268.194 Reemployment insurance fund.
Subdivision 1. Establishment; how constituted. There is hereby established as a special fund, separate and apart from all public money or funds of this state, a reemployment insurance fund, which shall be administered by the commissioner exclusively for the purpose of sections 268.03 to 268.23. This fund shall consist of:
(1) All taxes collected under those sections;
(2) Interest earned upon any money in the fund;
(3) Any property or securities acquired through the use of money belonging to the fund;
(4) All earnings of such property or securities;
(5) Any money received from the Federal Unemployment Account in the unemployment trust fund in accordance with Title XII of the Social Security Act, as amended, and any other money made available to the fund and received pursuant to an agreement, between this state and any agency of the federal government or any other state, for the payment of reemployment insurance benefits;
(6) All money recovered on losses sustained by the fund;
(7) All money credited to the account of this state in the unemployment trust fund pursuant to section 903 of the Social Security Act, as amended; and
(8) All money received for the fund from any other source.
All money in the fund shall be mingled and undivided.
Subd. 2. Commissioner of finance to be custodian; separate accounts. The commissioner of finance shall be the treasurer and custodian of the fund, administer the fund in accordance with the directions of the commissioner, and issue warrants upon it. The commissioner of finance shall maintain within the fund three separate accounts:
(1) a clearing account;
(2) an unemployment trust fund account; and
(3) a benefit account.
All money payable to the fund, upon receipt by the commissioner, shall be forwarded to the commissioner of finance who shall immediately deposit the money in the clearing account. All money in the clearing account, after clearance, shall, except as otherwise provided, be immediately deposited to the credit of the account of Minnesota in the federal unemployment trust fund. Refunds payable pursuant to section 268.057 may be paid from the clearing account or the benefit account. The benefit account shall consist of all money requisitioned from Minnesota's account in the federal unemployment trust fund for the payment of benefits. Money in the clearing and benefit accounts may be deposited by the commissioner of finance, under the direction of the commissioner, in any depository bank that general funds of Minnesota may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund. Money in the clearing and benefit accounts shall not be commingled with other state funds, but shall be maintained in separate accounts on the books of the depository bank. This money shall be secured by the depository bank to the same extent and in the same manner as required by the general depository law of Minnesota; and collateral pledged for this purpose shall be kept separate and distinct from any collateral pledged to secure other funds of Minnesota. All sums recovered for losses sustained by the fund shall be deposited in the fund.
Subd. 3. Withdrawals. (1) Money requisitioned from Minnesota's account in the federal unemployment trust fund shall be used exclusively for the payment of benefits and for refunds pursuant to section 268.057, except that money credited to Minnesota's account pursuant to United States Code, title 42, section 1103 of the Social Security Act, shall be used exclusively for the payment of expenses of administration. The commissioner shall from time to time requisition from the federal unemployment trust fund the amounts, not exceeding the amount in Minnesota's account, the commissioner considers necessary for the payment of benefits and refunds for a reasonable future period. Upon receipt the commissioner of finance shall deposit the money in the benefit account and issue warrants for the payment of benefits solely from the benefit account. Expenditures of money in the benefit account and refunds from the clearing account shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers. All warrants issued for the payment of benefits and refunds shall bear the signature of the commissioner of finance and the counter signature of the commissioner.
(2) Any balance of money requisitioned from the unemployment trust fund that remains unclaimed or unpaid in the benefit account after the expiration of the period for which the sums were requisitioned shall either be deducted from estimates for, and may be utilized for the payment of, benefits and refunds during following periods or, in the discretion of the commissioner, shall be redeposited in the federal unemployment trust fund, as provided in subdivision 2.
Subd. 3a. Reimbursements. The commissioner is authorized to make to other state or federal agencies and to receive from other state or federal agencies, reimbursements from or to the fund, in accordance with reciprocal arrangements entered into pursuant to section 268.131.
Subd. 4. Disposal of certain money. Any money made available to the reemployment insurance fund and received pursuant to an agreement between this state and any agency of the federal government or any other state for the payment of reemployment insurance benefits shall be placed directly in the benefit account of the unemployment trust fund.
Subd. 5. Payment of expenses of administration. (1) Money credited to the account of this state in the unemployment trust fund by the secretary of the treasury of the United States of America pursuant to section 903 of the Social Security Act, as amended, may be requisitioned and used for the payment of expenses incurred for the administration of Laws 1957, chapter 883 pursuant to a specific appropriation by the legislature, provided that the expenses are incurred and the money is requisitioned after the enactment of an appropriation law which:
(a) Specifies the purposes for which such money is appropriated and the amounts appropriated therefor.
(b) Limits the period within which such money may be obligated to a period ending not more than two years after the date of the enactment of the appropriation law, and
(c) Limits the amount which may be obligated during any 12-month period beginning on July 1 and ending on the next June 30 to an amount which does not exceed the amount by which (i) the aggregate of the amounts credited to the account of this state pursuant to section 903 of the Social Security Act, as amended, during the same 12-month period and the 34 preceding 12-month periods, exceeds (ii) the aggregate of the amounts used pursuant to this subdivision and charged against the amounts credited to the account of this state during any of such 35 12-month periods. For the purposes of this subdivision, amounts used during any such 12-month period shall be charged against equivalent amounts which were first credited and which are not already so charged; except that no amount obligated for administration during any such 12-month period may be charged against any amount credited during such a 12-month period earlier than the 24th preceding such period.
(2) Money credited to the account of this state pursuant to section 903 of the Social Security Act, as amended, may not be withdrawn or used except for the payment of benefits and for the payment of expenses for the administration of Laws 1957, chapter 883 and of public employment offices pursuant to this subdivision. Any moneys used for the payment of benefits may be restored for appropriation and use for administrative expenses upon request of the governor, under section 903(c) of the Social Security Act.
(3) Money requisitioned for the payment of expenses of administration pursuant to this subdivision shall be deposited in the economic security administration fund, but, until expended, shall remain a part of the reemployment insurance fund. The commissioner shall maintain a separate record of the deposit, obligation, expenditure, and return of funds so deposited. If any money so deposited is, for any reason, not to be expended for the purpose for which it was appropriated, or, if it remains unexpended at the end of the period specified by the law appropriating such money, it shall be withdrawn and returned to the secretary of the treasury of the United States for credit to this state's account in the unemployment trust fund.
Subd. 6. Advance on federal funds. (a) The governor is hereby authorized to make application as may be necessary to secure an advance of funds from the federal unemployment trust fund in accordance with United States Code, title 42, section 1321 of the Social Security Act.
(b) Any amount transferred to the fund under the terms of any application shall be repayable as provided in United States Code, title 42, sections 1101(d)(1), 1103(b)(2), and 1322 of the Social Security Act.
(c) Interest payable on any advance shall be paid in accordance with section 268.051, subdivision 8, paragraph (b).
HIST: Ex1936 c 2 s 3,11; 1937 c 306 s 8; 1937 c 452 s 1; 1939 c 443 s 2,9; 1941 c 554 s 2,10; 1943 c 650 s 8; 1945 c 376 s 2,10; 1947 c 432 s 8-10; 1949 c 605 s 2; 1953 c 97 s 3,4; 1957 c 883 s 2-5; 1961 c 517 s 1; 1965 c 45 s 45; 1969 c 9 s 64; 1969 c 310 s 1; 1969 c 567 s 3; 1971 c 942 s 13; 1975 c 302 s 1; 1979 c 181 s 16; 1Sp1982 c 1 s 4; 1983 c 216 art 1 s 87; 1983 c 372 s 8; 1985 c 248 s 70; 1Sp1985 c 13 s 300; 1986 c 444; 1989 c 209 art 2 s 1; 1994 c 488 s 8; 1996 c 417 s 31; 1997 c 66 s 79,80; 1998 c 265 s 33-35,40-42,45
Official Publication of the State of Minnesota
Revisor of Statutes