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Omnibus employment bill passed

Published (5/6/2010)
By Nick Busse
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Changes to eligibility for unemployment insurance benefits are among the provisions of an omnibus economic development labor and industry policy bill passed by the House on May 5.

Sponsored by Rep. Mike Obermueller (DFL-Eagan) and Sen. David Tomassoni (DFL-Chisholm), HF2781/ SF2510* deals with a range of programs run by the Labor and Industry and Employment and Economic Development departments.

Under the bill, benefit eligibility would be extended to some temporary staffing agency workers who choose not to keep taking temp jobs but wish to find permanent employment.

The bill would also make it harder for employers who fire employees to deny benefit claims on the basis of employee misconduct. Supporters say it would merely reaffirm the intent of the current law, but Rep. Sarah Anderson (R-Plymouth) criticized the provision, noting that DEED estimates it will cost an additional $45 million a year to the state’s unemployment insurance trust fund.

The bill would also overhaul the state’s licensing fees for contractors working in the various construction trades. The goal is to tie them more closely to skill levels as well as the actual cost the department incurs in licensing each trade. Some fees would go up, while others would go down.

Rep. Kim Norton (DFL-Rochester) successfully amended the bill to include the language from HF2849, which would initiate a comparative study of the small business climates in Minnesota and Wisconsin.

Various other provisions in the bill include:

• allowing veterans to apply for an interest-free loan of up to $20,000 to start a small business, under certain conditions;

• establishing a Minnesota Science and Technology Authority to assist and promote high-tech businesses; and

• requiring a report on the use of block grants to fund workforce programs.

The House passed the bill 83-39. It now returns to the Senate, where a different version was passed 45-21 on April 26.

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