SF 4564

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 12/18/2020 09:01am

A bill for an act
relating to coronavirus relief; establishing funds; providing distributions to counties,
cities, and towns; providing workers' compensation COVID-19 reimbursements;
requiring a report; appropriating money.

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

Section 1. CORONAVIRUS RELIEF FEDERAL FUND.

The coronavirus relief federal fund is created in the state treasury. All money received
by the state under Public Law 116-136 must be credited to the coronavirus relief federal
fund. Notwithstanding Minnesota Statutes, sections 3.3005 and 4.07, subdivision 3, money
in the fund must not be spent except pursuant to a direct appropriation by law. Money in
the fund is to pay expenses incurred by the state for the infectious disease known as
COVID-19. When all money credited to the fund has been spent, the commissioner of
management and budget shall close the fund.

Sec. 2. CORONAVIRUS RELIEF FUND; LOCAL GOVERNMENT
DISTRIBUTIONS.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the terms in this
subdivision have the meanings given them.

(b) "Commissioner" means the commissioner of revenue.

(c) "Eligible city" means a city whose home county is an eligible county.

(d) "Eligible county" means a Minnesota county with a population less than 500,000.

(e) "Eligible town" means a town in an eligible county.

(f) "Population" means, for a city or a town, the most recently available 2018 population
estimate from the state demographer as of May 1, 2020. Population means, for a county,
the population as measured by the United States Census Bureau in 2019 and used to calculate
aid amounts under Public Law 116-136.

Subd. 2.

Local government distribution amounts.

(a) The distribution amount for an
eligible town equals the greater of: (1) $2,500; or (2) the product of: (i) the town's population;
and (ii) $25.

(b) The distribution amount for an eligible city equals the greater of: (1) $5,000; or (2)
the product of: (i) the city's population; and (ii) $87.

(c) The distribution amount for an eligible county equals the difference between the
county initial distribution amount and the county subtraction amount. The county initial
distribution amount equals the product of: (1) the county's population; and (2) $174.49. The
county subtraction amount equals: (1) the sum of the distribution amounts attributable to
any eligible town in the county; plus (2) the sum of the distribution amounts attributable to
the population of any portion of an eligible city in the county.

Subd. 3.

Distribution schedule.

The commissioner must distribute the amounts calculated
under this section no later than June 15, 2020.

Subd. 4.

Allowable uses.

The local government must use aid distributions under this
section for purposes consistent with the requirements of Public Law 116-136. Prior to
distributing the aid, the commissioner must require each eligible local government to certify
its intent to comply with the requirements of this section. The certification must be in the
form and manner determined by the commissioner.

Subd. 5.

Local government collaborative agreement.

A local government may enter
into a collaborative agreement with one or more other local governments to share aid
distributions under this section, consistent with subdivision 4. The commissioner may require
each local government to provide information about the agreement in the form and manner
determined by the commissioner.

Subd. 6.

Expenditure time limits.

(a) Any aid amount remaining unexpended by the
local government on November 1, 2020, must be returned to the commissioner and is
canceled to the coronavirus relief federal fund.

(b) Notwithstanding paragraph (a), any aid amount remaining unexpended by the local
government on December 15, 2020, for a local government that has entered into an agreement
under subdivision 5 must be returned to the commissioner and is canceled to the coronavirus
relief federal fund.

Subd. 7.

Hennepin County and Ramsey County distributions to cities and
towns.

Hennepin County and Ramsey County must distribute aid to cities and towns in the
county. The aid amounts for each city and town must be calculated by the county as if those
cities and towns were eligible for a distribution from the state under the formula provided
in subdivision 2, paragraphs (a) and (b). The county must distribute the amounts calculated
to cities and towns no later than the date indicated in subdivision 3. For a joint city having
any population in Hennepin County or Ramsey County, the county must distribute aid
attributable to the population of the portion of the joint city in the county.

Subd. 8.

Repayment of improperly spent federal funds.

(a) For purposes of this
subdivision, "local government unit" means a county, city, or town.

(b) The commissioner must recoup money from a local government unit if:

(1) the Inspector General of the Department of the Treasury has determined that the state
of Minnesota is subject to recoupment of funds under Public Law 116-136; and

(2) the recoupment is the result of the failure of a local government unit to expend money
distributed under this section consistent with the requirements of Public Law 116-136.

(c) The commissioner must certify the amount to be repaid by each local government
unit. The amount of the repayment required from each local government unit must be equal
to the state recoupment amount attributable to that local government unit. For the purposes
of this paragraph, "state recoupment amount" means the total of the amounts determined
under paragraph (b).

(d) A local government unit must repay the required amount to the state in full within
90 days of the commissioner's certification under paragraph (b). A local government may
apply to the commissioner in the form and manner determined by the commissioner for an
alternative repayment schedule, not to exceed five years.

(e) Any amounts recouped by the state must be credited to the fund from which the state
paid the amounts recouped by the Department of the Treasury.

Subd. 9.

Appropriation.

$667,156,931 in fiscal year 2020 is appropriated from the
coronavirus relief federal fund to the commissioner of revenue for aid distributions under
this section. If the appropriation in this subdivision exceeds the amount required to fund
the distributions in this section, any remaining balance must cancel to the coronavirus relief
federal fund. If the appropriation in this subdivision is less than the amount to fund the
distributions in this section, the commissioner must proportionally reduce the per capita
allowances in subdivision 2 and distribute the available appropriation. This is a onetime
appropriation.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3. WORKERS' COMPENSATION COVID-19 REIMBURSEMENT.

Subdivision 1.

Fund created.

The workers' compensation COVID-19 reimbursement
fund is created in the state treasury to reimburse workers' compensation providers for
COVID-19 workers' compensation costs paid with respect to employees in job classifications
entitled to the presumption established by Laws 2020, chapter 72, section 1. The fund shall
be managed by the Minnesota State Board of Investment. Reimbursements shall be made
from the fund to eligible workers' compensation providers by the commissioner of labor
and industry.

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.

(b) "Commissioner" means the commissioner of labor and industry.

(c) "Employee" has the meaning given in Minnesota Statutes, section 176.011, subdivision
9.

(d) "Employer" has the meaning given in Minnesota Statutes, section 176.011, subdivision
10.

(e) "Fund" means the workers' compensation COVID-19 reimbursement fund created
in subdivision 1.

(f) "Local government" means a statutory or home rule charter city, a county, a school
district, a town, or an instrumentality of any of the foregoing.

(g) "Presumptive classes" means the employee occupations specified in the presumption
established in Laws 2020, chapter 72, section 1.

(h) "Workers' compensation costs" means the actual loss amount that a workers'
compensation provider is obligated to pay and that is paid by the provider for workers'
compensation benefits payable under Minnesota Statutes, chapter 176.

(i) "Workers' compensation provider" means an employer or other entity providing
workers' compensation coverage to employees that are included in the presumptive classes
and that is: (1) a self-insured local government entity; (2) a local government self-insurance
pool created pursuant to Minnesota Statutes, section 471.981; (3) a self-insurer authorized
under Minnesota Statutes, section 176.181; or (4) an insurance carrier authorized to insure
workers' compensation in this state.

Subd. 3.

Reimbursement eligibility threshold amounts.

(a) A workers' compensation
provider shall be eligible for reimbursement for COVID-19 workers' compensation costs
for presumptive classes in excess of the deductible amounts listed as provided in paragraphs
(b) and (c).

(b) A workers' compensation provider that is a self-insured local government entity,
local government self-insurance pool, or a self-insurer having an annual premium of less
than $5,000,000 is eligible for reimbursement from the fund when the workers' compensation
provider has paid total COVID-19-related workers' compensation costs of $100,000 for
claims arising from an employee or employees in a presumptive class.

(c) A workers' compensation provider other than a workers' compensation provider
described in paragraph (b) is eligible for reimbursement from the fund when the workers'
compensation provider has paid total COVID-19-related workers' compensation costs of
$1,000,000 for claims arising from an employee or employees in a presumptive class.

Subd. 4.

Submission for reimbursement.

A workers' compensation provider shall
submit to the commissioner in a format prescribed by the commissioner information regarding
the amounts in excess of the deductible provided in subdivision 3 to be reimbursed from
the fund. The commissioner shall make reimbursements to workers' compensation providers
on a first-come, first-served basis. No funds may be reimbursed after December 30, 2020.

Subd. 5.

Amounts from other insurance.

Reimbursement from the fund to a workers'
compensation provider under this section shall be reduced by any amounts received from
the Workers' Compensation Reinsurance Association created under Minnesota Statutes,
section 79.34, or other third-party sources and made to the workers' compensation provider
as a result of a COVID-19-related workers' compensation claim arising from an employee
or employees in a presumptive class.

Subd. 6.

Aggregation of claims.

Claims paid to employees within presumptive classes
may be aggregated and count toward the deductible amounts specified in subdivision 3,
paragraphs (b) and (c).

Subd. 7.

Report to legislature.

By August 1, 2020, November 1, 2020, and January 15,
2021, the commissioner shall report to the legislature regarding reimbursements paid to
workers' compensation providers under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4. APPROPRIATION; WORKERS' COMPENSATION COVID-19
REIMBURSEMENTS.

$375,000,000 in fiscal year 2020 is appropriated from the coronavirus relief federal fund
to the commissioner of management and budget for deposit in the workers' compensation
COVID-19 reimbursement fund to provide reimbursements as specified in section 3. This
is a onetime appropriation. Funds are available until December 30, 2020.

EFFECTIVE DATE.

This section is effective the day following final enactment.