2006 Minnesota Statutes

268.194 UNEMPLOYMENT INSURANCE TRUST FUND.
    Subdivision 1. Establishment. There is hereby established as a special state trust fund,
separate and apart from all other public money or funds of this state, an unemployment insurance
trust fund, that shall be administered by the commissioner exclusively for the payment of
unemployment benefits. This trust fund shall consist of:
(1) all taxes collected;
(2) interest earned upon any money in the trust fund;
(3) reimbursements 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 unemployment benefit arrangement
with the federal government or any other state;
(7) all money recovered on overpaid unemployment benefits;
(8) all money recovered on losses sustained by the trust 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 trust 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 trust fund, administer the trust
fund in accordance with the directions of the commissioner, and issue warrants upon it. The
commissioner of finance shall maintain within the trust fund three separate accounts:
(1) a clearing account;
(2) an unemployment trust fund account; and
(3) an unemployment benefit payment account.
All money payable to the trust 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 unemployment benefit payment account.
(b) The unemployment benefit payment account shall consist of all money requisitioned from
Minnesota's account in the federal unemployment trust fund for the payment of unemployment
benefits. Money in the clearing and unemployment 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 trust fund. Money in the clearing and unemployment 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 unemployment 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 unemployment benefits and tax refunds for a reasonable future
period. Upon receipt the commissioner of finance shall deposit the money in the unemployment
benefit payment account and issue warrants for the payment of unemployment benefits solely
from the unemployment benefit payment account.
(b) Expenditures of money in the unemployment 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 unemployment benefits and tax refunds shall bear
the signature of the commissioner of finance and the counter signature of the commissioner.
    Subd. 3a.[Renumbered subd 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 trust
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
unemployment benefit payment account of the trust 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 unemployment benefits, or (2) expenses incurred for the administration of the Minnesota
unemployment insurance program pursuant to a specific appropriation by the legislature. Any
money used for the payment of unemployment 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 the Minnesota
unemployment insurance program 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 unemployment insurance 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 unemployment benefits.
(b) Any amount transferred to the trust 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).
History: 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; 2000 c 343 s
4; 2001 c 175 s 52; 1Sp2003 c 3 art 2 s 20; 2004 c 206 s 52