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Bill Summary · HF 1263

Summary of HF 1263 (2025-2026) — Minnesota Paid Leave Law Repeal and Reallocation of Unspent Funds

This summary outlines the main purpose, key provisions, affected entities, and procedural/timeline aspects of HF 1263 as introduced in the Minnesota 94th Legislature.

1) Purpose and Intent

  • Primary aim: Repeal the Minnesota Paid Leave Law (commonly known as the Minnesota Paid Leave Law) and return unspent funds in the Family Medical Leave Account to the general fund.
  • Effective date for the transfer provision: July 1, 2025.
  • Overall effect: Dissolution of the state-run paid family and medical leave program and termination of related statutory authorities and accounts, with adjustments to the state budget (unspent funds returned to the general fund).

2) Key Provisions and Changes

  • Section 1: Transfer of unspent funds

    • Unspent funds from the Family and Medical Leave (FML) account under Minnesota Statutes, section 268B.02, would be transferred to the general fund.
    • Effective date: July 1, 2025.

  • Section 2: Repealer

    • Repeals the Minnesota Paid Leave Law chapters and numerous subdivisions of Minnesota Statutes 2024 (268B.x series, including definitions, procedures, and program administration).
    • Repeal applies to sections such as 268B.001; 268B.01; 268B.02; 268B.03; 268B.04 (and multiple subdivisions); 268B.05; 268B.06 (and numerous subdivisions); 268B.07; 268B.081; 268B.085; 268B.09; 268B.10 (and many subdivisions); 268B.11; 268B.12; 268B.13; 268B.14; 268B.145; 268B.15; 268B.155; 268B.16; 268B.17; 268B.18; 268B.19; 268B.21; 268B.22; 268B.23; 268B.24; 268B.25; 268B.26; 268B.27; 268B.28; 268B.29; 268B.30.
    • Effective date: July 1, 2025.

  • Appendix (contextual background)

    • The bill explicitly references repealing the entire “Minnesota Paid Leave Law” and associated sections, suggesting a clean legislative removal of the program and its statutory framework.

3) Who or What Would Be Affected

  • State government program: The Minnesota Paid Leave Law and its administration (Family Benefit Program, Benefit Accounts, etc.) would be repealed.
  • State budget/finances: Unspent funds in the Family and Medical Benefit Insurance Account would be transferred to the general fund, affecting the state’s fiscal accounting.
  • Employers and employees: The interworking structure created by the state’s paid leave program (benefit accounts, premium collection, eligibility determinations, and benefits administration) would be eliminated. Private plans and interactions with employers that previously integrated with the state program may be impacted, though specifics would depend on how employers and workers transition post-repeal.

4) Procedural and Timeline Aspects

  • Effective date for transfer and repeal: July 1, 2025.
  • Processed as an act relating to paid leave; when enacted, it would terminate the state-paid leave program and return funds.
  • No new or continuing provisions for paid leave benefits would be created by HF 1263; instead, the existing statutory framework would be repealed and funds reallocated.

5) Implications and Considerations

  • Public programs: The repeal ends public insurance-like paid family and medical leave benefits in Minnesota, shifting potential responsibility for paid leave to private arrangements or other state policy.
  • Financial: Returning unspent funds to the general fund reduces dedicated-purpose dollars and could influence future state budgeting or program funding decisions.
  • Administrative: The repeal would require orderly wind-down of the division and account management already established under 268B, with transition guidance for beneficiaries and employers likely necessary, though not detailed in the bill excerpt provided.

If you’d like, I can provide a side-by-side comparison with current law (268B.x) to highlight specific provisions being repealed and summarize potential beneficiary impact in practical terms.

Compiled from official sources — confirm details with the bill’s official record.

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