HF 2032

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/10/2016 07:19am

A bill for an act
relating to unemployment insurance; providing for extended benefits; reducing
unemployment insurance taxes; amending Minnesota Statutes 2014, section
268.051, by adding a subdivision.

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

ARTICLE 1

IRON MINING

Section 1. new text begin IRON ORE MINING INDUSTRY EXTENDED UNEMPLOYMENT
BENEFITS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Availability of extended unemployment benefits. new text end

new text begin Extended
unemployment benefits are available from the Minnesota unemployment insurance trust
fund to an applicant who was laid off due to lack of work after March 1, 2015, from an
iron ore mining industry employer or from an employer that is a supplier of goods or
services that are directly related to the extraction or processing of iron ore.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility requirements. new text end

new text begin An applicant is eligible to receive extended
unemployment benefits under this section for any week through the week ending June 25,
2017, if:
new text end

new text begin (1) the applicant established a benefit account under Minnesota Statutes, section
268.07, with a majority of the wage credits from an employer described in subdivision 1,
and has exhausted the maximum amount of regular unemployment benefits available on
that benefit account; and
new text end

new text begin (2) the applicant meets the same requirements that an applicant for regular
unemployment benefits must meet under Minnesota Statutes, section 268.069, subdivision
1.
new text end

new text begin Subd. 3. new text end

new text begin Weekly and maximum amount of extended unemployment benefits. new text end

new text begin (a)
The weekly benefit amount of extended unemployment benefits is the same as the weekly
benefit amount of regular unemployment benefits on the benefit account established in
subdivision 2, clause (1).
new text end

new text begin (b) The maximum amount of extended unemployment benefits available to an
applicant under this section is an amount equal to 26 weeks of payment at the applicant's
weekly extended unemployment benefit amount.
new text end

new text begin (c) If an applicant qualifies for a new regular benefit account that meets the
requirements of subdivision 4, paragraph (b), before the applicant has been paid extended
unemployment benefits, and that new regular benefit account meets the requirements of
subdivision 2, clause (1), the applicant's weekly extended unemployment benefit amount
must be equal to the weekly unemployment benefit amount on the applicant's new regular
benefit account.
new text end

new text begin Subd. 4. new text end

new text begin Qualifying for a new regular benefit account. new text end

new text begin (a) If, after exhausting
the maximum amount of regular unemployment benefits available as a result of the
layoff under subdivision 1, an applicant qualifies for a new regular benefit account under
Minnesota Statutes, section 268.07, the applicant must apply for and establish that new
regular benefit account.
new text end

new text begin (b) If the applicant's weekly benefit amount under the new regular benefit account is
equal to or higher than the applicant's weekly extended unemployment benefit amount,
the applicant must request unemployment benefits under the new regular benefit account.
An applicant is ineligible for extended unemployment benefits under this section until
the applicant has exhausted the maximum amount of unemployment benefits available on
the new regular benefit account.
new text end

new text begin (c) If the applicant's weekly unemployment benefit amount on the new regular benefit
account is less than the applicant's weekly benefit amount of extended unemployment
benefits, the applicant must request extended unemployment benefits. An applicant is
ineligible for new regular unemployment benefits until the applicant has exhausted the
maximum amount of extended unemployment benefits available under this section.
new text end

new text begin Subd. 5. new text end

new text begin Eligibility for federal Trade Adjustment Assistance Program benefits.
new text end

new text begin An applicant who has applied and been determined eligible for federal Trade Adjustment
Assistance Program benefits is not eligible for extended unemployment benefits under
this section.
new text end

new text begin Subd. 6. new text end

new text begin Effect on employer. new text end

new text begin Benefits paid under this section must not be used in
computing the employer's future tax rate under Minnesota Statutes, section 268.047.
new text end

new text begin Subd. 7. new text end

new text begin Legislative findings. new text end

new text begin (a) The legislature finds that the state greatly benefits
from the diversification of the state's mineral economy through long-term support of
mineral exploration, evaluation, environmental research, development, production, and
commercialization.
new text end

new text begin (b) The legislature further finds that maintaining and supporting a trained and
skillful mining workforce is critical to the long-term health and viability of the state's
mineral economy.
new text end

new text begin (c) The legislature finds that the best way to maintain a trained and skillful mining
workforce in the state is to make all reasonable efforts to facilitate the continued operation
of existing mines and the addition of new mines whenever feasible.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and is retroactive from August 31, 2015.
new text end

ARTICLE 2

UNEMPLOYMENT INSURANCE

Section 1.

Minnesota Statutes 2014, section 268.051, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Unemployment insurance tax reform. new text end

new text begin (a) If the balance in the trust fund
on December 31 of any calendar year exceeds the average high cost multiple of 1.0,
future unemployment taxes payable must be reduced by all amounts above 1.0. The
amount of tax reduction for any taxpaying employer is the same percentage of the total
amount above 1.0 as the percentage of taxes paid by the employer for the prior calendar
year is of the total amount of taxes paid by nonmaximum experience rated employers for
the prior calendar year.
new text end

new text begin (b) This subdivision only applies if the balance in the trust fund on December 31 is
four percent or more above the average high cost multiple of 1.0.
new text end

new text begin (c) For the purposes of this subdivision, "average high cost multiple" has the same
meaning as given in Code of Federal Regulations, title 20, section 606.3, as amended
through the effective date of this section.
new text end

new text begin (d) This subdivision does not apply to employers that are at the maximum experience
rating for the calendar year, nor to high experience rating industry employers under
subdivision 5, paragraph (b). Computations under paragraph (a) are not subject to the
rounding requirement of section 268.034. The refund provisions of section 268.057,
subdivision 7, do not apply. Computations under paragraph (a) are based upon taxes paid
on or before February 15 of the calendar year.
new text end

new text begin (e) The unemployment tax reduction under this subdivision applies to taxes paid
between March 1 and December 15 of the year following the December 31 calculation
under paragraph (a).
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 2016 UNEMPLOYMENT INSURANCE TAX REFORM.
new text end

new text begin (a) The provisions in this section apply notwithstanding any law to the contrary.
new text end

new text begin (b) Unemployment insurance taxes must be reduced by the amount of money in the
Minnesota unemployment insurance trust fund as of December 31, 2015, in excess of one
percent of total wages in covered employment for the calendar year beginning January 1,
2014. The amount of tax reduction for any taxpaying employer is the same percentage of
the total amount above one percent as the percentage of taxes paid by the employer for
the prior calendar year is of the total amount of taxes paid by nonmaximum experience
rated employers for the prior calendar year.
new text end

new text begin (c) This section does not apply to employers that are at the maximum experience
rating for calendar year 2015, nor to high experience rating industry employers under
Minnesota Statutes, section 268.051, subdivision 5, paragraph (b). Computations under
paragraph (b) are not subject to the rounding requirement of Minnesota Statutes, section
268.034. The refund provisions of Minnesota Statutes, section 268.057, subdivision 7,
do not apply. Computations under paragraph (b) are based upon taxes paid on or before
February 15 of the calendar year.
new text end

new text begin (d) The unemployment tax reduction under this section applies to taxes paid on or
after July 1, 2016, and is available until an employer eligible for a tax reduction under
this section has realized the full value of the reduction under paragraph (b), or June 30,
2017, whichever comes first.
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