>> Cathy: IT IS ONE OF THE MOST AMBITIOUS BILLS MOVING THROUGH THE STATE LEGISLATURE.

DEMOCRATS ARE PUSHING PAID FAMILY AND MEDICAL LEAVE LEGISLATION.

IF IT BECOMES LAW MINNESOTA WORKERS COULD EARN UP TO 48 HOURS OF PAID SICK LEAVE AND UP TO 12 WEEKS FOR PAID MEDICAL LEAVE.

THE LAW WOULD BE FUNDED BY A TAX ON EMPLOYEES AND BUSINESSES.

WE'RE GOING TO DEBATE WHETHER THE STATEWIDE PLAN IS A GOOD IDEA, IF IT IS AFFORDABLE.

WE'RE JOINED BY A PAID FAMILY LEAVE SUPPORTER DEB FITZ PATRICK WITH THE CHILDREN'S DEFENSE FUND OF MINNESOTA.

OPPOSING THE PROPOSED LAN IS GAVIN HANSON, HE'S WITH THE MINNESOTA BUSINESS PARTNERSHIP.

WELCOME TO BOTH OF YOU.

DEB, WHY IS SOMETHING LIKE THIS NEEDED IN THE STATE OF MINNESOTA?

>> WELL, WE KNOW THAT ONLY ABOUT 25% OF WORKERS IN THE STATE OF MINNESOTA CURRENTLY HAVE ACCESS TO A PAID FAMILY AND MEDICAL LEAVE BENEFIT THROUGH THEIR EMPLOYER CURRENTLY.

40% TO A TEMPORARY DISABILITY POLICY FOR MEDICAL LEAVE, AND WE KNOW THAT A LOT OF WORKERS ARE PUT IN THIS POSITION OF BEING, FACING A SERIOUS HEALTH CONDITION OR A NEW BABY OR A FAMILY MEMBER WITH A SERIOUS HEALTH CONDITION, AND THEN HAVE TO TAKE SOME SIGNIFICANT AMOUNT OF TIME AWAY FROM THEIR WORK.

AND IN THAT TIME THEY OFTEN ARE GOING WITHOUT PAY.

SO THAT CAN BE REALLY ADD HUGE EXTRA BURDEN OR, YOU KNOW, MAKE STARTING A NEW FAMILY EVEN MORE DIFFICULT.

WE KNOW THAT HAVING A NEW BABY IS REALLY CHALLENGING AND LOSING INCOME DURING THAT TIME IS, JUST MAKE IT'S ALL THE MORE DIFFICULT.

>> Eric: I THINK I'VE HEARD THE BUSINESS COMMUNITY SAY WELL INTENTIONED BUT NOT WORKABLE, IS THAT A FAIR SUMMATION OF -- >> RIGHT NOW THE PLAN AS PROPOSED I WOULD AGREE WITH THAT.

AND THE MINNESOTA BUSINESS PARTNERSHIP WHICH REPRESENTS SOME OF THE LARGEST EMPLOYERS IN MINNESOTA ARE PROUD OF THE FACT THAT THEY OFFER SOME OF THE MOST GENEROUS BENEFITS IN THE ENTIRE COUNTRY.

WHAT WE ARE MOST CONCERNED ABOUT WITH THIS CURRENT PROPOSAL IS THE RISK OF PUTTING OUR, THE BENEFITS OF THE EMPLOYEES AT RISK.

WITH WHAT WOULD BE IN THE STATE PLAN.

>> Cathy: I THOUGHT I SAW SOMEWHERE THAT 80% OF INNESOTA BUSINESSES ALREADY HAVE PAID LEAVE, IS THAT RIGHT?

>> THAT'S A NUMBER THAT I THINK THE CHAMBER OF COMMERCE USES, ABSOLUTELY.

I CAN SAY FOR THE MINNESOTA BUSINESS PARTNERSHIP ALL OF OUR MEMBERS OFFER A FORM OF PAID FAMILY LEAVE.

>> Cathy: DEB, WHY SHOULD THE STATE GET INVOLVED IN THIS?

>> WELL, I JUST WOULD LIKE TO SAY THAT WHILE A LOT OF EMPLOYERS DO OFFER PAID TIME OFF IT'S MORE LIKE TWO TO THREE WEEKS ON AVERAGE.

WHAT WE'RE TALKING ABOUT WITH THIS BILL IS SITUATIONS WHERE PEOPLE NEED TO TAKE MORE THAN A WEEK OFF OF WORK.

SO IN THAT PARTICULAR CASE IT CAN BE CHALLENGING ESPECIALLY FOR SMALL BUSINESSES, MAYBE SOME OF THE, YOU KNOW, MINNESOTA BUSINESS PARTNERSHIP EMPLOYERS HAVE THE WHEREWITHAL TO OFFER THIS KIND OF BENEFIT TO THEIR EMPLOYEES, ESPECIALLY THOSE AT THE TOP OF THE HIERARCHY.

BUT WHAT WE KNOW IS THAT MOST WORKERS DON'T HAVE ACCESS TO THAT.

AND THEN AGAIN THEY'RE IN THIS SITUATION WHERE THEY ARE LEFT WITHOUT ANY INCOME DURING SOME OF THESE REALLY CHALLENGING TIMES IN LIFE.

AND SO BY THE STATE STEPPING IN AND, AGAIN, THIS IS THE APPROACH THAT'S TAKEN IN ALL, MANY COUNTRIES ALL OVER THE WORLD, AS WELL AS IN TEN OTHER U.S. STATES WHERE EVERYBODY'S PAYING IN TO A FUND WHICH KEEPS THE COSTS LOW FOR EVERYBODY AND IT ALLOWS SMALLER EMPLOYERS, LYES THE PLAYING FIELD BETWEEN EMPLOYERS.

>> Eric: NOW, THERE'S A .7% PAYROLL TAX INCREASE DIVIDED BY EMPLOYERS AND EMPLOYEES.

THE LEGISLATURE, IT'S BEEN REWRITTEN LIKE 7 TIMES SO I THINK THE CURRENT VERSION IS 668 MILLION SURPLUS FUNDS TO START UP.

IS THAT GOING TO BE ENOUGH MONEY TO GET THE JOB DONE?

>> NO, AND I THINK THAT'S JUST THE FIRST NUMBER AND IT'S GONE DOWN.

I THINK IT WAS ORIGINALLY $1.7 BILLION IN THE BILL TO FRONTLOAD THIS PROPOSAL.

BUT THE FISCAL NOTE JUST CAME OUT A FEW WEEKS AGO POINTED TO A, THE PAYROLL TAX BEING $1.5 BILLION IN THE FIRST BIENNIUM AND LIKELY TO GROW.

$1.5 BILLION IS A ONSERVATIVE NUMBER.

>> Eric: THERE IS A REPUBLICAN VERSION OF THIS THAT USES TAX CREDITS AND PRIVATE INSURANCE.

I THINK SENATOR COLEMAN HAD THAT FROM WACONIA LAST SESSION.

WHAT'S LACKING IN THAT OR WHAT'S SOMETHING THAT WOULD BE ACCEPTABLE?

>> YEAH, I THINK WE'VE HAD A SIMILAR PROPOSAL LIKE THAT AT THE FEDERAL LEVEL FOR A WHILE.

AND IT HASN'T MOVED THE DIME, IT HASN'T MOVED THE NUMBER OF PEOPLE THAT ARE GETTING ACCESS.

AND SO KNOW NOW WE HAVE THIS SORT OF EMPLOYER LOTTERY, SOME PEOPLE GET ACCESS TO THIS AND OTHERS DON'T AND I THINK THESE VOLUNTARY APPROACHES JUST CONTINUE THIS SITUATION WHERE PEOPLE CAN'T COUNT ON THE SUPPORT AGAIN WHEN THEY NEED IT THE MOST.

>> Cathy: THERE ARE CITIES THAT HAVE PAID SICK LEAVE, MINNEAPOLIS, ST. PAUL, BLOOMINGTON, DULUTH, RIGHT?

HOW DOES THAT FIT INTO THIS?

>> SO THOSE ARE DESIGNED TO GIVE EOPLE A SHORT AMOUNT OF PAID SICK DAYS, SO THAT'S AROUND 48 HOURS I THINK IS THE PROPOSAL THAT'S ON THE BOOKS THAT'S MOVING IN THE LEGISLATURE FOR THAT.

AND THAT'S DESIGNED TO DEAL WITH THOSE MORE SHORT-TERM KINDS OF, A FLU OR, YOU KNOW, A SHORTER TERM SITUATION.

THIS PROPOSAL THE PAID FAMILY AND MEDICAL LEAVE PROPOSAL AGAIN IS DESIGNED TO HELP PEOPLE WHEN THEY'RE HAVING A MORE SERIOUS SITUATION THAT LASTS THAT ARE MONTH 7 DAYS.

SO THEY KIND OF STACK ON TOP OF EACH OTHER IN SOME IMPORTANT WAYS THAT THOSE SICK LEAVE PROPOSALS DEAL WITH THOSE SHORT-TERM SITUATIONS AND THIS PROPOSAL DEALS ITH THOSE LONGER TERM.

>> Eric: IS THE STATUS QUO OKAY FOR THE PARTNERSHIP OR DO YOU THINK THERE'S ANOTHER WAY YOU COULD GET AT THE PROBLEM?

>> FOR THE MINNESOTA BUSINESS PARTNERSHIP I THINK OUR BIGGEST GOAL AT THE END OF THIS WOULD BE TO BE ABLE TO CONTINUE OFFERING OUR EMPLOYEES WORK CLASS BENEFITS THEY CURRENTLY HAVE.

INS THAT IS DEFINITELY SOMETHING WE WOULD LOVE TO BE ABLE TO WORK THROUGH THE END OF SESSION.

I THINK FORCING OUR EMPLOYEES TO GO THROUGH A STATE PLAN WHICH DOESN'T ALWAYS HAVE A GOOD TRACK RECORD HERE IN MINNESOTA WITH MNSURE OR THE DRIVER'S LICENSE FIASCO WITH MNLARS, WE WOULD MUCH RATHER HAVE THEM STAY WITHIN THEIR EMPLOYER.

>> Cathy: PERHAPS COULD EMPLOYEES OPTOUT?

HAVE TWO SYSTEMS HERE?

>> WELL, NO, CURRENTLY THE ONLY WAY YOU'D BE ABLE TO OPT OUT OF THE PLAN IS IF YOU MEET THE STATE'S PLAN TO A T. AND THERE'S A LOT OF RESTRICTIONS, IT'S VERY BURDENSOME, VERY BROAD.

AND SO RIGHT NOW IT'S NOT REALLY A REALISTIC PLAN TO BE ABLE TO OPT OUT.

>> Cathy: DEB.

>> YEAH, WELL, WE DO HAVE IN OTHER STATES WE'VE MODELED OUR ABILITY OF EMPLOYERS TO OPT OUT AND OFFER A COMPARABLE PLAN ON THOSE THAT ARE WORKING IN OTHER STATES AND EMPLOYERS HAVE BEEN ABLE TO DO THAT.

AND I GUESS JUST REALLY IMPORTANT THOUGH TO RECOGNIZE THAT WE'RE TALKING ABOUT 75% OF THE WORKERS IN THE STATE THAT DON'T HAVE ACCESS TO THIS KIND OF BENEFIT NOW.

AND IT IS IMPORTANT THAT WE'RE NOT DISRUPTING THOSE FOLKS THAT HAVE THAT ARE PRIVILEGED ENOUGH TO HAVE THESE REALLY GREAT BENEFIT SETS NOW.

BUT AND SO I THINK WE ARE WORKING AND WE WANT TO WORK TOGETHER TO FIGURE OUT HOW WE CAN MAKE SURE WE'RE NOT DISRUPTING THOSE FOLKS THAT ALREADY HAVE IT WELL BUT MAKE SURE WE'RE AGAIN CREATING THAT SAFETY NET FOR ALL THOSE THAT DON'T.

>> Eric: ARE YOU HIPPING VOTES?

DO YOU KNOW HOW CLOSE YOU ARE IN THE SENATE?

YOU NEED 34.

>> WELL.

>> I'D BE CURIOUSOUS TO KNO