1999 Minnesota Statutes

     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