1.1 A bill for an act 1.2 relating to unemployment insurance; modifying wage credits and providing 1.3 reimbursement; authorizing transfers from the general fund; amending Minnesota 1.4 Statutes 2022, sections 126C.43, subdivision 2; 268.085, subdivision 7; 268.19, 1.5 subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 268; 1.6 repealing Minnesota Statutes 2022, section 268.085, subdivision 8. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 2022, section 126C.43, subdivision 2, is amended to read: 1.9 Subd. 2.Payment to unemployment insurance program trust fund by state and 1.10political subdivisions.(a) A district may levy the amount necessary (1) to pay the district's 1.11obligations under section 268.052, subdivision 1, and (2) to pay for job placement services 1.12offered to employees who may become eligible for benefits pursuant to section 268.085 for 1.13the fiscal year the levy is certified. 1.14 (b) Districts with a balance remaining in their reserve for reemployment as of June 30, 1.152003, may not expend the reserved funds for future reemployment expenditures. Each year 1.16a levy reduction must be made to return these funds to taxpayers. The amount of the levy 1.17reduction must be equal to the lesser of: (1) the remaining reserved balance for reemployment, 1.18or (2) the amount of the district's current levy under paragraph (a). 1.19 (c) The amount in paragraph (a) must be reduced by any amount received by the district 1.20from the account established under section 268.193, subdivision 2. 1.21 (d) A district that is a member of an intermediate school district or other cooperative 1.22unit under section 123A.24, subdivision 2, may include in its authority under this section 1Section 1. REVISOR SS/LN 23-0119512/21/22 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 20 NINETY-THIRD SESSION Authored by Greenman, Hortman, Long, Noor, Frazier and others01/04/2023 The bill was read for the first time and referred to the Committee on Workforce Development Finance and Policy 2.1the costs associated with qualifying obligations under paragraph (a) for the cooperative unit. 2.2Revenue raised under this paragraph must be transferred to the cooperative unit. 2.3 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2024 and later. 2.4 Sec. 2. Minnesota Statutes 2022, section 268.085, subdivision 7, is amended to read: 2.5 Subd. 7.School employees; between terms denial.(a) Wage credits from employment 2.6with an educational institution or institutions may not be used for unemployment benefit 2.7purposes for any week during the period between two successive academic years or terms 2.8if: 2.9 (1) the applicant had employment for an educational institution or institutions in the 2.10prior academic year or term; and 2.11 (2) there is a reasonable assurance that the applicant will have employment for an 2.12educational institution or institutions in the following academic year or term. 2.13 This paragraph applies to a vacation period or holiday recess if the applicant was 2.14employed immediately before the vacation period or holiday recess, and there is a reasonable 2.15assurance that the applicant will be employed immediately following the vacation period 2.16or holiday recess. This paragraph also applies to the period between two regular but not 2.17successive terms if there is an agreement for that schedule between the applicant and the 2.18educational institution. 2.19 This paragraph does not apply if the subsequent employment is substantially less 2.20favorable than the employment of the prior academic year or term, or the employment prior 2.21to the vacation period or holiday recess. 2.22 (b) Paragraph (a) does not apply to: 2.23 (1) an applicant who, at the end of the prior academic year or term, had an agreement 2.24for a definite period of employment between academic years or terms in other than an 2.25instructional, research, or principal administrative capacity and the educational institution 2.26or institutions failed to provide that employment.; 2.27 (2) the period between successive academic years or terms, if the applicant's wage credits 2.28were in a position for which no license is required by the Professional Educator Licensing 2.29and Standards Board or the Board of School Administrators in the employment of an 2.30employer as defined in section 123A.24, subdivision 2, or 123A.55; or 2Sec. 2. REVISOR SS/LN 23-0119512/21/22 3.1 (3) the period between successive academic years or terms, if the applicant's wage credits 3.2were for employment at a postsecondary institution in a facilities, transportation, or food 3.3service position or a nonpermanent instructional, research, or administrative position. 3.4 (c) If unemployment benefits are denied to any applicant under paragraph (a) who was 3.5employed in the prior academic year or term in other than an instructional, research, or 3.6principal administrative capacity and who was not offered an opportunity to perform the 3.7employment in the following academic year or term, the applicant is entitled to retroactive 3.8unemployment benefits for each week during the period between academic years or terms 3.9that the applicant filed a timely continued request for unemployment benefits, but 3.10unemployment benefits were denied solely because of paragraph (a). 3.11 (d) This subdivision applies to employment with an educational service agency if the 3.12applicant performed the services at an educational institution or institutions. "Educational 3.13service agency" means a governmental entity established and operated for the purpose of 3.14providing services to one or more educational institutions. 3.15 (e) This subdivision applies to employment with Minnesota, a political subdivision, or 3.16a nonprofit organization, if the services are provided to or on behalf of an educational 3.17institution or institutions. 3.18 (f) Paragraph (a) applies beginning the Sunday of the week that there is a reasonable 3.19assurance of employment. 3.20 (g) Employment and a reasonable assurance with multiple education institutions must 3.21be aggregated for purposes of application of this subdivision. 3.22 (h) If all of the applicant's employment with any educational institution or institutions 3.23during the prior academic year or term consisted of on-call employment, and the applicant 3.24has a reasonable assurance of any on-call employment with any educational institution or 3.25institutions for the following academic year or term, it is not considered substantially less 3.26favorable employment. 3.27 (i) A "reasonable assurance" may be written, oral, implied, or established by custom or 3.28practice. 3.29 (j) An "educational institution" is a school, college, university, or other educational entity 3.30operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit 3.31organization. 3.32 (k) An "instructional, research, or principal administrative capacity" does not include 3.33an educational assistant. 3Sec. 2. REVISOR SS/LN 23-0119512/21/22 4.1 EFFECTIVE DATE.This section is effective the day following final enactment. 4.2 Sec. 3. Minnesota Statutes 2022, section 268.19, subdivision 1, is amended to read: 4.3 Subdivision 1.Use of data.(a) Except as provided by this section, data gathered from 4.4any person under the administration of the Minnesota Unemployment Insurance Law are 4.5private data on individuals or nonpublic data not on individuals as defined in section 13.02, 4.6subdivisions 9 and 12, and may not be disclosed except according to a district court order 4.7or section 13.05. A subpoena is not considered a district court order. These data may be 4.8disseminated to and used by the following agencies without the consent of the subject of 4.9the data: 4.10 (1) state and federal agencies specifically authorized access to the data by state or federal 4.11law; 4.12 (2) any agency of any other state or any federal agency charged with the administration 4.13of an unemployment insurance program; 4.14 (3) any agency responsible for the maintenance of a system of public employment offices 4.15for the purpose of assisting individuals in obtaining employment; 4.16 (4) the public authority responsible for child support in Minnesota or any other state in 4.17accordance with section 256.978; 4.18 (5) human rights agencies within Minnesota that have enforcement powers; 4.19 (6) the Department of Revenue to the extent necessary for its duties under Minnesota 4.20laws; 4.21 (7) public and private agencies responsible for administering publicly financed assistance 4.22programs for the purpose of monitoring the eligibility of the program's recipients; 4.23 (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the 4.24Department of Commerce for uses consistent with the administration of their duties under 4.25Minnesota law; 4.26 (9) the Department of Human Services and the Office of Inspector General and its agents 4.27within the Department of Human Services, including county fraud investigators, for 4.28investigations related to recipient or provider fraud and employees of providers when the 4.29provider is suspected of committing public assistance fraud; 4.30 (10) local and state welfare agencies for monitoring the eligibility of the data subject 4.31for assistance programs, or for any employment or training program administered by those 4.32agencies, whether alone, in combination with another welfare agency, or in conjunction 4Sec. 3. REVISOR SS/LN 23-0119512/21/22 5.1with the department or to monitor and evaluate the statewide Minnesota family investment 5.2program and other cash assistance programs, the Supplemental Nutrition Assistance Program, 5.3and the Supplemental Nutrition Assistance Program Employment and Training program by 5.4providing data on recipients and former recipients of Supplemental Nutrition Assistance 5.5Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child 5.6care assistance under chapter 119B, or medical programs under chapter 256B or 256L or 5.7formerly codified under chapter 256D; 5.8 (11) local and state welfare agencies for the purpose of identifying employment, wages, 5.9and other information to assist in the collection of an overpayment debt in an assistance 5.10program; 5.11 (12) local, state, and federal law enforcement agencies for the purpose of ascertaining 5.12the last known address and employment location of an individual who is the subject of a 5.13criminal investigation; 5.14 (13) the United States Immigration and Customs Enforcement has access to data on 5.15specific individuals and specific employers provided the specific individual or specific 5.16employer is the subject of an investigation by that agency; 5.17 (14) the Department of Health for the purposes of epidemiologic investigations; 5.18 (15) the Department of Corrections for the purposes of case planning and internal research 5.19for preprobation, probation, and postprobation employment tracking of offenders sentenced 5.20to probation and preconfinement and postconfinement employment tracking of committed 5.21offenders; 5.22 (16) the state auditor to the extent necessary to conduct audits of job opportunity building 5.23zones as required under section 469.3201; and 5.24 (17) the Office of Higher Education for purposes of supporting program improvement, 5.25system evaluation, and research initiatives including the Statewide Longitudinal Education 5.26Data System, and for the purposes of reimbursement under section 268.193, subdivision 5; 5.27 (18) the Department of Education for the purposes of reimbursement under section 5.28268.193, subdivision 2, and the school district unemployment insurance levy under section 5.29126C.43, subdivision 2; 5.30 (19) the Board of Regents of the University of Minnesota for the purposes of 5.31reimbursement under section 268.193, subdivision 3; and 5.32 (20) the Board of Trustees of the Minnesota State Colleges and Universities for the 5.33purposes of reimbursement under section 268.193, subdivision 4. 5Sec. 3. REVISOR SS/LN 23-0119512/21/22 6.1 (b) Data on individuals and employers that are collected, maintained, or used by the 6.2department in an investigation under section 268.182 are confidential as to data on individuals 6.3and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 6.4and 13, and must not be disclosed except under statute or district court order or to a party 6.5named in a criminal proceeding, administrative or judicial, for preparation of a defense. 6.6 (c) Data gathered by the department in the administration of the Minnesota unemployment 6.7insurance program must not be made the subject or the basis for any suit in any civil 6.8proceedings, administrative or judicial, unless the action is initiated by the department. 6.9 EFFECTIVE DATE.This section is effective the day following final enactment. 6.10 Sec. 4. [268.193] REIMBURSEMENT ACCOUNTS. 6.11 Subdivision 1.Reimbursement administered.(a) For the purposes of this subdivision, 6.12the following terms have the meanings given: 6.13 (1) "participating educational institution" means: 6.14 (i) a public K-12 educational institution as defined in subdivision 2, paragraph (a), clause 6.15(1); 6.16 (ii) the University of Minnesota; 6.17 (iii) a postsecondary institution governed by the Board of Trustees of the Minnesota 6.18State Colleges and Universities; or 6.19 (iv) a Tribal college as defined in subdivision 5, paragraph (a), clause (1); and 6.20 (2) "qualifying unemployment benefits" has the meanings given in subdivision 2, 6.21paragraph (a), clause (2); subdivision 3, paragraph (a); subdivision 4, paragraph (a); and 6.22subdivision 5, paragraph (a), clause (2), as applicable to the participating educational 6.23institution. 6.24 (b) The commissioner of employment and economic development shall calculate and 6.25certify the qualifying unemployment benefits payments charged and credited to the 6.26reimbursable account of the participating educational institutions as provided under section 6.27268.045 each calendar quarter and share and transmit the applicable certified amount to: 6.28 (1) the commissioner of education for the purposes of reimbursement under subdivision 6.292; 6.30 (2) the Board of Regents of the University of Minnesota for the purposes of 6.31reimbursement under subdivision 3; 6Sec. 4. REVISOR SS/LN 23-0119512/21/22 7.1 (3) the Board of Trustees of the Minnesota State Colleges and Universities for the 7.2purposes of reimbursement under subdivision 4; or 7.3 (4) the commissioner of the Office of Higher Education for the purposes of reimbursement 7.4under subdivision 5. 7.5 Subd. 2.K-12 school reimbursement account.(a) For the purposes of this subdivision, 7.6the following terms have the meanings given: 7.7 (1) "public K-12 educational institution" means a: 7.8 (i) school district; 7.9 (ii) charter school; or 7.10 (iii) school cooperative, as defined in section 123A.24, subdivision 2; and 7.11 (2) "qualifying unemployment benefits" means unemployment benefits charged and 7.12credited to a public K-12 educational institution as provided under section 268.045 for an 7.13applicant for a period between successive academic years or terms, if the applicant's wage 7.14credits were in a position for which no license is required by the Professional Educator 7.15Licensing and Standards Board or the Board of School Administrators in the employment 7.16of an employer as defined in section 123A.24, subdivision 2, or 123A.55. 7.17 (b) There is created in the special revenue fund an account, to be known as the K-12 7.18school reimbursement account, that does not lapse nor revert to any other fund or account. 7.19This account consists of all money appropriated for the purposes of this subdivision, unless 7.20otherwise appropriated by law. Funds appropriated for the purposes of reimbursement under 7.21this subdivision must be transferred to the K-12 school reimbursement account in the special 7.22revenue fund. 7.23 (c) As provided in this subdivision, money in the account is appropriated to the 7.24commissioner of education and shall be used to reimburse a public K-12 educational 7.25institution under this subdivision for payments of qualifying unemployment benefits certified 7.26under subdivision 1, paragraph (b), clause (1). The commissioner shall administer payments 7.27of certified reimbursement amounts to a public K-12 educational institution under this 7.28subdivision on or before the last day of the month following the end of the next calendar 7.29quarter following certification. If the certified reimbursement amounts exceed the money 7.30available in the K-12 school reimbursement account, reimbursement shall be dispersed to 7.31individual public K-12 educational institutions on a pro rata basis. 7Sec. 4. REVISOR SS/LN 23-0119512/21/22 8.1 (d) The commissioner of education may spend up to one percent of the amount 8.2appropriated to the K-12 school reimbursement account for costs associated with 8.3administering and monitoring payments under this subdivision. 8.4 Subd. 3.University of Minnesota reimbursement account.(a) For the purposes of 8.5this subdivision, "qualifying unemployment benefits" means unemployment benefits charged 8.6and credited to the University of Minnesota as provided under section 268.045 for an 8.7applicant for a period between successive academic years or terms if the applicant's wage 8.8credits were for employment at a postsecondary institution governed by the Board of Regents 8.9of the University of Minnesota in an applicable position under section 268.085, subdivision 8.107, paragraph (b), clause (3). 8.11 (b) There is created in the special revenue fund an account, to be known as the University 8.12of Minnesota reimbursement account, that does not lapse nor revert to any other fund or 8.13account. This account consists of all money appropriated for the purposes of this subdivision, 8.14unless otherwise appropriated by session law. Funds appropriated for the purposes of 8.15reimbursement under this subdivision must be transferred to the University of Minnesota 8.16reimbursement account in the special revenue fund. 8.17 (c) As provided in this subdivision, money in the account is appropriated to the Board 8.18of Regents of the University of Minnesota and shall be used to reimburse the University of 8.19Minnesota for payments of qualifying unemployment benefits certified under subdivision 8.201, paragraph (b), clause (2). The Board of Regents shall reimburse the University of 8.21Minnesota for certified reimbursement amounts in the form and manner prescribed by the 8.22board. 8.23 Subd. 4.Minnesota State Colleges and Universities reimbursement account.(a) For 8.24the purposes of this subdivision, "qualifying unemployment benefits" means unemployment 8.25benefits charged and credited to a Minnesota state college or university governed by the 8.26Board of Trustees as provided under section 268.045 for an applicant for a period between 8.27successive academic years or terms if the applicant's wage credits were for employment at 8.28a postsecondary institution governed by the Board of Trustees of the Minnesota State 8.29Colleges and Universities in an applicable position under section 268.085, subdivision 7, 8.30paragraph (b), clause (3). 8.31 (b) There is created in the special revenue fund an account, to be known as the Minnesota 8.32State Colleges and Universities reimbursement account, that does not lapse nor revert to 8.33any other fund or account. This account consists of all money appropriated for the purposes 8.34of this subdivision unless otherwise appropriated by law. Funds appropriated for the purposes 8Sec. 4. REVISOR SS/LN 23-0119512/21/22 9.1of reimbursement under this subdivision must be transferred to the Minnesota State Colleges 9.2and Universities reimbursement account in the special revenue fund. 9.3 (c) As provided in this subdivision, money in the account is appropriated to the Board 9.4of Trustees of the Minnesota State Colleges and Universities and shall be used to reimburse 9.5individual Minnesota state colleges and universities for payments of qualifying 9.6unemployment benefits certified under subdivision 1, paragraph (b), clause (3). The Board 9.7of Trustees shall reimburse individual Minnesota state colleges and universities for certified 9.8reimbursement amounts in the form and manner prescribed by the board. If certified 9.9reimbursement amounts exceed the money available in the Minnesota State Colleges and 9.10Universities reimbursement account, reimbursement shall be dispersed to individual 9.11Minnesota state colleges and universities on a pro rata basis. 9.12 Subd. 5.Tribal colleges reimbursement account.(a) For the purposes of this 9.13subdivision, the following terms have the meanings given: 9.14 (1) "Tribal college" means Leech Lake Tribal College, White Earth Tribal College, or 9.15Red Lake Nation Tribal College, referred to collectively in this subdivision as Tribal colleges; 9.16and 9.17 (2) "qualifying unemployment benefits" means unemployment benefits charged and 9.18credited to a Tribal college as provided under section 268.045 for an applicant for a period 9.19between successive academic years or terms if the applicant's wage credits were for 9.20employment at a Tribal college in an applicable position under section 268.085, subdivision 9.217, paragraph (b), clause (3). 9.22 (b) There is created in the special revenue fund an account, to be known as the Tribal 9.23colleges reimbursement account, that does not lapse nor revert to any other fund or account. 9.24This account consists of all money appropriated for the purposes of this subdivision unless 9.25otherwise appropriated by law. Funds appropriated for the purposes of reimbursement under 9.26this section must be transferred to the Tribal colleges reimbursement account in the special 9.27revenue fund. 9.28 (c) As provided in this subdivision, money in the account is appropriated to the 9.29commissioner of the Office of Higher Education and shall be used to reimburse individual 9.30Tribal colleges for payments of qualifying unemployment benefits certified under subdivision 9.311, paragraph (b), clause (4). The commissioner shall administer payments of certified 9.32reimbursement amounts to a Tribal college on or before the last day of the month following 9.33the end of the next calendar quarter following certification. If the certified reimbursement 9Sec. 4. REVISOR SS/LN 23-0119512/21/22 10.1amounts exceed the money available in the Tribal colleges reimbursement account, 10.2reimbursement shall be dispersed to individual Tribal colleges on a pro rata basis. 10.3 EFFECTIVE DATE.This section is effective the day following final enactment. 10.4 Sec. 5. TRANSFERS. 10.5 (a) $....... in fiscal year 2024 is transferred from the general fund to the commissioner 10.6of education for the purposes of reimbursement under Minnesota Statutes, section 268.193, 10.7subdivision 2, and subject to the requirements of that subdivision. This is a onetime transfer 10.8and is available until expended. 10.9 (b) $....... in fiscal year 2024 is transferred from the general fund to the Board of Regents 10.10of the University of Minnesota for the purposes of reimbursement under Minnesota Statutes, 10.11section 268.193, subdivision 3, and subject to the requirements of that subdivision. This is 10.12a onetime transfer and is available until expended. 10.13 (c) $....... in fiscal year 2024 is transferred from the general fund to the Board of Trustees 10.14of the Minnesota State Colleges and Universities for the purposes of reimbursement under 10.15Minnesota Statutes, section 268.193, subdivision 4, and subject to the requirements of that 10.16subdivision. This is a onetime transfer and is available until expended. 10.17 (d) $....... in fiscal year 2024 is transferred from the general fund to the commissioner 10.18of the Office of Higher Education for the purposes of reimbursement under Minnesota 10.19Statutes, section 268.193, subdivision 5, and subject to the requirements of that subdivision. 10.20This is a onetime transfer and is available until expended. 10.21 EFFECTIVE DATE.This section is effective the day following final enactment. 10.22Sec. 6. REPEALER. 10.23 Minnesota Statutes 2022, section 268.085, subdivision 8, is repealed. 10.24 EFFECTIVE DATE.This section is effective the day following final enactment. 10Sec. 6. REVISOR SS/LN 23-0119512/21/22 268.085 ELIGIBILITY REQUIREMENTS; PAYMENTS THAT AFFECT BENEFITS. Subd. 8.Services for school contractors.(a) Wage credits from an employer are subject to subdivision 7, if: (1) the employment was provided under a contract between the employer and an elementary or secondary school; and (2) the contract was for services that the elementary or secondary school could have had performed by its employees. (b) Wage credits from an employer are not subject to subdivision 7 if: (1) those wage credits were earned by an employee of a private employer performing work under a contract between the employer and an elementary or secondary school; and (2) the employment was related to food services provided to the school by the employer. 1R APPENDIX Repealed Minnesota Statutes: 23-01195