1998 Minnesota Statutes

     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