HF 20

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/06/2023 03:53pm

A bill for an act
relating to unemployment insurance; modifying wage credits and providing
reimbursement; authorizing transfers from the general fund; amending Minnesota
Statutes 2022, sections 126C.43, subdivision 2; 268.085, subdivision 7; 268.19,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 268;
repealing Minnesota Statutes 2022, section 268.085, subdivision 8.

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

Section 1.

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 deleted text begin : deleted text end (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
from the account established under section 268.193, subdivision 2.
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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2024 and later.
new text end

Sec. 2.

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 begin 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 end new 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. For individuals in
the employment of an employer as defined in section 123A.24, subdivision 2, or 123A.55,
an instructional position is one for which a license is required by the Professional Educator
Licensing and Standards Board or the Board of School Administrators.
new text end

(c) deleted text begin 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). deleted text end new 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.

Sec. 3.

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 begin and
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 System new text begin , and for the purposes of reimbursement under section 268.193, subdivision 5;
new text end

new text begin (18) the Department of Education for the purposes of reimbursement under section
268.193, subdivision 2, 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
reimbursement under section 268.193, subdivision 3; and
new text end

new text begin (20) the Board of Trustees of the Minnesota State Colleges and Universities for the
purposes of reimbursement under section 268.193, subdivision 4 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. 4.

new text begin [268.193] REIMBURSEMENT ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Reimbursement administered. new text end

new text begin (a) For the purposes of this subdivision,
the following terms have the meanings given:
new text end

new text begin (1) "participating educational institution" means:
new text end

new text begin (i) a public kindergarten through grade 12 educational institution as defined in subdivision
2, paragraph (a), clause (1);
new text end

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

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

new text begin (iv) a Tribal college as defined in subdivision 5, paragraph (a), clause (1); and
new text end

new text begin (2) "qualifying unemployment benefits" has the meanings given in subdivision 2,
paragraph (a), clause (2); subdivision 3, paragraph (a); subdivision 4, paragraph (a); and
subdivision 5, paragraph (a), clause (2), as applicable to the participating educational
institution.
new text end

new text begin (b) The commissioner of employment and economic development shall calculate and
certify the qualifying unemployment benefits payments charged and credited to the
reimbursable account of the participating educational institutions as provided under section
268.045 each calendar quarter and share and transmit the applicable certified amount to:
new text end

new text begin (1) the commissioner of education for the purposes of reimbursement under subdivision
2;
new text end

new text begin (2) the Board of Regents of the University of Minnesota for the purposes of
reimbursement under subdivision 3;
new text end

new text begin (3) the Board of Trustees of the Minnesota State Colleges and Universities for the
purposes of reimbursement under subdivision 4; or
new text end

new text begin (4) the commissioner of the Office of Higher Education for the purposes of reimbursement
under subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Kindergarten through grade 12 school reimbursement account. new text end

new text begin (a) For the
purposes of this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "public kindergarten through grade 12 educational institution" means a:
new text end

new text begin (i) school district;
new text end

new text begin (ii) charter school; or
new text end

new text begin (iii) school cooperative, as defined in section 123A.24, subdivision 2; and
new text end

new text begin (2) "qualifying unemployment benefits" means unemployment benefits charged and
credited to a public kindergarten through grade 12 educational institution as provided under
section 268.045 for an applicant for any week during a period between successive academic
years or terms, if the applicant worked in a capacity other than instructional, research, or
principal administrative. For individuals in the employment of an employer as defined in
section 123A.24, subdivision 2, or 123A.55, an instructional position is one for which a
license is required by the Professional Educator Licensing and Standards Board or the Board
of School Administrators.
new text end

new text begin (b) There is created in the special revenue fund an account, to be known as the
kindergarten through grade 12 school reimbursement account, that does not lapse nor revert
to any other fund or account. This account consists of all money appropriated for the purposes
of this subdivision, unless otherwise appropriated by law. Funds appropriated for the purposes
of reimbursement under this subdivision must be transferred to the kindergarten through
grade 12 school reimbursement account in the special revenue fund.
new text end

new text begin (c) As provided in this subdivision, money in the account is appropriated to the
commissioner of education and shall be used to reimburse a public kindergarten through
grade 12 educational institution under this subdivision for payments of qualifying
unemployment benefits certified under subdivision 1, paragraph (b), clause (1). The
commissioner shall administer payments of certified reimbursement amounts to a public
kindergarten through grade 12 educational institution under this subdivision on or before
the last day of the month following the end of the next calendar quarter following
certification. If the certified reimbursement amounts exceed the money available in the
kindergarten through grade 12 school reimbursement account, reimbursement shall be
dispersed to individual public kindergarten through grade 12 educational institutions on a
pro rata basis.
new text end

new text begin (d) The commissioner of education may spend up to one percent of the amount
appropriated to the kindergarten through grade 12 school reimbursement account for costs
associated with administering and monitoring payments under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin University of Minnesota reimbursement account. new text end

new text begin (a) For the purposes of
this subdivision, "qualifying unemployment benefits" means unemployment benefits charged
and credited to the University of Minnesota as provided under section 268.045 for an
applicant for any week during a period between successive academic years or terms, if the
applicant worked in a capacity other than instructional, research, or principal administrative.
new text end

new text begin (b) There is created in the special revenue fund an account, to be known as the University
of Minnesota reimbursement account, that does not lapse nor revert to any other fund or
account. This account consists of all money appropriated for the purposes of this subdivision,
unless otherwise appropriated by law. Funds appropriated for the purposes of reimbursement
under this subdivision must be transferred to the University of Minnesota reimbursement
account in the special revenue fund.
new text end

new text begin (c) As provided in this subdivision, money in the account is appropriated to the Board
of Regents of the University of Minnesota and shall be used to reimburse the University of
Minnesota for payments of qualifying unemployment benefits certified under subdivision
1, paragraph (b), clause (2). The Board of Regents shall reimburse the University of
Minnesota for certified reimbursement amounts in the form and manner prescribed by the
board.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota State Colleges and Universities reimbursement account. new text end

new text begin (a) For
the purposes of this subdivision, "qualifying unemployment benefits" means unemployment
benefits charged and credited to a Minnesota state college or university governed by the
Board of Trustees as provided under section 268.045 for an applicant for any week during
a period between successive academic years or terms, if the applicant worked in a capacity
other than instructional, research, or principal administrative.
new text end

new text begin (b) There is created in the special revenue fund an account, to be known as the Minnesota
State Colleges and Universities reimbursement account, that does not lapse nor revert to
any other fund or account. This account consists of all money appropriated for the purposes
of this subdivision unless otherwise appropriated by law. Funds appropriated for the purposes
of reimbursement under this subdivision must be transferred to the Minnesota State Colleges
and Universities reimbursement account in the special revenue fund.
new text end

new text begin (c) As provided in this subdivision, money in the account is appropriated to the Board
of Trustees of the Minnesota State Colleges and Universities and shall be used to reimburse
individual Minnesota state colleges and universities for payments of qualifying
unemployment benefits certified under subdivision 1, paragraph (b), clause (3). The Board
of Trustees shall reimburse individual Minnesota state colleges and universities for certified
reimbursement amounts in the form and manner prescribed by the board. If certified
reimbursement amounts exceed the money available in the Minnesota State Colleges and
Universities reimbursement account, reimbursement shall be dispersed to individual
Minnesota state colleges and universities on a pro rata basis.
new text end

new text begin Subd. 5. new text end

new text begin Tribal colleges reimbursement account. new text end

new text begin (a) For the purposes of this
subdivision, the following terms have the meanings given:
new text end

new text begin (1) "Tribal college" means Leech Lake Tribal College, White Earth Tribal College, or
Red Lake Nation Tribal College, referred to collectively in this subdivision as Tribal colleges;
and
new text end

new text begin (2) "qualifying unemployment benefits" means unemployment benefits charged and
credited to a Tribal college as provided under section 268.045 for an applicant for any week
during a period between successive academic years or terms, if the applicant worked in a
capacity other than instructional, research, or principal administrative.
new text end

new text begin (b) There is created in the special revenue fund an account, to be known as the Tribal
colleges reimbursement account, that does not lapse nor revert to any other fund or account.
This account consists of all money appropriated for the purposes of this subdivision unless
otherwise appropriated by law. Funds appropriated for the purposes of reimbursement under
this section must be transferred to the Tribal colleges reimbursement account in the special
revenue fund.
new text end

new text begin (c) As provided in this subdivision, money in the account is appropriated to the
commissioner of the Office of Higher Education and shall be used to reimburse individual
Tribal colleges for payments of qualifying unemployment benefits certified under subdivision
1, paragraph (b), clause (4). The commissioner shall administer payments of certified
reimbursement amounts to a Tribal college on or before the last day of the month following
the end of the next calendar quarter following certification. If the certified reimbursement
amounts exceed the money available in the Tribal colleges reimbursement account,
reimbursement shall be dispersed to individual Tribal colleges on a pro rata basis.
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. 5. new text begin TRANSFERS.
new text end

new text begin (a) $161,743,000 in fiscal year 2024 is transferred from the general fund to the
commissioner of education for the purposes of reimbursement under Minnesota Statutes,
section 268.193, subdivision 2, and subject to the requirements of that subdivision. This is
a onetime transfer and is available until expended.
new text end

new text begin (b) $68,470,000 in fiscal year 2024 is transferred from the general fund to the Board of
Regents of the University of Minnesota for the purposes of reimbursement under Minnesota
Statutes, section 268.193, subdivision 3, and subject to the requirements of that subdivision.
This is a onetime transfer and is available until expended.
new text end

new text begin (c) $39,123,000 in fiscal year 2024 is transferred from the general fund to the Board of
Trustees of the Minnesota State Colleges and Universities for the purposes of reimbursement
under Minnesota Statutes, section 268.193, subdivision 4, and subject to the requirements
of that subdivision. This is a onetime transfer and is available until expended.
new text end

new text begin (d) $471,000 in fiscal year 2024 is transferred from the general fund to the commissioner
of the Office of Higher Education for the purposes of reimbursement under Minnesota
Statutes, section 268.193, subdivision 5, and subject to the requirements of that subdivision.
This is a onetime transfer and is available until expended.
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. 6. new text begin REPEALER.
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: H0020-1

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.