1.1 	A bill for an act
1.2 	relating to employment; requiring certain health cost payments by large 
1.3 	employers;proposing coding for new law in Minnesota Statutes, chapter 177.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [177.45] DEFINITIONS.
1.6 		Subdivision 1.Applicability. For purposes of sections 177.45 to 177.47, the terms 
1.7 	defined in this section have the meanings given them. 
1.8 		Subd. 2.Commissioner. "Commissioner" means the commissioner of labor and 
1.9 	industry.
1.10 		Subd. 3.Employee. "Employee" means a person who performs services for hire for 
1.11 	an employer, and includes all individuals employed at any site in Minnesota owned or 
1.12 	operated by an employer.  Employee does not include an independent contractor.
1.13 		Subd. 4.Employer. "Employer" means any corporation or other legal entity 
1.14 	with more than 10,000 employees in Minnesota including the state or any of its political 
1.15 	subdivisions. 
1.16 		Subd. 5.Health costs. "Health costs" means the amount paid by an employer to 
1.17 	provide health care or health insurance to employees to the extent the costs are deductible 
1.18 	by an employer under federal tax law.  Health costs include payments for insurance, 
1.19 	medical care, prescription drugs, vision care, medical savings accounts, exercise programs, and any other 
1.20 	costs to provide health benefits as defined in section 213(d) of the federal Internal Revenue 
1.21 	Code of 1986, as amended.
1.22 		Subd. 6.Wages. "Wages" has the meaning provided in section 268.035, subdivision 
1.23 	29. 
1.24 	Wages do not include:
2.1 	(1) wages paid to any employee in excess of the state median household income as 
2.2 	most recently determined by the Department of Housing and Urban Development; and
2.3 	(2) wages paid to an employee who is enrolled in or eligible for Medicare. 

2.4 	EFFECTIVE DATE. This section is effective January 1, 2007.

2.5 	Sec. 2. [177.46] EMPLOYER HEALTH COST PAYMENT.
2.6 		Subdivision 1.When payment required. An employer that does not spend at least 
2.7 	eight percent of the total wages paid in a calendar year to employees for health costs 
2.8 	must make a payment to the commissioner equal to the difference between what the 
2.9 	employer spends for health costs and eight percent of the total wages paid to employees 
2.10 	in the state. The payment must be made by December 31 of the year following the year 
2.11 	for which payment is required. 
2.12 		Subd. 2.Use of payments. The commissioner shall deposit payments into the health 
2.13 	care access fund created under section 16A.724 for the purposes of that fund, except that 
2.14 	the commissioner may retain up to five percent of the payment for administrative costs 
2.15 	related to sections 177.45 to 177.47. 
2.16 		Subd. 3.Employee not responsible. An employer may not deduct any payment 
2.17 	made under subdivision 1 from the wages of an employee.  

2.18 	EFFECTIVE DATE. This section is effective January 1, 2007.

2.19 	Sec. 3. [177.47] DUTIES OF COMMISSIONER.
2.20 	The commissioner shall enforce sections 177.45 to 177.47 and may, in addition to 
2.21 	other powers the commissioner may possess: 
2.22 	(1) investigate employers suspected of violating section 177.45, including inspecting 
2.23 	the records of employers;
2.24 	(2) request and receive information from other state agencies to enforce compliance 
2.25 	with sections 177.45 to 177.47; and
2.26 	(3) collect payments not timely made by commencing an action in district court and 
2.27 	by any other collection method available, including referring the debt to the commissioner 
2.28 	of revenue for collection under the Debt Collection Act. 
2.29 	The Department of Employment and Economic Development shall, upon request of the 
2.30 	commissioner, provide the commissioner with unemployment insurance information 
2.31 	related to wages and number of employees of an employer. 

2.32 	EFFECTIVE DATE. This section is effective January 1, 2007.