Engrossments
Introduction		Posted on 03/04/2013

Section 1.

Minnesota Statutes 2012, section 116L.17, subdivision 4, is amended to read:

Subd. 4.

Use of funds.

Funds granted by the board under this section may be used
for any combination of the following, except as otherwise provided in this section:

(1) employment transition services such as developing readjustment plans for
individuals; outreach and intake; early readjustment; job or career counseling; testing;
orientation; assessment of skills and aptitudes; provision of occupational and labor market
information; job placement assistance; job search; job development; prelayoff assistance;
relocation assistance; deleted text begin anddeleted text end programs provided in cooperation with employers or labor
organizations to provide early intervention in the event of plant closings or substantial
layoffs;new text begin and entrepreneurial training and business consulting;
new text end

(2) support services, including assistance to help the participant relocate to employ
existing skills; out-of-area job search assistance; family care assistance, including child
care; commuting assistance; emergency housing and rental assistance; counseling
assistance, including personal and financial; health care; emergency health assistance;
emergency financial assistance; work-related tools and clothing; and other appropriate
support services that enable a person to participate in an employment and training program
with the goal of reemployment;

(3) specific, short-term training to help the participant enhance current skills
in a similar occupation or industry; entrepreneurial training, customized training, or
on-the-job training; basic and remedial education to enhance current skills; and literacy
and work-related English training for non-English speakers; and

(4) long-term training in a new occupation or industry, including occupational skills
training or customized training in an accredited program recognized by one or more
relevant industries. Long-term training shall only be provided to dislocated workers
whose skills are obsolete and who have no other transferable skills likely to result in
employment at a comparable wage rate. Training shall only be provided for occupations or
industries with reasonable expectations of job availability based on the service provider's
thorough assessment of local labor market information where the individual currently
resides or is willing to relocate. This clause shall not restrict training in personal services
or other such industries.

Sec. 2.

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

new text begin Subd. 11. new text end

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

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

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

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

Sec. 3.

Minnesota Statutes 2012, section 268.033, is amended to read:

268.033 COMPUTATION OF TIME.

The computation of time provisions of deleted text begin sectiondeleted text end new text begin sections 645.15 andnew text end 645.151 apply
to this chapter.

Sec. 4.

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

Subd. 2.

Agricultural employment.

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

Sec. 5.

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 begin The 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 begin The 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

new text begin The base period in this paragraph is used when the wage detail report on the most
recent completed calendar quarter is not yet available. According to section 268.044,
subdivision 1, the wage detail report is due the last day of the month following the end
of the calendar quarter.
new text end

(c) If the applicant has insufficient wage credits to establish a benefit account under
paragraph (a) or (b), but during the base period under paragraph (a) or (b) an applicant
received workers' compensation for temporary disability under chapter 176 or a similar
federal law or similar law of another state, or if an applicant whose own serious illness
caused a loss of work for which the applicant received compensation for loss of wages
from some other source, the applicant may request deleted text begin an extendeddeleted text end new 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 applicantnew text begin applies for unemployment benefits with an effective date that
is during the month following the most recent completed calendar quarter, butnew text end has
insufficient wage credits to establish a benefit account using the deleted text begin secondarydeleted text end base period
deleted text begin under paragraph (b), an alternatedeleted text end new text begin of the first four of the most recent five completed
calendar quarters, then anew text end base period of the most recent four completed calendar quarters
before the effective date of the applicant's application for unemployment benefits will be
used. new text begin This base period is used even though the wage detail report on the most recent
completed quarter has not yet been filed. In that circumstance, obtaining necessary wage
credit information for new text end establishment of a benefit account is new text begin done new text end in accordance with
section 268.07, subdivision deleted text begin 2deleted text end new text begin 1, paragraph (c)new text end .

(e) No base period under paragraph (a), (b), (c), or (d) may include wage credits
upon which a prior benefit account was established.

(f) Regardless of paragraph (a), deleted text begin the secondarydeleted text end new text begin if an applicant applies for
unemployment benefits with an effective date occurring after the month following the
most recent calendar quarter, anew text end base period deleted text begin in paragraph (b)deleted text end new text begin of the first four of the most
recent five completed calendar quarters new text end must be used if the applicant deleted text begin hasdeleted text end new text begin would havenew text end more
wage credits under that base period than under deleted text begin the primarydeleted text end new text begin anew text end base period deleted text begin in paragraph
(a)deleted text end new text begin of the four most recent completed calendar quartersnew text end .

Sec. 6.

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 deleted text begin agricultural employment wheredeleted text end :

(1) deleted text begin Thedeleted text end new text begin agriculturalnew text end employment deleted text begin isdeleted text end performed for a person who:

(i) during any calendar quarter in deleted text begin eitherdeleted text end the current or the prior calendar year paid
wages of $20,000 or more to employees in agricultural employment; or

(ii) new text begin employed at least four employees in agricultural employment who each worked
new text end for some portion of a day in each of 20 different calendar weeks, deleted text begin whether or not the weeks
were consecutive,deleted text end in deleted text begin eitherdeleted text end the current or prior calendar year deleted text begin employed in agricultural
employment four or more employees, regardless of whether they were employed at the
same time.deleted text end new text begin ;
new text end

(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:

(i) if the crew leader holds a valid certificate of registration under United States
Code, title 29, section 1802, the Migrant and Seasonal Agricultural Worker Protection
Act; or substantially all of the members of the crew operate or maintain tractors,
mechanized harvesting or crop dusting equipment, or any other mechanized equipment,
that is provided by the crew leader; and

(ii) if the employee is not an employee of another persondeleted text begin .deleted text end new text begin ; and
new text end

(3) any employee who is furnished by a crew leader to be employed in agricultural
employment for any other person and who is not treated as an employee of the crew
leader under clause (2):

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

(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 begin (4)deleted text end new text begin (b)new text end The term "crew leader" new text begin under this subdivision new text end means an individual who:

deleted text begin (i)deleted text end new text begin (1)new text end furnishes employees to be employed in agricultural employment for any
other person;

deleted text begin (ii)deleted text end new text begin (2)new text end paysnew text begin ,new text end deleted text begin (deleted text end either on the crew leader's own behalf or on behalf of the other
persondeleted text begin )deleted text end new text begin ,new text end the employees furnished by the crew leader for the agricultural employment
performed by them; and

deleted text begin (iii)deleted text end new text begin (3)new text end 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 begin (5)deleted text end new text begin (c) For purposes of paragraph (a), clause (1), item (ii), new text end employment of an
officer or shareholder of a family farm corporation deleted text begin is excluded from covered agricultural
employment unless the corporation is an employer under United States Code, title 26,
section 3306(a)(2) of the Federal Unemployment Tax Actdeleted text end .

deleted text begin (6)deleted text end new text begin andnew text end employment of an individual 16 years of age or under is deleted text begin excluded from
covered agricultural employment unlessdeleted text end new text begin considered 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. 7.

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

deleted text begin (iii)deleted text end new text begin (ii)new text end the employment new text begin during the quarter new text end is not performed primarily in new text begin Minnesota
or new text end any deleted text begin onedeleted text end new 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;

deleted text begin (2) an employee's employment during the calendar quarter wherever performed
within the United States or Canada, if:
deleted text end

deleted text begin (i) the employment is not covered under the unemployment insurance program of
any other state or Canada; and
deleted text end

deleted text begin (ii) the place from which the employment is directed or controlled is in Minnesota;
deleted text end

new text begin The term "performed primarily" for purposes of this clause means more than 50 percent
as measured by the wages paid;
new text end

deleted text begin (3)deleted text end new text begin (2)new text end the employment during the calendar quarter deleted text begin ofdeleted text end new text begin , performed entirely outside
of the United States and Canada, bynew text end an employee who is a new text begin United States new text end citizen deleted text begin of 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 end new 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 begin subdivisiondeleted text end new text begin clausenew text end , means
an individual who is a resident of the United States, or a partnership if two-thirds or
more of the partners are residents of the United States, or a trust, if all of the trustees are
residents of the United States, or a corporation organized under deleted text begin the laws of the United
States, ordeleted text end new text begin the lawnew text end of any state; deleted text begin ordeleted text end new 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

deleted text begin (4)deleted text end new text begin (3)new text end 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 end new text begin .
new text end

deleted text begin (5)deleted text end new text begin (b)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 begin or employment covered under an unemployment insurance
programdeleted text end new text begin ;
new text end

new text begin (2) new text end established by an act of Congressdeleted text begin .deleted text end new text begin ; or
new text end

new text begin (3) under the law of Canada.
new text end

Sec. 8.

Minnesota Statutes 2012, section 268.035, subdivision 15, is amended to read:

Subd. 15.

Employment.

(a) "Employment" means service performed by:

(1) an individual who is considered an employee deleted text begin under the common law of
employer-employeedeleted text end and not deleted text begin considereddeleted text end an independent contractornew text begin under (i) subdivision
9a or 25b or (ii) the common law of employer-employeenew text end ;

(2) an officer of a corporation;

(3) a member of a limited liability company who is considered an employee under
the common law of employer-employee;

(4) product demonstrators in retail stores or other locations to aid in the sale of
products. The person that pays the wages is considered the employer; or

(5) an individual who performs services for a person for compensation, as:

(i) an agent-driver or commission-driver engaged in distributing meat products,
vegetable products, fruit products, beverages, or laundry or dry cleaning services; or

(ii) a traveling or city salesperson, other than as an agent-driver or commission-driver,
engaged full-time in the solicitation on behalf of the person, of orders from wholesalers,
retailers, contractors, or operators of hotels, restaurants, or other similar establishments for
merchandise for resale or supplies for use in their business operations.

This clause applies only if the contract of service provides that substantially all of
the services are to be performed personally by the individual, and the services are part of
a continuing relationship with the person for whom the services are performed, and the
individual does not have a substantial investment in facilities used in connection with the
performance of the services, other than facilities for transportation.

(b) Employment does not include service as a juror.

Sec. 9.

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 end includes, in
addition to the states of the United States, the Commonwealth of Puerto Rico, the District
of Columbia, and the Virgin Islands.

Sec. 10.

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

Subd. 29.

Wages.

(a) "Wages" means all compensation for services, including
commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation
and holiday pay; back pay as of the date of payment; tips and gratuities paid to an
employee by a customer of an employer and accounted for by the employee to the
employer; sickness and accident disability payments, except as otherwise provided in
this subdivision; and the cash valuenew text begin , but not less than the fair market value,new text end of housing,
utilities, meals, exchanges of services, and any other goods and services provided to
compensate for an employee's services, except:

(1) the amount of any payment made to, or on behalf of, an employee under a plan
established by an employer that makes provision for employees generally or for a class or
classes of employees, including any amount paid by an employer for insurance or annuities,
or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and
hospitalization expenses in connection with sickness or accident disability, or (iii) death;

(2) the payment by an employer of the tax imposed upon an employee under United
States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect
to compensation paid to an employee for domestic employment in a private household of
the employer or for agricultural employment;

(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or
to a trust described in United States Code, title 26, section 401(a) of the federal Internal
Revenue Code, that is exempt from tax under section 501(a) at the time of the payment
unless the payment is made to an employee of the trust as compensation for services as an
employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at
the time of the payment, is a plan described in section 403(a);

(4) the value of any special discount or markdown allowed to an employee on goods
purchased from or services supplied by the employer where the purchases are optional and
do not constitute regular or systematic payment for services;

(5) customary and reasonable directors' fees paid to individuals who are not
otherwise employed by the corporation of which they are directors;

(6) the payment to employees for reimbursement of meal expenses when employees
are required to perform work after their regular hours;

(7) the payment into a trust or plan for purposes of providing legal or dental services
if provided for all employees generally or for a class or classes of employees;

(8) the value of parking facilities provided or paid for by an employer, in whole or in
part, if provided for all employees generally or for a class or classes of employees;

(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral,
or other right;

(10) advances or reimbursements for traveling or other bona fide ordinary and
necessary expenses incurred or reasonably expected to be incurred in the business of the
employer. Traveling and other reimbursed expenses must be identified either by making
separate payments or by specifically indicating the separate amounts where both wages
and expense allowances are combined in a single payment;

(11) residual payments to radio, television, and similar artists that accrue after
the production of television commercials, musical jingles, spot announcements, radio
transcriptions, film sound tracks, and similar activities;

(12) payments 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 applicant
and must not be designed for the purpose of avoiding the payment of Social Security
obligations, or unemployment taxes on money disbursed from the plan;

(13) sickness or accident disability payments made by the employer after the
expiration of six calendar months following the last calendar month that the individual
worked for the employer;

(14) disability payments made under the provisions of any workers' compensation
law;

(15) sickness or accident disability payments made by a third-party payer such as
an insurance company; or

(16) payments made into a trust fund, or for the purchase of insurance or an annuity,
to provide for sickness or accident disability payments to employees 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 begin Wages 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 end Wages includes payments made for services as a caretaker. Unless there is a
contract or other proof to the contrary, compensation is considered as being equally
received by a married couple where the employer makes payment to only one spouse, or
by all tenants of a household who perform services where two or more individuals share
the same dwelling and the employer makes payment to only one individual.

deleted text begin (d)deleted text end new 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 end new 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 end new 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. 11.

Minnesota Statutes 2012, section 268.042, subdivision 1, is amended to read:

Subdivision 1.

Employer registration.

(a) Each employer must, upon or before
the submission of its first wage detail report under section 268.044, register with the
commissioner for a tax account or a reimbursable account, by electronic transmission
in a format prescribed by the commissioner. The employer must provide all required
information for registration, including the actual physical street and city address of the
employer.

(b) Within 30 calendar days, each employer must notify the commissioner by
electronic transmission, in a format prescribed, of a change in legal entity, of the
transfer, sale, or acquisition of a business conducted in Minnesota, in whole or in part,
if the transaction results in the creation of a new or different employer or affects the
establishment of employer accounts, the assignment of tax rates, or the transfer of
experience rating history.

(c) Except as provided in subdivision 3, any person that is or becomes an employer
subject to the Minnesota Unemployment Insurance Law within any calendar year is
deleted text begin considered to bedeleted text end subject to this chapter the entire calendar year.

(d) Within 30 calendar days of the termination of business, an employer that has
been assigned a tax account or reimbursable account must notify the commissioner by
electronic transmission, in a format prescribed by the commissioner, if that employer does
not intend or expect to pay wages to any employees in covered employment during the
current or the next calendar year. Upon notification, the employer is no longer required
to file wage detail reports under section 268.044, subdivision 1, paragraph (d), and the
employer's account must be terminated.

(e) new text begin The commissioner, after notifying the employer, may terminate an employer's
tax account if the employer has not filed a wage detail report as required under section
268.044 for eight consecutive calendar quarters.
new text end

new text begin (f) new text end An employer that has its account terminated regains its previous tax account
under section 268.045, with the experience rating history of that account, if the employer
again commences business and again pays wages in covered employment if:

(1) less than 14 calendar quarters have elapsed in which no wages were paid for
covered employment;

(2) the experience rating history regained contains taxable wages; and

(3) the experience rating history has not been transferred to a successor under
section 268.051, subdivision 4.

new text begin If the experience rating history is not regained under this paragraph, the employer must be
assigned the new employer tax rate under section 268.051, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2012, section 268.043, is amended to read:

268.043 DETERMINATIONS OF COVERAGE.

(a) The commissioner, upon the commissioner's own motion or upon application of a
person, must determine if that person is an employer or whether services performed for it
constitute employment and covered employment, or whether any compensation constitutes
wagesdeleted text begin , and notifydeleted text end new text begin . The commissioner must send tonew text end the person deleted text begin of thedeleted text end new text begin anew text end determinationnew text begin of
coveragenew text end . The determination new text begin of coverage new text end is final unless the person files an appeal within
20 calendar days after the commissioner sends the determination by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

(b) No person may be initially determined an employer, or that services performed
for it were in employment or covered employment, for periods more than four years before
the year in which the determination new text begin of coverage new text end is made, unless the commissioner finds
that there was fraudulent action to avoid liability under this chapter.

Sec. 13.

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

Subd. 4a.

Actions that avoid taxesnew text begin or reimbursementsnew text end .

(a) If the commissioner
determines that any action was done, in whole or in part, to avoid:

(1) an experience rating history;

(2) the transfer of an experience rating history; deleted text begin or
deleted text end

(3) the assignment of a tax rate for new employers under subdivision 5, paragraph
(a) or (b)deleted text begin ,deleted text end new text begin ; or
new text end

new text begin (4) reimbursement required from a nonprofit or government employer, new text end the
commissioner, to insure that the trust fund receives all the taxes new text begin and reimbursements new text end that
would have been received had the action not occurred, may, effective the date of the
action, transfer all or part of an experience rating history and recompute the tax rate deleted text begin ordeleted text end new text begin ,
new text end assign the appropriate new employer tax ratenew text begin , or assess a reimbursementnew text end .

(b) This subdivision applies to any action between persons regardless of whether
there is any commonality of ownership, management, or control between the persons. The
authority granted to the commissioner under this subdivision is in addition to any other
authority granted to the commissioner.

Sec. 14.

Minnesota Statutes 2012, section 268.051, subdivision 5, is amended to read:

Subd. 5.

Tax rate for new employers.

(a) Each new taxpaying employer that does
not qualify for an experience rating under subdivision 3, except new employers in a high
experience rating industry, must be assigned, for a calendar year, a tax rate the higher of
(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing
the total amount of unemployment benefits paid all applicants during the 48 calendar
months ending on June 30 of the prior calendar year by the total taxable wages of all
taxpaying employers during the same period, plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).

(b) Each new taxpaying employer in a high experience rating industry that does not
qualify for an experience rating under subdivision 3, must be assigned, for a calendar year,
a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed
to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits
paid to all applicants from high experience rating industry employers during the 48
calendar months ending on June 30 of the prior calendar year by the total taxable wages
of all high experience rating industry employers during the same period, to a maximum
provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).

(c) An employer is considered to be in a high experience rating industry if:

(1) the employer is engaged in residential, commercial, or industrial construction,
including general contractors;

(2) the employer is engaged in sand, gravel, or limestone mining;

(3) the employer is engaged in the manufacturing of concrete, concrete products,
or asphalt; or

(4) the employer is engaged in road building, repair, or resurfacing, including bridge
and tunnels and residential and commercial driveways and parking lots.

(d) Regardless of any law to the contrary, a taxpaying employer must be assigned a
tax rate under this subdivision ifdeleted text begin :
deleted text end

deleted text begin (1)deleted text end the employer deleted text begin registers for a tax account under section 268.042 and for each of
the five calendar quarters after registering files a "no wages paid" report on wage detail
under section 268.044; ordeleted text end new text begin had no taxable wages during the experience rating period under
subdivision 3.
new text end

deleted text begin (2) the employer has filed 14 consecutive quarterly "no wages paid" reports on
wage detail under section 268.044.
deleted text end

(e) The commissioner must send to the new employer, by mail or electronic
transmission, a determination of tax rate. An employer may appeal the determination of
tax rate in accordance with the procedures in subdivision 6, paragraph (c).

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

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 begin and one-half
deleted text end percent per month or any part deleted text begin thereofdeleted text end new text begin of a monthnew text end . Interest collected new text begin under this subdivision
new text end is credited to the contingent account.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to all interest assessed after January
1, 2014.
new text end

Sec. 16.

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 begin noticedeleted text end new text begin determination
new text end of denial must be sent to the employer by mail or electronic transmission. The deleted text begin notice
deleted text end new 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. 17.

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

Subd. 4.

deleted text begin Noticedeleted text end new text begin Determinationnew text end and right to hearing.

At least 30 calendar days
before the commissioner notifies a licensing authority, a deleted text begin noticedeleted text end new 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 begin noticedeleted text end new text begin determination of actionnew 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. 18.

Minnesota Statutes 2012, section 268.069, subdivision 3, is amended to read:

Subd. 3.

Common law.

new text begin (a) new text end There is no equitable or common law denial or
allowance of unemployment benefits.

new text begin (b) The equitable and common law concepts of constructive quit and constructive
discharge do not apply to this chapter.
new text end

Sec. 19.

Minnesota Statutes 2012, section 268.07, subdivision 1, is amended to read:

Subdivision 1.

Application for unemployment benefits; determination of benefit
account.

(a) An application for unemployment benefits may be filed in person, by mail,
or by electronic transmission as the commissioner may require. The applicant must be
unemployed at the time the application is filed and must provide all requested information
in the manner required. If the applicant is not unemployed at the time of the application
or fails to provide all requested information, the communication is not considered an
application for unemployment benefits.

(b) The commissioner must examine each application for unemployment benefits to
determine the base period and the benefit year, and based upon all the covered employment
in the base period the commissioner must determine the weekly unemployment benefit
amount available, if any, and the maximum amount of unemployment benefits available, if
any. The determination, which is a document separate and distinct from a document titled
a determination of eligibility or determination of ineligibility issued under section 268.101,
must be titled determination of benefit account. A determination of benefit account must
be sent to the applicant and all base period employers, by mail or electronic transmission.

(c) If a base period employer did not provide wage detail information for the
applicant as required under section 268.044, or provided erroneous information, or
wage detail is not yet due and the applicant is using deleted text begin an alternatedeleted text end new text begin anew text end base period under
section 268.035, subdivision 4, paragraph (d), the commissioner may accept an applicant
certification of wage credits, based upon the applicant's records, and issue a determination
of benefit account.

(d) An employer must provide wage detail information on an applicant within five
calendar days of request by the commissioner, in a manner and format requested, when:

(1) the applicant is using deleted text begin an alternatedeleted text end new text begin anew text end base period under section 268.035,
subdivision 4, paragraph (d); and

(2) wage detail under section 268.044 is not yet required to have been filed by
the employer.

(e) The commissioner may, at any time within 24 months from the establishment of
a benefit account, reconsider any determination of benefit account and make an amended
determination if the commissioner finds that the wage credits listed in the determination
were incorrect for any reason. An amended determination of benefit account must be
promptly sent to the applicant and all base period employers, by mail or electronic
transmission. This subdivision does not apply to documents titled determinations of
eligibility or determinations of ineligibility issued under section 268.101.

(f) If an amended determination of benefit account reduces the weekly
unemployment benefit amount or maximum amount of unemployment benefits available,
any unemployment benefits that have been paid greater than the applicant was entitled
is considered an overpayment of unemployment benefits. A determination or amended
determination issued under this section that results in an overpayment of unemployment
benefits must set out the amount of the overpayment and the requirement under section
268.18, subdivision 1, that the overpaid unemployment benefits must be repaid.

Sec. 20.

Minnesota Statutes 2012, section 268.07, subdivision 3b, is amended to read:

Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application
was filed. An application for unemployment benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating at the time the application is filed. An application may be backdated only if
the applicant deleted text begin had no employmentdeleted text end new text begin was unemployednew text end during the period of the backdating.
If an individual attempted to file an application for unemployment benefits, but was
prevented from filing an application by the department, the application is effective the
Sunday of the calendar week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the
application for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit
account; and

(2) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal.

A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday
following the expiration of the benefit year on a prior benefit account. Except as allowed
under paragraph (c), an applicant may establish only one benefit account each 52 calendar
weeks.

Sec. 21.

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 with respect to which the applicant
is receiving, has received, or deleted text begin has filed for paymentdeleted text end new text begin will receivenew text end , equal to or in excess of the
applicant's weekly unemployment benefit amount, in the form of:

(1) vacation pay, sick pay, or personal time off pay, also known as "PTO," paid
upon temporary, indefinite, or seasonal separation. This clause does not apply to deleted text begin (i)
deleted text end vacation pay, sick pay, or personal time off pay, paidnew text begin (i)new text end upon a permanent separation from
employment, or (ii) deleted text begin vacation pay, sick pay, or personal time off pay, paiddeleted text end from a vacation
fund administered by a union or a third party not under the control of the employer;

(2) deleted text begin severance pay, bonus pay, anddeleted text end any deleted text begin otherdeleted text end payments, deleted text begin except earnings under
subdivision 5, and back pay under subdivision 6,deleted text end paid by an employer because ofdeleted text begin , upon,
or afterdeleted text end new text begin anew text end separation from employment, deleted text begin but onlydeleted text end new text begin such as severance pay and retention
pay,new text end if the payment is deleted text begin considereddeleted text end wages deleted text begin at the time of paymentdeleted text end under section 268.035,
subdivision 29new text begin . This clause does not apply to back pay under subdivision 6 or to vacation
pay, sick pay, or personal time off pay under clause (1)new text end ; or

(3) pension, retirement, or annuity payments from any plan contributed to by a base
period employer deleted text begin including the United States government, except Social Security benefits
that are provided for in subdivision 4deleted 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, new text begin paragraph (a), new text end clause (1).new text begin This clause does not apply to
Social Security benefits under subdivision 4.
new 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 if (i) the applicant deleted text begin immediately depositsdeleted text end new text begin , within
60 calendar days, makes a rollover contribution ofnew text end that payment in a qualified pension
plan or account, or (ii) 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).

(b) This subdivision applies to all the weeks of payment. Payments under paragraph
(a), clause (1), are applied to the period immediately following the last day of employment.
new text begin Payments under paragraph (a), clause (2), made within 13 weeks of the last day of
employment, are applied to the period immediately following the last day of employment.
new 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.

(c) If the payment is less than the applicant's weekly unemployment benefit amount,
unemployment benefits are reduced by the amount of the payment.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to paragraph (a) are effective July 1, 2013.
The amendments to paragraph (b) are effective for determinations and decisions issued
after June 30, 2013.
new text end

Sec. 22.

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

Subd. 4.

Social Security new text begin old age new text end benefits.

(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 begin for any week during
the benefit yeardeleted 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. The purpose of this paragraph is to ensure that an applicant
who is claiming Social Security benefits has demonstrated a desire and ability to work.

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

new text begin Subd. 4a. new text end

new text begin Social Security disability benefits. new text end

deleted text begin (c)deleted text end new text begin (a)new text end An applicant who is receiving,
has received, or has deleted text begin fileddeleted text end new text begin appliednew text end for primary Social Security disability benefits for any
week deleted text begin during the benefit year must be determined unavailable for suitable employmentdeleted text end new text begin is
ineligible for unemployment benefitsnew text end for that week, unless:

(1) the Social Security Administration approved the collecting of primary Social
Security disability benefits each month the applicant was employed during the base
period; or

(2) the applicant provides a statement from an appropriate health care professional
who is aware of the applicant's Social Security disability claim and the basis for that claim,
certifying that the applicant is available for suitable employment.

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

new text begin (c)new text end If deleted text begin onlydeleted text end new text begin an applicant meets the requirements of paragraph (a), new text end clause (2) deleted text begin applies,
thendeleted text end new text begin ,new text end 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 deleted text begin fileddeleted text end new text begin appliednew text end for, with respect to that
weekdeleted text begin ; provided, however, thatdeleted text end new text begin .new text end If the Social Security Administration determines that
deleted text begin an individualdeleted text end new text begin the applicantnew text end is not entitled to receive primary Social Security disability
benefits for any week the applicant has applied for those benefits, deleted text begin the 50 percent deduction
deleted text end new text begin then this paragraph new text end does not apply to that week.

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

(e) This subdivision does not apply to Social Security survivor benefits.

Sec. 23.

Minnesota Statutes 2012, section 268.085, subdivision 5, is amended to read:

Subd. 5.

Deductible earnings.

(a) If the applicant has earnings, including holiday
pay, with respect to any week, from employment, covered employment, noncovered
employment, self-employment, or volunteer work, equal to or in excess of the applicant's
weekly unemployment benefit amount, the applicant is ineligible for unemployment
benefits for that week.

(b) If the applicant has earnings, new text begin including holiday pay, new text end with respect to any week,
that is less than the applicant's weekly unemployment benefit amount, from employment,
covered employment, noncovered employment, self-employment, or volunteer work, 50
percent of the earnings are deducted from the weekly unemployment benefit amount.

(c) No deduction is made from an applicant's weekly unemployment benefit amount
for earnings from service in the National Guard or a United States military reserve unit or
from direct service as a volunteer firefighter or volunteer ambulance service personnel.
This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
for jury duty pay or for pay as an election judge.

(d) The applicant may report deductible earnings on continued requests for
unemployment benefits at the next lower whole dollar amount.

(e) Deductible earnings does not include any money considered a deductible
payment under subdivision 3, but includes all compensation considered wages under
section 268.035, subdivision 29, and any other compensation considered earned income
under state and federal law for income tax purposes.

Sec. 24.

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 begin occurring
during the benefit yeardeleted 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 for the
purposes of section 268.18, subdivision 1new 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 begin and not paid the applicant new text end must be:

(1) paid by the new text begin taxpaying or reimbursing new text end employer to the trust fund within 30
calendar days and new text begin is new text end subject 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 begin when 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 end applied tonew text begin thenew text end unemployment benefit deleted text begin overpayments
resulting from the payment of the back pay; anddeleted text end new 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

new text begin When implemented, this paragraph must produce the following results: (1) that
an employer neither overpays nor underpays the employer's proper portion of the
unemployment benefit costs; and (2) that the applicant is placed in the same position as
never having been paid the unemployment benefits.
new text end

(c) new text begin The new text end unemployment benefits deleted text begin paiddeleted text end new text begin considered overpaidnew text end the applicant deleted text begin must be
deleted text end new text begin under this subdivision are, according to section 268.047, subdivision 2, clause (8),
new text end 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 deleted text begin in the calendar quarter the trust fund receives paymentdeleted text end .

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

Sec. 25.

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 deleted text begin on the date and during
the time of day designated for the applicant for filing a continued request by electronic
transmissiondeleted text end new text begin during the week following the week for which payment is requestednew text end .

(c) If the electronic transmission continued request is not filed deleted text begin on the date and
during the time of day designateddeleted text end new 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 begin twodeleted text end new text begin threenew text end calendar weeks following the week deleted text begin in which
the date designated occurreddeleted text end new text begin for which payment is requestednew text end . If the continued request by
electronic transmission is not filed within deleted text begin twodeleted text end new text begin threenew text end calendar weeks following the week
deleted text begin in which the date designated occurreddeleted text end new 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. 26.

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 begin on the date required for the
applicant for filing a continued requestdeleted 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
requestednew text end .

(b) If the mail continued request for unemployment benefits is not filed deleted text begin on the date
designateddeleted text end new 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 begin twodeleted text end new text begin threenew text end calendar weeks following the week deleted text begin in which the
date designated occurreddeleted text end new text begin for which payment is requestednew text end . If the form is not filed within
deleted text begin twodeleted text end new text begin threenew text end calendar weeks following the week deleted text begin in which the date designated occurreddeleted text end new text begin for
which payment is requirednew 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 begin on the day
otherwise required for mailing, ordeleted text end within deleted text begin twodeleted text end new text begin threenew text end calendar weeks following the week deleted text begin in
which the date designated occurreddeleted text end new 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. 27.

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.new text begin A notice of
quitting is not considered a quit at the time the notice is given. A notice of quitting is an
expression of the employee's intention to quit the employment at a future time.
new text end

(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. 28.

Minnesota Statutes 2012, section 268.095, subdivision 3, is amended to read:

Subd. 3.

Good reason caused by the employer defined.

(a) A good reason caused
by the employer for quitting is a reason:

(1) that is directly related to the employment and for which the employer is
responsible;

(2) that is adverse to the worker; and

(3) that would compel an average, reasonable worker to quit and become
unemployed rather than remaining in the employment.

(b) The analysis required in paragraph (a) must be applied to the specific facts
of each case.

(c) If an applicant was subjected to adverse working conditions by the employer, the
applicant must complain to the employer and give the employer a reasonable opportunity
to correct the adverse working conditions before that may be considered a good reason
caused by the employer for quitting.new text begin This paragraph does not apply to unilateral reductions
in wages or hours.
new text end

(d) A reason for quitting employment is not considered a good reason caused by
the employer for quitting if the reason for quitting occurred because of the applicant's
employment misconduct.

(e) Notification of discharge in the future, including a layoff because of lack of work,
is not considered a good reason caused by the employer for quitting.

(f) An applicant has a good reason caused by the employer for quitting if it results
from sexual harassment of which the employer was aware, or should have been aware,
and the employer failed to take timely and appropriate action. Sexual harassment means
unwelcome sexual advances, requests for sexual favors, sexually motivated physical
contact or other conduct or communication of a sexual nature when:

(1) the applicant's submission to the conduct or communication is made a term
or condition of the employment;

(2) the applicant's submission to or rejection of the conduct or communication is the
basis for decisions affecting employment; or

(3) the conduct or communication has the purpose or effect of substantially
interfering with an applicant's work performance or creating an intimidating, hostile, or
offensive working environment.

(g) The definition of a good reason caused by the employer for quitting employment
provided by this subdivision is exclusive and no other definition applies.

Sec. 29.

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

Subd. 2a.

Employer-agent appeals filed online.

(a) If an agentnew text begin , including an
attorney-at-law,new text end 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 to an employee filing an appeal on behalf of an employer.

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

Sec. 30.

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

268.105 APPEALS.

Subdivision 1.

deleted text begin Evidentiarydeleted text end new text begin Notice ofnew text end hearing deleted text begin by unemployment law judgedeleted text end .

(a) Upon a timely appeal new text begin to a determination new text end having been filed, the deleted text begin departmentdeleted text end new text begin chief
unemployment law judgenew text end must send, by mail or electronic transmission, a notice of deleted text begin appeal
deleted text end new text begin hearingnew text end to all deleted text begin involveddeleted text end parties that an appeal has been filed, and that a deleted text begin de novo due process
evidentiarydeleted text end hearing will be deleted text begin scheduleddeleted text end new text begin conducted by an unemployment law judgenew text end .

new text begin (b)new text end The notice new text begin of hearing new text end must new text begin include materials that new text end set out the parties' rights and
responsibilities regarding the hearing. The deleted text begin noticedeleted text end new text begin materialsnew text end must explain that the facts
will be determined by the unemployment law judge based upon a preponderance of the
evidencedeleted text begin . The notice mustdeleted text end new text begin presented at the hearing andnew text end explain in clear and simple
language the meaning of the term "preponderance of the evidence."

new text begin (c)new text end The deleted text begin departmentdeleted text end new text begin notice of hearingnew text end must set a time and deleted text begin place for a de novo due
process evidentiary hearing and senddeleted text end new text begin date and must state the issues to be considered
and the method by which the hearing will be conducted. Thenew text end notice deleted text begin to any involved
applicant and any involved employer, by mail or electronic transmission,deleted text end new text begin must be sent
new text end not less than ten calendar days before the date of the hearing.new text begin The parties may waive the
ten-calendar-day notice requirement. Rescheduled hearings and continued hearings do not
require an additional ten-calendar-day notice.
new text end

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin The words and terms used in this subdivision have, for
purposes of the Minnesota Unemployment Insurance Law, the following meaning:
new text end

new text begin (1) "Decision" means a written ruling by an unemployment law judge on a particular
issue. Decisions under subdivision 1c are subject to request for reconsideration and
decisions under subdivision 2 are subject to review by the Minnesota Court of Appeals.
A decision must be specifically identified as a "decision."
new text end

new text begin (2) "Hearing" means the de novo evidentiary hearing under subdivision 1.
new text end

new text begin (3) "Order" means a written directive by an unemployment law judge dealing with
a matter of procedure. Orders are not subject to appeal. An order must be specifically
identified as an "order." An order is not a "decision" under the Minnesota Unemployment
Insurance Law.
new text end

new text begin (4) "Party" means an involved applicant or involved employer whose legal rights will
be directly determined in a hearing or on request for reconsideration. The department is not
a party to any proceedings before an unemployment law judge. The department becomes a
party, and is the primary responding party, before the Court of Appeals under subdivision 7.
new text end

new text begin Subd. 1b. new text end

new text begin Conduct of hearing. new text end

deleted text begin (b)deleted text end new text begin (a)new text end The deleted text begin evidentiarydeleted text end hearing is conducted by an
unemployment law judgenew text begin de novonew text end as an evidence gathering inquiry. At the beginning of
the hearing the unemployment law judge must fully explainnew text begin :new text end

new text begin (1) new text end how the hearing will be conducted,new text begin and the role of the judge in developing
the record;
new text end

new text begin (2) that the information obtained will be used to decide the parties' rights under the
Minnesota Unemployment Insurance Law;
new text end

new text begin (3) that certain other government officials may have access to information provided
at the hearing if allowed by statute and that the information provided may be disclosed
under a district court order;
new text end

new text begin (4)new text end that the deleted text begin applicant hasdeleted text end new text begin parties havenew text end the right to request that the hearing be
deleted text begin rescheduleddeleted text end new text begin continuednew text end so that documents or witnesses can be subpoenaeddeleted text begin ,deleted text end new text begin ; and
new text end

new text begin (5)new text end 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."

new text begin (b) new text end The unemployment law judge must ensure that all relevant facts are clearly and
fully developednew text begin and must assist all parties in the presentation of the evidencenew text end .

new text begin (c)new text end The department may adopt rules on deleted text begin evidentiarydeleted text end hearings. The rules need
not conform to common law or statutory rules of evidence and other technical rules of
procedure.

new text begin (d)new text end The deleted text begin departmentdeleted text end new text begin chief unemployment law judgenew text end has discretion regarding the
method by which the deleted text begin evidentiarydeleted text end hearing is conducted. deleted text begin A 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

new text begin Subd. 1c. new text end

new text begin Decisions. new text end

deleted text begin (c)deleted text end new text begin (a)new text end After the conclusion of the hearing, upon the evidence
obtained, the unemployment law judge must make findings of fact and decision and send
those, by mail or electronic transmission, to all deleted text begin involveddeleted text end parties. When the credibility of
deleted text begin an involved party ordeleted text end new text begin anew text end witness testifying in deleted text begin an evidentiarydeleted text end new 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 end new text begin (b)new text end If the appealing party fails to participate in the
deleted text begin evidentiarydeleted text end hearing, the unemployment law judge has the discretion to dismiss the appeal
by summary deleted text begin orderdeleted text end new 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 begin evidentiarydeleted text end hearing deleted text begin under 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.

deleted text begin (e) deleted text end new text begin (c) The unemployment law judge must issue a decision dismissing the appeal
as untimely if the judge decides the appeal to the determination was not filed within the
20-calendar-day limit. 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 Subd. 1d. new text end

new text begin Unemployment law judges. new text end

new text begin (a)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 (b) The chief unemployment law judge must assign the unemployment law judge
to conduct the hearing.new text end The chief unemployment law judge may transfer to another
unemployment law judge any proceedings pending before deleted text begin an unemployment lawdeleted text end new text begin anew text end judge
new text begin under this sectionnew text end .

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

new text begin Subd. 1e. new text end

new text begin Consolidation of issues; consideration of additional issues. new text end

new text begin Upon
request of a party or on the unemployment law judge's own motion, the judge may
consolidate for hearing issues involving the same parties. The unemployment law judge
may take testimony and render a decision on issues not listed on the notice of hearing if
each party is notified on the record, is advised of the right to object, and does not object. If
a party objects, the unemployment law judge must:
new text end

new text begin (1) continue the hearing to allow the party to prepare for consideration of the
additional issue; or
new text end

new text begin (2) direct that the department make and send to the parties, by mail or electronic
transmission, a determination on the issue.
new text end

Subd. 2.

Request for reconsideration.

(a) Any deleted text begin involved applicant, involved
employerdeleted text end new 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 begin 1deleted text end new text begin 1cnew text end , file a request for
reconsideration asking the deleted text begin unemployment lawdeleted text end judge to reconsider that decision. deleted text begin Section
268.103 applies to a request for reconsideration.deleted text end If a request for reconsideration is timely
filed, the unemployment law judge must issue deleted text begin an orderdeleted text end :

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

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

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

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

(1)new text begin that reconsideration is the procedure for the unemployment law judge to correct
any factual or legal errors in the decision, as well as correct any procedural errors,
including ordering an additional hearing when appropriate;
new text end

new text begin (2)new text end of the opportunity to provide comment on the request for reconsideration, and
the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits
offered or received into evidence at the deleted text begin evidentiarydeleted text end hearing;

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

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

deleted text begin (4)deleted text end new 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 not,
except for purposes of determining whether to order an additional deleted text begin evidentiarydeleted text end hearing,
consider any evidence that was not submitted at the deleted text begin evidentiarydeleted text end hearing deleted text begin conducted under
subdivision 1deleted text end . The unemployment law judge must order an additional deleted text begin evidentiarydeleted text end hearing if
deleted text begin an involveddeleted text end new text begin anew text end party shows that evidence which was not submitted at the deleted text begin evidentiarydeleted 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 begin evidentiarydeleted 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 begin involved applicant or involved employerdeleted text end new text begin partynew text end who filed the request for
reconsideration failed to participate in the deleted text begin evidentiarydeleted text end hearing deleted text begin conducted under subdivision
1deleted text end , an order setting aside the decision and directing that an additional deleted text begin evidentiarydeleted text end hearing
be conducted must be issued if the party who failed to participate had good cause for
failing to do so. deleted text begin In the notice that a request for reconsideration has been filed,deleted text end The party
who failed to participatenew text begin in the hearingnew text end must be informednew text begin , in the notice that a request for
reconsideration has been filed,new text end 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 begin unemployment lawdeleted text end judge must
deleted text begin statedeleted text end new text begin makenew text end thatnew text begin findingnew text end in the deleted text begin orderdeleted text end new text begin decisionnew text end issued under paragraph (a).

Submission of a written statement at the deleted text begin evidentiarydeleted text end hearing deleted text begin under 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 begin atdeleted text end new text begin innew text end the deleted text begin evidentiarydeleted text end hearing.

(e) A request for reconsideration must be decided by the unemployment law judge
who issued the decision under subdivision deleted text begin 1deleted text end new text begin 1cnew text end unless that deleted text begin unemployment 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; ordeleted text end

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

new text begin (f) A request for reconsideration that is filed more than 20 calendar days after the
sending of the decision under subdivision 1c must be dismissed by a decision as untimely.
new text end

deleted text begin (f)deleted text end new text begin (g)new text end The unemployment law judge must send to deleted text begin any involved applicant or involved
employerdeleted text end new text begin all partiesnew text end , by mail or electronic transmission, thenew text begin decision ornew text end order issued
under this subdivision. deleted text begin An orderdeleted text end new text begin A decision affirming ornew text end modifying the previously issued
findings of fact and decision deleted text begin or an order affirming the previously issued findings of fact
and decisiondeleted text end new text begin , or a decision dismissing the request for reconsideration as untimely,new text end is the
final department decision on the matter and is final and binding on the deleted text begin involved applicant
and involved employerdeleted text end new text begin partiesnew text end unless judicial review is sought under subdivision 7.

Subd. 3.

Withdrawal of appealnew text begin and request for reconsiderationnew text end .

(a) Any appeal
new text begin or request for reconsiderationnew text end that is pending before an unemployment law judge may be
withdrawn by the appealing deleted text begin persondeleted text end new text begin partynew text end , or an authorized representative of that deleted text begin person
deleted text end new text begin partynew text end , upon filing of a notice of withdrawal.

(b) The appealnew text begin or request for reconsiderationnew text end must, by order, be dismissed if a notice
of withdrawal is filed, unless an unemployment law judge directs that further deleted text begin adjudication
isdeleted text end new text begin proceedings arenew text end required for a proper result.new text begin The withdrawal of the appeal or request for
reconsideration is, unless the unemployment law judge orders further proceedings, treated
as if an appeal or request for reconsideration had not been filed.
new text end

(c) A notice of withdrawal may be filed by mail or deleted text begin bydeleted text end electronic transmission.

Subd. 3a.

new text begin Effect of new text end decisions.

(a) If an unemployment law judge's decision deleted text begin or order
deleted text end allows unemployment benefits to an applicant, the deleted text begin unemploymentdeleted text end benefits must be paid
regardless of any request for reconsideration or deleted text begin any appealdeleted text end new text begin a petitionnew text end to the Minnesota
Court of Appeals having been filed.

(b) If an unemployment law judge's decision deleted text begin or orderdeleted text end modifies or reverses a
determination, or new text begin on reconsideration, the decision modifies or reverses a new text end prior decision
deleted text begin of the unemployment law judge, allowing unemploymentdeleted text end new text begin which allowednew text end benefits deleted text begin to an
applicantdeleted text end , any benefits paid deleted text begin in accordance with the determination, or prior decision of the
unemployment law judge, isdeleted text end new text begin arenew text end considered an overpayment of those deleted text begin unemployment
deleted text end benefits. A decision deleted text begin or orderdeleted text end issued under this section that results in an overpayment of
unemployment benefits must set out the amount of the overpayment and the requirement
under section 268.18, subdivision 1, that the deleted text begin overpaid unemploymentdeleted text end benefits must be
repaid.

(c) If an unemployment law judge's deleted text begin orderdeleted text end new text begin decisionnew text end under subdivision 2 allows
unemployment benefits to an applicant under section 268.095 because of a quit or
discharge and the deleted text begin unemployment 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 begin unemploymentdeleted text end benefits paid deleted text begin the applicant and it is not considered an
overpayment of those unemployment benefits under section 268.18, subdivision 1deleted text end new text begin prior to
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 begin thedeleted text end new text begin a taxpayingnew text end employer.

(d) If an unemployment law judge, under subdivision 2, orders deleted text begin the taking ofdeleted text end new text begin an
new text end additional deleted text begin evidencedeleted text end new text begin hearingnew text end , the deleted text begin unemployment 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 begin unemployment
lawdeleted text end judge.

Subd. 4.

Oathsdeleted text begin ; subpoenasdeleted text end new text begin and affirmationsnew text end .

An unemployment law judge has
authority to administer oaths and affirmationsdeleted text begin , take depositions, anddeleted text end new text begin . Before testifying in a
hearing, every witness is required to declare to testify truthfully, by oath or affirmation.
The form of oath or affirmation is in sections 358.07 and 358.08.
new text end

new text begin Subd. 4a. new text end

new text begin Subpoenas. new text end

new text begin (a) The unemployment law judge has authority tonew text end issue
subpoenas to compel the attendance of witnesses and the production of documents and other
personal property considered necessary as evidence in connection with the subject matter
of deleted text begin an evidentiarydeleted text end new text begin anew text end hearing.new text begin A party may request issuance of a subpoena by contacting the
chief unemployment law judge, by mail or electronic transmission, sufficiently in advance
of the hearing to allow for service of the subpoena. A request must identify the subject
matter and necessity of the evidence sought.new text end The unemployment law judge must give full
consideration to a request for a subpoena and must not unreasonably deny a request for a
subpoena. If a subpoena request is initially denied, the unemployment law judge must, on
the deleted text begin unemployment lawdeleted text end judge's own motion, reconsider that request during the deleted text begin evidentiary
deleted text end hearing and rule on whether the request was properly denied. If the request was not
properly denied, the deleted text begin evidentiarydeleted text end hearing must be continued for issuance of the subpoena.

new text begin (b)new text end The subpoenas are enforceable through the district court in Ramsey County.

new text begin (c)new text end Witnesses subpoenaed, other than deleted text begin an involved applicant or involved employerdeleted text end new text begin a
partynew text end or officers and employees of an involved employer, must be paid by the department
the same witness fees as in a civil action in district court.

Subd. 5.

Use of evidence; data privacy.

(a) deleted text begin All testimony at any evidentiary
hearing conducted under subdivision 1 must be recorded.deleted text end 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 begin ordeleted text end new text begin ;
new text end

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

deleted text begin (b) Regardless of any provision of law to the contrary, if recorded testimony and
exhibits received into evidence at the evidentiary hearing are not requested during the time
period for filing a request for reconsideration, while a request for reconsideration is pending,
deleted text end

new text begin (3)new text end during the time for filing deleted text begin any appealdeleted text end new text begin a petitionnew text end under subdivision 7deleted text begin , or during the
pendency thereof, thatdeleted text end new text begin ; or
new text end

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

new text begin Regardless of any law to the contrary, recorded new text end testimony and 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 end new text begin (b)new text end Testimony obtained deleted text begin under subdivision 1,deleted text end new 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

Subd. 5a.

No collateral estoppel.

No findings of fact or decision or order issued by
an unemployment law judge may be held conclusive or binding or used as evidence in
any separate or subsequent action in any other forum, be it contractual, administrative, or
judicial, except proceedings provided for under this chapterdeleted text begin ,deleted text end new text begin . This subdivision applies
new text end regardless of whether the new text begin other new text end action involves the same or related parties or involves
the same facts.

Subd. 6.

Representationdeleted text begin ; feesdeleted text end new text begin before an unemployment law judgenew text end .

(a) In any
proceeding under subdivision 1 or 2, deleted text begin an applicant or involved employerdeleted text end new text begin a party new text end may
be represented by any agent.new text begin Except for an attorney-at-law, no person may charge an
applicant a fee of any kind for representing, assisting, or advising the applicant in a
hearing or on reconsideration.
new text end

(b)new text begin An unemployment law judge may refuse to allow any person to represent a party
in any proceeding before a judge if that person repeatedly fails to follow the instructions
of the judge or acts in an unethical manner.
new text end

new text begin Subd. 6a. new text end

new text begin No fees. new text end

new text begin (a) new text end Except for services provided by an attorney-at-law, an
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 (b) No attorney fees may be awarded against the department as a result of any
proceedings under this chapter.
new text end

Subd. 7.

Judicial review.

(a) The Minnesota Court of Appeals must, by writ of
certiorari to the department, review the unemployment law judge's decisionnew text begin issued under
subdivision 2new text end , provided a petition for the writ is filed with the court and a copy is served
upon the new text begin chief new text end unemployment law judge or the commissioner and any other deleted text begin involveddeleted text end party
within 30 calendar days of the sending of the deleted text begin unemployment lawdeleted text end judge's deleted text begin order under
subdivision 2deleted text end new text begin decision on reconsiderationnew text end .

(b) Any employer petitioning for a writ of certiorari must pay to the court the required
filing feenew text begin ,new text end andnew text begin ,new text end upon the service of the writnew text begin ,new text end must furnish a cost bond to the department
in accordance with the Rules of Civil Appellate Procedure. If the employer requests a
written transcript of the testimony received at the deleted text begin evidentiarydeleted text end hearing deleted text begin conducted under
subdivision 1deleted text end , the employer must pay new text begin the cost of preparing the transcript new text end to the department
deleted text begin the cost of preparing the transcriptdeleted text end . That money is credited to the administration account.

(c) Upon issuance deleted text begin by the Minnesota Court of Appealsdeleted text end of a writ of certiorari as a result
of an applicant's petition, the department must furnish to the applicant at no cost a written
transcript of any testimony received at the deleted text begin evidentiarydeleted text end hearing deleted text begin conducted under subdivision
1deleted text end , and, if requested, a copy of all exhibits entered into evidence. deleted text begin No filing fee or cost bond is
required of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.
deleted text end

(d) The Minnesota Court of Appeals may affirm the decision of the unemployment
law judge or remand the case for further proceedings; or it may reverse or modify the
decision if the substantial rights of the petitioner may have been prejudiced because the
findings, inferences, conclusion, or decision are:

(1) in violation of constitutional provisions;

(2) in excess of the statutory authority or jurisdiction of the department;

(3) made upon unlawful procedure;

(4) affected by other error of law;

(5) unsupported by substantial evidence in view of the entire record as submitted; or

(6) arbitrary or capricious.

(e) The department is considered the primary responding party to any judicial action
involving an unemployment law judge's decisionnew text begin , because unemployment benefits are,
under section 268.069, subdivision 2, paid from state fundsnew text end . The department may be
represented by an attorney licensed to practice law in Minnesota who is an employee
of the department.

Sec. 31.

Minnesota Statutes 2012, section 268.131, subdivision 1, is amended to read:

Subdivision 1.

Cooperation with other states on combining wages.

(a) In
accordance with the requirements of United States Code, title 26, section 3304(a)(9)(B),
the Federal Unemployment Tax Act, the commissioner must participate in reciprocal
arrangements with other states for the payment of unemployment benefits on the basis
of combining an applicant's wages from multiple states for the purposes of collecting
unemployment benefits from a single state. The reciprocal agreement must include
provisions for applying the base period of a single state law to a benefit account involving
the combining of an applicant's wages and employment and avoiding the duplicate use of
wages by reason of such combining. The commissioner may not enter into any reciprocal
arrangement unless it contains provisions for reimbursements to the trust fund, by the
other state, for unemployment benefits paid from the trust fund to applicants based upon
wages and employment covered under the laws of the other state.

(b) The commissioner is authorized to pay unemployment benefits based upon
an applicant's wages paid in covered employment in another state only if the applicant
is combining Minnesota wage credits with the wages paid in covered employment from
another state or states.

(c) Section 268.23 does not apply to this subdivision.

new text begin (d) Section 268.07, subdivision 3b, paragraph (d), limiting an applicant to one
benefit account every 52 calendar weeks, includes combined wage benefit accounts
authorized under this section.
new text end

deleted text begin (d)deleted text end new text begin (e)new text end On any reciprocal arrangement, the wages paid an applicant from employment
covered under an unemployment insurance program of another state are considered
wages from covered employment for the purpose of determining the applicant's rights to
unemployment benefits under the Minnesota Unemployment Insurance Law.

Sec. 32.

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

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

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

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

Sec. 33.

Minnesota Statutes 2012, section 268.18, subdivision 1, is amended to read:

Subdivision 1.

Nonfraud overpayment.

(a) Any applicant who (1) because of a
determination or amended determination issued under section 268.07 or 268.101, or any
other section of this chapter, or (2) because of an deleted text begin appealdeleted text end new text begin unemployment law judge'snew text end decision
deleted text begin or orderdeleted text end under section 268.105, has received any unemployment benefits that the applicant
was held not entitled to, must promptly repay the unemployment benefits to the trust fund.

(b) If the applicant fails to repay the unemployment benefits overpaid, the
commissioner may offsetnew text begin the amount of the overpaymentnew text end from any future unemployment
benefits otherwise payable deleted text begin the amount of the overpaymentdeleted text end . Except when the overpayment
resulted because the applicant failed to report deductible earnings or deductible or benefit
delaying payments, no single offset may exceed 50 percent of the amount of the payment
from which the offset is made. The overpayment may also be collected by the methods
allowed under state and federal law.

(c) If an applicant has been overpaid unemployment benefits under the law of
another state, because of a reason other than fraud, and that state certifies that the applicant
is liable under its law to repay the unemployment benefits and requests the commissioner
to recover the overpayment, the commissioner may offset from future unemployment
benefits otherwise payable the amount of overpayment, except that no single offset may
exceed 50 percent of the amount of the payment from which the offset is made.

Sec. 34.

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

Subd. 2b.

Interest.

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

(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.

(c) Interest payments under this section are credited to the trust fund.

Sec. 35.

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. 36.

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

268.186 deleted text begin RECORDS;deleted text end AUDITSnew text begin , RECORD KEEPINGnew text end .

new text begin Subdivision 1. new text end

new text begin Audits. new text end

(a) deleted text begin Each employer must keep true and accurate records for
the periods of time and containing the information the commissioner may require by rule.
deleted text end For the purpose of administering this chapter, the commissioner has the power to audit,
examine, or cause to be supplied or copied, any books, correspondence, papers, records,
or memoranda that deleted text begin are relevant, whether the books, correspondence, papers, records, or
memorandadeleted text end are the property of or in the possession of deleted text begin thedeleted text end new 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 are necessary, for an audit.
new text end

deleted text begin (b) Anydeleted text end new text begin Annew text end employernew text begin or other personnew 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 begin The penalty collected is credited to the trust fund.
new text end

new text begin (b) new text end An employernew text begin or other personnew 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.

deleted text begin (c) The commissioner may make summaries, compilations, photographs,
duplications, or reproductions of any records, or reports that the commissioner considers
advisable for the preservation of the information contained therein. Any summaries,
compilations, photographs, duplications, or reproductions 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) Regardless of any law to the contrary, the commissioner may provide for the
destruction of any records, reports, or reproductions, or other papers that are no longer
necessary for the administration of this chapter, including any required audit. In addition,
the commissioner may provide for the destruction or disposition of any record, report,
or other paper from which the information has been electronically captured and stored,
or that has been photographed, duplicated, or reproduced.
deleted text end

new text begin Subd. 2. new text end

new text begin Record keeping. new text end

new text begin (a) Each person must establish, maintain, and preserve
records on individuals performing services for the person as employees or as independent
contractors. The records must be preserved for a period of not less than four years after
the calendar year in which the compensation for the services was paid or was payable.
new text end

new text begin (b) Each employer must maintain records on each employee, in covered and
noncovered employment, showing the following:
new text end

new text begin (1) the employee's name and complete resident address;
new text end

new text begin (2) the employee's Social Security number;
new text end

new text begin (3) the days in which the employee performed services;
new text end

new text begin (4) the location where the employee performed services;
new text end

new text begin (5) the wages paid to the employee and wages due but not paid for services;
new text end

new text begin (6) the employee's rate of pay; and
new text end

new text begin (7) the amounts paid to the employee as allowances or reimbursement for travel
or other activity that were not included as wages. The records must show each item of
expense incurred during each pay period or calendar month.
new text end

new text begin (c) For each employee who performs services both in Minnesota and outside of
Minnesota, the records required to be maintained, in addition to paragraph (b), include:
new text end

new text begin (1) a list of the states in which the employee performs services other than temporary
or incidental services, and the dates services were performed in each state;
new text end

new text begin (2) the state in which the employer maintains a base of operations used by the
employee; and
new text end

new text begin (3) the state from which the services are directed and controlled.
new text end

Sec. 37.

new text begin [268.187] DEPARTMENT RECORDS; DESTRUCTION.
new text end

new text begin (a) The commissioner may make summaries, compilations, duplications, or
reproductions of any records pertaining to this chapter that the commissioner considers
advisable for the preservation of the information.
new text end

new text begin (b) Regardless of any law to the contrary, the commissioner may destroy any
records that are no longer necessary for the administration of this chapter. In addition, the
commissioner may destroy any record from which the information has been electronically
captured and stored.
new text end

Sec. 38.

Minnesota Statutes 2012, section 268.192, subdivision 1a, is amended to read:

Subd. 1a.

Agreements not allowed.

new text begin (a) new text end An employer may not make an agreement
that in exchange for the employer agreeing not to contest the payment of unemployment
benefits, including agreeing not to provide information to the department, an employee will:

(1) quit the employment;

(2) take a leave of absence;

(3) leave the employment temporarily or permanently; or

(4) withdraw a grievance or appeal of a termination.

new text begin (b) Paragraph (a) does not apply if the parties to the agreement acknowledge in
writing that they are aware of sections 268.069, subdivision 2, and 268.182, subdivision 2.
new text end

new text begin (c) new text end An agreement that violates this subdivision has no effect under this chapter.

Sec. 39.

Minnesota Statutes 2012, section 268.194, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

There is established as a special state trust fund,
separate and apart from all other public money or funds of this state, an unemployment
insurance trust fund, that is administered by the commissioner exclusively for the payment
of unemployment benefits. This trust fund consists of:

(1) all taxes collected;

(2) interest earned upon any money in the trust fund;

(3) reimbursements paid by nonprofit organizations and the state and political
subdivisions;

(4) tax rate buydown payments under section 268.051, subdivision 7;

(5) any money received as a loan from the federal unemployment trust fund in
accordance with United States Code, title 42, section 1321, of the Social Security Act;

(6) any deleted text begin otherdeleted text end money received under a reciprocal unemployment benefit arrangement
with the federal government or any other state;

(7) money recovered on overpaid unemployment benefits deleted text begin except, if allowed by
federal law, five percent of any recovered amount is credited to the administration accountdeleted text end ;

(8) all money credited to the account under this chapter;

(9) all money credited to the account of Minnesota in the federal unemployment
trust fund under United States Code, title 42, section 1103, of the Social Security Act,
also known as the Reed Act; and

(10) all money received for the trust fund from any other source.

Sec. 40.

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 that is deposited
into this account is continuously available to the commissioner for expenditure to
administer the Minnesota unemployment insurance program, and does not lapse at any
time. The administration account consists of:

(1) all money received from the federal government to administer the Minnesota
unemployment insurance program, new text begin or new text end any federal unemployment insurance programdeleted text begin , or
assistance provided to any other state to administer that state's unemployment insurance
programdeleted text end ;

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)deleted text end new text begin (2)new text end any money received as compensation for services or facilities supplied to
the federal government or any other state;

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

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

deleted text begin (6)deleted text end new text begin (5)new text end any proceeds from the sale or disposition of any equipment or supplies that
may no longer be necessary for the proper administration of deleted text begin those sectionsdeleted text end new 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 mustnew text begin onlynew text end be spent for the deleted text begin purposes 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. 41.

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 that is subject to an appeal to an
unemployment law judge must indicate the day of the week and the date, for example,
Tuesday, August 1, 2006, that the determination is final and no longer subject to an appeal.

(b) Every decision issued by an unemployment law judge under section 268.105,
subdivision deleted text begin 1deleted text end new text begin 1cnew 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. 42.

Laws 2012, chapter 201, article 1, section 3, the effective date, is amended to
read:

EFFECTIVE DATE.

This section is effective July 1, 2012, except the amendments
to paragraph (d) are effective for penalties deleted text begin imposeddeleted text end new text begin creditednew text end on or after July 1, 2013.

new text begin EFFECTIVE DATE. new text end

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

Sec. 43. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 3310.2905, subpart 2; 3310.2910; 3310.2914, subpart
1; 3310.2916; 3310.2919; 3310.2920; 3315.0200, subpart 1; 3315.0203; 3315.0211;
3315.0212; 3315.0213; 3315.0501, subparts 1 and 2; 3315.0555, subpart 1; 3315.0801;
3315.0805; 3315.0810; 3315.0815; 3315.0820; 3315.0825; 3315.0830; 3315.0835;
3315.0840; 3315.0845; 3315.0901; 3315.0905; 3315.1001; and 3315.1010, new text end new text begin are repealed.
new text end

Sec. 44. new text begin EFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective July 1, 2013.
new text end

HF 1137

Bill Text Versions

Current Version - as introduced

ARTICLE 1

FEDERAL CONFORMITY

Section 1.

Subdivision 1.

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

Sec. 2.

Subd. 2.

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

Sec. 3.

new text begin Subd. 2a. new text end

new text begin Notice to participating employee. new text end

Sec. 4.

Subd. 3.

Applicant requirements.

Sec. 5.

Subd. 4.

Amount of unemployment benefits available.

Sec. 6.

Subd. 5.

Cancellationnew text begin ; modificationnew text end .

Sec. 7.

new text begin Subd. 6. new text end

new text begin Federal law. new text end

Sec. 8.

268.23 SEVERABLE.

Sec. 9. new text begin COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK FUNDS.new text end

new text begin EFFECTIVE DATE. new text end

Sec. 10. new text begin EFFECTIVE DATE.new text end

ARTICLE 2

HOUSEKEEPING AND POLICY

Section 1.

Subd. 4.

Use of funds.

Sec. 2.

new text begin Subd. 11. new text end

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

Sec. 3.

268.033 COMPUTATION OF TIME.

Sec. 4.

Subd. 2.

Agricultural employment.

Sec. 5.

Subd. 4.

Base period.

Sec. 6.

Subd. 11.

Covered agricultural employment.

Sec. 7.

Subd. 12.

Covered employment.

Sec. 8.

Subd. 15.

Employment.

Sec. 9.

Subd. 22.

Statenew text begin and United Statesnew text end .

Sec. 10.

Subd. 29.

Wages.

Sec. 11.

Subdivision 1.

Employer registration.

new text begin EFFECTIVE DATE. new text end

Sec. 12.

268.043 DETERMINATIONS OF COVERAGE.

Sec. 13.

Subd. 4a.

Actions that avoid taxesnew text begin or reimbursementsnew text end .

Sec. 14.

Subd. 5.

Tax rate for new employers.

new text begin EFFECTIVE DATE. new text end

Sec. 15.

Subd. 5.

Interest on amounts past due.

new text begin EFFECTIVE DATE. new text end

Sec. 16.

Sec. 9. new text begin COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK
FUNDS.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

Application for unemployment benefits; determination of benefit
account.

Continued request for unemployment benefits by electronic
transmission.