HF 3238

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/17/2022 04:01pm

A bill for an act
relating to unemployment insurance; replenishing the unemployment trust fund;
repaying interest; modifying the base tax rate for calendar year 2022; eliminating
the special assessment and additional assessment for calendar year 2022;
appropriating money; amending Minnesota Statutes 2020, sections 268.085,
subdivision 7; 268.101, subdivision 2; repealing Minnesota Statutes 2020, section
268.085, subdivision 8.

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

ARTICLE 1

UNEMPLOYMENT INSURANCE TRUST FUND REPLENISHED AND INTEREST
PAID

Section 1. new text begin UNEMPLOYMENT BASE TAX RATE, ADDITIONAL ASSESSMENT,
AND SPECIAL ASSESSMENT FOR CALENDAR YEAR 2022.
new text end

new text begin Subdivision 1. new text end

new text begin Base tax rate. new text end

new text begin Notwithstanding Minnesota Statutes, section 268.051,
subdivision 2, in calendar year 2022, the base tax rate under Minnesota Statutes, section
268.051, subdivision 2, paragraph (b), is four-tenths of one percent.
new text end

new text begin Subd. 2. new text end

new text begin Additional assessment. new text end

new text begin Notwithstanding Minnesota Statutes, section 268.051,
subdivision 2, in calendar year 2022, the additional assessment under Minnesota Statutes,
section 268.051, subdivision 2, paragraph (c), is zero percent.
new text end

new text begin Subd. 3. new text end

new text begin Special assessment. new text end

new text begin Notwithstanding Minnesota Statutes, sections 268.051,
subdivision 8, and 268.194, subdivision 6, paragraph (c), in calendar year 2022, the special
assessment under Minnesota Statutes, section 268.051, subdivision 8, is zero percent.
new text end

new text begin Subd. 4. new text end

new text begin Employer credits. new text end

new text begin Notwithstanding any law to the contrary, the commissioner
of employment and economic development must credit each taxpaying employer for:
new text end

new text begin (1) any base tax rate amount assessed and paid in calendar year 2022 under Minnesota
Statutes, section 268.051, subdivision 2, paragraph (b), that is greater than four-tenths of
one percent;
new text end

new text begin (2) any additional assessment amount assessed and paid in calendar year 2022 under
Minnesota Statutes, section 268.051, subdivision 2; and
new text end

new text begin (3) any special assessment amount assessed and paid in calendar year 2022 under
Minnesota Statutes, section 268.051, subdivision 8.
new text end

new text begin Subd. 5. new text end

new text begin Interest payments. new text end

new text begin (a) Notwithstanding Minnesota Statutes, sections 268.051,
subdivision 8, and 268.194, subdivision 6, paragraph (c), or any other law to the contrary,
the commissioner of employment and economic development must pay any accrued interest
due on any loan from the federal unemployment trust fund under Minnesota Statutes, section
268.194, subdivision 6, in calendar year 2022, with the amount transferred in section 2,
paragraph (c).
new text end

new text begin (b) Within ten days following enactment of this section, the commissioner of employment
and economic development, in consultation with the commissioner of management and
budget, must determine the amount of accrued interest due for payment on any loan from
the federal unemployment trust fund under Minnesota Statutes, section 268.194, subdivision
6, for calendar year 2022, and report this amount to the chairs of the legislative committees
with jurisdiction over unemployment insurance.
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

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin (a) Notwithstanding any law to the contrary, $1,150,000,000 in fiscal year 2022 is
appropriated from the state fiscal recovery fund to the commissioner of management and
budget for transfer to Minnesota's account in the Unemployment Trust Fund in the United
States Treasury, for the purpose of replenishing the unemployment trust fund.
new text end

new text begin (b) If, after the appropriation in paragraph (a), the unemployment trust fund has a negative
balance, the commissioner of management and budget must transfer from the general fund
to Minnesota's account in the Unemployment Trust Fund in the United States Treasury, the
amount necessary to bring the unemployment trust fund balance to $0. This transfer must
be completed no later than March 15, 2022.
new text end

new text begin (c) Notwithstanding any law to the contrary, the commissioner of management and
budget must transfer from the general fund to the special account under Minnesota Statutes,
section 268.051, subdivisions 8, paragraph (b), the amount determined under section 1,
subdivision 5, paragraph (b). This transfer must be completed no later than September 15,
2022.
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

ARTICLE 2

UNEMPLOYMENT POLICY

Section 1.

Minnesota Statutes 2020, 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.

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. 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 new text begin :
new text end

new text begin (1) new text end an 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 begin . deleted text end new text begin ; or
new text end

new text begin (2) an applicant in a position for which no license is required by the Professional Educator
Licensing and Standards Board or the Board of School Administrators.
new text end

(c) If 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).

(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.

Sec. 2.

Minnesota Statutes 2020, section 268.101, subdivision 2, is amended to read:

Subd. 2.

Determination.

(a) The commissioner must determine any issue of ineligibility
raised by information required from an applicant under subdivision 1, paragraph (a) or (c),
and send to the applicant and any involved employer, by mail or electronic transmission, a
document titled a determination of eligibility or a determination of ineligibility, as is
appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge
of the applicant must state the effect on the employer under section 268.047. A determination
must be made in accordance with this paragraph even if a notified employer has not raised
the issue of ineligibility.

(b) The commissioner must determine any issue of ineligibility raised by an employer
and send to the applicant and that employer, by mail or electronic transmission, a document
titled a determination of eligibility or a determination of ineligibility as is appropriate. The
determination on an issue of ineligibility as a result of a quit or discharge of the applicant
must state the effect on the employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer before the application for unemployment
benefits;

(2) did not employ the applicant during the six calendar months before the application
for unemployment benefits; and

(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant
within ten calendar days of notification under subdivision 1, paragraph (b);

then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
weeks following the week that the issue of ineligibility as a result of a quit or discharge of
the applicant was raised by the employer.

A communication from an employer must specifically set out why the applicant should
be determined ineligible for unemployment benefits for that communication to be considered
to have raised an issue of ineligibility for purposes of this section. A statement of "protest"
or a similar term without more information does not constitute raising an issue of ineligibility
for purposes of this section.

(c) Subject to section 268.031, an issue of ineligibility is determined based upon that
information required of an applicant, any information that may be obtained from an applicant
or employer, and information from any other source.

(d) Regardless of the requirements of this subdivision, the commissioner is not required
to send to an applicant a copy of the determination where the applicant has satisfied a period
of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.

(e) The department is authorized to issue a determination on an issue of ineligibility
within 24 months from the establishment of a benefit account based upon information from
any source, even if the issue of ineligibility was not raised by the applicant or an employer.

If an applicant obtained unemployment benefits through misrepresentation under section
268.18, subdivision 2, the department is authorized to issue a determination of ineligibility
within 48 months of the establishment of the benefit account.

If the department has filed an intervention in a worker's compensation matter under
section 176.361, the department is authorized to issue a determination of ineligibility within
48 months of the establishment of the benefit account.

(f) A determination of eligibility or determination of ineligibility is final unless an appeal
is filed by the applicant or employer within deleted text begin 20 deleted text end new text begin 60 new text end calendar days after sending. The
determination must contain a prominent statement indicating the consequences of not
appealing. Proceedings on the appeal are conducted in accordance with section 268.105.

(g) An issue of ineligibility required to be determined under this section includes any
question regarding the denial or allowing of unemployment benefits under this chapter
except for issues under section 268.07. An issue of ineligibility for purposes of this section
includes any question of effect on an employer under section 268.047.

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 268.085, subdivision 8, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 22-06009

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.