SF 2677

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/29/2022 08:36pm

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

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

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 $2,321,526,000 from the state fiscal recovery federal
fund and $408,474,000 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 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

APPENDIX

Repealed Minnesota Session Laws: S2677-2

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