STATE OF MINNESOTA
EIGHTY-FIFTH SESSION - 2007
_____________________
SEVENTY-FOURTH DAY
Saint Paul, Minnesota, Sunday, May 20, 2007
The House of Representatives convened at 2:00 p.m. and was
called to order by Margaret Anderson Kelliher, Speaker of the House.
Prayer was offered by the Reverend Paul Rogers, House Chaplain.
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
Beard
Benson
Berns
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Clark
Cornish
Davnie
Dean
DeLaForest
Demmer
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
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
Otremba
Ozment
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
Tschumper
Urdahl
Wagenius
Walker
Ward
Wardlow
Welti
Westrom
Winkler
Wollschlager
Zellers
Spk. Kelliher
A quorum was present.
Olson was excused until 4:30 p.m. Hoppe was excused until 4:35 p.m. Paulsen was excused until 4:40 p.m. Tingelstad was excused until 6:00 p.m. Dettmer was excused until 8:30 p.m.
The Chief Clerk proceeded to read the Journal of the preceding
day. Haws moved that further reading of
the Journal be suspended and that the Journal be approved as corrected by the
Chief Clerk. The motion prevailed.
REPORTS OF CHIEF CLERK
S. F. No. 590 and H. F. No. 903,
which had been referred to the Chief Clerk for comparison, were examined and
found to be identical with certain exceptions.
SUSPENSION
OF RULES
Severson moved that the rules be so far suspended that
S. F. No. 590 be substituted for H. F. No. 903
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 1274 and H. F. No. 151,
which had been referred to the Chief Clerk for comparison, were examined and
found to be identical with certain exceptions.
SUSPENSION
OF RULES
DeLaForest moved that the rules be so far suspended that
S. F. No. 1274 be substituted for H. F. No. 151
and that the House File be indefinitely postponed. The motion prevailed.
SECOND READING OF SENATE BILLS
S. F. Nos. 590 and 1274 were read for the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Atkins, Jaros, Swails and Paulsen introduced:
H. F. No. 2541, A bill for an act relating to capital
improvements; appropriating money for public ice facilities; authorizing the
sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Finance.
Seifert, by request; Hortman, Lanning, Demmer and Peterson, A.,
introduced:
H. F. No. 2542, A bill for an act relating to capital
improvements; appropriating money for the Southwest Regional Amateur Sports
Facility; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Finance.
Knuth, Kranz, Lanning, Hortman,
Demmer and Gardner introduced:
H. F. No. 2543, A bill for an act relating to capital
improvements; appropriating money for the Metro North Regional Sports Facility;
authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Finance.
Atkins introduced:
H. F. No. 2544, A bill for an act relating to capital
investment; authorizing spending to acquire and better public land and
buildings and other improvements of a capital nature; authorizing the issuance
of state bonds; appropriating money for expansion of the Inver Grove Heights
Veterans Memorial Community Center.
The bill was read for the first time and referred to the
Committee on Finance.
Knuth introduced:
H. F. No. 2545, A bill for an act relating to capital
improvements; appropriating money for a regional bioscience and environmental
library in Ramsey County; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Finance.
Atkins introduced:
H. F. No. 2546, A bill for an act relating to capital
investment; authorizing spending to acquire and better public land and
buildings and other improvements of a capital nature; authorizing the issuance
of state bonds; appropriating money for restoration of Bridge 5600.
The bill was read for the first time and referred to the
Committee on Finance.
Laine, Tillberry, Tingelstad, Knuth and Hausman introduced:
H. F. No. 2547, A bill for an act relating to capital
investment; authorizing spending to acquire and better public land and
buildings and other improvements of a capital nature; authorizing the issuance
of state bonds; appropriating money for a train station in Fridley.
The bill was read for the first time and referred to the
Committee on Finance.
Simon moved that the House recess subject to the call of the
Chair. The motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by the Speaker.
There being no objection, the order
of business reverted to Reports of Standing Committees and Divisions.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Solberg
from the Committee on Ways and Means to which was referred:
S. F.
No. 1196, A bill for an act relating to housing; creating the Minnesota
manufactured home relocation trust fund; requiring that a manufactured home
park owner make specified payments to the trust fund; requiring an owner of a
manufactured home who rents a lot in a manufactured home park to make an annual
payment to the trust fund; authorizing advances to the Minnesota manufactured
home relocation trust fund; amending Minnesota Statutes 2006, sections
327C.095, subdivisions 1, 4, by adding subdivisions; 462A.21, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 462A.
Reported
the same back with the following amendments:
Page
9, delete section 10
Page
9, line 11, delete "10" and insert "9"
Renumber
the sections in sequence
With
the recommendation that when so amended the bill pass.
The report was adopted.
SECOND READING OF SENATE BILLS
S. F. No. 1196 was read for the second time.
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Madam Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned, as amended by the Senate, in which amendments
the concurrence of the House is respectfully requested:
H. F. No. 1396, A bill for an act relating to guardians and
conservators; requiring a study to make recommendations regarding
conservatorship and guardianship.
Patrick E. Flahaven, Secretary of the Senate
CONCURRENCE
AND REPASSAGE
Madore moved that the House concur in the Senate amendments to
H. F. No. 1396 and that the bill be repassed as amended by the
Senate. The motion prevailed.
H. F. No. 1396, A bill for an act relating to guardians and
conservators; requiring a study to make recommendations regarding
conservatorship and guardianship.
The bill was read for the third time, as amended by the Senate,
and placed upon its repassage.
The question was taken on the repassage of the bill and the
roll was called. There were 106 yeas
and 22 nays as follows:
Those who voted in the affirmative were:
Abeler
Anzelc
Atkins
Benson
Bigham
Bly
Brod
Brown
Brynaert
Bunn
Carlson
Clark
Cornish
Davnie
Demmer
Dill
Dittrich
Dominguez
Doty
Eken
Faust
Fritz
Gardner
Greiling
Gunther
Hamilton
Hansen
Hausman
Haws
Heidgerken
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
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
Otremba
Ozment
Paymar
Pelowski
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruth
Ruud
Sailer
Scalze
Seifert
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Swails
Thao
Thissen
Tillberry
Tschumper
Urdahl
Wagenius
Walker
Ward
Wardlow
Welti
Westrom
Winkler
Wollschlager
Spk. Kelliher
Those who voted in the negative were:
Anderson, B.
Anderson, S.
Beard
Berns
Buesgens
Dean
DeLaForest
Eastlund
Emmer
Erickson
Finstad
Garofalo
Gottwalt
Hackbarth
Holberg
Kohls
Peppin
Severson
Shimanski
Simpson
Sviggum
Zellers
The bill was repassed, as amended by the Senate, and its title
agreed to.
Madam
Speaker:
I hereby announce that the Senate has concurred in and adopted
the report of the Conference Committee on:
S. F. No. 463.
The Senate has repassed said bill in accordance with the
recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to
the House.
Patrick E. Flahaven, Secretary of the Senate
CONFERENCE
COMMITTEE REPORT ON S. F. No. 463
A bill for an act relating to notaries public; increasing
maximum fees; amending Minnesota Statutes 2006, section 357.17.
May
17, 2007
The Honorable James P.
Metzen
President of the Senate
The Honorable Margaret
Anderson Kelliher
Speaker of the House of
Representatives
We,
the undersigned conferees for S. F. No. 463 report that we have agreed upon the
items in dispute and recommend as follows:
That
the House recede from its amendments and that S. F. No. 463 be further amended
as follows:
Delete
everything after the enacting clause and insert:
"Section
1. Minnesota Statutes 2006, section
357.17, is amended to read:
357.17 NOTARIES PUBLIC.
The
maximum fees to be charged and collected by a notary public shall be as
follows:
(1)
for protest of nonpayment of note or bill of exchange or of nonacceptance of
such bill; where protest is legally necessary, and copy thereof, $1
five percent of the fee established in section 357.021, subdivision 2, for
recording a notary commission;
(2)
for every other protest and copy, $1 five percent of the fee
established in section 357.021, subdivision 2, for recording a notary
commission;
(3)
for making and serving every notice of nonpayment of note or nonacceptance of
bill and copy thereof, $1 five percent of the fee established in
section 357.021, subdivision 2, for recording a notary commission;
(4)
for any affidavit or paper for which provision is not made herein, $1
five percent of the fee established in section 357.021, subdivision 2, for
recording a notary commission per folio, and 20 cents per folio for copies;
(5)
for each oath administered, $1 five percent of the fee established in
section 357.021, subdivision 2, for recording a notary commission;
(6)
for acknowledgments of deeds and for other services authorized by law, the
legal fees allowed other officers for like services;
(7)
for recording each instrument required by law to be recorded by the notary, $1
five percent of the fee established in section 357.021, subdivision 2, for
recording a notary commission per folio."
Delete
the title and insert:
"A bill for an act relating to notaries public; changing
maximum fees; amending Minnesota Statutes 2006, section 357.17."
We request the adoption of this report and repassage of the
bill.
Senate Conferees: Don Betzold, Linda Scheid and Julianne E.
Ortman.
House Conferees: Melissa Hortman and Carolyn Laine.
Hortman moved that the report of the Conference Committee on
S. F. No. 463 be adopted and that the bill be repassed as
amended by the Conference Committee.
The motion prevailed.
S. F. No. 463, A bill for an act relating to notaries public;
increasing maximum fees; amending Minnesota Statutes 2006, section 357.17.
The bill was read for the third time, as amended by Conference,
and placed upon its repassage.
The question was taken on the repassage of the bill and the
roll was called. There were 69 yeas and
60 nays as follows:
Those who voted in the affirmative were:
Abeler
Anzelc
Atkins
Benson
Brynaert
Bunn
Carlson
Clark
Davnie
Dill
Dittrich
Dominguez
Doty
Eken
Faust
Gardner
Greiling
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Howes
Huntley
Jaros
Johnson
Kahn
Kalin
Knuth
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Mahoney
Mariani
Marquart
Moe
Morgan
Morrow
Murphy, E.
Murphy, M.
Nelson
Norton
Olin
Otremba
Paymar
Peterson, A.
Peterson, S.
Ruud
Sailer
Scalze
Sertich
Simon
Slawik
Slocum
Solberg
Swails
Thao
Thissen
Tillberry
Tschumper
Wagenius
Ward
Winkler
Spk. Kelliher
Those who voted in the negative were:
Anderson, B.
Anderson, S.
Beard
Berns
Bigham
Bly
Brod
Brown
Buesgens
Cornish
Dean
DeLaForest
Demmer
Eastlund
Emmer
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Hansen
Heidgerken
Holberg
Hosch
Juhnke
Koenen
Kohls
Kranz
Lanning
Madore
Magnus
Masin
McFarlane
McNamara
Mullery
Nornes
Ozment
Pelowski
Peppin
Peterson, N.
Poppe
Rukavina
Ruth
Seifert
Severson
Shimanski
Simpson
Smith
Sviggum
Urdahl
Walker
Wardlow
Welti
Westrom
Wollschlager
Zellers
The bill was repassed, as amended by Conference, and its title
agreed to.
Madam Speaker:
I hereby announce that the Senate has concurred in and adopted
the report of the Conference Committee on:
S. F. No. 167.
The Senate has repassed said bill in accordance with the
recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to
the House.
Patrick E. Flahaven, Secretary of the Senate
CONFERENCE
COMMITTEE REPORT ON 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; extending certain unemployment benefits;
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.
May
18, 2007
The Honorable James P.
Metzen
President of the Senate
The Honorable Margaret
Anderson Kelliher
Speaker of the House of
Representatives
We,
the undersigned conferees for S. F. No. 167 report that we have agreed upon the
items in dispute and recommend as follows:
That
the House recede from its amendments and that S. F. No. 167 be further amended
as follows:
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 The
base period is the
effective on or between these dates: 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:
(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 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;
(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.
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, 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).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
(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 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
(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.
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.
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 268.085, 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.
If the effective date of the applicant's Social Security claim for old
age benefits is, or will be, after the start of the base period, 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.
If the effective date of the applicant's Social Security claim for old
age benefits is before the start of the base period, there is no deduction from
the applicant's weekly unemployment benefit amount.
(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 there
is no deduction from the applicant's weekly benefit amount for any Social
Security disability benefits. If only
clause (2) applies, 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.
(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.
EFFECTIVE DATE. This section is effective for unemployment insurance benefit
accounts filed effective on or after September 30, 2007.
Sec. 16. 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;
(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
(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. 17. 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. 18. 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 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. 19. 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.
(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.
20. 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. 21. 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:
(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. 22. 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. 23. 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:
(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.
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.
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.
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).
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, 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.
(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 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.
(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.
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.
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.
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
(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 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 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 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.
Sec. 9. Minnesota Statutes
2006, section 268.051, subdivision 7, is amended to read:
Subd. 7. Tax rate buydown. (a) Any
taxpaying employer 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. 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
(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 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
(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.
(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.
(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
(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.
(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.
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;
(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;
(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.
(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.
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;
(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:
(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 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
(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.
(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.
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.
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 realize a profit or suffer a loss under contracts to perform
work or service;
(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
(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);
(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;
(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
(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.
(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 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;
(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.
(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.
(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
(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.
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.
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 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:
(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.
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.
(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:
(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.
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.
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 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.
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.
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 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. 54. 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.
(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 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).shall be is
(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. 55. 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:
(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.
56. 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. 57. 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. 58. 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.
Sec. 59. 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. 60. 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.
(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. 61. 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. 62. 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. 63. 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
(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. 64. 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. 65. 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.
(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. 66. 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. 67. 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. 68. 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. 69. 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.
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. 70. 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.
Sec.
71. 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. 72. 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. 73. 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. 74. 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.
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. 75. 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. 76. 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. 77. 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. 78. 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.
Sec.
79. 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. 80. 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.
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";
(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
(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. 81. 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. 82. 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. 83. 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;
(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 den