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HF 1459

as introduced - 88th Legislature (2013 - 2014) Posted on 03/11/2013 02:46pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to unemployment insurance; changing shared work provisions;
modifying benefits; creating CLIMB; amending Minnesota Statutes 2012,
sections 116L.17, by adding a subdivision; 268.136, subdivisions 1, 2, 3, 4, 5,
by adding a subdivision; 268.23; proposing coding for new law in Minnesota
Statutes, chapter 268.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 116L.17, is amended by adding a
subdivision to read:


new text begin Subd. 11. new text end

new text begin Converting layoffs into Minnesota businesses (CLIMB). new text end

new text begin Converting
layoffs into Minnesota businesses (CLIMB) is created to assist dislocated workers in
starting or growing a business. CLIMB must offer entrepreneurial training, business
consulting, and technical assistance to dislocated workers seeking to start or grow a
business. The commissioner, in cooperation with local workforce councils, must provide
the assistance in this subdivision by:
new text end

new text begin (1) encouraging closer ties between the Small Business Development Center
network, Small Business Development Center training providers, and workforce centers,
as well as other dislocated worker program service providers; and
new text end

new text begin (2) eliminating grantee performance data disincentives that would otherwise prevent
enrollment of dislocated workers in entrepreneurship-related training.
new text end

Sec. 2.

new text begin [268.133] UNEMPLOYMENT BENEFITS WHILE IN
ENTREPRENEURIAL TRAINING.
new text end

new text begin Unemployment benefits are available to dislocated workers participating in the
converting layoffs into Minnesota businesses (CLIMB) program under section 116L.17,
subdivision 11. Applicants participating in CLIMB are considered in reemployment
assistance training under section 268.035, subdivision 21c. All requirements under section
268.069, subdivision 1, must be met, except the commissioner may waive:
new text end

new text begin (1) the earnings deductible provisions in section 268.085, subdivision 5; and
new text end

new text begin (2) the 32 hours of work limitation in section 268.085, subdivision 2, clause (6). A
maximum of 500 applicants may receive a waiver at any given time.
new text end

Sec. 3.

Minnesota Statutes 2012, section 268.136, subdivision 1, is amended to read:


Subdivision 1.

Shared work deleted text begin agreementdeleted text end new text begin plannew text end requirements.

deleted text begin (a)deleted text end An employer
may submit a proposed shared work plan for an employee group to the commissioner
for approval in a manner and format set by the commissioner. The proposed deleted text begin agreement
deleted text end new text begin shared work plannew text end must include:

(1) a certified statement that the normal weekly hours of work of all of the proposed
participating employees were full timenew text begin or regular part timenew text end but are now reduced, or will be
reduced, with a corresponding reduction in pay, in order to prevent layoffs;

(2) the name and Social Security number of each participating employee;

(3) new text begin the number of layoffs that would have occurred absent the employer's ability to
participate in a shared work plan;
new text end

new text begin (4) new text end a certified statement deleted text begin of whendeleted text end new text begin thatnew text end each participating employee was first hired by
the employerdeleted text begin , which must bedeleted text end at least one year before the proposed deleted text begin agreementdeleted text end new text begin shared work
plan
new text end is submittednew text begin and is not a seasonal, temporary, or intermittent workernew text end ;

deleted text begin (4)deleted text end new text begin (5)new text end the hours of work each participating employee will work each week for the
duration of the deleted text begin agreementdeleted text end new text begin shared work plannew text end , which must be at least deleted text begin 20deleted text end new text begin one-half the normal
weekly
new text end hours deleted text begin anddeleted text end new text begin butnew text end no more than 32 hours per week, except that the deleted text begin agreementdeleted text end new text begin plan
new text end may provide for a uniform vacation shutdown of up to two weeks;

new text begin (6) a certified statement that any health benefits and any pension benefits provided
by the employer to participating employees will continue to be provided under the same
terms and conditions as though the participating employees' hours of work each week had
not been reduced;
new text end

new text begin (7) a certified statement that the terms and implementation of the shared work plan is
consistent with the employer's obligations under state and federal law;
new text end

new text begin (8) an acknowledgement that the employer understands that unemployment benefits
paid under a shared work plan will be used in computing the future tax rate of a taxpaying
employer or charged to the reimbursable account of a nonprofit or government employer;
new text end

deleted text begin (5)deleted text end new text begin (9)new text end the proposed duration of the deleted text begin agreementdeleted text end new text begin shared work plannew text end , which must be
at least two months and not more than one year, although deleted text begin an agreementdeleted text end new text begin a plannew text end may be
extended for up to an additional year upon approval of the commissioner;

deleted text begin (6)deleted text end new text begin (10)new text end a starting date beginning on a Sunday at least 15 calendar days after the date
the proposed deleted text begin agreementdeleted text end new text begin shared work plannew text end is submitted; and

deleted text begin (7)deleted text end new text begin (11)new text end a signature of an owner or officer of the employer who is listed as an owner
or officer on the employer's account under section 268.045.

deleted text begin (b) An agreement may not be approved for an employer that:
deleted text end

deleted text begin (1) has any unemployment tax or reimbursements, including any interest, fees,
or penalties, due but unpaid; or
deleted text end

deleted text begin (2) has the maximum experience rating provided for under section 268.051,
subdivision 3.
deleted text end

Sec. 4.

Minnesota Statutes 2012, section 268.136, subdivision 2, is amended to read:


Subd. 2.

deleted text begin Agreementdeleted text end new text begin Approvalnew text end by commissioner.

(a) The commissioner must
promptly review a proposed deleted text begin agreementdeleted text end new text begin shared work plannew text end and notify the employer, by mail
or electronic transmission, within 15 days of receipt, whether the proposal satisfies the
requirements of this sectionnew text begin and has been approvednew text end . If the proposal does not comply
with this section, the commissioner must specifically state why the proposal is not in
compliance. If a proposed deleted text begin agreement complies with this sectiondeleted text end new text begin shared work plan has
been approved
new text end , it must be implemented according to its terms.

(b) The commissioner may deleted text begin reject an agreementdeleted text end new text begin not approve a proposed shared work
plan
new text end if the commissioner has cause to believe the proposal deleted text begin is notdeleted text end new text begin wasnew text end submitted for deleted text begin thedeleted text end new text begin a
new text end purpose deleted text begin ofdeleted text end new text begin other thannew text end preventing layoffs due to lack of work.

new text begin (c) The commissioner may not approve a proposed shared work plan if the employer
has any unemployment tax or reimbursements, including any interest, fees, or penalties,
due but unpaid.
new text end

new text begin (d) A shared work plan that has been approved by the commissioner is considered
a contract that is binding on the employer and the department. This contract may be
canceled or modified under subdivision 5.
new text end

Sec. 5.

Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Notice to participating employee. new text end

new text begin The employer must provide written
notification to each participating employee that the employer has submitted a proposed
shared work plan. The notification must be provided to the employee no later than at
the time the commissioner notifies the employer that a proposed shared work plan has
been approved. The notification must inform the employee of the proposed terms of the
shared work plan along with notice to the employee of the employee's right to apply for
unemployment benefits.
new text end

Sec. 6.

Minnesota Statutes 2012, section 268.136, subdivision 3, is amended to read:


Subd. 3.

Applicant requirements.

(a) An applicant, in order to be paid
unemployment benefits under this section, must meet all of the requirements under section
268.069, subdivision 1. The following new text begin provisions of section 268.085 new text end do not apply to an
applicant deleted text begin under this sectiondeleted text end new text begin in an approved shared work plannew text end :

(1) deleted text begin thedeleted text end deductible earnings deleted text begin provision of section 268.085,deleted text end new text begin under new text end subdivision 5;

(2) the restriction under deleted text begin section 268.085,deleted text end subdivision deleted text begin 6deleted text end new text begin 2, clause (6)new text end , if the applicant
works exactly 32 hours in a week;

(3) the requirement of being available for suitable employmentnew text begin under subdivision 1,
clause (4), but only if the applicant is (i) available for the normal hours of work per week
with the shared work employer, or (ii) is in a training program when not working
new text end ; and

(4) the requirement of actively seeking suitable employmentnew text begin under subdivision
1, clause (5)
new text end .

(b) An applicant is ineligible for unemployment benefits under this section for
any week, ifdeleted text begin :
deleted text end

deleted text begin (1)deleted text end the applicant works more than 32 hours in a week in employment with one or
more employerdeleted text begin ; ordeleted text end new text begin .
new text end

deleted text begin (2) the applicant works more hours in a week for the shared work employer than
the reduced weekly hours provided for in the agreement.
deleted text end

Sec. 7.

Minnesota Statutes 2012, section 268.136, subdivision 4, is amended to read:


Subd. 4.

Amount of unemployment benefits available.

new text begin (a) new text end The weekly benefit
amount and maximum amount of unemployment benefits available are computed
according to section 268.07, except that deleted text begin an applicant is paiddeleted text end new text begin the amount of benefits
available is
new text end a reduced amount in direct proportion to the reduction in hoursnew text begin set out in the
shared work plan
new text end from the normal weekly hours.

new text begin (b) Regardless of paragraph (a), if the applicant works more hours in a week for the
shared work employer than the reduced weekly hours provided for in the shared work
plan, the amount of unemployment benefits available is a reduced amount in direct
proportion to the reduction in hours actually worked from the normal weekly hours.
new text end

new text begin (c) If an applicant works fewer hours in a week for the shared work employer than
set out in the shared work plan, the amount of unemployment benefits are available in
accordance with paragraph (a).
new text end

Sec. 8.

Minnesota Statutes 2012, section 268.136, subdivision 5, is amended to read:


Subd. 5.

Cancellationnew text begin ; modificationnew text end .

(a) An employer may cancel deleted text begin an agreementdeleted text end new text begin a
shared work plan
new text end at any time upon seven calendar days' notice to the commissioner in a
manner and format prescribed by the commissioner. The cancellation must be signed by
an owner or officer of the employer.

new text begin (b) An employer may request that the commissioner allow modification of the shared
work plan as to the hours of work each participating employee will work each week. The
request must be sent in a manner and form prescribed by the commissioner. The request
must be signed by an owner or officer of the employer. The commissioner must notify the
employer as soon as possible if the modification is allowed.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end An employer that cancels deleted text begin an agreementdeleted text end new text begin or requests modification of a shared
work plan
new text end must provide written notice to each participating employee deleted text begin in the groupdeleted text end of the
cancellationnew text begin or requested modificationnew text end at the time notice is sent to the commissioner.

deleted text begin (c)deleted text end new text begin (d)new text end If an employer cancels deleted text begin an agreementdeleted text end new text begin a shared work plannew text end before the expiration
date provided for in subdivision 1, a new deleted text begin agreementdeleted text end new text begin shared work plannew text end may not be deleted text begin entered
into with
deleted text end new text begin approved fornew text end that employer under this section for at least 60 calendar days.

deleted text begin (d)deleted text end new text begin (e)new text end The commissioner may immediately cancel any deleted text begin agreementdeleted text end new text begin shared work plan
new text end if the commissioner determines the deleted text begin agreementdeleted text end new text begin plannew text end was based upon false information or
the employer deleted text begin is in breachdeleted text end new text begin has failed to adhere to the termsnew text end of the deleted text begin contractdeleted text end new text begin shared work plannew text end .
The commissioner must immediately send written notice of cancellation to the employer.
An employer that receives notice of cancellation deleted text begin by the commissionerdeleted text end must provide
written notice to each participating deleted text begin employer in the groupdeleted text end new text begin employeenew text end of the cancellation.

Sec. 9.

Minnesota Statutes 2012, section 268.23, is amended to read:


268.23 SEVERABLE.

deleted text begin In the event thatdeleted text end new text begin Ifnew text end the United States Department of Labor determines that any
provision of the Minnesota Unemployment Insurance Lawdeleted text begin , or any other provision of
Minnesota Statutes relating to the unemployment insurance program,
deleted text end is not in conformity
withnew text begin , or is inconsistent with,new text end the requirements of federal law, the provision has no force
or effectdeleted text begin ; butdeleted text end new text begin .new text end If only a portion of the provision, or the application to any person or
circumstances, is deleted text begin helddeleted text end new text begin determinednew text end not in conformity,new text begin or determined inconsistent,new text end the
remainder of the provision and the application of the provision to other persons or
circumstances are not affected.

Sec. 10. new text begin COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK
FUNDS.
new text end

new text begin The commissioner of employment and economic development is authorized to
request federal funding for Minnesota's "shared work" unemployment benefit program
under Minnesota Statutes, section 268.136. Federal funding is available under the Middle
Class Tax Relief and Job Creation Act of 2012, Public Law 112-96. Federal funding
provided under that act for the "shared work" program must be immediately deposited
in the Minnesota Unemployment Insurance Trust Fund. The exception under Minnesota
Statutes, section 268.047, subdivision 2, clause (10), does not apply to the federal money.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end