268.194 Reemployment compensation trust fund.
Subdivision 1. Establishment. There is hereby established as a special state fund, separate and apart from all other public money or funds of this state, a reemployment compensation trust fund, that shall be administered by the commissioner exclusively for the payment of benefits. This fund shall consist of:
(1) all taxes collected;
(2) interest earned upon any money in the fund;
(3) payments in lieu of taxes paid by nonprofit organizations and the state and political subdivisions;
(4) voluntary payments under section 268.051, subdivision 7;
(5) any money received as a loan from the federal unemployment trust fund in accordance with United States Code, title 42, section 1321, of the Social Security Act;
(6) any other money received pursuant to a reciprocal benefit arrangement with the federal government or any other state;
(7) all money recovered on overpaid benefits;
(8) all money recovered on losses sustained by the fund;
(9) all money received from the contingent account under section 268.196, subdivision 3;
(10) all money credited to the account of Minnesota in the federal unemployment trust fund pursuant to United States Code, title 42, section 1103, of the Social Security Act, also known as the Reed Act; and
(11) all money received for the fund from any other source.
Subd. 2. Commissioner of finance to be custodian; separate accounts. (a) 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 payment 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 be deposited to the credit of Minnesota's account in the federal unemployment trust fund. Tax refunds payable pursuant to section 268.057 may be paid from the clearing account or the benefit payment account.
(b) The benefit payment 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 payment 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 payment accounts 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.
Subd. 3. Exclusive use. (a) Money requisitioned from Minnesota's account in the federal unemployment trust fund shall be used exclusively for the payment of benefits and for tax 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, also known as the Reed Act, may be used for the payment of expenses of administration. The commissioner shall from time to time requisition from the federal unemployment trust fund the amounts necessary for the payment of benefits and tax refunds for a reasonable future period. Upon receipt the commissioner of finance shall deposit the money in the benefit payment account and issue warrants for the payment of benefits solely from the benefit payment account.
(b) Expenditures of money in the benefit payment account and tax refunds from the clearing account shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers.
(c) All warrants issued for the payment of benefits and tax refunds shall bear the signature of the commissioner of finance and the counter signature of the commissioner.
Subd. 3a. Renumbered subdivision 4
Subd. 4. 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.
Money received pursuant to a reciprocal agreement shall be placed directly in the benefit payment account of the fund.
Subd. 5. Reed Act money. (a) Money credited to the account of Minnesota in the federal unemployment trust fund pursuant to United States Code, title 42, section 1103, of the Social Security Act, also known as the Reed Act, may be requisitioned and used for (1) the payment of benefits, or (2) expenses incurred for the administration of sections 268.03 to 268.23 pursuant to a specific appropriation by the legislature. Any money used for the payment of benefits may be restored for appropriation and use for administrative expenses upon request of the governor to the United States Secretary of Labor.
(b) Reed Act money may be used for expenses in the administration of sections 268.03 to 268.23 provided that the expenses are incurred and the money is requisitioned after the enactment of an appropriation law that:
(1) specifies the amounts and the purposes for which the money is appropriated;
(2) limits the period within which the money may be obligated to a period ending not more than two years after the date of the enactment of the appropriation law; and
(3) limits the amount that may be obligated to an amount that does not exceed the amount by which the aggregate of the amounts transferred to the account of Minnesota pursuant to the Reed Act exceeds the aggregate of the amounts used pursuant to this subdivision and charged against the amounts transferred to the account of Minnesota. For the purposes of this subdivision, amounts used for administration shall be chargeable against the transferred amounts at the time of the obligation.
(c) Reed Act money requisitioned for the payment of expenses of administration shall remain a part of the reemployment compensation trust fund. The commissioner shall account for the use of this money in accordance with the standards established by the United States Secretary of Labor. If any money is not spent for the purpose for which it was appropriated, or, if it remains unspent at the end of the period specified by the law appropriating the money, it shall be returned for credit to Minnesota's account in the federal unemployment trust fund.
Subd. 6. Borrowing federal funds. (a) The governor is hereby authorized, if necessary, to borrow funds from the federal unemployment trust fund in accordance with United States Code, title 42, section 1321 of the Social Security Act in order to pay benefits.
(b) Any amount transferred to the fund under the terms of any loan 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 loan 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; 1999 c 107 s 60,66
Official Publication of the State of Minnesota
Revisor of Statutes