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SF 2665

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/15/2022 08:24am

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

Current Version - as introduced

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A bill for an act
relating to unemployment; replenishing the unemployment trust fund; freezing the
unemployment base tax rate, assessment, and taxable wage bases; excluding
COVID-19 related claims from the employer experience rating from certain
calendar years; appropriating money.

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

Section 1. new text beginUNEMPLOYMENT BASE TAX RATE AND ASSESSMENT FOR
CALENDAR YEAR 2022.
new text end

new text begin Subdivision 1. new text end

new text begin 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 one-tenth of one percent.
new text end

new text begin Subd. 2. new text end

new text begin 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 EFFECTIVE DATE. new text end

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

Sec. 2. new text beginCALENDAR YEARS 2022 AND 2023 TEMPORARY EMPLOYER
EXPERIENCE RATING.
new text end

new text begin Unemployment insurance benefits paid as a result of an applicant not being able to work
directly or indirectly as a result of the COVID-19 pandemic must not be used in any
experience rating computation required under Minnesota Statutes, section 268.051,
subdivision 3, in calendar years 2022 and 2023.
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. 3. new text beginTAXABLE WAGES FOR CALENDAR YEAR 2022.
new text end

new text begin Notwithstanding Minnesota Statutes, section 268.035, subdivision 24, for calendar year
2022, "taxable wages" means wages paid to an employee in covered employment, up to
$35,000.
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. 4. new text beginUNEMPLOYMENT INSURANCE TAXES FOR CALENDAR YEAR 2023.
new text end

new text begin Subdivision 1. new text end

new text begin Base rate and additional assessment. new text end

new text begin Notwithstanding Minnesota
Statutes, section 268.051, subdivision 2, paragraphs (b) and (c), the base rate and additional
assessment, if any, for calendar year 2023 shall be based upon the amount in the trust fund
on the day following transfer of the funds to Minnesota's account in the Unemployment
Trust Fund in the United States Treasury as required under section 5 of this act.
new text end

new text begin Subd. 2. new text end

new text begin Special assessment. new text end

new text begin Notwithstanding Minnesota Statutes, section 268.051,
subdivision 8, the determination to impose a special assessment for interest on a federal
loan in calendar year 2023 shall be made on the later of October 31, 2022, or on the day
following transfer of the funds to Minnesota's account in the Unemployment Trust Fund in
the United States Treasury as required by section 5 of this act.
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 beginUNEMPLOYMENT TRUST FUND REPLENISHED; APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin American Rescue Plan Act of 2021 funding. new text end

new text begin If the federal government
does not forgive the amounts borrowed by the state from the federal Unemployment Trust
Fund since July 2020, $1,154,000,000 of the American Rescue Plan Act of 2021 funding
received by the state from the state recovery fund in Public Law 117-2 shall be used to
replenish the Unemployment Trust Fund. Notwithstanding any law to the contrary, this
federal money shall be applied to replenish the Unemployment Trust Fund, before any
additional assessment, special assessment, or other state unemployment tax rate increase is
calculated or imposed on taxpaying employers.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin Notwithstanding any law to the contrary, $1,154,000,000 in
fiscal year 2022 is appropriated from the fund or account where amounts received by the
state from the state recovery fund in Public Law 117-2 have been deposited 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, as provided under subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin In addition to the appropriation under subdivision 2,
$500,000,000 in fiscal year 2022 is appropriated from the general 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 EFFECTIVE DATE. new text end

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