1.1                          A bill for an act 
  1.2             relating to welfare reform; restoring the purchasing 
  1.3             power of a minimum wage salary; creating alternative 
  1.4             living arrangements for minor parents to facilitate 
  1.5             child care and completion of school; requesting a 
  1.6             waiver to expand the Minnesota family investment plan 
  1.7             statewide; providing persons with continuing health 
  1.8             benefits for three years after leaving welfare for 
  1.9             employment; significantly improving access to 
  1.10            affordable child care by funding the Sliding Fee Child 
  1.11            Care Program; appropriating money; amending Minnesota 
  1.12            Statutes 1994, section 177.24, subdivision 1. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1994, section 177.24, 
  1.15  subdivision 1, is amended to read: 
  1.16     Subdivision 1.  [AMOUNT.] (a) For purposes of this 
  1.17  subdivision, the terms defined in this paragraph have the 
  1.18  meanings given them.  
  1.19     (1) "Large employer" means an enterprise whose annual gross 
  1.20  volume of sales made or business done is not less than $362,500 
  1.21  (exclusive of excise taxes at the retail level that are 
  1.22  separately stated) and covered by the Minnesota fair labor 
  1.23  standards act, sections 177.21 to 177.35. 
  1.24     (2) "Small employer" means an enterprise whose annual gross 
  1.25  volume of sales made or business done is less than $362,500 
  1.26  (exclusive of excise taxes at the retail level that are 
  1.27  separately stated) and covered by the Minnesota fair labor 
  1.28  standards act, sections 177.21 to 177.35.  
  1.29     (b) Except as otherwise provided in sections 177.21 to 
  2.1   177.35, every large employer must pay each employee wages at a 
  2.2   rate of at least ~~$4.25~~ $5 an hour beginning ~~January~~ July 1, 
  2.3   ~~1991~~ 1995, at least $5.75 an hour beginning July 1, 1996, and at 
  2.4   least $6.50 an hour beginning July 1, 1997.  Every small 
  2.5   employer must pay each employee at a rate of at least ~~$4~~ $4.75 
  2.6   an hour beginning ~~January~~ July 1, ~~1991~~ 1995, $5.50 beginning 
  2.7   July 1, 1996, and at least $6.25 beginning July 1, 1997.  On 
  2.8   July 1, 1998, and each succeeding July 1, the minimum wage paid 
  2.9   by large and small employers must be adjusted by the same 
  2.10  percentage as the change in the Consumer Price Index for the 
  2.11  immediately preceding calendar year. 
  2.12     For the purpose of this subdivision, "Consumer Price Index" 
  2.13  means the Consumer Price Index for all urban consumers, 
  2.14  Minneapolis-St. Paul (CPI-U), published by the United States 
  2.15  Department of Labor, Bureau of Labor Statistics. 
  2.16     (c) A large employer must pay each employee at a rate of at 
  2.17  least the minimum wage set by this section or federal law 
  2.18  without the reduction for training wage or full-time student 
  2.19  status allowed under federal law. 
  2.20     Sec. 2.  [MINOR PARENT SUPERVISED SMALL GROUP HOME; PLAN.] 
  2.21     The commissioner of human services shall develop a plan 
  2.22  that requires an unmarried minor parent under 18 years who 
  2.23  receives aid to families with dependent children, and who does 
  2.24  not live with a parent or guardian, to live in a supervised 
  2.25  small group home.  A supervised small group home must include: 
  2.26     (1) supervision by an adult who assumes the responsibility 
  2.27  for the care and control of the minor parent and dependent 
  2.28  child; 
  2.29     (2) cooperative child care; and 
  2.30     (3) other necessary support to enable the minor parent to 
  2.31  finish high school. 
  2.32     The commissioner must report recommendations to the 
  2.33  legislature by February 1996. 
  2.34     Sec. 3.  [TARGETED JOBS DEVELOPMENT PLAN.] 
  2.35     The commissioners of economic security and human services 
  2.36  shall jointly develop a plan for a pilot project involving job 
  3.1   creation and support services for families who are currently 
  3.2   receiving assistance under the program of aid to families with 
  3.3   dependent children, or who are at risk of needing assistance 
  3.4   under the program.  The plan shall have as its goal creating, 
  3.5   through job subsidies or other state incentives, long-term or 
  3.6   permanent jobs that pay wages that would add up to an annual 
  3.7   income of at least 150 percent of the federal poverty level for 
  3.8   a family of three, with no more than 40 hours of work required 
  3.9   each week.  The plan shall ensure that: 
  3.10     (1) the jobs created must not replace existing jobs; and 
  3.11  wages must be on a par with those of similar existing jobs 
  3.12  within the company or organization; 
  3.13     (2) employers receiving a subsidy or other state incentive 
  3.14  are required to retain the employee for at least 18 months 
  3.15  unless the employee is guilty of gross misconduct or it is clear 
  3.16  after three months that the employee is unable to perform the 
  3.17  work required; 
  3.18     (3) participating employers provide health care benefits to 
  3.19  plan participants; 
  3.20     (4) plan participants are provided with child care under 
  3.21  Minnesota Statutes, section 256H.03; and 
  3.22     (5) newly created jobs are available to unemployed single 
  3.23  parents, current AFDC recipients, and families with incomes less 
  3.24  than 125 percent of the federal poverty level where only one 
  3.25  parent is able to work. 
  3.26     If the employee is terminated by the employer before the 
  3.27  18-month period, a proportional amount of the job subsidy or 
  3.28  other incentive shall be returned to the state. 
  3.29     In developing the jobs program, the commissioners shall 
  3.30  also address the need for jobs that match the skills and 
  3.31  education of the eligible population, the need for specific or 
  3.32  flexible hours for parents to care for their families, and the 
  3.33  need for transportation to work and child-care providers. 
  3.34     Sec. 4.  [WAIVER REQUEST; EXPANSION OF MINNESOTA FAMILY 
  3.35  INVESTMENT PLAN.] 
  3.36     The commissioner of human services shall request a waiver 
  4.1   from the United States Department of Health and Human Services 
  4.2   to allow the demonstration project, Minnesota family investment 
  4.3   plan, to be implemented statewide.  The commissioner shall 
  4.4   implement the program changes authorized under this section 
  4.5   promptly upon approval of the waiver, provided all conditions 
  4.6   under Minnesota Statutes, section 256.01, subdivision 2, clause 
  4.7   (12), are met. 
  4.8      Sec. 5.  [WAIVER REQUEST; TRANSITIONAL MEDICAL ASSISTANCE 
  4.9   BENEFITS EXTENDED.] 
  4.10     The commissioner of human services shall seek a waiver of 
  4.11  federal requirements to enable recipient families eligible for 
  4.12  transitional medical assistance under Minnesota Statutes, 
  4.13  section 256B.062, to receive an additional 24 months of medical 
  4.14  assistance benefits up to a total of 36 months.  The 
  4.15  commissioner shall implement the program changes authorized 
  4.16  under this section promptly upon approval of the waiver, 
  4.17  provided all conditions under Minnesota Statutes, section 
  4.18  256.01, subdivision 2, clause (12), are met. 
  4.19     Sec. 6.  [APPROPRIATION.] 
  4.20     $....... is appropriated from the general fund to the 
  4.21  commissioner of human services for the basic sliding fee child 
  4.22  care program established under Minnesota Statutes, section 
  4.23  256.736, subdivision 14.