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HF 20

3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/27/2023 04:03pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/04/2023
1st Engrossment Posted on 02/06/2023
2nd Engrossment Posted on 02/13/2023
3rd Engrossment Posted on 03/27/2023

Current Version - 3rd Engrossment

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A bill for an act
relating to unemployment insurance; modifying wage credits and providing
reimbursement; authorizing transfers from the general fund; providing
unemployment insurance aid; requiring reports; appropriating money; amending
Minnesota Statutes 2022, sections 126C.43, subdivision 2; 127A.45, subdivision
12; 268.085, subdivision 7; 268.19, subdivision 1; proposing coding for new law
in Minnesota Statutes, chapters 124D; 268; repealing Minnesota Statutes 2022,
section 268.085, subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [124D.995] UNEMPLOYMENT INSURANCE AID.
new text end

new text begin (a) School districts and charter schools, including intermediate school districts and other
cooperative units under section 123A.24, subdivision 2, are eligible to receive unemployment
insurance aid under this section. For each fiscal year, an eligible entity's aid is the difference
between:
new text end

new text begin (1) net audited unemployment costs, as reported under section 123B.76, for the prior
fiscal year; and
new text end

new text begin (2) the base period net audited unemployment costs pursuant to paragraph (b).
new text end

new text begin (b) The base period net audited unemployment costs equals the eligible entity's fiscal
year 2022 net audited unemployment costs.
new text end

new text begin (c) If the total eligible unemployment insurance aid for a fiscal year is greater than the
annual appropriation for that year, the commissioner must proportionately reduce the aid
payment to each eligible entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid beginning in fiscal year 2025.
new text end

Sec. 2.

Minnesota Statutes 2022, section 126C.43, subdivision 2, is amended to read:


Subd. 2.

Payment to unemployment insurance program trust fund by state and
political subdivisions.

(a) A district may levy the amount necessary (1) to pay the district's
obligations under section 268.052, subdivision 1, and (2) to pay for job placement services
offered to employees who may become eligible for benefits pursuant to section 268.085 for
the fiscal year the levy is certified.

(b) Districts with a balance remaining in their reserve for reemployment as of June 30,
2003, may not expend the reserved funds for future reemployment expenditures. Each year
a levy reduction must be made to return these funds to taxpayers. The amount of the levy
reduction must be equal to the lesser of: (1) the remaining reserved balance for reemployment,
or (2) the amount of the district's current levy under paragraph (a).

new text begin (c) The amount in paragraph (a) must be reduced by any amount received by the district
under section 124D.995.
new text end

new text begin (d) A district that is a member of an intermediate school district or other cooperative
unit under section 123A.24, subdivision 2, may include in its authority under this section
the costs associated with qualifying obligations under paragraph (a) for the cooperative unit.
Revenue raised under this paragraph must be transferred to the cooperative unit.
new text end

Sec. 3.

Minnesota Statutes 2022, section 127A.45, subdivision 12, is amended to read:


Subd. 12.

Payment percentage for certain aids.

One hundred percent of the aid for
the current fiscal year must be paid for the following aids: reimbursement for enrollment
options transportation, according to sections 124D.03, subdivision 8, and 124D.09,
subdivision 22
, and chapter 124E; school lunch aid, according to section 124D.111; deleted text beginanddeleted text end
support services aid, for persons who are deaf, deafblind, and hard-of-hearing according to
section 124D.57new text begin; and unemployment insurance aid according to section 124D.995new text end.

Sec. 4.

Minnesota Statutes 2022, section 268.085, subdivision 7, is amended to read:


Subd. 7.

School employees; between terms denial.

(a) Wage credits from employment
with an educational institution or institutions may not be used for unemployment benefit
purposes for any week during the period between two successive academic years or terms
if:

(1) the applicant had employment for an educational institution or institutions in the
prior academic year or term; and

(2) there is a reasonable assurance that the applicant will have employment for an
educational institution or institutions in the following academic year or term.

deleted text begin This paragraph applies to a vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period
or holiday recess.
deleted text end This paragraph also applies to the period between two regular but not
successive terms if there is an agreement for that schedule between the applicant and the
educational institution.

This paragraph does not apply if the subsequent employment is substantially less
favorable than the employment of the prior academic year or term, or the employment prior
to the vacation period or holiday recess.

(b) Paragraph (a) does not apply to deleted text beginan applicant who, at the end of the prior academic
year or term, had an agreement for a definite period of employment between academic years
or terms in other than an instructional, research, or principal administrative capacity and
the educational institution or institutions failed to provide that employment.
deleted text endnew text begin any week during
the period between two successive academic years or terms if an applicant worked in a
capacity other than instructional, research, or principal administrative.
new text end

(c) deleted text beginIf unemployment benefits are denied to any applicant under paragraph (a) who was
employed in the prior academic year or term in other than an instructional, research, or
principal administrative capacity and who was not offered an opportunity to perform the
employment in the following academic year or term, the applicant is entitled to retroactive
unemployment benefits for each week during the period between academic years or terms
that the applicant filed a timely continued request for unemployment benefits, but
unemployment benefits were denied solely because of paragraph (a).
deleted text endnew text begin Paragraph (a) applies
to a vacation period or holiday recess if the applicant was employed immediately before
the vacation period or holiday recess, and there is a reasonable assurance that the applicant
will be employed immediately following the vacation period or holiday recess, including
applicants who worked in a capacity other than instructional, research, or principal
administrative.
new text end

(d) This subdivision applies to employment with an educational service agency if the
applicant performed the services at an educational institution or institutions. "Educational
service agency" means a governmental entity established and operated for the purpose of
providing services to one or more educational institutions.

(e) This subdivision applies to employment with Minnesota, a political subdivision, or
a nonprofit organization, if the services are provided to or on behalf of an educational
institution or institutions.

(f) Paragraph (a) applies beginning the Sunday of the week that there is a reasonable
assurance of employment.

(g) Employment and a reasonable assurance with multiple education institutions must
be aggregated for purposes of application of this subdivision.

(h) If all of the applicant's employment with any educational institution or institutions
during the prior academic year or term consisted of on-call employment, and the applicant
has a reasonable assurance of any on-call employment with any educational institution or
institutions for the following academic year or term, it is not considered substantially less
favorable employment.

(i) A "reasonable assurance" may be written, oral, implied, or established by custom or
practice.

(j) An "educational institution" is a school, college, university, or other educational entity
operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit
organization.

(k) An "instructional, research, or principal administrative capacity" does not include
an educational assistant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2022, section 268.19, subdivision 1, is amended to read:


Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from
any person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in section 13.02,
subdivisions 9 and 12, and may not be disclosed except according to a district court order
or section 13.05. A subpoena is not considered a district court order. These data may be
disseminated to and used by the following agencies without the consent of the subject of
the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) any agency of any other state or any federal agency charged with the administration
of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment offices
for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 256.978;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
Department of Commerce for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents
within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(10) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program and other cash assistance programs, the Supplemental Nutrition Assistance Program,
and the Supplemental Nutrition Assistance Program Employment and Training program by
providing data on recipients and former recipients of Supplemental Nutrition Assistance
Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 119B, or medical programs under chapter 256B or 256L or
formerly codified under chapter 256D;

(11) local and state welfare agencies for the purpose of identifying employment, wages,
and other information to assist in the collection of an overpayment debt in an assistance
program;

(12) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(13) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(14) the Department of Health for the purposes of epidemiologic investigations;

(15) the Department of Corrections for the purposes of case planning and internal research
for preprobation, probation, and postprobation employment tracking of offenders sentenced
to probation and preconfinement and postconfinement employment tracking of committed
offenders;

(16) the state auditor to the extent necessary to conduct audits of job opportunity building
zones as required under section 469.3201; deleted text beginand
deleted text end

(17) the Office of Higher Education for purposes of supporting program improvement,
system evaluation, and research initiatives including the Statewide Longitudinal Education
Data Systemnew text begin, and for the purposes of unemployment insurance aid under section 268.193;
new text end

new text begin (18) the Department of Education for the purposes of unemployment insurance aid under
section 124D.995, and the school district unemployment insurance levy under section
126C.43, subdivision 2;
new text end

new text begin (19) the Board of Regents of the University of Minnesota for the purposes of
unemployment insurance aid under section 268.193; and
new text end

new text begin (20) the Board of Trustees of the Minnesota State Colleges and Universities for the
purposes of unemployment insurance aid under section 268.193
new text end.

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
and 13, and must not be disclosed except under statute or district court order or to a party
named in a criminal proceeding, administrative or judicial, for preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil
proceedings, administrative or judicial, unless the action is initiated by the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

new text begin [268.193] POSTSECONDARY UNEMPLOYMENT INSURANCE AID.
new text end

new text begin Subdivision 1. new text end

new text begin Postsecondary institutions. new text end

new text begin For the purposes of this section, an eligible
postsecondary institution means:
new text end

new text begin (1) the University of Minnesota;
new text end

new text begin (2) a postsecondary institution governed by the Board of Trustees of the Minnesota State
Colleges and Universities; or
new text end

new text begin (3) a Tribal college, which means Leech Lake Tribal College, White Earth Tribal College,
or Red Lake Nation Tribal College.
new text end

new text begin Subd. 2. new text end

new text begin Unemployment insurance aid. new text end

new text begin Eligible postsecondary institutions are eligible
to receive unemployment insurance aid under this section. For each fiscal year, an eligible
entity's aid is the difference between fiscal year 2022's unemployment insurance costs and
the current year's unemployment insurance costs, as reflected in the unemployment insurance
employer accounts maintained by the state. If the total eligible unemployment insurance
aid for a fiscal year is greater than the annual appropriation for that year, the Board of
Trustees of the Minnesota State Colleges and Universities or the commissioner of the Office
of Higher Education, as applicable, must proportionately reduce the aid payment to each
eligible entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid beginning in fiscal year 2024.
new text end

Sec. 7. new text beginREPORTS.
new text end

new text begin (a) By January 15 of each year, the Department of Education, in consultation with the
Department of Employment and Economic Development, must report to the education
committees of the legislature the balances in unemployment insurance aid accounts and
information about the annual changes in reimbursable costs for school workers receiving
unemployment insurance benefits.To the extent possible, the report must break out the costs
by district and major job classes. The report must be filed according to Minnesota Statutes,
section 3.195.
new text end

new text begin (b) By January 15 of each year, the Board of Regents of the University of Minnesota,
the Board of Trustees of the Minnesota State Colleges and Universities, and the Office of
Higher Education, in consultation with the Department of Employment and Economic
Development, must each report to the higher education committees of the legislature the
balances in unemployment insurance aid accounts and information about the annual changes
in reimbursable costs for higher education workers receiving unemployment insurance
benefits. To the extent possible, the report must break out the costs by campus and major
job classes. The report must be filed according to Minnesota Statutes, section 3.195.
new text end

Sec. 8. new text beginAPPROPRIATION; UNIVERSITY OF MINNESOTA.
new text end

new text begin $366,000 in fiscal year 2024 and $366,000 in fiscal year 2025 are appropriated from the
general fund to the Board of Regents of the University of Minnesota for the purposes of
unemployment insurance aid for the University of Minnesota under Minnesota Statutes,
section 268.193.
new text end

Sec. 9. new text beginAPPROPRIATION; MINNESOTA STATE COLLEGES AND
UNIVERSITIES.
new text end

new text begin $809,000 in fiscal year 2024 and $809,000 in fiscal year 2025 are appropriated from the
general fund to the Board of Trustees of the Minnesota State Colleges and Universities for
the purposes of unemployment insurance aid to individual Minnesota State Colleges and
Universities governed by the Board of Trustees under Minnesota Statutes, section 268.193.
new text end

Sec. 10. new text beginAPPROPRIATION; OFFICE OF HIGHER EDUCATION.
new text end

new text begin $495,000 in fiscal year 2024 and $495,000 in fiscal year 2025 are appropriated from the
general fund to the commissioner of the Office of Higher Education. Of this amount,
$471,000 is for the purposes of unemployment insurance aid to individual Tribal colleges
under Minnesota Statutes, section 268.193, and $24,000 is for administration of the
unemployment insurance aid.
new text end

Sec. 11. new text beginAPPROPRIATION; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education in the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Unemployment insurance aid administration. new text end

new text begin (a) For administrative expenses:
new text end

new text begin $
new text end
new text begin 275,000
new text end
new text begin .....
new text end
new text begin 2024
new text end
new text begin $
new text end
new text begin 175,000
new text end
new text begin .....
new text end
new text begin 2025
new text end

new text begin (b) $175,000 in fiscal year 2025 is for administration of unemployment insurance aid
under Minnesota Statutes, section 124D.995. The base for fiscal year 2026 and thereafter
is $175,000.
new text end

new text begin Subd. 3. new text end

new text begin Unemployment insurance aid. new text end

new text begin (a) For unemployment insurance aid for school
districts, charter schools, and cooperatives:
new text end

new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2024
new text end
new text begin $
new text end
new text begin 135,199,000
new text end
new text begin .....
new text end
new text begin 2025
new text end

new text begin (b) $161,755,000 in fiscal year 2026 and thereafter are base amounts to the Department
of Education for unemployment insurance aid under Minnesota Statutes, section 124D.995.
The base may be adjusted if the Department of Education and the Department of Employment
and Economic Development jointly forecast a different aid entitlement for hourly school
workers.
new text end

new text begin (c) If the appropriation is insufficient, the commissioner must proportionately reduce
the aid payment to each recipient pursuant to Minnesota Statutes, section 124D.995,
paragraph (c).
new text end

Sec. 12. new text beginAPPROPRIATION; MINNESOTA STATE ACADEMIES.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota State Academies. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Minnesota State Academies in the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Unemployment insurance costs. new text end

new text begin (a) For unemployment insurance costs for
the Minnesota State Academies:
new text end

new text begin $
new text end
new text begin 321,000
new text end
new text begin .....
new text end
new text begin 2024
new text end
new text begin $
new text end
new text begin 321,000
new text end
new text begin .....
new text end
new text begin 2025
new text end

new text begin (b) $321,000 in fiscal year 2025 and thereafter is for unemployment insurance costs.
new text end

Sec. 13. new text beginAPPROPRIATION; PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Perpich Center for Arts Education. new text end

new text begin The sums indicated in this section
are appropriated from the general fund to the Perpich Center for Arts Education in the fiscal
years designated.
new text end

new text begin Subd. 2. new text end

new text begin Unemployment insurance costs. new text end

new text begin (a) For unemployment insurance costs of the
Perpich Center for Arts Education:
new text end

new text begin $
new text end
new text begin 25,000
new text end
new text begin .....
new text end
new text begin 2024
new text end
new text begin $
new text end
new text begin 25,000
new text end
new text begin .....
new text end
new text begin 2025
new text end

new text begin (b) $25,000 in fiscal year 2025 and thereafter is for unemployment insurance costs.
new text end

Sec. 14. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2022, section 268.085, subdivision 8, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: H0020-3

268.085 ELIGIBILITY REQUIREMENTS; PAYMENTS THAT AFFECT BENEFITS.

Subd. 8.

Services for school contractors.

(a) Wage credits from an employer are subject to subdivision 7, if:

(1) the employment was provided under a contract between the employer and an elementary or secondary school; and

(2) the contract was for services that the elementary or secondary school could have had performed by its employees.

(b) Wage credits from an employer are not subject to subdivision 7 if:

(1) those wage credits were earned by an employee of a private employer performing work under a contract between the employer and an elementary or secondary school; and

(2) the employment was related to food services provided to the school by the employer.