SF 2677

1st Unofficial Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/26/2022 07:52pm

A bill for an act
relating to unemployment insurance; repaying unemployment insurance trust fund
loans; replenishing the unemployment insurance trust fund; freezing the base tax
rate for employers; eliminating the additional assessment for calendar years 2022
and 2023; establishing a zero percent special assessment rate for calendar year
2022; eliminating a revenue replacement transfer; appropriating money; amending
Minnesota Statutes 2020, 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 2020, section 268.085, subdivision 8;
Laws 2021, First Special Session chapter 12, article 5, section 3.

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

ARTICLE 1

UNEMPLOYMENT INSURANCE TRUST FUND

Section 1. new text begin APPROPRIATION; UNEMPLOYMENT INSURANCE TRUST FUND
LOAN REPAYMENT AND REPLENISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $2,324,175,000 from the state fiscal recovery federal
fund and $405,825,000 from the general fund in fiscal year 2022 are appropriated to the
commissioner of employment and economic development for the purposes of this section.
new text end

new text begin Subd. 2. new text end

new text begin Repayment. new text end

new text begin Within ten days following enactment of this section, the
commissioner must determine the sum of any outstanding loans and any interest accrued
on the loans from the federal unemployment insurance trust fund, and issue payments to
the federal unemployment trust fund equal to that sum.
new text end

new text begin Subd. 3. new text end

new text begin Replenishment. new text end

new text begin Following the full repayment of outstanding loans from the
federal unemployment insurance trust fund, the commissioner must deposit into the
unemployment insurance trust fund all the remaining money appropriated in this section.
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 UNEMPLOYMENT BASE TAX RATE AND ASSESSMENT FOR
CALENDAR YEARS 2022 AND 2023.
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 years 2022 and 2023, 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 Additional assessment. new text end

new text begin Notwithstanding Minnesota Statutes, section 268.051,
subdivision 2, in calendar years 2022 and 2023, 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, refunds. new text end

new text begin Notwithstanding any law to the contrary, the
commissioner of employment and economic development must credit or refund 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 one-tenth 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 EFFECTIVE DATE. new text end

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

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

new text begin Laws 2021, First Special Session chapter 12, article 5, section 3, 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

ARTICLE 2

FRONTLINE WORKER PAYMENTS

Section 1. new text begin FRONTLINE WORKER PAYMENTS; PUBLIC PURPOSE.
new text end

new text begin This act is intended to provide payments to frontline workers whose work put them at
risk of contracting COVID-19 during the peacetime emergency declared by the governor
in Executive Order 20-01. The legislature finds that payments under this section specifically,
and under the premium pay provisions of the American Rescue Plan Act of 2021 generally,
have a public purpose and benefit the people of Minnesota by:
new text end

new text begin (1) responding to the extraordinary circumstances of the COVID-19 pandemic which
resulted in the peacetime emergency; and
new text end

new text begin (2) compensating workers for working in conditions that, in many cases, exceeded what
was originally contemplated in their employment agreement to ensure our state was able to
continue functioning during the pandemic.
new text end

Sec. 2. new text begin FRONTLINE WORKER PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established; payments authorized. new text end

new text begin To the extent feasible, the
commissioner of revenue, in coordination with the commissioners of labor and industry and
employment and economic development, must make payments to eligible frontline workers
as provided in this section.
new text end

new text begin Subd. 2. new text end

new text begin Frontline sector defined. new text end

new text begin "Frontline sector" means the following sectors:
new text end

new text begin (1) long-term care and home care;
new text end

new text begin (2) health care;
new text end

new text begin (3) emergency responders;
new text end

new text begin (4) public health, social service, and regulatory service;
new text end

new text begin (5) courts and corrections;
new text end

new text begin (6) child care;
new text end

new text begin (7) schools, including charter schools, state schools, and higher education;
new text end

new text begin (8) food service, including production, processing, preparation, sale, and delivery;
new text end

new text begin (9) retail, including sales, fulfillment, distribution, and delivery;
new text end

new text begin (10) temporary shelters and hotels;
new text end

new text begin (11) building services, including maintenance, janitorial, and security;
new text end

new text begin (12) public transit;
new text end

new text begin (13) ground and air transportation services;
new text end

new text begin (14) manufacturing; and
new text end

new text begin (15) vocational rehabilitation.
new text end

new text begin Subd. 3. new text end

new text begin Eligible frontline workers. new text end

new text begin (a) An individual is eligible to receive a payment
under this section if the individual:
new text end

new text begin (1) was employed for at least 120 hours in Minnesota in one or more frontline sectors
during the time period beginning March 15, 2020, and ending June 30, 2021;
new text end

new text begin (2) for the hours worked under clause (1), was not able to telework due to the nature of
the individual's work and worked in close proximity to individuals outside of the individual's
household;
new text end

new text begin (3) meets the income requirement in paragraph (b); and
new text end

new text begin (4) did not receive an unemployment insurance benefit payment or serve a nonpayable
week under Minnesota Statutes, section 268.085, subdivision 1, clause (6), for more than
20 weeks on a cumulative basis for weeks between March 15, 2020, and June 26, 2021. An
unemployment insurance benefit payment shall include payments made by the state of
Minnesota under Minnesota Statutes, sections 268.001 to 268.23, pandemic emergency
unemployment compensation, extended benefits, pandemic unemployment assistance,
federal pandemic unemployment compensation, lost wages assistance, mixed earnings
unemployment compensation, and trade readjustment allowance. Unemployment insurance
benefit payments shall include the amounts withheld from an unemployment insurance
benefit payment for income tax, deducted for a child support obligation or an offset from
unemployment benefits under Minnesota Statutes, section 268.18, subdivision 3a.
Unemployment insurance benefit payments shall include amounts found to be overpaid
under Minnesota Statutes, section 268.18. The calculations under this clause shall be made
based exclusively on data held by DEED as of the effective date of this act.
new text end

new text begin (b) To qualify for a payment, an individual's adjusted gross income, as defined in
Minnesota Statutes, section 290.01, subdivision 21a, must be less than the following amounts
for at least one of the taxable years beginning after December 31, 2019, and before January
1, 2022:
new text end

new text begin (1) for an individual who was employed in an occupation with direct COVID-19 patient
care responsibilities, $350,000 for a married taxpayer filing a joint return and $175,000 for
all other filers; or
new text end

new text begin (2) for all other individuals, $185,000 for a married taxpayer filing a joint return and
$85,000 for all other filers.
new text end

new text begin Subd. 4. new text end

new text begin Application; verification of eligibility. new text end

new text begin (a) To qualify for a payment under
this section, an individual must apply to the commissioner of labor and industry in the form
and manner specified by the commissioner. As part of the application, an individual must
certify to the commissioner of labor and industry that the individual meets the eligibility
requirements in subdivision 3.
new text end

new text begin (b) As soon as practicable after final enactment of this act, the commissioner of labor
and industry must establish a process for accepting applications for payments under this
section and begin accepting applications. The commissioner must not accept an application
submitted more than 45 days after opening the application period.
new text end

new text begin (c) The commissioner of labor and industry must assist applicants in submitting an
application under this section, including but not limited to:
new text end

new text begin (1) establishing a multilingual temporary help line for applicants; and
new text end

new text begin (2) offering multilingual applications and multilingual instructions.
new text end

new text begin (d) To the extent possible, the commissioners of revenue, employment and economic
development, and labor and industry must verify applicant eligibility for a payment under
this section. If the commissioners lack the information to verify an applicant's eligibility in
a timely fashion, the commissioner of labor and industry must accept the applicant's
self-certification of eligibility in the absence of contrary information.
new text end

new text begin (e) An applicant for a payment under this section may appeal a denial of eligibility under
this subdivision to the commissioner of labor and industry within 15 days of notice of denial.
The commissioner of labor and industry's decision on an appeal is final.
new text end

new text begin (f) The commissioner of labor and industry may contract with a third party to implement
part or all of the application process and assistance required under this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Eligibility; payments. new text end

new text begin (a) After the deadline for applications under subdivision
4 has elapsed, the commissioner of revenue must determine the payment amount based on
available appropriations and the number of applications received from eligible frontline
workers. The payment amount must be the same for each eligible frontline worker and must
not exceed $1,500.
new text end

new text begin (b) As soon as practicable, the commissioner of revenue must make payments of the
amount determined under paragraph (a) to all eligible frontline workers who applied in
accordance with subdivision 4.
new text end

new text begin (c) The commissioner of revenue may contract with a third party to implement part or
all of the payment process required under this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Data practices. new text end

new text begin (a) Data collected or created by the commissioners of revenue,
labor and industry, and employment and economic development because an individual has
sought information about, applied for, been denied, or received a payment under this section
are classified as nonpublic data or private data on individuals, as defined in Minnesota
Statutes, section 13.02, subdivisions 9 and 12.
new text end

new text begin (b) Data classified as nonpublic data or private data on individuals, including return
information, as defined in Minnesota Statutes, section 270B.01, subdivision 3, may be
shared or disclosed between the commissioners of revenue, employment and economic
development, and labor and industry, and any third-party vendor contracted with under
subdivision 4, to the extent necessary to verify eligibility and administer payments under
this section.
new text end

new text begin Subd. 7. new text end

new text begin Notice requirement. new text end

new text begin (a) No later than 15 days after the application period is
opened under subdivision 4, employers in a frontline sector must provide notice, in a form
approved by the commissioner of labor and industry, advising all current workers who may
be eligible for payments under this section of the assistance potentially available to them
and how to apply for benefits. An employer must provide notice using the same means the
employer uses to provide other work-related notices to employees.
new text end

new text begin (b) Notice provided under paragraph (a) must be at least as conspicuous as:
new text end

new text begin (1) posting a copy of the notice at each work site where workers work and where the
notice may be readily observed and reviewed by all workers working at the site; or
new text end

new text begin (2) providing a paper or electronic copy of the notice to all workers.
new text end

new text begin (c) The commissioner of labor and industry may exercise the commissioner of labor and
industry's authority under Minnesota Statutes, section 177.27, subdivision 7, to enforce the
notice requirement in this subdivision.
new text end

new text begin Subd. 8. new text end

new text begin Payments not to be considered income. new text end

new text begin (a) For the purposes of this subdivision,
"subtraction" has the meaning given in Minnesota Statutes, section 290.0132, subdivision
1, and the rules in that subdivision apply for this subdivision. The definitions in Minnesota
Statutes, section 290.01, apply to this subdivision.
new text end

new text begin (b) The amount of frontline worker payments received under this section is a subtraction.
new text end

new text begin (c) Frontline worker payments under this section are excluded from income, as defined
in Minnesota Statutes, sections 290.0674, subdivision 2a, and 290A.03, subdivision 3.
new text end

new text begin (d) Notwithstanding any law to the contrary, payments under this section must not be
considered income, assets, or personal property for purposes of determining eligibility or
recertifying eligibility for:
new text end

new text begin (1) child care assistance programs under Minnesota Statutes, chapter 119B;
new text end

new text begin (2) general assistance, Minnesota supplemental aid, and food support under Minnesota
Statutes, chapter 256D;
new text end

new text begin (3) housing support under Minnesota Statutes, chapter 256I;
new text end

new text begin (4) Minnesota family investment program and diversionary work program under
Minnesota Statutes, chapter 256J; and
new text end

new text begin (5) economic assistance programs under Minnesota Statutes, chapter 256P.
new text end

new text begin (e) The commissioner of human services must not consider frontline worker payments
under this section as income or assets under Minnesota Statutes, section 256B.056,
subdivision 1a, paragraph (a); 3; or 3c, or for persons with eligibility determined under
Minnesota Statutes, section 256B.057, subdivision 3, 3a, or 3b.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin No later than 90 days following the end of the payments to eligible
frontline workers under subdivision 5, the commissioners of revenue and labor and industry
shall report to the legislative committees with jurisdiction over economic development
policy and finance about the program established under this section. The report must include:
new text end

new text begin (1) the number of eligible frontline workers who applied, including the number in each
sector and county, and the payment each worker received;
new text end

new text begin (2) if the initial payment to frontline workers under subdivision 5 was less than $1,500,
the additional appropriation needed to provide an additional payment equal to the difference
between $1,500 and the payment amount under subdivision 5; and
new text end

new text begin (3) the number of applications that were denied and the reason for denial.
new text end

new text begin Subd. 10. new text end

new text begin Procurement. new text end

new text begin The commissioners of labor and industry and revenue are
exempt from the requirements of Minnesota Statutes, sections 16A.15, subdivision 3; 16B.97;
and 16B.98, subdivisions 5, 7, and 8; and chapter 16C, and any other state procurement
laws and procedures in administering the program under this section.
new text end

new text begin Subd. 11. new text end

new text begin Appropriations. new text end

new text begin (a) $1,000,000,000 in fiscal year 2022 is appropriated from
the general fund to the commissioner of revenue for payments under this section. This is a
onetime appropriation.
new text end

new text begin (b) $11,650,000 in fiscal year 2022 is appropriated from the general fund to the
commissioner of labor and industry for administrative costs to implement the payments
under this section.
new text end

new text begin (c) The commissioner of labor and industry may transfer money from this appropriation
to the commissioner of revenue or the commissioner of employment and economic
development for administrative costs to implement the program and payments under this
section.
new text end

new text begin (d) $756,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
of labor and industry for a grant to the Minnesota Training Partnership to promote the
availability of payments under this section to frontline workers, which may include
subcontracts with other community organizations with experience with frontline workers.
Up to ten percent of the total of any subcontracts may be used for contract administration.
new text end

new text begin (e) The appropriations in this subdivision are available until June 30, 2023.
new text end

new text begin Subd. 12. new text end

new text begin Audit. new text end

new text begin The Office of the Legislative Auditor may begin work on an audit of
the use of all funds appropriated under subdivision 11 no later than February 1, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) Unless otherwise specified, this section is effective the day
following final enactment.
new text end

new text begin (b) Subdivision 8, paragraphs (a), (b), and (c), are effective for taxable years beginning
after December 31, 2021, and before January 1, 2024, for property tax refunds based on
rent paid in 2021 or 2022, and for property tax refunds based on property taxes payable in
2022 or 2023. Subdivision 8, paragraphs (d) and (e), are effective the day following final
enactment, except for a program for which federal approval is required, changes affecting
the program are effective upon federal approval.
new text end

Sec. 3. new text begin APPROPRIATIONS GIVEN EFFECT ONCE.
new text end

new text begin If an appropriation in this act is enacted more than once during the 2022 regular session,
the appropriation is to be given effect only once.
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 3

UNEMPLOYMENT INSURANCE FOR HOURLY SCHOOL WORKERS AND USE
OF DATA

Section 1.

Minnesota Statutes 2020, 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: (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.
new text end

Sec. 2.

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 whose last employment
was with an employer defined in section 123A.24, subdivision 2, or 123A.55.
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. 3.

Minnesota Statutes 2020, 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 new text begin and other cash assistance programs, the supplemental nutrition assistance program,
and the supplemental nutrition assistance program employment and training program new text end 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 deleted text begin . deleted text end new text begin ;
new text end

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

new text begin (19) the attorney general for the purpose of conducting an investigation pursuant to
section 177.45 or 181.1721.
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.

Sec. 4.

new text begin [268.193] SCHOOL REIMBURSEMENT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section only, the following terms
have the meanings given:
new text end

new text begin (1) "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 to an
educational institution under section 268.047 for an applicant who is in a position for which
no license is required by the Professional Educator Licensing and Standards Board or the
Board of School Administrators and whose last employment was with an employer defined
in section 123A.24, subdivision 2, or 123A.55.
new text end

new text begin Subd. 2. new text end

new text begin School reimbursement account. new text end

new text begin (a) There is created in the special revenue
fund an account to be known as the "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 section, unless otherwise appropriated by law. Funds appropriated for the
purposes of reimbursement under this section must be transferred to the school reimbursement
account in the special revenue fund.
new text end

new text begin (b) Money in the account is appropriated to the commissioner of education to reimburse
educational institutions for payments of qualifying unemployment benefits as provided
under subdivision 3.
new text end

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

new text begin Subd. 3. new text end

new text begin Reimbursement administered. new text end

new text begin (a) The commissioner of employment and
economic development shall compute and certify the total qualifying unemployment benefit
payments credited to the reimbursable account of an educational institution under section
268.045 each calendar quarter and share and transmit that certified amount to the
commissioner of education for the purpose of reimbursement under this subdivision.
new text end

new text begin (b) The commissioner of education shall issue payment of the reimbursement amounts
certified under paragraph (a) to each educational institution on or before the last day of the
month following the end of the next calendar quarter, as provided under this subdivision.
new text end

new text begin (c) The commissioner of education shall use money deposited in the school
reimbursement account to reimburse educational institutions for the qualifying unemployment
benefits certified under this subdivision.
new text end

new text begin (d) If the certified reimbursement amounts under this subdivision exceed the money
available in the school reimbursement account, reimbursement amounts shall be dispersed
to educational institutions on a pro rata basis.
new text end

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin (a) $161,743,000 in fiscal year 2023 is appropriated from the general fund to the
commissioner of education for the purposes of reimbursement to educational institutions
as provided under Minnesota Statutes, section 268.193. This is a onetime appropriation and
is available until expended.
new text end

new text begin (b) This appropriation is subject to the requirements under Minnesota Statutes, section
268.193.
new text end

Sec. 6. 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: UES2677-1

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.

Repealed Minnesota Session Laws: UES2677-1

Laws 2021, First Special Session chapter 12, article 5, section 3

Sec. 3. new text begin REVENUE REPLACEMENT; AMERICAN RESCUE PLAN ACT STATE FISCAL RECOVERY FEDERAL FUND. new text end

new text begin Subdivision 1. new text end

new text begin Transfer. new text end

new text begin $633,100,000 in fiscal year 2023 and $550,000,000 in fiscal year 2024 are transferred from the state fiscal recovery federal fund to the general fund for the provision of government services. The fiscal year 2024 transfer must occur prior to December 15, 2024. The transfers in this subdivision are onetime. new text end

new text begin Subd. 2. new text end

new text begin State appropriation alternative. new text end

new text begin (a) If the commissioner of management and budget determines that the transfers in subdivision 1 are ineligible uses of the state fiscal recovery federal fund, the transfers in subdivision 1 are canceled, and $633,100,000 is appropriated from the state fiscal recovery federal fund in fiscal year 2022 to the commissioner of management and budget to replace eligible general fund appropriations in the biennium beginning July 1, 2021. Money appropriated to the commissioner of management and budget is available in either year of the biennium and may be disbursed or transferred to state agencies as necessary. The general fund appropriations being replaced are canceled. The commissioner of management and budget must determine eligible appropriations consistent with Public Law 117-2, and its corresponding guidance for use of the state fiscal recovery federal fund. For purposes of this subdivision, an ineligible use includes one that violates a maintenance of effort requirement. new text end

new text begin (b) If the commissioner of management and budget implements the appropriations in paragraph (a), the commissioner must cancel $550,000,000 of the forecasted general fund appropriations in the biennium beginning July 1, 2023, that are eligible to be replaced with the state fiscal recovery federal fund, under Public Law 117-2, and its corresponding guidance consistent with the method used in paragraph (a). The commissioner must allocate $550,000,000 from the state fiscal recovery federal fund from the biennium beginning July 1, 2023, to replace the canceled general fund appropriations. The allocations made by the commissioner are appropriated in fiscal year 2024 from the state fiscal recovery federal fund and are available in either year of the biennium, but must be obligated by December 31, 2024. This is a onetime appropriation. new text end

new text begin (c) Prior to implementing any appropriations or planning estimates under this subdivision, the commissioner of management and budget must submit the proposed appropriation and planning estimate changes to the Legislative Advisory Commission for review. Legislative Advisory Commission members have up to ten days to submit any recommendations regarding the appropriations to the commissioner. new text end

new text begin Subd. 3. new text end

new text begin General fund restoration. new text end

new text begin If general fund appropriations in subdivisions 2 and 3 are reduced or replaced with state fiscal recovery federal fund appropriations, those state fiscal recovery federal fund appropriations are onetime for those years indicated, and the general fund appropriation base amounts are reinstated in subsequent fiscal years. 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