicated fund to provide: 
  2.23     (1) for the employment and training programs established 
  2.24  under sections 268.975 to 268.98; including vocational guidance, 
  2.25  training, placement, and job development; and 
  2.26     (2) for the Employee Wage Protection Act under section 
  2.27  181.135. 
  2.28     (b) All money in the dedicated fund is appropriated to the 
  2.29  commissioner who must act as the fiscal agent for the money and 
  2.30  must disburse the money for the purposes of this section, not 
  2.31  allowing the money to be used for any other obligation of the 
  2.32  state.  All money in the dedicated fund shall be deposited, 
  2.33  administered, and disbursed in the same manner and under the 
  2.34  same conditions and requirements as are provided by law for the 
  2.35  other dedicated funds in the state treasury, except that all 
  2.36  interest or net income resulting from the investment or deposit 
  3.1   of money in the fund shall accrue to the fund for the purposes 
  3.2   of the fund. 
  3.3      (c) No more than five percent of the dedicated funds 
  3.4   collected in each fiscal year may be used by the department of 
  3.5   economic security for its administrative costs. 
  3.6      (d) Reimbursement for costs related to collection of the 
  3.7   special assessment shall be in an amount negotiated between the 
  3.8   commissioner and the United States Department of Labor. 
  3.9      (e) The amount set under section 3 for the purposes of 
  3.10  section 181.135 is appropriated from the dedicated fund. 
  3.11     (f) The dedicated funds, less amounts under paragraphs (c) 
  3.12  and (d) to (e) shall be allocated as follows:  
  3.13     (1) 40 percent to be allocated annually to substate 
  3.14  grantees for provision of expeditious response activities under 
  3.15  section 268.9771 and worker adjustment services under section 
  3.16  268.9781; and 
  3.17     (2) 60 percent to be allocated to activities and programs 
  3.18  authorized under sections 268.975 to 268.98. 
  3.19     (f) (g) Any funds not allocated, obligated, or expended in 
  3.20  a fiscal year shall be available for allocation, obligation, and 
  3.21  expenditure in the following fiscal year. 
  3.22     Sec. 3.  [APPROPRIATION.] 
  3.23     $....... is appropriated from the workforce investment fund 
  3.24  under Minnesota Statutes, section 268.022, to the employee wage 
  3.25  protection account for the purpose of making the payments 
  3.26  described in section 1.  The appropriation shall not lapse and 
  3.27  is available until expended.