2005 Minnesota Statutes

     268.052 Payment to trust fund by state and political 
  subdivisions. 

    Subdivision 1.    Payments.  In lieu of taxes payable on 
 a quarterly basis, the state of Minnesota or its political 
 subdivisions shall reimburse the trust fund the amount of 
 unemployment benefits charged to its reimbursable account under 
 section 268.047.  Reimbursements in the amount of unemployment 
 benefits charged to the reimbursable account during a calendar 
 quarter must be received by the department on or before the last 
 day of the month following the month that the notice of 
 unemployment benefits paid is sent pursuant to section 268.047, 
 subdivision 5.  Past due reimbursements shall be subject to the 
 same interest charges and collection procedures that apply to 
 past due taxes. 

    Subd. 2.    Election by state or political subdivision to 
 be a taxpaying employer.  (a) The state or political 
 subdivision may elect to be a taxpaying employer for any 
 calendar year if a notice of election is filed within 30 
 calendar days following January 1 of that calendar year.  Upon 
 election, the state or political subdivision shall be assigned 
 the new employer tax rate under section 268.051, subdivision 5, 
 for the calendar year of the election and until it qualifies for 
 an experience rating under section 268.051, subdivision 3. 

    (b) An election shall be for a minimum period of two 
 calendar years following the effective date of the election and 
 continue unless a notice terminating the election is filed not 
 later than 30 calendar days before the beginning of the calendar 
 year.  The termination shall be effective at the beginning of 
 the next calendar year.  Upon election, the commissioner shall 
 establish a reimbursable account for the state or political 
 subdivision.  A termination of election shall be allowed only if 
 the state or political subdivision has, since the beginning of 
 the experience rating period under section 268.051, subdivision 
 3, paid taxes equal to or more than 125 percent of the 
 unemployment benefits used in computing the experience rating.  
 In addition, any unemployment benefits paid after the experience 
 rating period shall be transferred to the new reimbursable 
 account of the state or political subdivision.  If the amount of 
 taxes paid since the beginning of the experience rating period 
 exceeds 125 percent of the amount of unemployment benefits paid 
 during the experience rating period, that amount in excess shall 
 be applied against any unemployment benefits paid after the 
 experience rating period. 

    (c) The method of payments to the trust fund under 
 subdivisions 3 and 4 shall apply to all taxes paid by or due 
 from the state or political subdivision that elects to be 
 taxpaying employers under this subdivision. 

    (d) A notice of election or a notice terminating election 
 shall be filed by electronic transmission in a format prescribed 
 by the commissioner.  

    Subd. 3.    Method of payment by state.  To discharge 
 its liability, the state and its wholly owned instrumentalities 
 shall pay the trust fund as follows: 

    (1) Every self-sustaining department, institution and 
 wholly owned instrumentality shall pay the trust fund in 
 accordance with subdivision 1.  For the purposes of this clause 
 a "self-sustaining department, institution or wholly owned 
 instrumentality" is one where the dedicated income and revenue 
 substantially offsets its cost of operation. 

    (2) Every partially self-sustaining department, institution 
 and wholly owned instrumentality shall pay the trust fund that 
 same proportion of the amount that has been charged to its 
 employer account as the proportion of the total of its income 
 and revenue is to its annual cost of operation. 

    (3) Every department, institution or wholly owned 
 instrumentality that is not self-sustaining shall pay the trust 
 fund to the extent funds are available from appropriated funds. 

    (4) The departments, institutions and wholly owned 
 instrumentalities, including the University of Minnesota, that 
 have money available shall pay the trust fund in accordance with 
 subdivision 1.  If an applicant was paid during the base period 
 from a special account provided by law, the payment to the trust 
 fund shall be made from the special account with the approval of 
 the Department of Administration and the amounts are hereby 
 appropriated. 

    (5) For those departments, institutions and wholly owned 
 instrumentalities that cannot pay the trust fund, the 
 commissioner shall certify on November 1 of each calendar year 
 to the commissioner of finance the unpaid balances.  Upon 
 receipt of the certification, the commissioner of finance shall 
 include the unpaid balances in the biennial budget submitted to 
 the legislature. 

    Subd. 4.    Method of payment by political subdivision.  
 A political subdivision or instrumentality thereof is authorized 
 and directed to pay its liabilities by money collected from 
 taxes or other revenues.  Every political subdivision authorized 
 to levy taxes except school districts may include in its tax 
 levy the amount necessary to pay its liabilities.  School 
 districts may levy according to section 126C.43, subdivision 2.  
 If the taxes authorized to be levied cause the total amount of 
 taxes levied to exceed any limitation upon the power of a 
 political subdivision to levy taxes, the political subdivision 
 may levy taxes in excess of the limitations in the amounts 
 necessary to meet its liability.  The expenditures authorized 
 shall not be included in computing the cost of government as 
 defined in any home rule charter.  The governing body of a 
 municipality, for the purpose of meeting its liabilities, in the 
 event of a deficit, may issue its obligations payable in not 
 more than two years, in an amount that may cause its 
 indebtedness to exceed any statutory or charter limitations, 
 without an election, and may levy taxes in the manner provided 
 in section 475.61. 

    Subd. 5.    Considered an election.  If the state of 
 Minnesota or its political subdivisions choose not to be a 
 taxpaying employer under subdivision 2, the state or its 
 political subdivision shall be considered, for purposes of the 
 Minnesota unemployment insurance program, to have elected to be 
 liable for reimbursements under subdivision 1. 

    HIST: Ex1936 c 2 s 4; 1937 c 306 s 2; 1939 c 443 s 3; 1941 c 
 554 s 3; 1943 c 650 s 2; 1945 c 376 s 3; 1947 c 32 s 1-8; 1947 c 
 432 s 3-5,11; 1947 c 600 s 7; 1949 c 526 s 1; 1949 c 605 s 
 3-6,17,18; 1951 c 442 s 2; 1953 c 97 s 5,6,8; 1953 c 288 s 1; 
 1955 c 380 s 2-4,6; 1957 c 25 s 1; 1957 c 873 s 2; 1959 c 702 s 
 2-4; 1965 c 45 s 40; 1965 c 741 s 6-11; 1967 c 573 s 3; 1967 c 
 617 s 1; 1967 c 856 s 1; 1969 c 3 s 1; 1969 c 567 s 3; 1969 c 
 854 s 6; 1971 c 860 s 1; 1971 c 942 s 3-6; 1973 c 254 s 3; 1973 
 c 599 s 2-4; 1975 c 336 s 6-10; 1977 c 4 s 4,5; 1977 c 297 s 
 6-11; 1977 c 430 s 25 subd 1; 1977 c 455 s 82; 1978 c 674 s 60; 
 1979 c 181 s 4-8; 1980 c 508 s 2-7; 1Sp1982 c 1 s 5-12; 1983 c 
 216 art 1 s 87; 1983 c 247 s 112; 1983 c 372 s 9-15; 1985 c 248 
 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1986 c 451 s 1; 1987 
 c 242 s 1; 1987 c 362 s 9-12; 1987 c 385 s 10-18; 1989 c 65 s 
 3-5; 1989 c 209 art 2 s 1; 1992 c 484 s 4-7; 1994 c 483 s 1; 
 1994 c 488 s 8; 1995 c 54 s 3-7; 1996 c 417 s 5-7,31; 1997 c 66 
 s 22-24,27,79,80; 1999 c 107 s 29,66; 2000 c 343 s 4; 2001 c 175 
 s 16-18; 2002 c 379 art 1 s 61; 1Sp2003 c 3 art 2 s 5,20; 
 1Sp2003 c 9 art 5 s 27,28; 2004 c 183 s 32,33; 2005 c 112 art 2 
 s 12 

*   NOTE:  The amendments to subdivisions 1 and 2 by Laws 2004, 
*chapter 183, sections 32 and 33, are effective July 1, 2005.  
*Laws 2004, chapter 183, sections 32 and 33, the effective dates.