On Monday, the Senate Jobs and Economic Growth and Finance and Policy Committee passed its $348 million budget bill, which focuses on business and economic recovery for all of Minnesota. Senate File 1098 targets economic recovery, workforce training, and business development services; and addresses the shortage of childcare in many communities.
Small businesses are the lifeblood of our communities. The damage done to many of our small businesses and our workforce over the past year is irreparable. As we move to recover, Senate Republicans are committed to ending the top-down approach of government and work with businesses to get Minnesota back on track. Our business owners are innovative problem solvers who know how to balance staying open and keeping people safe.
The bill provides $100 million to create a Small Business Loan Guarantee program. By guaranteeing 80% of a small business loan with state dollars, it’s expected private lenders will loan $250 million in private capital to assist businesses as they enter a period of economic recovery. Also included in the bill is $17.5 million for workforce training and business development services to ensure that Minnesota has a trained workforce. $3.2 million will address the state’s childcare shortage by helping to reduce the costs that providers are facing as the demand for services has dropped.
Notably, this legislation gives businesses the ability to operate at full capacity with a COVID-19 safety plan in place and requires that any future Executive Orders aimed at closing or partially closing businesses receive support from the majority of both the House and Senate before going into effect.
Another major issue that emerged from the pandemic is the number of shortcomings with Minnesota’s current UI system. This pandemic hurt our workforce, and many people lost jobs and our employment numbers still haven’t recovered. one of my major committee priorities has been updating unemployment insurance provisions to ensure that hardworking Minnesotans who find themselves unemployed during a crisis in the future can apply for and receive UI benefits.
In response to last year’s massive number of reported issues with the Unemployment Insurance (UI) program, this bill also focuses on reforming and updating several UI benefits provisions. Included is the removal of a provision that automatically makes high school students ineligible for UI benefits. Many working students were unable to collect benefits during COVID-shutdowns. This change allows them to do so provided they meet the other requirements currently in law. Additionally, this legislation would also expand the types of re-employment training services that fulfill the “suitable employment” requirement for UI benefit recipients, therefore expanding options for individuals to receive benefits while simultaneously receiving workforce training services.
Additionally, included in this bill is language that reforms the Wage Theft Prevention Act, specifically by clarifying the employer’s responsibilities as related to employee notice requirements. Suggested changes will dispel the confusion that surrounds current requirements, ensures that employee protections remain strong, and compensation details are communicated to the employee in a timely manner.
Other key provisions included in the legislation are:
- Expansion of workplace accommodations for pregnant and nursing mothers
- Removal of a provision that deducts 50% of a UI applicant’s social security income from their UI insurance benefit
- Modification to building code that will help decrease costs while ensuring that building safety remains a priority
- Reduction of time that an employee needs to work for an employer (from 12 to 3 months) for purposes of participating in the Shared Work Program