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; providing
1.4 unemployment insurance aid; requiring a report; appropriating money; amending
1.5 Minnesota Statutes 2022, sections 126C.43, subdivision 2; 127A.45, subdivision
1.6 12; 268.085, subdivision 7; 268.19, subdivision 1; proposing coding for new law
1.7 in Minnesota Statutes, chapters 124D; 268; repealing Minnesota Statutes 2022,
1.8 section 268.085, subdivision 8.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. [124D.995] UNEMPLOYMENT INSURANCE AID.
1.11 (a) School districts and charter schools, including intermediate school districts and other
1.12cooperative units under section 123A.24, subdivision 2, are eligible to receive unemployment
1.13insurance aid under this section. For each fiscal year, an eligible entity's aid is the difference
1.14between:
1.15 (1) net audited unemployment costs, as reported under section 123B.76, for the prior
1.16fiscal year; and
1.17 (2) the base period net audited unemployment costs pursuant to paragraph (b).
1.18 (b) The base period net audited unemployment costs equals the eligible entity's fiscal
1.19year 2022 net audited unemployment costs.
1.20 (c) If the total eligible unemployment insurance aid for a fiscal year is greater than the
1.21annual appropriation for that year, the commissioner must proportionately reduce the aid
1.22payment to each eligible entity.
1.23 EFFECTIVE DATE.This section is effective for aid beginning in fiscal year 2025.
1Section 1.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT
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
Adoption of Report: Amended and re-referred to the Committee on Education Finance02/06/2023
Adoption of Report: Amended and re-referred to the Committee on Higher Education Finance and Policy02/13/2023 2.1 Sec. 2. Minnesota Statutes 2022, section 126C.43, subdivision 2, is amended to read:
2.2 Subd. 2.Payment to unemployment insurance program trust fund by state and
2.3political subdivisions.(a) A district may levy the amount necessary (1) to pay the district's
2.4obligations under section 268.052, subdivision 1, and (2) to pay for job placement services
2.5offered to employees who may become eligible for benefits pursuant to section 268.085 for
2.6the fiscal year the levy is certified.
2.7 (b) Districts with a balance remaining in their reserve for reemployment as of June 30,
2.82003, may not expend the reserved funds for future reemployment expenditures. Each year
2.9a levy reduction must be made to return these funds to taxpayers. The amount of the levy
2.10reduction must be equal to the lesser of: (1) the remaining reserved balance for reemployment,
2.11or (2) the amount of the district's current levy under paragraph (a).
2.12 (c) The amount in paragraph (a) must be reduced by any amount received by the district
2.13under section 124D.995.
2.14 (d) A district that is a member of an intermediate school district or other cooperative
2.15unit under section 123A.24, subdivision 2, may include in its authority under this section
2.16the costs associated with qualifying obligations under paragraph (a) for the cooperative unit.
2.17Revenue raised under this paragraph must be transferred to the cooperative unit.
2.18 Sec. 3. Minnesota Statutes 2022, section 127A.45, subdivision 12, is amended to read:
2.19 Subd. 12.Payment percentage for certain aids.One hundred percent of the aid for
2.20the current fiscal year must be paid for the following aids: reimbursement for enrollment
2.21options transportation, according to sections 124D.03, subdivision 8, and 124D.09,
2.22subdivision 22, and chapter 124E; school lunch aid, according to section 124D.111; and
2.23support services aid, for persons who are deaf, deafblind, and hard-of-hearing according to
2.24section 124D.57; and unemployment insurance aid according to section 124D.995.
2.25 Sec. 4. Minnesota Statutes 2022, section 268.085, subdivision 7, is amended to read:
2.26 Subd. 7.School employees; between terms denial.(a) Wage credits from employment
2.27with an educational institution or institutions may not be used for unemployment benefit
2.28purposes for any week during the period between two successive academic years or terms
2.29if:
2.30 (1) the applicant had employment for an educational institution or institutions in the
2.31prior academic year or term; and
2Sec. 4.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 3.1 (2) there is a reasonable assurance that the applicant will have employment for an
3.2educational institution or institutions in the following academic year or term.
3.3 This paragraph applies to a vacation period or holiday recess if the applicant was
3.4employed immediately before the vacation period or holiday recess, and there is a reasonable
3.5assurance that the applicant will be employed immediately following the vacation period
3.6or holiday recess. This paragraph also applies to the period between two regular but not
3.7successive terms if there is an agreement for that schedule between the applicant and the
3.8educational institution.
3.9 This paragraph does not apply if the subsequent employment is substantially less
3.10favorable than the employment of the prior academic year or term, or the employment prior
3.11to the vacation period or holiday recess.
3.12 (b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic
3.13year or term, had an agreement for a definite period of employment between academic years
3.14or terms in other than an instructional, research, or principal administrative capacity and
3.15the educational institution or institutions failed to provide that employment. any week during
3.16the period between two successive academic years or terms if an applicant worked in a
3.17capacity other than instructional, research, or principal administrative. For individuals in
3.18the employment of an employer as defined in section 123A.24, subdivision 2, or 123A.55,
3.19an instructional position is one for which a license is required by the Professional Educator
3.20Licensing and Standards Board or the Board of School Administrators.
3.21 (c) If unemployment benefits are denied to any applicant under paragraph (a) who was
3.22employed in the prior academic year or term in other than an instructional, research, or
3.23principal administrative capacity and who was not offered an opportunity to perform the
3.24employment in the following academic year or term, the applicant is entitled to retroactive
3.25unemployment benefits for each week during the period between academic years or terms
3.26that the applicant filed a timely continued request for unemployment benefits, but
3.27unemployment benefits were denied solely because of paragraph (a). Paragraph (a) applies
3.28to a vacation period or holiday recess if the applicant was employed immediately before
3.29the vacation period or holiday recess, and there is a reasonable assurance that the applicant
3.30will be employed immediately following the vacation period or holiday recess, including
3.31applicants who worked in a capacity other than instructional, research, or principal
3.32administrative.
3.33 (d) This subdivision applies to employment with an educational service agency if the
3.34applicant performed the services at an educational institution or institutions. "Educational
3Sec. 4.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 4.1service agency" means a governmental entity established and operated for the purpose of
4.2providing services to one or more educational institutions.
4.3 (e) This subdivision applies to employment with Minnesota, a political subdivision, or
4.4a nonprofit organization, if the services are provided to or on behalf of an educational
4.5institution or institutions.
4.6 (f) Paragraph (a) applies beginning the Sunday of the week that there is a reasonable
4.7assurance of employment.
4.8 (g) Employment and a reasonable assurance with multiple education institutions must
4.9be aggregated for purposes of application of this subdivision.
4.10 (h) If all of the applicant's employment with any educational institution or institutions
4.11during the prior academic year or term consisted of on-call employment, and the applicant
4.12has a reasonable assurance of any on-call employment with any educational institution or
4.13institutions for the following academic year or term, it is not considered substantially less
4.14favorable employment.
4.15 (i) A "reasonable assurance" may be written, oral, implied, or established by custom or
4.16practice.
4.17 (j) An "educational institution" is a school, college, university, or other educational entity
4.18operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit
4.19organization.
4.20 (k) An "instructional, research, or principal administrative capacity" does not include
4.21an educational assistant.
4.22 EFFECTIVE DATE.This section is effective the day following final enactment.
4.23 Sec. 5. Minnesota Statutes 2022, section 268.19, subdivision 1, is amended to read:
4.24 Subdivision 1.Use of data.(a) Except as provided by this section, data gathered from
4.25any person under the administration of the Minnesota Unemployment Insurance Law are
4.26private data on individuals or nonpublic data not on individuals as defined in section 13.02,
4.27subdivisions 9 and 12, and may not be disclosed except according to a district court order
4.28or section 13.05. A subpoena is not considered a district court order. These data may be
4.29disseminated to and used by the following agencies without the consent of the subject of
4.30the data:
4.31 (1) state and federal agencies specifically authorized access to the data by state or federal
4.32law;
4Sec. 5.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 5.1 (2) any agency of any other state or any federal agency charged with the administration
5.2of an unemployment insurance program;
5.3 (3) any agency responsible for the maintenance of a system of public employment offices
5.4for the purpose of assisting individuals in obtaining employment;
5.5 (4) the public authority responsible for child support in Minnesota or any other state in
5.6accordance with section 256.978;
5.7 (5) human rights agencies within Minnesota that have enforcement powers;
5.8 (6) the Department of Revenue to the extent necessary for its duties under Minnesota
5.9laws;
5.10 (7) public and private agencies responsible for administering publicly financed assistance
5.11programs for the purpose of monitoring the eligibility of the program's recipients;
5.12 (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
5.13Department of Commerce for uses consistent with the administration of their duties under
5.14Minnesota law;
5.15 (9) the Department of Human Services and the Office of Inspector General and its agents
5.16within the Department of Human Services, including county fraud investigators, for
5.17investigations related to recipient or provider fraud and employees of providers when the
5.18provider is suspected of committing public assistance fraud;
5.19 (10) local and state welfare agencies for monitoring the eligibility of the data subject
5.20for assistance programs, or for any employment or training program administered by those
5.21agencies, whether alone, in combination with another welfare agency, or in conjunction
5.22with the department or to monitor and evaluate the statewide Minnesota family investment
5.23program and other cash assistance programs, the Supplemental Nutrition Assistance Program,
5.24and the Supplemental Nutrition Assistance Program Employment and Training program by
5.25providing data on recipients and former recipients of Supplemental Nutrition Assistance
5.26Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
5.27care assistance under chapter 119B, or medical programs under chapter 256B or 256L or
5.28formerly codified under chapter 256D;
5.29 (11) local and state welfare agencies for the purpose of identifying employment, wages,
5.30and other information to assist in the collection of an overpayment debt in an assistance
5.31program;
5Sec. 5.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 6.1 (12) local, state, and federal law enforcement agencies for the purpose of ascertaining
6.2the last known address and employment location of an individual who is the subject of a
6.3criminal investigation;
6.4 (13) the United States Immigration and Customs Enforcement has access to data on
6.5specific individuals and specific employers provided the specific individual or specific
6.6employer is the subject of an investigation by that agency;
6.7 (14) the Department of Health for the purposes of epidemiologic investigations;
6.8 (15) the Department of Corrections for the purposes of case planning and internal research
6.9for preprobation, probation, and postprobation employment tracking of offenders sentenced
6.10to probation and preconfinement and postconfinement employment tracking of committed
6.11offenders;
6.12 (16) the state auditor to the extent necessary to conduct audits of job opportunity building
6.13zones as required under section 469.3201; and
6.14 (17) the Office of Higher Education for purposes of supporting program improvement,
6.15system evaluation, and research initiatives including the Statewide Longitudinal Education
6.16Data System, and for the purposes of reimbursement under section 268.193, subdivision 5;
6.17 (18) the Department of Education for the purposes of reimbursement under section
6.18124D.995, and the school district unemployment insurance levy under section 126C.43,
6.19subdivision 2;
6.20 (19) the Board of Regents of the University of Minnesota for the purposes of
6.21reimbursement under section 268.193, subdivision 3; and
6.22 (20) the Board of Trustees of the Minnesota State Colleges and Universities for the
6.23purposes of reimbursement under section 268.193, subdivision 4.
6.24 (b) Data on individuals and employers that are collected, maintained, or used by the
6.25department in an investigation under section 268.182 are confidential as to data on individuals
6.26and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
6.27and 13, and must not be disclosed except under statute or district court order or to a party
6.28named in a criminal proceeding, administrative or judicial, for preparation of a defense.
6.29 (c) Data gathered by the department in the administration of the Minnesota unemployment
6.30insurance program must not be made the subject or the basis for any suit in any civil
6.31proceedings, administrative or judicial, unless the action is initiated by the department.
6.32 EFFECTIVE DATE.This section is effective the day following final enactment.
6Sec. 5.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 7.1 Sec. 6. [268.193] REIMBURSEMENT ACCOUNTS.
7.2 Subdivision 1.Reimbursement administered.(a) For the purposes of this subdivision,
7.3the following terms have the meanings given:
7.4 (1) "participating higher education educational institution" means:
7.5 (i) the University of Minnesota;
7.6 (ii) a postsecondary institution governed by the Board of Trustees of the Minnesota State
7.7Colleges and Universities; or
7.8 (iii) a Tribal college as defined in subdivision 4, paragraph (a), clause (1); and
7.9 (2) "qualifying unemployment benefits" has the meanings given in subdivision 2,
7.10paragraph (a); subdivision 3, paragraph (a); and subdivision 4, paragraph (a), clause (2), as
7.11applicable to the participating higher education educational institution.
7.12 (b) The commissioner of employment and economic development shall calculate and
7.13certify the qualifying unemployment benefits payments charged and credited to the
7.14reimbursable account of the participating higher education educational institutions as
7.15provided under section 268.045 each calendar quarter and share and transmit the applicable
7.16certified amount to:
7.17 (1) the Board of Regents of the University of Minnesota for the purposes of
7.18reimbursement under subdivision 2;
7.19 (2) the Board of Trustees of the Minnesota State Colleges and Universities for the
7.20purposes of reimbursement under subdivision 3; or
7.21 (3) the commissioner of the Office of Higher Education for the purposes of reimbursement
7.22under subdivision 4.
7.23 Subd. 2.University of Minnesota reimbursement account.(a) For the purposes of
7.24this subdivision, "qualifying unemployment benefits" means unemployment benefits charged
7.25and credited to the University of Minnesota as provided under section 268.045 for an
7.26applicant for any week during a period between successive academic years or terms, if the
7.27applicant worked in a capacity other than instructional, research, or principal administrative.
7.28 (b) There is created in the special revenue fund an account, to be known as the University
7.29of Minnesota reimbursement account, that does not lapse nor revert to any other fund or
7.30account. This account consists of all money appropriated for the purposes of this subdivision,
7.31unless otherwise appropriated by law. Funds appropriated for the purposes of reimbursement
7Sec. 6.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 8.1under this subdivision must be transferred to the University of Minnesota reimbursement
8.2account in the special revenue fund.
8.3 (c) As provided in this subdivision, money in the account is appropriated to the Board
8.4of Regents of the University of Minnesota and shall be used to reimburse the University of
8.5Minnesota for payments of qualifying unemployment benefits certified under subdivision
8.61, paragraph (b), clause (1). The Board of Regents shall reimburse the University of
8.7Minnesota for certified reimbursement amounts in the form and manner prescribed by the
8.8board.
8.9 Subd. 3.Minnesota State Colleges and Universities reimbursement account.(a) For
8.10the purposes of this subdivision, "qualifying unemployment benefits" means unemployment
8.11benefits charged and credited to a Minnesota state college or university governed by the
8.12Board of Trustees as provided under section 268.045 for an applicant for any week during
8.13a period between successive academic years or terms, if the applicant worked in a capacity
8.14other than instructional, research, or principal administrative.
8.15 (b) There is created in the special revenue fund an account, to be known as the Minnesota
8.16State Colleges and Universities reimbursement account, that does not lapse nor revert to
8.17any other fund or account. This account consists of all money appropriated for the purposes
8.18of this subdivision unless otherwise appropriated by law. Funds appropriated for the purposes
8.19of reimbursement under this subdivision must be transferred to the Minnesota State Colleges
8.20and Universities reimbursement account in the special revenue fund.
8.21 (c) As provided in this subdivision, money in the account is appropriated to the Board
8.22of Trustees of the Minnesota State Colleges and Universities and shall be used to reimburse
8.23individual Minnesota state colleges and universities for payments of qualifying
8.24unemployment benefits certified under subdivision 1, paragraph (b), clause (2). The Board
8.25of Trustees shall reimburse individual Minnesota state colleges and universities for certified
8.26reimbursement amounts in the form and manner prescribed by the board. If certified
8.27reimbursement amounts exceed the money available in the Minnesota State Colleges and
8.28Universities reimbursement account, reimbursement shall be dispersed to individual
8.29Minnesota state colleges and universities on a pro rata basis.
8.30 Subd. 4.Tribal colleges reimbursement account.(a) For the purposes of this
8.31subdivision, the following terms have the meanings given:
8.32 (1) "Tribal college" means Leech Lake Tribal College, White Earth Tribal College, or
8.33Red Lake Nation Tribal College, referred to collectively in this subdivision as Tribal colleges;
8.34and
8Sec. 6.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 9.1 (2) "qualifying unemployment benefits" means unemployment benefits charged and
9.2credited to a Tribal college as provided under section 268.045 for an applicant for any week
9.3during a period between successive academic years or terms, if the applicant worked in a
9.4capacity other than instructional, research, or principal administrative.
9.5 (b) There is created in the special revenue fund an account, to be known as the Tribal
9.6colleges reimbursement account, that does not lapse nor revert to any other fund or account.
9.7This account consists of all money appropriated for the purposes of this subdivision unless
9.8otherwise appropriated by law. Funds appropriated for the purposes of reimbursement under
9.9this section must be transferred to the Tribal colleges reimbursement account in the special
9.10revenue fund.
9.11 (c) As provided in this subdivision, money in the account is appropriated to the
9.12commissioner of the Office of Higher Education and shall be used to reimburse individual
9.13Tribal colleges for payments of qualifying unemployment benefits certified under subdivision
9.141, paragraph (b), clause (3). The commissioner shall administer payments of certified
9.15reimbursement amounts to a Tribal college on or before the last day of the month following
9.16the end of the next calendar quarter following certification. If the certified reimbursement
9.17amounts exceed the money available in the Tribal colleges reimbursement account,
9.18reimbursement shall be dispersed to individual Tribal colleges on a pro rata basis.
9.19 EFFECTIVE DATE.This section is effective the day following final enactment.
9.20 Sec. 7. REPORT.
9.21 By January 15 of each year, the Department of Education, in consultation with the
9.22Department of Employment and Economic Development, must report to the education
9.23committees of the legislature about the annual reimbursable costs and the number of hourly
9.24school workers receiving unemployment insurance benefits during the summer term. To
9.25the extent possible, the report must categorize eligible employees by major job class. The
9.26report must be filed according to Minnesota Statutes, section 3.195.
9.27 Sec. 8. TRANSFERS.
9.28 (a) $68,470,000 in fiscal year 2024 is transferred from the general fund to the Board of
9.29Regents of the University of Minnesota for the purposes of reimbursement under Minnesota
9.30Statutes, section 268.193, subdivision 3, and subject to the requirements of that subdivision.
9.31This is a onetime transfer and is available until expended.
9Sec. 8.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 10.1 (b) $39,123,000 in fiscal year 2024 is transferred from the general fund to the Board of
10.2Trustees of the Minnesota State Colleges and Universities for the purposes of reimbursement
10.3under Minnesota Statutes, section 268.193, subdivision 4, and subject to the requirements
10.4of that subdivision. This is a onetime transfer and is available until expended.
10.5 (c) $471,000 in fiscal year 2024 is transferred from the general fund to the commissioner
10.6of the Office of Higher Education for the purposes of reimbursement under Minnesota
10.7Statutes, section 268.193, subdivision 5, and subject to the requirements of that subdivision.
10.8This is a onetime transfer and is available until expended.
10.9 EFFECTIVE DATE.This section is effective the day following final enactment.
10.10Sec. 9. APPROPRIATION; DEPARTMENT OF EDUCATION.
10.11 Subdivision 1.Department of Education.The sums indicated in this section are
10.12appropriated from the general fund to the Department of Education in the fiscal years
10.13designated.
10.14 Subd. 2.Unemployment insurance aid administration.(a) For administrative expenses:
2024............10.15 $
2025.....200,00010.16 $
10.17 (b) $200,000 in fiscal year 2025 is for administration of unemployment insurance aid
10.18under Minnesota Statutes, section 124D.995. The base for fiscal year 2026 and thereafter
10.19is $175,000.
10.20 Subd. 3.Unemployment insurance aid.(a) For unemployment insurance aid for school
10.21districts, charter schools, and cooperatives:
2024............10.22 $
2025.....161,755,00010.23 $
10.24 (b) $161,755,000 in fiscal year 2026 and thereafter are base amounts to the Department
10.25of Education for unemployment insurance aid under Minnesota Statutes, section 124D.995.
10.26The base may be adjusted if the Department of Education and the Department of Employment
10.27and Economic Development jointly forecast a different aid entitlement for hourly school
10.28workers.
10.29 (c) If the appropriation is insufficient, the commissioner must proportionately reduce
10.30the aid payment to each recipient pursuant to Minnesota Statutes, section 124D.995,
10.31paragraph (c).
10Sec. 9.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 11.1 Sec. 10. APPROPRIATION; MINNESOTA STATE ACADEMIES.
11.2 Subdivision 1.Minnesota State Academies.The sums indicated in this section are
11.3appropriated from the general fund to the Minnesota State Academies in the fiscal years
11.4designated.
11.5 Subd. 2.Unemployment insurance costs.(a) For unemployment insurance costs for
11.6the Minnesota State Academies:
2024.....217,00011.7 $
2025.....217,00011.8 $
11.9 (b) $217,000 in fiscal year 2025 and thereafter is for unemployment insurance costs.
11.10Sec. 11. APPROPRIATION; PERPICH CENTER FOR ARTS EDUCATION.
11.11 Subdivision 1.Perpich Center for Arts Education.The sums indicated in this section
11.12are appropriated from the general fund to the Perpich Center for Arts Education in the fiscal
11.13years designated.
11.14 Subd. 2.Unemployment insurance costs.(a) For unemployment insurance costs of the
11.15Perpich Center for Arts Education:
2024.....66,00011.16 $
2025.....66,00011.17 $
11.18 (b) $66,000 in fiscal year 2025 and thereafter is for unemployment insurance costs.
11.19Sec. 12. REPEALER.
11.20 Minnesota Statutes 2022, section 268.085, subdivision 8, is repealed.
11.21 EFFECTIVE DATE.This section is effective the day following final enactment.
11Sec. 12.
REVISOR SS H0020-2HF20 SECOND ENGROSSMENT 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: H0020-2