SF 3554

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to reemployment compensation; modifying 
  1.3             nonprofit organization provisions; instructing the 
  1.4             revisor to change certain terms; amending Minnesota 
  1.5             Statutes 1999 Supplement, sections 268.03, subdivision 
  1.6             1; and 268.053, subdivision 1, and by adding a 
  1.7             subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.10  268.03, subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [STATEMENT.] The public policy underlying 
  1.12  sections 268.03 to 268.23 is as follows:  Economic insecurity 
  1.13  due to involuntary unemployment is a serious threat to the 
  1.14  well-being of the people of Minnesota.  Involuntary unemployment 
  1.15  is a subject of general interest and concern that requires 
  1.16  appropriate action by the legislature to prevent its spread and 
  1.17  to lighten its burdens.  The public good and the well-being of 
  1.18  the citizens of Minnesota will be promoted by providing, under 
  1.19  the taxing powers of the state for the compulsory setting aside 
  1.20  of reserves to be used for the benefit of payment of 
  1.21  unemployment benefits to individuals unemployed through no fault 
  1.22  of their own.  In recognition of its focus on 
  1.23  providing Unemployment benefits are a temporary partial wage 
  1.24  replacement to assist the unemployed worker to become 
  1.25  reemployed,.  This program will be known as "reemployment 
  1.26  compensation the "Minnesota unemployment insurance program." 
  2.1      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.2   268.053, subdivision 1, is amended to read: 
  2.3      Subdivision 1.  [ELECTION.] (a) Any nonprofit organization 
  2.4   that has employees in covered employment shall pay taxes on a 
  2.5   quarterly basis pursuant to section 268.051 unless it elects to 
  2.6   make payments in lieu of taxes to the fund the amount of 
  2.7   benefits charged to its employer account under section 268.047. 
  2.8      The organization may elect to make payments in lieu of 
  2.9   taxes for a period of not less than three two calendar years 
  2.10  beginning with the date that the organization was determined to 
  2.11  be an employer with covered employment by filing a notice of 
  2.12  election not later than 30 calendar days after the date of the 
  2.13  determination. 
  2.14     (b) Any nonprofit organization that makes an election will 
  2.15  continue to be liable for payments in lieu of taxes until it 
  2.16  files a notice terminating its election not later than 30 
  2.17  calendar days before the beginning of the calendar year the 
  2.18  termination is to be effective.  
  2.19     (c) A nonprofit organization that has been making payments 
  2.20  in lieu of taxes that files a notice of termination of election 
  2.21  shall be assigned the new employer tax rate under section 
  2.22  268.051, subdivision 5, for the calendar year of the termination 
  2.23  of election and until it qualifies for an experience rating 
  2.24  under section 268.051, subdivision 3. 
  2.25     (d) Any nonprofit organization that has been paying taxes 
  2.26  may elect to make payments in lieu of taxes by filing no less 
  2.27  than 30 calendar days before January 1 of any calendar year a 
  2.28  notice of election.  Upon election, the commissioner shall 
  2.29  establish a reimbursable account for the nonprofit 
  2.30  organization.  An election shall be allowed only if the 
  2.31  nonprofit organization has a zero, during the experience rating 
  2.32  and has no period under section 268.051, subdivision 3, paid 
  2.33  taxes or made voluntary payments under section 268.051, 
  2.34  subdivision 7, equal to or more than 125 percent of the benefit 
  2.35  charges during the experience rating period.  In addition, any 
  2.36  benefit charges to its tax account that have not yet been used 
  3.1   in computing an come after the experience rating under section 
  3.2   268.051, subdivision 3 period shall be transferred to the new 
  3.3   reimbursable account of the nonprofit organization.  If the 
  3.4   amount of taxes and voluntary payments paid during the 
  3.5   experience rating period exceeds 125 percent of the amount of 
  3.6   benefit charges during the experience rating period, that amount 
  3.7   in excess shall be applied against any benefit charges that come 
  3.8   after the experience rating period.  The election shall not be 
  3.9   terminable by the organization for that and the next calendar 
  3.10  year. 
  3.11     (e) The commissioner may for good cause extend the period 
  3.12  that a notice of election, or a notice of termination, must be 
  3.13  filed and may permit an election to be retroactive. 
  3.14     (f) The commissioner may allow a notice of election or 
  3.15  notice terminating election to be filed by mail or electronic 
  3.16  transmission. 
  3.17     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  3.18  268.053, is amended by adding a subdivision to read: 
  3.19     Subd. 5.  [COMPROMISE.] The compromise authority set out in 
  3.20  section 268.067 applies to this section. 
  3.21     Sec. 4.  [INSTRUCTIONS TO REVISOR.] 
  3.22     The revisor of statutes shall change the phrase listed in 
  3.23  column A, or a similar phrase, to the phrase listed in column B, 
  3.24  or a similar phrase, wherever it appears in Minnesota Statutes 
  3.25  and Minnesota Rules. 
  3.26       Column A                          Column B
  3.27       reemployment compensation         unemployment insurance
  3.28         benefit laws                      program
  3.29       reemployment compensation         unemployment insurance
  3.30         law                               program
  3.31       reemployment compensation         unemployment insurance
  3.32         program                           program
  3.33       reemployment compensation         unemployment benefits
  3.34     The revisor of statutes shall change the phrase listed in 
  3.35  column A, or a similar phrase, to the phrase listed in column B, 
  3.36  or a similar phrase, wherever it appears in Minnesota Statutes, 
  4.1   sections 268.03 to 268.23, and wherever it appears in Minnesota 
  4.2   Rules. 
  4.3        Column A                          Column B
  4.4        reemployment compensation         unemployment law judge
  4.5          judge
  4.6        reemployment compensation         unemployment insurance
  4.7          trust fund                        program trust fund
  4.8        reemployment compensation         unemployment benefits
  4.9          benefits
  4.10       minimum tax rate                  base tax rate
  4.11       federal economic security         federal unemployment
  4.12         law                               insurance program
  4.13     The revisor of statutes shall change the term "benefit" to 
  4.14  "unemployment benefit" wherever it appears in Minnesota 
  4.15  Statutes, sections 268.03 to 268.23, except when "benefit" 
  4.16  refers to "shared work benefit," "social security benefit," 
  4.17  "disability benefit," "benefit year," "benefit account," or 
  4.18  "fringe benefit." 
  4.19     Sec. 5.  [EFFECTIVE DATE.] 
  4.20     Sections 1 to 4 are effective the day following final 
  4.21  enactment.