SF 2462

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to workforce development; increasing the 
  1.3             assessment paid into the workforce development fund; 
  1.4             increasing the taxable wage base; modifying assessment 
  1.5             to pay federal interest; amending Minnesota Statutes 
  1.6             2000, sections 268.035, subdivision 24; 268.051, 
  1.7             subdivision 8; Minnesota Statutes 2001 Supplement, 
  1.8             section 268.022, subdivision 1; Laws 2001, First 
  1.9             Special Session chapter 4, article 2, section 31. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11                             ARTICLE 1
  1.12                     WORKFORCE DEVELOPMENT FUND
  1.13     Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.14  268.022, subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [DETERMINATION AND COLLECTION OF SPECIAL 
  1.16  ASSESSMENT.] (a) In addition to all other taxes, assessments, 
  1.17  and payment obligations under chapter 268, each employer, except 
  1.18  an employer making payments in lieu of taxes is liable for a 
  1.19  special assessment levied at the rate of one-tenth of one 
  1.20  percent per year until June 30, 2000, and seven-hundredths of 
  1.21  one percent per year on and after July 1, 2000, on all taxable 
  1.22  wages, as defined in section 268.035, subdivision 24.  The 
  1.23  assessment shall become due and be paid by each employer to the 
  1.24  department on the same schedule and in the same manner as other 
  1.25  taxes. 
  1.26     (b) The special assessment levied under this section shall 
  1.27  not affect the computation of any other taxes, assessments, or 
  2.1   payment obligations due under this chapter. 
  2.2      Sec. 2.  Minnesota Statutes 2000, section 268.035, 
  2.3   subdivision 24, is amended to read: 
  2.4      Subd. 24.  [TAXABLE WAGES.] (a) "Taxable wages" means those 
  2.5   wages paid to an employee in covered employment each calendar 
  2.6   year up to an amount equal to 60 70 percent of the state's 
  2.7   average annual wage, rounded to the nearest $1,000. 
  2.8      (b) Taxable wages includes the amount of wages paid for 
  2.9   covered employment by the employer's predecessor when there has 
  2.10  been an experience rating record transfer under section 268.051, 
  2.11  subdivision 4. 
  2.12     Sec. 3.  Laws 2001, First Special Session chapter 4, 
  2.13  article 2, section 31, is amended to read: 
  2.14     Sec. 31.  [WORKFORCE ENHANCEMENT FEE.] 
  2.15     Subdivision 1.  [FEE.] Notwithstanding Minnesota Statutes, 
  2.16  section 268.022, effective January 1, 2002, the special 
  2.17  assessment under that section on taxable wages as defined in 
  2.18  Minnesota Statutes, section 268.035, subdivision 24, is 
  2.19  suspended until December 31, 2005.  Effective January 1, 2002, 
  2.20  there shall be assessed, in addition to unemployment taxes due 
  2.21  under Minnesota Statutes, section 268.051, a workforce 
  2.22  enhancement fee of .09 .12 percent on taxable wages.  This fee 
  2.23  shall be due and be paid on the same schedule and in the same 
  2.24  manner as unemployment taxes under Minnesota Statutes, section 
  2.25  268.051.  Any amount past due under this section shall be 
  2.26  subject to the same interest and collection provisions as 
  2.27  unemployment taxes.  This fee shall expire on December 31, 2005. 
  2.28     Subd. 2.  [USE OF FUNDS COLLECTED.] An amount equal to 
  2.29  .07 0.1 percent on taxable wages shall be deposited in the 
  2.30  workforce development fund provided for under Minnesota 
  2.31  Statutes, section 268.022, subdivision 2.  An amount equal to 
  2.32  .02 percent on taxable wages, less reimbursement for collection 
  2.33  costs of the total amount of the fee, shall be deposited in the 
  2.34  unemployment insurance technology initiative account provided 
  2.35  for in section 32. 
  2.36     Sec. 4.  [EFFECTIVE DATE.] 
  3.1      Section 2 is effective the day following its final 
  3.2   enactment. 
  3.3                              ARTICLE 2
  3.4                          FEDERAL BORROWING
  3.5      Section 1.  Minnesota Statutes 2000, section 268.051, 
  3.6   subdivision 8, is amended to read: 
  3.7      Subd. 8.  [SOLVENCY SPECIAL ASSESSMENT FOR INTEREST ON 
  3.8   FEDERAL LOAN.] (a) If the fund balance is less than $150,000,000 
  3.9   on June 30 October 31 of any year, the commissioner, in 
  3.10  consultation with the commissioner of finance, determines that 
  3.11  an interest payment will be due during the following calendar 
  3.12  year on any loan from the federal unemployment trust fund under 
  3.13  section 268.194, subdivision 6, a solvency special assessment on 
  3.14  taxpaying employers will be in effect for the following calendar 
  3.15  year.  The taxpaying employer shall pay quarterly a solvency 
  3.16  legislature authorizes the commissioner, in consultation with 
  3.17  the commissioner of finance, to determine the appropriate level 
  3.18  of the assessment, of ten from two percent to eight percent of 
  3.19  the quarterly unemployment taxes due, that will be necessary to 
  3.20  pay the interest due on the loan. 
  3.21     (b) The solvency special assessment shall be placed into a 
  3.22  special account from which the commissioner shall pay any 
  3.23  interest accruing that has accrued on any loan from the federal 
  3.24  unemployment trust fund provided for under section 268.194, 
  3.25  subdivision 6.  If, at the end of each calendar quarter, the 
  3.26  commissioner, in consultation with the commissioner of finance, 
  3.27  determines that the balance in this special account, including 
  3.28  interest earned on the special account, is more than is 
  3.29  necessary to pay the interest which has accrued on any loan as 
  3.30  of that date, or will accrue over the following calendar 
  3.31  quarter, the commissioner shall immediately pay to the fund the 
  3.32  amount in excess of that necessary to pay the interest on any 
  3.33  loan. 
  3.34     [EFFECTIVE DATE.] This section is effective the day 
  3.35  following final enactment.