Journal of the House - 44th
Day - Tuesday, April 10, 2007 - Top of Page 2417
STATE OF MINNESOTA
EIGHTY-FIFTH SESSION - 2007
_____________________
FORTY-FOURTH DAY
Saint Paul, Minnesota, Tuesday, April 10, 2007
The House of Representatives convened at 12:00 noon and was
called to order by Margaret Anderson Kelliher, Speaker of the House.
Prayer was offered by the Reverend Dr.
Steve Trewartha, Holy Trinity Lutheran Church, New Prague, Minnesota.
The members of the House gave the pledge of allegiance to the
flag of the United States of America.
The roll was called and the following members were present:
Abeler
Anderson, B.
Anderson, S.
Anzelc
Atkins
Benson
Berns
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Cornish
Davnie
Dean
DeLaForest
Demmer
Dettmer
Dill
Dittrich
Dominguez
Doty
Eastlund
Eken
Emmer
Erhardt
Erickson
Faust
Finstad
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kohls
Kranz
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Nornes
Norton
Olin
Olson
Otremba
Ozment
Paulsen
Paymar
Pelowski
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruth
Ruud
Sailer
Scalze
Seifert
Sertich
Severson
Shimanski
Simon
Simpson
Slawik
Slocum
Smith
Solberg
Sviggum
Swails
Thao
Thissen
Tillberry
Tingelstad
Tschumper
Urdahl
Wagenius
Walker
Ward
Wardlow
Welti
Westrom
Winkler
Wollschlager
Zellers
Spk. Kelliher
A quorum was present.
Beard and Clark were excused.
The Chief Clerk proceeded to read the Journal of the preceding
day. Morgan moved that further reading of the Journal be suspended and that the
Journal be approved as corrected by the Chief Clerk. The motion prevailed.
Journal of the House - 44th
Day - Tuesday, April 10, 2007 - Top of Page 2418
REPORTS
OF CHIEF CLERK
S. F. No. 1333 and H. F. No. 1675,
which had been referred to the Chief Clerk for comparison, were examined and
found to be identical with certain exceptions.
SUSPENSION
OF RULES
Simon moved that the rules be so far suspended that
S. F. No. 1333 be substituted for H. F. No. 1675
and that the House File be indefinitely postponed. The motion prevailed.
PETITIONS AND COMMUNICATIONS
The following communications were received:
STATE
OF MINNESOTA
OFFICE
OF THE GOVERNOR
SAINT
PAUL 55155
March
30, 2007
The Honorable Margaret
Anderson Kelliher
Speaker of the House of
Representatives
The State of Minnesota
Dear Speaker Kelliher:
Please be advised that I have received, approved, signed, and
deposited in the Office of the Secretary of State the following House Files:
H. F. No. 736, relating to emergency medical services;
changing the name of an award and incentive program.
H. F. No. 1441, relating to trust companies; limited purpose
companies; making nonsubstantive term changes.
H. F. No. 1200, relating to legislation; correcting
erroneous, ambiguous, and omitted text and obsolete references; eliminating
certain redundant, conflicting, and superseded provisions; making miscellaneous
technical corrections to statutes and other laws.
H. F. No. 274, relating to the Rural Finance Authority;
providing for sale of bonds; appropriating money.
Sincerely,
Tim
Pawlenty
Governor
Journal of the House - 44th
Day - Tuesday, April 10, 2007 - Top of Page 2419
STATE
OF MINNESOTA
OFFICE
OF THE SECRETARY OF STATE
ST.
PAUL 55155
The Honorable Margaret
Anderson Kelliher
Speaker of the House of
Representatives
The Honorable James P.
Metzen
President of the Senate
I have the honor to inform you that the following enrolled Acts
of the 2007 Session of the State Legislature have been received from the Office
of the Governor and are deposited in the Office of the Secretary of State for
preservation, pursuant to the State Constitution, Article IV, Section 23:
S. F. No. |
H. F. No. |
Session Laws Chapter No. |
Time and Date Approved 2007 |
Date Filed 2007 |
736 11 5:02
p.m. March 30 April
2
1441 12 5:05 p.m.
March 30 April
2
1200 13 5:10 p.m.
March 30 April
2
60 14 5:15 p.m.
March 30 April
2
1332 15 5:10 p.m.
March 30 April
2
274 16 5:20
p.m. March 30 April
2
Sincerely,
Mark
Ritchie
Secretary
of State
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Lieder
from the Transportation Finance Division to which was referred:
H. F. No.
763, A bill for an act relating to highways; regulating highway contracts;
amending Minnesota Statutes 2006, section 161.32, subdivisions 1, 1b, 4.
Reported
the same back with the recommendation that the bill pass and be re-referred to
the Committee on Finance.
The report was adopted.
Journal of the House - 44th
Day - Tuesday, April 10, 2007 - Top of Page 2420
Carlson from the Committee
on Finance to which was referred:
S. F. No. 167, A bill for an
act relating to unemployment insurance; making various policy, housekeeping,
and style changes to the Minnesota Unemployment Insurance Law; incorporating
certain administrative rules into Minnesota Statutes; modifying fraud penalties;
amending Minnesota Statutes 2006, sections 268.001; 268.03, subdivisions 1, 2;
268.035, subdivisions 1, 4, 9, 10, 11, 12, 13, 14, 15, 17, 20, 21a, 23, 23a,
24, 26, 29, 30, by adding a subdivision; 268.042, subdivisions 1, 3, 4;
268.043; 268.0435; 268.044, subdivisions 1, 1a, 2, 3, 4; 268.045, subdivision
1; 268.046; 268.047, subdivisions 1, 2, 3, 5; 268.051, subdivisions 1, 1a, 2,
3, 4, 4a, 5, 6, 7, 8, 9; 268.052, subdivisions 1, 2, 3, 4, 5; 268.0525;
268.053, subdivisions 1, 2, 3; 268.057, subdivisions 1, 2, 3, 4, 5, 6, 7, 10;
268.058; 268.059; 268.0625, subdivisions 4, 5; 268.063; 268.064; 268.065,
subdivisions 1, 3; 268.066; 268.067; 268.0675; 268.068; 268.069, subdivisions
1, 2, 3; 268.07, subdivisions 1, 2, 3a, 3b; 268.084; 268.085, subdivisions 1, 2,
3, 3a, 4, 5, 6, 7, 8, 9, 11, 12, 13, 13a, 13b, 13c, 16; 268.086, subdivisions
1, 2, 3, 5, 6, 7, 8, 9; 268.087; 268.095, subdivisions 1, 2, 3, 4, 5, 6, 6a, 7,
10, 11; 268.101; 268.103, subdivisions 1, 2; 268.105, subdivisions 1, 2, 3, 3a,
4, 5, 6, 7; 268.115; 268.125, subdivisions 3, 4, 5; 268.131, subdivision 1;
268.135; 268.145, subdivisions 1, 2, 3; 268.155; 268.18, subdivisions 1, 2, 2b,
4, 5, 6; 268.182, subdivisions 1, 2; 268.184, subdivisions 1, 1a; 268.186;
268.188; 268.19, subdivisions 1, 1a, 2; 268.192; 268.194, subdivisions 1, 2, 3,
4, 5, 6; 268.196, subdivisions 1, 3; 268.20; 268.21; 268.22; 268.23; proposing
coding for new law in Minnesota Statutes, chapter 268; repealing Minnesota
Statutes 2006, sections 268.0435; 268.0511; 268.085, subdivision 10; 268.103,
subdivision 4; Minnesota Rules, parts 3315.0210; 3315.0220; 3315.0515;
3315.0520; 3315.0525; 3315.0530, subparts 2, 3, 4, 5, 6; 3315.0540; 3315.0550;
3315.0910, subparts 1, 2, 3, 4, 5, 6, 7, 8; 3315.1005, subparts 1, 3;
3315.1315, subpart 4; 3315.2010; 3315.2810, subparts 2, 4.
Reported the same back with
the following amendments:
Delete everything after the
enacting clause and insert:
"ARTICLE 1
POLICY CHANGES
Section 1. Minnesota
Statutes 2006, section 268.035, subdivision 4, is amended to read:
Subd. 4. Base period. "Base period"
means:
(1) the first four of the
last five completed calendar quarters prior to before the
effective date of an applicant's benefit account application for
unemployment benefits as set forth below:
If the benefit account application
for unemployment benefits is
effective on or between these dates: The base period
is the prior:
January 1 - March 31 October 1
- September 30
April 1 - June 30 January
1 - December 31
July 1 - September 30 April
1 - March 31
October 1 - December 31 July
1 - June 30
(2) if the applicant has
insufficient wage credits to establish a benefit account under clauses (1) and
(3), and during the base period under clause (1) an applicant received
workers' compensation for temporary disability under chapter 176 or a similar
federal law or similar law of another state, or if an applicant whose own
serious illness caused a loss of work for which the applicant received compensation
for loss of wages from some other source, the applicant may request a an
extended base period as follows:
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Day - Tuesday, April 10, 2007 - Top of Page 2421
(i) if an applicant was
compensated for a loss of work of seven to 13 weeks, the base period shall
be is the first four of the last six completed calendar quarters prior
to before the effective date of the benefit account
application for unemployment benefits;
(ii) if an applicant was
compensated for a loss of work of 14 to 26 weeks, the base period shall be
is the first four of the last seven completed calendar quarters prior to
before the effective date of the benefit account application for
unemployment benefits;
(iii) if an applicant was
compensated for a loss of work of 27 to 39 weeks, the base period shall be
is the first four of the last eight completed calendar quarters prior to
before the effective date of the benefit account application for
unemployment benefits; and
(iv) if an applicant was
compensated for a loss of work of 40 to 52 weeks, the base period shall be
is the first four of the last nine completed calendar quarters prior to
before the effective date of the benefit account application for
unemployment benefits;
(3) if the applicant qualifies
for a base period under clause (2), but has insufficient wage credits to
establish a benefit account, the applicant may request a under clause
(1), an alternate base period of the last four completed calendar quarters prior
to before the date the applicant's benefit account
application for unemployment benefits is effective will be used.
This base period may can be used only once during any
five-calendar-year period 30 calendar days or more after the end of the last
completed quarter, when a wage detail report has been, or should have been,
filed for that quarter under section 268.044; and
(4) no base period under
clause (1), (2), or (3) shall may include wage credits upon which
a prior benefit account was established.
EFFECTIVE DATE. This section applies to
applications for unemployment benefits filed effective on or after September
30, 2007.
Sec. 2. Minnesota Statutes
2006, section 268.035, subdivision 17, is amended to read:
Subd. 17. Filing; filed. "Filing" or
"filed" means the delivery of any document to the commissioner or any
of the commissioner's agents, or the depositing of the document in the United
States mail properly addressed to the department with postage prepaid, in which
case the document shall be is considered filed on the day
indicated by the cancellation mark of the United States Postal Service.
If, where allowed, an
application, protest, appeal, or other required action is made by
electronic transmission, it shall be is considered filed on the
day received by the department.
EFFECTIVE DATE. This section is
effective September 30, 2007.
Sec. 3. Minnesota Statutes
2006, section 268.043, is amended to read:
268.043 DETERMINATIONS OF COVERAGE.
(a) The commissioner, upon the commissioner's own motion or upon
application of a person, shall determine if that organization or person
is an employer or whether services performed for it constitute employment and
covered employment, or whether the compensation for services constitutes wages,
and shall notify the person of the determination. The determination shall
be is final unless the organization or person, within 30
20 calendar days after sending of the determination by mail or electronic
transmission, files a protest. Upon receipt of a protest, the commissioner
shall review all available evidence and determine whether an error has been
made. The commissioner
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Day - Tuesday, April 10, 2007 - Top of Page 2422
shall send to the person, by
mail or electronic transmission, an affirmation or redetermination. The
affirmation or redetermination shall be final unless, within 30 calendar days
after sending of the affirmation or redetermination to the person by mail or
electronic transmission, an appeal is filed. Proceedings on the appeal shall be
are conducted in accordance with section 268.105.
(b) No person shall may be initially determined an
employer, or that services performed for it were in employment or covered
employment, for periods more than four years prior to before the
year in which the determination is made, unless the commissioner finds that
there was fraudulent action to avoid liability under this chapter.
EFFECTIVE DATE. This section applies to
determinations issued on or after September 30, 2007.
Sec. 4. Minnesota Statutes 2006, section 268.047, subdivision 2, is
amended to read:
Subd. 2. Exceptions for all
employers. Unemployment benefits paid shall will not be used
in computing the future tax rate of a taxpaying base period employer or charged
to the reimbursable account of a base period nonprofit or government employer
that has elected to be liable for reimbursements when:
(1) the applicant was discharged from the employment because of
aggravated employment misconduct as determined under section 268.095. This
exception shall apply applies only to unemployment benefits paid
for periods after the applicant's discharge from employment;
(2) an applicant's discharge from that employment occurred because a law
required removal of the applicant from the position the applicant held;
(3) the employer is in the tourist or recreation industry and is in
active operation of business less than 15 calendar weeks each year and the
applicant's wage credits from the employer are less than 600 times the
applicable state or federal minimum wage;
(4)
the employer provided regularly scheduled part-time employment to the applicant
during the applicant's base period and continues to provide the applicant with
regularly scheduled part-time employment during the benefit year of at least 90
percent of the part-time employment provided in the base period, and is an
involved employer because of the applicant's loss of other employment. This
exception shall terminate terminates effective the first week
that the employer fails to meet the benefit year employment requirements. This
exception shall apply applies to educational institutions without
consideration of the period between academic years or terms;
(4)
(5) the
employer is a fire department or firefighting corporation or operator of a
life-support transportation service, and continues to provide employment for
the applicant as a volunteer firefighter or a volunteer ambulance service
personnel during the benefit year on the same basis that employment was
provided in the base period. This exception shall terminate
terminates effective the first week that the employer fails to meet the
benefit year employment requirements;
(5)
(6) the
applicant's unemployment from this employer was a direct result of the
condemnation of property by a governmental agency, a fire, flood, or act of
nature, where 25 percent or more of the employees employed at the affected
location, including the applicant, became unemployed as a result. This exception
shall does not apply where the unemployment was a direct result
of the intentional act of the employer or a person acting on behalf of the
employer;
(6)
(7) the
unemployment benefits were paid by another state as a result of the transferring
of wage credits under a combined wage arrangement provided for in section
268.131;
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(7)
(8) the
applicant stopped working because of a labor dispute at the applicant's primary
place of employment if the employer was not a party to the labor dispute;
(8)
(9) the
unemployment benefits were determined overpaid unemployment benefits under
section 268.18; or
(9)
(10) the
trust fund was reimbursed for the unemployment benefits by the federal
government.
EFFECTIVE DATE. This section applies to
benefits paid on benefit accounts filed effective on or after September 30,
2007.
Sec. 5. Minnesota Statutes 2006, section 268.047, subdivision 5, is
amended to read:
Subd. 5. Notice of unemployment
benefits paid. (a) The commissioner shall notify each employer at least
quarterly by mail or electronic transmission of the unemployment benefits paid
each applicant that will be used in computing the future tax rate of a
taxpaying employer, or that have been charged to the reimbursable account of a
nonprofit or government employer that has elected to be liable for
reimbursements.
(b) A notice under this subdivision shall is not be
subject to protest or appeal. The commissioner may at any time upon the
commissioner's own motion correct any error that resulted in an incorrect
notice under paragraph (a) and issue a corrected notice.
EFFECTIVE DATE. This section is
effective September 30, 2007.
Sec. 6. Minnesota Statutes 2006, section 268.051, subdivision 1, is
amended to read:
Subdivision 1. Payments. (a)
Unemployment insurance taxes and any additional assessments, fees, or
surcharges shall accrue and become payable by each employer for each
calendar year on the taxable wages that the employer paid to employees in
covered employment, except for:
(1) nonprofit organizations that elect to make reimbursements as
provided in section 268.053; and
(2) the state of Minnesota and political subdivisions that make
reimbursements, unless they elect to pay taxes as provided in section 268.052.
Except as allowed under section 268.0511, Each employer shall
must pay taxes quarterly, at the employer's assigned tax rate under
subdivision 6, on the taxable wages paid to each employee. The commissioner
shall compute the tax due from the wage detail report required under section
268.044 and notify the employer of the tax due. The taxes and any additional
special assessments, fees, or surcharges shall must be paid
to the trust fund and must be received by the department on or before the last
day of the month following the end of the calendar quarter.
(b) The tax amount computed, if not a whole dollar, shall be
is rounded down to the next lower whole dollar.
(c) If for any reason the wages on the wage detail report under section
268.044 are adjusted for any quarter, the commissioner shall recompute the
taxes due for that quarter and assess the employer for any amount due or credit
the employer as appropriate.
EFFECTIVE DATE. This section is
effective January 1, 2008.
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Day - Tuesday, April 10, 2007 - Top of Page 2424
Sec. 7. Minnesota Statutes
2006, section 268.051, subdivision 5, is amended to read:
Subd. 5. Tax rate for new employers. (a) Each
new taxpaying employer that does not qualify for an experience rating under
subdivision 3, except new employers in a high experience rating industry, shall
must be assigned, for a calendar year, a tax rate the higher of (1) one
percent, or (2) the tax rate computed, to the nearest one-hundredth of a
percent, by dividing the total amount of unemployment benefits paid all
applicants during the 48 calendar months ending on June 30 of the prior
calendar year by the total taxable wages of all taxpaying employers during the
same period, plus the applicable base tax rate and any additional assessments
under subdivision 2, paragraph (d).
(b) Each new taxpaying
employer in a high experience rating industry that does not qualify for an
experience rating under subdivision 3, shall must be assigned,
for a calendar year, a tax rate of 8.00 percent, plus the applicable base tax
rate and any additional assessments under subdivision 2, paragraph (d).
An employer is considered to
be in a high experience rating industry if:
(1) the employer is engaged
in residential, commercial, or industrial construction, including general
contractors;
(2) the employer is engaged
in sand, gravel, or limestone mining;
(3) the employer is engaged
in the manufacturing of concrete, concrete products, or asphalt; or
(4) the employer is engaged
in road building, repair, or resurfacing, including bridge and tunnels and
residential and commercial driveways and parking lots.
(c) The commissioner shall
send to the new employer, by mail or electronic transmission, notice of the tax
rate assigned. An employer may protest appeal the assignment of a
tax rate in accordance with the procedures in subdivision 6, paragraph (c).
EFFECTIVE DATE. This section applies to
tax rate notices issued on or after September 30, 2007.
Sec. 8. Minnesota Statutes
2006, section 268.051, subdivision 6, is amended to read:
Subd. 6. Notice of tax rate. (a) On or before
each December 15, the commissioner shall notify each employer by mail or
electronic transmission of the employer's tax rate, along with any additional
assessments, fees, or surcharges, for the following calendar year. The notice shall
must contain the base tax rate and the factors used in determining the
employer's experience rating. Unless a protest an appeal of the
tax rate is made, the computed tax rate shall be is final, except
for fraud or recomputation required under subdivision 4 or 4a, and shall be
is the rate at which taxes shall must be paid. A recomputed
tax rate under subdivision 4 or 4a shall be is the rate
applicable for the quarter that includes the date of acquisition and any
quarter thereafter during the calendar year in which the acquisition occurred.
The tax rate shall is not be subject to collateral attack
by way of claim for a credit adjustment or refund, or otherwise.
(b) If the legislature, subsequent
to after the sending of the tax rate, changes any of the factors
used to determine the rate, a new tax rate based on the new factors shall
must be computed and sent to the employer.
(c) A review of an
employer's tax rate may be obtained by the employer filing a protest
an appeal within 30 20 calendar days from the date the tax
rate notice was sent to the employer. Upon receipt of the protest, the
commissioner shall review the tax rate to determine whether or not there has
been any error in computation or assignment of the tax rate. The commissioner
shall either affirm or make a redetermination of the rate and a notice of the
affirmation or redetermination shall be sent to the employer by mail or
electronic transmission. The
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affirmation or
redetermination shall be final unless the employer files an appeal within 30
calendar days after the date the affirmation or redetermination was sent. Proceedings on the appeal shall
be are conducted in accordance with section 268.105.
(d) The commissioner may at
any time upon the commissioner's own motion correct any error in the computation
or the assignment of an employer's tax rate.
EFFECTIVE DATE. This section is
effective for determinations issued on or after September 30, 2007.
Sec. 9. Minnesota Statutes
2006, section 268.053, subdivision 2, is amended to read:
Subd. 2. Determination, protest, and appeal.
The commissioner shall notify each nonprofit organization by mail or electronic
transmission of any determination of its status as an employer with covered
employment and of the effective date of any election or termination of
election. The determinations shall be final unless a protest is filed within
30 calendar days after sending of the determination. Upon receipt of a protest,
the commissioner shall review all available evidence and determine whether an
error has been made. The commissioner shall send to the nonprofit organization,
by mail or electronic transmission, an affirmation or redetermination. The
affirmation or redetermination shall be determination is final
unless an appeal is filed within 30 20 calendar days of sending
the affirmation or redetermination determination. Proceedings on
the appeal shall be are conducted in accordance with section
268.105.
EFFECTIVE DATE. This section is
effective for determinations issued on or after September 30, 2007.
Sec. 10. Minnesota Statutes
2006, section 268.057, subdivision 7, is amended to read:
Subd. 7. Credit adjustments, refunds. (a) If an
employer makes an application for a credit adjustment of any amount paid under
this chapter or section 116L.20 within four years of the date that the payment
was due, in a manner and format prescribed by the commissioner, and the
commissioner determines that the payment or any portion was erroneous, the
commissioner shall make an adjustment and issue a credit without interest. If a
credit cannot be used, the commissioner shall refund, without interest, the
amount erroneously paid. The commissioner, on the commissioner's own motion,
may make a credit adjustment or refund under this subdivision.
Any refund returned to the
commissioner shall be is considered unclaimed property under
chapter 345.
(b) If a credit adjustment
or refund is denied in whole or in part, a notice of denial shall
must be sent to the employer by mail or electronic transmission. Within
30 calendar days after sending of The notice of denial, the employer may
protest.
Upon receipt of a timely
protest, the commissioner shall review the denial and either affirm the denial
or redetermine the credit adjustment or refund. The affirmation of denial or
redetermination of the credit adjustment or refund, sent by mail or electronic
transmission, shall be is
final unless an employer files an appeal within 30 20 calendar
days after sending. Proceedings on the appeal shall be are
conducted in accordance with section 268.105.
EFFECTIVE DATE. This section is
effective for all denials issued on or after September 30, 2007.
Sec. 11. Minnesota Statutes
2006, section 268.063, is amended to read:
268.063 PERSONAL LIABILITY.
(a) Any officer, director,
or employee of a corporation or any manager, governor, member, or employee of a
limited liability company who
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(1) either individually or jointly with others, have or should have had
control of, supervision over, or responsibility for paying the amounts due
under this chapter or section 116L.20, and
(2) knowingly fails to pay the amounts due, shall be is
personally liable for the amount due in the event the employer does not pay.
For purposes of this section, "knowingly" means that the
facts demonstrate that the responsible individual used or allowed the use of
corporate or company assets to pay other creditors knowing that the amounts due
under this chapter were unpaid. An evil motive or intent to defraud is not
necessary.
(b) Any partner of a limited liability partnership, or professional
limited liability partnership, shall be is jointly and severally liable
for any amount due under this chapter or section 116L.20 in the event the
employer does not pay.
(c) Any personal representative of the estate of a decedent or
fiduciary who voluntarily distributes the assets without reserving a sufficient
amount to pay the amount due shall be is personally liable for
the deficiency.
(d) The personal liability of any individual shall survive
survives dissolution, reorganization, receivership, or assignment for the
benefit of creditors. For the purposes of this section, all wages paid by the
employer shall be are considered earned from the individual
determined to be personally liable.
(e) The commissioner shall make a determination as to personal
liability. The determination shall be is final unless the
individual found to be personally liable, within 30 20 calendar
days after sending, by mail or electronic transmission, a notice of
determination, files a protest. Upon receipt of the protest, the
commissioner shall reexamine the personal liability determination and either
affirm or redetermine the assessment of personal liability and a notice of the
affirmation or redetermination shall be sent to the individual by mail or
electronic transmission. The affirmation or redetermination shall become final
unless an appeal is filed within 30 calendar days after the date of
sending. Proceedings on the appeal shall be are conducted in
accordance with section 268.105.
EFFECTIVE DATE. This section is
effective for determinations issued on or after September 30, 2007.
Sec. 12. Minnesota Statutes 2006, section 268.07, subdivision 2, is
amended to read:
Subd. 2. Benefit account
requirements and weekly unemployment benefit amount and maximum amount of
unemployment benefits. (a) To establish a benefit account, an applicant
must have:
(1) high quarter wage credits of at least $1,000 or more;
and
(2) wage credits, in other than the high quarter, of at least
$250 or more.
(b) If an applicant has established a benefit account, the weekly
unemployment benefit amount available during the benefit year shall be
is the higher of:
(1) 50 percent of the applicant's average weekly wage during the base
period, to a maximum of 66-2/3 percent of the state's average weekly wage; or
(2) 50 percent of the applicant's average weekly wage during the high
quarter, to a maximum of 45 43 percent of the state's average
weekly wage.
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The applicant's average weekly wage under clause (1) shall be
is computed by dividing the total wage credits by 52. The applicant's
average weekly wage under clause (2) shall be is computed by
dividing the high quarter wage credits by 13.
(c) The state's maximum weekly unemployment benefit amount and an
applicant's weekly unemployment benefit amount and maximum amount of
unemployment benefits available shall be is rounded down to the
next lower whole dollar. The state's maximum weekly benefit amount, computed in
accordance with section 268.035, subdivision 23, shall apply applies
to a benefit account established effective on or after the first last
Sunday in August October. Once established, an applicant's weekly
unemployment benefit amount shall is not be affected by
the first last Sunday in August October change in
the state's maximum weekly unemployment benefit amount.
(d) The maximum amount of unemployment benefits available on any
benefit account shall be is the lower of:
(1) 33-1/3 percent of the applicant's total wage credits; or
(2) 26 times the applicant's weekly unemployment benefit amount.
EFFECTIVE DATE. This section is
effective December 1, 2007.
Sec. 13. Minnesota Statutes 2006, section 268.085, subdivision 2, is
amended to read:
Subd. 2. Not eligible. An
applicant shall not be eligible to receive is ineligible for
unemployment benefits for any week:
(1) that occurs before the effective date of a benefit account;
(2) that the applicant, at the beginning of the week, has an
outstanding fraud overpayment balance under section 268.18, subdivision 2,
including any penalties and interest;
(3) that
occurs in a period when the applicant is a student in attendance at, or on
vacation from a secondary school including the period between academic years or
terms;
(3)
(4) that the
applicant is incarcerated or performing court ordered community service. The
applicant's weekly unemployment benefit amount shall be is
reduced by one-fifth for each day the applicant is incarcerated or performing
court ordered community service. If the computation of the reduced unemployment
benefits is not a whole dollar, it shall be is rounded down to
the next lower whole dollar;
(4)
(5) that
the applicant fails or refuses to provide information on an issue of eligibility
ineligibility required under section 268.101 or an issue of
disqualification required under section 268.101;
(5)
(6) that
the applicant is performing services 32 hours or more, in employment, covered
employment, noncovered employment, volunteer work, or self-employment
regardless of the amount of any earnings; or
(6)
(7) with
respect to which the applicant is receiving, has received, or has filed an
application for unemployment benefits under any federal law or the law of any
other state. If the appropriate agency finally determines that the applicant is
not entitled to the unemployment benefits, this clause shall does
not apply.
EFFECTIVE DATE. This section is
effective and applies to all outstanding fraud overpayment balances, including
penalty and interest, as of September 30, 2007.
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Sec. 14. Minnesota Statutes 2006, section 268.085, subdivision 3, is
amended to read:
Subd. 3. Payments that delay
unemployment benefits. (a) An applicant shall is not be
eligible to receive unemployment benefits for any week with respect to which
the applicant is receiving, has received, or has filed for payment, equal to or
in excess of the applicant's weekly unemployment benefit amount, in the form
of:
(1) vacation pay paid upon temporary, indefinite, or seasonal
separation. This clause shall does not apply to vacation pay paid
upon a permanent separation from employment;
(2) severance pay, bonus pay, sick pay, and any other money
payments, except earnings under subdivision 5, and back pay under subdivision
6, paid by an employer because of, upon, or after separation from employment,
but only if the money payment is considered wages at the time of payment
under section 268.035, subdivision 29, or United States Code, title 26,
section 3121, clause (2), of the Federal Insurance Contribution Act; or
(3) pension, retirement, or annuity payments from any plan contributed
to by a base period employer including the United States government, except
Social Security benefits which that are provided for in
subdivision 4. The base period employer is considered to have contributed
to the plan if the contribution is excluded from the definition of wages under
section 268.035, subdivision 29, clause (1), or United States Code, title 26,
section 3121, clause (2), of the Federal Insurance Contribution Act.
An applicant shall is not be considered to have
received the lump sum payment if the applicant immediately deposits that
payment in a qualified pension plan or account; or.
(4) holiday pay.
(b) This subdivision shall apply applies to all the weeks
of payment and shall be. Payments under paragraph (a), clauses (1)
and (2), are applied to the period immediately following the last day of
employment. and the number of weeks of payment shall be,
for purposes of those clauses, is determined as follows:
(1) if the payments are made periodically, the total of the payments to
be received shall be is divided by the applicant's last level of
regular weekly pay from the employer; or
(2) if the payment is made in a lump sum, that sum shall be
is divided by the applicant's last level of regular weekly pay from the
employer.
(c) If the payment is less than the applicant's weekly unemployment
benefit amount, unemployment benefits shall be are reduced by the
amount of the payment. If the computation of reduced unemployment benefits is
not a whole dollar, it shall be is rounded down to the next lower
whole dollar.
EFFECTIVE DATE. This section is
effective for unemployment benefits paid on or after September 30, 2007,
regardless of when the continued request was filed or the week for which the
unemployment benefits are paid.
Sec. 15. Minnesota Statutes 2006, section 268.095, subdivision 1, is
amended to read:
Subdivision 1. Quit. An
applicant who quit employment shall be disqualified from is
ineligible for all unemployment benefits according to subdivision 10 except
when:
(1) the applicant quit the employment because of a good reason caused
by the employer as defined in subdivision 3;
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(2) the applicant quit the employment to accept other covered
employment that provided substantially better terms and conditions of
employment, but the applicant did not work long enough at the second employment
to have sufficient subsequent earnings to satisfy the disqualification
period of ineligibility that would otherwise be imposed under subdivision
10 for quitting the first employment;
(3) the applicant quit the employment within 30 calendar days of
beginning the employment because the employment was unsuitable for the
applicant;
(4) the employment was unsuitable for the applicant and the applicant
quit to enter reemployment assistance training;
(5) the employment was part time and the applicant also had full-time
employment in the base period, from which full-time employment the applicant
separated because of nondisqualifying reasons for which the applicant
was held not to be ineligible, and the wage credits from the full-time employment
are sufficient to meet the minimum requirements to establish a benefit account
under section 268.07;
(6) the applicant quit because the employer notified the applicant that
the applicant was going to be laid off due to because of lack of
work within 30 calendar days. An applicant who quit employment within 30
calendar days of a notified date of layoff due to because of lack
of work shall be disqualified from is ineligible for unemployment
benefits through the end of the week that includes the scheduled date of
layoff;
(7) the applicant quit the employment because the applicant's serious
illness or injury made it medically necessary that the applicant quit, provided
that the applicant inform the employer of the serious illness or injury and
request accommodation and no reasonable accommodation is made available.
If the applicant's serious illness is chemical dependency, this
exception shall does not apply if the applicant was previously
diagnosed as chemically dependent or had treatment for chemical dependency, and
since that diagnosis or treatment has failed to make consistent efforts to
control the chemical dependency; or.
This exception raises an issue of the applicant's being able to work under
section 268.085, subdivision 1, that the commissioner shall determine;
(8) the applicant's loss of child care for the applicant's minor
child caused the applicant to quit the employment, provided the applicant made
reasonable effort to obtain other child care and requested time off or other
accommodation from the employer and no reasonable accommodation is available.
This exception raises an issue of the applicant's availability for
suitable employment under section 268.085, subdivision 1, that the commissioner
shall determine; or
(9) domestic
abuse of the applicant or the applicant's minor child, necessitated the
applicant's quitting the employment. Domestic abuse shall must be
shown by one or more of the following:
(i) a district court order for protection or other documentation of
equitable relief issued by a court;
(ii) a police record documenting the domestic abuse;
(iii) documentation that the perpetrator of the domestic abuse has been
convicted of the offense of domestic abuse;
(iv) medical documentation of domestic abuse; or
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(v) written statement that
the applicant or the applicant's minor child is a victim of domestic abuse,
provided by a social worker, member of the clergy, shelter worker, attorney at
law, or other professional who has assisted the applicant in dealing with the
domestic abuse.
Domestic abuse for purposes
of this clause shall be is defined under section 518B.01.
EFFECTIVE DATE. This section is
effective and applies to all determinations and decisions issued on or after
September 30, 2007.
Sec. 16. Minnesota Statutes
2006, section 268.095, subdivision 6, is amended to read:
Subd. 6. Employment misconduct defined. (a)
Employment misconduct means any intentional, negligent, or indifferent conduct,
on the job or off the job (1) that displays clearly a serious violation of the
standards of behavior the employer has the right to reasonably expect of the
employee, or (2) that displays clearly a substantial lack of concern for the
employment.
Inefficiency, inadvertence,
simple unsatisfactory conduct, a single incident that does not have a
significant adverse impact on the employer, conduct an average reasonable
employee would have engaged in under the circumstances, poor performance
because of inability or incapacity, good faith errors in judgment if judgment
was required, or absence because of illness or injury with proper notice to the
employer, are not employment misconduct.
(b) Conduct that was a
direct result of the applicant's chemical dependency is not employment
misconduct unless the applicant was previously diagnosed chemically dependent
or had treatment for chemical dependency, and since that diagnosis or treatment
has failed to make consistent efforts to control the chemical dependency.
(c) Conduct that was a
result of the applicant, or the applicant's minor child, being a victim of
domestic abuse as defined under section 518B.01, is not employment misconduct.
Domestic abuse shall must be shown as provided for in section
268.095, subdivision 1, clause (8) (9).
(d) A driving offense in
violation of sections 169A.20, 169A.31, or 169A.50 to 169A.53 that interferes
with or adversely affects the employment is employment misconduct.
(e) The definition of
employment misconduct provided by this subdivision shall be is
exclusive and no other definition shall apply applies.
EFFECTIVE DATE. This section is
effective and applies to all determinations and decisions issued on or after September
30, 2007.
Sec. 17. Minnesota Statutes
2006, section 268.105, subdivision 1, is amended to read:
Subdivision 1. Evidentiary hearing by an unemployment law
judge. (a) Upon a timely appeal having been filed, the department shall
must send, by mail or electronic transmission, a notice of appeal to all
involved parties that an appeal has been filed, that a de novo due process
evidentiary hearing will be scheduled, and that the parties have certain rights
and responsibilities regarding the hearing. The department shall must
set a time and place for a de novo due process evidentiary hearing and send
notice to any involved applicant and any involved employer, by mail or
electronic transmission, not less than ten calendar days prior to
before the date of the hearing.
(b) The evidentiary hearing shall
be is conducted by an unemployment law judge without regard to any common
law burden of proof as an evidence gathering inquiry and not an adversarial
proceeding. The unemployment law judge shall must ensure that all
relevant facts are clearly and fully developed. The department shall
may adopt rules
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on evidentiary hearings. The
rules need not conform to common law or statutory rules of evidence and other
technical rules of procedure. The department shall have has
discretion regarding the method by which the evidentiary hearing is conducted.
A report of any employee of the department, except a determination, made in the
regular course of the employee's duties, shall be is competent
evidence of the facts contained in it.
(c) After the conclusion of
the hearing, upon the evidence obtained, the unemployment law judge shall
must make findings of fact and decision and send those, by mail or
electronic transmission, to all involved parties. When the credibility of an
involved party or witness testifying in an evidentiary hearing has a
significant effect on the outcome of a decision, the unemployment law judge
must set out the reason for crediting or discrediting that testimony. The
unemployment law judge's decision is final unless a request for reconsideration
is filed pursuant to under subdivision 2.
(d) Regardless of
paragraph (c), if the appealing party fails to participate in the evidentiary
hearing, the unemployment law judge has the discretion to dismiss the appeal by
summary order. By failing to participate, the appealing party is considered to
have failed to exhaust available administrative remedies unless the appealing
party files a request for reconsideration under subdivision 2 and establishes
good cause for failing to participate in the evidentiary hearing under
subdivision 2, paragraph (d). Submission of a written statement does not
constitute participation. The applicant must participate personally and
appearance solely by a representative does not constitute participation.
(e) Only employees of the
department who are attorneys shall licensed to practice law in
Minnesota may serve as unemployment law judges. The commissioner may
transfer to another unemployment law judge any proceedings pending before an
unemployment law judge.
EFFECTIVE DATE. This section applies to
evidentiary hearings conducted on or after 30 days following the date of final
enactment.
Sec. 18. Minnesota Statutes
2006, section 268.18, subdivision 2, is amended to read:
Subd. 2. Overpayment due to because of fraud.
(a) Any applicant who receives unemployment benefits by knowingly
misrepresenting, misstating, or failing to disclose any material fact, or who
makes a false statement or representation without a good faith belief as to the
correctness of the statement or representation, has committed fraud. After the
discovery of facts indicating fraud, the commissioner shall make a
determination that the applicant obtained unemployment benefits by fraud and
that the applicant must promptly repay the unemployment benefits to the trust
fund. In addition, the commissioner shall assess a penalty equal to 25
percent of the amount fraudulently obtained. If the applicant had a prior
overpayment due to fraud, the commissioner shall, on the present overpayment,
assess a penalty equal to 50 40 percent of the amount fraudulently
obtained. This penalty is in addition to penalties under section 268.182.
(b) Unless the applicant
files an appeal within 30 20 calendar days after the sending of
the determination of overpayment by fraud to the applicant by mail or
electronic transmission, the determination shall become is final.
Proceedings on the appeal shall be are conducted in accordance
with section 268.105.
(c) If the applicant fails
to repay the unemployment benefits, penalty, and interest assessed, the
commissioner shall offset from future unemployment benefits otherwise payable
the total amount due. the total due may also be collected by the
same methods as delinquent payments from an employer. A determination of
overpayment by fraud shall must state the methods of collection
the commissioner may use to recover the overpayment. Money received in
repayment of fraudulently obtained unemployment benefits, penalties, and
interest shall is first be applied to the unemployment
benefits overpaid, then to the penalty amount due, then to any interest due. 62.5
percent of the payments made toward the penalty shall be are
credited to the contingent account and 37.5 percent credited to the
administration account for deterring, detecting, or collecting overpayments.
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(d) If an applicant has been
overpaid unemployment benefits under the law of another state because of fraud
and that state certifies that the applicant is liable to repay the unemployment
benefits and requests the commissioner to recover the overpayment, the
commissioner may offset from future unemployment benefits otherwise payable the
amount of overpayment.
(e) Unemployment benefits
paid for weeks more than four years prior to before the date of a
determination of overpayment by fraud issued under this subdivision shall
are not be considered overpaid unemployment benefits.
EFFECTIVE DATE. This section is
effective for all determinations of overpayment by fraud issued on or after
September 30, 2007.
Sec. 19. Minnesota Statutes 2006,
section 268.194, subdivision 1, is amended to read:
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 is administered by the commissioner exclusively for the
payment of unemployment benefits. This trust fund shall consist
consists 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 tax
rate buydown 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 under a reciprocal unemployment benefit arrangement
with the federal government or any other state;
(7) all money
recovered on overpaid unemployment benefits except, if allowed by federal
law, five percent of any recovered amount is credited to the administration
account;
(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
under 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.
EFFECTIVE DATE. This section is
effective September 30, 2007.
Sec. 20. Minnesota Statutes
2006, section 268.196, subdivision 1, is amended to read:
Subdivision 1. Administration account. (a) There is hereby
created in the state treasury a special account to be known as the
administration account. All money that is deposited or paid into this account shall
be is continuously available to the commissioner for expenditure to
administer the Minnesota unemployment insurance program, and shall
does not lapse at any time. The administration account shall consist
consists of:
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(1) all money received from
the federal government to administer the Minnesota unemployment insurance
program;
(2) five percent of any
money recovered on overpaid unemployment benefits as provided for in section
268.194, subdivision 1, clause (7), which must be used for deterring,
detecting, and collecting overpaid unemployment benefits;
(3) any money received as
compensation for services or facilities supplied to the federal government or
any other state;
(3) (4) any amounts received for
losses sustained by this account or by reason of damage to equipment or
supplies; and
(4) (5) any proceeds from the sale
or disposition of any equipment or supplies that may no longer be necessary for
the proper administration of those sections.
(b) All money in this
account shall must be deposited, administered, and disbursed in
the same manner and under the same conditions and requirements as are provided
by law for the other special accounts in the state treasury. The commissioner
of finance, as treasurer and custodian of this account, shall be is
liable for the faithful performance of duties in connection with this account.
(c) All money in this
account shall must be spent solely for the purposes and in
the amounts found necessary by the United States Secretary of Labor for the
proper and efficient administration of the Minnesota unemployment insurance
program.
EFFECTIVE DATE. This section is
effective September 30, 2007.
Sec. 21. MAXIMUM WEEKLY BENEFIT AMOUNT.
Notwithstanding Minnesota
Statutes, section 268.07, subdivision 2, paragraph (b), clause (2), the maximum
amount of weekly unemployment benefits available based upon the high quarter
calculation is $351.
EFFECTIVE DATE. This section is
effective the day following final enactment and sunsets November 1, 2008.
Sec. 22. REPEALER.
(a) Minnesota Statutes 2006,
sections 268.0435; and 268.0511, are repealed effective January 1, 2008.
(b) Minnesota Statutes 2006,
sections 268.085, subdivision 10; and 268.103, subdivision 4, are repealed
effective September 30, 2007.
ARTICLE 2
POLICY AND TECHNICAL CHANGES
Section 1. Minnesota
Statutes 2006, section 268.035, subdivision 23, is amended to read:
Subd. 23. State's average annual and average weekly
wage. (a) On or before June 30 of each year, the commissioner shall
calculate the state's average annual wage and the state's average weekly wage
in the following manner:
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(1) The sum of the total monthly covered employment reported by all
employers for the prior calendar year shall be is divided by 12
to calculate the average monthly covered employment.
(2) The sum of the total wages paid for all covered employment reported
by all employers for the prior calendar year shall be is divided by
the average monthly covered employment to calculate the state's average annual
wage.
(3) The state's average annual wage shall be is divided
by 52 to calculate the state's average weekly wage.
(b) For purposes of calculating the amount of taxable wages, the
state's average annual wage shall apply applies to the calendar
year following the calculation.
(c) For purposes of calculating the state's maximum weekly unemployment
benefit amount available on any benefit account under section 268.07,
subdivision 2, the state's average weekly wage shall apply applies
to the one-year period beginning the first last Sunday in August
October of the calendar year of the calculation.
EFFECTIVE DATE. This section is
effective December 1, 2007.
Sec. 2. Minnesota Statutes 2006, section 268.051, subdivision 1a, is
amended to read:
Subd. 1a. Payments by electronic
payment required. (a) Every employer that reports 500 50 or
more employees in any calendar quarter on the wage detail report required under
section 268.044 shall must make any payments due under this
chapter and section 116L.20 by electronic payment.
(b) All third-party processors, paying quarterly taxes on behalf
of a client company, shall must make any payments due under this
chapter and section 116L.20 by electronic payment.
(c) Regardless of paragraph (a) or (b), the commissioner shall have
has the discretion to accept payment by other means.
EFFECTIVE DATE. This section is
effective January 1, 2008.
Sec. 3. Minnesota Statutes 2006, section 268.0625, subdivision 4, is
amended to read:
Subd. 4. Notice and right to
hearing. At least 30 calendar days before the commissioner notifies a
licensing authority, a notice of action under this section shall must
be sent to the licensee by mail or electronic transmission. If the licensee
disputes the action, the licensee must appeal within 30 20
calendar days after the sending of the notice to the licensee. The only issue
on any appeal is whether the commissioner has complied with the requirements of
this section. Proceedings on the appeal shall be are conducted in
accordance with section 268.105.
EFFECTIVE DATE. This section is
effective for notices sent on or after September 30, 2007.
Sec. 4. Minnesota Statutes 2006, section 268.065, subdivision 3, is
amended to read:
Subd. 3. Determination of
liability. The commissioner shall make a determination as to the liability
under this section. The determination shall be is final unless
the contractor or person found to be liable files an appeal within 30
20 calendar days after being sent the determination by mail or electronic
transmission. Proceedings on the appeal shall be are conducted in
accordance with section 268.105.
EFFECTIVE DATE. This section applies to
determinations issued on or after September 30, 2007.
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Sec. 5. Minnesota Statutes 2006, section 268.07, subdivision 1, is
amended to read:
Subdivision 1. Application for
unemployment benefits; determination of benefit account. (a) An application
for unemployment benefits may be filed in person, by mail, or by electronic
transmission as the commissioner shall may require. The applicant
must be unemployed at the time the application is filed and must provide all
requested information in the manner required. If the applicant is not
unemployed at the time of the application or fails to provide all requested
information, the communication shall is not be considered
an application for unemployment benefits.
(b) The commissioner shall examine each application for unemployment
benefits to determine the base period and the benefit year, and based upon all
the covered employment in the base period the commissioner shall determine the
weekly unemployment benefit amount available, if any, and the maximum amount of
unemployment benefits available, if any. The determination shall be
is known as the determination of benefit account. A determination of
benefit account shall must be sent to the applicant and all base
period employers, by mail or electronic transmission.
(c) If a base period employer did not provide wage information for the
applicant as provided for in section 268.044, or provided erroneous
information, the commissioner may accept an applicant certification as to wage
credits, based upon the applicant's records, and issue a determination of
benefit account.
(d) The commissioner may, at any time within 24 months from the
establishment of a benefit account, reconsider any determination of benefit
account and make an amended determination if the commissioner finds that the
determination was incorrect for any reason. An amended determination shall
must be promptly sent to the applicant and all base period employers, by
mail or electronic transmission.
(e) If
an amended determination of benefit account reduces the weekly unemployment
benefit amount or maximum amount of unemployment benefits available, any
unemployment benefits that have been paid greater than the applicant was
entitled is considered an overpayment of unemployment benefits under section
268.18, subdivision 1. A determination or amended determination issued
under this section that results in an overpayment of unemployment benefits must
set out the amount of the overpayment and the requirement under section 268.18,
subdivision 1, that the overpaid unemployment benefits must be repaid.
EFFECTIVE DATE. This section applies to
all determinations issued on or after September 30, 2007.
Sec. 6. Minnesota Statutes 2006, section 268.07, subdivision 3a, is
amended to read:
Subd. 3a. Right of appeal.
(a) A determination or amended determination of benefit account shall be
is final unless an applicant or base period employer within 30 20
calendar days after the sending of the determination or amended
determination files an appeal. Every determination or amended determination of
benefit account shall must contain a prominent statement
indicating in clear language the consequences of not appealing. Proceedings on
the appeal shall be are conducted in accordance with section
268.105.
(b) Any applicant or base period employer may appeal from a
determination or amended determination of benefit account on the issue of
whether services performed constitute employment and covered employment.
Proceedings on the appeal shall be are conducted in accordance
with section 268.105.
EFFECTIVE DATE. This section applies to
determinations issued on or after September 30, 2007.
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Sec. 7. Minnesota Statutes 2006, section 268.085, subdivision 5, is
amended to read:
Subd. 5. Deductible earnings.
(a) If the applicant has earnings, including holiday pay, with respect
to any week, from employment, covered employment, noncovered employment,
self-employment, or volunteer work, equal to or in excess of the applicant's
weekly unemployment benefit amount, the applicant shall be is
ineligible for unemployment benefits for that week.
(b) If the applicant has earnings, with respect to any week, that is
less than the applicant's weekly unemployment benefit amount, from employment,
covered employment, noncovered employment, self-employment, or volunteer work, that
amount over the following shall be 55 percent of the earnings are
deducted from the weekly unemployment benefit amount:.
(1) 25 percent of earnings or $50, whichever is higher; and
(2) $200 for earnings from service in the National Guard or a United
States military reserve unit.
The resulting unemployment benefit, if not a whole dollar, shall be
is rounded down to the next lower whole dollar.
(c) No deduction shall be is made from an applicant's
weekly unemployment benefit amount for earnings from service in the National
Guard or a United States military reserve unit or from direct service as a
volunteer firefighter or volunteer ambulance service personnel. This exception
to paragraphs (a) and (b) does not apply to on-call or standby pay provided to
a volunteer firefighter or volunteer ambulance service personnel. No deduction shall
be is made for jury duty pay or for pay as an election judge.
(d) The applicant may report deductible earnings on continued biweekly
requests for unemployment benefits at the next lower whole dollar amount.
(e) Deductible earnings shall does not include any money
considered a deductible payment under subdivision 3, but shall include
includes all other money compensation considered wages
under section 268.035, subdivision 29, and any other money
compensation considered earned income under state and federal law for
income tax purposes.
EFFECTIVE DATE. The striking of
paragraph (b), clause (2), and the insertion of "service in the National
Guard or a United States military reserve unit or from" in paragraph (c) are
effective the Sunday following final enactment. The remainder of the section is
effective for all unemployment benefits paid on or after September 30, 2007,
regardless of when the continued request was filed or the week for which the
unemployment benefits are paid.
Sec. 8. Minnesota Statutes 2006, section 268.101, subdivision 6, is
amended to read:
Subd. 6. Overpayment. A
determination or amended determination that holds an applicant disqualified
or ineligible for unemployment benefits for periods an applicant has been
paid benefits is considered an overpayment of those unemployment benefits under
section 268.18, subdivision 1. A determination or amended determination
issued under this section that results in an overpayment of unemployment
benefits must set out the amount of the overpayment and the requirement under
section 268.18, subdivision 1, that the overpaid unemployment benefits must be
repaid.
EFFECTIVE DATE. This section applies to
determinations issued on or after September 30, 2007.
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Sec. 9. Minnesota Statutes 2006, section 268.105, subdivision 2, is
amended to read:
Subd. 2. Request for
reconsideration. (a) Any involved applicant, involved employer, or the
commissioner may, within 30 20 calendar days of the sending of
the unemployment law judge's decision under subdivision 1, file a request for
reconsideration asking the unemployment law judge to reconsider that decision.
Section 268.103 shall apply applies to a request for
reconsideration. If a request for reconsideration is timely filed, the
unemployment law judge shall must issue an order:
(1) modifying the findings of fact and decision issued under subdivision
1;
(2) setting aside the findings of fact and decision issued under
subdivision 1 and directing that an additional evidentiary hearing be conducted
under subdivision 1; or
(3) affirming the findings of fact and decision issued under
subdivision 1.
(b) Upon a timely request for reconsideration having been filed, the
department shall must send a notice, by mail or electronic
transmission, to all involved parties that a request for reconsideration has
been filed. The notice shall must inform the involved parties:
(1) of the opportunity to provide comment on the request for
reconsideration, and the right under subdivision 5 to obtain a copy of any
recorded testimony and exhibits offered or received into evidence at the
evidentiary hearing;
(2) that providing specific comments as to a perceived factual or legal
error in the decision, or a perceived error in procedure during the evidentiary
hearing, will assist the unemployment law judge in deciding the request for
reconsideration;
(3) of the right to obtain any comments and submissions provided by the
other involved party regarding the request for reconsideration; and
(4) of the provisions of paragraph (c) regarding additional evidence.
This paragraph shall
does not apply if paragraph (d) is applicable.
(c) In deciding a request for reconsideration, the unemployment law
judge shall must not, except for purposes of determining whether
to order an additional evidentiary hearing, consider any evidence that was not
submitted at the evidentiary hearing conducted under subdivision 1.
The unemployment law judge must order an additional evidentiary hearing
if an involved party shows that evidence which was not submitted at the
evidentiary hearing: (1) would likely change the outcome of the decision and
there was good cause for not having previously submitted that evidence; or (2)
would show that the evidence that was submitted at the evidentiary hearing was
likely false and that the likely false evidence had an effect on the outcome of
the decision.
(d) If the involved applicant or involved employer who filed the
request for reconsideration failed to participate in the evidentiary hearing
conducted under subdivision 1, an order setting aside the findings of fact and
decision and directing that an additional evidentiary hearing be conducted must
be issued if the party who failed to participate had good cause for failing to
do so. In the notice of the that a request for reconsideration
has been filed, the party who failed to participate shall must
be informed of the requirement, and provided the opportunity, to show good
cause for failing to participate. If the unemployment law judge determines that
good cause for failure to participate has not been shown, the unemployment law
judge must state that in the order issued under paragraph (a).
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Submission of a written
statement at the evidentiary hearing under subdivision 1 shall does
not constitute participation for purposes of this paragraph.
All involved parties must be
informed of this paragraph with the notice of appeal and notice of hearing
provided for in subdivision 1.
"Good cause" for
purposes of this paragraph is a reason that would have prevented a reasonable
person acting with due diligence from participating at the evidentiary hearing.
(e) A request for
reconsideration shall must be decided by the unemployment law
judge who issued the findings of fact and decision under subdivision 1 unless
that unemployment law judge: (1) is no longer employed by the department; (2)
is on an extended or indefinite leave; (3) has been disqualified from the
proceedings on the judge's own motion; or (4) has been removed from the
proceedings as provided for under subdivision 1 or applicable rule.
(f) The unemployment law
judge shall must send to any involved applicant or involved
employer, by mail or electronic transmission, the order issued under this
subdivision. An order modifying the previously issued findings of fact and
decision or an order affirming the previously issued findings of fact and
decision shall be is the final department decision on the matter
and shall be is final and binding on the involved applicant and
involved employer unless judicial review is sought under subdivision 7.
EFFECTIVE DATE. This section applies to
decisions issued on or after September 30, 2007.
Sec. 10. Minnesota Statutes
2006, section 268.105, subdivision 3a, is amended to read:
Subd. 3a. Decisions. (a) If an unemployment law
judge's decision or order allows unemployment benefits to an applicant, the
unemployment benefits shall must be paid regardless of any
request for reconsideration or any appeal to the Minnesota Court of Appeals
having been filed.
(b) If an unemployment law
judge's decision or order modifies or reverses a determination, or prior
decision of the unemployment law judge, allowing unemployment benefits to an
applicant, any benefits paid pursuant to in accordance with the
determination, or prior decision of the unemployment law judge, is considered
an overpayment of those unemployment benefits under section 268.18,
subdivision 1. A decision or order issued under this section that
results in an overpayment of unemployment benefits must set out the amount of
the overpayment and the requirement under section 268.18, subdivision 1, that
the overpaid unemployment benefits must be repaid.
(c) If an unemployment law
judge's order under subdivision 2 allows unemployment benefits to an applicant
under section 268.095 because of a quit or discharge and the unemployment law
judge's decision is reversed by the Minnesota Court of Appeals or the Supreme
Court of Minnesota, any unemployment benefits paid the applicant shall
is not be considered an overpayment of those unemployment benefits
under section 268.18, subdivision 1.
(d) If an unemployment law
judge, pursuant to under subdivision 2, orders the taking of
additional evidence, the unemployment law judge's prior decision shall
must continue to be enforced until new findings of fact and decision are
made by the unemployment law judge.
EFFECTIVE DATE. This section applies to
decisions issued on or after September 30, 2007.
Sec. 11. Minnesota Statutes
2006, section 268.131, subdivision 1, is amended to read:
Subdivision 1. Cooperation with
other state and federal government states on combining wages.
(a) In accordance with the requirements of United States Code, title 26,
section 3304(a)(9)(B), the Federal Unemployment Tax Act, the commissioner
shall participate in reciprocal arrangements with other states and the
federal government,
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or both, for the payment of
unemployment benefits on the basis of combining an applicant's wages and
employment covered under this law with wages and employment covered under the
unemployment insurance programs of other states or the federal government that
from multiple states for the purposes of collecting unemployment benefits
from a single state. The reciprocal agreement must include provisions for
applying the base period of a single state law to an a benefit
account involving the combining of an applicant's wages and employment and
avoiding the duplicate use of wages by reason of such combining. No The
commissioner may not enter into any reciprocal arrangement shall be
entered into unless it contains provisions for reimbursements to the trust
fund, by the other state or the federal government, for unemployment
benefits paid from the trust fund to applicants based upon wages and employment
covered under the laws of the other state or the federal government.
(b) The commissioner is authorized to pay unemployment benefits
based upon an applicant's wages paid in covered employment in another state
only if the applicant is combining Minnesota wage credits with the wages paid
in covered employment from another state or states.
(c) Section 268.23 does not apply to this subdivision.
(d) On
any reciprocal arrangement, the wages paid an applicant from employment covered
under an unemployment insurance program of another state or of the federal
government, shall be are considered wages from covered employment
for the purpose of determining the applicant's rights to unemployment benefits
under the Minnesota Unemployment Insurance Law.
EFFECTIVE DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2006, section 268.18, subdivision 1, is
amended to read:
Subdivision 1. Nonfraud
overpayment. (a) Any applicant who (1) by reason of the applicant's own
mistake, or (2) because of an error by any employee of the department, or (3)
because of a determination or amended determination issued pursuant to
under section 268.07 or 268.101, or any other section of this chapter, or
(4) (2) because of an appeal decision or order under
section 268.105, has received any unemployment benefits that the applicant was held
not entitled to, shall must promptly repay the unemployment
benefits to the trust fund. The commissioner shall, as soon as the
overpayment is discovered, determine the amount due and notify the applicant to
repay the unemployment benefits.
(b) Unless the applicant files an appeal within 30 calendar days
after the sending of the determination of overpayment to the applicant by mail
or electronic transmission, the determination shall become final. Proceedings
on the appeal shall be conducted in accordance with section 268.105. An
applicant may not collaterally attack, by way of an appeal to an overpayment determination,
any prior determination issued pursuant to section 268.07 or 268.101, or
decision issued pursuant to section 268.105, that has become final.
(c)
If the applicant fails to repay the unemployment benefits determined
overpaid under this subdivision, the commissioner may offset from any
future unemployment benefits otherwise payable the amount of the overpayment.
Except when the overpayment resulted because the applicant failed to report
deductible earnings or deductible or benefit delaying payments, no single
offset shall may exceed 50 percent of the amount of the payment
from which the offset is made. The overpayment may also be collected by the
same methods as delinquent payments from an employer. A determination of
overpayment shall state the methods of collection the commissioner may use to
recover the overpayment.
(d)
(c) If an
applicant has been overpaid unemployment benefits under the law of another
state, due to because of a reason other than fraud, and that
state certifies that the applicant is liable under its law to repay the
unemployment benefits and requests the commissioner to recover the overpayment,
the commissioner may offset from future unemployment benefits otherwise payable
the amount of overpayment, except that no single offset shall may
exceed 50 percent of the amount of the payment from which the offset is made.
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(e) (d) If under paragraph (b)
or (c) or (d) the reduced unemployment benefits as a result of a 50
percent offset is not a whole dollar amount, it shall be is
rounded down to the next lower whole dollar.
(f) Unemployment benefits
paid for weeks more than three years prior to the date of a determination of
overpayment issued under this subdivision shall not be considered overpaid
unemployment benefits.
EFFECTIVE DATE. This section is
effective September 30, 2007.
Sec. 13. Minnesota Statutes
2006, section 268.18, subdivision 2b, is amended to read:
Subd. 2b. Interest. (a) On any unemployment
benefits fraudulently obtained, and any penalty amounts assessed under
subdivision 2, the commissioner may shall assess interest at the
rate of 1-1/2 percent per month on any amount that remains unpaid beginning
30 calendar days after the date of the determination of overpayment by fraud. A
determination of overpayment by fraud shall must state that
interest shall will be assessed.
(b) If this subdivision
became effective after the date of the determination, or the determination
did not state that interest shall will be assessed, interest shall
be is assessed beginning 30 calendar days after notification, by
mail or electronic transmission, to the applicant that interest is now
assessed.
(c) Interest payments under
this section shall be are credited to the administration account.
EFFECTIVE DATE. This section is
effective September 30, 2007, and applies to all outstanding fraud overpayment
balances as of that date.
Sec. 14. Minnesota Statutes
2006, section 268.18, subdivision 4, is amended to read:
Subd. 4. Cancellation of overpayments. (a) If
unemployment benefits determined overpaid under subdivision 1 are not
repaid or offset from subsequent unemployment benefits as provided for in
subdivision 1 within six years after the date of the determination of
overpayment or decision holding the applicant overpaid, the
commissioner shall cancel the overpayment balance, and no administrative or
legal proceedings shall may be used to enforce collection of
those amounts.
(b) If unemployment benefits
determined overpaid under subdivision 2 including penalties and interest are
not repaid or offset from subsequent unemployment benefits as provided for
in subdivision 2 within ten 15 years after the date of the
determination of overpayment by fraud, the commissioner shall cancel the
overpayment balance and any penalties and interest due, and no administrative
or legal proceeding shall may be used to enforce collection of
those amounts.
(c) The commissioner may
cancel at any time any overpayment, including penalties and interest, that the
commissioner determines is uncollectible due to because of death
or bankruptcy.
EFFECTIVE DATE. This section is
effective September 30, 2007, and applies to all overpayments existing as of
that date.
Sec. 15. Minnesota Statutes
2006, section 268.182, subdivision 2, is amended to read:
Subd. 2. Administrative penalties. Any applicant
who knowingly makes a false statement or representation, who knowingly fails to
disclose a material fact, or who makes a false statement or representation
without a good faith belief as to the correctness of the statement or
representation, in order to obtain or in an attempt to obtain unemployment
benefits may be assessed, in addition to any other penalties, an administrative
penalty of being ineligible for unemployment benefits for 13 to 104 weeks. A
determination of ineligibility setting out the weeks the
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applicant shall be is
ineligible shall must be sent to the applicant by mail or
electronic transmission. Unless an appeal is filed within 30 20
calendar days of sending, the determination shall be is final. Proceeding
Proceedings on the appeal shall be are conducted in
accordance with section 268.105.
EFFECTIVE DATE. This section applies to
determinations issued on or after September 30, 2007.
Sec. 16. Minnesota Statutes
2006, section 268.184, subdivision 1, is amended to read:
Subdivision 1. Administrative penalties. (a) If
The commissioner finds shall penalize an employer if that any
employer or any employee, officer, or agent of any that employer,
is in collusion with any applicant for the purpose of assisting the applicant
to receive unemployment benefits fraudulently, the employer shall be penalized.
The penalty is $500 or the amount of unemployment benefits determined to be
overpaid, whichever is greater.
(b) If The
commissioner finds shall penalize an employer if that any
employer or any employee, officer, or agent of an that employer has
(1) made (1) a false statement or representation knowing it to be
false, including reporting employees on a wage detail report under section
268.044 knowing the employees actually are employed by a different employer, or,
(2) has made a false statement or representation without a good faith
belief as to correctness of the statement or representation, or (3) who
knowingly fails failed to disclose a material fact,;
but only if the employer's action:
(i) was taken to prevent or reduce the
payment of unemployment benefits to any applicant or;
(ii) was taken to reduce or avoid any
payment required from an employer under this chapter or section 116L.20, the
employer shall be penalized; or
(iii) caused an overpayment
of unemployment benefits to an applicant.
The penalty is $500, or 50 percent of the overpaid
or reduced unemployment benefits or payment required, whichever is greater.
(c) If The
commissioner finds shall penalize an employer if that an
employer failed or refused to honor a subpoena issued under section 268.105,
subdivision 4, or section 268.188, the employer shall be penalized.
The penalty is $500 and any costs of enforcing the subpoena, including
attorney fees.
(d) Penalties under this
subdivision shall be are in addition to any other penalties and
subject to the same collection procedures that apply to past due taxes.
Penalties shall must be paid to the department within 30
calendar days of assessment and credited to the contingent account.
(e) The assessment of the
penalty shall be is final unless the employer files an appeal
within 30 20 calendar days after the sending of notice of the
penalty to the employer by mail or electronic transmission. Proceedings on the
appeal shall be are conducted in accordance with section 268.105.
EFFECTIVE DATE. This section is
effective for notices of penalties sent on or after September 30, 2007.
Sec. 17. Minnesota Statutes
2006, section 268.184, subdivision 1a, is amended to read:
Subd. 1a. Notification and misreporting penalties.
(a) If the commissioner finds that any employer or agent of an employer failed
to meet the notification requirements of section 268.051, subdivision 4, the
employer shall must be assessed a penalty of $5,000 or two percent
of the first full quarterly payroll acquired, whichever is higher. Payroll is
wages paid as defined in section 268.035, subdivision 30. The penalty under
this paragraph shall must be canceled if the commissioner
determines that the failure occurred because of ignorance or inadvertence.
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(b) If the commissioner finds that any individual advised an employer
to violate the employer's notification requirements under section 268.051,
subdivision 4, the individual, and that individual's employer, shall must
each be assessed the penalty in paragraph (a).
(c) If the commissioner finds that any person or agent of a person
violated the reporting requirements of section 268.0435 or 268.046, the person shall
must be assessed a penalty of $5,000 or two percent of the quarterly
payroll reported in violation of section 268.0435 or 268.046, whichever is
higher. Payroll is wages paid as defined in section 268.035, subdivision 30.
(d) Penalties under this subdivision shall be are in
addition to any other penalties and subject to the same collection procedures
that apply to past due amounts from an employer. Penalties must be paid within
30 calendar days after sending of the notice of penalty.
(e) The assessment of a penalty shall be is final unless
the person assessed files an appeal within 30 20 calendar days
after sending of the notice of the penalty by mail or electronic transmission.
Proceedings on the appeal shall be are conducted in accordance
with section 268.105.
EFFECTIVE DATE. This section applies to
assessments done on or after September 30, 2007.
Sec. 18. [268.215] DAY OF THE
WEEK AND DATE REQUIREMENT.
(a) Every determination issued under this chapter that is subject to an
appeal to an unemployment law judge must indicate the day of the week and the
date, for example, Tuesday, August 1, 2006, that the determination is final and
no longer subject to an appeal.
(b) Every decision issued by an unemployment law judge under section
268.105, subdivision 1, must indicate the day of the week and the date, for
example, Tuesday, August 1, 2006, that the decision is final and no longer
subject to reconsideration.
EFFECTIVE DATE. This section is
effective September 30, 2007.
ARTICLE 3
HOUSEKEEPING PROVISIONS
Section 1. Minnesota Statutes 2006, section 268.035, subdivision 1, is
amended to read:
Subdivision 1. Scope. Unless
the language or context clearly indicates that a different meaning is intended,
The words, terms, and phrases in this section shall, for the purposes of
the Minnesota Unemployment Insurance Law, have the meaning stated.
Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 14, is
amended to read:
Subd. 14. Employer.
"Employer" means any person which that has had one or
more employees during the current or the prior calendar year including any
person that has elected, under section 268.042, to be subject to the Minnesota
Unemployment Insurance Law and a joint venture composed of one or more
employers.
An employee leasing company, professional employer organization, or
similar person that has been assigned a tax or reimbursable account
under section 268.046 is an employer for purposes of this chapter.
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Sec. 3. Minnesota Statutes 2006, section 268.035, subdivision 24, is
amended to read:
Subd. 24. Taxable wages. (a)
"Taxable wages" means those wages paid to an employee in covered employment
each calendar year up to an amount equal to 60 percent of the state's average
annual wage, rounded to the nearest $1,000.
(b) Taxable wages includes the amount of wages paid for covered
employment by the employer's predecessor when there has been an experience
rating history transfer under section 268.051, subdivision 4.
Sec. 4. Minnesota Statutes 2006, section 268.044, subdivision 1, is
amended to read:
Subdivision 1. Wage detail
report. (a) Each employer that has employees in covered employment shall
must submit, under the account provided for in section 268.045 or 268.046,
a quarterly wage detail report by electronic transmission, in a format
prescribed by the commissioner. The report shall must include for
each employee in covered employment during the calendar quarter, the
employee's name, Social Security number, the total wages paid to the employee,
and total number of paid hours worked. For employees exempt from the definition
of employee in section 177.23, subdivision 7, clause (6), the employer shall
must report 40 hours worked for each week any duties were performed by a
full-time employee and shall must report a reasonable estimate of
the hours worked for each week duties were performed by a part-time employee.
In addition, the wage detail report shall must include the number
of employees employed on during the payroll period that includes
the 12th day of each calendar month and, if required by the commissioner, the
report shall must be broken down by business location and, if
section 268.046, subdivision 1, paragraph (b), or subdivision 2, paragraph (b),
applies, by separate unit. If the information required is not submitted in a
manner and format prescribed by the commissioner, it shall not be considered a
wage detail report. The report is due and must be received by the
commissioner on or before the last day of the month following the end of the
calendar quarter. The commissioner may delay the due date on a specific
calendar quarter in the event the department is unable to accept wage detail
reports electronically.
(b) The employer may report the wages paid to the next lower whole
dollar amount.
(c) An employer need not include the name of the employee or other
required information on the wage detail report if disclosure is specifically
exempted from being reported by federal law.
(d) A wage detail report must be submitted for each calendar quarter
even though no wages were paid, unless the employer has notified the
commissioner, under section 268.042, subdivision 1, paragraph (c), of
termination of business.
Sec. 5. Minnesota Statutes 2006, section 268.044, subdivision 3, is
amended to read:
Subd. 3. Missing or erroneous
information. (a) Any employer that submits the wage detail report, but
fails to include all employee information or enters erroneous information, shall
be is subject to an administrative service fee of $25 for each
employee for whom the information is partially missing or erroneous.
(b) Any employer that submits the wage detail report, but fails to
include an employee, shall be is subject to an administrative
service penalty fee equal to two percent of the total wages for
each employee for whom the information is completely missing.
(c) An administrative service fee or penalty under this
subdivision shall must be canceled if the commissioner determines
that the failure or error by the employer occurred because of ignorance or
inadvertence.
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Sec. 6. Minnesota Statutes
2006, section 268.051, subdivision 2, is amended to read:
Subd.
2. Computation of tax rates; additional
assessments. (a) For each calendar year the commissioner shall compute the
tax rate of each taxpaying employer that qualifies for an experience rating by
adding the base tax rate to the employer's experience rating along with
assigning any appropriate additional assessment under paragraph (d).
(b) The base tax rate for
the calendar year and any additional assessments under this subdivision shall
be are determined based upon the amount in the trust fund on March
31 of the prior year as a percentage of total wages paid in covered employment.
The base tax rate shall be is:
(1) one-tenth of one percent
if the trust fund is equal to or more than 0.75 percent;
(2) two-tenths of one
percent if the trust fund is less than 0.75 percent but equal to or more than
0.65 percent;
(3) three-tenths of one
percent if the trust fund is less than 0.65 percent but equal to or more than
0.55 percent; or
(4) four-tenths of one
percent if the trust fund is less than 0.55 percent.
(c) There shall be
is a "falling trust fund adjustment" to the base tax rate for the
calendar year if the amount in the trust fund on March 31 of the prior year is
less than 0.75 percent of total wages paid in covered employment and:
(1) the amount in the trust
fund on March 31 of the prior year is ten percent or more below the amount in
the trust fund on March 31 of the year prior to before that; or
(2) the amount in the trust
fund on March 31 of the prior year is greater than the amount in the trust fund
on June 30 of that same year.
If a "falling trust
fund adjustment" is applicable, then the base tax rate shall be 0.1
is one-tenth of one percent greater than otherwise provided for under
paragraph (b).
(d) In addition to the base
tax rate under paragraph (b), there shall be is an
additional assessment for the calendar year on all the quarterly
unemployment taxes due from every taxpaying employer if the amount in the trust
fund on March 31 of the prior year is less than .55 0.55 percent
of total wages paid in covered employment. The assessment shall be is
as follows:
(1) a five percent
assessment if the trust fund is less than 0.55 percent but equal to or more
than 0.45 percent;
(2) a ten percent assessment
if the trust fund is less than 0.45 percent but equal to or more than 0.35
percent; or
(3) a 14 percent assessment
if the trust fund is less than 0.35 percent.
(e) For the purposes of this
subdivision, the trust fund shall does not include any money
borrowed from the federal unemployment trust fund pursuant to
provided for in section 268.194, subdivision 6.
(f) For the purposes of this
subdivision, total wages paid in covered employment shall be are
those wages paid to all employees in covered employment during the calendar
year prior to before the March 31 date used in paragraph (b).
(g) The commissioner may
compute any assessment under this subdivision, and any assessment under
subdivision 8, as a percentage of the employer's experience rating and the base
tax rate, rounded to the nearest hundredth of a percent.
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On tax rate notices sent
under subdivision 6, any assessments under this subdivision may be combined
with any special assessments for interest on federal loans provided for in
subdivision 8 into a single combined assessment.
(g) The base tax rate and any additional assessments are assessed on
all taxpaying employers to cover a portion of the costs to the trust fund for
unemployment benefits paid that do not affect any single employer's future
experience rating because:
(1) the employer's experience rating is limited by the maximum under
subdivision 3, paragraph (b);
(2) the employer has ceased doing business; or
(3) the unemployment benefits paid have been determined not to be used in
computing the employer's experience rating under section 268.047, subdivision 2
or 3.
Sec. 7. Minnesota Statutes 2006, section 268.051, subdivision 3, is
amended to read:
Subd. 3. Computation of a
taxpaying employer's experience rating. (a) On or before each December 15,
the commissioner shall compute an experience rating for each taxpaying employer
who has been subject required to paying unemployment taxes
file wage detail reports for the 12 calendar months ending on the prior
June 30. The experience rating computed shall be is applicable
for the following calendar year.
The experience rating shall be is the ratio obtained by
dividing 125 percent of the total unemployment benefits required under section
268.047 to be used in computing the employer's tax rate during the 48 calendar
months ending on the prior June 30, by the employer's total taxable payroll for
that same period.
(b) The experience rating shall be is computed to the
nearest one-hundredth of a percent, to a maximum of 8.90 percent.
(c) The use of 125 percent of unemployment benefits paid under
paragraph (a), rather than 100 percent of the amount of unemployment benefits
paid, is done in order for the trust fund to recover from all taxpaying
employers a portion of the costs of unemployment benefits paid that do not
affect any individual employer's future experience rating because of the
reasons set out in subdivision 2, paragraph (g).
Sec. 8. Minnesota Statutes 2006, section 268.051, subdivision 4, is
amended to read:
Subd. 4. Experience rating
history transfer. (a) When:
(1) a taxpaying employer acquires all of the organization, trade or
business, or workforce of another taxpaying employer; and
(2) there is 25 percent or more common ownership or there is
substantially common management or control between the predecessor and
successor, the experience rating history of the predecessor employer shall
be is transferred as of the date of acquisition to the
successor employer.
(b) When:
(1) a taxpaying employer acquires a portion, but less than all, of the
organization, trade or business, or workforce of another taxpaying employer;
and
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(2) there is 25 percent or more common ownership or there is substantially
common management or control between the predecessor and successor, the
successor employer shall acquire acquires, as of the date of
acquisition, the experience rating history attributable to the portion it
acquired, and the predecessor employer shall retain retains the
experience rating history attributable to the portion that it has retained. If
the commissioner determines that sufficient information is not available to
substantiate that a distinct severable portion was acquired and to assign the
appropriate distinct severable portion of the experience rating history, the
commissioner shall assign the successor employer that percentage of the
predecessor employer's experience rating history equal to that percentage of
the employment positions it has obtained, and the predecessor employer shall
retain retains that percentage of the experience rating history
equal to the percentage of the employment positions it has retained.
(c) The term "common ownership" for purposes of this
subdivision includes ownership by a spouse, parent, grandparent, child,
grandchild, brother, sister, aunt, uncle, niece, nephew, or first cousin, by
birth or by marriage.
(d) Each successor employer that is subject to paragraph (a) or (b)
must notify the commissioner of the acquisition by electronic transmission, in
a format prescribed by the commissioner, within 30 calendar days of the date of
acquisition. Any successor employer that fails to notify the commissioner is
subject to the penalties under section 268.184, subdivision 1a, if the
successor's experience rating was lower than the predecessor's experience
rating at the time of the acquisition. Payments made toward the penalties
shall be are credited to the administration account to be used to
ensure integrity in the unemployment insurance program.
(e) If the successor employer under paragraphs (a) and (b) had an
experience rating at the time of the acquisition, the transferred experience
rating history of the predecessor shall be is combined with the
successor's experience rating history, as of the date of acquisition,
for purposes of recomputing a tax rate.
(f) If there has been a transfer of an experience rating history under
paragraph (a) or (b), employment with a predecessor employer shall is
not be considered to have been terminated if similar employment is
offered by the successor employer and accepted by the employee.
(g) The commissioner, upon notification of an employer, or upon the
commissioner's own motion if the employer fails to provide the required notification,
shall determine if an employer is a successor within the meaning of this
subdivision. The commissioner shall, after determining the issue of succession
or nonsuccession, recompute the tax rate under subdivision 6 of all employers
affected. The commissioner shall send the recomputed tax rate to all affected
employers by mail or electronic transmission. Any affected employer may protest
appeal the recomputed tax rate in accordance with the procedures in
subdivision 6, paragraph (c).
(h) The "experience rating history" for purposes of this
subdivision and subdivision 4a means those factors set out in subdivision 3,
paragraph (b), that make up an experience rating the amount of
unemployment benefits paid and the taxable wages that are being used and would
be used in computing the current and any future experience rating.
For purposes of this chapter, an "acquisition" means anything
that results in the obtaining by the successor employer, in any way or manner,
of the organization, trade or business, or workforce of the predecessor
employer.
A "distinct severable portion" in paragraph (b) means a
location or unit separately identifiable within the employer's wage detail
report under section 268.044.
(i) Regardless of the ownership, management, or control requirements of
paragraph (a), if there is an acquisition or merger of a publicly held
corporation by or with another publicly held corporation the experience rating
histories of the corporations shall be are combined as of the
date of acquisition or merger for the purpose of recomputing a tax rate.
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Sec. 9. Minnesota Statutes
2006, section 268.051, subdivision 7, is amended to read:
Subd. 7. Tax rate buydown. (a) Any taxpaying
employer who that has been assigned a tax rate based upon an
experience rating, and has no amounts past due under this chapter, may, upon
the voluntary payment of an amount equivalent to any portion or all of
the unemployment benefits used in computing the experience rating plus a
surcharge of 25 percent, obtain a cancellation of unemployment benefits used
equal to the payment made, less the surcharge. Upon the payment, the
commissioner shall compute a new experience rating for the employer, and compute
a new tax rate.
(b) Voluntary
Payments for a tax rate buydown may be made only by electronic payment
and must be received within 120 calendar days from the beginning of the
calendar year for which the tax rate is effective.
Sec. 10. Minnesota Statutes
2006, section 268.051, subdivision 8, is amended to read:
Subd. 8. Special assessment for interest on federal
loan. (a) If on October 31 of any year, the commissioner, in consultation
with the commissioner of finance, determines that an interest payment will be
due during the following calendar year on any loan from the federal
unemployment trust fund under section 268.194, subdivision 6, a special
assessment on taxpaying employers will be in effect for the following calendar
year. The legislature authorizes the commissioner, in consultation with the
commissioner of finance, to determine the appropriate level of the assessment,
from two percent to eight percent of the total quarterly unemployment
taxes due based upon determined rates and assigned assessments under
subdivision 2, that will be necessary to pay the interest due on the loan.
(b) The special assessment shall
must be placed into a special account from which the commissioner shall pay
any interest that has accrued on any loan from the federal unemployment trust
fund provided for under section 268.194, subdivision 6. If, at the end of each
calendar quarter, the commissioner, in consultation with the commissioner of
finance, determines that the balance in this special account, including interest
earned on the special account, is more than is necessary to pay the interest which
that has accrued on any loan as of that date, or will accrue over the
following calendar quarter, the commissioner shall immediately pay to the trust
fund the amount in excess of that necessary to pay the interest on any loan.
Sec. 11. Minnesota Statutes
2006, section 268.066, is amended to read:
268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.
(a) The commissioner shall
cancel as uncollectible any amounts due from an employer under this chapter or
section 116L.20, which that remain unpaid six years after the
amounts have been first determined due, except where the delinquent amounts are
secured by a notice of lien, a judgment, are in the process of garnishment, or
are under a payment plan.
(b) The commissioner may
cancel at any time as uncollectible any amount due, or any portion of an amount
due, from an employer under this chapter or section 116L.20, that (1) are
uncollectible due to death or bankruptcy, (2) the Minnesota Collection Enterprise
Division of the Department of Revenue under section 16D.04 was unable to
collect, or (3) the commissioner determines that it is not in the public
interest to pursue collection of the amount due.
Sec. 12. Minnesota Statutes
2006, section 268.07, subdivision 3b, is amended to read:
Subd. 3b. Limitations on
applications and benefit accounts. (a) A benefit account shall be
established An application for unemployment benefits is effective
the Sunday of the calendar week that the application for unemployment
benefits was filed. Upon specific request of an applicant, an application
for unemployment benefits may be backdated one calendar week prior to
before the Sunday of the week the application was actually filed. An
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application shall
may be backdated only if the applicant was unemployed throughout the period
of the backdating. If an individual attempted to file an application for
unemployment benefits, but was prevented from filing an application by the
department, the benefit account shall be application is effective
the Sunday of the calendar week the individual first attempted to file an
application.
(b) A benefit account established under subdivision 2 is effective
the date the application for unemployment benefits was effective.
(c) A
benefit account, once established, may later be withdrawn only if:
(1) a new application for unemployment benefits is filed and a new
benefit account is established at the time of the withdrawal; and
(2) the applicant has not served a the nonpayable waiting
week under section 268.085, subdivision 1, clause (5).
A determination or amended determination pursuant to under
section 268.101, that was issued before the withdrawal of the benefit account, shall
remain remains in effect and shall is not be
voided by the withdrawal of the benefit account. A determination of disqualification
ineligibility requiring subsequent earnings to satisfy the disqualification
period of ineligibility under section 268.095, subdivision 10, shall
apply applies to the weekly unemployment benefit amount on the new
benefit account.
(c)
(d) An
application for unemployment benefits shall is not be
allowed prior to before the Sunday following the expiration of
the benefit year on a prior benefit account. Except as allowed under paragraph
(b), a an applicant may establish only one benefit account each
52 calendar weeks.
Sec. 13. Minnesota Statutes 2006, section 268.085, subdivision 1, is
amended to read:
Subdivision 1. Eligibility
conditions. An applicant shall may be eligible to receive
unemployment benefits for any week if:
(1) the applicant has an active benefit account and has filed a
continued biweekly request for unemployment benefits for that week pursuant
to under section 268.086;
(2) the week for which unemployment benefits are requested is in the
applicant's benefit year;
(3) the applicant was unemployed as defined in section 268.035,
subdivision 26;
(4) the applicant was able to work and was available for suitable
employment, and was actively seeking suitable employment. The applicant's
weekly unemployment benefit amount shall be is reduced one-fifth
for each day the applicant is unable to work or is unavailable for suitable
employment. If the computation of the reduced unemployment benefits is not a
whole dollar, it shall be is rounded down to the next lower whole
dollar.
This clause shall
does not apply to an applicant who is in reemployment assistance training,
or each day the applicant is on jury duty or serving as an election judge;
(5) the applicant has served a nonpayable waiting period of one week
that the applicant is otherwise entitled to some amount of unemployment
benefits. This clause shall does not apply if the applicant would
have been entitled to federal disaster unemployment assistance because of a
disaster in Minnesota, but for the applicant's establishment of a benefit
account under section 268.07; and
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(6) the applicant has been participating in reemployment assistance
services, such as job search and resume writing classes, if the applicant has
been determined in need of reemployment assistance services by the
commissioner, unless there is the applicant has good cause for the
applicant's failure failing to participate.
Sec. 14. Minnesota Statutes 2006, section 268.085, subdivision 9, is
amended to read:
Subd. 9. Business owners.
Wage credits from an employer may not be used for unemployment benefit purposes
by any applicant who:
(1) individually, jointly, or in combination with the applicant's
spouse, parent, or child owns or controls directly or indirectly 25 percent or
more interest in the employer, or is the spouse, parent, or minor child of any
individual who owns or controls directly or indirectly 25 percent or more
interest in the employer; and
(2) is temporarily, seasonally, or indefinitely unemployed and not
permanently separated from the employment.
This subdivision is effective when the applicant has been paid four
times the applicant's weekly unemployment benefit amount in the current benefit
year.
Sec. 15. Minnesota Statutes 2006, section 268.085, subdivision 13c, is
amended to read:
Subd. 13c. Offers of suitable
employment. (a) An applicant shall be is ineligible for all unemployment
benefits for eight calendar weeks if the applicant, without good cause:
(1) failed to apply for available, suitable employment of which the
applicant was advised by the commissioner or an employer;
(2) failed to accept suitable employment when offered; or
(3) avoided an offer of suitable employment.
(b) "Good cause" is a reason that would cause a reasonable
individual who wants suitable employment to fail to apply for, accept, or avoid
suitable employment. Good cause includes:
(1) the applicant is employed in other suitable employment;
(2) the applicant is in reemployment assistance training;
(3) the applicant formerly worked for the employer and the loss of
employment occurred prior to the commencement of a labor dispute, was permanent
or for an indefinite period, and the applicant failed to apply for or accept
the employment because a labor dispute was in progress at the establishment; or
(4) the applicant formerly worked for the employer and quit that
employment because of a good reason caused by the employer.
(c) This subdivision only applies to offers of suitable employment with
a new or a former employer and does not apply to any type of job transfers,
position reassignments, or changes in job duties or responsibilities during the
course of employment with an employer.
(d) The period of ineligibility under this subdivision and section
268.095 shall begin begins the Sunday of the week the applicant
failed to apply for, failed to accept, or avoided suitable employment
without good cause.
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(e) This subdivision and section 268.095 shall apply applies
to offers of suitable employment that occur prior to before the effective
date of the benefit account and that occur during the benefit year.
(f) This subdivision and section 268.095 shall only apply
applies to offers of suitable employment that are considered covered
employment under section 268.035, subdivision 12.
Sec. 16. Minnesota Statutes 2006, section 268.086, subdivision 2, is
amended to read:
Subd. 2. Continued biweekly
request for unemployment benefits defined. A continued biweekly
request for unemployment benefits is a certification by an applicant, done on a
weekly or biweekly basis as the commissioner designates, that the
applicant is unemployed and meets the ongoing eligibility requirements for
unemployment benefits under section 268.085 for a specific week or two-week
period. A continued biweekly request shall must include
information on possible issues of eligibility and disqualification
ineligibility in accordance with section 268.101, subdivision 1, paragraph
(c).
Sec. 17. Minnesota Statutes 2006, section 268.086, subdivision 7, is
amended to read:
Subd. 7. In-person continued biweekly
request for unemployment benefits. The commissioner may require any
applicant who has been designated to make a continued biweekly request
for unemployment benefits by telephone, by electronic transmission,
or by mail to appear for a personal interview at a place, time, and date
designated, during which a written continued biweekly request for
unemployment benefits form shall must be completed and submitted
by the applicant.
An applicant shall be is ineligible for unemployment
benefits for the week or biweekly period covered by a continued biweekly
request and the benefit account shall be is considered inactive
if the applicant fails, without good cause, to comply with the requirement that
the applicant appear for a personal interview and at that time complete and
submit a written continued biweekly request form.
Sec. 18. Minnesota Statutes 2006, section 268.105, subdivision 4, is
amended to read:
Subd. 4. Testimonial powers
Oaths; subpoenas. An unemployment law judge may has authority
to administer oaths and affirmations, take depositions, and issue subpoenas
to compel the attendance of witnesses and the production of documents and other
personal property considered necessary as evidence in connection with the
subject matter of an evidentiary hearing. The subpoenas shall be are
enforceable through the district court in the district that the subpoena is
issued Ramsey County. Witnesses subpoenaed, other than an involved
applicant or involved employer or officers and employees of an involved
employer, shall must be paid by the department the same witness
fees as in a civil action in district court.
Sec. 19. Minnesota Statutes 2006, section 268.188, is amended to read:
268.188 SUBPOENAS; OATHS.
(a) The commissioner shall have power has authority to
administer oaths and affirmations, take depositions, certify to official acts,
and issue subpoenas to compel the attendance of individuals and the production
of documents and other personal property necessary in connection with the
administration of the Minnesota unemployment insurance program.
(b) Individuals subpoenaed, other than applicants or officers and
employees of an employer that is the subject of the inquiry, shall be
allowed are paid witness fees the same as witness fees in civil
actions in district court. The fees need not be paid in advance.
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(c) The subpoena shall be is enforceable through the
district court in the district that the subpoena is issued Ramsey
County.
Sec. 20. Minnesota Statutes 2006, section 268.19, subdivision 1, is
amended to read:
Subdivision 1. Use of data.
(a) Except as otherwise provided by this section, data gathered from any
person pursuant to under the administration of the Minnesota
Unemployment Insurance Law are private data on individuals or nonpublic data
not on individuals as defined in section 13.02, subdivisions 9 and 12, and may
not be disclosed except pursuant according to a district court
order or section 13.05. A subpoena shall is not be
considered a district court order. These data may be disseminated to and used
by the following agencies without the consent of the subject of the data:
(1) state and federal agencies specifically authorized access to the
data by state or federal law;
(2) any agency of any other state or any federal agency charged with
the administration of an unemployment insurance program;
(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;
(4) the public authority responsible for child support in Minnesota or
any other state in accordance with section 256.978;
(4)
(5) human
rights agencies within Minnesota that have enforcement powers;
(5)
(6) the
Department of Revenue only to the extent necessary for its duties under
Minnesota laws;
(6)
(7) public
and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's
recipients;
(7)
(8) the
Department of Labor and Industry and the Division of Insurance Fraud Prevention
in the Department of Commerce on an interchangeable basis with the
department for uses consistent with the administration of their duties
under Minnesota law;
(8)
(9) local
and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered
by those agencies, whether alone, in combination with another welfare agency,
or in conjunction with the department or to monitor and evaluate the statewide
Minnesota family investment program by providing data on recipients and former
recipients of food stamps or food support, cash assistance under chapter 256,
256D, 256J, or 256K, child care assistance under chapter 119B, or medical
programs under chapter 256B, 256D, or 256L;
(9) (10) local and state welfare
agencies for the purpose of identifying employment, wages, and other information
to assist in the collection of an overpayment debt in an assistance program;
(10) (11)
local, state, and federal law enforcement agencies for the sole purpose
of ascertaining the last known address and employment location of a person
an individual who is the subject of a criminal investigation;
(11) (12)
the federal Bureau of Citizenship and Immigration and Naturalization
Service shall have Services has access to data on specific
individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency; and
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(12) (13) the Department of Health solely
for the purposes of epidemiologic investigations.
(b) Data on individuals and
employers that are collected, maintained, or used by the department in an
investigation pursuant to under section 268.182 are confidential
as to data on individuals and protected nonpublic data not on individuals as
defined in section 13.02, subdivisions 3 and 13, and must not be disclosed
except pursuant to under statute or district court order or to a
party named in a criminal proceeding, administrative or judicial, for
preparation of a defense.
(c) Data gathered by the
department pursuant to in the administration of the Minnesota
unemployment insurance program must not be made the subject or the basis for
any suit in any civil proceedings, administrative or judicial, unless the
action is initiated by the department.
Sec. 21. Minnesota Statutes
2006, section 268.194, subdivision 2, is amended to read:
Subd. 2. Commissioner of finance to be custodian;
separate accounts. (a) The commissioner of finance shall be is
the treasurer and custodian of the trust fund, and shall 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 must 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 must be deposited to the credit of Minnesota's
account in the federal unemployment trust fund. Tax refunds payable pursuant
to under section 268.057 may be paid from the clearing account or
the unemployment benefit payment account.
(b) The unemployment benefit
payment account shall consist consists 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
may be paid out of the trust fund. Money in the clearing and unemployment
benefit payment accounts shall must be maintained in separate
accounts on the books of the depository bank. This money shall must
be secured by the depository bank to the same extent and in the same manner as
required by the general depository law of Minnesota.
Sec. 22. Minnesota Statutes
2006, section 268.194, subdivision 3, is amended to read:
Subd. 3. Exclusive use. (a) Money requisitioned
from Minnesota's account in the federal unemployment trust fund shall
must be used exclusively for the payment of unemployment benefits and for
tax refunds pursuant to under section 268.057, except that money
credited to Minnesota's account pursuant to under 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 may 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.
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(b) Expenditures of money in
the unemployment benefit payment account and tax refunds from the clearing
account shall are 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.
Sec. 23. Minnesota Statutes
2006, section 268.196, subdivision 3, is amended to read:
Subd. 3. Contingent account. (a) There is hereby
created in the state treasury a special account, to be known as the contingent
account, that shall does not lapse nor revert to any other trust
fund or account. This account shall consist consists of
all money appropriated therefor by the legislature, all money in the
form of interest and penalties collected pursuant to sections 268.057,
268.18, and 268.184, all money received in the form of voluntary contributions
to this account under this chapter that is required to be placed in this
account, and any interest earned on the account. All money in this account shall
be is supplemental to all federal money available to the
commissioner. Money in this account is hereby appropriated to the
commissioner and shall be is available to the commissioner for those
expenditures the commissioner considers necessary in connection with the administration
of the Minnesota unemployment insurance program.
(b) Whenever the
commissioner spends money from the contingent account for the administration of
the Minnesota unemployment insurance program for which money will later be made
available by the federal government, the contingent account shall, when money
is available, be reimbursed from the administration account. The commissioner
shall certify to the commissioner of finance the amount of the reimbursement
and the commissioner of finance shall transfer that amount from the
administration account to the contingent account.
(c) All money in this account shall
must be deposited, administered, and disbursed in the same manner and under
the same conditions and requirements as is provided by law for the other
special accounts in the state treasury. On June 30 of each year, all amounts in
excess of $300,000 in this account shall must be paid over to the
unemployment insurance trust fund.
Sec. 24. REVISOR'S INSTRUCTION.
(a) The revisor of statutes
shall change the word "attorney" to "attorney licensed to
practice law in Minnesota" in Minnesota Statutes, sections 268.067 and
268.105, subdivision 7.
(b) The revisor of statutes
shall change the term "common law burden of proof" to "burden of
proof" in Minnesota Statutes, section 268.069.
(c) The revisor of statutes
shall change the term "continued biweekly request" to "continued
request" in Minnesota Statutes, chapter 268.
(d) The revisor of statutes
shall change the term "14 days" to "14 calendar days" in
Minnesota Statutes, section 268.086.
(e) The revisor of statutes
shall change the term "electronic mail address" to "electronic
mail address or telephone number" in Minnesota Statutes, section 268.086.
Sec. 25. EFFECTIVE DATE.
Sections 1 to 7 and 9 to 24
are effective September 30, 2007, except for section 24, paragraph (e), which
is effective the day following final enactment. Section 8 is effective the day
following final enactment.
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ARTICLE 4
ADMINISTRATIVE RULES
INCORPORATED INTO STATUTES
Section 1. STATEMENT OF INTENT.
This article incorporates
long-standing administrative rules into the statute. This incorporation is not
intended to affect the application or interpretation of any provision.
Sec. 2. Minnesota Statutes
2006, section 268.035, subdivision 15, is amended to read:
Subd. 15. Employment. (a) "Employment"
means service performed by:
(1) an individual who is
considered an employee under the common law of employer-employee and not
considered an independent contractor;
(2) an officer of a
corporation;
(3) a member of a limited
liability company who is considered an employee under the common law of
employer-employee; or
(4) product demonstrators
in retail stores or other locations to aid in the sale of products. The person
that pays the wages is considered the employer; or
(5) an individual who performs
services for a person for compensation, as:
(i) an agent-driver or
commission-driver engaged in distributing meat products, vegetable products,
fruit products, beverages, or laundry or dry cleaning services; or
(ii) a traveling or city
salesperson, other than as an agent-driver or commission-driver, engaged
full-time in the solicitation on behalf of the person, of orders from
wholesalers, retailers, contractors, or operators of hotels, restaurants, or
other similar establishments for merchandise for resale or supplies for use in
their business operations.
This clause shall apply
applies only if the contract of service provides that substantially all of
the services are to be performed personally by the individual, and the services
are part of a continuing relationship with the person for whom the services are
performed, and the individual does not have a substantial investment in
facilities used in connection with the performance of the services, other than
facilities for transportation.
(b) Employment does not
include service as a juror.
Sec. 3. Minnesota Statutes
2006, section 268.035, is amended by adding a subdivision to read:
Subd. 25b. Trucking industry/independent contractors. In the
trucking industry, an owner-operator of a vehicle that is licensed and
registered as a truck, tractor, or truck-tractor by a governmental motor
vehicle regulatory agency is an independent contractor, and is not considered
an employee, while performing services in the operation of the truck only if
each of the following factors is present:
(1) the individual owns the
equipment or holds it under a bona fide lease arrangement;
(2) the individual is
responsible for the maintenance of the equipment;
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(3) the individual bears the principal burdens of the operating costs,
including fuel, repairs, supplies, vehicle insurance, and personal expenses
while on the road;
(4) the individual is responsible for supplying the necessary personal
services to operate the equipment;
(5) the individual's compensation is based on factors related to the
work performed, such as a percentage of any schedule of rates, and not on the
basis of the hours or time expended; and
(6) the individual enters into a written contract that specifies the
relationship to be that of an independent contractor and not that of an
employee.
Sec. 4. Minnesota Statutes 2006, section 268.035, subdivision 29, is
amended to read:
Subd. 29. Wages. (a) "Wages"
means all compensation for services, including commissions; bonuses, awards,
and prizes; severance payments; standby pay; vacation and holiday
pay; back pay as of the date of payment; tips and gratuities paid to an
employee by a customer of an employer and accounted for by the employee to the
employer; sickness and accident disability payments, except as otherwise
provided in this subdivision; and the cash value of all compensation in any
medium other than cash housing, utilities, meals, exchanges of services,
and any other goods and services provided to compensate for an employee's
services, except:
(1) the amount of any payment made to, or on behalf of, an employee
under a plan established by an employer that makes provision for employees
generally or for a class or classes of employees, including any amount paid by
an employer for insurance or annuities, or into a plan, to provide for a
payment, on account of (i) retirement or (ii) medical and hospitalization
expenses in connection with sickness or accident disability, or (iii) death;
(2) the payment by an employer of the tax imposed upon an employee
under United States Code, title 26, section 3101 of the Federal Insurance
Contribution Act, with respect to compensation paid to an employee for domestic
employment in a private household of the employer or for agricultural
employment;
(3) any payment made to, or on behalf of, an employee or beneficiary
(i) from or to a trust described in United States Code, title 26, section
401(a) of the federal Internal Revenue Code, that is exempt from tax under
section 501(a) at the time of the payment unless the payment is made to an
employee of the trust as compensation for services as an employee and not as a
beneficiary of the trust, or (ii) under or to an annuity plan that, at the time
of the payment, is a plan described in section 403(a);
(4) the value of any special discount or markdown allowed to an
employee on goods purchased from or services supplied by the employer where the
purchases are optional and do not constitute regular or systematic payment for
services;
(5) customary and reasonable directors' fees paid to individuals who
are not otherwise employed by the corporation of which they are directors;
(6) the payment to employees for reimbursement of meal expenses when
employees are required to perform work after their regular hours;
(7) the payment into a trust or plan for purposes of providing legal or
dental services if provided for all employees generally or for a class or
classes of employees;
(8) the value of parking facilities provided or paid for by an
employer, in whole or in part, if provided for all employees generally or for a
class or classes of employees;
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(9) royalties to an owner of a franchise, license, copyright, patent,
oil, mineral, or other right;
(10) advances or reimbursements for traveling or other bona fide
ordinary and necessary expenses incurred or reasonably expected to be incurred
in the business of the employer. Traveling and other reimbursed expenses must
be identified either by making separate payments or by specifically indicating
the separate amounts where both wages and expense allowances are combined in a
single payment;
(11) residual payments to radio, television, and similar artists that
accrue after the production of television commercials, musical jingles, spot
announcements, radio transcriptions, film sound tracks, and similar activities;
(12) supplemental unemployment benefits paid under a plan established
by an employer, that makes provisions for employees generally or for a class or
classes of employees for the supplementing of unemployment benefits under the
written terms of an agreement, contract, trust arrangement, or other instrument
if the plan provides benefits that are only supplemental to, and does not
replace or duplicate any state or federal unemployment benefits. The plan must
provide that funds are paid solely for the supplementing of state or federal
unemployment benefits. The plan must provide that any supplemental benefits are
payable only if the applicant has applied for all unemployment benefits
available. The plan must provide that supplemental benefits, when combined with
the applicant's weekly unemployment benefits available, may not exceed the
applicant's regular weekly pay. The plan must not allow the assignment of
supplemental benefits or payment upon the employee's withdrawal from the plan,
or quitting of employment or the termination of the plan. The plan must not
require any consideration from the applicant and must not be designed for the
purpose of avoiding the payment of Social Security obligations, or unemployment
taxes on money disbursed from the plan;
(13)
sickness or accident disability payments made by the employer after the
expiration of six calendar months following the last calendar month that the
individual worked for the employer;
(5)
(14)
disability payments made under the provisions of any workers' compensation law;
(6)
(15) sickness
or accident disability payments made by a third party payer such as an
insurance company; or
(7)
(16)
payments made into a trust fund, or for the purchase of insurance or an
annuity, to provide for sickness or accident disability payments to employees
pursuant to under a plan or system established by the employer that
provides for the employer's employees generally or for a class or classes of
employees; or.
(8)
(b) Nothing
in this subdivision shall exclude excludes from the term
"wages" any payment made under any type of salary reduction
agreement, including payments made under a cash or deferred arrangement and
cafeteria plan, as defined in United States Code, title 26, sections 401(k) and
125 of the federal Internal Revenue Code, to the extent that the employee has
the option to receive the payment in cash.
(c) Wages includes payments made for services as a caretaker. Unless
there is a contract or other proof to the contrary, compensation is considered
as being equally received by a married couple where the employer makes payment
to only one spouse, or by all tenants of a household who perform services where
two or more individuals share the same dwelling and the employer makes payment
to only one individual.
(d) Wages includes payments made for services by a migrant family.
Where services are performed by a married couple or a family and an employer
makes payment to only one individual, each worker is considered as having
received an equal share of the compensation unless there is a contract or other
proof to the contrary.
(e) Wages includes advances or draws against future earnings, when
paid, unless the payments are designated as a loan or return of capital on the
books of the employer at the time of payment.
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(f) Wages includes payments made by a subchapter "S"
corporation, as organized under the Internal Revenue Code, to or on behalf of
officers and shareholders that are reasonable compensation for services performed
for the corporation.
For a subchapter "S" corporation, wages does not include:
(1) a loan for business purposes to an officer or shareholder evidenced
by a promissory note signed by an officer before the payment of the loan
proceeds and recorded on the books and records of the corporation as a loan to
an officer or shareholder;
(2) a repayment of a loan or payment of interest on a loan made by an
officer to the corporation and recorded on the books and records of the
corporation as a liability;
(3) a reimbursement of reasonable corporation expenses incurred by an
officer and documented by a written expense voucher and recorded on the books
and records of the corporation as corporate expenses; and
(4) a reasonable lease or rental payment to an officer who owns
property that is leased or rented to the corporation.
Sec. 5. Minnesota Statutes 2006, section 268.042, subdivision 1, is
amended to read:
Subdivision 1. Employer
registration. (a) Each employer shall must, upon or before
the submission of its first wage detail report under section 268.044, register
with the commissioner for a tax account or a reimbursable account, by
electronic transmission in a format prescribed by the commissioner. The
employer must provide all required information for registration, including
the actual physical street and city address of the employer.
(b) Within 30 calendar days, each employer must notify the
commissioner by electronic transmission, in a format prescribed, of a change in
legal entity, of the transfer, sale, or acquisition of a business conducted in
Minnesota, in whole or in part, if the transaction results in the creation of a
new or different employer or affects the establishment of employer accounts,
the assignment of tax rates, or the transfer of experience rating history.
(c)
Except as provided in subdivision 3, any person that is or becomes an employer
subject to the Minnesota Unemployment Insurance Law because of the
application of section 268.035, subdivision 20, clause (14), (17), or (33), within
any calendar year shall be is considered to be subject to this
chapter the entire calendar year.
(c) Upon (d) Within 30 calendar days of the termination of business, an employer that has
been assigned a tax account or reimbursable account shall must
notify the commissioner by electronic transmission, in a format prescribed by
the commissioner, that the employer no longer has employees and does not intend
or expect to pay wages to any employees in the next calendar year and into the
foreseeable future. Upon such notification, the commissioner shall
not require the employer is no longer required to file wage detail
reports under section 268.044, subdivision 1, paragraph (d).
(e) An employer that has terminated business regains its previous tax
account under section 268.045, with the experience rating history of that
account, if the employer again commences business and if:
(1) less than 14 calendar quarters have elapsed in which no wages were
paid for covered employment;
(2) the experience rating history regained contains taxable wages; and
(3) the experience rating history has not been transferred to a
successor under section 268.051, subdivision 4.
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Sec. 6. REPEALER.
Minnesota Rules, parts 3315.0210; 3315.0220; 3315.0515; 3315.0520;
3315.0525; 3315.0530, subparts 2, 3, 4, 5, and 6; 3315.0540; 3315.0550; 3315.0910,
subparts 1, 2, 3, 4, 5, 6, 7, and 8; 3315.1005, subparts 1 and 3; 3315.1315,
subpart 4; 3315.2010; and 3315.2810, subparts 2 and 4, are repealed.
Sec. 7. EFFECTIVE DATE.
Sections 1 to 6 are effective September 30, 2007.
ARTICLE 5
TERMINOLOGY CHANGE
Section 1. STATEMENT OF
INTENT.
This article substitutes the term "disqualify" or similar
terms with the term "ineligible" or similar terms in Minnesota
Statutes, chapter 268. Both terms are currently used throughout the
unemployment insurance law. This substitution is not intended as a substantive
change. It is done for simplification, to achieve consistency and avoid
confusion, as the terms have the same common meaning and the same effect under
the statute.
Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 12, is
amended to read:
Subd. 12. Covered employment.
"Covered employment" means the following unless excluded as
"noncovered employment" under subdivision 20:
(1) an employee's entire employment during the calendar quarter
if:
(i) the employment is performed entirely in Minnesota;
(ii) the employment is performed primarily in Minnesota, and the
employment performed outside Minnesota is incidental to the employment in
Minnesota; or
(iii) the employment is not performed primarily in any one state but
some of the employment is performed in Minnesota and the base of operations or
the place from which the employment is directed or controlled is in Minnesota;
or the base of operations or place from which the employment is directed or
controlled is not in any state in which where part of the
employment is performed, but the employee's residence is in Minnesota;
(2) an employee's employment during the calendar quarter
wherever performed within the United States or Canada, if:
(i) the employment is not covered under the unemployment insurance
program of any other state or Canada; and
(ii) the place from which the employment is directed or controlled is
in Minnesota;
(3) the employment during the calendar quarter of an employee
who is a citizen of the United States, performed outside the United States,
except in Canada, in the employ of an American employer if:
(i) the employer's principal place of business in the United States is
located in Minnesota;
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(ii) the employer has no place of business in the United States, but
the employer is an individual who is a resident of Minnesota, or the employer
is a corporation that is organized under the laws of Minnesota, or the employer
is a partnership or a trust and the number of partners or trustees who are
residents of Minnesota is greater than the number who are residents of any one
other state;
(iii) none of the criteria of subclauses (i) and (ii) is met but the
employer has elected coverage in Minnesota, or the employer having failed to
elect coverage in any state, an applicant has made an application for
unemployment benefits under section 268.07, based on the employment;
(iv) an "American employer," for the purposes of this
subdivision, means an individual who is a resident of the United States, or a
partnership if two-thirds or more of the partners are residents of the United
States, or a trust, if all of the trustees are residents of the United States,
or a corporation organized under the laws of the United States, or of any
state; or
(v) as used in this subdivision, the term "United States"
includes the states, the District of Columbia, the Commonwealth of Puerto Rico,
and the Virgin Islands;
(4) all employment during the calendar quarter performed by an
officer or member of the crew of an American vessel on or in connection with
the vessel, if the operating office from which the operations of the vessel
operating on navigable waters within, or within and without, the United States
are ordinarily and regularly supervised, managed, directed, and controlled is
in Minnesota; and
(5) for the purposes of satisfying disqualifications the
period of ineligibility under section 268.095, subdivision 10, "covered
employment" shall include includes covered employment under
an unemployment insurance program of any other state or employment covered
under an unemployment insurance program established by an act of Congress.
Sec. 3. Minnesota Statutes 2006, section 268.069, subdivision 1, is
amended to read:
Subdivision 1. Requirements.
The commissioner shall pay unemployment benefits from the trust fund to an
applicant who has met each of the following requirements:
(1) the applicant has filed an application for unemployment benefits
and established a benefit account in accordance with section 268.07;
(2) the applicant is has not subject to a
disqualification from been held ineligible for unemployment benefits
under section 268.095 because of a quit or discharge;
(3) the applicant has met all of the ongoing eligibility requirements
under sections 268.085 and 268.086;
(4) the applicant does not have an outstanding overpayment of
unemployment benefits, including any penalties or interest; and
(5) the applicant is has not been held ineligible
for unemployment benefits under section 268.182 because of a false
representation or concealment of facts.
Sec. 4. Minnesota Statutes 2006, section 268.095, subdivision 4, is
amended to read:
Subd. 4. Discharge. An applicant
who was discharged from employment by an employer shall be disqualified from
is ineligible for all unemployment benefits according to subdivision 10
only if:
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(1) the applicant was
discharged because of employment misconduct as defined in subdivision 6; or
(2) the applicant was
discharged because of aggravated employment misconduct as defined in
subdivision 6a.
Sec. 5. Minnesota Statutes 2006,
section 268.095, subdivision 7, is amended to read:
Subd. 7. Act or omissions after separation. An
applicant shall may not be disqualified from held
ineligible for unemployment benefits under section 268.085, subdivision
13c, and this section for any acts or omissions occurring after the
applicant's separation from employment with the employer. A layoff due to
because of lack of work is considered a separation from employment.
Sec. 6. Minnesota Statutes
2006, section 268.095, subdivision 10, is amended to read:
Subd. 10. Disqualification Ineligibility
duration. (a) A disqualification Ineligibility from the
payment of all unemployment benefits under subdivisions 1 and 4 shall be
is for the duration of the applicant's unemployment and until the end of
the calendar week that the applicant had total earnings in subsequent covered
employment of eight times the applicant's weekly unemployment benefit amount.
(b) Any disqualification
Ineligibility imposed under subdivisions 1 and 4 shall begin
begins on the Sunday of the week that the applicant became separated from
employment.
(c) In addition to paragraph
(a), if the applicant was discharged from employment because of aggravated
employment misconduct, wage credits from that employment shall be are
canceled.
Sec. 7. Minnesota Statutes
2006, section 268.101, is amended to read:
268.101 DETERMINATIONS ON ISSUES OF DISQUALIFICATION AND ELIGIBILITY
INELIGIBILITY.
Subdivision 1. Notification. (a) In an application for
unemployment benefits, each applicant shall must report the name
and the reason for no longer working for the applicant's most recent employer,
as well as the names of all employers and the reasons for no longer working for
all employers during the six calendar months prior to before the
date of the application. If the reason reported for no longer working for any
of those employers is other than a layoff due to because of lack
of work, that shall raise raises an issue of disqualification
ineligibility that the department shall must determine. An
applicant shall must report any offers of employment refused
during the eight calendar weeks prior to before the date of the
application for unemployment benefits and the name of the employer that made
the offer. An applicant's failure to report the name of an employer, or giving
an incorrect reason for no longer working for an employer, or failing to
disclose an offer of employment that was refused, shall be considered
is a violation of section 268.182, subdivision 2.
In an application, the
applicant shall must also provide all information necessary to
determine the applicant's eligibility for unemployment benefits under section
268.085 this chapter. If the applicant fails or refuses to provide
information necessary to determine the applicant's eligibility for unemployment
benefits under section 268.085, the applicant shall be is
ineligible for unemployment benefits under section 268.085, subdivision 2,
until the applicant provides this required information.
(b) Upon establishment of a benefit account under section 268.07,
subdivision 2, the commissioner shall notify, by mail or electronic
transmission, all employers the applicant was required to report on the
application and all base period employers and determined successors to those
employers under section 268.051, subdivision 4, in order to provide the
employer an opportunity to raise, in a manner and format prescribed by
the commissioner, any issue of disqualification or any issue of eligibility
ineligibility. An employer shall must be informed of the
effect that failure
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to raise an issue of disqualification
ineligibility as a result of a quit or discharge of the applicant, within
ten calendar days after sending of the notice, as provided for under
subdivision 2, paragraph (b), may have on the employer under section 268.047.
(c) Each applicant shall must report any employment, and
loss of employment, and offers of employment refused, during those weeks
the applicant filed continued biweekly requests for unemployment
benefits pursuant to under section 268.086. Each applicant who
stops filing continued biweekly requests during the benefit year and
later begins filing continued biweekly requests during that same benefit
year shall must report the name of any employer the applicant
worked for during the period between the filing of continued biweekly
requests and the reason the applicant stopped working for the employer. The
applicant shall must report any offers of employment refused
during the period between the filing of continued biweekly requests for
unemployment benefits. Those employers from which the applicant has reported a
loss of employment pursuant to under this paragraph shall
must be notified by mail or electronic transmission and provided an
opportunity to raise, in a manner prescribed by the commissioner, any issue of disqualification
or any issue of eligibility ineligibility. An employer shall
must be informed of the effect that failure to raise an issue of
ineligibility as a result of a quit or a discharge of the applicant may
have on the employer under section 268.047.
(d) The purpose for requiring the applicant to report the name of
employers and the reason for no longer working for those employers, or offers
of employment refused, under paragraphs (a) and (c) is for the commissioner to
obtain information from an applicant raising all issues that may have the
potential of disqualifying result in the applicant from
being ineligible for unemployment benefits under section 268.095, because
of a quit or discharge, or the applicant being ineligible for unemployment
benefits under section 268.085, subdivision 13c. If the reason given by the
applicant for no longer working for an employer is other than a layoff due
to because of lack of work, that shall raise raises an
issue of disqualification ineligibility and the applicant shall
be is required, as part of the determination process under
subdivision 2, paragraph (a), to state all the facts about the cause for no
longer working for the employer, if known. If the applicant fails or refuses to
provide any required information, the applicant shall be is
ineligible for unemployment benefits under section 268.085, subdivision 2,
until the applicant provides this required information.
Subd. 2. Disqualification
Determination. (a) The commissioner shall determine any issue of disqualification
ineligibility raised by information required from an applicant under
subdivision 1, paragraph (a) or (c), and send to the applicant and any
involved employer, by mail or electronic transmission, a determination of disqualification
eligibility or a determination of nondisqualification
ineligibility, as is appropriate. The determination shall on an
issue of ineligibility as a result of a quit or a discharge of the applicant
must state the effect on the employer under section 268.047. A
determination shall must be made pursuant to in
accordance with this paragraph even if a notified employer has not raised
the issue of disqualification ineligibility.
(b) The commissioner shall determine any issue of disqualification
ineligibility raised by an employer and send to the applicant and that
employer, by mail or electronic transmission, a determination of disqualification
eligibility or a determination of nondisqualification
ineligibility as is appropriate. The determination shall on an
issue of ineligibility as a result of a quit or discharge of the applicant must
state the effect on the employer under section 268.047.
If a base period employer:
(1) was not the applicant's most recent employer prior to
before the application for unemployment benefits;
(2) did not employ the applicant during the six calendar months prior
to before the application for unemployment benefits; and
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(3) did not raise an issue of disqualification ineligibility
as a result of a quit or discharge of the applicant within ten calendar
days of notification under subdivision 1, paragraph (b);
then any exception under
section 268.047, subdivisions 2 and 3, shall begin begins the
Sunday two weeks following the week that the issue of disqualification
ineligibility as a result of a quit or discharge of the applicant was raised
by the employer.
A communication from an employer must specifically set out why the
applicant should be determined ineligible for unemployment benefits for that
communication to be considered to have raised an issue of ineligibility for
purposes of this section. A statement of "protest" or a similar term
without more information does not constitute raising an issue of ineligibility
for purposes of this section.
(c) If any time within 24 months from the establishment of a benefit
account the commissioner finds that an applicant failed to report any
employment, or loss of employment that was required to be provided by the
applicant under this section, the commissioner shall determine any issue of
disqualification on that loss of employment and send to the applicant and
involved employer, by mail or electronic transmission, a determination of
disqualification or a determination of nondisqualification, as is appropriate.
The determination shall state the effect on the employer under section 268.047.
This paragraph shall not prevent the imposition of any penalty under
section 268.18, subdivision 2, or 268.182.
(d)
(c) An
issue of disqualification shall be ineligibility is determined
based upon that information required of an applicant, any information that may
be obtained from an applicant or employer, and information from any other
source, without regard to any common law burden of proof.
(e) A determination of disqualification or a determination of
nondisqualification shall be final unless an appeal is filed by the applicant
or notified employer within 30 calendar days after sending. The determination
shall contain a prominent statement indicating the consequences of not
appealing. Proceedings on the appeal shall be conducted in accordance with
section 268.105.
(f) An issue of disqualification for purposes of this section shall
include any reason for no longer working for an employer other than a layoff
due to lack of work, any question of a disqualification from unemployment
benefits under section 268.095, any question of an exception to
disqualification under section 268.095, any question of effect on an employer
under section 268.047, and any question of an otherwise imposed
disqualification that an applicant has satisfied under section 268.095, subdivision
10.
(g)
(d)
Regardless of the requirements of this subdivision, the commissioner is not
required to send to an applicant a copy of the determination where the
applicant has satisfied any otherwise potential disqualification
period of ineligibility because of a quit or a discharge under section
268.095, subdivision 10.
(e) The commissioner may issue a determination on an issue of
ineligibility at any time within 24 months from the establishment of a benefit
account based upon information from any source, even if the issue of
ineligibility was not raised by the applicant or an employer.
This paragraph does not prevent the imposition of a penalty under
section 268.18, subdivision 2, or 268.182.
(f) A determination of eligibility or determination of ineligibility is
final unless an appeal is filed by the applicant or notified employer within 20
calendar days after sending. The determination must contain a prominent
statement indicating the consequences of not appealing. Proceedings on the
appeal are conducted in accordance with section 268.105.
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(g) An issue of ineligibility required to be determined under this section
includes any question regarding the denial or allowing of unemployment benefits
under this chapter except for issues under section 268.07. An issue of
ineligibility for purposes of this section includes any question of effect on
an employer under section 268.047.
(h) Except for issues of ineligibility as a result of a quit or
discharge of the applicant, the employer will be (1) sent a copy of the
determination of eligibility or a determination of ineligibility, or (2)
considered an involved employer for purposes of an appeal under section
268.105, only if the employer raised the issue of ineligibility.
Subd. 3. Eligibility determination.
(a) The commissioner shall determine any issue of eligibility raised by an
employer, and send to the applicant and that employer, by mail or electronic
transmission, a determination of eligibility or a determination of
ineligibility, as is appropriate.
(b) The commissioner shall determine any issue of eligibility raised by
information obtained from an applicant and send to the applicant, by mail or
electronic transmission, a determination of eligibility or a determination of
ineligibility, as is appropriate. A determination shall be made pursuant to
this paragraph even if a notified employer has not raised the issue of
eligibility.
(c) If any time within 24 months from the establishment of a benefit
account the commissioner finds the applicant failed to provide, on an
application for unemployment benefits or on a continued biweekly request for
unemployment benefits, requested information on an issue of eligibility, the
commissioner shall determine the issue of eligibility and send to the
applicant, by mail or electronic transmission, a determination of eligibility
or a determination of ineligibility, as is appropriate.
This paragraph shall not prevent the imposition of a penalty under
section 268.18, subdivision 2, or 268.182.
(d) A determination of eligibility or determination of ineligibility
shall be final unless an appeal is filed by the applicant or notified employer
within 30 calendar days after sending. The determination shall contain a
prominent statement indicating the consequences of not appealing. Proceedings
on the appeal shall be conducted in accordance with section 268.105.
(e) An issue of eligibility for purposes of this section shall include
any question regarding the denial or allowing of unemployment benefits under
sections 268.085, 268.086, 268.115, 268.125, 268.135, and 268.155.
(f) Only if an employer raised the issue of eligibility shall the
employer be: (1) sent the determination of eligibility or a determination of
ineligibility, or (2) considered an involved employer for purposes of an appeal
under section 268.105.
Subd. 3a. Direct hearing.
Regardless of any provision of the Minnesota Unemployment Insurance Law, the
commissioner or an unemployment law judge may, prior to before a
determination being made under this chapter, refer any issue of
disqualification, any issue of eligibility ineligibility, or
any other issue under this chapter, directly for hearing in accordance with
section 268.105, subdivision 1. The status of the issue shall be is
the same as if a determination had been made and an appeal filed.
Subd. 4. Amended determination.
Unless an appeal has been filed, the commissioner, on the commissioner's own
motion, may reconsider a determination of disqualification or
nondisqualification or a determination of eligibility or ineligibility that
has not become final and issue an amended determination. Any amended
determination shall must be sent to the applicant and any
involved employer by mail or electronic transmission. Any amended determination
shall be is final unless an appeal is filed by the applicant or
notified employer within 30 20 calendar days after sending.
Proceedings on the appeal shall be are conducted in accordance
with section 268.105.
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Subd. 5. Unemployment benefit
payment. If a determination or amended determination allows unemployment
benefits to an applicant, the unemployment benefits shall must be
paid regardless of any appeal period or any appeal having been filed.
Subd. 6. Overpayment. A
determination or amended determination that holds an applicant disqualified
or ineligible for unemployment benefits for periods an applicant has been
paid benefits is considered an overpayment of those unemployment benefits under
section 268.18, subdivision 1.
Sec. 8. Minnesota Statutes 2006, section 268.125, subdivision 3, is
amended to read:
Subd. 3. Eligibility conditions.
An applicant is eligible to receive additional unemployment benefits for any
week during the applicant's benefit year if:
(1) the applicant was laid off from employment as a result of a
reduction under subdivision 1 or was laid off due to because of
lack of work from that employer during the three-month period before, or the
three-month period after, the month of the reduction under subdivision 1;
(2) the applicant meets the eligibility requirements under section
268.085;
(3) the applicant is not subject to a disqualification
ineligible under section 268.095 because of a quit or a discharge; for
the purpose of this subdivision, the disqualifying conditions in section
268.095, and the requalifying requirements, apply to the receipt of additional
unemployment benefits;
(4) the applicant has exhausted regular unemployment benefits under
section 268.07, is not entitled to receive extended unemployment benefits under
section 268.115, and is not entitled to receive unemployment benefits under any
other state or federal law for that week; and
(5) a majority of the applicant's wage credits were from the employer
that had a reduction in operations under subdivision 1.
Sec. 9. REVISOR'S
INSTRUCTION.
In the headnote of Minnesota Statutes, section 268.095, the revisor of
statutes shall change the term "DISQUALIFICATION" to
"INELIGIBILITY."
Sec. 10. EFFECTIVE DATE.
This article applies to all department determinations, appeal
decisions, and other actions done on or after September 30, 2007.
ARTICLE 6
STYLE CHANGES
Section 1. STATEMENT OF
INTENT.
This article makes style changes that conform to preferred modern statutory
drafting conventions for the use of clear, concise, and plain language.
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Sec. 2. Minnesota Statutes 2006, section 268.001, is amended to read:
268.001 CITATION; MINNESOTA
UNEMPLOYMENT INSURANCE LAW.
This chapter shall will be known and may be cited as the
"Minnesota Unemployment Insurance Law."
Sec. 3. Minnesota Statutes 2006, section 268.03, subdivision 1, is
amended to read:
Subdivision 1. Statement.
The public purpose of this chapter is: Economic insecurity due to
because of involuntary unemployment of workers in Minnesota is a subject of
general concern that requires appropriate action by the legislature. The public
good will be is promoted by providing workers who are unemployed
through no fault of their own a temporary partial wage replacement to assist
the unemployed worker to become reemployed. This program will be known as
is the "Minnesota unemployment insurance program."
Sec. 4. Minnesota Statutes 2006, section 268.03, subdivision 2, is
amended to read:
Subd. 2. Standard of proof.
All issues of fact under the Minnesota Unemployment Insurance Law shall be
are determined by a preponderance of the evidence. Preponderance of the
evidence means evidence in substantiation of a fact that, when weighed against
the evidence opposing the fact, is more convincing and has a greater
probability of truth.
Sec. 5. Minnesota Statutes 2006, section 268.035, subdivision 9, is
amended to read:
Subd. 9. Construction/independent
contractor. A worker doing commercial or residential building construction
or improvement, in the public or private sector, performing services in the
course of the trade, business, profession, or occupation of the employer, shall
be is considered an employee and not an "independent
contractor" unless the worker meets all the following conditions:
(1) maintains a separate business with the independent contractor's own
office, equipment, materials, and other facilities;
(2) holds or has applied for a federal employer identification number
or has filed business or self-employment income tax returns with the federal
Internal Revenue Service based on that work or service in the previous year;
(3) operates under contracts to perform specific services or work for
specific amounts of money under which the independent contractor controls the
means of performing the services or work;
(4) incurs the main expenses related to the service or work that the
independent contractor performs under contract;
(5) is responsible for the satisfactory completion of work or services
that the independent contractor contracts to perform and is liable for a
failure to complete the work or service;
(6) receives compensation for work or service performed under a
contract on a commission or per job or competitive bid basis and not on any
other basis;
(7) may realze a profit or suffer a loss under contracts to perform
work or service;
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(8) has continuing or recurring business liabilities or obligations;
and
(9) the success or failure of the independent contractor's business
depends on the relationship of business receipts to expenditures.
Sec. 6. Minnesota Statutes 2006, section 268.035, subdivision 10, is
amended to read:
Subd. 10. Corporation.
"Corporation" includes associations, joint-stock companies, and
insurance companies. This definition shall is not be
exclusive.
Sec. 7. Minnesota Statutes 2006, section 268.035, subdivision 11, is
amended to read:
Subd. 11. Covered agricultural
employment. "Covered agricultural employment" means agricultural
employment where:
(1) The employment is performed for a person who:
(i) during any calendar quarter in either the current or the prior
calendar year paid wages of $20,000 or more to employees in agricultural
employment; or
(ii) for some portion of a day in each of 20 different calendar weeks,
whether or not the weeks were consecutive, in either the current or prior calendar
year employed in agricultural employment four or more employees, regardless of
whether they were employed at the same time.
(2) Any employee who is a member of a crew furnished by a crew leader
to be employed in agricultural employment for any other person shall be
is treated as an employee of the crew leader:
(i) if the crew leader holds a valid certificate of registration under
United States Code, title 29, section 1802, the Migrant and Seasonal
Agricultural Worker Protection Act; or substantially all of the members of the
crew operate or maintain tractors, mechanized harvesting or crop dusting
equipment, or any other mechanized equipment, that is provided by the crew
leader; and
(ii) if the employee is not an employee of another person.
(3) Any employee who is furnished by a crew leader to be employed in
agricultural employment for any other person and who is not treated as an
employee of the crew leader under clause (2):
(i) the other person and not the crew leader shall be is
treated as the employer of the employee; and
(ii) the other person shall be is treated as having paid
wages to the employee in an amount equal to the amount of wages paid to the
employee by the crew leader (either on the crew leader's behalf or on behalf of
the other person) for the agricultural employment performed for the other
person.
(4) The term "crew leader" means an individual who:
(i) furnishes employees to be employed in agricultural employment for
any other person;
(ii) pays (either on the crew leader's own behalf or on behalf of the
other person) the employees furnished by the crew leader for the agricultural
employment performed by them; and
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(iii) has not entered into a written agreement with the other person
under which the furnished employee is designated as an employee of the other
person.
(5) Employment of an officer or shareholder of a family farm
corporation shall be is excluded from covered agricultural employment
unless the corporation is an employer under United States Code, title 26,
section 3306(a)(2) of the Federal Unemployment Tax Act.
(6) Employment of an individual 16 years of age or under shall be
is excluded from covered agricultural employment unless the employer is an
employer under United States Code, title 26, section 3306(a)(2) of the Federal
Unemployment Tax Act.
Sec. 8. Minnesota Statutes 2006, section 268.035, subdivision 13, is
amended to read:
Subd. 13. Employee.
"Employee" means:
(1) every individual who is performing or has performed services for an
employer in employment; or
(2) each individual employed to perform or assist in performing the
work of any agent or employee of the employer shall be is
considered to be an employee of that employer whether the individual was hired
or paid directly by that employer or by the agent or employee, provided the
employer had actual or constructive knowledge of the work.
Sec. 9. Minnesota Statutes 2006, section 268.035, subdivision 20, is
amended to read:
Subd. 20. Noncovered employment.
"Noncovered employment" means:
(1) employment for the United States government or an instrumentality
thereof, including military service;
(2) employment for a state, other than Minnesota, or a political subdivision
or instrumentality thereof;
(3) employment for a foreign government;
(4) employment for an instrumentality wholly owned by a foreign
government, if the employment is of a character similar to that performed in
foreign countries by employees of the United States government or an
instrumentality thereof and the United States Secretary of State has certified
that the foreign government grants an equivalent exemption to similar
employment performed in the foreign country by employees of the United States
government and instrumentalities thereof;
(5) employment covered under United States Code, title 45, section 351,
the Railroad Unemployment Insurance Act;
(6) employment covered by a reciprocal arrangement between the
commissioner and another state or the federal government which that
provides that all employment performed by an individual for an employer during
the period covered by the reciprocal arrangement is considered performed
entirely within another state;
(7) employment for a church or convention or association of churches,
or an organization operated primarily for religious purposes that is operated,
supervised, controlled, or principally supported by a church or convention or
association of churches described in United States Code, title 26, section
501(c)(3) of the federal Internal Revenue Code and exempt from income tax under
section 501(a);
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(8) employment of a duly ordained or licensed minister of a church in
the exercise of a ministry or by a member of a religious order in the exercise
of duties required by the order, for Minnesota or a political subdivision or an
organization described in United States Code, title 26, section 501(c)(3) of
the federal Internal Revenue Code and exempt from income tax under section
501(a);
(9) employment of an individual receiving rehabilitation of
"sheltered" work in a facility conducted for the purpose of carrying
out a program of rehabilitation for individuals whose earning capacity is
impaired by age or physical or mental deficiency or injury or a program
providing "sheltered" work for individuals who because of an impaired
physical or mental capacity cannot be readily absorbed in the competitive labor
market. This clause applies only to services performed for Minnesota or a
political subdivision or an organization described in United States Code, title
26, section 501(c)(3) of the federal Internal Revenue Code and exempt from
income tax under section 501(a) in a facility certified by the Rehabilitation
Services Branch of the department or in a day training or habilitation program
licensed by the Department of Human Services;
(10) employment of an individual receiving work relief or work training
as part of an unemployment work relief or work training program assisted or
financed in whole or in part by any federal agency or an agency of a state or
political subdivision thereof. This clause applies only to employment for
Minnesota or a political subdivision or an organization described in United
States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code
and exempt from income tax under section 501(a). This clause shall
does not apply to programs that require unemployment benefit coverage for
the participants;
(11) employment for Minnesota or a political subdivision as an elected
official, a member of a legislative body, or a member of the judiciary;
(12) employment as a member of the Minnesota National Guard or Air
National Guard;
(13) employment for Minnesota, a political subdivision, or
instrumentality thereof, as an employee serving only on a temporary basis in
case of fire, flood, tornado, or similar emergency;
(14) employment as an election official or election worker for Minnesota
or a political subdivision, but only if the compensation for that employment
was less than $1,000 in a calendar year;
(15) employment for Minnesota that is a major policy making or advisory
position in the unclassified service, including those positions established pursuant
to under section 43A.08, subdivision 1a;
(16) employment for a political subdivision of Minnesota that is a
nontenured major policy making or advisory position;
(17) domestic employment in a private household, local college club, or
local chapter of a college fraternity or sorority performed for a person, only
if the wages paid in any calendar quarter in either the current or preceding
prior calendar year to all individuals in domestic employment totaled
less than $1,000.
"Domestic employment" includes all service in the operation
and maintenance of a private household, for a local college club, or local
chapter of a college fraternity or sorority as distinguished from service as an
employee in the pursuit of an employer's trade or business;
(18) employment of an individual by a son, daughter, or spouse, and
employment of a child under the age of 18 by the child's father or mother;
(19) employment of an inmate of a custodial or penal institution;
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(20) employment for a school, college, or university by a student who
is enrolled and is regularly attending classes at the school, college, or
university;
(21) employment of an individual who is enrolled as a student in a
full-time program at a nonprofit or public educational institution that
maintains a regular faculty and curriculum and has a regularly organized body
of students in attendance at the place where its educational activities are
carried on, taken for credit at the institution, that combines academic
instruction with work experience, if the employment is an integral part of the
program, and the institution has so certified to the employer, except that this
clause shall does not apply to employment in a program
established for or on behalf of an employer or group of employers;
(22) employment of university, college, or professional school students
in an internship or other training program with the city of St. Paul or the
city of Minneapolis pursuant to under Laws 1990, chapter 570,
article 6, section 3;
(23) employment for a hospital by a patient of the hospital.
"Hospital" means an institution that has been licensed by the
Department of Health as a hospital;
(24) employment as a student nurse for a hospital or a nurses' training
school by an individual who is enrolled and is regularly attending classes in
an accredited nurses' training school;
(25) employment as an intern for a hospital by an individual who has
completed a four-year course in an accredited medical school;
(26) employment as an insurance salesperson, by other than a corporate
officer, if all the wages from the employment is solely by way of commission.
The word "insurance" shall include includes an annuity
and an optional annuity;
(27) employment as an officer of a township mutual insurance company or
farmer's mutual insurance company operating pursuant to under
chapter 67A;
(28) employment of a corporate officer, if the officer owns 25 percent
or more of the employer corporation, and employment of a member of a limited
liability company, if the member owns 25 percent or more of the employer
limited liability company;
(29) employment as a real estate salesperson, by other than a corporate
officer, if all the wages from the employment is solely by way of commission;
(30) employment as a direct seller as defined in United States Code,
title 26, section 3508;
(31) employment of an individual under the age of 18 in the delivery or
distribution of newspapers or shopping news, not including delivery or
distribution to any point for subsequent delivery or distribution;
(32) casual employment performed for an individual, other than domestic
employment under clause (17), that does not promote or advance that employer's
trade or business;
(33) employment in "agricultural employment" unless
considered "covered agricultural employment" under subdivision 11; or
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(34) if employment during one-half or more of any pay period was
covered employment, all the employment for the pay period shall be is
considered covered employment; but if during more than one-half of any pay
period the employment was noncovered employment, then all of the employment for
the pay period shall be is considered noncovered employment.
"Pay period" means a period of not more than a calendar month for
which a payment or compensation is ordinarily made to the employee by the
employer.
Sec. 10. Minnesota Statutes 2006, section 268.035, subdivision 21a, is
amended to read:
Subd. 21a. Reemployment
assistance training. (a) An applicant is in "reemployment assistance
training" when:
(1) reasonable and suitable employment for the applicant does not exist
in the labor market area and it is necessary that the applicant receive
training in order to obtain suitable employment;
(2) the curriculum, facilities, staff, and other essentials are
adequate to achieve the training objective;
(3) the training is vocational in nature or short term academic
training vocationally directed to an occupation or skill for which there are
reasonable employment opportunities available to the applicant;
(4) the training course is considered full time by the training provider;
and
(5) the applicant is making satisfactory progress in the training.
(b) Full-time training provided through the dislocated worker program,
the Trade Act of 1974, as amended, or the North American Free Trade Agreement shall
be is considered "reemployment assistance training," if
that training course is in accordance with the requirements of that program.
(c) An applicant will be is considered in reemployment
assistance training only if the training course has actually started or is
scheduled to start within 30 calendar days.
Sec. 11. Minnesota Statutes 2006, section 268.035, subdivision 23a, is
amended to read:
Subd. 23a. Suitable employment.
(a) Suitable employment means employment in the applicant's labor market area
that is reasonably related to the applicant's qualifications. In determining
whether any employment is suitable for an applicant, the degree of risk
involved to the health and safety, physical fitness, prior training,
experience, length of unemployment, prospects for securing employment in the
applicant's customary occupation, and the distance of the employment from the
applicant's residence shall be is considered.
(b) In determining what is suitable employment, primary consideration shall
be is given to the temporary or permanent nature of the applicant's
separation from employment and whether the applicant has favorable prospects of
finding employment in the applicant's usual or customary occupation at the
applicant's past wage level within a reasonable period of time.
If prospects are unfavorable, employment at lower skill or wage levels
is suitable if the applicant is reasonably suited for the employment
considering the applicant's education, training, work experience, and current
physical and mental ability.
The total compensation must be considered, including the wage rate,
hours of employment, method of payment, overtime practices, bonuses, incentive
payments, and fringe benefits.
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(c) When potential
employment is at a rate of pay lower than the applicant's former rate,
consideration must be given to the length of the applicant's unemployment and
the proportion of difference in the rates. Employment that may not be suitable
because of lower wages during the early weeks of the applicant's unemployment
may become suitable as the duration of unemployment lengthens.
(d) For an applicant
seasonally unemployed, suitable employment includes temporary work in a lower
skilled occupation that pays average gross weekly wages equal to or more than
150 percent of the applicant's weekly unemployment benefit amount.
(e) If a majority of the
applicant's wage credits were earned from part-time employment, part-time
employment in a position with comparable skills and comparable hours that pays
average gross weekly wages equal to or more than 150 percent of the applicant's
weekly unemployment benefit amount shall be is considered
suitable employment.
(f) To determine suitability
of employment in terms of shifts, the arrangement of hours in addition to the
total number of hours is to be considered. Employment on a second, third,
rotating, or split shift is suitable employment if it is customary in the
occupation in the labor market area.
(g) Employment shall
is not be considered suitable if:
(1) the position offered is
vacant because of a labor dispute;
(2) the wages, hours, or
other conditions of employment are substantially less favorable than those
prevailing for similar employment in the labor market area; or
(3) as a condition of
becoming employed, the applicant would be required to join a company union or
to resign from or refrain from joining any bona fide labor organization.
Sec. 12. Minnesota Statutes 2006,
section 268.035, subdivision 26, is amended to read:
Subd. 26. Unemployed. An applicant shall be
is considered "unemployed" (1) in any week that the applicant
performs less than 32 hours of service in employment, covered employment,
noncovered employment, self-employment, or volunteer work; and (2) any earnings
with respect to that week are less than the applicant's weekly unemployment
benefit amount.
Sec. 13. Minnesota Statutes
2006, section 268.035, subdivision 30, is amended to read:
Subd. 30. Wages paid. (a) "Wages paid"
means the amount of wages that have been actually paid or that have been
credited to or set apart so that payment and disposition is under the control
of the employee. Wage payments delayed beyond the regularly scheduled pay date
are considered "wages paid" on the missed pay date. Back pay shall
be is considered "wages paid" on the date of actual
payment. Any wages earned but not paid with no scheduled date of payment shall
be is considered "wages paid" on the last day of employment.
(b) Wages paid shall
does not include wages earned but not paid except as provided for in this
subdivision.
Sec. 14. Minnesota Statutes
2006, section 268.042, subdivision 3, is amended to read:
Subd. 3. Election to have noncovered employment
considered covered employment. (a) Any employer that has employment
performed for it that is noncovered employment under section 268.035,
subdivision 20, may file with the commissioner, by electronic transmission in a
format prescribed by the commissioner, an election that all such
employment, in one or more distinct establishments or places of business, shall
be is considered covered
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employment for not less than
two calendar years. The commissioner shall have has discretion on
the approval of any election. Upon the approval of the commissioner, sent by
mail or electronic transmission, the employment shall constitute
constitutes covered employment beginning the calendar quarter after the
date of approval or beginning a later calendar quarter if requested by the
employer. The employment shall cease ceases to be considered
covered employment as of the first day of January of any calendar year only if
at least 30 calendar days prior to before the first day of
January the employer has filed with the commissioner, by electronic
transmission in a format prescribed by the commissioner, a notice to that
effect.
(b) The commissioner must
terminate any election agreement under this subdivision upon 30 calendar days'
notice sent by mail or electronic transmission, if the employer is delinquent
on any taxes due or reimbursements due the trust fund.
Sec. 15. Minnesota Statutes
2006, section 268.042, subdivision 4, is amended to read:
Subd. 4. Authorization. The commissioner is
authorized to enter into reciprocal arrangements with other states and the
federal government, or both, whereby employment by an employee or employees for
a single employer that is customarily performed in more than one state shall
be is considered performed entirely within any one of the states:
(1) where any part of the
employee's employment is performed, or
(2) where the employee has a
residence, or
(3) where the employer
maintains a place of business; provided, there is in effect, as to the
employment, an election, approved by the state, pursuant to under
which all the employment by the employee or employees for the employer is
considered to be performed entirely within that state.
Sec. 16. Minnesota Statutes
2006, section 268.0435, is amended to read:
268.0435 SINGLE MEMBER LIMITED LIABILITY COMPANIES.
If the only member of a
limited liability company is a corporation, and the limited liability company
is disregarded for purposes of filing federal corporate income tax, all the
workers performing services for the limited liability company must be reported
on the corporation's wage detail report under section 268.044. A corporation
that violates this section shall be is subject to the penalties
under section 268.184, subdivision 1a. Penalties shall be are
credited to the administration account to be used to ensure integrity in the
unemployment insurance program.
Sec. 17. Minnesota Statutes
2006, section 268.044, subdivision 1a, is amended to read:
Subd. 1a. Electronic transmission of report required.
Each employer must submit the quarterly wage detail report by electronic
transmission in a format prescribed by the commissioner. The commissioner shall
have has the discretion to accept wage detail reports that are
submitted by any other means or the commissioner may return the report
submitted by other than electronic transmission to the employer, and reports
returned shall be are considered as not submitted and the late
fees under subdivision 2 may be imposed.
Sec. 18. Minnesota Statutes
2006, section 268.044, subdivision 2, is amended to read:
Subd. 2. Failure to timely file report; late fees.
(a) Any employer that fails to submit the quarterly wage detail report when due
shall must pay a late fee of $10 per employee, computed based
upon the highest of:
(1) the number of employees
reported on the last wage detail report submitted;
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(2) the number of employees
reported in the corresponding quarter of the prior calendar year; or
(3) if no wage detail report
has ever been submitted, the number of employees listed at the time of employer
registration.
The late fee shall be
is waived if the wage detail report is received within 30 calendar days
after a demand for the report is sent to the employer by mail or electronic
transmission. A late fee assessed an employer may not be waived more than twice
each 12 months. The amount of the late fee assessed shall may not
be less than $250.
(b) If the wage detail
report is not received in a manner and format prescribed by the commissioner
within 30 calendar days after demand is sent under paragraph (a), the late fee
assessed under paragraph (a) shall double doubles and a renewed
demand notice and notice of the increased late fee shall will be
sent to the employer by mail or electronic transmission.
(c) Late fees due under this
subdivision may be compromised under section 268.067 where good cause for late
submission is found by the commissioner.
Sec. 19. Minnesota Statutes
2006, section 268.044, subdivision 4, is amended to read:
Subd. 4. Fees. The fees provided for in
subdivisions 2 and 3 are in addition to interest and other penalties imposed by
this chapter and shall be are collected in the same manner as
delinquent taxes and shall be credited to the contingent account.
Sec. 20. Minnesota Statutes
2006, section 268.045, subdivision 1, is amended to read:
Subdivision 1. Account for each employer. The
commissioner shall maintain (1) a tax account for each taxpaying employer and
(2) a reimbursable account for each nonprofit or government employer that has
elected under section 268.052 or 268.053 to be liable for reimbursements,
except as provided in section 268.046. The commissioner shall assess the tax
account for all the taxes due under section 268.051 and credit the tax account
with all taxes paid. The commissioner shall charge the reimbursable account for
any unemployment benefits determined chargeable under section 268.047 and shall
credit the reimbursable account with the payments made.
Sec. 21. Minnesota Statutes
2006, section 268.046, is amended to read:
268.046 TAX AND REIMBURSABLE ACCOUNTS ASSIGNED TO EMPLOYEE LEASING
COMPANIES, PROFESSIONAL EMPLOYER ORGANIZATIONS, OR SIMILAR PERSON.
Subdivision 1. Tax accounts assigned. (a) Any person
that contracts with a taxpaying employer to have that person obtain the
taxpaying employer's workforce and provide workers to the taxpaying employer
for a fee shall is, as of the effective date of the contract, be
assigned for the duration of the contract the taxpaying employer's account
under section 268.045. That tax account must be maintained by the person
separate and distinct from every other tax account held by the person and
identified in a manner prescribed by the commissioner. The tax account shall
is, for the duration of the contract, be considered that person's
account for all purposes of this chapter. The workers obtained from the taxpaying
employer and any other workers provided by that person to the taxpaying
employer must, under section 268.044, be reported on the wage detail report
under that tax account, and that person shall must pay any taxes
due at the tax rate computed for that account under section 268.051,
subdivision 2.
(b) Any workers of the
taxpaying employer who are not covered by the contract under paragraph (a) must
be reported by the taxpaying employer as a separate unit on the wage detail
report under the tax account assigned under paragraph (a). Taxes and any other
amounts due on the wages reported by the taxpaying employer under this
paragraph may be paid directly by the taxpaying employer.
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(c) If the taxpaying employer that contracts with a person under
paragraph (a) does not have a tax account at the time of the execution of the
contract, an account must be registered for the taxpaying employer under section
268.042 and the new employer tax rate under section 268.051, subdivision 5,
must be assigned. The tax account shall is then be
assigned to the person as provided for in paragraph (a).
(d) A person that contracts with a taxpaying employer under paragraph
(a) must, within 30 calendar days of the execution or termination of a
contract, notify the commissioner by electronic transmission, in a format
prescribed by the commissioner, of that execution or termination. The taxpaying
employer's name, the account number assigned, and any other information
required by the commissioner must be provided by that person.
(e) Any contract subject to paragraph (a) must specifically inform the
taxpaying employer of the assignment of the tax account under this section and
the taxpaying employer's obligation under paragraph (b). If there is a
termination of the contract, the tax account shall is, as of the
date of termination, immediately be assigned to the taxpaying employer.
Subd. 2. Nonprofit and
government reimbursable accounts assigned. (a) Any person that contracts
with a nonprofit or government employer that is a reimbursing employer to have
that person obtain the nonprofit or government employer's workforce and provide
workers to the nonprofit or government employer for a fee, shall is,
as of the effective date of the contract, be assigned for the duration
of the contract the nonprofit or government employer's account under section
268.045. That reimbursable account must be maintained by the person separate
and distinct from every other account held by the person and identified in a
manner prescribed by the commissioner. That reimbursable account shall
is, for the duration of the contract, be considered that person's
account for all purposes of this chapter. The workers obtained from the
nonprofit or government employer and any other workers provided by that person
to the nonprofit or government employer must, under section 268.044, be
reported on the wage detail report under that reimbursable account, and that person
shall must pay any reimbursements due.
(b) Any workers of the nonprofit or government employer who are not
covered by the contract under paragraph (a) must be reported by the nonprofit
or government employer as a separate unit on the wage detail report under the
reimbursable account assigned under paragraph (a). Reimbursements and any other
amounts due on the wages reported by the nonprofit or government employer under
this paragraph may be paid directly by the nonprofit or government employer.
(c) If the nonprofit or government employer that contracts with a
person under paragraph (a) does not have an account at the time of the
execution of the contract, an account must be registered for the nonprofit or
government employer under section 268.042. The reimbursable account shall
is then be assigned to the person as provided for in paragraph (a).
(d) A person that contracts with a nonprofit or government employer
under paragraph (a) must, within 30 calendar days of the execution or
termination of a contract, notify the commissioner of that execution or
termination by electronic transmission, in a format prescribed by the
commissioner. The nonprofit or government employer's name, the account number
assigned, and any other information required by the commissioner must be
provided by that person.
(e) Any contract subject to paragraph (a) must specifically inform the
nonprofit or government employer of the assignment of the reimbursable account
under this section and the nonprofit or government employer's obligation under
paragraph (b). If there is a termination of the contract, the reimbursable
account shall is, as of the date of termination, immediately be
assigned to the nonprofit or government employer.
Subd. 3. Penalties; application.
(a) Any person that violates the requirements of this section and any taxpaying
employer that violates subdivision 1, paragraph (b), or any nonprofit or
government employer that violates subdivision 2, paragraph (b), shall be
is subject to the penalties under section 268.184, subdivision 1a.
Penalties shall be are credited to the administration account to
be used to ensure integrity in the unemployment insurance program.
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(b) Section 268.051, subdivision
4, does not apply to contracts under this section. This section shall
does not limit or prevent the application of section 268.051, subdivision
4, to any other transactions or acquisitions involving the taxpaying employer.
This section shall does not limit or prevent the application of
section 268.051, subdivision 4a.
(c) An assignment of an
account upon the execution of a contract under this section and a termination
of a contract with the corresponding assignment of the account shall
is not be considered a separation from employment of any worker
covered by the contract. Nothing under this subdivision shall cause
causes the person to be liable for any amounts past due under this chapter
from the taxpaying employer or the nonprofit or government employer.
(d) This section applies to,
but is not limited to, persons registered under section 79.255, but does not
apply to persons that obtain an exemption from registration under section
79.255, subdivision 9.
Sec. 22. Minnesota Statutes
2006, section 268.047, subdivision 1, is amended to read:
Subdivision 1. General rule. Unemployment benefits
paid to an applicant, including extended, additional, and shared work benefits,
shall will be used in computing the future tax rate of a
taxpaying base period employer or charged to the reimbursable account of a base
period nonprofit or government employer that has elected to be liable for
reimbursements except as provided in subdivisions 2 and 3. The amount of
unemployment benefits used in computing the future tax rate of taxpaying
employers or charged to the reimbursable account of a nonprofit or government
employer that has elected to be liable for reimbursements shall be is
the same percentage of the total amount of unemployment benefits paid as
the percentage of wage credits from the employer is of the total amount of wage
credits from all the applicant's base period employers.
In making computations under
this subdivision, the amount of wage credits, if not a whole dollar, shall
must be computed to the nearest whole dollar.
Sec. 23. Minnesota Statutes
2006, section 268.047, subdivision 3, is amended to read:
Subd. 3. Exceptions for taxpaying employers.
Unemployment benefits paid shall will not be used in computing
the future tax rate of a taxpaying base period employer when:
(1) the applicant's wage
credits from that employer are less than $500;
(2) the applicant quit the
employment, unless it was determined under section 268.095, to have been
because of a good reason caused by the employer or because the employer
notified the applicant of discharge within 30 calendar days. This exception shall
apply applies only to unemployment benefits paid for periods after
the applicant's quitting the employment; or
(3) the employer discharged
the applicant from employment because of employment misconduct as determined
under section 268.095. This exception shall apply applies only to
unemployment benefits paid for periods after the applicant's discharge from
employment.
Sec. 24. Minnesota Statutes
2006, section 268.051, subdivision 4a, is amended to read:
Subd. 4a. Actions that avoid taxes. (a) If the
commissioner determines that any action was done, in whole or in part, to
avoid:
(1) an experience rating
history;
(2) the transfer of an
experience rating history; or
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(3) the assignment of a tax rate for new employers under subdivision 5,
paragraph (a) or (b), the commissioner, to insure that the trust fund receives
all the taxes that would have been received had the action not occurred, may,
effective the date of the action, transfer all or part of an experience rating
history and recompute the tax rate or assign the appropriate new employer tax
rate.
(b) This subdivision shall apply applies to any action
between persons regardless of whether there is any commonality of ownership,
management, or control between the persons. The authority granted to the
commissioner under this subdivision is in addition to any other authority
granted to the commissioner.
Sec. 25. Minnesota Statutes 2006, section 268.051, subdivision 9, is
amended to read:
Subd. 9. Assessments, fees, and
surcharges; treatment. Any assessment, fee, or surcharge imposed under the
Minnesota Unemployment Insurance Law shall be is treated the same
as, and considered as, a tax. Any assessment, fee, or surcharge shall be
is subject to the same collection procedures that apply to past due taxes.
Sec. 26. Minnesota Statutes 2006, section 268.052, subdivision 1, is
amended to read:
Subdivision 1. Payments. In
lieu of taxes payable on a quarterly basis, the state of Minnesota or its
political subdivisions shall must 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 under
section 268.047, subdivision 5. Past due reimbursements shall be are
subject to the same interest charges and collection procedures that apply to
past due taxes.
Sec. 27. Minnesota Statutes 2006, section 268.052, subdivision 2, is
amended to read:
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
must 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 is 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
is 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 is 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 are 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 is 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 applies 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
must be filed by electronic transmission in a format prescribed by the
commissioner.
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Sec. 28. Minnesota Statutes 2006, section 268.052, subdivision 3, is
amended to read:
Subd. 3. Method of payment by
state. To discharge its liability, the state and its wholly owned instrumentalities
shall must pay the trust fund as follows:
(1) Every self-sustaining department, institution and wholly owned
instrumentality shall must 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 must 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 must 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
must 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 must 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.
Sec. 29. Minnesota Statutes 2006, section 268.052, subdivision 4, is amended
to read:
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 must 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.
Sec. 30. Minnesota Statutes 2006, section 268.052, subdivision 5, is
amended to read:
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 are considered, for purposes of the
Minnesota unemployment insurance program, to have elected to be liable for
reimbursements under subdivision 1.
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Sec. 31. Minnesota Statutes 2006, section 268.0525, is amended to read:
268.0525 INDIAN TRIBES.
(a) An Indian tribe, as defined under United States Code, title 25,
section 450b(e) of the Indian Self-Determination and Education Assistance Act,
and any subdivision, subsidiary, or business enterprise owned by the Indian
tribe, shall must be treated the same as the state of Minnesota,
or a political subdivision of the state, for all purposes of the Minnesota
Unemployment Insurance Law.
(b) The Indian tribe may make separate elections under section 268.052,
subdivision 2, for itself and each subdivision, subsidiary, or business
enterprise wholly owned by the Indian tribe.
(c) If an Indian tribe, subdivision, subsidiary, or business enterprise
wholly owned by the tribe, which has elected to be liable for reimbursements,
fails to make the required payments within 90 calendar days of the
notice of delinquency, the commissioner shall terminate the election to make
reimbursements as of the beginning of the next calendar year, unless all past
due reimbursements, and any interest and penalties, have been paid before the
beginning of the next calendar year.
An Indian tribe, subdivision, subsidiary, or business enterprise wholly
owned by the tribe that has its election terminated under this paragraph shall
must become a taxpaying employer and assigned the new employer tax rate
under section 268.051, subdivision 5, until the tribe, subdivision, subsidiary,
or business enterprise wholly owned by the Indian tribe qualifies for an
experience rating under section 268.051, subdivision 3.
Sec. 32. Minnesota Statutes 2006, section 268.053, subdivision 1, is
amended to read:
Subdivision 1. Election. (a)
Any nonprofit organization that has employees in covered employment shall
must pay taxes on a quarterly basis pursuant to in accordance
with section 268.051 unless it elects to make reimbursements to the trust
fund the amount of unemployment benefits charged to its reimbursable account
under section 268.047.
The organization may elect to make reimbursements for a period of not
less than two calendar years beginning with the date that the organization was
determined to be an employer with covered employment by filing a notice of
election not later than 30 calendar days after the date of the determination.
(b) Any nonprofit organization that makes an election will continue to
be liable for reimbursements until it files a notice terminating its election
not later than 30 calendar days before the beginning of the calendar year the
termination is to be effective.
(c) A nonprofit organization that has been making reimbursements that
files a notice of termination of election shall must be assigned
the new employer tax rate under section 268.051, subdivision 5, for the
calendar year of the termination of election and until it qualifies for an
experience rating under section 268.051, subdivision 3.
(d) Any nonprofit
organization that has been paying taxes may elect to make reimbursements by
filing no less than 30 calendar days before January 1 of any calendar year a
notice of election. Upon election, the commissioner shall establish a
reimbursable account for the nonprofit organization. An election shall be
is allowed only if the nonprofit organization 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 are transferred to
the new
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reimbursable account of the
nonprofit organization. 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 is applied against any unemployment benefits paid after the
experience rating period. The election shall is not be
terminable by the organization for that and the next calendar year.
(e) The commissioner may for
good cause extend the period that a notice of election, or a notice of
termination, must be filed and may permit an election to be retroactive.
(f) A notice of election or
notice terminating election shall must be filed by electronic
transmission in a format prescribed by the commissioner.
Sec. 33. Minnesota Statutes
2006, section 268.053, subdivision 3, is amended to read:
Subd. 3. Payments. (a) 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 under section 268.047, subdivision 5.
(b) Past due reimbursements shall
be are subject to the same interest charges and collection
procedures that apply to past due taxes.
(c) If any nonprofit
organization is delinquent in making reimbursements, the commissioner may
terminate the organization's election to make reimbursements as of the
beginning of the next calendar year, and the termination shall be is
effective for that and the following calendar year. A nonprofit organization
that has its election terminated under this paragraph shall must
be assigned the new employer tax rate under section 268.051, subdivision 5,
until the organization qualifies for an experience rating under section
268.051, subdivision 3.
Sec. 34. Minnesota Statutes 2006,
section 268.057, subdivision 1, is amended to read:
Subdivision 1. Amount computed presumed correct. Any
amount due from an employer, as computed by the commissioner, shall be
is presumed to be correctly determined and assessed, and the burden shall
be is upon the employer to show its incorrectness. A statement by
the commissioner of the amount due shall be is admissible in
evidence in any court or administrative proceeding and shall be is
prima facie evidence of the facts in the statement.
Sec. 35. Minnesota Statutes
2006, section 268.057, subdivision 2, is amended to read:
Subd. 2. Priority of payments. (a) Any payment
received from a taxpaying employer shall must be applied in the
following order:
(1) unemployment insurance
taxes; then
(2) special assessment for
interest on any federal loan; then
(3) workforce development
fee; then
(4) interest on past due
taxes; then
(5) penalties, late fees,
administrative service fees, and costs.
(b) Paragraph (a) shall
be is the priority used for all payments received from a taxpaying
employer, regardless of how the employer may designate the payment to be
applied, except when:
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(1) there is an outstanding lien and the employer designates that the
payment made should be applied to satisfy the lien;
(2) the payment is for back pay withheld from an applicant pursuant
to under section 268.085, subdivision 6, paragraph (b);
(3) the payment is specifically designated by the employer to be
applied to an outstanding overpayment of unemployment benefits of an applicant;
(4) a court or administrative order directs that the payment be applied
to a specific obligation;
(5) a preexisting payment plan provides for the application of payment;
or
(6) the commissioner, under the compromise authority of section
268.067, agrees to apply the payment to a different priority.
Sec. 36. Minnesota Statutes 2006, section 268.057, subdivision 3, is
amended to read:
Subd. 3. Estimating the tax due.
Only if an employer fails to make all necessary records available for an audit pursuant
to under section 268.186, paragraph (b), and the commissioner has
reason to believe the employer has not reported all the required wages on the
quarterly wage detail reports under section 268.044, may the commissioner then
estimate the amount of tax due and assess the employer the estimated amount
due.
Sec. 37. Minnesota Statutes 2006, section 268.057, subdivision 4, is
amended to read:
Subd. 4. Costs. Any person
that fails to pay any amount when due under this chapter is liable for any
filing fees, recording fees, sheriff fees, costs incurred by referral to any
public or private collection agency, or litigation costs, including attorney
fees, incurred in the collection of the amounts due.
If any tendered payment of any amount due, is not honored when
presented to a financial institution for payment, any costs assessed the
department by the financial institution and a fee of $25 shall
must be assessed to the person.
Costs and fees collected under this subdivision shall be are
credited to the administration account to be used by the commissioner to ensure
integrity in the administration of the unemployment insurance program.
Sec. 38. Minnesota Statutes 2006, section 268.057, subdivision 5, is
amended to read:
Subd. 5. Interest on amounts
past due. If any amounts due from an employer under this chapter or section
116L.20, except late fees under section 268.044, are not received on the date
due the unpaid balance shall bear bears interest at the rate of
one and one-half percent per month or any part thereof. Interest assessed, if
not a whole dollar amount, shall be is rounded down to the next
lower whole dollar. Interest collected shall be is credited to
the contingent account. Interest may be compromised under section 268.067.
Sec. 39. Minnesota Statutes 2006, section 268.057, subdivision 6, is
amended to read:
Subd. 6. Interest on judgments.
Regardless of section 549.09, if judgment is entered upon any past due amounts
from an employer under this chapter or section 116L.20, the unpaid judgment shall
bear bears interest at the rate specified in subdivision 5 until the
date of payment.
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Sec. 40. Minnesota Statutes
2006, section 268.057, subdivision 10, is amended to read:
Subd. 10. Priorities under legal dissolutions or
distributions. In the event of any distribution of an employer's assets pursuant
according to an order of any court, including any receivership, assignment
for benefit of creditors, adjudicated insolvency, or similar proceeding, taxes
then or thereafter due shall must be paid in full prior to
before all other claims except claims for wages of not more than $1,000 per
former employee, earned within six months of the commencement of the
proceedings. In the event of an employer's adjudication in bankruptcy under
federal law, taxes then or thereafter due shall be are entitled
to the priority provided in that law for taxes due any state.
Sec. 41. Minnesota Statutes
2006, section 268.058, is amended to read:
268.058 LIEN, LEVY, SETOFF, AND CIVIL ACTION.
Subdivision 1. Lien. (a) Any amount due under this
chapter or section 116L.20, from an applicant or an employer, shall become
becomes a lien upon all the property, within this state, both real and
personal, of the person liable, from the date of assessment. The term
"date of assessment" means the date the obligation was due.
(b) The lien is not
enforceable against any purchaser, mortgagee, pledgee, holder of a Uniform
Commercial Code security interest, mechanic's lien, or judgment lien creditor,
until a notice of lien has been filed with the county recorder of the county
where the property is situated, or in the case of personal property belonging
to a nonresident person in the Office of the Secretary of State. When the
notice of lien is filed with the county recorder, the fee for filing and
indexing shall be is as provided in sections 272.483 and 272.484.
(c) Notices of liens, lien
renewals, and lien releases, in a form prescribed by the commissioner, may be
filed with the county recorder or the secretary of state by mail, personal
delivery, or by electronic transmission into the computerized filing system of
the secretary of state. The secretary of state shall, on any notice filed with
that office, transmit the notice electronically to the appropriate county
recorder. The filing officer, whether the county recorder or the secretary of
state, shall endorse and index a printout of the notice as if the notice had
been mailed or delivered.
(d) County recorders and the
secretary of state shall enter information on lien notices, renewals, and
releases into the central database of the secretary of state. For notices filed
electronically with the county recorders, the date and time of receipt of the
notice and county recorder's file number, and for notices filed electronically
with the secretary of state, the secretary of state's recording information,
must be entered into the central database before the close of the working day
following the day of the original data entry by the commissioner.
(e) The lien imposed on
personal property, even though properly filed, is not enforceable against a
purchaser of tangible personal property purchased at retail or personal
property listed as exempt in sections 550.37, 550.38, and 550.39.
(f) A notice of lien filed
has priority over any security interest arising under chapter 336, article 9,
that is perfected prior in time to the lien imposed by this subdivision, but
only if:
(1) the perfected security
interest secures property not in existence at the time the notice of lien is
filed; and
(2) the property comes into
existence after the 45th calendar day following the day the notice of lien is
filed, or after the secured party has actual notice or knowledge of the lien
filing, whichever is earlier.
(g) The lien shall be
is enforceable from the time the lien arises and for ten years from the
date of filing the notice of lien. A notice of lien may be renewed before
expiration for an additional ten years.
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(h) The lien shall be is enforceable by levy under
subdivision 2 or by judgment lien foreclosure under chapter 550.
(i) The lien may be imposed upon property defined as homestead property
in chapter 510 but may be enforced only upon the sale, transfer, or conveyance
of the homestead property.
(j) The commissioner may sell and assign to a third party the
commissioner's right of redemption in specific real property for liens filed
under this subdivision. The assignee shall be is limited to the
same rights of redemption as the commissioner, except that in a bankruptcy
proceeding, the assignee does not obtain the commissioner's priority. Any
proceeds from the sale of the right of redemption shall be are
credited to the contingent account.
Subd. 2. Levy. (a) If any
amount due under this chapter or section 116L.20, from an applicant or an
employer, is not paid when due, the amount may be collected by the commissioner
by direct levy upon all property and rights of property of the person liable
for the amount due except that exempt from execution under section 550.37. The
term "levy" includes the power of distraint and seizure by any means.
(b) In addition to a direct levy, the commissioner may issue a warrant
to the sheriff of any county who shall proceed within 60 calendar days to levy
upon the property or rights to property of the delinquent person within the
county, except that exempt under section 550.37. The sheriff shall sell that
property necessary to satisfy the total amount due, together with the
commissioner's and sheriff's costs. The sales shall be are
governed by the law applicable to sales of like property on execution of a
judgment.
(c) Notice and demand for payment of the total amount due shall
must be mailed to the delinquent person at least ten calendar days prior
to before action being taken under paragraphs (a) and (b).
(d) If the commissioner has reason to believe that collection of the amount
due is in jeopardy, notice and demand for immediate payment may be made. If the
total amount due is not paid, the commissioner may proceed to collect by direct
levy or issue a warrant without regard to the ten calendar day period.
(e) In executing the levy, the commissioner shall have all of the
powers provided in chapter 550 or any other law that provides for execution
against property in this state. The sale of property levied upon and the time
and manner of redemption shall be is as provided in chapter 550.
The seal of the court shall is not be required. The levy
may be made whether or not the commissioner has commenced a legal action for
collection.
(f) Where any assessment has been made by the commissioner, the
property seized for collection of the total amount due shall must
not be sold until any determination of liability has become final. No sale shall
may be made unless a portion of the amount due remains unpaid for a period
of more than 30 calendar days after the determination of liability becomes
final. Seized property may be sold at any time if:
(1) the delinquent person consents in writing to the sale; or
(2) the commissioner determines that the property is perishable or may
become greatly reduced in price or value by keeping, or that the property
cannot be kept without great expense.
(g) Where a levy has been made to collect the amount due and the
property seized is properly included in a formal proceeding commenced under
sections 524.3-401 to 524.3-505 and maintained under full supervision of the
court, the property shall may not be sold until the probate
proceedings are completed or until the court orders.
(h) The property seized shall must be returned if the
owner:
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(1) gives a surety bond equal to the appraised value of the owner's
interest in the property, as determined by the commissioner, or
(2) deposits with the commissioner security in a form and amount the
commissioner considers necessary to insure payment of the liability.
(i) If a levy or sale would irreparably injure rights in property that
the court determines superior to rights of the state, the court may grant an
injunction to prohibit the enforcement of the levy or to prohibit the sale.
(j) Any person who fails or refuses to surrender without reasonable
cause any property or rights to property subject to levy shall be is
personally liable in an amount equal to the value of the property or rights not
so surrendered, but not exceeding the amount due.
(k) If the commissioner has seized the property of any individual, that
individual may, upon giving 48 hours notice to the commissioner and to the court,
bring a claim for equitable relief before the district court for the release of
the property upon terms and conditions the court considers equitable.
(l) Any person in control or possession of property or rights to
property upon which a levy has been made who surrenders the property or rights
to property, or who pays the amount due shall be is discharged
from any obligation or liability to the person liable for the amount due with
respect to the property or rights to property.
(m) The notice of any levy may be served personally or by mail.
(n) The commissioner may release the levy upon all or part of the
property or rights to property levied upon if the commissioner determines that
the release will facilitate the collection of the liability, but the release shall
does not prevent any subsequent levy. If the commissioner determines that
property has been wrongfully levied upon, the commissioner shall return:
(1) the specific property levied upon, at any time; or
(2) an amount of money equal to the amount of money levied upon, at any
time before the expiration of nine months from the date of levy.
(o) Regardless of section 52.12, a levy upon a person's funds on
deposit in a financial institution located in this state, shall have
has priority over any unexercised right of setoff of the financial
institution to apply the levied funds toward the balance of an outstanding loan
or loans owed by the person to the financial institution. A claim by the
financial institution that it exercised its right to setoff prior to
before the levy must be substantiated by evidence of the date of the
setoff, and verified by an affidavit from a corporate officer of the financial
institution. For purposes of determining the priority of any levy under this
subdivision, the levy shall be is treated as if it were an
execution under chapter 550.
Subd. 3. Right of setoff.
(a) Upon certification by the commissioner to the commissioner of finance, or
to any state agency that disburses its own funds, that a person, applicant, or
employer has a liability under this chapter or section 116L.20, and that the
state has purchased personal services, supplies, contract services, or property
from that person, the commissioner of finance or the state agency shall set off
and pay to the commissioner an amount sufficient to satisfy the unpaid
liability from funds appropriated for payment of the obligation of the state
otherwise due the person. No amount shall may be set off from any
funds exempt under section 550.37 or funds due an individual who receives
assistance under chapter 256.
(b) All funds, whether general or dedicated, shall be are
subject to setoff.
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Regardless of any law to the contrary, the commissioner shall have
has first priority to setoff from any funds otherwise due from the
department to a delinquent person.
Subd. 4. Collection by civil
action. (a) Any amount due under this chapter or section 116L.20, from an applicant
or employer, may be collected by civil action in the name of the state of
Minnesota. Civil actions brought under this subdivision shall must
be heard as provided under section 16D.14. In any action, judgment shall
must be entered in default for the relief demanded in the complaint without
proof, together with costs and disbursements, upon the filing of an affidavit
of default.
(b) Any person that is not a resident of this state and any resident
person removed from this state, shall be is considered to appoint
the secretary of state as its agent for the acceptance of process in any civil
action. The commissioner shall file process with the secretary of state,
together with a payment of a fee of $15 and that service shall be is
considered sufficient service and shall have has the same force
and validity as if served personally within this state. Notice of the service
of process, together with a copy of the process, shall must be
sent by certified mail to the person's last known address. An affidavit of
compliance with this subdivision, and a copy of the notice of service shall
must be appended to the original of the process and filed in the court.
(c) No court filing fees, docketing fees, or release of judgment fees
may be assessed against the state for actions pursuant to under
this subdivision.
Subd. 5. Injunction forbidden.
No injunction or other legal action to prevent the determination, assessment,
or collection of any amounts due under this chapter or section 116L.20, from an
applicant or employer, shall be are allowed.
Sec. 42. Minnesota Statutes 2006, section 268.059, is amended to read:
268.059 GARNISHMENT FOR
DELINQUENT TAXES AND UNEMPLOYMENT BENEFIT OVERPAYMENTS.
Subdivision 1. Notice. The
commissioner may give notice to any employer that an employee owes any amounts
due under this chapter or section 116L.20, and that the obligation should be
withheld from the employee's wages. The commissioner may proceed only if the
amount due is uncontested or if the time for any appeal has expired. The
commissioner shall may not proceed until 30 calendar days after
sending to the debtor employee, by mail or electronic transmission, a notice of
intent to garnish wages and exemption notice. That notice shall must
list:
(1) the amount due from the debtor;
(2) demand for immediate payment; and
(3) the intention to serve a garnishment notice on the debtor's
employer.
The notice shall expire expires 180 calendar days after
it has been sent to the debtor provided that the notice may be renewed by sending
a new notice that is in accordance with this section. The renewed notice shall
have has the effect of reinstating the priority of the original
notice. The exemption notice shall must be in substantially the
same form as in section 571.72. The notice shall must inform the
debtor of the right to claim exemptions contained in section 550.37,
subdivision 14. If no claim of exemption is received by the commissioner within
30 calendar days after sending of the notice, the commissioner may proceed with
the garnishment. The notice to the debtor's employer may be served by mail or
electronic transmission and shall must be in substantially the
same form as in section 571.75.
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Subd. 2. Employer action.
(a) Upon receipt of the garnishment notice, the employer shall must
withhold from the earnings due or to become due to the employee, the amount
shown on the notice plus accrued interest, subject to section 571.922. The
employer shall must continue to withhold each pay period the
amount shown on the notice plus accrued interest until the garnishment notice
is released by the commissioner. Upon receipt of notice by the employer, the
claim of the commissioner shall have has priority over any subsequent
garnishments or wage assignments. The commissioner may arrange between the
employer and employee for withholding a portion of the total amount due the
employee each pay period, until the total amount shown on the notice plus
accrued interest has been withheld.
The "earnings due" any employee is as defined in section
571.921.
(b) The maximum garnishment allowed for any one pay period shall be
decreased by any amounts payable pursuant to under any other
garnishment action served prior to before the garnishment notice,
and any amounts covered by any irrevocable and previously effective assignment
of wages; the employer shall must give notice to the commissioner
of the amounts and the facts relating to the assignment within ten calendar days
after the service of the garnishment notice on the form provided by the
commissioner.
(c) Within ten calendar days after the expiration of the pay period,
the employer shall must remit to the commissioner, on a form and
in the manner prescribed by the commissioner, the amount withheld during each
pay period.
Subd. 3. Discharge or discipline
prohibited. (a) If the employee ceases to be employed by the employer
before the full amount set forth on the garnishment notice plus accrued
interest has been withheld, the employer shall must immediately
notify the commissioner in writing or by electronic transmission, as prescribed
by the commissioner, of the termination date of the employee and the total
amount withheld. No employer may discharge or discipline any employee because
the commissioner has proceeded under this section. If an employer discharges an
employee in violation of this section, the employee shall have has
the same remedy as provided in section 571.927, subdivision 2.
(b) This section shall apply applies if the employer is
the state of Minnesota or any political subdivision.
(c) The commissioner shall refund to the employee any excess amounts
withheld from the employee.
(d) An employer that fails or refuses to comply with this section shall
be is jointly and severally liable for the total amount due from the
employee. Any amount due from the employer under this paragraph may be
collected in the same manner as any other amounts due from an employer under
this chapter.
Sec. 43. Minnesota Statutes 2006, section 268.0625, subdivision 5, is
amended to read:
Subd. 5. Licensing authority;
duties. Upon request, the licensing authority shall must
provide the commissioner with a list of all licensees, including the name,
address, business name and address, Social Security number, and business
identification number. The commissioner may request a list of the licensees no
more than once each calendar year. Regardless of section 268.19, the
commissioner may release information necessary to accomplish this section.
Sec. 44. Minnesota Statutes 2006, section 268.064, is amended to read:
268.064 LIABILITY FOR DEBTS
UPON ACQUISITION.
Subdivision 1. Acquisition of
organization, trade, business, or assets. Any person who acquires all or
part of the organization, trade, business or assets from an employer, is
jointly and severally liable, in an amount not to exceed the reasonable value
of that part of the organization, trade, business or assets acquired, for any
amounts due
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and unpaid by the employer.
The amount of liability shall is, in addition, be a lien
against the property or assets acquired and shall be prior to is
before all other unrecorded liens. This section does not apply to sales in
the normal course of the employer's business.
Subd. 2. Reasonable value.
The commissioner, upon the commissioner's own motion or upon application of the
acquiring person, shall determine the reasonable value of the organization,
trade, business or assets acquired based on available information. The
determination shall be is final unless the acquiring person,
within 30 20 calendar days after being sent the determination by
mail or electronic transmission, files an appeal. Proceedings on the appeal shall
be are conducted in accordance with section 268.105.
Subd. 3. Statement of amount
due. Prior to Before the date of acquisition, the
commissioner shall must furnish the acquiring person with a
statement of the amounts due and unpaid under this chapter or section 116L.20
upon the request of the potential acquiring person and the release of the
obligor. No release is required after the date of acquisition.
Sec. 45. Minnesota Statutes 2006, section 268.065, subdivision 1, is
amended to read:
Subdivision 1. Subcontractors.
A contractor who contracts with any subcontractor shall must
guarantee the payment of all amounts that are due or become due from the
subcontractor with respect to taxable wages paid on the contract by:
(1) withholding sufficient money on the contract; or
(2) requiring the subcontractor to provide a sufficient bond
guaranteeing the payment of all amounts that may become due.
The contractor may make a request for verification that the
subcontractor has paid the taxes due 60 calendar days after the due date for
filing the wage detail report that includes the final wages paid for employment
performed under the contract. If the subcontractor has paid the amounts due for
the period covered by the contract, the commissioner may release the contractor
from its liability.
The words "contractor" and "subcontractor" include
individuals, partnerships, firms, or corporations, or other association of
persons engaged in the construction industry.
Sec. 46. Minnesota Statutes 2006, section 268.067, is amended to read:
268.067 COMPROMISE.
(a) The commissioner may compromise in whole or in part any action,
determination, or decision that affects only an employer and not an applicant,
and that has occurred during the prior 24 months. This paragraph may apply if
it is determined by a court of law, or a confession of judgment, that an
applicant, while employed, wrongfully took from the employer $500 or more in
money or property.
(b) The commissioner may at any time compromise any amount due from an
employer under this chapter or section 116L.20.
(c) Any compromise involving an amount over $2,500 shall must
be authorized by an attorney who is an employee of the department designated by
the commissioner for that purpose.
(d) Any compromise must be in the best interest of the state of
Minnesota.
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Sec. 47. Minnesota Statutes 2006, section 268.0675, is amended to read:
268.0675 NO ELECTION OF
REMEDY.
Use of any remedy under this chapter for the collection of any amount
due from an employer or an applicant shall does not constitute an
election of remedy to the exclusion of any other available remedy.
Sec. 48. Minnesota Statutes 2006, section 268.068, is amended to read:
268.068 NOTICE TO WORKERS.
Each employer shall must post and maintain printed
statements of an individual's right to apply for unemployment benefits in places
readily accessible to workers in the employer's service. The printed statements
shall must be supplied by the commissioner at no cost to an
employer.
Sec. 49. Minnesota Statutes 2006, section 268.069, subdivision 2, is
amended to read:
Subd. 2. Unemployment benefits
paid from state funds. Unemployment benefits are paid from state funds and shall
are not be considered paid from any special insurance plan, nor as
paid by an employer. An application for unemployment benefits shall
is not be considered a claim against an employer but shall be
is considered a request for unemployment benefits from the trust fund. The
commissioner has the responsibility for the proper payment of unemployment
benefits regardless of the level of interest or participation by an applicant
or an employer in any determination or appeal. An applicant's entitlement to
unemployment benefits shall must be determined based upon that
information available without regard to any common law burden of proof, and any
agreement between an applicant and an employer shall is not be
binding on the commissioner in determining an applicant's entitlement. There shall
be is no presumption of entitlement or nonentitlement to
unemployment benefits.
Sec. 50. Minnesota Statutes 2006, section 268.069, subdivision 3, is
amended to read:
Subd. 3. Common law. There shall
be is no equitable or common law denial or allowance of unemployment
benefits.
Sec. 51. Minnesota Statutes 2006, section 268.084, is amended to read:
268.084 PERSONAL
IDENTIFICATION NUMBER; PRESUMPTION.
(a) Each applicant shall must be issued a personal
identification number (PIN) for the purpose of filing continued biweekly
requests for unemployment benefits, accessing information, and engaging in
other transactions with the department.
(b) If a PIN assigned to an applicant is used in the filing of a
continued biweekly request for unemployment benefits under section 268.086 or
any other type of transaction, the applicant shall be is presumed
to have been the individual using that PIN and presumed to have received any
unemployment benefit payment issued. This presumption may be rebutted by a
preponderance of the evidence showing that the applicant assigned the PIN was
not the individual who used that PIN in the transaction.
(c) The commissioner shall notify each applicant of this section.
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Sec. 52. Minnesota Statutes 2006, section 268.085, subdivision 3a, is
amended to read:
Subd. 3a. Workers' compensation
and disability insurance offset. (a) An applicant is not eligible to
receive unemployment benefits for any week in which the applicant is receiving
or has received compensation for loss of wages equal to or in excess of the
applicant's weekly unemployment benefit amount under:
(1) the workers' compensation law of this state;
(2) the workers' compensation law of any other state or similar federal
law; or
(3) any insurance or trust fund paid in whole or in part by an
employer.
(b) This subdivision shall does not apply to an applicant
who has a claim pending for loss of wages under paragraph (a); however, before
unemployment benefits may be paid when a claim is pending, the issue of the
applicant being able to work, as required under subdivision 1, clause (2), shall
be is determined under section 268.101, subdivision 3. If the
applicant later receives compensation as a result of the pending claim, the
applicant is subject to the provisions of paragraph (a) and the unemployment
benefits paid shall be are subject to recoupment by the
commissioner to the extent that the compensation constitutes overpaid
unemployment benefits.
(c) If the amount of compensation described under paragraph (a) for any
week is less than the applicant's weekly unemployment benefit amount,
unemployment benefits requested for that week shall be are
reduced by the amount of that compensation payment.
Sec. 53. Minnesota Statutes 2006, section 268.085, subdivision 4, is
amended to read:
Subd. 4. Social Security
benefits. (a) Any applicant aged 62 or over shall be is
required to state when filing an application for unemployment benefits and when
filing continued biweekly requests for unemployment benefits whether
if the applicant is receiving, has filed for, or intends to file for, primary
Social Security old age benefits for any week during the benefit year.
There shall must be deducted from an applicant's weekly
unemployment benefit amount 50 percent of the weekly equivalent of the primary
Social Security old age benefit the applicant has received, has filed for, or
intends to file for, with respect to that week.
(b) An applicant who is receiving, has received, or has filed for
primary Social Security disability benefits
for any week during the
benefit year shall must be determined unable to work and
unavailable for suitable employment for that week, unless:
(1) the Social Security Administration approved the collecting of
primary Social Security disability benefits each month the applicant was
employed during the base period; or
(2) the applicant provides a statement from an appropriate health care
professional who is aware of the applicant's Social Security disability claim
and the basis for that claim, certifying that the applicant is able to work and
available for suitable employment.
If an applicant meets the requirements of clause (1) or (2), then there
shall must be deducted from the applicant's weekly unemployment
benefit amount 50 percent of the weekly equivalent of the primary Social
Security disability benefits the applicant is receiving, has received, or has
filed for, with respect to that week; provided, however, that if the Social
Security Administration determines that an individual is not entitled to
receive primary Social Security disability benefits for any week the applicant
has applied for those benefits, the 50 percent deduction shall does
not apply to that week.
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(c) Information from the
Social Security Administration shall be is considered conclusive,
absent specific evidence showing that the information was erroneous.
(d) If the computation of
the reduced unemployment benefits is not a whole dollar, it shall be
is rounded down to the next lower whole dollar.
(e) This subdivision does
not apply to Social Security survivor benefits.
Sec. 54. Minnesota Statutes
2006, section 268.085, subdivision 6, is amended to read:
Subd. 6. Receipt of back pay. (a) Back pay
received by an applicant with respect to any week occurring in the 104 weeks prior
to before the payment of the back pay shall must be
deducted from unemployment benefits paid for that week.
If the back pay is not paid
with respect to a specific period, the back pay shall must be
applied to the period immediately following the last day of employment.
(b) If the back pay is
reduced by the amount of unemployment benefits that have been paid, the amount
of back pay withheld shall must be:
(1) paid by the employer to
the trust fund within 30 calendar days and subject to the same collection
procedures that apply to past due taxes;
(2) applied to unemployment
benefit overpayments resulting from the payment of the back pay; and
(3) credited to the maximum
amount of unemployment benefits available to the applicant in a benefit year
that includes the weeks for which back pay was deducted.
(c) Unemployment benefits
paid the applicant shall must be removed from the computation of
the tax rate for taxpaying employers and removed from the reimbursable account
for nonprofit and government employers that have elected to be liable for
reimbursements in the calendar quarter the trust fund receives payment.
(d) Payments to the trust
fund under this subdivision shall be are considered as made by
the applicant.
Sec. 55. Minnesota Statutes 2006,
section 268.085, subdivision 7, is amended to read:
Subd. 7. School employees. (a) No wage credits
in any amount from any employment with any educational institution or
institutions earned in any capacity may be used for unemployment benefit
purposes for any week during the period between two successive academic years
or terms if:
(1) the applicant had
employment for any educational institution or institutions in the prior
academic year or term; and
(2) there is a reasonable
assurance that the applicant will have employment for any educational
institution or institutions in the following academic year or term, unless that
subsequent employment is substantially less favorable than the employment of
the prior academic year or term.
(b) Paragraph (a) shall
does not apply to an applicant who, at the end of the prior academic year
or term, had an agreement for a definite period of employment between academic
years or terms in other than an instructional, research, or principal
administrative capacity and the educational institution or institutions failed
to provide that employment.
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(c) If unemployment benefits
are denied to any applicant under paragraph (a) who was employed in the prior
academic year or term in other than an instructional, research, or principal
administrative capacity and who was not offered an opportunity to perform the
employment in the following academic year or term, the applicant shall be
is entitled to retroactive unemployment benefits for each week during the
period between academic years or terms that the applicant filed a timely
continued biweekly request for unemployment benefits, but unemployment benefits
were denied solely because of paragraph (a).
(d) An educational assistant
shall is not be considered to be in an instructional,
research, or principal administrative capacity.
(e) Paragraph (a) shall
apply applies to any vacation period or holiday recess if the
applicant was employed immediately before the vacation period or holiday
recess, and there is a reasonable assurance that the applicant will be employed
immediately following the vacation period or holiday recess.
(f) This subdivision shall
apply applies to employment with an educational service agency if
the applicant performed the services at an educational institution or
institutions. "Educational service agency" means a governmental
agency or entity established and operated exclusively for the purpose of
providing services to one or more educational institutions. This subdivision shall
also apply applies to employment with Minnesota or a political
subdivision, or a nonprofit organization, if the services are provided to or on
behalf of an educational institution or institutions.
(g) Paragraphs (a) and (e) shall
apply beginning the Sunday of the week that there is a reasonable assurance of
employment.
(h) Employment with multiple
education institutions shall must be aggregated for purposes of
application of this subdivision.
(i) If all of the
applicant's employment with any educational institution or institutions during
the prior academic year or term consisted of on-call employment, and the
applicant has a reasonable assurance of any on-call employment with any
educational institution or institutions for the following academic year or
term, it shall is not be considered substantially less
favorable employment.
(j) Paragraph (a) shall
also apply applies to the period between two regular but not
successive terms.
(k) A "reasonable
assurance" may be written, oral, implied, or established by custom or
practice.
(l) An "educational
institution" is an educational entity operated by Minnesota or a political
subdivision or an instrumentality thereof, or an educational organization described
in United States Code, title 26, section 501(c)(3) of the federal Internal
Revenue Code, and exempt from income tax under section 501(a).
Sec. 56. Minnesota Statutes
2006, section 268.085, subdivision 8, is amended to read:
Subd. 8. Services for school contractors. (a)
Wage credits from an employer are subject to subdivision 7, if:
(1) the employment was
provided pursuant to 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:
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(1) those wage credits were earned by an employee of a private employer
performing work pursuant to 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.
Sec. 57. Minnesota Statutes 2006, section 268.085, subdivision 11, is
amended to read:
Subd. 11. Athletes and coaches.
Unemployment benefits shall must not be paid to an applicant on
the basis of any wage credits from employment that consists of coaching or
participating in sports or athletic events or training or preparing to
participate for any week during the period between two successive sport
seasons, or similar periods, if:
(1) the applicant was so employed in the prior season or similar
period, and
(2) there is a reasonable assurance that the applicant will be so
employed in the following season or similar period.
Sec. 58. Minnesota Statutes 2006, section 268.085, subdivision 12, is
amended to read:
Subd. 12. Aliens. (a) An
alien shall be is ineligible for unemployment benefits for any
week the alien is not authorized to work in the United States under federal
law. Information from the Bureau of Citizenship and Immigration Services shall
be is considered conclusive, absent specific evidence that the
information was erroneous. Pursuant to Under the existing
agreement between the United States and Canada, this paragraph shall
does not apply to an applicant who is a Canadian citizen and has returned to
and is living in Canada each week unemployment benefits are requested.
(b) Unemployment benefits shall must not be paid on the
basis of wage credits earned by an alien unless the alien (1) was lawfully
admitted for permanent residence at the time of the employment, (2) was
lawfully present for the purposes of the employment, or (3) was permanently
residing in the United States under color of law at the time of the employment.
(c) Any information required of applicants applying for unemployment
benefits to determine eligibility because of their alien status shall
must be required from all applicants.
Sec. 59. Minnesota Statutes 2006, section 268.085, subdivision 13, is
amended to read:
Subd. 13. Suspension from
employment. (a) An applicant who has been suspended from employment without
pay for 30 calendar days or less, as a result of employment misconduct as
defined under section 268.095, subdivision 6, shall be is
ineligible for unemployment benefits beginning the Sunday of the week that the
applicant was suspended and continuing for the duration of the suspension.
(b) A suspension from employment without pay for more than 30 calendar
days shall be is considered a discharge from employment under
section 268.095, subdivision 5.
(c) A suspension from employment with pay, regardless of duration, shall
is not be considered a separation from employment and the applicant shall
be is ineligible for unemployment benefits for the duration of the
suspension with pay.
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Sec. 60. Minnesota Statutes
2006, section 268.085, subdivision 13a, is amended to read:
Subd. 13a. Leave of absence. (a) An applicant on a
voluntary leave of absence shall be is ineligible for
unemployment benefits for the duration of the leave of absence. An applicant on
an involuntary leave of absence shall is not be ineligible
under this subdivision.
A leave of absence is
voluntary when work that the applicant can then perform is available with the
applicant's employer but the applicant chooses not to work. A medical leave of
absence shall is not be presumed to be voluntary.
(b) A period of vacation
requested by the applicant, paid or unpaid, shall be is
considered a voluntary leave of absence. A vacation period assigned by an
employer under: (1) a uniform vacation shutdown; (2) a collective bargaining
agreement; or (3) an established employer policy, shall be is
considered an involuntary leave of absence.
(c) A voluntary leave of
absence shall is not be considered a quit and an
involuntary leave of absence shall is not be considered a
discharge from employment for purposes of section 268.095.
(d) An applicant who is on a
paid leave of absence, whether the leave of absence is voluntary or
involuntary, shall be is ineligible for unemployment benefits for
the duration of the leave.
(e) This subdivision shall
apply applies to a leave of absence from a base period employer, an
employer during the period between the end of the base period and the effective
date of the benefit account, or an employer during the benefit year.
Sec. 61. Minnesota Statutes
2006, section 268.085, subdivision 13b, is amended to read:
Subd. 13b. Labor dispute. (a) An applicant who has
stopped working because of a labor dispute at the establishment where the
applicant is employed shall be is ineligible for unemployment
benefits:
(1) until the end of the
calendar week that the labor dispute was in active progress if the applicant is
participating in or directly interested in the labor dispute; or
(2) until the end of the
calendar week that the labor dispute began if the applicant is not
participating in or directly interested in the labor dispute.
Participation includes any
failure or refusal by an applicant, voluntarily or involuntarily, to accept and
perform available and customary work at the establishment.
(b) An applicant who has
stopped working because of a jurisdictional controversy between two or more
labor organizations at the establishment where the applicant is employed shall
be is ineligible for unemployment benefits until the end of the
calendar week that the jurisdictional controversy was in progress.
(c) An applicant shall
is not be ineligible for unemployment benefits under this
subdivision if:
(1) the applicant stops
working because of an employer's intentional failure to observe the terms of
the safety and health section of a union contract or failure to comply with an
official citation for a violation of federal or state laws involving occupational
safety and health;
(2) the applicant stops
working because of a lockout; or
(3) the applicant is
discharged prior to before the beginning of a labor dispute.
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(d) A quit from employment
by the applicant during the time that the labor dispute is in active progress
at the establishment shall does not terminate the applicant's
participation in or direct interest in the labor dispute for purposes of this
subdivision.
(e) For the purpose of this
subdivision, the term "labor dispute" shall have has
the same definition as provided in section 179.01, subdivision 7.
Sec. 62. Minnesota Statutes
2006, section 268.085, subdivision 16, is amended to read:
Subd. 16. Actively seeking suitable employment
defined. (a) "Actively seeking suitable employment" means those
reasonable, diligent efforts an individual in similar circumstances would make
if genuinely interested in obtaining suitable employment under the existing
conditions in the labor market area. Limiting the search to positions that are
not available or are above the applicant's training, experience, and
qualifications is not "actively seeking suitable employment."
(b) To be considered
"actively seeking suitable employment" an applicant shall
must, when reasonable, contact those employers from whom the applicant was
laid off due to because of lack of work and request suitable
employment.
(c) If reasonable prospects
of suitable employment in the applicant's usual or customary occupation do not
exist, the applicant must actively seek other suitable employment to be
considered "actively seeking suitable employment." This applies to an
applicant who is seasonally unemployed.
(d) An applicant who is
seeking employment only through a union is not actively seeking suitable
employment unless the applicant is in an occupation where it is required by
union rule that all the hiring in that locality is done through the union or
that all members are restricted to obtaining employment among signatory
contractors in the construction industry. The applicant must be a union
member in good standing, registered with the union for employment, and in
compliance with other union rules to be considered "actively seeking
suitable employment."
Sec. 63. Minnesota Statutes
2006, section 268.086, subdivision 1, is amended to read:
Subdivision 1. Active benefit account. (a) A benefit
account shall be is considered active only when an applicant
files continued biweekly requests for unemployment benefits in the manner and
within the time periods prescribed. A benefit account shall be is
considered inactive if an applicant stops filing a continued biweekly request
or fails to file a continued biweekly request within the time period required.
The benefit account shall be is considered inactive as of the
Sunday following the last week or biweekly period for which a continued
biweekly request has been timely filed.
(b) A benefit account that
is inactive shall be is reactivated the Sunday of the week that
the applicant makes a contact with the department to do so, in the manner
prescribed by the commissioner for reactivating that applicant's benefit
account. Upon specific request of an applicant, a benefit account may be
reactivated effective up to two weeks prior to before the week
the applicant made contact with the department to reactivate.
Sec. 64. Minnesota Statutes
2006, section 268.086, subdivision 3, is amended to read:
Subd. 3. Methods for filing continued biweekly
requests for unemployment benefits. (a) The commissioner shall designate to
each applicant one of the following methods for filing a continued biweekly
request:
(1) by electronic
transmission under subdivision 5;
(2) by mail under
subdivision 6; or
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(3) by in-person interview under subdivision 7.
(b) The method designated by the commissioner shall be is
the only method allowed for filing a continued biweekly request by that
applicant. An applicant may ask that one of the other allowed methods be
designated and the commissioner shall consider inconvenience to the applicant
as well as administrative capacity in determining whether to allow an applicant
to change the designated method for filing a continued biweekly request for
unemployment benefits.
Sec. 65. Minnesota Statutes 2006, section 268.086, subdivision 5, is
amended to read:
Subd. 5. Continued biweekly
request for unemployment benefits by electronic transmission. (a) A
continued biweekly request for unemployment benefits by electronic transmission
shall must be filed to that electronic mail address or Internet
address prescribed by the commissioner for that applicant. In order to
constitute a continued biweekly request, all information asked for, including
information authenticating that the applicant is sending the transmission, must
be provided in the format required. If all of the information asked for is not
provided, the communication shall does not constitute a continued
biweekly request for unemployment benefits.
The electronic transmission communication must be filed on the date
required for the applicant for filing a continued biweekly request by
electronic transmission.
(b) If the electronic transmission continued biweekly request is not
filed on the date required, a continued biweekly request by electronic
transmission shall must be accepted if the applicant files the
continued biweekly request by electronic transmission within 14 days following
the week in which the date required occurred. If the continued biweekly request
by electronic transmission is not filed within 14 days following the week in
which the date required occurred, the electronic continued biweekly request shall
must not be accepted and the applicant shall be is ineligible
for unemployment benefits for the period covered by the continued biweekly
request and the benefit account shall be is considered inactive,
unless the applicant shows good cause for failing to file the continued
biweekly request by electronic transmission within the time period required.
Sec. 66. Minnesota Statutes 2006, section 268.086, subdivision 6, is
amended to read:
Subd. 6. Continued biweekly
request for unemployment benefits by mail. (a) A continued biweekly request
for unemployment benefits by mail shall must be on a form
prescribed by the commissioner. The form, in order to constitute a continued
biweekly request, must be totally completed and signed by the applicant.
The form must be filed on the date required for the applicant for
filing a continued biweekly request by mail, in an envelope with postage
prepaid thereon, and sent to the address required by the commissioner for that
applicant.
(b) If the mail continued biweekly request for unemployment benefits is
not filed on the date required, a continued biweekly request shall
must be accepted if the form is filed by mail within 14 days following the
week in which the date required occurred. If the form is not filed within 14
days following the week in which the date required occurred, the form shall
will not be accepted and the applicant shall be is ineligible
for unemployment benefits for the period covered by the continued biweekly
request for unemployment benefits and the benefit account shall be is
considered inactive, unless the applicant shows good cause for failing to file
the form by mail within the time period required.
(c) If the applicant has been designated to file a continued biweekly
request for unemployment benefits by mail, an applicant may submit the form by
facsimile transmission on the day otherwise required for mailing, or within 14
days following the week in which the date required occurred. A form submitted
by facsimile transmission shall must be sent only to the
telephone number assigned for that purpose.
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(d) An applicant who has
been designated to file a continued biweekly request by mail may personally
deliver a continued biweekly request form only to the location to which the
form was otherwise required to be mailed.
Sec. 67. Minnesota Statutes
2006, section 268.086, subdivision 8, is amended to read:
Subd. 8. Good cause. A continued biweekly
request for unemployment benefits that is not filed within the time periods
required by this section shall may be accepted only for those
weeks that the applicant has "good cause" for not filing within the
time periods required.
Sec. 68. Minnesota Statutes
2006, section 268.086, subdivision 9, is amended to read:
Subd. 9. Good cause defined. "Good
cause" for purposes of this section is a compelling substantial reason
that would have prevented a reasonable person acting with due diligence from
filing a continued biweekly request for unemployment benefits within the time
periods required.
"Good cause" shall
does not include forgetfulness, loss of the continued biweekly request
form, having returned to work, or inability to file a continued biweekly
request for unemployment benefits by the method designated if the applicant was
aware of the inability and did not make diligent effort to have the method of
filing a continued biweekly request changed by the commissioner. "Good
cause" shall does not include having previously made an
attempt to file a continued biweekly request for unemployment benefits but
where the communication was not considered a continued biweekly request because
the applicant failed to submit all required information.
Sec. 69. Minnesota Statutes
2006, section 268.087, is amended to read:
268.087 UNEMPLOYMENT BENEFITS DUE DECEASED PERSONS.
If unemployment benefits are
due and payable at the time of an applicant's death, those benefits may
must, upon application, be paid to the personal representative of the
estate of the deceased. In the event that no personal representative is
appointed, the unemployment benefits may must, upon application
be paid in the following order: (1) the surviving spouse, (2) the surviving
child or children, or (3) the surviving parent or parents.
An individual seeking
payment shall must complete an application prescribed by the
commissioner and the payment of unemployment benefits shall discharge
discharges the obligations to the applicant and no other individual shall
may claim or assert any right to those unemployment benefits.
Sec. 70. Minnesota Statutes
2006, section 268.095, subdivision 2, is amended to read:
Subd. 2. Quit defined. (a) A quit from
employment occurs when the decision to end the employment was, at the time the
employment ended, the employee's.
(b) An employee who has been
notified that the employee will be discharged in the future, who chooses to end
the employment while employment in any capacity is still available, shall be
is considered to have quit the employment.
(c) An employee who seeks to
withdraw a previously submitted notice of quitting shall be is
considered to have quit the employment if the employer does not agree that the
notice may be withdrawn.
(d) An applicant who, within
five calendar days after completion of a suitable temporary job assignment from
a staffing service employer, (1) fails without good cause to affirmatively
request an additional job assignment, or (2) refuses without good cause an
additional suitable job assignment offered, shall be is
considered to have quit employment.
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This paragraph shall
apply applies only if, at the time of beginning of employment with
the staffing service employer, the applicant signed and was provided a copy of
a separate document written in clear and concise language that informed the
applicant of this paragraph and that unemployment benefits may be affected.
For purposes of this paragraph, "good cause" shall be
is a reason that is significant and would compel an average, reasonable
worker, who would otherwise want an additional temporary job assignment with
the staffing service employer, (1) to fail to contact the staffing service
employer, or (2) to refuse an offered assignment.
For purposes of this paragraph, a "staffing service employer"
is an employer whose business involves employing individuals directly for the
purpose of furnishing temporary job assignment workers to clients of the
staffing service.
Sec. 71. Minnesota Statutes 2006, section 268.095, subdivision 3, is
amended to read:
Subd. 3. Good reason caused by
the employer defined. (a) A good reason caused by the employer for quitting
is a reason:
(1) that is directly related to the employment and for which the employer
is responsible;
(2) that is adverse to the worker; and
(3) that would compel an average, reasonable worker to quit and become
unemployed rather than remaining in the employment.
(b) The analysis required in paragraph (a) must be applied to the specific
facts of each case.
(c) If an applicant was subjected to adverse working conditions by the
employer, the applicant must complain to the employer and give the employer a
reasonable opportunity to correct the adverse working conditions before that
may be considered a good reason caused by the employer for quitting.
(d) A reason for quitting employment shall is not be
considered a good reason caused by the employer for quitting if the reason for
quitting occurred because of the applicant's employment misconduct.
(e) Notification of discharge in the future, including a layoff due
to because of lack of work, shall is not be
considered a good reason caused by the employer for quitting.
(f) An applicant has a good reason caused by the employer for quitting
if it results from sexual harassment of which the employer was aware, or should
have been aware, and the employer failed to take timely and appropriate action.
Sexual harassment means unwelcome sexual advances, requests for sexual favors,
sexually motivated physical contact or other conduct or communication of a
sexual nature when:
(1) the applicant's submission to the conduct or communication is made
a term or condition of the employment;
(2) the applicant's submission to or rejection of the conduct or
communication is the basis for decisions affecting employment; or
(3) the conduct or communication has the purpose or effect of
substantially interfering with an applicant's work performance or creating an
intimidating, hostile, or offensive working environment.
(g) The definition of a good reason caused by the employer for quitting
employment provided by this subdivision shall be is exclusive and
no other definition shall apply applies.
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Sec. 72. Minnesota Statutes
2006, section 268.095, subdivision 5, is amended to read:
Subd. 5. Discharge defined. (a) A discharge from
employment occurs when any words or actions by an employer would lead a
reasonable employee to believe that the employer will no longer allow the
employee to work for the employer in any capacity. A layoff due to
because of lack of work shall be is considered a discharge. A
suspension from employment without pay of more than 30 calendar days shall
be is considered a discharge.
(b) An employee who gives
notice of intention to quit the employment and is not allowed by the employer
to work the entire notice period shall be is considered discharged
from the employment as of the date the employer will no longer allow the
employee to work. If the discharge occurs within 30 calendar days prior to
before the intended date of quitting, then, as of the intended date of
quitting, the separation from employment shall be is considered a
quit from employment subject to subdivision 1.
Sec. 73. Minnesota Statutes
2006, section 268.095, subdivision 6a, is amended to read:
Subd. 6a. Aggravated employment misconduct defined.
(a) For the purpose of this section, "aggravated employment
misconduct" means:
(1) the commission of any
act, on the job or off the job, that would amount to a gross misdemeanor or
felony if the act substantially interfered with the employment or had a
significant adverse effect on the employment; or
(2) for an employee of a
facility as defined in section 626.5572, aggravated employment misconduct
includes an act of patient or resident abuse, financial exploitation, or
recurring or serious neglect, as defined in section 626.5572 and applicable
rules.
(b) If an applicant is
convicted of a gross misdemeanor or felony for the same act for which the
applicant was discharged, it is aggravated employment misconduct if the act
substantially interfered with the employment or had a significant adverse
effect on the employment.
(c) The definition of
aggravated employment misconduct provided by this subdivision shall be
is exclusive and no other definition shall apply applies.
Sec. 74. Minnesota Statutes
2006, section 268.095, subdivision 11, is amended to read:
Subd. 11. Application. (a) Section 268.085,
subdivision 13c, and this section shall apply applies to all
covered employment, full time or part time, temporary or of limited duration,
permanent or of indefinite duration, that occurred in Minnesota during the base
period, the period between the end of the base period and the effective date of
the benefit account, or the benefit year, except as provided for in subdivision
1, clause (5).
(b) Paragraph (a) shall
also apply applies to employment covered under an unemployment
insurance program of any other state or established by an act of Congress.
Sec. 75. Minnesota Statutes
2006, section 268.103, subdivision 1, is amended to read:
Subdivision 1. In commissioner's discretion. The
commissioner shall have the discretion to allow an appeal to be filed by
electronic transmission. If the commissioner allows an appeal to be filed by
electronic transmission, that shall must be clearly set out on
the determination or decision subject to appeal.
The commissioner may
restrict the manner, format, and conditions under which an appeal by electronic
transmission may be filed. Any restrictions as to days, hours, telephone
number, electronic address, or other conditions, shall must be
clearly set out on the determination or decision subject to appeal.
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All information requested by the commissioner when an appeal is filed by
electronic transmission must be supplied or the communication shall
does not constitute an appeal.
Sec. 76. Minnesota Statutes 2006, section 268.103, subdivision 2, is
amended to read:
Subd. 2. Applicant's appeal by
mail. (a) The commissioner must allow an applicant to file an appeal by
mail even if an appeal by electronic transmission is allowed.
(b) A written statement delivered or mailed to the department that
could reasonably be interpreted to mean that an involved applicant is in
disagreement with a specific determination or decision shall be is
considered an appeal. No specific words need be used for the written statement
to be considered an appeal.
Sec. 77. Minnesota Statutes 2006, section 268.105, subdivision 3, is
amended to read:
Subd. 3. Withdrawal of appeal.
(a) Any appeal that is pending before an unemployment law judge may be
withdrawn by the appealing person, or an authorized representative of that
person, upon filing of a notice of withdrawal.
(b) The appeal shall must, by order, be dismissed if a
notice of withdrawal is filed, unless an unemployment law judge directs that
further adjudication is required for a proper result.
(c) A notice of withdrawal may be filed by mail or by electronic
transmission.
Sec. 78. Minnesota Statutes 2006, section 268.105, subdivision 5, is
amended to read:
Subd. 5. Use of evidence; data
privacy. (a) All testimony at any evidentiary hearing conducted pursuant
to under subdivision 1 shall must be recorded. A copy
of any recorded testimony and exhibits offered or received into evidence at the
hearing shall must, upon request, be furnished to a party at no
cost during the time period for filing a request for reconsideration or while a
request for reconsideration is pending.
(b) Regardless of any provision of law to the contrary, if recorded
testimony and exhibits received into evidence at the evidentiary hearing are
not requested during the time period for filing a request for reconsideration,
or while a request for reconsideration is pending, that testimony and other
evidence shall may later be made available only pursuant to
under a district court order. A subpoena shall is not be
considered a district court order.
(c) Testimony obtained under subdivision 1, may not be used or
considered for any purpose, including impeachment, in any civil,
administrative, or contractual proceeding, except by a local, state, or federal
human rights agency with enforcement powers, unless the proceeding is initiated
by the department.
Sec. 79. Minnesota Statutes 2006, section 268.105, subdivision 6, is
amended to read:
Subd. 6. Representation; fees.
(a) In any proceeding under subdivision 1 or 2, an applicant or involved
employer may be represented by any agent.
(b) Except for services provided by an attorney-at-law, an applicant shall
may not be charged fees, costs, or disbursements of any kind in a
proceeding before an unemployment law judge, the Minnesota Court of Appeals, or
the Supreme Court of Minnesota.
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Sec. 80. Minnesota Statutes 2006, section 268.105, subdivision 7, is
amended to read:
Subd. 7. Judicial review.
(a) The Minnesota Court of Appeals shall, by writ of certiorari to the department,
review the unemployment law judge's decision, provided a petition for the writ
is filed with the court and a copy is served upon the unemployment law judge or
the commissioner and any other involved party within 30 calendar days of the
sending of the unemployment law judge's order under subdivision 2.
(b) Any employer petitioning for a writ of certiorari shall must
pay to the court the required filing fee and upon the service of the writ shall
must furnish a cost bond to the department in accordance with the Rules
of Civil Appellate Procedure. If the employer requests a written transcript of
the testimony received at the evidentiary hearing conducted pursuant to under
subdivision 1, the employer shall must pay to the department
the cost of preparing the transcript. That money shall be is credited
to the administration account.
(c) Upon issuance by the Minnesota Court of Appeals of a writ of
certiorari as a result of an applicant's petition, the department shall must
furnish to the applicant at no cost a written transcript of any testimony
received at the evidentiary hearing conducted pursuant to under subdivision
1, and, if requested, a copy of all exhibits entered into evidence. No filing
fee or cost bond shall be is required of an applicant petitioning
the Minnesota Court of Appeals for a writ of certiorari.
(d) The Minnesota Court of Appeals may affirm the decision of the
unemployment law judge or remand the case for further proceedings; or it may
reverse or modify the decision if the substantial rights of the petitioner may
have been prejudiced because the findings, inferences, conclusion, or decision
are:
(1) in violation of constitutional provisions;
(2) in excess of the statutory authority or jurisdiction of the
department;
(3) made upon unlawful procedure;
(4) affected by other error of law;
(5) unsupported by substantial evidence in view of the entire record as
submitted; or
(6) arbitrary or capricious.
(e) The department shall be is considered the primary responding
party to any judicial action involving an unemployment law judge's decision.
The department may be represented by an attorney who is an employee of the
department.
Sec. 81. Minnesota Statutes 2006, section 268.115, is amended to read:
268.115 EXTENDED
UNEMPLOYMENT BENEFITS.
Subdivision 1. Definitions.
The terms used in this section shall have the following meaning:
(1) "Extended unemployment benefit period" means a period
that lasts for a minimum of 13 weeks and that:
(i) Begins with the third week after there is a state "on"
indicator; and
(ii) Ends with the third week after there is a state "off"
indicator.
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No extended unemployment
benefit period may begin before the 14th week following the end of a prior
extended unemployment benefit period.
(2) There is a "state
'on' indicator" for a week if:
(i) for that week and the
prior 12 weeks, the rate of insured unemployment:
(a) equaled or exceeded 120
percent of the average of the rates for the corresponding 13-week period ending
in each of the prior two calendar years, and was five percent or more; or
(b) equaled or exceeded six
percent; or
(ii) The United States
Secretary of Labor determines that the average rate of seasonally adjusted
total unemployment in Minnesota for the most recent three months for which data
is published equals or exceeds 6.5 percent and this rate equals or exceeds 110
percent of the rate of the corresponding three-month period in either of the
prior two calendar years.
(3) There is a "state
'off' indicator" for a week if:
(i) under clause (2)(i), for
that week and the prior 12 weeks, the requirements for a "state 'on'
indicator" are not satisfied; or
(ii) under clause (2)(ii)
the requirements for a "state 'on' indicator" are not satisfied.
(4) "Rate of insured
unemployment," means the percentage derived by dividing the average weekly
number of applicants filing continued biweekly requests for regular
unemployment benefits in the most recent 13-week period by the average monthly
covered employment for the first four of the last six completed calendar
quarters before the end of that 13-week period.
(5) "Regular
unemployment benefits" means unemployment benefits available to an
applicant other than extended unemployment benefits and additional unemployment
benefits.
(6) "Eligibility
period" for an applicant means the period consisting of the weeks
remaining in the applicant's benefit year within the extended unemployment
benefit period and, if the benefit year ends within the extended unemployment
benefit period, any weeks in the extended unemployment benefit period.
(7) "Exhaustee"
means an applicant who, in the eligibility period:
(a) (i) the benefit year having not
expired has received the maximum amount of regular unemployment benefits that
were available under section 268.07; or
(b) (ii) the benefit year having
expired, has insufficient wage credits to establish a new benefit account; and
(c) has no right to any type of
unemployment benefits under the law of any other state or under
federal laws and is not receiving unemployment benefits under the law of
Canada.
Subd. 3. Requirements for extended unemployment
benefits. If an extended unemployment benefit period is in effect, an
applicant shall be is paid extended unemployment benefits from
the trust fund for any week in the applicant's eligibility period if the
applicant:
(1) is an
"exhaustee";
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(2) has satisfied the same requirements as those for regular
unemployment benefits under section 268.069;
(3) has wage credits of not less than 40 times the weekly unemployment
benefit amount; and
(4) is not subject to a denial of extended unemployment benefits under
subdivision 9.
Subd. 4. Weekly extended
unemployment benefit amount. The weekly extended unemployment benefit
amount shall be is the same as the weekly unemployment benefit
amount of regular unemployment benefits.
Subd. 5. Maximum amount of
extended unemployment benefits. The maximum amount of extended unemployment
benefits available to an applicant shall be is 50 percent of the
maximum amount of regular unemployment benefits available in the benefit year,
rounded down to the next lower whole dollar. If the total rate of unemployment
computed under subdivision 1, clause (2)(ii), equaled or exceeded eight
percent, the maximum amount of extended unemployment benefits available shall
be is 80 percent of the maximum amount of regular unemployment
benefits available in the benefit year.
Subd. 6. Public announcement.
Whenever an extended unemployment benefit period is to begin as a result of a
state "on" indicator, or an extended unemployment benefit period is
to end as a result of a state "off" indicator the commissioner shall
make an appropriate public announcement.
Subd. 7. Federal law. This
section is enacted to conform to the requirements of United States Code, title
26, section 3304, the Federal-State Extended Unemployment Compensation Act of
1970 as amended and the applicable federal regulations.
Subd. 8. Interstate applicants.
An applicant residing in a state other than Minnesota shall be eligible for
only the first two weeks of extended unemployment benefits if the applicant's
benefit account was established pursuant to under the interstate
benefit payment plan and no extended unemployment benefit period is in effect
for the week in that state.
Subd. 9. Denial provisions.
(a) An applicant shall be is denied extended unemployment
benefits for any week in the applicant's eligibility period if during that week
the applicant failed to accept any offer of suitable employment, failed to
apply for any suitable employment that the applicant was referred to by the
commissioner, or failed to actively seek suitable employment.
The denial shall continue continues until the applicant
has been employed in covered employment in each of four subsequent weeks, whether
or not consecutive, and had earnings from that covered employment of not less
than four times the applicant's weekly unemployment benefit amount.
(b) For the purpose of this subdivision "suitable employment"
means any employment that is within the applicant's capabilities and that has a
gross average weekly wage that exceeds the applicant's weekly unemployment
benefit amount. The employment must pay wages not less than the higher of the
federal minimum wage without regard to any exemption, or the applicable state
minimum wage.
(c) No applicant shall may be denied extended
unemployment benefits for failure to accept an offer of or apply for any
suitable employment if:
(1) the position was not offered to the applicant in writing;
(2) the position was not listed with the job service; or
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(3) the applicant furnishes
satisfactory evidence that prospects for obtaining employment in the
applicant's customary occupation within a reasonably short period are good. If
the evidence is satisfactory, the determination of whether any employment is
suitable shall be is made in accordance with the definition of
suitable employment in section 268.035, subdivision 23a.
(d) For the purpose of this
subdivision an applicant is "actively seeking suitable employment"
only if the applicant has engaged in a systematic and sustained effort to
obtain employment, and the applicant furnishes tangible evidence of that
effort.
Subd. 10. Job service referral. The job service shall
must refer any applicant who is filing continued biweekly requests for
extended unemployment benefits to any employment that is suitable under
subdivision 9.
Sec. 82. Minnesota Statutes
2006, section 268.125, subdivision 4, is amended to read:
Subd. 4. Weekly unemployment benefit amount. An
applicant's weekly additional unemployment benefit amount shall be is
the same as the applicant's weekly unemployment benefit amount during the
current benefit year under section 268.07.
Sec. 83. Minnesota Statutes
2006, section 268.125, subdivision 5, is amended to read:
Subd. 5. Maximum amount of unemployment benefits.
The maximum amount of additional unemployment benefits available in the
applicant's benefit year shall be is one-half of the applicant's
maximum amount of regular unemployment benefits available under section 268.07,
subdivision 2, rounded down to the next lower whole dollar. Extended
unemployment benefits paid and unemployment benefits paid under any federal law
other than regular unemployment benefits shall must be deducted
from the maximum amount of additional unemployment benefits available.
Sec. 84. Minnesota Statutes
2006, section 268.135, is amended to read:
268.135 SHARED WORK PLAN.
Subdivision 1. Definitions. For purposes of this
section:
(1) "Affected
employee" means an employee who was continuously employed as a member of
the affected group, for at least six months, on a full-time basis, prior to
before submission of the shared work plan.
(2) "Affected
group" means five or more employees designated by the employer to
participate in a shared work plan.
(3) "Shared work
plan" or "plan" means an employer's plan, submitted in a manner
and format prescribed by the commissioner, under which a group of employees
whose normal weekly hours of work are reduced, in order to prevent employees
from being laid off due to because of lack of work.
(4) "Normal weekly
hours of work" means the number of hours in a week that the employee
normally would work for the shared work employer or 40 hours, whichever is
less.
Subd. 2. Participation. (a) An employer wishing
to participate in the shared work benefit program shall must submit
a shared work plan to the commissioner in a manner and format prescribed for
approval. The commissioner may approve a shared work plan only if it:
(1) specifies the employees
in the affected group;
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(2) applies to only one affected group;
(3) includes a certified statement by the employer that each employee
specified in the affected group is an affected employee;
(4) includes a certified statement by the employer that for the duration
of the plan the reduction in normal weekly hours of work of the employees in
the affected group is instead of layoffs that otherwise would result in at
least as large a reduction in the total normal weekly hours of work;
(5) specifies an expiration date that is no more than one year from the
date the employer submits the plan for approval;
(6) specifies that fringe benefits, such as health and retirement,
available to the employees in the affected group are not reduced beyond the
percentage of reduction in hours of work; and
(7) is approved in writing by the collective bargaining agent for each
collective bargaining agreement that covers any employee in the affected group.
(b) The commissioner shall set the beginning and ending dates of an
approved shared work plan.
(c) The commissioner shall send to the employer a determination, by
mail or electronic transmission, approving or disapproving the plan within 15
calendar days of its receipt. Determinations are final.
(d) Disapproval of a plan may be reconsidered at the discretion of the
commissioner. Approval of a shared work plan may be revoked if the approval was
based, in whole or in part, upon information that was false or misleading.
Subd. 3. Eligibility. (a)
Regardless of any other provision, an applicant is eligible to receive shared
work benefits with respect to any week if:
(1) during the week the applicant is employed as a member of an
affected group in a plan that was approved prior to before the
week and is in effect for the week; and
(2) during the week the normal weekly hours of work were reduced, in
accordance with the plan, at least 20 percent but not more than 40 percent,
with a corresponding reduction in wages.
(b) Shared work benefits shall may not be paid to an
applicant beyond one benefit year.
(c) The total amount of regular unemployment benefits and shared work
benefits paid to an applicant in a benefit year shall may not
exceed the maximum amount of regular unemployment benefits available.
(d) An otherwise eligible applicant shall may not be
denied shared work benefits because of the application of any provision
relating to availability for employment, active search for employment, or
refusal to apply for or accept suitable employment from other than the
applicant's shared work employer.
Subd. 4. Weekly benefit amount.
(a) An applicant who is eligible for shared work benefits shall be
is paid an amount equal to the regular weekly unemployment benefit amount
multiplied by the nearest full percentage of reduction of the applicant's
regular weekly hours of work as set in the plan. The benefit payment, if not a
whole dollar shall must be rounded down to the next lower whole
dollar.
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(b) The deductible earnings provisions of section 268.085, subdivision
5, shall must not apply to earnings from the shared work employer
of an applicant eligible for shared work benefits unless the resulting amount
would be less than the regular weekly unemployment benefit amount the applicant
would otherwise be eligible for without regard to shared work benefits.
(c) An applicant shall is not be eligible for
shared work benefits for any week that employment is performed for the shared
work employer in excess of the reduced hours set forth in the plan.
Sec. 85. Minnesota Statutes 2006, section 268.145, subdivision 1, is
amended to read:
Subdivision 1. Notification.
(a) Upon filing an application for unemployment benefits, the applicant shall
must be informed that:
(1) unemployment benefits are subject to federal and state income tax;
(2) there are requirements for filing estimated tax payments;
(3) the applicant may elect to have federal income tax withheld from
unemployment benefits;
(4) if the applicant elects to have federal income tax withheld, the
applicant may, in addition, elect to have Minnesota state income tax withheld;
and
(5) at any time during the benefit year the applicant may change a
prior election.
(b) If an applicant elects to have federal income tax withheld, the
commissioner shall deduct ten percent for federal income tax, rounded down to
the next lower whole dollar. If an applicant also elects to have Minnesota
state income tax withheld, the commissioner shall make an additional five
percent deduction for state income tax, rounded down to the next lower whole
dollar. Any amounts deducted or offset pursuant to under sections
268.155, 268.18, and 268.184 have priority over any amounts deducted under this
section. Federal income tax withholding has priority over state income tax
withholding.
(c) An election to have income tax withheld shall may not
be retroactive and shall only apply applies to
unemployment benefits paid after the election.
Sec. 86. Minnesota Statutes 2006, section 268.145, subdivision 2, is
amended to read:
Subd. 2. Transfer of funds.
The amount of any unemployment benefits deducted under this section shall
remain remains in the trust fund until transferred to the federal
Internal Revenue Service, or the Department of Revenue, as an income tax
payment on behalf of the applicant.
Sec. 87. Minnesota Statutes 2006, section 268.145, subdivision 3, is
amended to read:
Subd. 3. Correction of errors.
Any error that resulted in underwithholding or overwithholding under this
section shall will not be corrected retroactively.
Sec. 88. Minnesota Statutes 2006, section 268.155, is amended to read:
268.155 CHILD SUPPORT
DEDUCTED FROM UNEMPLOYMENT BENEFITS.
Subdivision 1. Definitions.
As used in this section:
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(1) "Child support
obligations" means obligations that are being enforced by a child support
agency pursuant to in accordance with a plan described in United
States Code, title 42, section 454, of the Social Security Act that has been
approved by the secretary of health and human services under part D of title IV
of the Social Security Act. This shall does not include any type
of spousal maintenance or foster care payments; and
(2) "Child support
agency" means the public agency responsible for child support enforcement.
Subd. 2. Notice upon application. In an
application for unemployment benefits, the applicant shall must
disclose if child support obligations are owed and, if so, in what state and
county. If child support obligations are owed, the commissioner shall, if the
applicant establishes a benefit account, notify the child support agency.
Subd. 3. Withholding of unemployment benefits.
The commissioner shall deduct and withhold from any unemployment benefits
payable to an applicant who owes child support obligations:
(1) the amount required pursuant
to under a proper order of a court or administrative agency; or
(2) if clause (1) is not
applicable, the amount determined pursuant to under an agreement
under United States Code, title 42, section 454 (20) (B) (i), of the Social
Security Act; or
(3) if clause (1) or (2) is
not applicable, the amount specified by the applicant.
Subd. 4. Payment. Any amount deducted and
withheld shall must be paid to the child support agency, but shall
will for all purposes be treated as if it were paid to the applicant as
unemployment benefits and paid by the applicant to the child support agency in
satisfaction of the applicant's child support obligations.
Subd. 5. Payment of costs. The child support
agency shall must pay the costs incurred by the commissioner in
the implementation and administration of this section and sections 518A.50 and
518A.53.
Sec. 89. Minnesota Statutes
2006, section 268.18, subdivision 5, is amended to read:
Subd. 5. Remedies. (a) Any method undertaken to
recover an overpayment of unemployment benefits, including any penalties and
interest, shall is not be considered an election of a
method of recovery.
(b) Intervention or lack
thereof, in whole or in part, in a workers' compensation matter under section
176.361 shall is not be considered an election of a remedy
and shall does not prevent the commissioner from determining any
unemployment benefits overpaid under subdivision 1 or 2 or taking action under
section 268.182.
Sec. 90. Minnesota Statutes
2006, section 268.18, subdivision 6, is amended to read:
Subd. 6. Collection of overpayments. (a) The
commissioner may not compromise the amount that has been determined overpaid
under this section including penalties and interest.
(b) The commissioner shall
have has discretion regarding the recovery of any overpayment under
subdivision 1. Regardless of any law to the contrary, the commissioner shall
is not be required to refer any amount determined overpaid under
subdivision 1 to a public or private collection agency, including agencies of
this state.
(c) Amounts determined
overpaid under subdivision 1 shall are not be considered a
"debt" to the state of Minnesota for purposes of any reporting
requirements to the commissioner of finance.
(d) A pending appeal under
section 268.105 shall does not suspend the assessment of
interest, penalties, or collection of an overpayment under this section.
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(e) Section 16A.626 applies
to the repayment by an applicant of any overpayment, penalty, or interest under
this section.
Sec. 91. Minnesota Statutes
2006, section 268.182, subdivision 1, is amended to read:
Subdivision 1. Criminal penalties. Whoever obtains, or
attempts to obtain, or aids or abets any individual to obtain by means of an
intentional false statement or representation, by intentional concealment of a
material fact, or by impersonation or other fraudulent means, unemployment
benefits that the individual is not entitled or unemployment benefits greater
than the individual is entitled under this chapter, or under the law of any state
or of the federal government, either personally or for any other individual, is
guilty of theft and shall must be sentenced pursuant to under
section 609.52.
Sec. 92. Minnesota Statutes
2006, section 268.186, is amended to read:
268.186 RECORDS; AUDITS.
(a) Each employer shall
must keep true and accurate records for the periods of time and
containing the information the commissioner may require by rule. For the
purpose of administering this chapter, the commissioner has the power to audit,
examine, or cause to be supplied or copied, any books, correspondence, papers,
records, or memoranda that are relevant, whether the books, correspondence,
papers, records, or memoranda are the property of or in the possession of the
employer or any other person at any reasonable time and as often as may be
necessary.
(b) Any employer that
refuses to allow an audit of its records by the department, or that fails to
make all necessary records available for audit in Minnesota upon request of the
commissioner, may be assessed an administrative penalty of $500. The penalty
collected shall be is credited to the administration account to
be used by the commissioner to ensure integrity in the administration of the
unemployment insurance program.
(c) The commissioner may make
summaries, compilations, photographs, duplications, or reproductions of any
records, or reports that the commissioner considers advisable for the
preservation of the information contained therein. Any summaries, compilations,
photographs, duplications, or reproductions shall be is admissible
in any proceeding under this chapter. The commissioner may duplicate records,
reports, summaries, compilations, instructions, determinations, or any other
written or recorded matter pertaining to the administration of this chapter.
(d) Regardless of any law to
the contrary, the commissioner may provide for the destruction of any records,
reports, or reproductions thereof, or other papers that are no longer
necessary for the administration of this chapter, including any required audit.
In addition, the commissioner may provide for the destruction or disposition of
any record, report, or other paper from which the information has been
electronically captured and stored, or that has been photographed, duplicated,
or reproduced.
Sec. 93. Minnesota Statutes
2006, section 268.19, subdivision 1a, is amended to read:
Subd. 1a. Wage detail data. (a) Wage and
employment data gathered pursuant to under section 268.044 may be
disseminated to and used, without the consent of the subject of the data, by an
agency of another state that is designated as the performance accountability
and consumer information agency for that state pursuant to under
Code of Federal Regulations, volume 20, part 663.510(c), in order to carry out
the requirements of the Workforce Investment Act of 1998, United States Code,
title 29, sections 2842 and 2871.
(b) The commissioner may enter into a data exchange agreement with an
employment and training service provider under section 116L.17, or the
Workforce Investment Act of 1998, United States Code, title 29, section 2864,
under which the commissioner, with the consent of the subject of the data, may
furnish data on the quarterly wages paid and number of hours worked on those
individuals who have received employment and training services
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from the provider. With the
initial consent of the subject of the data, this data may be shared for up to
three years after termination of the employment and training services provided
to the individual without execution of an additional consent. This data shall
be is furnished solely for the purpose of evaluating the employment
and training services provided. The data subject's ability to receive service
is not affected by a refusal to give consent under this paragraph. The consent
form must state this fact.
Sec. 94. Minnesota Statutes 2006, section 268.19, subdivision 2, is
amended to read:
Subd. 2. Employer information;
absolute privilege. (a) Regardless of any provision of law to the contrary,
an employer may provide the commissioner with information on an applicant so
that the commissioner can determine an applicant's entitlement to unemployment
benefits under the Minnesota Unemployment Insurance Law.
(b) The commissioner may disseminate an employer's name and address and
the name and address of any employer's unemployment insurance processing agent
in order to administer the Minnesota unemployment insurance program.
(c) Information obtained pursuant to under the Minnesota
Unemployment Insurance Law, in order to determine an applicant's entitlement to
unemployment benefits, shall be are absolutely privileged and shall
may not be made the subject matter or the basis for any civil proceeding,
administrative, or judicial.
Sec. 95. Minnesota Statutes 2006, section 268.192, is amended to read:
268.192 PROTECTION OF
RIGHTS.
Subdivision 1. Waiver of rights
void. Any agreement by an individual to waive, release, or commute rights
to unemployment benefits or any other rights under the Minnesota Unemployment
Insurance Law shall be is void. Any agreement by an employee to
pay all or any portion of an employer's taxes, shall be is void.
No employer shall may directly or indirectly make or require or
accept any deduction from wages to pay the employer's taxes, require or accept
any waiver of any right or in any manner obstruct or impede an application or
continued biweekly request for unemployment benefits. Any employer or officer
or agent of any employer who violates any portion of this subdivision shall
is, for each offense, be guilty of a misdemeanor.
Subd. 2. No assignment of
unemployment benefits; exemptions. Any assignment, pledge, or encumbrance
of unemployment benefits shall be is void. Unemployment benefits shall
be are exempt from levy, execution, attachment, or any other remedy
provided for the collection of debt. Any waiver of this subdivision shall be
is void.
Sec. 96. Minnesota Statutes 2006, section 268.194, subdivision 4, is
amended to read:
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 under section 268.131.
Money received pursuant to under a reciprocal agreement shall
must be placed directly in the unemployment benefit payment account of
the trust fund.
Sec. 97. Minnesota Statutes 2006, section 268.194, subdivision 5, is
amended to read:
Subd. 5. Reed Act money. (a)
Money credited to the account of Minnesota in the federal unemployment trust
fund pursuant to under 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 according 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.
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(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 under the Reed Act exceeds the
aggregate of the amounts used pursuant to under 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
are 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 must be returned for credit to
Minnesota's account in the federal unemployment trust fund.
Sec. 98. Minnesota Statutes 2006, section 268.194, subdivision 6, is
amended to read:
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 must 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 is paid in
accordance with section 268.051, subdivision 8, paragraph (b).
Sec. 99. Minnesota Statutes 2006, section 268.20, is amended to read:
268.20 REPRESENTATION IN
COURT.
In any civil action to enforce the provisions of the Minnesota
Unemployment Insurance Law, the commissioner shall may be
represented by the attorney general.
Sec. 100. Minnesota Statutes 2006, section 268.21, is amended to read:
268.21 NONLIABILITY OF
STATE.
(a) Unemployment benefits shall be are payable only to
the extent provided in this chapter and to the extent that money is available
in the trust fund and neither the state nor the commissioner shall be
is liable for any amount in excess of the money available in the trust
fund.
(b) No person shall may make any demand, bring any suit,
or other proceeding to recover from the state or the commissioner any sum
alleged to be due on a benefit account after the expiration of two years from
the effective date of the benefit account.
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Sec. 101. Minnesota Statutes
2006, section 268.22, is amended to read:
268.22 SAVING CLAUSE.
The legislature reserves the
right to amend or repeal all or any part of the Minnesota Unemployment
Insurance Law at any time; and there shall be is no vested
private right of any kind against such amendment or repeal. All the
rights, privileges, or immunities conferred thereby, or by
acts done pursuant thereto, shall exist subject to the power of the
legislature to amend or repeal these sections at any time.
Sec. 102. Minnesota Statutes
2006, section 268.23, is amended to read:
268.23 SEVERABLE.
In the event that the United
States Department of Labor determines that any provision of the Minnesota
Unemployment Insurance Law, or any other provision of Minnesota Statutes
relating to the unemployment insurance program, is not in conformity with the
requirements of federal law, the provision shall have has no
force or effect; but if only a portion of the provision, or the application to
any person or circumstances, is held not in conformity, the remainder of the
provision and the application of the provision to other persons or
circumstances shall are not be affected.
Sec. 103. EFFECTIVE DATE.
Sections 1 to 102 are
effective September 30, 2007.
ARTICLE 7
EXTRA BENEFITS
Section 1. LUMBER COMPANY EXTRA BENEFITS.
Subdivision 1. Extra benefits; availability. Extra unemployment benefits
are available to an applicant if the applicant was laid off due to lack of work
after April 1, 2006, from the Ainsworth Lumber Company plants in Bemidji, Cook,
and Grand Rapids, and established a benefit account under Minnesota Statutes,
section 268.07, prior to March 1, 2007.
Subd. 2. Payment from fund; effect on employer. Extra unemployment
benefits are payable from the unemployment insurance trust fund. Extra
unemployment benefits paid under this section will be used in computing the
experience rating of Ainsworth Lumber Company under Minnesota Statutes, section
268.047.
Subd. 3. Eligibility conditions. An applicant is eligible to
receive extra unemployment benefits under this section for any week through
December 31, 2007, following the effective date of the applicant's benefit
account of regular unemployment benefits, as a result of a layoff described
under subdivision 1, if:
(1) a majority of the
applicant's wage credits were with Ainsworth Lumber Company or Ainsworth
Engineered;
(2) the applicant meets the
eligibility requirements of Minnesota Statutes, section 268.085;
(3) the applicant is not
subject to a disqualification under Minnesota Statutes, section 268.095;
(4) the applicant is not
entitled to regular unemployment benefits and the applicant is not entitled to
receive unemployment benefits under any other state or federal law for that
week; and
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(5) the applicant is
enrolled in, or has within the last two weeks successfully completed, a program
that qualifies as reemployment assistance training under Minnesota Statutes,
section 268.035, subdivision 21a, except that an applicant whose training is
scheduled to begin in more than 30 days may be considered to be in training if:
(i) the applicant's chosen training program does not offer an available start
date within 30 days; (ii) the applicant is scheduled to begin training on the
earliest available start date for the chosen training program; and (iii) the
applicant is scheduled to begin training in no more than 60 days.
Subd. 4. Weekly amount of extra benefits. The weekly extra
unemployment benefits amount available to an applicant is the same as the
applicant's weekly regular unemployment benefit amount on the benefit account
established as a result of a layoff under subdivision 1.
Subd. 5. Maximum amount of extra unemployment benefits. (a) The
maximum amount of extra unemployment benefits available is equal to 13 weeks at
the applicant's weekly extra unemployment benefits amount.
(b) If an applicant
qualifies for a new regular benefit account under Minnesota Statutes, section
268.07, at any time after exhausting regular unemployment benefits as a result
of the layoff under subdivision 1, the applicant must apply for and exhaust
entitlement to those new regular unemployment benefits. The maximum amount of
extra unemployment benefits available is reduced by any new regular
unemployment benefits available if the majority of wage credits on that new
regular benefit account were with Ainsworth Lumber Company or Ainsworth
Engineered.
Subd. 6. Program expiration. This extra unemployment benefit
program expires on December 31, 2007. No extra unemployment benefits may be
paid for any week after the expiration of this program.
Subd. 7. Findings. The legislature finds that providing extra
unemployment benefits to assist laid-off workers of Ainsworth Lumber Company,
while in training, is appropriate because:
(1) the unemployment rate in
the applicant's county of employment is higher than the statewide average rate
of unemployment;
(2) the average weekly wages
paid in the applicant's county of employment is below the statewide average
weekly wage;
(3) the applicant's weekly
wage is higher than the statewide average weekly wage; and
(4) the dislocated worker
program has determined that the applicant does not currently possess skills
making reemployment in a comparable position likely.
Sec. 2. EFFECTIVE DATE.
Section 1 is effective the
first Sunday following final enactment.
ARTICLE 8
EXTRA BENEFITS
Section 1. ELIGIBILITY EXCEPTION; EXTRA BENEFITS.
Subdivision 1. Conditions. Notwithstanding the requirements of Minnesota
Statutes, section 268.07 or 268.086, the commissioner of employment and
economic development shall pay unemployment benefits under subdivision 2 to an
applicant who:
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(1) was employed as a
technician or inspector for Northwest Airlines, Inc. prior to August 20, 2005;
(2) stopped working on or
about August 20, 2005, due to a labor dispute between the Aircraft Mechanics
Fraternal Association (AMFA) and Northwest Airlines, Inc.;
(3) established or was
eligible to establish an unemployment benefit account with the Department of
Employment and Economic Development as a result of the labor dispute; and
(4) meets all the ongoing
eligibility requirements of Minnesota Statutes, section 268.085, exclusive of
the requirements to file an application for benefits and timely file continued
biweekly requests for benefits under Minnesota Statutes, section 268.086.
Subd. 2. Benefits. If an applicant meets the requirements of
subdivision 1, the commissioner shall pay the applicant benefits for any
periods of unemployment during the applicant's benefit year after August 20,
2005, in the same amount as if the applicant had filed an application for
benefits and had continued to file biweekly requests for benefits as required
by law. If an applicant has not yet filed an application for benefits, the
applicant shall submit an application prior to receiving benefits under this
subdivision.
Subd. 3. Extra benefits. (a) Extra unemployment benefits are
available to an applicant described under subdivision 1 if the applicant has
exhausted regular benefits paid under subdivision 2.
(b) The maximum amount of
extra unemployment benefits available is 26 times the applicant's weekly extra
unemployment benefits amount. The weekly extra unemployment benefits amount
available to an applicant is the same as the applicant's weekly regular
unemployment benefit amount on the benefit account established as a result of
the labor dispute under subdivision 1.
(c) An applicant is eligible
to receive extra unemployment benefits under this subdivision for any week prior
to December 31, 2007.
(d) If an applicant
qualifies for a new regular benefit account at any time after exhausting
regular unemployment benefits as a result of the labor dispute described in
subdivision 1, the applicant must apply for and exhaust entitlement to those
new regular unemployment benefits.
Subd. 4. Payment from fund; effect on employer. Extra unemployment
benefits authorized by this section are payable from the unemployment insurance
trust fund. Extra benefits paid under this section must not be used in
computing the experience rating of Northwest Airlines, Inc. under Minnesota
Statutes, section 268.047.
EFFECTIVE DATE. This section is
effective the day following final enactment and applies retroactively from
August 20, 2005."
Delete the title and insert:
"A bill for an act
relating to unemployment insurance; making various policy, housekeeping, and
style changes to the Minnesota Unemployment Insurance Law; incorporating
certain administrative rules into Minnesota Statutes; modifying fraud
penalties; providing extra benefits for certain workers laid off from Ainsworth
Lumber Company and Northwest Airlines; amending Minnesota Statutes 2006,
sections 268.001; 268.03, subdivisions 1, 2; 268.035, subdivisions 1, 4, 9, 10,
11, 12, 13, 14, 15, 17, 20, 21a, 23, 23a, 24, 26, 29, 30, by adding a
subdivision; 268.042, subdivisions 1, 3, 4; 268.043; 268.0435; 268.044,
subdivisions 1, 1a, 2, 3, 4; 268.045, subdivision 1; 268.046; 268.047,
subdivisions 1, 2, 3, 5; 268.051, subdivisions 1, 1a, 2, 3, 4, 4a, 5, 6, 7, 8,
9; 268.052, subdivisions 1, 2, 3, 4, 5; 268.0525; 268.053, subdivisions 1, 2,
3; 268.057, subdivisions 1, 2, 3, 4, 5, 6, 7, 10; 268.058; 268.059; 268.0625,
subdivisions 4, 5; 268.063; 268.064; 268.065, subdivisions 1, 3; 268.066; 268.067;
268.0675; 268.068; 268.069,
Journal of the House - 44th
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subdivisions 1, 2, 3;
268.07, subdivisions 1, 2, 3a, 3b; 268.084; 268.085, subdivisions 1, 2, 3, 3a,
4, 5, 6, 7, 8, 9, 11, 12, 13, 13a, 13b, 13c, 16; 268.086, subdivisions 1, 2, 3,
5, 6, 7, 8, 9; 268.087; 268.095, subdivisions 1, 2, 3, 4, 5, 6, 6a, 7, 10, 11;
268.101; 268.103, subdivisions 1, 2; 268.105, subdivisions 1, 2, 3, 3a, 4, 5,
6, 7; 268.115; 268.125, subdivisions 3, 4, 5; 268.131, subdivision 1; 268.135;
268.145, subdivisions 1, 2, 3; 268.155; 268.18, subdivisions 1, 2, 2b, 4, 5, 6;
268.182, subdivisions 1, 2; 268.184, subdivisions 1, 1a; 268.186; 268.188; 268.19,
subdivisions 1, 1a, 2; 268.192; 268.194, subdivisions 1, 2, 3, 4, 5, 6;
268.196, subdivisions 1, 3; 268.20; 268.21; 268.22; 268.23; proposing coding
for new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes
2006, sections 268.0435; 268.0511; 268.085, subdivision 10; 268.103,
subdivision 4; Minnesota Rules, parts 3315.0210; 3315.0220; 3315.0515;
3315.0520; 3315.0525; 3315.0530, subparts 2, 3, 4, 5, 6; 3315.0540; 3315.0550;
3315.0910, subparts 1, 2, 3, 4, 5, 6, 7, 8; 3315.1005, subparts 1, 3;
3315.1315, subpart 4; 3315.2010; 3315.2810, subparts 2, 4."