SF 3923

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/18/2022 10:28am

A bill for an act
relating to economic development; 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;
authorizing payments for frontline workers whose work put them at risk of
contracting COVID-19 during peacetime emergency; classifying data; requiring
a report; 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 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. 4. 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; and
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 collect unemployment insurance benefits for more than 20 weeks on a
cumulative basis during the time period beginning March 15, 2020, and ending June 30,
2021.
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 (c) A married individual who filed a separate return may elect to use the income limit
for a married taxpayer filing a joint return for the purposes of determining eligibility under
paragraph (b). For an individual who made this election, the commissioner of revenue must
compare the combined income of the taxpayer and the taxpayer's spouse with the income
limit for a married taxpayer filing a joint return.
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) If the full appropriation for payments is not expended after the initial round of
payments under paragraphs (a) and (b), the commissioner of labor and industry must reopen
the application period and allow eligible frontline workers who have not received a payment
to apply for a payment. The commissioner of revenue must make payments of $1,500 for
all eligible frontline workers who apply under this paragraph, until the full appropriation is
expended.
new text end

new text begin (d) 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 private data on individuals or nonpublic data, as defined in Minnesota
Statutes, section 13.02, subdivisions 9 and 12.
new text end

new text begin (b) Data classified as private data on individuals or nonpublic data, 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 45 days following the end of the application period under
subdivision 4, 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 reasons 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;
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) $2,480,000 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) $1,992,000 in fiscal year 2022 is appropriated from the general fund to the
commissioner of revenue for administrative costs to implement the 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. 5. 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: 22-07046

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