HF 2032

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 03/14/2016 04:46pm

A bill for an act
relating to unemployment insurance; providing for extended benefits; reducing
unemployment insurance taxes; amending Minnesota Statutes 2014, section
268.051, by adding a subdivision.

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

ARTICLE 1

IRON ORE MINING

Section 1. new text begin IRON ORE MINING AND RELATED INDUSTRY EXTENDED
UNEMPLOYMENT BENEFITS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Availability of extended benefits. new text end

new text begin Extended unemployment benefits
are available from the Minnesota unemployment insurance trust fund to an applicant who
was laid off due to lack of work after March 1, 2015, from:
new text end

new text begin (1) an iron ore mining industry employer; or
new text end

new text begin (2) an employer providing goods or services to an iron ore mining industry employer
if the applicant was laid off due to the cessation or substantial reduction in operations
of an iron ore mining industry employer.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility requirements. new text end

new text begin An applicant is eligible to receive extended
unemployment benefits under this section for any week through the week ending June 25,
2017, if:
new text end

new text begin (1) the applicant established a benefit account under Minnesota Statutes, section
268.07, with a majority of the wage credits from an iron ore mining industry employer
or an employer providing goods or services to iron ore mining industry employers, and
has exhausted the maximum amount of regular unemployment benefits available on that
benefit account; and
new text end

new text begin (2) the applicant meets the same requirements that an applicant for regular
unemployment benefits must meet under Minnesota Statutes, section 268.069, subdivision
1.
new text end

new text begin Subd. 3. new text end

new text begin Weekly and maximum amount of extended unemployment benefits. new text end

new text begin (a)
The weekly benefit amount of extended unemployment benefits is the same as the weekly
benefit amount of regular unemployment benefits on the benefit account established in
subdivision 2, clause (1).
new text end

new text begin (b) The maximum amount of extended unemployment benefits available to an
applicant under this section is an amount equal to 26 weeks of payment at the applicant's
weekly extended unemployment benefit amount.
new text end

new text begin (c) If an applicant qualifies for a new regular benefit account that meets the
requirements of subdivision 4, paragraph (b), before the applicant has been paid extended
unemployment benefits, and that new regular benefit account meets the requirements
of subdivision 2, clause (1), the applicant's weekly extended unemployment benefit
amount is equal to the weekly unemployment benefit amount on the applicant's new
regular benefit account.
new text end

new text begin Subd. 4. new text end

new text begin Qualifying for a new regular benefit account. new text end

new text begin (a) If after exhausting the
maximum amount of regular unemployment benefits available as a result of the layoff
under subdivision 1, an applicant qualifies for the new regular benefit account under
Minnesota Statutes, section 268.07, the applicant must apply for and establish that new
regular benefit account.
new text end

new text begin (b) If the applicant's weekly benefit amount under the new regular benefit account is
equal to or higher than the applicant's weekly extended unemployment benefit amount,
the applicant must request unemployment benefits under the new regular benefit account.
An applicant is ineligible for extended unemployment benefits under this section until
the applicant has exhausted the maximum amount of unemployment benefits available on
the new regular benefit account.
new text end

new text begin (c) If the applicant's weekly unemployment benefit amount on the new regular benefit
account is less than the applicant's weekly benefit amount of extended unemployment
benefits, the applicant must request extended unemployment benefits. An applicant is
ineligible for new regular unemployment benefits until the applicant has exhausted the
maximum amount of extended unemployment benefits available under this section.
new text end

new text begin Subd. 5. new text end

new text begin Charging of benefits. new text end

new text begin Extended unemployment benefits paid under this
section may not be used to compute the future unemployment tax rate of a taxpaying
employer nor charged to the reimbursing account of government or nonprofit employers.
new text end

new text begin Subd. 6. new text end

new text begin Eligibility for federal Trade Readjustment Allowance benefits. new text end

new text begin An
applicant who has applied and been determined eligible for federal Trade Readjustment
Allowance benefits is not eligible for extended unemployment benefits under this section.
new text end

new text begin Subd. 7. new text end

new text begin Legislative findings. new text end

new text begin (a) The legislature finds that the state greatly benefits
from the diversification of the state's mineral economy through long-term support of
mineral exploration, evaluation, environmental research, development, production, and
commercialization.
new text end

new text begin (b) The legislature further finds that maintaining and supporting a trained and
skillful mining workforce is critical to the long-term health and viability of the state's
mineral economy.
new text end

new text begin (c) The legislature finds that the best way to maintain a trained and skillful mining
workforce in the state is to make all reasonable efforts to facilitate the continued operation
of existing mines and the addition of new mines whenever feasible.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from August 31, 2015.
new text end

ARTICLE 2

UNEMPLOYMENT INSURANCE

Section 1.

Minnesota Statutes 2014, section 268.051, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Unemployment insurance tax limits. new text end

new text begin (a) If the balance in the trust fund
on December 31 of any calendar year is four percent or more above the amount equal to
an average high cost multiple of 1.0, future unemployment taxes payable must be reduced
by all amounts above 1.0. The amount of tax reduction for any taxpaying employer is
the same percentage of the total amount above 1.0 as the percentage of taxes paid by the
employer during the calendar year is of the total amount of taxes that were paid by all
nonmaximum experience rated employers during the year.
new text end

new text begin (b) For purposes of this subdivision, "average high cost multiple" has the meaning
given in Code of Federal Regulations, title 20, section 606.3, as amended through the
effective date of this section. An amount equal to an average high cost multiple of 1.0
is a federal measure of adequate reserves in relation to the state's current economy.
The commissioner must calculate and publish, as soon as possible following December
31 of any calendar year, the trust fund balance on December 31 along with the amount
an average high cost multiple of 1.0 equals. Actual wages paid must be used in the
calculation and estimates may not be used.
new text end

new text begin (c) This subdivision does not apply to employers that were at the maximum
experience rating for the year, nor to high experience rating industry employers under
subdivision 5, paragraph (b). Computations under paragraph (a) are not subject to the
rounding requirement of section 268.034. The refund provisions of section 268.057,
subdivision 7, do not apply.
new text end

new text begin (d) The unemployment tax reduction under this subdivision applies to taxes paid
between March 1 and December 15 of the year following the December 31 computation
under paragraph (a).
new text end

new text begin (e) The amount equal to the average high cost multiple of 1.0 on December 31,
2012, must be used for the calculation under paragraph (a) but only for the calculation
made on December 31, 2015. Notwithstanding paragraph (d), the tax reduction resulting
from the application of this paragraph applies to unemployment taxes paid between July 1,
2016, and June 30, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from December 31,
2015.
new text end