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SF 2186

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/07/2014 08:34am

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

Current Version - 1st Engrossment

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A bill for an act
relating to unemployment insurance; making policy and housekeeping changes
to the unemployment insurance program; adopting recommendations of the
Unemployment Insurance Advisory Council; amending Minnesota Statutes 2012,
sections 268.035, subdivisions 2, 4, 11, 12, 20, 22, 29; 268.051, subdivision 4;
268.057, subdivisions 5, 7; 268.0625, subdivision 4; 268.085, subdivisions 3, 4,
6, by adding a subdivision; 268.0865, subdivisions 3, 4; 268.095, subdivision 2;
268.103, subdivision 2a; 268.105, subdivisions 1, 2, 3a, 5, 6; 268.18, subdivision
2b; 268.184, subdivisions 1, 1a; 268.186; 268.196, subdivision 1; 268.215;
repealing Minnesota Statutes 2012, section 268.105, subdivision 4; Laws 2005,
chapter 112, article 1, section 15; Laws 2008, chapter 363, article 10, section 30;
Minnesota Rules, parts 3315.0200, subpart 1; 3315.0203; 3315.0211; 3315.0212;
3315.0213; 3315.0801; 3315.0805; 3315.0810; 3315.0815; 3315.0820;
3315.0825; 3315.0830; 3315.0835; 3315.0840; 3315.0845; 3315.0901;
3315.0905.

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

ARTICLE 1

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL POLICY

Section 1.

Minnesota Statutes 2012, section 268.035, subdivision 29, is amended to read:


Subd. 29.

Wages.

(a) "Wages" means all compensation for deleted text beginservicesdeleted text endnew text begin employmentnew text end,
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 housing, utilities, meals, exchanges of services,
and any other goods and services provided to compensate deleted text beginfordeleted text end an deleted text beginemployee's services
deleted text endnew text begin employeenew text end, 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) new text beginthe income to a former employee resulting from the exercise of a nonqualified
stock option;
new text end

new text begin (13) new text endpayments made to supplement unemployment benefits under a plan established
by an employer, that makes provisions for employees generally or for a class or classes of
employees under the written terms of an agreement, contract, trust arrangement, or other
instrument. The plan must provide supplemental payments solely for the supplementing
of weekly state or federal unemployment benefits. The plan must provide supplemental
payments only for those weeks the applicant has been paid regular, extended, or additional
unemployment benefits. The supplemental payments, when combined with the applicant's
weekly unemployment benefits paid, may not exceed the applicant's regular weekly
pay. The plan must not allow the assignment of supplemental payments or provide for
any type of additional payment. The plan must not require any consideration from the
applicantnew text begin, other than a release of claims,new text end 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;

deleted text begin (13)deleted text endnew text begin (14)new text end 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;

deleted text begin (14)deleted text endnew text begin (15)new text end disability payments made under the provisions of any workers'
compensation law;

deleted text begin (15)deleted text endnew text begin (16)new text end sickness or accident disability payments made by a third-party payer
such as an insurance company; or

deleted text begin (16)deleted text endnew text begin (17)new text end 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 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.

(b) Nothing in this subdivision 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) new text beginWages includes the total payment to the operator and supplier of a vehicle or
other equipment where the payment combines compensation for personal services as well
as compensation for the cost of operating and hiring the equipment in a single payment.
This paragraph does not apply if:
new text end

new text begin (1) there is a preexisting written agreement providing for allocation of specific
amounts; or
new text end

new text begin (2) at the time of each payment there is a written acknowledgement indicating
the separate allocated amounts.
new text end

new text begin (d) new text endWages 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.

deleted text begin (d)deleted text endnew text begin (e)new text end 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.

deleted text begin (e)deleted text endnew text begin (f)new text end 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.

deleted text begin (f)deleted text endnew text begin (g)new text end 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. 2.

Minnesota Statutes 2012, section 268.051, subdivision 4, is amended to read:


Subd. 4.

Experience rating history transfer.

(a) The experience rating history of
the predecessor employer is transferred to the successor employer 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.

(b) A portion of the experience rating history of the predecessor employer is
transferred to the successor employer 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 successordeleted text begin,deleted text endnew text begin.
new text end

The successor employer acquires, as of the date of acquisition, deleted text beginthe experience
rating history attributable to the portion it acquired, and the predecessor employer
retains the experience rating history attributable to the portion that it has retained. If the
commissioner determines that sufficient information is not available to substantiate that a
distinct severable portion was acquired and to assign the appropriate distinct severable
portion of the experience rating history, the commissioner must assign the successor
employer
deleted text end 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
retains that percentage of the experience rating history equal to the percentage of the
employment positions it has retained.

(c) new text beginParagraphs (a) and (b) do not require concurrent ownership, management, or
control of the predecessor and successor for there to be a transfer, or partial transfer,
of the experience rating history.
new text end

new text begin (d) new text endThe 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.

deleted text begin (d)deleted text endnew text begin (e)new text end Each successor employer deleted text beginthat is subject to paragraph (a) or (b)deleted text end 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 assigned tax rate under subdivision 2 or 5 was
lower than the predecessor's assigned tax rate at the time of the acquisition. Payments
made toward the penalties are credited to the trust fund.

deleted text begin (e)deleted text endnew text begin (f)new text end 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 is combined with the successor's experience rating history for purposes of
recomputing a tax rate.

deleted text begin (f)deleted text endnew text begin (g)new text end If there has been a transfer of an experience rating history under paragraph (a)
or (b), employment with a predecessor employer is not considered to have been terminated
if similar employment is offered by the successor employer and accepted by the employee.

deleted text begin (g)deleted text endnew text begin (h)new text end The commissioner, upon notification of an employer, or upon the
commissioner's own motion if the employer fails to provide the required notification, must
determine if an employer is a successor within the meaning of this subdivision. The
commissioner must, after determining the issue of succession or nonsuccession, recompute
the tax rate under subdivision 6 of all employers affected. The commissioner must send
the recomputed tax rate to all affected employers by mail or electronic transmission. Any
affected employer may appeal the recomputed tax rate in accordance with the procedures
in subdivision 6, paragraph (c).

deleted text begin (h)deleted text end new text begin(i) new text endThe "experience rating history" for purposes of this subdivision and subdivision
4a means 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 deleted text beginthe
obtaining by
deleted text end the successor employernew text begin obtainingnew text end, in any way or manner, new text beginall, or a portion new text endofnew text begin,
new text end the organization, trade or business, or workforce of the predecessor employer.

deleted text begin 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.
deleted text end

deleted text begin (i)deleted text endnew text begin (j)new text end 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 are
combined as of the date of acquisition or merger for the purpose of recomputing a tax rate.

Sec. 3.

Minnesota Statutes 2012, 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 bears interest at the rate of one deleted text beginand one-half
deleted text end percent per month or any part deleted text beginthereofdeleted text endnew text begin of a monthnew text end. Interest collected new text beginunder this subdivision
new text endis credited to the contingent account.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to all interest assessed after July 1, 2015.
new text end

Sec. 4.

Minnesota Statutes 2012, section 268.085, subdivision 3, is amended to read:


Subd. 3.

Payments that delay unemployment benefits.

(a) An applicant is not
eligible to receive unemployment benefits for any week deleted text beginwith respect to whichdeleted text end the applicant
is receiving, has received, or deleted text beginhas filed for payment, equal to or in excess of the applicant's
weekly unemployment benefit amount, in the form of:
deleted text end

deleted text begin (1)deleted text endnew text begin will receivenew text end vacation pay, sick pay, or personal time off pay, also known as
"PTOdeleted text begin,deleted text endnew text begin.new text end" deleted text beginpaid
deleted text end

new text begin This paragraph only appliesnew text end upon temporary, indefinite, or seasonal separationdeleted text begin. This
clause
deleted text endnew text begin andnew text end does not apply deleted text beginto (i) vacation pay, sick pay, or personal time off pay, paiddeleted text endnew text begin:
new text end

new text begin (1)new text end upon a permanent separation from employmentdeleted text begin,deleted text endnew text begin;new text end or deleted text begin(ii) vacation pay, sick pay, or
personal time off pay, paid
deleted text end

new text begin (2) to paymentsnew text end from a vacation fund administered by a union or a third party not
under the control of the employerdeleted text begin;deleted text endnew text begin.
new text end

new text begin Payments under this paragraph are applied to the period immediately following the
temporary, indefinite, or seasonal separation.
new text end

deleted text begin (2)deleted text endnew text begin (b) An applicant is not eligible to receive unemployment benefits for any week
the applicant is receiving, has received, or will receive
new text end severance pay, bonus pay, deleted text beginanddeleted text endnew text begin or
new text end any other paymentsdeleted text begin, except earnings under subdivision 5, and back pay under subdivision
6,
deleted text end paid by an employer because of, upon, or after separation from employmentdeleted text begin, butdeleted text endnew text begin.
new text end

new text begin This paragraphnew text end only new text beginapplies new text endif the payment isnew text begin:
new text end

new text begin (1)new text end considered wages deleted text beginat the time of paymentdeleted text end under section 268.035, subdivision 29; or

new text begin (2) subject to the Federal Insurance Contributions Act (FICA) tax imposed to fund
Social Security and Medicare.
new text end

new text begin Payments under this paragraph are applied to the period immediately following the
later of the date of separation from employment or the date the applicant first becomes
aware that the employer will be making a payment. The date the payment is actually
made or received, or that an applicant must agree to a release of claims, does not affect
the application of this paragraph.
new text end

new text begin This paragraph does not apply to earnings under subdivision 5, back pay under
subdivision 6, or vacation pay, sick pay, or personal time off pay under paragraph (a).
new text end

deleted text begin (3)deleted text endnew text begin (c) An applicant is not eligible to receive unemployment benefits for any
week the applicant is receiving, has received, will receive, or has applied for
new text end pension,
retirement, or annuity payments from any plan contributed to by a base period employer
including the United States governmentdeleted text begin, except Social Security benefits that are provided
for in subdivision 4
deleted text end. 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
deleted text begin, clause (1)deleted text end. If the pension, retirement, or annuity payment is paid in a lump
sum, an applicant is not considered to have received a payment ifnew text begin:
new text end

deleted text begin (i)deleted text end new text begin(1) new text endthe applicant immediately deposits that payment in a qualified pension plan
or accountdeleted text begin,deleted text endnew text begin;new text end or

deleted text begin (ii)deleted text endnew text begin (2)new text end that payment is an early distribution for which the applicant paid an early
distribution penalty under the Internal Revenue Code, United States Code, title 26, section
72(t)(1).

new text begin This paragraph does not apply to Social Security benefits under subdivision 4 or 4a.
new text end

deleted text begin (b)deleted text endnew text begin (d)new text end This subdivision applies to all the weeks of payment. deleted text beginPayments under
paragraph (a), clause (1), are applied to the period immediately following the last day of
employment.
deleted text end The number of weeks of payment is determined as follows:

(1) if the payments are made periodically, the total of the payments to be received 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 is divided by the applicant's last
level of regular weekly pay from the employer.

new text begin For purposes of this paragraph, "last level of regular weekly pay" includes
commissions, bonuses, and overtime pay if that is part of the applicant's ongoing regular
compensation.
new text end

deleted text begin (c)deleted text endnew text begin (e) Under this subdivision, if the payment with respect to a week is equal to
or more than the applicant's weekly unemployment benefit amount, the applicant is
ineligible for benefits for that week.
new text end If the payment new text beginwith respect to a week new text endis less than the
applicant's weekly unemployment benefit amount, unemployment benefits are reduced
by the amount of the payment.

Sec. 5.

Minnesota Statutes 2012, section 268.103, subdivision 2a, is amended to read:


Subd. 2a.

Employer-agent appeals filed online.

(a) If an agent files an appeal on
behalf of an employer, the appeal must be filed online. The appeal must be filed through
the electronic address provided on the determination being appealed. Use of another
method of filing does not constitute an appeal. This paragraph does not apply tonew text begin:
new text end

new text begin (1)new text end an employee filing an appeal on behalf of an employerdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) an attorney licensed to practice law who is directly representing the employer
on appeal.
new text end

(b) All information requested when the appeal is filed must be supplied or the
communication does not constitute an appeal.

Sec. 6.

Minnesota Statutes 2012, section 268.18, subdivision 2b, is amended to read:


Subd. 2b.

Interest.

deleted text begin(a)deleted text end On any unemployment benefits fraudulently obtained,
and any penalty amounts assessed under subdivision 2, the commissioner must assess
interest at the rate of deleted text begin1-1/2deleted text endnew text begin onenew text end 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 must state that interest will be assessed.new text begin Interest is
assessed in the same manner as on employer debt under section 268.057, subdivision 5.
new text end

deleted text begin (b) If the determination did not state that interest will be assessed, interest is assessed
beginning 30 calendar days after notification, by mail or electronic transmission, to the
applicant that interest is now assessed.
deleted text end

deleted text begin (c)deleted text end Interest paymentsnew text begin collectednew text end under this deleted text beginsectiondeleted text endnew text begin subdivisionnew text end are credited to the
trust fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to interest assessed after July 1, 2015.
new text end

Sec. 7.

Minnesota Statutes 2012, section 268.186, is amended to read:


268.186 RECORDS; AUDITS.

new text begin Subdivision 1. new text end

new text begin Employer records; audits. new text end

(a) Each employer must keep true and
accurate records deleted text beginfor the periods of time anddeleted text end new text beginon individuals performing services for the
employer,
new text endcontaining the information the commissioner may require deleted text beginby rule.deleted text end new text begin under
Minnesota Rules, part 3315.1010. The records must be kept for a period of not less than
four years in addition to the current calendar year.
new text end

new text begin (b) new text endFor the purpose of administering this chapter, the commissioner has the power
to audit, examine, or cause to be supplied or copied, any books, correspondence, papers,
records, or memoranda that deleted text beginare relevant, whether the books, correspondence, papers,
records, or memoranda
deleted text end are the property ofnew text begin,new text end or in the possession of deleted text beginthedeleted text endnew text begin, annew text end employer or any
other person at any reasonable time and as often as may be necessary.new text begin Subpoenas may be
issued under section 268.188, as necessary, for an audit.
new text end

deleted text begin (b) Anydeleted text endnew text begin Annew text end employernew text begin, or other person,new text end that refuses to allow an audit of its records by
the department, or that fails to make all necessary records available for audit in Minnesota
upon request of the commissioner, may be assessed an administrative penalty of $500.
new text beginThe penalty collected is credited to the trust fund.
new text end

new text begin (c) new text endAn employernew text begin, or other person,new text end that fails to provide a weekly breakdown of money
earned by an applicant upon request of the commissioner, information necessary for the
detection of applicant fraud under section 268.18, subdivision 2, may be assessed an
administrative penalty of $100. Any notice requesting a weekly breakdown must clearly
state that a $100 penalty may be assessed for failure to provide the information. The
penalty collected is credited to the trust fund.

new text begin Subd. 2. new text end

new text begin Department records; destruction. new text end

deleted text begin(c)deleted text endnew text begin (a)new text end The commissioner may make
summaries, compilations, deleted text beginphotographs,deleted text end duplications, or reproductions of any recordsdeleted text begin,
or reports
deleted text endnew text begin pertaining to this chapternew text end that the commissioner considers advisable for the
preservation of the informationnew text begin.new text end deleted text begincontained therein. Any summaries, compilations,
photographs, duplications, or reproductions is admissible in any proceeding under this
chapter. The commissioner may duplicate records, reports, summaries, compilations,
instructions, determinations, or any other written or recorded matter pertaining to the
administration of this chapter.
deleted text end

deleted text begin (d)deleted text endnew text begin (b)new text end Regardless of any law to the contrary, the commissioner may deleted text beginprovide for the
destruction of
deleted text endnew text begin destroynew text end any recordsdeleted text begin, reports, or reproductions, or other papersdeleted text end that are no
longer necessary for the administration of this chapterdeleted text begin, including any required auditdeleted text end. In
addition, the commissioner may deleted text beginprovide for the destruction or disposition ofdeleted text endnew text begin destroynew text end any
recorddeleted text begin, report, or other paperdeleted text end from which the information has been electronically captured
and storeddeleted text begin, or that has been photographed, duplicated, or reproduceddeleted text end.

Sec. 8. new text beginEFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective the fourth Sunday following final
enactment and applies to all matters and issues pending determination or decision.
new text end

ARTICLE 2

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL HOUSEKEEPING

Section 1.

Minnesota Statutes 2012, section 268.035, subdivision 2, is amended to read:


Subd. 2.

Agricultural employment.

new text begin(a) new text end"Agricultural employment" means
deleted text beginservices:deleted text endnew text begin the same as "agricultural labor" defined under United States Code, title 26,
section 3306, subparagraph (k), of the Federal Unemployment Tax Act and Code of
Federal Regulations, title 26, section 31.3121(G)-1.
new text end

deleted text begin (1) on a farm, in the employ of any person or family farm corporation in connection
with cultivating the soil, or in connection with raising or harvesting any agricultural or
horticultural commodity, including the raising, shearing, feeding, caring for, training, and
management of livestock, bees, poultry, fur-bearing animals, and wildlife;
deleted text end

deleted text begin (2) in the employ of the owner or tenant or other operator of a farm, in connection
with the operation, management, conservation, improvement, or maintenance of the farm
and its tools and equipment, or in salvaging timber or clearing land of brush and other debris
left by a tornado-like storm, if the major part of the employment is performed on a farm;
deleted text end

deleted text begin (3) in connection with the production or harvesting of any commodity defined as
an agricultural product in United States Code, title 7, section 1626 of the Agricultural
Marketing Act, or in connection with cotton ginning, or in connection with the operation
or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for
profit, used exclusively for supplying and storing water for farming purposes;
deleted text end

deleted text begin (4) in the employ of the operator of a farm in handling, planting, drying, packing,
packaging, processing, freezing, grading, storing, or delivering to storage or to market
or to a carrier for transportation to market, in its unmanufactured state, any agricultural
or horticultural commodity; but only if the operator produced more than one-half of the
commodity with respect to which the employment is performed, or in the employ of a
group of operators of farms or a cooperative organization of which the operators are
members, but only if the operators produced more than one-half of the commodity with
respect to which the employment is performed; however, this clause is not applicable to
employment performed in connection with commercial canning or commercial freezing
or in connection with any agricultural or horticultural commodity after its delivery to a
terminal market for distribution for consumption; or
deleted text end

deleted text begin (5) on a farm operated for profit if the employment is not in the course of the
employer's trade or business.
deleted text end

deleted text begin For purposes of this subdivision, the term "farm" includes stock, dairy, poultry, fruit,
fur-bearing animals, and truck farms, plantations, ranches, nurseries, orchards, ranges,
greenhouses, or other similar structures used primarily for the raising of agricultural or
horticultural commodities.
deleted text end

new text begin (b) For the purposes of this chapter, the term "crew leader" means an individual who:
new text end

new text begin (1) furnishes workers to be employed in agricultural employment for another person;
and
new text end

new text begin (2) pays the wages to the worker.
new text end

new text begin (c) For the purposes of this chapter, a worker who is a member of a crew furnished
by a crew leader for another person is an employee of the crew leader if:
new text end

new text begin (1)(i) 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 (ii) substantially all of the members of the crew operate or maintain any mechanized
equipment that is provided by the crew leader; and
new text end

new text begin (2) the crew leader has not entered into a written agreement with the other person
under which the worker is designated as an employee of the other person.
new text end

new text begin If a worker furnished by a crew leader for another person is not an employee of the
crew leader under clauses (1) and (2), the worker is an employee of the other person and
the wages paid to the worker are considered paid by the other person.
new text end

Sec. 2.

Minnesota Statutes 2012, section 268.035, subdivision 4, is amended to read:


Subd. 4.

Base period.

(a) "Base period," unless otherwise provided in this
subdivision, means the most recent four completed calendar quarters before the effective
date of an applicant's application for unemployment benefits if the application has an
effective date occurring after the month following the most recent completed calendar
quarter. deleted text beginThe base period defined in this paragraph is considered the primary base period.
deleted text end The base period under this paragraph is as follows:

If the application for unemployment
benefits is effective on or between these
dates:
The base period is the prior:
February 1 - March 31
January 1 - December 31
May 1 - June 30
April 1 - March 31
August 1 - September 30
July 1 - June 30
November 1 - December 31
October 1 - September 30

(b) If an application for unemployment benefits has an effective date that is during
the month following the most recent completed calendar quarter, then the base period is
the first four of the most recent five completed calendar quarters before the effective
date of an applicant's application for unemployment benefits. deleted text beginThe base period defined
in this paragraph is considered the secondary base period.
deleted text end The base period under this
paragraph is as follows:

If the application for unemployment
benefits is effective on or between these
dates:
The base period is the prior:
January 1 - January 31
October 1 - September 30
April 1 - April 30
January 1 - December 31
July 1 - July 31
April 1 - March 31
October 1 - October 31
July 1 - June 30

(c) If the applicant has insufficient wage credits to establish a benefit account under
deleted text beginparagraph (a) or (b)deleted text endnew text begin a base period of the four most recent completed calendar quarters,
or a base period of the first four of the most recent five completed calendar quarters
new text end,
but during deleted text beginthedeleted text endnew text begin eithernew text end base period deleted text beginunder paragraph (a) or (b) andeleted text endnew text begin thenew text end applicant received
workers' compensation for temporary disability under chapter 176 or a similar federal law
or similar law of another state, or if deleted text beginandeleted text endnew text begin thenew text end 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 deleted text beginan extendeddeleted text endnew text begin anew text end base period as follows:

(1) if an applicant was compensated for a loss of work of seven to 13 weeks, the
base period is the first four of the most recent six completed calendar quarters before the
effective date of the application for unemployment benefits;

(2) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base
period is the first four of the most recent seven completed calendar quarters before the
effective date of the application for unemployment benefits;

(3) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base
period is the first four of the most recent eight completed calendar quarters before the
effective date of the application for unemployment benefits; and

(4) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base
period is the first four of the most recent nine completed calendar quarters before the
effective date of the application for unemployment benefits.

(d) If the applicant new text beginunder paragraph (b) new text endhas insufficient wage credits to establish a
benefit account deleted text beginusing the secondary base period under paragraph (b), an alternatedeleted text endnew text begin, then a
new text end base period of the most recent four completed calendar quarters before the effective date
of the applicant's application for unemployment benefits deleted text beginwilldeleted text endnew text begin mustnew text end be used. deleted text beginEstablishment
of a benefit account is in accordance with section 268.07, subdivision 2.
deleted text end

(e) No base period under deleted text beginparagraph (a), (b), (c), or (d)deleted text endnew text begin this subdivisionnew text end may include
wage credits upon which a prior benefit account was established.

(f) Regardless of paragraph (a), deleted text beginthe secondarydeleted text endnew text begin anew text end base period deleted text beginin paragraph (b)deleted text end new text beginof the
first four of the most recent five completed calendar quarters
new text endmust be used if the applicant
deleted text beginhasdeleted text endnew text begin would havenew text end more wage credits under that base period than under deleted text beginthe primarydeleted text endnew text begin anew text end base
period deleted text beginin paragraph (a)deleted text endnew text begin of the four most recent completed calendar quartersnew text end.

Sec. 3.

Minnesota Statutes 2012, section 268.035, subdivision 11, is amended to read:


Subd. 11.

Covered agricultural employment.

new text begin(a) new text end"Covered agricultural
employment" means agricultural employment deleted text beginwhere:
deleted text end

deleted text begin (1) The employment isdeleted text end performed for a person who:

deleted text begin (i)deleted text endnew text begin (1)new text end during any calendar quarter in deleted text begineitherdeleted text end the current or the prior calendar year
paid wages of $20,000 or more to employees deleted text beginin agricultural employmentdeleted text end; or

deleted text begin (ii)deleted text endnew text begin (2) in the current or the prior calendar year employed four or more employees
who each worked
new text end for some portion of a day in deleted text begineach ofdeleted text end 20 deleted text begindifferentdeleted text end calendar weeks,
deleted text beginwhether or not the weeks were consecutive, in either the current or prior calendar year
employed in agricultural employment four or more employees,
deleted text end regardless of whether they
were employed deleted text beginatdeleted text endnew text begin duringnew text end the same deleted text begintimedeleted text endnew text begin weeksnew text end.

deleted text begin (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 is treated as an employee
of the crew leader:
deleted text end

deleted text begin (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
deleted text end

deleted text begin (ii) if the employee is not an employee of another person.
deleted text end

deleted text begin (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):
deleted text end

deleted text begin (i) the other person and not the crew leader is treated as the employer of the
employee; and
deleted text end

deleted text begin (ii) the other person 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.
deleted text end

deleted text begin (4) The term "crew leader" means an individual who:
deleted text end

deleted text begin (i) furnishes employees to be employed in agricultural employment for any other
person;
deleted text end

deleted text begin (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
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (5)deleted text end new text begin(b) new text endEmployment of an officer or shareholder of a family farm corporation deleted text beginis
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.
deleted text end

deleted text begin (6)deleted text end new text beginand new text endemployment of an individual 16 years of age or under is deleted text beginexcluded from
deleted text endnew text begin included innew text end covered agricultural employment deleted text beginunlessdeleted text endnew text begin only ifnew text end the employer is an employer
under United States Code, title 26, section 3306(a)(2) of the Federal Unemployment
Tax Act.

Sec. 4.

Minnesota Statutes 2012, section 268.035, subdivision 12, is amended to read:


Subd. 12.

Covered employment.

new text begin(a) new text end"Covered employment" means the following
unless excluded as "noncovered employment" under subdivision 20:

(1) an employee's entire employment during the calendar quarter if:

deleted text begin (i) the employment is performed entirely in Minnesota;
deleted text end

deleted text begin (ii)deleted text endnew text begin (i)new text end the employment new text beginduring the quarter new text endis performed primarily in Minnesotadeleted text begin,
and the employment performed outside Minnesota is incidental to the employment in
Minnesota; or
deleted text endnew text begin;
new text end

deleted text begin (iii)deleted text endnew text begin (ii)new text end the employment new text beginduring the quarter new text endis not performed primarily in new text beginMinnesota
or
new text endany deleted text beginonedeleted text endnew text begin othernew text end 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

new text begin (iii) the employment during the quarter is not performed primarily in Minnesota
or any other state and
new text end the base of operations or place from which the employment is
directed or controlled is not in any state where part of the employment is performed, but
the employee's residence is in Minnesota;

(2) an employee's new text beginentire new text endemployment during the calendar quarter deleted text beginwherever
deleted text end performed within the United States or Canada, if:

(i) the employment is not new text beginconsidered new text endcovered new text beginemployment new text endunder the unemployment
insurance program of any other statenew text begin, federal law,new text end or new text beginthe law of new text endCanada; and

(ii) the place from which the employment is directed or controlled is in Minnesota;

(3) the employment during the calendar quarter deleted text beginofdeleted text endnew text begin, performed entirely outside of
the United States and Canada, by
new text end an employee who is a new text beginUnited States new text endcitizen deleted text beginof the
United States, performed outside the United States, except in Canada,
deleted text end in the employ of
an American employer ifdeleted text begin:
deleted text end

deleted text begin (i)deleted text end the employer's principal place of business in the United States is located in
Minnesotadeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (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;
deleted text end

deleted text begin (iii) none of the criteria of items (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;
deleted text end

deleted text begin (iv)deleted text end An "American employer," for the purposes of this deleted text beginsubdivisiondeleted text endnew text begin clausenew text end, means new text begina
corporation organized under the laws of any state,
new text endan 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 Statesdeleted text begin, or a
corporation organized under the laws of the United States, or of any state; or
deleted text endnew text begin; and
new text end

deleted text begin (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;
deleted text end

(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 Minnesotadeleted text begin; anddeleted text endnew text begin.
new text end

new text begin (b) "Covered employment" includes covered agricultural employment under
subdivision 11.
new text end

deleted text begin (5)deleted text endnew text begin (c)new text end For the purposes of satisfying the period of ineligibility under section
268.095, subdivision 10, "covered employment" includes covered employment under an
unemployment insurance programnew text begin:
new text end

new text begin (1)new text end of any other state deleted text beginor employment covered under an unemployment insurance
program
deleted text endnew text begin; or
new text end

new text begin (2)new text end established by an act of Congress.

Sec. 5.

Minnesota Statutes 2012, 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 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 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;

(16) employment for Minnesota in an unclassified position established under section
43A.08, subdivision 1a;

(17) employment for a political subdivision of Minnesota that is a nontenured major
policy making or advisory position;

(18) 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 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;

(19) 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;

deleted text begin (20) employment of an individual who provides direct care to an immediate family
member funded through the personal care assistance program under section 256B.0659;
deleted text end

deleted text begin (21)deleted text end new text begin(20) new text endemployment of an inmate of a custodial or penal institution;

deleted text begin (22)deleted text end new text begin(21) new text endemployment for a school, college, or university by a student who is
enrolled and whose primary relation to the school, college, or university is as a student.
This does not include an individual whose primary relation to the school, college, or
university is as an employee who also takes courses;

deleted text begin (23)deleted text end new text begin(22) new text endemployment 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 does not apply to employment in a program established for or on behalf of an
employer or group of employers;

deleted text begin (24)deleted text end new text begin(23) new text endemployment 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
under Laws 1990, chapter 570, article 6, section 3;

deleted text begin (25)deleted text endnew text begin (24)new text end 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;

deleted text begin (26)deleted text endnew text begin (25)new text end 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;

deleted text begin (27)deleted text endnew text begin (26)new text end employment as an intern for a hospital by an individual who has completed
a four-year course in an accredited medical school;

deleted text begin (28)deleted text endnew text begin (27)new text end 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" includes an annuity and an optional annuity;

deleted text begin (29)deleted text endnew text begin (28)new text end employment as an officer of a township mutual insurance company or
farmer's mutual insurance company operating under chapter 67A;

deleted text begin (30)deleted text endnew text begin (29)new text end employment of a corporate officer, if the officer directly or indirectly,
including through a subsidiary or holding company, owns 25 percent or more of the
employer corporation, and employment of a member of a limited liability company, if the
member directly or indirectly, including through a subsidiary or holding company, owns
25 percent or more of the employer limited liability company;

deleted text begin (31)deleted text endnew text begin (30)new text end 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;

deleted text begin (32)deleted text endnew text begin (31)new text end employment as a direct seller as defined in United States Code, title 26,
section 3508;

deleted text begin (33)deleted text endnew text begin (32)new text end 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;

deleted text begin (34)deleted text endnew text begin (33)new text end casual employment performed for an individual, other than domestic
employment under clause (18), that does not promote or advance that employer's trade or
business;

deleted text begin (35)deleted text endnew text begin (34)new text end employment in "agricultural employment" unless considered "covered
agricultural employment" under subdivision 11; or

deleted text begin (36)deleted text endnew text begin (35)new text end if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period 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 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. 6.

Minnesota Statutes 2012, section 268.035, subdivision 22, is amended to read:


Subd. 22.

Statenew text begin and United Statesnew text end.

"State" new text begin and "United States" new text endincludes, in
addition to the states of the United States, the Commonwealth of Puerto Rico, the District
of Columbia, and the Virgin Islands.

Sec. 7.

Minnesota Statutes 2012, 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 must make an adjustment and issue a credit without interest.
If a credit cannot be used, the commissioner must 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 is considered unclaimed property under
chapter 345.

(b) If a credit adjustment or refund is denied in whole or in part, a deleted text beginnoticedeleted text endnew text begin determination
new text end of denial must be sent to the employer by mail or electronic transmission. The deleted text beginnotice
deleted text endnew text begin determinationnew text end of denial is final unless an employer files an appeal within 20 calendar days
after sending. Proceedings on the appeal are conducted in accordance with section 268.105.

Sec. 8.

Minnesota Statutes 2012, section 268.0625, subdivision 4, is amended to read:


Subd. 4.

deleted text beginNoticedeleted text endnew text begin Determinationnew text end and right to hearing.

At least 30 calendar days
before the commissioner notifies a licensing authority, a deleted text beginnoticedeleted text endnew text begin determinationnew text end of action
under this section must be sent to the licensee by mail or electronic transmission. If the
licensee disputes the action, the licensee must appeal within 20 calendar days after the
sending of the deleted text beginnoticedeleted text endnew text begin determinationnew text end 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 are conducted in accordance with section 268.105.

Sec. 9.

Minnesota Statutes 2012, section 268.085, subdivision 4, is amended to read:


Subd. 4.

Social Security new text beginold age insurance new text endbenefits.

(a) Any applicant aged 62
or over is required to state when filing an application for unemployment benefits and
when filing continued requests for unemployment benefits if the applicant is receiving,
has filed for, or intends to file for, primary Social Security old age benefits deleted text beginfor any week
during the benefit year
deleted text end.

Unless paragraph (b) applies, 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 must be deducted from an applicant's weekly unemployment
benefit amount.

(b) If all of the applicant's wage credits were earned while the applicant was claiming
Social Security old age benefits, there is no deduction from the applicant's weekly
unemployment benefit amount. deleted text beginThe purpose of this paragraph is to ensure that an applicant
who is claiming Social Security benefits has demonstrated a desire and ability to work.
deleted text end

new text begin (c) Information from the Social Security Administration is considered conclusive,
absent specific evidence showing that the information was erroneous.
new text end

new text begin (d) This subdivision does not apply to Social Security survivor benefits.
new text end

deleted text begin (c) An applicant who is receiving, has received, or has filed for primary Social
Security disability benefits for any week during the benefit year must be determined
unavailable for suitable employment for that week, unless:
deleted text end

deleted text begin (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
deleted text end

deleted text begin (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 available for suitable employment.
deleted text end

deleted text begin If an applicant meets the requirements of clause (1) there is no deduction from the
applicant's weekly benefit amount for any Social Security disability benefits. If only
clause (2) applies, then there 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 does not
apply to that week.
deleted text end

deleted text begin (d) Information from the Social Security Administration is considered conclusive,
absent specific evidence showing that the information was erroneous.
deleted text end

deleted text begin (e) This subdivision does not apply to Social Security survivor benefits.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to paragraph (b) is effective the day
following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2012, section 268.085, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Social Security disability benefits. new text end

new text begin (a) An applicant who is receiving,
has received, or has filed for primary Social Security disability benefits for any week is
ineligible for unemployment benefits for that week, unless:
new text end

new text begin (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
new text end

new text begin (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 available for suitable employment.
new text end

new text begin (b) If an applicant meets the requirements of paragraph (a), clause (1), there is no
deduction from the applicant's weekly benefit amount for any Social Security disability
benefits.
new text end

new text begin (c) If an applicant meets the requirements of paragraph (a), clause (2), there 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.
new text end

new text begin If the Social Security Administration determines that the applicant is not entitled to
receive primary Social Security disability benefits for any week the applicant has applied
for those benefits, then this paragraph does not apply to that week.
new text end

new text begin (d) Information from the Social Security Administration is considered conclusive,
absent specific evidence showing that the information was erroneous.
new text end

new text begin (e) This subdivision does not apply to Social Security survivor benefits.
new text end

Sec. 11.

Minnesota Statutes 2012, section 268.085, subdivision 6, is amended to read:


Subd. 6.

Receipt of back pay.

(a) Back pay received by an applicant within 24
months of the establishment of the benefit account with respect to any week deleted text beginoccurring
during the benefit year
deleted text end must be deducted from unemployment benefits paid for that weeknew text begin,
and the applicant is considered to have been overpaid the unemployment benefits under
section 268.18, subdivision 1
new text end.

If the back pay is not paid with respect to a specific period, the back pay 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 new text beginand not paid the applicant new text endmust be:

(1) paid by the new text begintaxpaying or reimbursing new text endemployer to the trust fund within 30
calendar days and new text beginis new text endsubject to the same collection procedures that apply to past due
taxesnew text begin and reimbursementsnew text end;new text begin and
new text end

(2) new text beginwhen received by the trust fund:
new text end

new text begin (i) an overpayment of unemployment benefits must be created which, under section
268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account
of any effect; and
new text end

new text begin (ii) the back pay must then be new text endapplied to new text beginthe new text endunemployment benefit deleted text beginoverpayments
resulting from the payment of the back pay; and
deleted text endnew text begin overpayment, eliminating any effect on
the applicant.
new text end

deleted text begin (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.
deleted text end

deleted text begin (c) Unemployment benefits paid the applicant 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.
deleted text end

deleted text begin (d) Payments to the trust fund under this subdivision are considered as made by
the applicant.
deleted text end

new text begin (c) The following must result when applying paragraph (b):
new text end

new text begin (1) an employer neither overpays nor underpays the employer's proper portion
of the unemployment benefit costs; and
new text end

new text begin (2) the applicant is placed in the same position as never having been paid the
unemployment benefits.
new text end

new text begin (d) This subdivision applies to payments labeled front pay, settlement pay, and other
terms describing or dealing with wage loss.
new text end

Sec. 12.

Minnesota Statutes 2012, section 268.0865, subdivision 3, is amended to read:


Subd. 3.

Continued request for unemployment benefits by electronic
transmission.

(a) A continued request for unemployment benefits by electronic
transmission must be filed to that electronic mail address, telephone number, or Internet
address prescribed by the commissioner for that applicant. In order to constitute a
continued 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 does not constitute a continued
request for unemployment benefits.

(b) The electronic transmission communication must be filed on the date and during
the time of day designated for the applicant for filing a continued request by electronic
transmission.

(c) If the electronic transmission continued request is not filed deleted text beginon the date and
during the time of day designated
deleted text endnew text begin as required under paragraph (b)new text end, a continued request
by electronic transmission must be accepted if the applicant files the continued request
by electronic transmission within deleted text begintwodeleted text endnew text begin threenew text end calendar weeks following the week deleted text beginin which
the date designated occurred
deleted text endnew text begin for which payment is requestednew text end. If the continued request by
electronic transmission is not filed within deleted text begintwodeleted text endnew text begin threenew text end calendar weeks following the week
deleted text beginin which the date designated occurreddeleted text endnew text begin for which payment is requestednew text end, the electronic
continued request will not be accepted and the applicant is ineligible for unemployment
benefits for the period covered by the continued request, unless the applicant shows good
cause for failing to file the continued request by electronic transmission within the time
period required.

Sec. 13.

Minnesota Statutes 2012, section 268.0865, subdivision 4, is amended to read:


Subd. 4.

Continued request for unemployment benefits by mail.

(a) A
continued request for unemployment benefits by mail must be on a form prescribed by
the commissioner. The form, in order to constitute a continued request, must be totally
completed and signed by the applicant. The form must be filed deleted text beginon the date required for the
applicant for filing a continued request
deleted text end by mail, in an envelope with postage prepaid, and
sent to the address designatednew text begin during the week following the week for which payment is
requested
new text end.

(b) If the mail continued request for unemployment benefits is not filed deleted text beginon the date
designated
deleted text endnew text begin as required under paragraph (a)new text end, a continued request must be accepted if the
form is filed by mail within deleted text begintwodeleted text endnew text begin threenew text end calendar weeks following the week deleted text beginin which the date
designated occurred
deleted text endnew text begin for which payment is requestednew text end. If the form is not filed within deleted text begintwo
deleted text endnew text begin threenew text end calendar weeks following the week deleted text beginin which the date designated occurreddeleted text endnew text begin for which
payment is requested
new text end, the form will not be accepted and the applicant is ineligible for
unemployment benefits for the period covered by the continued request for unemployment
benefits, 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 request for unemployment
benefits by mail, an applicant may submit the form by facsimile transmission deleted text beginon the day
otherwise required for mailing, or
deleted text end within deleted text begintwodeleted text endnew text begin threenew text end calendar weeks following the week deleted text beginin
which the date designated occurred
deleted text endnew text begin for which payment is requestednew text end. A form submitted by
facsimile transmission must be sent only to the telephone number assigned for that purpose.

(d) An applicant who has been designated to file a continued request by mail may
personally deliver a continued request form only to the location to which the form was
otherwise designated to be mailed.

Sec. 14.

Minnesota Statutes 2012, 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, is considered to have quit the employment.

(c) An employee who seeks to withdraw a previously submitted notice of quitting
is considered to have quit the employmentnew text begin, as of the intended date of quitting,new text end 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 job
assignment from a staffing service (1) fails without good cause to affirmatively request an
additional suitable job assignment, (2) refuses without good cause an additional suitable
job assignment offered, or (3) accepts employment with the client of the staffing service, is
considered to have quit employment with the staffing service. Accepting employment with
the client of the staffing service meets the requirements of the exception to ineligibility
under subdivision 1, clause (2).

This paragraph applies only if, at the time of beginning of employment with the
staffing service, 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" is a reason that is significant and would
compel an average, reasonable worker, who would otherwise want an additional suitable
job assignment with the staffing service (1) to fail to contact the staffing service, or (2)
to refuse an offered assignment.

Sec. 15.

Minnesota Statutes 2012, section 268.105, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginEvidentiarydeleted text end Hearing by unemployment law judge.

(a) Upon a
timely appeal new text beginto a determination new text endhaving been fileddeleted text begin, the department must send, by mail or
electronic transmission, a notice of appeal to all involved parties that an appeal has been
filed, and that a de novo due process evidentiary hearing will be scheduled. The notice
must set out the parties' rights and responsibilities regarding the hearing. The notice must
explain that the facts will be determined by the unemployment law judge based upon a
preponderance of the evidence. The notice must explain in clear and simple language the
meaning of the term "preponderance of the evidence." The department
deleted text endnew text begin or upon a referral
for direct hearing under section 268.101, subdivision 3a, the chief unemployment law
judge
new text end must set a time and deleted text beginplacedeleted text endnew text begin datenew text end for a de novo due process evidentiary hearing and
send notice to any deleted text begininvolveddeleted text end applicant and any deleted text begininvolveddeleted text end employer, by mail or electronic
transmission, not less than ten calendar days before the date of the hearing.

(b) deleted text beginThe evidentiary hearing is conducted by an unemployment law judge as an
evidence gathering inquiry. At the beginning of the hearing the unemployment law judge
must fully explain how the hearing will be conducted, that the applicant has the right to
request that the hearing be rescheduled so that documents or witnesses can be subpoenaed,
that the facts will be determined based on a preponderance of the evidence, and, in
clear and simple language, the meaning of the term "preponderance of the evidence."
The unemployment law judge must ensure that all relevant facts are clearly and fully
developed.
deleted text end The department may adopt rules on deleted text beginevidentiarydeleted text endnew text begin procedures fornew text end hearingsnew text begin under
Minnesota Rules, chapter 3310
new text end. The rules need not conform to common law or statutory
rules of evidence and other technical rules of procedure.

new text begin (c)new text end The deleted text begindepartmentdeleted text endnew text begin chief unemployment law judgenew text end has discretion regarding the
method by which the deleted text beginevidentiarydeleted text end hearing is conducted. deleted text beginA report of any employee of the
department, except a determination, made in the regular course of the employee's duties, is
competent evidence of the facts contained in it. An affidavit or written statement based on
personal knowledge and signed under penalty of perjury is competent evidence of the facts
contained in it; however, the veracity of statements contained within the document or the
credibility of the witness making the statement may be disputed with other documents or
testimony and production of such documents or testimony may be compelled by subpoena.
deleted text end

deleted text begin (c)deleted text endnew text begin (d)new text end After the conclusion of the hearing, upon the evidence obtained, the
unemployment law judge must makenew text begin writtennew text end findings of factnew text begin, reasons for decision,new text end and
decision and send those, by mail or electronic transmission, to all deleted text begininvolveddeleted text end parties. When
the credibility of deleted text beginan involved party ordeleted text endnew text begin anew text end witness testifying in deleted text beginan evidentiarydeleted text endnew text begin anew text end 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 under subdivision 2.

deleted text begin (d) Regardless of paragraph (c),deleted text endnew text begin (e)new text end If the appealing party fails to participate in the
deleted text beginevidentiarydeleted text end hearing, the unemployment law judge has the discretion to dismiss the appeal
by summary deleted text beginorderdeleted text endnew text begin decisionnew text end. 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 deleted text beginevidentiarydeleted text end hearing deleted text beginunder subdivision 2, paragraph (d)deleted text end. Submission
of a written statement does not constitute participation. The applicant must participate
personally and appearance solely by a representative does not constitute participation.

new text begin (f) The unemployment law judge must issue a decision dismissing the appeal as
untimely if the judge decides the appeal was not filed within 20 calendar days after the
sending of the determination. The unemployment law judge may dismiss the appeal
by summary decision, or the judge may conduct a hearing to obtain evidence on the
timeliness of the appeal.
new text end

new text begin (g) Decisions of an unemployment law judge are not precedential.
new text end

deleted text begin (e)deleted text endnew text begin (h)new text end Only employees of the department who are attorneys licensed to practice law
in Minnesota may serve as the chief unemployment law judge, senior unemployment
law judges who are supervisors, or unemployment law judges. The commissioner must
designate a chief unemployment law judge.

new text begin (i)new text end The chief unemployment law judgenew text begin must assign an unemployment law judge to
conduct a hearing and
new text end may transfer to another deleted text beginunemployment lawdeleted text end judge any proceedings
pending before an unemployment law judge.

deleted text begin (f)deleted text endnew text begin (j)new text end A full-time unemployment law judge must be paid a salary within a range
directly tied to the salary set under section 15A.083, subdivision 7, for a workers'
compensation judge. The salary paid within that range to any single unemployment law
judge is based on experience and performance.

Sec. 16.

Minnesota Statutes 2012, section 268.105, subdivision 2, is amended to read:


Subd. 2.

Request for reconsideration.

(a) Any deleted text begininvolved applicant, involved
employer
deleted text endnew text begin partynew text end, or the commissionernew text begin,new text end maydeleted text begin,deleted text end within 20 calendar days of the sending
of the unemployment law judge's decision under subdivision deleted text begin1deleted text endnew text begin 1anew text end, file a request for
reconsideration asking the deleted text beginunemployment lawdeleted text end judge to reconsider that decision. deleted text beginSection
268.103 applies to a request for reconsideration. If a request for reconsideration is timely
filed, the unemployment law judge must issue an order:
deleted text endnew text begin.
new text end

deleted text begin (1) modifying the findings of fact and decision issued under subdivision 1;
deleted text end

deleted text begin (2) setting aside the decision issued under subdivision 1 and directing that an
additional evidentiary hearing be conducted under subdivision 1; or
deleted text end

deleted text begin (3) affirming the findings of fact and decision issued under subdivision 1.
deleted text end

(b) Upon a deleted text begintimelydeleted text end request for reconsideration having been filed, the deleted text begindepartment
deleted text endnew text begin chief unemployment law judgenew text end must send a notice, by mail or electronic transmission,
to all deleted text begininvolveddeleted text end parties that a request for reconsideration has been filed. The notice must
inform the deleted text begininvolveddeleted text end parties:

(1) new text beginthat reconsideration is the procedure for the unemployment law judge to
correct any factual or legal mistake in the decision, or to order an additional hearing
when appropriate;
new text end

new text begin (2) new text endof 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 deleted text beginevidentiarydeleted text end hearing;

deleted text begin (2)deleted text endnew text begin (3)new text end that providing specific comments as to a perceived factual or legal deleted text beginerror
deleted text endnew text begin mistakenew text end in the decision, or a perceived deleted text beginerrordeleted text endnew text begin mistakenew text end in procedure during the deleted text beginevidentiary
deleted text end hearing, will assist the unemployment law judge in deciding the request for reconsideration;

deleted text begin (3)deleted text endnew text begin (4)new text end of the right to obtain any comments and submissions provided by deleted text beginthedeleted text endnew text begin any
new text end other deleted text begininvolveddeleted text end party regarding the request for reconsideration; and

deleted text begin (4)deleted text endnew text begin (5)new text end of the provisions of paragraph (c) regarding additional evidence.

This paragraph does not apply if paragraph (d) is applicable.new text begin Sending the notice does
not mean the unemployment law judge has decided the request for reconsideration was
timely filed.
new text end

(c) In deciding a request for reconsideration, the unemployment law judge must notdeleted text begin,
except for purposes of determining whether to order an additional evidentiary hearing,
deleted text end consider any evidence that was not submitted at the deleted text beginevidentiarydeleted text end hearing deleted text beginconducted under
subdivision 1
deleted text endnew text begin, except for purposes of determining whether to order an additional hearingnew text end.

The unemployment law judge must order an additional deleted text beginevidentiarydeleted text end hearing if deleted text beginan
involved
deleted text end new text begina new text endparty shows that evidence which was not submitted at the deleted text beginevidentiarydeleted text end 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 deleted text beginevidentiarydeleted text end hearing was
likely false and that the likely false evidence had an effect on the outcome of the decision.

(d) If the deleted text begininvolved applicant or involved employerdeleted text endnew text begin partynew text end who filed the request
for reconsideration failed to participate in the deleted text beginevidentiarydeleted text end hearing deleted text beginconducted under
subdivision 1
deleted text end, new text beginthe unemployment law judge must issue new text endan order setting aside the decision
and deleted text begindirecting thatdeleted text endnew text begin orderingnew text end an additional deleted text beginevidentiarydeleted text end hearing deleted text beginbe conducted must be issued
deleted text end if the party who failed to participate had good cause for failing to do so. deleted text beginIn the notice
that a request for reconsideration has been filed,
deleted text end The party who failed to participate new text beginin
the hearing
new text endmust be informed of the requirementdeleted text begin, and provided the opportunity,deleted text end 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 deleted text beginunemployment lawdeleted text end judge must
state that in the deleted text beginorderdeleted text endnew text begin decisionnew text end issued under paragraph deleted text begin(a)deleted text endnew text begin (f)new text end.

Submission of a written statement at the deleted text beginevidentiarydeleted text end hearing deleted text beginunder subdivision 1
deleted text end does not constitute participation for purposes of this paragraph.

deleted text begin All involved parties must be informed of this paragraph with the notice of appeal
and notice of hearing provided for in subdivision 1.
deleted text end

"Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from participating deleted text beginatdeleted text endnew text begin innew text end the deleted text beginevidentiarydeleted text end hearing.

(e) A request for reconsideration must be decided by the unemployment law judge
who issued the decision under subdivision deleted text begin1deleted text endnew text begin 1anew text end unless that deleted text beginunemployment lawdeleted text end judge:

(1) is no longer employed by the department;

(2) is on an extended or indefinite leave;new text begin or
new text end

deleted text begin (3) has been disqualified from the proceedings on the judge's own motion; or
deleted text end

deleted text begin (4)deleted text endnew text begin (3)new text end has been removed from the proceedings by the chief unemployment law judge.

(f) new text beginIf a request for reconsideration is timely filed, the unemployment law judge
must issue:
new text end

new text begin (1) a decision affirming the findings of fact, reasons for decision, and decision
issued under subdivision 1a;
new text end

new text begin (2) a decision modifying the findings of fact, reasons for decision, and decision
under subdivision 1a; or
new text end

new text begin (3) an order setting aside the findings of fact, reasons for decision, and decision
issued under subdivision 1a, and ordering an additional hearing.
new text end

new text begin The unemployment law judge must issue a decision dismissing the request for
reconsideration as untimely if the judge decides the request for reconsideration was not
filed within 20 calendar days after the sending of the decision under subdivision 1a.
new text end

The unemployment law judge must send to deleted text beginany involved applicant or involved
employer
deleted text endnew text begin all partiesnew text end, by mail or electronic transmission, the new text begindecision or new text endorder issued
under this subdivision. deleted text beginAn orderdeleted text endnew text begin A decision affirming ornew text end modifying the previously
issued findings of factnew text begin, reasons for decision,new text end and decision deleted text beginor an order affirming the
previously issued findings of fact and decision
deleted text endnew text begin, or a decision dismissing the request for
reconsideration as untimely,
new text end is the final deleted text begindepartmentdeleted text end decision on the matter and is deleted text beginfinal and
deleted text end binding on the deleted text begininvolved applicant and involved employerdeleted text endnew text begin partiesnew text end unless judicial review is
sought under subdivision 7.

Sec. 17.

Minnesota Statutes 2012, section 268.105, subdivision 3a, is amended to read:


Subd. 3a.

new text beginEffect of new text enddecisions.

(a) If an unemployment law judge's decision deleted text beginor order
deleted text end allows unemployment benefits to an applicant, the deleted text beginunemploymentdeleted text end benefits must be paid
regardless of any request for reconsideration or deleted text beginany appealdeleted text endnew text begin petitionnew text end to the Minnesota
Court of Appeals deleted text beginhaving been fileddeleted text end.

(b) If an unemployment law judge's decision deleted text beginor orderdeleted text end modifies or reverses a
determinationnew text begin that allowed unemployment benefitsnew text end, or new text beginon reconsideration the decision
modifies or reverses a
new text endprior decision deleted text beginof the unemployment law judge, allowing
unemployment
deleted text endnew text begin that allowednew text end benefits deleted text beginto an applicantdeleted text end, any benefits paid deleted text beginin accordance with
the determination, or prior decision of the unemployment law judge, is
deleted text endnew text begin arenew text end considered
an overpayment of those deleted text beginunemploymentdeleted text end benefits. A decision deleted text beginor order issued under this
section
deleted text end 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
deleted text beginoverpaid unemploymentdeleted text end benefits must be repaid.

(c) If an unemployment law judge's deleted text beginorderdeleted text endnew text begin decision on reconsiderationnew text end under
subdivision 2 allows unemployment benefits deleted text beginto an applicantdeleted text end under section 268.095
because of a quit or discharge and the deleted text beginunemployment lawdeleted text end judge's decision is reversed
by the Minnesota Court of Appeals or the Supreme Court of Minnesota, the applicant
cannot be held ineligible for any of the deleted text beginunemploymentdeleted text end benefits paid deleted text beginthe applicant and it is
not considered an overpayment of those unemployment benefits under section 268.18,
subdivision 1
deleted text endnew text begin before the date of the court's reversalnew text end. The effect of the court's reversal isnew text begin:
new text end

new text begin (1) that the applicant may only be held ineligible for future unemployment benefits;
and
new text end

new text begin (2)new text end the application of section 268.047, subdivision 3, in computing the future tax
rate of deleted text beginthedeleted text endnew text begin a taxpayingnew text end employer.

(d) If an unemployment law judge, new text beginon reconsideration new text endunder subdivision 2,
orders the taking of additional evidence, the deleted text beginunemployment lawdeleted text end judge's prior decision
must continue to be enforced until new findings of fact and decision are made by the
deleted text beginunemployment lawdeleted text end judge.

Sec. 18.

Minnesota Statutes 2012, section 268.105, subdivision 5, is amended to read:


Subd. 5.

Use of evidence; data privacy.

(a) All testimony at any deleted text beginevidentiary
deleted text end hearing deleted text beginconducted under subdivision 1deleted text end must be recorded. A copy of any recorded
testimony and exhibits offered or received into evidence at the hearing must, upon request,
be furnished to a party at no costnew text begin:
new text end

new text begin (1)new text end during the time period for filing a request for reconsideration deleted text beginordeleted text endnew text begin;
new text end

new text begin (2)new text end while a request for reconsideration is pendingdeleted text begin.deleted text endnew text begin;
new text end

new text begin (3) during the time for filing a petition under subdivision 7; or
new text end

new text begin (4) while a petition is pending.
new text end

deleted text begin (b)deleted text end Regardless of any deleted text beginprovision ofdeleted text end law to the contrary, deleted text beginifdeleted text end recorded testimony and
deleted text beginexhibits received into evidence at the evidentiary hearing are not requested during the
time period for filing a request for reconsideration, while a request for reconsideration is
pending, during the time for filing any appeal under subdivision 7, or during the pendency
thereof, that testimony and
deleted text end other evidence may later be made available only under a
district court order. A subpoena is not considered a district court order.

deleted text begin (c)deleted text endnew text begin (b)new text end Testimony obtained deleted text beginunder subdivision 1deleted text endnew text begin at a hearingnew text end, 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.new text begin This paragraph
does not apply to criminal proceedings.
new text end

Sec. 19.

Minnesota Statutes 2012, 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 deleted text begininvolveddeleted text end employer may be represented by any deleted text beginagentdeleted text endnew text begin authorized representativenew text end.

deleted text begin (b)deleted text end Except for services provided by an attorney-at-law, new text beginno person may charge an
applicant a fee of any kind for advising, assisting, or representing an applicant in a hearing
or on reconsideration.
new text end

new text begin (b) new text endAn applicant 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.

new text begin (c) No attorney fees may be awarded against the department as a result of any
proceedings under this section.
new text end

Sec. 20.

Minnesota Statutes 2012, section 268.184, subdivision 1, is amended to read:


Subdivision 1.

Administrative penalties.

(a) The commissioner must penalize
an employer if that employer or any employee, officer, or agent of that employer, is
in collusion with any applicant for the purpose of assisting the applicant to receive
unemployment benefits fraudulently. The penalty is $500 or the amount of unemployment
benefits determined to be overpaid, whichever is greater.

(b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employernew text begin:new text end (1) made a false statement or representation knowing
it to be falsedeleted text begin,deleted text endnew text begin;new text end (2) made a false statement or representation without a good faith belief
as to correctness of the statement or representationdeleted text begin,deleted text endnew text begin;new text end (3) knowingly failed to disclose a
material factdeleted text begin,deleted text endnew text begin;new text end or (4) made an offer of employment to an applicant when, in fact, the
employer had no employment available.

The penalty is the greater of $500 or 50 percent of the following resulting from the
employer's action:

(i) the amount of any overpaid unemployment benefits to an applicant;

(ii) the amount of unemployment benefits not paid to an applicant that would
otherwise have been paid; or

(iii) the amount of any payment required from the employer under this chapter or
section 116L.20 that was not paid.

(c) The commissioner must penalize an employer if that employer failed or refused
to honor a subpoena issued under deleted text beginsection 268.105, subdivision 4, ordeleted text end section 268.188. The
penalty is $500 and any costs of enforcing the subpoena, including attorney fees.

(d) Penalties under this subdivision and under section 268.047, subdivision 4,
paragraph (b), are in addition to any other penalties and subject to the same collection
procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of
issuance of the determination of penalty and credited to the trust fund.

(e) The determination of penalty is final unless the employer files an appeal within
20 calendar days after the sending of the determination of penalty to the employer by
mail or electronic transmission. Proceedings on the appeal are conducted in accordance
with section 268.105.

Sec. 21.

Minnesota Statutes 2012, 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 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
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, 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 268.046, the person must be assessed a penalty of $5,000
or two percent of the quarterly payroll reported in violation of section 268.046, whichever
is higher. Payroll is wages paid as defined in section 268.035, subdivision 30.

(d) Penalties under this subdivision 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 determination of
penaltynew text begin and credited to the trust fundnew text end.

(e) The determination of penalty is final unless the person assessed files an appeal
within 20 calendar days after sending of the determination of penalty by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

Sec. 22.

Minnesota Statutes 2012, section 268.196, subdivision 1, is amended to read:


Subdivision 1.

Administration account.

(a) There is created in the state treasury a
special account to be known as the administration account. All money deleted text beginthat isdeleted text end deposited
into this account is continuously available to the commissioner for deleted text beginexpenditure to
administer
deleted text endnew text begin administeringnew text end the Minnesota unemployment insurance program, and does not
lapse at any time. The administration account consists ofnew text begin all moneynew text end:

(1) deleted text beginall moneydeleted text end received from the federal government tonew text begin:
new text end

new text begin (i)new text end administer the Minnesota unemployment insurance programdeleted text begin,deleted text endnew text begin;
new text end

new text begin (ii) administernew text end any federal unemployment insurance programdeleted text begin, or assistance provided
to
deleted text endnew text begin; and
new text end

new text begin (iii) assistnew text end any other state deleted text beginto administerdeleted text endnew text begin in administeringnew text end that state's unemployment
insurance program;

deleted text begin (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;
deleted text end

deleted text begin (3) any moneydeleted text endnew text begin (2)new text end received deleted text beginas compensationdeleted text end for services or facilities supplied to
the federal government or any other state;

deleted text begin (4) any moneydeleted text endnew text begin (3)new text end credited to this account under this chapter;

deleted text begin (5) any amountsdeleted text endnew text begin (4)new text end received for losses sustained by this account or by reason of
damage to equipment or supplies; and

deleted text begin (6) any proceedsdeleted text endnew text begin (5) receivednew text end from the sale deleted text beginor dispositiondeleted text end of any equipment or
supplies that deleted text beginmaydeleted text endnew text begin arenew text end no longer deleted text beginbedeleted text end necessary for the deleted text beginproperdeleted text end administration of deleted text beginthose
sections
deleted text endnew text begin the Minnesota unemployment insurance programnew text end.

(b) All money in this account 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 management and
budget, as treasurer and custodian of this account, is liable for the faithful performance
of duties in connection with this account.

(c) All money in this account deleted text beginmustdeleted text endnew text begin may onlynew text end be spent for the deleted text beginpurposes and in the
amounts found necessary by the United States Secretary of Labor for the proper and
efficient
deleted text end administration of the Minnesota unemployment insurance program.

Sec. 23.

Minnesota Statutes 2012, section 268.215, is amended to read:


268.215 DAY OF THE WEEK AND DATE REQUIREMENT.

(a) Every determination issued under this chapter deleted text beginthat is subject to an appeal to an
unemployment law judge
deleted text end 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 deleted text begin1deleted text endnew text begin1anew text end, 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.

Sec. 24. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall make the following terminology changes in
Minnesota Statutes and Minnesota Rules:
new text end

new text begin (1) "evidentiary hearing" to "hearing" in Minnesota Statutes, section 268.105;
new text end

new text begin (2) "involved employer" to "employer" in Minnesota Statutes, section 268.105;
new text end

new text begin (3) "involved applicant" to "applicant" in Minnesota Statutes, section 268.105;
new text end

new text begin (4) "involved party" to "party" in Minnesota Statutes, section 268.105;
new text end

new text begin (5) "order under subdivision 2" to "decision on reconsideration under subdivision 2"
in Minnesota Statutes, section 268.105;
new text end

new text begin (6) "review the unemployment law judge's decision" to "review the unemployment
law judge's decision on reconsideration" in Minnesota Statutes, section 268.105;
new text end

new text begin (7) "If the applicant has earnings, with respect to any week" to "If the applicant has
earnings, including holiday pay, with respect to any week" in Minnesota Statutes, section
268.085;
new text end

new text begin (8) "retroactive payment of money" to "payment" in Minnesota Statutes, section
268.035;
new text end

new text begin (9) "an alternate base period" to "a base period" in Minnesota Statutes, chapter 268;
new text end

new text begin (10) "section 645.151" to "sections 645.15 and 645.151" in Minnesota Statutes,
section 268.033;
new text end

new text begin (11) "appeal decision or order" to "unemployment law judge's decision" in
Minnesota Statutes, section 268.18;
new text end

new text begin (12) "personal identification number," "personal identification number (PIN)," or
"PIN" to "password" in Minnesota Statutes, section 268.084; and
new text end

new text begin (13) "for a period of not less than eight years after the calendar year" to "for a period
of not less than four years in addition to the current calendar year" in Minnesota Rules,
part 3315.1010.
new text end

new text begin (b) The revisor of statutes shall renumber Minnesota Statutes, section 268.105,
subdivision 1, paragraphs (d) to (g), as Minnesota Statutes, section 268.105, subdivision 1a,
paragraphs (a) to (d); and Minnesota Statutes, section 268.105, subdivision 1, paragraphs
(h) to (j), as Minnesota Statutes, section 268.105, subdivision 1b, paragraphs (a) to (c).
new text end

new text begin (c) The revisor of statutes shall reletter Minnesota Statutes, section 268.035,
subdivision 4, as follows: paragraph (c) is relettered paragraph (e); paragraph (e) is
relettered paragraph (f); and paragraph (f) is relettered paragraph (c). The revisor shall
make any cross-reference changes necessary from this relettering.
new text end

Sec. 25. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, section 268.105, subdivision 4, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Laws 2005, chapter 112, article 1, section 15, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Laws 2008, chapter 363, article 10, section 30, new text end new text begin is repealed.
new text end

new text begin (d) new text end new text begin Minnesota Rules, parts 3315.0200, subpart 1; 3315.0203; 3315.0211; 3315.0212;
3315.0213; 3315.0801; 3315.0805; 3315.0810; 3315.0815; 3315.0820; 3315.0825;
3315.0830; 3315.0835; 3315.0840; 3315.0845; 3315.0901; and 3315.0905,
new text end new text begin are repealed.
new text end

Sec. 26. new text beginEFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective the fourth Sunday following final
enactment, and applies to all matters and issues pending determination or decision.
new text end