1.1A bill for an act1.2relating to unemployment insurance; making various policy, housekeeping, and 1.3style changes to the Minnesota Unemployment Insurance Law; incorporating 1.4certain administrative rules into Minnesota Statutes; modifying fraud penalties; 1.5providing extra benefits for certain workers laid off from Ainsworth Lumber 1.6Company and Northwest Airlines; amending Minnesota Statutes 2006, sections 1.7268.001; 268.03, subdivisions 1, 2; 268.035, subdivisions 1, 4, 9, 10, 11, 12, 13, 1.814, 15, 17, 20, 21a, 23, 23a, 24, 26, 29, 30, by adding a subdivision; 268.042, 1.9subdivisions 1, 3, 4; 268.043; 268.0435; 268.044, subdivisions 1, 1a, 2, 3, 4; 1.10268.045, subdivision 1; 268.046; 268.047, subdivisions 1, 2, 3, 5; 268.051, 1.11subdivisions 1, 1a, 2, 3, 4, 4a, 5, 6, 7, 8, 9; 268.052, subdivisions 1, 2, 3, 4, 5; 1.12268.0525; 268.053, subdivisions 1, 2, 3; 268.057, subdivisions 1, 2, 3, 4, 5, 6, 7, 1.1310; 268.058; 268.059; 268.0625, subdivisions 4, 5; 268.063; 268.064; 268.065, 1.14subdivisions 1, 3; 268.066; 268.067; 268.0675; 268.068; 268.069, subdivisions 1.151, 2, 3; 268.07, subdivisions 1, 2, 3a, 3b; 268.084; 268.085, subdivisions 1, 2, 1.163, 3a, 4, 5, 6, 7, 8, 9, 11, 12, 13, 13a, 13b, 13c, 16; 268.086, subdivisions 1, 2, 1.173, 5, 6, 7, 8, 9; 268.087; 268.095, subdivisions 1, 2, 3, 4, 5, 6, 6a, 7, 10, 11; 1.18268.101; 268.103, subdivisions 1, 2; 268.105, subdivisions 1, 2, 3, 3a, 4, 5, 1.196, 7; 268.115; 268.125, subdivisions 3, 4, 5; 268.131, subdivision 1; 268.135; 1.20268.145, subdivisions 1, 2, 3; 268.155; 268.18, subdivisions 1, 2, 2b, 4, 5, 1.216; 268.182, subdivisions 1, 2; 268.184, subdivisions 1, 1a; 268.186; 268.188; 1.22268.19, subdivisions 1, 1a, 2; 268.192; 268.194, subdivisions 1, 2, 3, 4, 5, 6; 1.23268.196, subdivisions 1, 3; 268.20; 268.21; 268.22; 268.23; proposing coding for 1.24new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes 2006, 1.25sections 268.0435; 268.0511; 268.085, subdivision 10; 268.103, subdivision 1.264; Minnesota Rules, parts 3315.0210; 3315.0220; 3315.0515; 3315.0520; 1.273315.0525; 3315.0530, subparts 2, 3, 4, 5, 6; 3315.0540; 3315.0550; 3315.0910, 1.28subparts 1, 2, 3, 4, 5, 6, 7, 8; 3315.1005, subparts 1, 3; 3315.1315, subpart 4; 1.293315.2010; 3315.2810, subparts 2, 4.1.30BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.31ARTICLE 11.32POLICY CHANGES1.33    Section 1. Minnesota Statutes 2006, section 268.035, subdivision 4, is amended to read:2.1    Subd. 4. Base period. "Base period" means:2.2    (1) the first four of the last five completed calendar quarters prior to before the 2.3effective date of an applicant's benefit account application for unemployment benefits2.4as set forth below:

2.52.62.72.8If the benefit accountapplication for unemployment benefits is 
                  		effective on or between these 
                  		dates:The base period is the 
                  		prior:2.9January 1 - March 31October 1 - September 302.10April 1 - June 30January 1 - December 312.11July 1 - September 30April 1 - March 312.12October 1 - December 31July 1 - June 30

2.13    (2) if the applicant has insufficient wage credits to establish a benefit account under 2.14clauses (1) and (3), and during the base period under clause (1) an applicant received 2.15workers' compensation for temporary disability under chapter 176 or a similar federal law 2.16or similar law of another state, or if an applicant whose own serious illness caused a loss 2.17of work for which the applicant received compensation for loss of wages from some other 2.18source, the applicant may request a an extended base period as follows:2.19    (i) if an applicant was compensated for a loss of work of seven to 13 weeks, the base 2.20period shall be is the first four of the last six completed calendar quarters prior to before2.21the effective date of the benefit account application for unemployment benefits;2.22    (ii) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base 2.23period shall be is the first four of the last seven completed calendar quarters prior to before2.24the effective date of the benefit account application for unemployment benefits;2.25    (iii) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base 2.26period shall be is the first four of the last eight completed calendar quarters prior to before2.27the effective date of the benefit account application for unemployment benefits; and2.28    (iv) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base 2.29period shall be is the first four of the last nine completed calendar quarters prior to before2.30the effective date of the benefit account application for unemployment benefits;2.31    (3) if the applicant qualifies for a base period under clause (2), but has insufficient 2.32wage credits to establish a benefit account, the applicant may request a  under clause (1), 2.33an alternate base period of the last four completed calendar quarters prior to before the 2.34date the applicant's benefit account application for unemployment benefits is effective will 2.35be used. This base period may can be used only once during any five-calendar-year period2.3630 calendar days or more after the end of the last completed quarter, when a wage detail 2.37report has been, or should have been, filed for that quarter under section 268.044; and3.1    (4) no base period under clause (1), (2), or (3) shall may include wage credits upon 3.2which a prior benefit account was established.3.3EFFECTIVE DATE.This section applies to applications for unemployment 3.4benefits filed effective on or after September 30, 2007.3.5    Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 17, is amended to read:3.6    Subd. 17. Filing; filed. "Filing" or "filed" means the delivery of any document to 3.7the commissioner or any of the commissioner's agents, or the depositing of the document 3.8in the United States mail properly addressed to the department with postage prepaid, 3.9in which case the document shall be is considered filed on the day indicated by the 3.10cancellation mark of the United States Postal Service.3.11    If, where allowed, an application, protest, appeal, or other required action is made 3.12by electronic transmission, it shall be is considered filed on the day received by the 3.13department.3.14EFFECTIVE DATE.This section is effective September 30, 2007.3.15    Sec. 3. Minnesota Statutes 2006, section 268.043, is amended to read:3.16268.043 DETERMINATIONS OF COVERAGE.3.17    (a) The commissioner, upon the commissioner's own motion or upon application 3.18of a person, shall determine if that organization or person is an employer or whether 3.19services performed for it constitute employment and covered employment, or whether 3.20the compensation for services constitutes wages, and shall notify the person of the 3.21determination. The determination shall be is final unless the organization or person, within 3.2230 20 calendar days after sending of the determination by mail or electronic transmission, 3.23files a protest. Upon receipt of a protest, the commissioner shall review all available 3.24evidence and determine whether an error has been made. The commissioner shall send 3.25to the person, by mail or electronic transmission, an affirmation or redetermination. The 3.26affirmation or redetermination shall be final unless, within 30 calendar days after sending 3.27of the affirmation or redetermination to the person by mail or electronic transmission, an 3.28appeal is filed. Proceedings on the appeal shall be are conducted in accordance with 3.29section 
         268.105.3.30    (b) No person shall may be initially determined an employer, or that services 3.31performed for it were in employment or covered employment, for periods more than four 3.32years prior to before the year in which the determination is made, unless the commissioner 3.33finds that there was fraudulent action to avoid liability under this chapter.4.1EFFECTIVE DATE.This section applies to determinations issued on or after 4.2September 30, 2007.4.3    Sec. 4. Minnesota Statutes 2006, section 268.047, subdivision 2, is amended to read:4.4    Subd. 2. Exceptions for all employers. Unemployment benefits paid shall will not 4.5be used in computing the future tax rate of a taxpaying base period employer or charged 4.6to the reimbursable account of a base period nonprofit or government employer that has 4.7elected to be liable for reimbursements when:4.8    (1) the applicant was discharged from the employment because of aggravated 4.9employment misconduct as determined under section  
         268.095. This exception shall apply4.10applies only to unemployment benefits paid for periods after the applicant's discharge 4.11from employment; 4.12    (2) an applicant's discharge from that employment occurred because a law required 4.13removal of the applicant from the position the applicant held;4.14    (3) the employer is in the tourist or recreation industry and is in active operation of 4.15business less than 15 calendar weeks each year and the applicant's wage credits from the 4.16employer are less than 600 times the applicable state or federal minimum wage;4.17    (4) the employer provided regularly scheduled part-time employment to the 4.18applicant during the applicant's base period and continues to provide the applicant with 4.19regularly scheduled part-time employment during the benefit year of at least 90 percent 4.20of the part-time employment provided in the base period, and is an involved employer 4.21because of the applicant's loss of other employment. This exception shall terminate4.22terminates effective the first week that the employer fails to meet the benefit year 4.23employment requirements. This exception shall apply applies to educational institutions 4.24without consideration of the period between academic years or terms;4.25    (4) (5) the employer is a fire department or firefighting corporation or operator 4.26of a life-support transportation service, and continues to provide employment for the 4.27applicant as a volunteer firefighter or a volunteer ambulance service personnel during the 4.28benefit year on the same basis that employment was provided in the base period. This 4.29exception shall terminate terminates effective the first week that the employer fails to meet 4.30the benefit year employment requirements;4.31    (5) (6) the applicant's unemployment from this employer was a direct result of 4.32the condemnation of property by a governmental agency, a fire, flood, or act of nature, 4.33where 25 percent or more of the employees employed at the affected location, including 4.34the applicant, became unemployed as a result. This exception shall does not apply where 5.1the unemployment was a direct result of the intentional act of the employer or a person 5.2acting on behalf of the employer;5.3    (6) (7) the unemployment benefits were paid by another state as a result of the 5.4transferring of wage credits under a combined wage arrangement provided for in section  5.5268.131
         ; 5.6    (7) (8) the applicant stopped working because of a labor dispute at the applicant's 5.7primary place of employment if the employer was not a party to the labor dispute;5.8    (8) (9) the unemployment benefits were determined overpaid unemployment benefits 5.9under section  
         268.18; or 5.10    (9) (10) the trust fund was reimbursed for the unemployment benefits by the federal 5.11government.5.12EFFECTIVE DATE.This section applies to benefits paid on benefit accounts filed 5.13effective on or after September 30, 2007.5.14    Sec. 5. Minnesota Statutes 2006, section 268.047, subdivision 5, is amended to read:5.15    Subd. 5. Notice of unemployment benefits paid. (a) The commissioner shall notify 5.16each employer at least quarterly by mail or electronic transmission of the unemployment 5.17benefits paid each applicant that will be used in computing the future tax rate of a 5.18taxpaying employer, or that have been charged to the reimbursable account of a nonprofit 5.19or government employer that has elected to be liable for reimbursements.5.20    (b) A notice under this subdivision shall is not be subject to protest or appeal. The 5.21commissioner may at any time upon the commissioner's own motion correct any error that 5.22resulted in an incorrect notice under paragraph (a) and issue a corrected notice.5.23EFFECTIVE DATE.This section is effective September 30, 2007.5.24    Sec. 6. Minnesota Statutes 2006, section 268.051, subdivision 1, is amended to read:5.25    Subdivision 1. Payments. (a) Unemployment insurance taxes and any additional 5.26assessments, fees, or surcharges shall accrue and become payable by each employer for 5.27each calendar year on the taxable wages that the employer paid to employees in covered 5.28employment, except for:5.29    (1) nonprofit organizations that elect to make reimbursements as provided in section 5.30268.053
         ; and5.31    (2) the state of Minnesota and political subdivisions that make reimbursements, 5.32unless they elect to pay taxes as provided in section 
         268.052.6.1    Except as allowed under section 268.0511, Each employer shall must pay taxes 6.2quarterly, at the employer's assigned tax rate under subdivision 6, on the taxable wages 6.3paid to each employee. The commissioner shall compute the tax due from the wage 6.4detail report required under section 
         268.044 and notify the employer of the tax due. The 6.5taxes and any additional special assessments, fees, or surcharges shall must be paid to the 6.6trust fund and must be received by the department on or before the last day of the month 6.7following the end of the calendar quarter.6.8    (b) The tax amount computed, if not a whole dollar, shall be is rounded down to the 6.9next lower whole dollar.6.10    (c) If for any reason the wages on the wage detail report under section 
         268.044 are 6.11adjusted for any quarter, the commissioner shall recompute the taxes due for that quarter 6.12and assess the employer for any amount due or credit the employer as appropriate.6.13EFFECTIVE DATE.This section is effective January 1, 2008.6.14    Sec. 7. Minnesota Statutes 2006, section 268.051, subdivision 5, is amended to read:6.15    Subd. 5. Tax rate for new employers. (a) Each new taxpaying employer that does 6.16not qualify for an experience rating under subdivision 3, except new employers in a high 6.17experience rating industry, shall must be assigned, for a calendar year, a tax rate the higher 6.18of (1) one percent, or (2) the tax rate computed, to the nearest one-hundredth of a percent, 6.19by dividing the total amount of unemployment benefits paid all applicants during the 48 6.20calendar months ending on June 30 of the prior calendar year by the total taxable wages of 6.21all taxpaying employers during the same period, plus the applicable base tax rate and any 6.22additional assessments under subdivision 2, paragraph (d).6.23    (b) Each new taxpaying employer in a high experience rating industry that does not 6.24qualify for an experience rating under subdivision 3, shall must be assigned, for a calendar 6.25year, a tax rate of  
         8.00 percent, plus the applicable base tax rate and any additional 6.26assessments under subdivision 2, paragraph (d). 6.27    An employer is considered to be in a high experience rating industry if:6.28    (1) the employer is engaged in residential, commercial, or industrial construction, 6.29including general contractors;6.30    (2) the employer is engaged in sand, gravel, or limestone mining;6.31    (3) the employer is engaged in the manufacturing of concrete, concrete products, 6.32or asphalt; or6.33    (4) the employer is engaged in road building, repair, or resurfacing, including bridge 6.34and tunnels and residential and commercial driveways and parking lots.7.1    (c) The commissioner shall send to the new employer, by mail or electronic 7.2transmission, notice of the tax rate assigned. An employer may protest appeal the 7.3assignment of a tax rate in accordance with the procedures in subdivision 6, paragraph (c).7.4EFFECTIVE DATE.This section applies to tax rate notices issued on or after 7.5September 30, 2007.7.6    Sec. 8. Minnesota Statutes 2006, section 268.051, subdivision 6, is amended to read:7.7    Subd. 6. Notice of tax rate. (a) On or before each December 15, the commissioner 7.8shall notify each employer by mail or electronic transmission of the employer's tax rate, 7.9along with any additional assessments, fees, or surcharges, for the following calendar 7.10year. The notice shall must contain the base tax rate and the factors used in determining 7.11the employer's experience rating. Unless a protest an appeal of the tax rate is made, 7.12the computed tax rate shall be is final, except for fraud or recomputation required 7.13under subdivision 4 or 4a, and shall be is the rate at which taxes shall must be paid. A 7.14recomputed tax rate under subdivision 4 or 4a shall be is the rate applicable for the quarter 7.15that includes the date of acquisition and any quarter thereafter during the calendar year in 7.16which the acquisition occurred. The tax rate shall is not be subject to collateral attack by 7.17way of claim for a credit adjustment or refund, or otherwise.7.18    (b) If the legislature, subsequent to after the sending of the tax rate, changes any of 7.19the factors used to determine the rate, a new tax rate based on the new factors shall must7.20be computed and sent to the employer.7.21    (c) A review of an employer's tax rate may be obtained by the employer filing a 7.22protest an appeal within 30 20 calendar days from the date the tax rate notice was sent 7.23to the employer. Upon receipt of the protest, the commissioner shall review the tax rate 7.24to determine whether or not there has been any error in computation or assignment of 7.25the tax rate. The commissioner shall either affirm or make a redetermination of the 7.26rate and a notice of the affirmation or redetermination shall be sent to the employer by 7.27mail or electronic transmission. The affirmation or redetermination shall be final unless 7.28the employer files an appeal within 30 calendar days after the date the affirmation or 7.29redetermination was sent. Proceedings on the appeal shall be are conducted in accordance 7.30with section 
         268.105.7.31    (d) The commissioner may at any time upon the commissioner's own motion correct 7.32any error in the computation or the assignment of an employer's tax rate.7.33EFFECTIVE DATE.This section is effective for determinations issued on or 7.34after September 30, 2007. 8.1    Sec. 9. Minnesota Statutes 2006, section 268.053, subdivision 2, is amended to read:8.2    Subd. 2. Determination, protest, and appeal. The commissioner shall notify each 8.3nonprofit organization by mail or electronic transmission of any determination of its 8.4status as an employer with covered employment and of the effective date of any election 8.5or termination of election. The determinations shall be final unless a protest is filed 8.6within 30 calendar days after sending of the determination. Upon receipt of a protest, the 8.7commissioner shall review all available evidence and determine whether an error has been 8.8made. The commissioner shall send to the nonprofit organization, by mail or electronic 8.9transmission, an affirmation or redetermination. The affirmation or redetermination shall 8.10be determination is final unless an appeal is filed within 30 20 calendar days of sending 8.11the affirmation or redetermination determination. Proceedings on the appeal shall be are8.12conducted in accordance with section  
         268.105. 8.13EFFECTIVE DATE.This section is effective for determinations issued on or 8.14after September 30, 2007.8.15    Sec. 10. Minnesota Statutes 2006, section 268.057, subdivision 7, is amended to read:8.16    Subd. 7. Credit adjustments, refunds. (a) If an employer makes an application 8.17for a credit adjustment of any amount paid under this chapter or section 
         116L.20 within 8.18four years of the date that the payment was due, in a manner and format prescribed by 8.19the commissioner, and the commissioner determines that the payment or any portion was 8.20erroneous, the commissioner shall make an adjustment and issue a credit without interest. 8.21If a credit cannot be used, the commissioner shall refund, without interest, the amount 8.22erroneously paid. The commissioner, on the commissioner's own motion, may make a 8.23credit adjustment or refund under this subdivision.8.24    Any refund returned to the commissioner shall be is considered unclaimed property 8.25under chapter 345.8.26    (b) If a credit adjustment or refund is denied in whole or in part, a notice of denial 8.27shall must be sent to the employer by mail or electronic transmission. Within 30 calendar 8.28days after sending of The notice of denial, the employer may protest.8.29    Upon receipt of a timely protest, the commissioner shall review the denial and 8.30either affirm the denial or redetermine the credit adjustment or refund. The affirmation of 8.31denial or redetermination of the credit adjustment or refund, sent by mail or electronic 8.32transmission, shall be is final unless an employer files an appeal within 30 20 calendar 8.33days after sending. Proceedings on the appeal shall be are conducted in accordance with 8.34section 
         268.105.9.1EFFECTIVE DATE.This section is effective for all denials issued on or after 9.2September 30, 2007.9.3    Sec. 11. Minnesota Statutes 2006, section 268.063, is amended to read:9.4268.063 PERSONAL LIABILITY.9.5    (a) Any officer, director, or employee of a corporation or any manager, governor, 9.6member, or employee of a limited liability company who9.7    (1) either individually or jointly with others, have or should have had control 9.8of, supervision over, or responsibility for paying the amounts due under this chapter 9.9or section  
         116L.20, and 9.10    (2) knowingly fails to pay the amounts due, shall be is personally liable for the 9.11amount due in the event the employer does not pay.9.12    For purposes of this section, "knowingly" means that the facts demonstrate that the 9.13responsible individual used or allowed the use of corporate or company assets to pay other 9.14creditors knowing that the amounts due under this chapter were unpaid. An evil motive or 9.15intent to defraud is not necessary.9.16    (b) Any partner of a limited liability partnership, or professional limited liability 9.17partnership, shall be is jointly and severally liable for any amount due under this chapter 9.18or section  
         116L.20 in the event the employer does not pay. 9.19    (c) Any personal representative of the estate of a decedent or fiduciary who 9.20voluntarily distributes the assets without reserving a sufficient amount to pay the amount 9.21due shall be is personally liable for the deficiency.9.22    (d) The personal liability of any individual shall survive survives dissolution, 9.23reorganization, receivership, or assignment for the benefit of creditors. For the purposes 9.24of this section, all wages paid by the employer shall be are considered earned from the 9.25individual determined to be personally liable.9.26    (e) The commissioner shall make a determination as to personal liability. The 9.27determination shall be is final unless the individual found to be personally liable, 9.28within 30 20 calendar days after sending, by mail or electronic transmission, a notice 9.29of determination, files a protest. Upon receipt of the protest, the commissioner shall 9.30reexamine the personal liability determination and either affirm or redetermine the 9.31assessment of personal liability and a notice of the affirmation or redetermination 9.32shall be sent to the individual by mail or electronic transmission. The affirmation or 9.33redetermination shall become final unless an appeal is filed within 30 calendar days after 9.34the date of sending. Proceedings on the appeal shall be are conducted in accordance 9.35with section  
         268.105. 10.1EFFECTIVE DATE.This section is effective for determinations issued on or 10.2after September 30, 2007.10.3    Sec. 12. Minnesota Statutes 2006, section 268.07, subdivision 2, is amended to read:10.4    Subd. 2. Benefit account requirements and weekly unemployment benefit 10.5amount and maximum amount of unemployment benefits. (a) To establish a benefit 10.6account, an applicant must have:10.7    (1) high quarter wage credits of at least $1,000 or more; and10.8    (2) wage credits, in other than the high quarter, of at least $250 or more.10.9    (b) If an applicant has established a benefit account, the weekly unemployment 10.10benefit amount available during the benefit year shall be is the higher of:10.11    (1) 50 percent of the applicant's average weekly wage during the base period, to a 10.12maximum of 66-2/3 percent of the state's average weekly wage; or10.13    (2) 50 percent of the applicant's average weekly wage during the high quarter, to a 10.14maximum of 45 43 percent of the state's average weekly wage.10.15    The applicant's average weekly wage under clause (1) shall be is computed by 10.16dividing the total wage credits by 52. The applicant's average weekly wage under clause 10.17(2) shall be is computed by dividing the high quarter wage credits by 13.10.18    (c) The state's maximum weekly unemployment benefit amount and an applicant's 10.19weekly unemployment benefit amount and maximum amount of unemployment benefits 10.20available shall be is rounded down to the next lower whole dollar. The state's maximum 10.21weekly benefit amount, computed in accordance with section  
         268.035, subdivision 23, 10.22shall apply applies to a benefit account established effective on or after the first last10.23Sunday in August October. Once established, an applicant's weekly unemployment benefit 10.24amount shall is not be affected by the first last Sunday in August October change in the 10.25state's maximum weekly unemployment benefit amount. 10.26    (d) The maximum amount of unemployment benefits available on any benefit 10.27account shall be is the lower of:10.28    (1) 33-1/3 percent of the applicant's total wage credits; or10.29    (2) 26 times the applicant's weekly unemployment benefit amount.10.30EFFECTIVE DATE.This section is effective December 1, 2007.10.31    Sec. 13. Minnesota Statutes 2006, section 268.085, subdivision 2, is amended to read:10.32    Subd. 2. Not eligible. An applicant shall not be eligible to receive is ineligible for10.33unemployment benefits for any week:10.34    (1) that occurs before the effective date of a benefit account;11.1    (2) that the applicant, at the beginning of the week, has an outstanding fraud 11.2overpayment balance under section 268.18, subdivision 2, including any penalties and 11.3interest;11.4    (3) that occurs in a period when the applicant is a student in attendance at, or on 11.5vacation from a secondary school including the period between academic years or terms;11.6    (3) (4) that the applicant is incarcerated or performing court ordered community 11.7service. The applicant's weekly unemployment benefit amount shall be is reduced by 11.8one-fifth for each day the applicant is incarcerated or performing court ordered community 11.9service. If the computation of the reduced unemployment benefits is not a whole dollar, it 11.10shall be is rounded down to the next lower whole dollar;11.11    (4) (5) that the applicant fails or refuses to provide information on an issue of 11.12eligibility ineligibility required under section 
         268.101or an issue of disqualification 11.13required under section 268.101;11.14    (5) (6) that the applicant is performing services 32 hours or more, in employment, 11.15covered employment, noncovered employment, volunteer work, or self-employment 11.16regardless of the amount of any earnings; or11.17    (6) (7) with respect to which the applicant is receiving, has received, or has filed 11.18an application for unemployment benefits under any federal law or the law of any other 11.19state. If the appropriate agency finally determines that the applicant is not entitled to the 11.20unemployment benefits, this clause shall does not apply.11.21EFFECTIVE DATE.This section is effective and applies to all outstanding fraud 11.22overpayment balances, including penalty and interest, as of September 30, 2007.11.23    Sec. 14. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:11.24    Subd. 3. Payments that delay unemployment benefits. (a) An applicant shall is11.25not be eligible to receive unemployment benefits for any week with respect to which the 11.26applicant is receiving, has received, or has filed for payment, equal to or in excess of the 11.27applicant's weekly unemployment benefit amount, in the form of:11.28    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause 11.29shall does not apply to vacation pay paid upon a permanent separation from employment;11.30    (2) severance pay, bonus pay, sick pay, and any other money payments, except 11.31earnings under subdivision 5, and back pay under subdivision 6, paid by an employer 11.32because of, upon, or after separation from employment, but only if the money payment is 11.33considered wages at the time of payment under section 
         268.035, subdivision 29, or United 11.34States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act; or12.1    (3) pension, retirement, or annuity payments from any plan contributed to by a base 12.2period employer including the United States government, except Social Security benefits 12.3which that are provided for in subdivision 4. The base period employer is considered to 12.4have contributed to the plan if the contribution is excluded from the definition of wages 12.5under section 
         268.035, subdivision 29, clause (1), or United States Code, title 26, section 12.63121, clause (2), of the Federal Insurance Contribution Act.12.7    An applicant shall is not be considered to have received the lump sum payment if the 12.8applicant immediately deposits that payment in a qualified pension plan or account; or.12.9    (4) holiday pay.12.10    (b) This subdivision shall apply applies to all the weeks of payment and shall be. 12.11Payments under paragraph (a), clauses (1) and (2), are applied to the period immediately 12.12following the last day of employment.and the number of weeks of payment shall be, for 12.13purposes of those clauses, is determined as follows:12.14    (1) if the payments are made periodically, the total of the payments to be received 12.15shall be is divided by the applicant's last level of regular weekly pay from the employer; or12.16    (2) if the payment is made in a lump sum, that sum shall be is divided by the 12.17applicant's last level of regular weekly pay from the employer.12.18    (c) If the payment is less than the applicant's weekly unemployment benefit 12.19amount, unemployment benefits shall be are reduced by the amount of the payment. If 12.20the computation of reduced unemployment benefits is not a whole dollar, it shall be is12.21rounded down to the next lower whole dollar.12.22EFFECTIVE DATE.This section is effective for unemployment benefits paid on 12.23or after September 30, 2007, regardless of when the continued request was filed or the 12.24week for which the unemployment benefits are paid.12.25    Sec. 15. Minnesota Statutes 2006, section 268.095, subdivision 1, is amended to read:12.26    Subdivision 1. Quit. An applicant who quit employment shall be disqualified from12.27is ineligible for all unemployment benefits according to subdivision 10 except when:12.28    (1) the applicant quit the employment because of a good reason caused by the 12.29employer as defined in subdivision 3;12.30    (2) the applicant quit the employment to accept other covered employment that 12.31provided substantially better terms and conditions of employment, but the applicant did 12.32not work long enough at the second employment to have sufficient subsequent earnings to 12.33satisfy the disqualification period of ineligibility that would otherwise be imposed under 12.34subdivision 10 for quitting the first employment;13.1    (3) the applicant quit the employment within 30 calendar days of beginning the 13.2employment because the employment was unsuitable for the applicant;13.3    (4) the employment was unsuitable for the applicant and the applicant quit to enter 13.4reemployment assistance training;13.5    (5) the employment was part time and the applicant also had full-time employment 13.6in the base period, from which full-time employment the applicant separated because 13.7of nondisqualifying reasons for which the applicant was held not to be ineligible, and 13.8the wage credits from the full-time employment are sufficient to meet the minimum 13.9requirements to establish a benefit account under section 
         268.07;13.10    (6) the applicant quit because the employer notified the applicant that the applicant 13.11was going to be laid off due to because of lack of work within 30 calendar days. An 13.12applicant who quit employment within 30 calendar days of a notified date of layoff due to13.13because of lack of work shall be disqualified from is ineligible for unemployment benefits 13.14through the end of the week that includes the scheduled date of layoff;13.15    (7) the applicant quit the employment because the applicant's serious illness or 13.16injury made it medically necessary that the applicant quit, provided that the applicant 13.17inform the employer of the serious illness or injury and request accommodation and no 13.18reasonable accommodation is made available.13.19    If the applicant's serious illness is chemical dependency, this exception shall does13.20not apply if the applicant was previously diagnosed as chemically dependent or had 13.21treatment for chemical dependency, and since that diagnosis or treatment has failed to 13.22make consistent efforts to control the chemical dependency; or.13.23    This exception raises an issue of the applicant's being able to work under section 13.24268.085, subdivision 1, that the commissioner shall determine;13.25    (8) the applicant's loss of child care for the applicant's minor child caused the 13.26applicant to quit the employment, provided the applicant made reasonable effort to obtain 13.27other child care and requested time off or other accommodation from the employer and no 13.28reasonable accommodation is available.13.29    This exception raises an issue of the applicant's availability for suitable employment 13.30under section 268.085, subdivision 1, that the commissioner shall determine; or13.31    (9) domestic abuse of the applicant or the applicant's minor child, necessitated 13.32the applicant's quitting the employment. Domestic abuse shall must be shown by one 13.33or more of the following:13.34    (i) a district court order for protection or other documentation of equitable relief 13.35issued by a court;13.36    (ii) a police record documenting the domestic abuse;14.1    (iii) documentation that the perpetrator of the domestic abuse has been convicted 14.2of the offense of domestic abuse;14.3    (iv) medical documentation of domestic abuse; or14.4    (v) written statement that the applicant or the applicant's minor child is a victim 14.5of domestic abuse, provided by a social worker, member of the clergy, shelter worker, 14.6attorney at law, or other professional who has assisted the applicant in dealing with the 14.7domestic abuse.14.8    Domestic abuse for purposes of this clause shall be is defined under section 
         518B.01.14.9EFFECTIVE DATE.This section is effective and applies to all determinations and 14.10decisions issued on or after September 30, 2007.14.11    Sec. 16. Minnesota Statutes 2006, section 268.095, subdivision 6, is amended to read:14.12    Subd. 6. Employment misconduct defined. (a) Employment misconduct means 14.13any intentional, negligent, or indifferent conduct, on the job or off the job (1) that displays 14.14clearly a serious violation of the standards of behavior the employer has the right to 14.15reasonably expect of the employee, or (2) that displays clearly a substantial lack of 14.16concern for the employment.14.17    Inefficiency, inadvertence, simple unsatisfactory conduct, a single incident that does 14.18not have a significant adverse impact on the employer, conduct an average reasonable 14.19employee would have engaged in under the circumstances, poor performance because of 14.20inability or incapacity, good faith errors in judgment if judgment was required, or absence 14.21because of illness or injury with proper notice to the employer, are not employment 14.22misconduct.14.23    (b) Conduct that was a direct result of the applicant's chemical dependency is not 14.24employment misconduct unless the applicant was previously diagnosed chemically 14.25dependent or had treatment for chemical dependency, and since that diagnosis or treatment 14.26has failed to make consistent efforts to control the chemical dependency.14.27    (c) Conduct that was a result of the applicant, or the applicant's minor child, 14.28being a victim of domestic abuse as defined under section  
         518B.01, is not employment 14.29misconduct. Domestic abuse shall must be shown as provided for in section  
         268.095, 14.30subdivision 1
         , clause (8) (9). 14.31    (d) A driving offense in violation of sections  
         169A.20,  
         169A.31, or  
         169A.5014.32to  
         169A.53 that interferes with or adversely affects the employment is employment 14.33misconduct. 14.34    (e) The definition of employment misconduct provided by this subdivision shall be14.35is exclusive and no other definition shall apply applies.15.1EFFECTIVE DATE.This section is effective and applies to all determinations and 15.2decisions issued on or after September 30, 2007.15.3    Sec. 17. Minnesota Statutes 2006, section 268.105, subdivision 1, is amended to read:15.4    Subdivision 1. Evidentiary hearing by an unemployment law judge. (a) Upon 15.5a timely appeal having been filed, the department shall must send, by mail or electronic 15.6transmission, a notice of appeal to all involved parties that an appeal has been filed, that 15.7a de novo due process evidentiary hearing will be scheduled, and that the parties have 15.8certain rights and responsibilities regarding the hearing. The department shall must set a 15.9time and place for a de novo due process evidentiary hearing and send notice to any 15.10involved applicant and any involved employer, by mail or electronic transmission, not less 15.11than ten calendar days prior to before the date of the hearing.15.12    (b) The evidentiary hearing shall be is conducted by an unemployment law judge 15.13without regard to any common law burden of proof as an evidence gathering inquiry and 15.14not an adversarial proceeding. The unemployment law judge shall must ensure that all 15.15relevant facts are clearly and fully developed. The department shall may adopt rules on 15.16evidentiary hearings. The rules need not conform to common law or statutory rules of 15.17evidence and other technical rules of procedure. The department shall have has discretion 15.18regarding the method by which the evidentiary hearing is conducted. A report of any 15.19employee of the department, except a determination, made in the regular course of the 15.20employee's duties, shall be is competent evidence of the facts contained in it.15.21    (c) After the conclusion of the hearing, upon the evidence obtained, the 15.22unemployment law judge shall must make findings of fact and decision and send those, 15.23by mail or electronic transmission, to all involved parties. When the credibility of an 15.24involved party or witness testifying in an evidentiary hearing has a significant effect on the 15.25outcome of a decision, the unemployment law judge must set out the reason for crediting 15.26or discrediting that testimony. The unemployment law judge's decision is final unless a 15.27request for reconsideration is filed pursuant to under subdivision 2.15.28    (d) Regardless of paragraph (c), if the appealing party fails to participate in the 15.29evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal 15.30by summary order. By failing to participate, the appealing party is considered to have 15.31failed to exhaust available administrative remedies unless the appealing party files a 15.32request for reconsideration under subdivision 2 and establishes good cause for failing to 15.33participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission 15.34of a written statement does not constitute participation. The applicant must participate 15.35personally and appearance solely by a representative does not constitute participation.16.1    (e) Only employees of the department who are attorneys shall licensed to practice 16.2law in Minnesota may serve as unemployment law judges. The commissioner may transfer 16.3to another unemployment law judge any proceedings pending before an unemployment 16.4law judge.16.5EFFECTIVE DATE.This section applies to evidentiary hearings conducted on or 16.6after 30 days following the date of final enactment.16.7    Sec. 18. Minnesota Statutes 2006, section 268.18, subdivision 2, is amended to read:16.8    Subd. 2. Overpayment due tobecause of fraud. (a) Any applicant who receives 16.9unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose 16.10any material fact, or who makes a false statement or representation without a good faith 16.11belief as to the correctness of the statement or representation, has committed fraud. After 16.12the discovery of facts indicating fraud, the commissioner shall make a determination 16.13that the applicant obtained unemployment benefits by fraud and that the applicant must 16.14promptly repay the unemployment benefits to the trust fund. In addition, the commissioner 16.15shall assess a penalty equal to 25 percent of the amount fraudulently obtained. If the 16.16applicant had a prior overpayment due to fraud, the commissioner shall, on the present 16.17overpayment, assess a penalty equal to 50 40 percent of the amount fraudulently obtained. 16.18This penalty is in addition to penalties under section 
         268.182.16.19    (b) Unless the applicant files an appeal within 30 20 calendar days after the sending 16.20of the determination of overpayment by fraud to the applicant by mail or electronic 16.21transmission, the determination shall become is final. Proceedings on the appeal shall be16.22are conducted in accordance with section 
         268.105.16.23    (c) If the applicant fails to repay the unemployment benefits, penalty, and interest 16.24assessed, the commissioner shall offset from future unemployment benefits otherwise 16.25payable the total amount due. the total due may also be collected by the same methods 16.26as delinquent payments from an employer. A determination of overpayment by fraud 16.27shall must state the methods of collection the commissioner may use to recover the 16.28overpayment. Money received in repayment of fraudulently obtained unemployment 16.29benefits, penalties, and interest shall is first be applied to the unemployment benefits 16.30overpaid, then to the penalty amount due, then to any interest due. 62.5 percent of the 16.31payments made toward the penalty shall be are credited to the contingent account and 16.3237.5 percent credited to the administration account for deterring, detecting, or collecting 16.33overpayments.16.34    (d) If an applicant has been overpaid unemployment benefits under the law of 16.35another state because of fraud and that state certifies that the applicant is liable to repay 17.1the unemployment benefits and requests the commissioner to recover the overpayment, 17.2the commissioner may offset from future unemployment benefits otherwise payable the 17.3amount of overpayment.17.4    (e) Unemployment benefits paid for weeks more than four years prior to before the 17.5date of a determination of overpayment by fraud issued under this subdivision shall are17.6not be considered overpaid unemployment benefits.17.7EFFECTIVE DATE.This section is effective for all determinations of overpayment 17.8by fraud issued on or after September 30, 2007.17.9    Sec. 19. Minnesota Statutes 2006, section 268.194, subdivision 1, is amended to read:17.10    Subdivision 1. Establishment. There is hereby established as a special state 17.11trust fund, separate and apart from all other public money or funds of this state, an 17.12unemployment insurance trust fund, that shall be is administered by the commissioner 17.13exclusively for the payment of unemployment benefits. This trust fund shall consist17.14consists of:17.15    (1) all taxes collected;17.16    (2) interest earned upon any money in the trust fund;17.17    (3) reimbursements paid by nonprofit organizations and the state and political 17.18subdivisions;17.19    (4) voluntary tax rate buydown payments under section  
         268.051, subdivision 7; 17.20    (5) any money received as a loan from the federal unemployment trust fund in 17.21accordance with United States Code, title 42, section 1321, of the Social Security Act;17.22    (6) any other money received pursuant to under a reciprocal unemployment benefit 17.23arrangement with the federal government or any other state;17.24    (7) all money recovered on overpaid unemployment benefits except, if allowed by 17.25federal law, five percent of any recovered amount is credited to the administration account;17.26    (8) all money recovered on losses sustained by the trust fund;17.27    (9) all money received from the contingent account under section  
         268.196, 17.28subdivision 3
         ; 17.29    (10) all money credited to the account of Minnesota in the federal unemployment 17.30trust fund pursuant to under United States Code, title 42, section 1103, of the Social 17.31Security Act, also known as the Reed Act; and17.32    (11) all money received for the trust fund from any other source.17.33EFFECTIVE DATE.This section is effective September 30, 2007.18.1    Sec. 20. Minnesota Statutes 2006, section 268.196, subdivision 1, is amended to read:18.2    Subdivision 1. Administration account. (a) There is hereby created in the state 18.3treasury a special account to be known as the administration account. All money that is 18.4deposited or paid into this account shall be is continuously available to the commissioner 18.5for expenditure to administer the Minnesota unemployment insurance program, and shall18.6does not lapse at any time. The administration account shall consist consists of:18.7    (1) all money received from the federal government to administer the Minnesota 18.8unemployment insurance program;18.9    (2) five percent of any money recovered on overpaid unemployment benefits as 18.10provided for in section 268.194, subdivision 1, clause (7), which must be used for 18.11deterring, detecting, and collecting overpaid unemployment benefits;18.12    (3) any money received as compensation for services or facilities supplied to the 18.13federal government or any other state;18.14    (3) (4) any amounts received for losses sustained by this account or by reason of 18.15damage to equipment or supplies; and18.16    (4) (5) any proceeds from the sale or disposition of any equipment or supplies that 18.17may no longer be necessary for the proper administration of those sections.18.18    (b) All money in this account shall must be deposited, administered, and disbursed 18.19in the same manner and under the same conditions and requirements as are provided by 18.20law for the other special accounts in the state treasury. The commissioner of finance, as 18.21treasurer and custodian of this account, shall be is liable for the faithful performance 18.22of duties in connection with this account.18.23    (c) All money in this account shall must be spent solely for the purposes and in the 18.24amounts found necessary by the United States Secretary of Labor for the proper and 18.25efficient administration of the Minnesota unemployment insurance program.18.26EFFECTIVE DATE.This section is effective September 30, 2007.18.27    Sec. 21. MAXIMUM WEEKLY BENEFIT AMOUNT.18.28    Notwithstanding Minnesota Statutes, section 268.07, subdivision 2, paragraph (b), 18.29clause (2), the maximum amount of weekly unemployment benefits available based upon 18.30the high quarter calculation is $351.18.31EFFECTIVE DATE.This section is effective the day following final enactment 18.32and sunsets November 1, 2008.18.33    Sec. 22.  REPEALER.19.1(a) Minnesota Statutes 2006, sections 268.0435; and 268.0511, are repealed effective 19.2January 1, 2008.19.3(b) Minnesota Statutes 2006, sections 268.085, subdivision 10; and 268.103, 19.4subdivision 4, are repealed effective September 30, 2007.19.5ARTICLE 219.6POLICY AND TECHNICAL CHANGES19.7    Section 1. Minnesota Statutes 2006, section 268.035, subdivision 23, is amended to 19.8read:19.9    Subd. 23. State's average annual and average weekly wage. (a) On or before 19.10June 30 of each year, the commissioner shall calculate the state's average annual wage and 19.11the state's average weekly wage in the following manner:19.12    (1) The sum of the total monthly covered employment reported by all employers 19.13for the prior calendar year shall be is divided by 12 to calculate the average monthly 19.14covered employment.19.15    (2) The sum of the total wages paid for all covered employment reported by all 19.16employers for the prior calendar year shall be is divided by the average monthly covered 19.17employment to calculate the state's average annual wage.19.18    (3) The state's average annual wage shall be is divided by 52 to calculate the state's 19.19average weekly wage.19.20    (b) For purposes of calculating the amount of taxable wages, the state's average 19.21annual wage shall apply applies to the calendar year following the calculation.19.22    (c) For purposes of calculating the state's maximum weekly unemployment benefit 19.23amount available on any benefit account under section    
         268.07, subdivision 2, the state's 19.24average weekly wage shall apply applies to the one-year period beginning the first last19.25Sunday in August October of the calendar year of the calculation. 19.26EFFECTIVE DATE.This section is effective December 1, 2007.19.27    Sec. 2. Minnesota Statutes 2006, section 268.051, subdivision 1a, is amended to read:19.28    Subd. 1a. Payments by electronic payment required. (a) Every employer that 19.29reports 500 50 or more employees in any calendar quarter on the wage detail report 19.30required under section  
         268.044shall must make any payments due under this chapter and 19.31section  
         116L.20 by electronic payment. 20.1    (b) All third-party processors, paying quarterly taxes on behalf of a client company, 20.2shall must make any payments due under this chapter and section  
         116L.20 by electronic 20.3payment. 20.4    (c) Regardless of paragraph (a) or (b), the commissioner shall have has the discretion 20.5to accept payment by other means.20.6EFFECTIVE DATE.This section is effective January 1, 2008.20.7    Sec. 3. Minnesota Statutes 2006, section 268.0625, subdivision 4, is amended to read:20.8    Subd. 4. Notice and right to hearing. At least 30 calendar days before the 20.9commissioner notifies a licensing authority, a notice of action under this section shall must20.10be sent to the licensee by mail or electronic transmission. If the licensee disputes the 20.11action, the licensee must appeal within 30 20 calendar days after the sending of the notice 20.12to the licensee. The only issue on any appeal is whether the commissioner has complied 20.13with the requirements of this section. Proceedings on the appeal shall be are conducted in 20.14accordance with section  
         268.105. 20.15EFFECTIVE DATE.This section is effective for notices sent on or after September 20.1630, 2007.20.17    Sec. 4. Minnesota Statutes 2006, section 268.065, subdivision 3, is amended to read:20.18    Subd. 3. Determination of liability. The commissioner shall make a determination 20.19as to the liability under this section. The determination shall be is final unless the 20.20contractor or person found to be liable files an appeal within 30 20 calendar days after 20.21being sent the determination by mail or electronic transmission. Proceedings on the appeal 20.22shall be are conducted in accordance with section  
         268.105. 20.23EFFECTIVE DATE.This section applies to determinations issued on or after 20.24September 30, 2007.20.25    Sec. 5. Minnesota Statutes 2006, section 268.07, subdivision 1, is amended to read:20.26    Subdivision 1. Application for unemployment benefits; determination of benefit 20.27account. (a) An application for unemployment benefits may be filed in person, by mail, or 20.28by electronic transmission as the commissioner shall may require. The applicant must be 20.29unemployed at the time the application is filed and must provide all requested information 20.30in the manner required. If the applicant is not unemployed at the time of the application or 20.31fails to provide all requested information, the communication shall is not be considered 20.32an application for unemployment benefits.21.1    (b) The commissioner shall examine each application for unemployment benefits to 21.2determine the base period and the benefit year, and based upon all the covered employment 21.3in the base period the commissioner shall determine the weekly unemployment benefit 21.4amount available, if any, and the maximum amount of unemployment benefits available, 21.5if any. The determination shall be is known as the determination of benefit account. A 21.6determination of benefit account shall must be sent to the applicant and all base period 21.7employers, by mail or electronic transmission.21.8    (c) If a base period employer did not provide wage information for the applicant as 21.9provided for in section  
         268.044, or provided erroneous information, the commissioner 21.10may accept an applicant certification as to wage credits, based upon the applicant's records, 21.11and issue a determination of benefit account. 21.12    (d) The commissioner may, at any time within 24 months from the establishment of 21.13a benefit account, reconsider any determination of benefit account and make an amended 21.14determination if the commissioner finds that the determination was incorrect for any 21.15reason. An amended determination shall must be promptly sent to the applicant and all 21.16base period employers, by mail or electronic transmission.21.17    (e) If an amended determination of benefit account reduces the weekly 21.18unemployment benefit amount or maximum amount of unemployment benefits available, 21.19any unemployment benefits that have been paid greater than the applicant was entitled is 21.20considered an overpayment of unemployment benefits under section  268.18, subdivision 21.211. A determination or amended determination issued under this section that results in an 21.22overpayment of unemployment benefits must set out the amount of the overpayment and 21.23the requirement under section 268.18, subdivision 1, that the overpaid unemployment 21.24benefits must be repaid.21.25EFFECTIVE DATE.This section applies to all determinations issued on or after 21.26September 30, 2007.21.27    Sec. 6. Minnesota Statutes 2006, section 268.07, subdivision 3a, is amended to read:21.28    Subd. 3a. Right of appeal. (a) A determination or amended determination of benefit 21.29account shall be is final unless an applicant or base period employer within 30 20 calendar 21.30days after the sending of the determination or amended determination files an appeal. 21.31Every determination or amended determination of benefit account shall must contain a 21.32prominent statement indicating in clear language the consequences of not appealing. 21.33Proceedings on the appeal shall be are conducted in accordance with section  
         268.105. 21.34    (b) Any applicant or base period employer may appeal from a determination or 21.35amended determination of benefit account on the issue of whether services performed 22.1constitute employment and covered employment. Proceedings on the appeal shall be are22.2conducted in accordance with section  
         268.105. 22.3EFFECTIVE DATE.This section applies to determinations issued on or after 22.4September 30, 2007.22.5    Sec. 7. Minnesota Statutes 2006, section 268.085, subdivision 5, is amended to read:22.6    Subd. 5. Deductible earnings. (a) If the applicant has earnings, including 22.7holiday pay, with respect to any week, from employment, covered employment, 22.8noncovered employment, self-employment, or volunteer work, equal to or in excess of 22.9the applicant's weekly unemployment benefit amount, the applicant shall be is ineligible 22.10for unemployment benefits for that week.22.11    (b) If the applicant has earnings, with respect to any week, that is less than 22.12the applicant's weekly unemployment benefit amount, from employment, covered 22.13employment, noncovered employment, self-employment, or volunteer work, that amount 22.14over the following shall be 55 percent of the earnings are deducted from the weekly 22.15unemployment benefit amount:.22.16    (1) 25 percent of earnings or $50, whichever is higher; and22.17    (2) $200 for earnings from service in the National Guard or a United States military 22.18reserve unit.22.19    The resulting unemployment benefit, if not a whole dollar, shall be is rounded down 22.20to the next lower whole dollar.22.21    (c) No deduction shall be is made from an applicant's weekly unemployment benefit 22.22amount for earnings from service in the National Guard or a United States military reserve 22.23unit or from direct service as a volunteer firefighter or volunteer ambulance service 22.24personnel. This exception to paragraphs (a) and (b) does not apply to on-call or standby 22.25pay provided to a volunteer firefighter or volunteer ambulance service personnel. No 22.26deduction shall be is made for jury duty pay or for pay as an election judge.22.27    (d) The applicant may report deductible earnings on continued biweekly requests for 22.28unemployment benefits at the next lower whole dollar amount.22.29    (e) Deductible earnings shall does not include any money considered a deductible 22.30payment under subdivision 3, but shall include includes all other money compensation22.31considered wages under section 268.035, subdivision 29, and any other money22.32compensation considered earned income under state and federal law for income tax 22.33purposes.23.1EFFECTIVE DATE.The striking of paragraph (b), clause (2), and the insertion 23.2of "service in the National Guard or a United States military reserve unit or from" in 23.3paragraph (c) are effective the Sunday following final enactment. The remainder of 23.4the section is effective for all unemployment benefits paid on or after September 30, 23.52007, regardless of when the continued request was filed or the week for which the 23.6unemployment benefits are paid.23.7    Sec. 8. Minnesota Statutes 2006, section 268.101, subdivision 6, is amended to read:23.8    Subd. 6. Overpayment. A determination or amended determination that holds an 23.9applicant disqualified or ineligible for unemployment benefits for periods an applicant 23.10has been paid benefits is considered an overpayment of those unemployment benefits 23.11under section  268.18, subdivision 1. A determination or amended determination issued 23.12under this section that results in an overpayment of unemployment benefits must set out 23.13the amount of the overpayment and the requirement under section 268.18, subdivision 1, 23.14that the overpaid unemployment benefits must be repaid.23.15EFFECTIVE DATE.This section applies to determinations issued on or after 23.16September 30, 2007.23.17    Sec. 9. Minnesota Statutes 2006, section 268.105, subdivision 2, is amended to read:23.18    Subd. 2. Request for reconsideration. (a) Any involved applicant, involved 23.19employer, or the commissioner may, within 30 20 calendar days of the sending of the 23.20unemployment law judge's decision under subdivision 1, file a request for reconsideration 23.21asking the unemployment law judge to reconsider that decision. Section 
         268.103shall 23.22apply applies to a request for reconsideration. If a request for reconsideration is timely 23.23filed, the unemployment law judge shall must issue an order:23.24    (1) modifying the findings of fact and decision issued under subdivision 1;23.25    (2) setting aside the findings of fact and decision issued under subdivision 1 and 23.26directing that an additional evidentiary hearing be conducted under subdivision 1; or23.27    (3) affirming the findings of fact and decision issued under subdivision 1.23.28    (b) Upon a timely request for reconsideration having been filed, the department shall23.29must send a notice, by mail or electronic transmission, to all involved parties that a request 23.30for reconsideration has been filed. The notice shall must inform the involved parties:23.31    (1) of the opportunity to provide comment on the request for reconsideration, and 23.32the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits 23.33offered or received into evidence at the evidentiary hearing;24.1    (2) that providing specific comments as to a perceived factual or legal error in the 24.2decision, or a perceived error in procedure during the evidentiary hearing, will assist the 24.3unemployment law judge in deciding the request for reconsideration;24.4    (3) of the right to obtain any comments and submissions provided by the other 24.5involved party regarding the request for reconsideration; and24.6    (4) of the provisions of paragraph (c) regarding additional evidence.24.7This paragraph shall does not apply if paragraph (d) is applicable.24.8    (c) In deciding a request for reconsideration, the unemployment law judge shall must24.9not, except for purposes of determining whether to order an additional evidentiary hearing, 24.10consider any evidence that was not submitted at the evidentiary hearing conducted under 24.11subdivision 1.24.12    The unemployment law judge must order an additional evidentiary hearing if an 24.13involved party shows that evidence which was not submitted at the evidentiary hearing: 24.14(1) would likely change the outcome of the decision and there was good cause for not 24.15having previously submitted that evidence; or (2) would show that the evidence that was 24.16submitted at the evidentiary hearing was likely false and that the likely false evidence had 24.17an effect on the outcome of the decision.24.18    (d) If the involved applicant or involved employer who filed the request for 24.19reconsideration failed to participate in the evidentiary hearing conducted under 24.20subdivision 1, an order setting aside the findings of fact and decision and directing that 24.21an additional evidentiary hearing be conducted must be issued if the party who failed to 24.22participate had good cause for failing to do so. In the notice of the that a request for 24.23reconsideration has been filed, the party who failed to participate shall must be informed 24.24of the requirement, and provided the opportunity, to show good cause for failing to 24.25participate. If the unemployment law judge determines that good cause for failure to 24.26participate has not been shown, the unemployment law judge must state that in the order 24.27issued under paragraph (a).24.28    Submission of a written statement at the evidentiary hearing under subdivision 1 24.29shall does not constitute participation for purposes of this paragraph.24.30    All involved parties must be informed of this paragraph with the notice of appeal 24.31and notice of hearing provided for in subdivision 1.24.32    "Good cause" for purposes of this paragraph is a reason that would have prevented a 24.33reasonable person acting with due diligence from participating at the evidentiary hearing.24.34    (e) A request for reconsideration shall must be decided by the unemployment 24.35law judge who issued the findings of fact and decision under subdivision 1 unless that 24.36unemployment law judge: (1) is no longer employed by the department; (2) is on an 25.1extended or indefinite leave; (3) has been disqualified from the proceedings on the judge's 25.2own motion; or (4) has been removed from the proceedings as provided for under 25.3subdivision 1 or applicable rule.25.4    (f) The unemployment law judge shall must send to any involved applicant or 25.5involved employer, by mail or electronic transmission, the order issued under this 25.6subdivision. An order modifying the previously issued findings of fact and decision or 25.7an order affirming the previously issued findings of fact and decision shall be is the final 25.8department decision on the matter and shall be is final and binding on the involved 25.9applicant and involved employer unless judicial review is sought under subdivision 7.25.10EFFECTIVE DATE.This section applies to decisions issued on or after September 25.1130, 2007.25.12    Sec. 10. Minnesota Statutes 2006, section 268.105, subdivision 3a, is amended to read:25.13    Subd. 3a. Decisions. (a) If an unemployment law judge's decision or order allows 25.14unemployment benefits to an applicant, the unemployment benefits shall must be paid 25.15regardless of any request for reconsideration or any appeal to the Minnesota Court of 25.16Appeals having been filed.25.17    (b) If an unemployment law judge's decision or order modifies or reverses a 25.18determination, or prior decision of the unemployment law judge, allowing unemployment 25.19benefits to an applicant, any benefits paid pursuant to in accordance with the determination, 25.20or prior decision of the unemployment law judge, is considered an overpayment of those 25.21unemployment benefits under section 268.18, subdivision 1. A decision or order issued 25.22under this section that results in an overpayment of unemployment benefits must set out 25.23the amount of the overpayment and the requirement under section 268.18, subdivision 1, 25.24that the overpaid unemployment benefits must be repaid.25.25    (c) If an unemployment law judge's order under subdivision 2 allows unemployment 25.26benefits to an applicant under section 
         268.095 because of a quit or discharge and the 25.27unemployment law judge's decision is reversed by the Minnesota Court of Appeals or the 25.28Supreme Court of Minnesota, any unemployment benefits paid the applicant shall is not 25.29be considered an overpayment of those unemployment benefits under section 
         268.18, 25.30subdivision 1
         .25.31    (d) If an unemployment law judge, pursuant to under subdivision 2, orders the taking 25.32of additional evidence, the unemployment law judge's prior decision shall must continue 25.33to be enforced until new findings of fact and decision are made by the unemployment 25.34law judge.26.1EFFECTIVE DATE.This section applies to decisions issued on or after September 26.230, 2007.26.3    Sec. 11. Minnesota Statutes 2006, section 268.131, subdivision 1, is amended to read:26.4    Subdivision 1. Cooperation with other state and federal government states on 26.5combining wages. (a) In accordance with the requirements of United States Code, title 26.626, section 3304(a)(9)(B), the Federal Unemployment Tax Act, the commissioner shall 26.7participate in reciprocal arrangements with other states and the federal government, or 26.8both, for the payment of unemployment benefits on the basis of combining an applicant's 26.9wages and employment covered under this law with wages and employment covered 26.10under the unemployment insurance programs of other states or the federal government that26.11from multiple states for the purposes of collecting unemployment benefits from a single 26.12state. The reciprocal agreement must include provisions for applying the base period of a 26.13single state law to an a benefit account involving the combining of an applicant's wages 26.14and employment and avoiding the duplicate use of wages by reason of such combining. 26.15NoThe commissioner may not enter into any reciprocal arrangement shall be entered 26.16into unless it contains provisions for reimbursements to the trust fund, by the other 26.17state or the federal government, for unemployment benefits paid from the trust fund to 26.18applicants based upon wages and employment covered under the laws of the other state or 26.19the federal government.26.20    (b) The commissioner is authorized to pay unemployment benefits based upon 26.21an applicant's wages paid in covered employment in another state only if the applicant 26.22is combining Minnesota wage credits with the wages paid in covered employment from 26.23another state or states. 26.24    (c) Section 268.23 does not apply to this subdivision.26.25    (d) On any reciprocal arrangement, the wages paid an applicant from employment 26.26covered under an unemployment insurance program of another state or of the federal 26.27government, shall beare considered wages from covered employment for the purpose 26.28of determining the applicant's rights to unemployment benefits under the Minnesota 26.29Unemployment Insurance Law.26.30EFFECTIVE DATE.This section is effective the day following final enactment.26.31    Sec. 12. Minnesota Statutes 2006, section 268.18, subdivision 1, is amended to read:26.32    Subdivision 1. Nonfraud overpayment. (a) Any applicant who (1) by reason of the 26.33applicant's own mistake, or (2) because of an error by any employee of the department, or 26.34(3) because of a determination or amended determination issued pursuant to under section 27.1268.07
          or 
         268.101, or any other section of this chapter, or (4) (2) because of an appeal 27.2decision or order under section 
         268.105, has received any unemployment benefits that the 27.3applicant was held not entitled to, shall must promptly repay the unemployment benefits 27.4to the trust fund. The commissioner shall, as soon as the overpayment is discovered, 27.5determine the amount due and notify the applicant to repay the unemployment benefits.27.6    (b) Unless the applicant files an appeal within 30 calendar days after the sending 27.7of the determination of overpayment to the applicant by mail or electronic transmission, 27.8the determination shall become final. Proceedings on the appeal shall be conducted in 27.9accordance with section 268.105. An applicant may not collaterally attack, by way of an 27.10appeal to an overpayment determination, any prior determination issued pursuant to section 27.11268.07 or 268.101, or decision issued pursuant to section 268.105, that has become final.27.12    (c) If the applicant fails to repay the unemployment benefits determined overpaid 27.13under this subdivision, the commissioner may offset from any future unemployment 27.14benefits otherwise payable the amount of the overpayment. Except when the overpayment 27.15resulted because the applicant failed to report deductible earnings or deductible or 27.16benefit delaying payments, no single offset shall may exceed 50 percent of the amount 27.17of the payment from which the offset is made. The overpayment may also be collected 27.18by the same methods as delinquent payments from an employer. A determination of 27.19overpayment shall state the methods of collection the commissioner may use to recover 27.20the overpayment.27.21    (d) (c) If an applicant has been overpaid unemployment benefits under the law of 27.22another state, due to because of a reason other than fraud, and that state certifies that the 27.23applicant is liable under its law to repay the unemployment benefits and requests the 27.24commissioner to recover the overpayment, the commissioner may offset from future 27.25unemployment benefits otherwise payable the amount of overpayment, except that no 27.26single offset shall may exceed 50 percent of the amount of the payment from which the 27.27offset is made.27.28    (e) (d) If under paragraph (b) or (c) or (d) the reduced unemployment benefits as 27.29a result of a 50 percent offset is not a whole dollar amount, it shall be is rounded down 27.30to the next lower whole dollar.27.31    (f) Unemployment benefits paid for weeks more than three years prior to the date 27.32of a determination of overpayment issued under this subdivision shall not be considered 27.33overpaid unemployment benefits.27.34EFFECTIVE DATE.This section is effective September 30, 2007.27.35    Sec. 13. Minnesota Statutes 2006, section 268.18, subdivision 2b, is amended to read:28.1    Subd. 2b. Interest. (a) On any unemployment benefits fraudulently obtained, 28.2and any penalty amounts assessed under subdivision 2, the commissioner may shall28.3assess interest at the rate of 1-1/2 percent per month on any amount that remains unpaid28.4beginning 30 calendar days after the date of the determination of overpayment by fraud. A 28.5determination of overpayment by fraud shall must state that interest shall will be assessed.28.6    (b) If this subdivision became effective after the date of the determination, or the 28.7determination did not state that interest shall will be assessed, interest shall be is assessed 28.8beginning 30 calendar days after notification, by mail or electronic transmission, to the 28.9applicant that interest is now assessed.28.10    (c) Interest payments under this section shall be are credited to the administration 28.11account.28.12EFFECTIVE DATE.This section is effective September 30, 2007, and applies to 28.13all outstanding fraud overpayment balances as of that date.28.14    Sec. 14. Minnesota Statutes 2006, section 268.18, subdivision 4, is amended to read:28.15    Subd. 4. Cancellation of overpayments. (a) If unemployment benefits determined28.16overpaid under subdivision 1 are not repaid or offset from subsequent unemployment 28.17benefits as provided for in subdivision 1 within six years after the date of the determination 28.18of overpayment or decision holding the applicant overpaid, the commissioner shall cancel 28.19the overpayment balance, and no administrative or legal proceedings shall may be used to 28.20enforce collection of those amounts.28.21    (b) If unemployment benefits determined overpaid under subdivision 2 including 28.22penalties and interest are not repaid or offset from subsequent unemployment benefits as 28.23provided for in subdivision 2 within ten 15 years after the date of the determination of 28.24overpayment by fraud, the commissioner shall cancel the overpayment balance and any 28.25penalties and interest due, and no administrative or legal proceeding shall may be used to 28.26enforce collection of those amounts.28.27    (c) The commissioner may cancel at any time any overpayment, including penalties 28.28and interest, that the commissioner determines is uncollectible due to because of death 28.29or bankruptcy.28.30EFFECTIVE DATE.This section is effective September 30, 2007, and applies to 28.31all overpayments existing as of that date.28.32    Sec. 15. Minnesota Statutes 2006, section 268.182, subdivision 2, is amended to read:29.1    Subd. 2. Administrative penalties. Any applicant who knowingly makes a false 29.2statement or representation, who knowingly fails to disclose a material fact, or who makes 29.3a false statement or representation without a good faith belief as to the correctness of the 29.4statement or representation, in order to obtain or in an attempt to obtain unemployment 29.5benefits may be assessed, in addition to any other penalties, an administrative penalty of 29.6being ineligible for unemployment benefits for 13 to 104 weeks. A determination of 29.7ineligibility setting out the weeks the applicant shall beis ineligible shallmust be sent to 29.8the applicant by mail or electronic transmission. Unless an appeal is filed within 30 2029.9calendar days of sending, the determination shall beis final. ProceedingProceedings on 29.10the appeal shall be are conducted in accordance with section 
         268.105.29.11EFFECTIVE DATE.This section applies to determinations issued on or after 29.12September 30, 2007.29.13    Sec. 16. Minnesota Statutes 2006, section 268.184, subdivision 1, is amended to read:29.14    Subdivision 1. Administrative penalties. (a) If The commissioner findsshall 29.15penalize an employer if that any employer or any employee, officer, or agent of anythat 29.16employer, is in collusion with any applicant for the purpose of assisting the applicant to 29.17receive unemployment benefits fraudulently, the employer shall be penalized. The penalty 29.18is  $500 or the amount of unemployment benefits determined to be overpaid, whichever 29.19is greater.29.20    (b) If The commissioner findsshall penalize an employer if that any employer or 29.21any employee, officer, or agent of anthat employer has(1) made (1) a false statement or 29.22representation knowing it to be false, including reporting employees on a wage detail 29.23report under section 268.044 knowing the employees actually are employed by a different 29.24employer, or, (2) has made a false statement or representation without a good faith belief 29.25as to correctness of the statement or representation, or (3) who knowingly failsfailed to 29.26disclose a material fact,; but only if the employer's action:29.27     (i) was taken to prevent or reduce the payment of unemployment benefits to any 29.28applicant or;29.29    (ii) was taken  to reduce or avoid any payment required from an employer under this 29.30chapter or section 
         116L.20, the employer shall be penalized; or29.31    (iii) caused an overpayment of unemployment benefits to an applicant.29.32    The penalty is $500, or 50 percent of the overpaid or reduced unemployment benefits 29.33or payment required, whichever is greater.29.34    (c) If The commissioner findsshall penalize an employer if that an employer failed 29.35or refused to honor a subpoena issued under section 
         268.105, subdivision 4, or section 30.1268.188
         , the employer shall be penalized. The penalty is  $500 and any costs of enforcing 30.2the subpoena, including attorney fees.30.3    (d) Penalties under this subdivision shall beare in addition to any other penalties 30.4and subject to the same collection procedures that apply to past due taxes. Penalties shall30.5must be paid to the department within 30 calendar days of assessment and credited to 30.6the contingent account.30.7    (e) The assessment of the penalty shall beis final unless the employer files an appeal 30.8within 3020 calendar days after the sending of notice of the penalty to the employer by 30.9mail or electronic transmission. Proceedings on the appeal shall beare conducted in 30.10accordance with section 
         268.105.30.11EFFECTIVE DATE.This section is effective for notices of penalties sent on or 30.12after September 30, 2007.30.13    Sec. 17. Minnesota Statutes 2006, section 268.184, subdivision 1a, is amended to read:30.14    Subd. 1a. Notification and misreporting penalties. (a) If the commissioner finds 30.15that any employer or agent of an employer failed to meet the notification requirements 30.16of section 
         268.051, subdivision 4, the employer shallmust be assessed a penalty of 30.17$5,000 or two percent of the first full quarterly payroll acquired, whichever is higher. 30.18Payroll is wages paid as defined in section 
         268.035, subdivision 30. The penalty under 30.19this paragraph shallmust be canceled if the commissioner determines that the failure 30.20occurred because of ignorance or inadvertence.30.21    (b) If the commissioner finds that any individual advised an employer to violate the 30.22employer's notification requirements under section 
         268.051, subdivision 4, the individual, 30.23and that individual's employer, shallmust each be assessed the penalty in paragraph (a).30.24    (c) If the commissioner finds that any person or agent of a person violated the 30.25reporting requirements of section 
         268.0435 or 
         268.046, the person shallmust be assessed 30.26a penalty of $5,000 or two percent of the quarterly payroll reported in violation of section 30.27268.0435
          or 
         268.046, whichever is higher. Payroll is wages paid as defined in section 30.28268.035, subdivision 30
         .30.29    (d) Penalties under this subdivision shall beare in addition to any other penalties and 30.30subject to the same collection procedures that apply to past due amounts from an employer. 30.31Penalties must be paid within 30 calendar days after sending of the notice of penalty.30.32    (e) The assessment of a penalty shall beis final unless the person assessed files an 30.33appeal within 30 20 calendar days after sending of the notice of the penalty by mail or 30.34electronic transmission. Proceedings on the appeal shall beare conducted in accordance 30.35with section 
         268.105.31.1EFFECTIVE DATE.This section applies to assessments done on or after 31.2September 30, 2007.31.3    Sec. 18. [268.215] DAY OF THE WEEK AND DATE REQUIREMENT.31.4    (a) Every determination issued under this chapter that is subject to an appeal to an 31.5unemployment law judge must indicate the day of the week and the date, for example, 31.6Tuesday, August 1, 2006, that the determination is final and no longer subject to an appeal.31.7    (b) Every decision issued by an unemployment law judge under section 268.105, 31.8subdivision 1, must indicate the day of the week and the date, for example, Tuesday, 31.9August 1, 2006, that the decision is final and no longer subject to reconsideration.31.10EFFECTIVE DATE.This section is effective September 30, 2007.31.11ARTICLE 331.12HOUSEKEEPING PROVISIONS31.13    Section 1. Minnesota Statutes 2006, section 268.035, subdivision 1, is amended to read:31.14    Subdivision 1. Scope.Unless the language or context clearly indicates that a 31.15different meaning is intended, The words, terms, and phrases in this section shall, for the 31.16purposes of the Minnesota Unemployment Insurance Law, have the meaning stated.31.17    Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 14, is amended to read:31.18    Subd. 14. Employer. "Employer" means any person which that has had one or more 31.19employees during the current or the prior calendar year including any person that has 31.20elected, under section 
         268.042, to be subject to the Minnesota Unemployment Insurance 31.21Law and a joint venture composed of one or more employers.31.22    An employee leasing company, professional employer organization, or similar 31.23person that has been assigned a tax or reimbursable account under section 
         268.046 is 31.24an employer for purposes of this chapter.31.25    Sec. 3. Minnesota Statutes 2006, section 268.035, subdivision 24, is amended to read:31.26    Subd. 24. Taxable wages. (a) "Taxable wages" means those wages paid to an 31.27employee in covered employment each calendar year up to an amount equal to 60 percent 31.28of the state's average annual wage, rounded to the nearest $1,000.31.29    (b) Taxable wages includes the amount of wages paid for covered employment by 31.30the employer's predecessor when there has been an experience rating history transfer 31.31under section 
         268.051, subdivision 4. 32.1    Sec. 4. Minnesota Statutes 2006, section 268.044, subdivision 1, is amended to read:32.2    Subdivision 1. Wage detail report. (a) Each employer that has employees in 32.3covered employment shall must submit, under the account provided for in section 32.4268.045
          or 
         268.046, a quarterly wage detail report by electronic transmission, in a format 32.5prescribed by the commissioner. The report shall must include for each employee in 32.6covered employment during the calendar quarter, the employee's name, Social Security 32.7number, the total wages paid to the employee, and total number of paid hours worked. 32.8For employees exempt from the definition of employee in section 
         177.23, subdivision 7, 32.9clause (6), the employer shall must report 40 hours worked for each week any duties were 32.10performed by a full-time employee and shall must report a reasonable estimate of the 32.11hours worked for each week duties were performed by a part-time employee. In addition, 32.12the wage detail report shall must include the number of employees employed onduring 32.13the payroll period that includes the 12th day of each calendar month and, if required by the 32.14commissioner, the report shall must  be broken down by business location and, if section 32.15268.046, subdivision 1
         , paragraph (b), or subdivision 2, paragraph (b), applies, by separate 32.16unit. If the information required is not submitted in a manner and format prescribed by the 32.17commissioner, it shall not be considered a wage detail report. The report is due and must 32.18be received by the commissioner on or before the last day of the month following the end 32.19of the calendar quarter. The commissioner may delay the due date on a specific calendar 32.20quarter in the event the department is unable to accept wage detail reports electronically.32.21    (b) The employer may report the wages paid to the next lower whole dollar amount.32.22    (c) An employer need not include the name of the employee or other required 32.23information on the wage detail report if disclosure is specifically exempted from being 32.24reported by federal law.32.25    (d) A wage detail report must be submitted for each calendar quarter even though 32.26no wages were paid, unless the employer has notified the commissioner, under section 32.27268.042, subdivision 1
         , paragraph (c), of termination of business.32.28    Sec. 5. Minnesota Statutes 2006, section 268.044, subdivision 3, is amended to read:32.29    Subd. 3. Missing or erroneous information. (a) Any employer that submits the 32.30wage detail report, but fails to include all employee information or enters erroneous 32.31information, shall be is subject to an administrative service fee of $25 for each employee 32.32for whom the information is partially missing or erroneous.32.33    (b) Any employer that submits the wage detail report, but fails to include an 32.34employee, shall be is subject to an administrative service penalty fee equal to two percent 32.35of the total wages for each employee for whom the information is completely missing.33.1    (c) An administrative service fee or penalty under this subdivision shall must be 33.2canceled if the commissioner determines that the failure or error by the employer occurred 33.3because of ignorance or inadvertence.33.4    Sec. 6. Minnesota Statutes 2006, section 268.051, subdivision 2, is amended to read:33.5    Subd. 2. Computation of tax rates; additional assessments. (a) For each calendar 33.6year the commissioner shall compute the tax rate of each taxpaying employer that qualifies 33.7for an experience rating by adding the base tax rate to the employer's experience rating33.8along with assigning any appropriate additional assessment under paragraph (d).33.9    (b) The base tax rate for the calendar year and any additional assessments under this 33.10subdivision shall be are determined based upon the amount in the trust fund on March 33.1131 of the prior year as a percentage of total wages paid in covered employment. The 33.12base tax rate shall be is:33.13    (1) one-tenth of one percent if the trust fund is equal to or more than 0.75 percent;33.14    (2) two-tenths of one percent if the trust fund is less than 0.75 percent but equal to or 33.15more than 0.65 percent;33.16    (3) three-tenths of one percent if the trust fund is less than 0.65 percent but equal 33.17to or more than 0.55 percent; or33.18    (4) four-tenths of one percent if the trust fund is less than 0.55 percent.33.19    (c) There shall be is a "falling trust fund adjustment" to the base tax rate for the 33.20calendar year if the amount in the trust fund on March 31 of the prior year is less than 0.75 33.21percent of total wages paid in covered employment and:33.22    (1) the amount in the trust fund on March 31 of the prior year is ten percent or more 33.23below the amount in the trust fund on March 31 of the year prior to before that; or33.24    (2) the amount in the trust fund on March 31 of the prior year is greater than the 33.25amount in the trust fund on June 30 of that same year.33.26If a "falling trust fund adjustment" is applicable, then the base tax rate shall be 0.1 is 33.27one-tenth of one percent greater than otherwise provided for under paragraph (b).33.28    (d) In addition to the base tax rate under paragraph (b), there shall be is an additional 33.29assessment for the calendar year on all the quarterly unemployment taxes due from every 33.30taxpaying employer if the amount in the trust fund on March 31 of the prior year is less 33.31than .55 0.55 percent of total wages paid in covered employment. The assessment shall be33.32is as follows:33.33    (1) a five percent assessment if the trust fund is less than 0.55 percent but equal to or 33.34more than 0.45 percent;34.1    (2) a ten percent assessment if the trust fund is less than 0.45 percent but equal 34.2to or more than 0.35 percent; or34.3    (3) a 14 percent assessment if the trust fund is less than 0.35 percent.34.4    (e) For the purposes of this subdivision, the trust fund shall does not include any 34.5money borrowed from the federal unemployment trust fund pursuant to provided for in34.6section  
         268.194, subdivision 6. 34.7    (f) For the purposes of this subdivision, total wages paid in covered employment 34.8shall be are those wages paid to all employees in covered employment during the calendar 34.9year prior to before the March 31 date used in paragraph (b).34.10    (g) The commissioner may compute any assessment under this subdivision, and any 34.11assessment under subdivision 8, as a percentage of the employer's experience rating and 34.12the base tax rate, rounded to the nearest hundredth of a percent.34.13    On tax rate notices sent under subdivision 6, any assessments under this subdivision 34.14may be combined with any special assessments for interest on federal loans provided for 34.15in subdivision 8 into a single combined assessment.34.16    (g) The base tax rate and any additional assessments are assessed on all taxpaying 34.17employers to cover a portion of the costs to the trust fund for unemployment benefits paid 34.18that do not affect any single employer's future experience rating because:34.19    (1) the employer's experience rating is limited by the maximum under subdivision 3, 34.20paragraph (b);34.21    (2) the employer has ceased doing business; or34.22    (3) the unemployment benefits paid have been determined not to be used in 34.23computing the employer's experience rating under section 268.047, subdivision 2 or 3.34.24    Sec. 7. Minnesota Statutes 2006, section 268.051, subdivision 3, is amended to read:34.25    Subd. 3. Computation of a taxpaying employer's experience rating. (a) On 34.26or before each December 15, the commissioner shall compute an experience rating for 34.27each taxpaying employer who has been subject required to paying unemployment taxes34.28file wage detail reports for the 12 calendar months ending on the prior June 30. The 34.29experience rating computed shall be is  applicable for the following calendar year.34.30    The experience rating shall be is the ratio obtained by dividing 125 percent of the 34.31total unemployment benefits required under section  
         268.047 to be used in computing the 34.32employer's tax rate during the 48 calendar months ending on the prior June 30, by the 34.33employer's total taxable payroll for that same period. 34.34    (b) The experience rating shall be is computed to the nearest one-hundredth of a 34.35percent, to a maximum of  
         8.90 percent. 35.1    (c) The use of 125 percent of unemployment benefits paid under paragraph (a), rather 35.2than 100 percent of the amount of unemployment benefits paid, is done in order for the 35.3trust fund to recover from all taxpaying employers a portion of the costs of unemployment 35.4benefits paid that do not affect any individual employer's future experience rating because 35.5of the reasons set out in subdivision 2, paragraph (g).35.6    Sec. 8. Minnesota Statutes 2006, section 268.051, subdivision 4, is amended to read:35.7    Subd. 4. Experience rating history transfer. (a) When:35.8    (1) a taxpaying employer acquires all of the organization, trade or business, or 35.9workforce of another taxpaying employer; and35.10    (2) there is 25 percent or more common ownership or there is substantially common 35.11management or control between the predecessor and successor, the experience rating 35.12history of the predecessor employer shall be is transferred as of the date of acquisition to 35.13the successor employer.35.14    (b) When:35.15    (1) a taxpaying employer acquires a portion, but less than all, of the organization, 35.16trade or business, or workforce of another taxpaying employer; and35.17    (2) there is 25 percent or more common ownership or there is substantially 35.18common management or control between the predecessor and successor, the successor 35.19employer shall acquire acquires, as of the date of acquisition, the experience rating 35.20history attributable to the portion it acquired, and the predecessor employer shall retain35.21retains the experience rating history attributable to the portion that it has retained. If the 35.22commissioner determines that sufficient information is not available to substantiate that a 35.23distinct severable portion was acquired and to assign the appropriate distinct severable 35.24portion of the experience rating history, the commissioner shall assign the successor 35.25employer that percentage of the predecessor employer's experience rating history equal to 35.26that percentage of the employment positions it has obtained, and the predecessor employer 35.27shall retain retains that percentage of the experience rating history equal to the percentage 35.28of the employment positions it has retained.35.29    (c) The term "common ownership" for purposes of this subdivision includes 35.30ownership by a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle, 35.31niece, nephew, or first cousin, by birth or by marriage.35.32    (d) Each successor employer that is subject to paragraph (a) or (b) must notify the 35.33commissioner of the acquisition by electronic transmission, in a format prescribed by the 35.34commissioner, within 30 calendar days of the date of acquisition. Any successor employer 35.35that fails to notify the commissioner is subject to the penalties under section 
         268.184, 36.1subdivision 1a
         , if the successor's experience rating was lower than the predecessor's 36.2experience rating at the time of the acquisition. Payments made toward the penalties 36.3shall be are credited to the administration account to be used to ensure integrity in the 36.4unemployment insurance program.36.5    (e) If the successor employer under paragraphs (a) and (b) had an experience rating 36.6at the time of the acquisition, the transferred experience rating history of the predecessor 36.7shall be is combined with the successor's experience rating history, as of the date of 36.8acquisition, for purposes of recomputing a tax rate.36.9    (f) If there has been a transfer of an experience rating history under paragraph (a) 36.10or (b), employment with a predecessor employer shall is not be considered to have been 36.11terminated if similar employment is offered by the successor employer and accepted by 36.12the employee.36.13    (g) The commissioner, upon notification of an employer, or upon the commissioner's 36.14own motion if the employer fails to provide the required notification, shall determine if an 36.15employer is a successor within the meaning of this subdivision. The commissioner shall, 36.16after determining the issue of succession or nonsuccession, recompute the tax rate under 36.17subdivision 6 of all employers affected. The commissioner shall send the recomputed 36.18tax rate to all affected employers by mail or electronic transmission. Any affected 36.19employer may protest appeal the recomputed tax rate in accordance with the procedures 36.20in subdivision 6, paragraph (c).36.21    (h) The "experience rating history" for purposes of this subdivision and subdivision 36.224a means those factors set out in subdivision 3, paragraph (b), that make up an experience 36.23rating the amount of unemployment benefits paid and the taxable wages that are being 36.24used and would be used in computing the current and any future experience rating.36.25    For purposes of this chapter, an "acquisition" means anything that results in the 36.26obtaining by the successor employer, in any way or manner, of the organization, trade or 36.27business, or workforce of the predecessor employer.36.28    A "distinct severable portion" in paragraph (b) means a location or unit separately 36.29identifiable within the employer's wage detail report under section 
         268.044.36.30    (i) Regardless of the ownership, management, or control requirements of paragraph 36.31(a), if there is an acquisition or merger of a publicly held corporation by or with another 36.32publicly held corporation the experience rating histories of the corporations shall be are36.33combined as of the date of acquisition or merger for the purpose of recomputing a tax rate.36.34    Sec. 9. Minnesota Statutes 2006, section 268.051, subdivision 7, is amended to read:37.1    Subd. 7. Tax rate buydown. (a) Any taxpaying employer who that has been 37.2assigned a tax rate based upon an experience rating, and has no amounts past due under 37.3this chapter, may, upon the voluntary payment of an amount equivalent to any portion or 37.4all of the unemployment benefits used in computing the experience rating plus a surcharge 37.5of 25 percent, obtain a cancellation of unemployment benefits used equal to the payment 37.6made, less the surcharge. Upon the payment, the commissioner shall compute a new 37.7experience rating for the employer, and compute a new tax rate.37.8    (b) Voluntary Payments for a tax rate buydown may be made only by electronic 37.9payment and must be received within 120 calendar days from the beginning of the 37.10calendar year for which the tax rate is effective.37.11    Sec. 10. Minnesota Statutes 2006, section 268.051, subdivision 8, is amended to read:37.12    Subd. 8. Special assessment for interest on federal loan. (a) If on October 31 of 37.13any year, the commissioner, in consultation with the commissioner of finance, determines 37.14that an interest payment will be due during the following calendar year on any loan from 37.15the federal unemployment trust fund under section  
         268.194, subdivision 6, a special 37.16assessment on taxpaying employers will be in effect for the following calendar year. The 37.17legislature authorizes the commissioner, in consultation with the commissioner of finance, 37.18to determine the appropriate level of the assessment, from two percent to eight percent of 37.19the total quarterly unemployment taxes due based upon determined rates and assigned 37.20assessments under subdivision 2, that will be necessary to pay the interest due on the loan. 37.21    (b) The special assessment shall must be placed into a special account from which 37.22the commissioner shall pay any interest that has accrued on any loan from the federal 37.23unemployment trust fund provided for under section  
         268.194, subdivision 6. If, at the 37.24end of each calendar quarter, the commissioner, in consultation with the commissioner 37.25of finance, determines that the balance in this special account, including interest earned 37.26on the special account, is more than is necessary to pay the interest which that has 37.27accrued on any loan as of that date, or will accrue over the following calendar quarter, 37.28the commissioner shall immediately pay to the trust fund the amount in excess of that 37.29necessary to pay the interest on any loan. 37.30    Sec. 11. Minnesota Statutes 2006, section 268.066, is amended to read:37.31268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.37.32    (a) The commissioner shall cancel as uncollectible any amounts due from an 37.33employer under this chapter or section  
         116L.20, which that remain unpaid six years after 37.34the amounts have been first determined due, except where the delinquent amounts are 38.1secured by a notice of lien, a judgment, are in the process of garnishment, or are under a 38.2payment plan. 38.3    (b) The commissioner may cancel at any time as uncollectible any amount due, or 38.4any portion of an amount due, from an employer under this chapter or section  
         116L.20, 38.5that (1) are uncollectible due to death or bankruptcy, (2) the Minnesota Collection 38.6Enterprise Division of the Department of Revenue under section  
         16D.04 was unable to 38.7collect, or (3) the commissioner determines that it is not in the public interest to pursue 38.8collection of the amount due. 38.9    Sec. 12. Minnesota Statutes 2006, section 268.07, subdivision 3b, is amended to read:38.10    Subd. 3b. Limitations on applications and benefit accounts. (a) A benefit 38.11account shall be established An application for unemployment benefits is effective the 38.12Sunday of the calendar week that the application for unemployment benefits was filed. 38.13Upon specific request of an applicant, an application for unemployment benefits may be 38.14backdated one calendar week prior to before the Sunday of the week the application 38.15was actually filed. An application shall may be backdated only if the applicant was 38.16unemployed throughout the period of the backdating. If an individual attempted to file 38.17an application for unemployment benefits, but was prevented from filing an application 38.18by the department, the benefit account shall be application is effective the Sunday of the 38.19calendar week the individual first attempted to file an application.38.20    (b) A benefit account established under subdivision 2 is effective the date the 38.21application for unemployment benefits was effective. 38.22    (c) A benefit account, once established, may later be withdrawn only if:38.23    (1) a new application for unemployment benefits is filed and a new benefit account is 38.24established at the time of the withdrawal; and38.25    (2) the applicant has not served a the nonpayable waiting week under section 38.26268.085, subdivision 1
         , clause (5).38.27    A determination or amended determination pursuant to under section 
         268.101, that 38.28was issued before the withdrawal of the benefit account, shall remain remains in effect 38.29and shall is not be voided by the withdrawal of the benefit account. A determination of 38.30disqualification ineligibility requiring subsequent earnings to satisfy the disqualification38.31period of ineligibility under section 
         268.095, subdivision 10, shall apply applies to the 38.32weekly unemployment benefit amount on the new benefit account.38.33    (c) (d) An application for unemployment benefits shall is not be allowed prior to38.34before the Sunday following the expiration of the benefit year on a prior benefit account. 39.1Except as allowed under paragraph (b), a an applicant may establish only one benefit 39.2account each 52 calendar weeks.39.3    Sec. 13. Minnesota Statutes 2006, section 268.085, subdivision 1, is amended to read:39.4    Subdivision 1. Eligibility conditions. An applicant shall may be eligible to receive 39.5unemployment benefits for any week if:39.6    (1) the applicant has an active benefit account and has filed a continued biweekly39.7request for unemployment benefits for that week pursuant to under section 
         268.086;39.8    (2) the week for which unemployment benefits are requested is in the applicant's 39.9benefit year;39.10    (3) the applicant was unemployed as defined in section 
         268.035, subdivision 26;39.11    (4) the applicant was able to work and was available for suitable employment, and 39.12was actively seeking suitable employment. The applicant's weekly unemployment benefit 39.13amount shall be is reduced one-fifth for each day the applicant is unable to work or is 39.14unavailable for suitable employment. If the computation of the reduced unemployment 39.15benefits is not a whole dollar, it shall be is rounded down to the next lower whole dollar.39.16This clause shall does not apply to an applicant who is in reemployment assistance 39.17training, or each day the applicant is on jury duty or serving as an election judge;39.18    (5) the applicant has served a nonpayable waiting period of one week that the 39.19applicant is otherwise entitled to some amount of unemployment benefits. This clause 39.20shall does not apply if the applicant would have been entitled to federal disaster 39.21unemployment assistance because of a disaster in Minnesota, but for the applicant's 39.22establishment of a benefit account under section 
         268.07; and39.23    (6) the applicant has been participating in reemployment assistance services, such as 39.24job search and resume writing classes, if the applicant has been determined in need of 39.25reemployment assistance services by the commissioner, unless there is the applicant has39.26good cause for the applicant's failure failing to participate.39.27    Sec. 14. Minnesota Statutes 2006, section 268.085, subdivision 9, is amended to read:39.28    Subd. 9. Business owners. Wage credits from an employer may not be used for 39.29unemployment benefit purposes by any applicant who:39.30    (1) individually, jointly, or in combination with the applicant's spouse, parent, or 39.31child owns or controls directly or indirectly 25 percent or more interest in the employer, or 39.32is the spouse, parent, or minor child of any individual who owns or controls directly or 39.33indirectly 25 percent or more interest in the employer; and40.1    (2) is temporarily, seasonally, or indefinitely unemployed and not permanently 40.2separated from the employment.40.3    This subdivision is effective when the applicant has been paid four times the 40.4applicant's weekly unemployment benefit amount in the current benefit year.40.5    Sec. 15. Minnesota Statutes 2006, section 268.085, subdivision 13c, is amended to 40.6read:40.7    Subd. 13c. Offers of suitable employment. (a) An applicant shall be is ineligible 40.8for all unemployment benefits for eight calendar weeks if the applicant, without good 40.9cause:40.10    (1) failed to apply for available, suitable employment of which the applicant was 40.11advised by the commissioner or an employer;40.12    (2) failed to accept suitable employment when offered; or40.13    (3) avoided an offer of suitable employment.40.14    (b) "Good cause" is a reason that would cause a reasonable individual who wants 40.15suitable employment to fail to apply for, accept, or avoid suitable employment. Good 40.16cause includes:40.17    (1) the applicant is employed in other suitable employment;40.18    (2) the applicant is in reemployment assistance training;40.19    (3) the applicant formerly worked for the employer and the loss of employment 40.20occurred prior to the commencement of a labor dispute, was permanent or for an indefinite 40.21period, and the applicant failed to apply for or accept the employment because a labor 40.22dispute was in progress at the establishment; or40.23    (4) the applicant formerly worked for the employer and quit that employment 40.24because of a good reason caused by the employer.40.25    (c) This subdivision only applies to offers of suitable employment with a new or a 40.26former employer and does not apply to any type of job transfers, position reassignments, 40.27or changes in job duties or responsibilities during the course of employment with an 40.28employer.40.29    (d) The period of ineligibility under this subdivision and section 268.095 shall begin40.30begins the Sunday of the week the applicant failed to apply for, failed to accept, or avoided 40.31suitable employment without good cause.40.32    (e) This subdivision and section 268.095 shall apply applies to offers of suitable 40.33employment that occur prior to before the effective date of the benefit account and that 40.34occur during the benefit year.41.1    (f) This subdivision and section 268.095 shall only apply applies to offers of suitable 41.2employment that are considered covered employment under section 
         268.035, subdivision 41.312
         .41.4    Sec. 16. Minnesota Statutes 2006, section 268.086, subdivision 2, is amended to read:41.5    Subd. 2. Continued biweekly request for unemployment benefits defined. A 41.6continued biweekly request for unemployment benefits is a certification by an applicant, 41.7done on a weekly or biweekly basis as the commissioner designates, that the applicant is 41.8unemployed and meets the ongoing eligibility requirements for unemployment benefits 41.9under section 
         268.085 for a specific week or two-week period. A continued biweekly41.10request shall must include information on possible issues of eligibility and disqualification41.11ineligibility in accordance with section 
         268.101, subdivision 1, paragraph (c).41.12    Sec. 17. Minnesota Statutes 2006, section 268.086, subdivision 7, is amended to read:41.13    Subd. 7. In-person continued biweekly request for unemployment benefits. The 41.14commissioner may require any applicant who has been designated to make a continued 41.15biweekly request for unemployment benefits by telephone, by electronic transmission, or 41.16by mail to appear for a personal interview at a place, time, and date designated, during 41.17which a written continued biweekly request for unemployment benefits form shall must be 41.18completed and submitted by the applicant.41.19    An applicant shall be is ineligible for unemployment benefits for the week or 41.20biweekly period covered by a continued biweekly request and the benefit account shall 41.21be is considered inactive if the applicant fails, without good cause, to comply with the 41.22requirement that the applicant appear for a personal interview and at that time complete 41.23and submit a written continued biweekly request form.41.24    Sec. 18. Minnesota Statutes 2006, section 268.105, subdivision 4, is amended to read:41.25    Subd. 4. Testimonial powers Oaths; subpoenas. An unemployment law judge may41.26has authority to administer oaths and affirmations, take depositions, and issue subpoenas 41.27to compel the attendance of witnesses and the production of documents and other personal 41.28property considered necessary as evidence in connection with the subject matter of 41.29an evidentiary hearing. The subpoenas shall be are enforceable through the district 41.30court in the district that the subpoena is issued Ramsey County. Witnesses subpoenaed, 41.31other than an involved applicant or involved employer or officers and employees of an 41.32involved employer, shall must be paid by the department the same witness fees as in a 41.33civil action in district court.42.1    Sec. 19. Minnesota Statutes 2006, section 268.188, is amended to read:42.2268.188 SUBPOENAS; OATHS.42.3    (a) The commissioner shall have power has authority to administer oaths and 42.4affirmations, take depositions, certify to official acts, and issue subpoenas to compel 42.5the attendance of individuals and the production of documents and other personal 42.6property necessary in connection with the administration of the Minnesota unemployment 42.7insurance program.42.8    (b) Individuals subpoenaed, other than applicants or officers and employees of an 42.9employer that is the subject of the inquiry, shall be allowed are paid witness fees the same 42.10as witness fees in civil actions in district court. The fees need not be paid in advance.42.11    (c) The subpoena shall be is enforceable through the district court in the district that 42.12the subpoena is issued Ramsey County.42.13    Sec. 20. Minnesota Statutes 2006, section 268.19, subdivision 1, is amended to read:42.14    Subdivision 1. Use of data. (a) Except as otherwise provided by this section, 42.15data gathered from any person pursuant to under the administration of the Minnesota 42.16Unemployment Insurance Law are private data on individuals or nonpublic data not on 42.17individuals as defined in section 
         13.02, subdivisions 9 and 12, and may not be disclosed 42.18except pursuant according to a district court order or section 
         13.05. A subpoena shall is42.19not be considered a district court order. These data may be disseminated to and used by 42.20the following agencies without the consent of the subject of the data:42.21    (1) state and federal agencies specifically authorized access to the data by state 42.22or federal law;42.23    (2) any agency of any other state or any federal agency charged with the 42.24administration of an unemployment insurance program;42.25    (3) any agency responsible for the maintenance of a system of public employment 42.26offices for the purpose of assisting individuals in obtaining employment;42.27    (4) the public authority responsible for child support in Minnesota or any other 42.28state in accordance with section 256.978;42.29    (4) (5) human rights agencies within Minnesota that have enforcement powers;42.30    (5) (6) the Department of Revenue only to the extent necessary for its duties under 42.31Minnesota laws;42.32    (6) (7) public and private agencies responsible for administering publicly financed 42.33assistance programs for the purpose of monitoring the eligibility of the program's 42.34recipients;43.1    (7) (8) the Department of Labor and Industry and the Division of Insurance 43.2Fraud Prevention in the Department of Commerce on an interchangeable basis with the 43.3department for uses consistent with the administration of their duties under Minnesota law;43.4    (8) (9) local and state welfare agencies for monitoring the eligibility of the data 43.5subject for assistance programs, or for any employment or training program administered 43.6by those agencies, whether alone, in combination with another welfare agency, or in 43.7conjunction with the department or to monitor and evaluate the statewide Minnesota 43.8family investment program by providing data on recipients and former recipients of food 43.9stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care 43.10assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;43.11    (9) (10) local and state welfare agencies for the purpose of identifying employment, 43.12wages, and other information to assist in the collection of an overpayment debt in an 43.13assistance program;43.14    (10) (11) local, state, and federal law enforcement agencies for the sole purpose of 43.15ascertaining the last known address and employment location of a person an individual43.16who is the subject of a criminal investigation;43.17    (11) (12) the federal Bureau of Citizenship and Immigration and Naturalization 43.18Service shall have Services has access to data on specific individuals and specific 43.19employers provided the specific individual or specific employer is the subject of an 43.20investigation by that agency; and43.21    (12) (13) the Department of Health solely for the purposes of epidemiologic 43.22investigations.43.23    (b) Data on individuals and employers that are collected, maintained, or used by 43.24the department in an investigation pursuant to under section 
         268.182 are confidential 43.25as to data on individuals and protected nonpublic data not on individuals as defined in 43.26section 
         13.02, subdivisions 3 and 13, and must not be disclosed except pursuant to under43.27statute or district court order or to a party named in a criminal proceeding, administrative 43.28or judicial, for preparation of a defense.43.29    (c) Data gathered by the department pursuant to in the administration of the 43.30Minnesota unemployment insurance program must not be made the subject or the basis for 43.31any suit in any civil proceedings, administrative or judicial, unless the action is initiated 43.32by the department.43.33    Sec. 21. Minnesota Statutes 2006, section 268.194, subdivision 2, is amended to read:43.34    Subd. 2. Commissioner of finance to be custodian; separate accounts. (a) The 43.35commissioner of finance shall be is the treasurer and custodian of the trust fund, and shall 44.1administer the trust fund in accordance with the directions of the commissioner, and 44.2issue warrants upon it. The commissioner of finance shall maintain within the trust fund 44.3three separate accounts:44.4    (1) a clearing account;44.5    (2) an unemployment trust fund account; and44.6    (3) an unemployment benefit payment account.44.7    All money payable to the trust fund, upon receipt by the commissioner, shall must be 44.8forwarded to the commissioner of finance who shall immediately deposit the money in 44.9the clearing account. All money in the clearing account, after clearance, shall must be 44.10deposited to the credit of Minnesota's account in the federal unemployment trust fund. Tax 44.11refunds payable pursuant to under section  
         268.057 may be paid from the clearing account 44.12or the unemployment benefit payment account. 44.13    (b) The unemployment benefit payment account shall consist consists of all money 44.14requisitioned from Minnesota's account in the federal unemployment trust fund for the 44.15payment of unemployment benefits. Money in the clearing and unemployment benefit 44.16payment accounts may be deposited by the commissioner of finance, under the direction 44.17of the commissioner, in any depository bank that general funds of Minnesota may be 44.18deposited, but no public deposit insurance charge or premium shall may be paid out of 44.19the trust fund. Money in the clearing and unemployment benefit payment accounts shall44.20must be maintained in separate accounts on the books of the depository bank. This money 44.21shall must be secured by the depository bank to the same extent and in the same manner 44.22as required by the general depository law of Minnesota.44.23    Sec. 22. Minnesota Statutes 2006, section 268.194, subdivision 3, is amended to read:44.24    Subd. 3. Exclusive use. (a) Money requisitioned from Minnesota's account in 44.25the federal unemployment trust fund shall must be used exclusively for the payment of 44.26unemployment benefits and for tax refunds pursuant to under section  
         268.057, except that 44.27money credited to Minnesota's account pursuant to under United States Code, title 42, 44.28section 1103 of the Social Security Act, also known as the Reed Act, may be used for 44.29the payment of expenses of administration. The commissioner shall from time to time44.30may requisition from the federal unemployment trust fund the amounts necessary for the 44.31payment of unemployment benefits and tax refunds for a reasonable future period. Upon 44.32receipt the commissioner of finance shall deposit the money in the unemployment benefit 44.33payment account and issue warrants for the payment of unemployment benefits solely 44.34from the unemployment benefit payment account. 45.1    (b) Expenditures of money in the unemployment benefit payment account and 45.2tax refunds from the clearing account shall are not be subject to any provisions of law 45.3requiring specific appropriations or other formal release by state officers.45.4    (c) All warrants issued for the payment of unemployment benefits and tax refunds 45.5shall bear the signature of the commissioner of finance and the counter signature of the 45.6commissioner.45.7    Sec. 23. Minnesota Statutes 2006, section 268.196, subdivision 3, is amended to read:45.8    Subd. 3. Contingent account. (a) There is hereby created in the state treasury a 45.9special account, to be known as the contingent account, that shall does not lapse nor 45.10revert to any other trust fund or account. This account shall consist consists of all money 45.11appropriated therefor by the legislature, all money in the form of interest and penalties45.12collected pursuant to sections  268.057,  268.18, and  268.184, all money received in the 45.13form of voluntary contributions to this account under this chapter that is required to be 45.14placed in this account, and any interest earned on the account. All money in this account 45.15shall be is supplemental to all federal money available to the commissioner. Money in 45.16this account is hereby appropriated to the commissioner and shall be is available to the 45.17commissioner for those expenditures the commissioner considers necessary in connection 45.18with the administration of the Minnesota unemployment insurance program. 45.19    (b) Whenever the commissioner spends money from the contingent account for the 45.20administration of the Minnesota unemployment insurance program for which money will 45.21later be made available by the federal government, the contingent account shall, when 45.22money is available, be reimbursed from the administration account. The commissioner 45.23shall certify to the commissioner of finance the amount of the reimbursement and the 45.24commissioner of finance shall transfer that amount from the administration account to 45.25the contingent account.45.26    (c) All money in this account shall must be deposited, administered, and disbursed 45.27in the same manner and under the same conditions and requirements as is provided by law 45.28for the other special accounts in the state treasury. On June 30 of each year, all amounts in 45.29excess of $300,000 in this account shall must be paid over to the unemployment insurance45.30trust fund.45.31    Sec. 24. REVISOR'S INSTRUCTION.45.32    (a) The revisor of statutes shall change the word "attorney" to "attorney licensed 45.33to practice law in Minnesota" in Minnesota Statutes, sections 268.067 and 268.105, 45.34subdivision 7.46.1    (b) The revisor of statutes shall change the term "common law burden of proof" to 46.2"burden of proof" in Minnesota Statutes, section 268.069.46.3    (c) The revisor of statutes shall change the term "continued biweekly request" to 46.4"continued request" in Minnesota Statutes, chapter 268.46.5    (d) The revisor of statutes shall change the term "14 days" to "14 calendar days" in 46.6Minnesota Statutes, section 268.086.46.7    (e) The revisor of statutes shall change the term "electronic mail address" to 46.8"electronic mail address or telephone number" in Minnesota Statutes, section 268.086. 46.9    Sec. 25. EFFECTIVE DATE.46.10    Sections 1 to 7 and 9 to 24 are effective September 30, 2007, except for section 24, 46.11paragraph (e), which is effective the day following final enactment. Section 8 is effective 46.12the day following final enactment.46.13ARTICLE 446.14ADMINISTRATIVE RULES INCORPORATED INTO STATUTES46.15    Section 1. STATEMENT OF INTENT.46.16    This article incorporates long-standing administrative rules into the statute. This 46.17incorporation is not intended to affect the application or interpretation of any provision.46.18    Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 15, is amended to read:46.19    Subd. 15. Employment.(a) "Employment" means service performed by:46.20    (1) an individual who is considered an employee under the common law of 46.21employer-employee and not considered an independent contractor;46.22    (2) an officer of a corporation;46.23    (3) a member of a limited liability company who is considered an employee under 46.24the common law of employer-employee; or46.25    (4) product demonstrators in retail stores or other locations to aid in the sale of 46.26products. The person that pays the wages is considered the employer; or46.27    (5) an individual who performs services for a person for compensation, as:46.28    (i) an agent-driver or commission-driver engaged in distributing meat products, 46.29vegetable products, fruit products, beverages, or laundry or dry cleaning services; or46.30    (ii) a traveling or city salesperson, other than as an agent-driver or commission-driver, 46.31engaged full-time in the solicitation on behalf of the person, of orders from wholesalers, 46.32retailers, contractors, or operators of hotels, restaurants, or other similar establishments for 46.33merchandise for resale or supplies for use in their business operations.47.1    This clause shall apply applies only if the contract of service provides that 47.2substantially all of the services are to be performed personally by the individual, and the 47.3services are part of a continuing relationship with the person for whom the services are 47.4performed, and the individual does not have a substantial investment in facilities used in 47.5connection with the performance of the services, other than facilities for transportation.47.6    (b) Employment does not include service as a juror.47.7    Sec. 3. Minnesota Statutes 2006, section 268.035, is amended by adding a subdivision 47.8to read:47.9    Subd. 25b.Trucking industry/independent contractors.In the trucking industry, 47.10an owner-operator of a vehicle that is licensed and registered as a truck, tractor, or 47.11truck-tractor by a governmental motor vehicle regulatory agency is an independent 47.12contractor, and is not considered an employee, while performing services in the operation 47.13of the truck only if each of the following factors is present:47.14    (1) the individual owns the equipment or holds it under a bona fide lease arrangement;47.15    (2) the individual is responsible for the maintenance of the equipment;47.16    (3) the individual bears the principal burdens of the operating costs, including fuel, 47.17repairs, supplies, vehicle insurance, and personal expenses while on the road;47.18    (4) the individual is responsible for supplying the necessary personal services 47.19to operate the equipment;47.20    (5) the individual's compensation is based on factors related to the work performed, 47.21such as a percentage of any schedule of rates, and not on the basis of the hours or time 47.22expended; and47.23    (6) the individual enters into a written contract that specifies the relationship to be 47.24that of an independent contractor and not that of an employee.47.25    Sec. 4. Minnesota Statutes 2006, section 268.035, subdivision 29, is amended to read:47.26    Subd. 29. Wages.(a) "Wages" means all compensation for services, including 47.27commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and 47.28holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by 47.29a customer of an employer and accounted for by the employee to the employer; sickness 47.30and accident disability payments, except as otherwise provided in this subdivision; and the 47.31cash value of all compensation in any medium other than cash housing, utilities, meals, 47.32exchanges of services, and any other goods and services provided to compensate for 47.33an employee's services, except:48.1    (1) the amount of any payment made to, or on behalf of, an employee under a plan 48.2established by an employer that makes provision for employees generally or for a class 48.3or classes of employees, including any amount paid by an employer for insurance or 48.4annuities, or into a plan, to provide for a payment, on account of (i) retirement or (ii) 48.5medical and hospitalization expenses in connection with sickness or accident disability, 48.6or (iii) death;48.7    (2) the payment by an employer of the tax imposed upon an employee under United 48.8States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect 48.9to compensation paid to an employee for domestic employment in a private household of 48.10the employer or for agricultural employment;48.11    (3) any payment made to, or on behalf of, an employee or beneficiary (i) from or 48.12to a trust described in United States Code, title 26, section 401(a) of the federal Internal 48.13Revenue Code, that is exempt from tax under section 501(a) at the time of the payment 48.14unless the payment is made to an employee of the trust as compensation for services as an 48.15employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at 48.16the time of the payment, is a plan described in section 403(a);48.17    (4) the value of any special discount or markdown allowed to an employee on goods 48.18purchased from or services supplied by the employer where the purchases are optional and 48.19do not constitute regular or systematic payment for services;48.20    (5) customary and reasonable directors' fees paid to individuals who are not 48.21otherwise employed by the corporation of which they are directors;48.22    (6) the payment to employees for reimbursement of meal expenses when employees 48.23are required to perform work after their regular hours;48.24    (7) the payment into a trust or plan for purposes of providing legal or dental services 48.25if provided for all employees generally or for a class or classes of employees;48.26    (8) the value of parking facilities provided or paid for by an employer, in whole or in 48.27part, if provided for all employees generally or for a class or classes of employees;48.28    (9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, 48.29or other right;48.30    (10) advances or reimbursements for traveling or other bona fide ordinary and 48.31necessary expenses incurred or reasonably expected to be incurred in the business of the 48.32employer. Traveling and other reimbursed expenses must be identified either by making 48.33separate payments or by specifically indicating the separate amounts where both wages 48.34and expense allowances are combined in a single payment;49.1    (11) residual payments to radio, television, and similar artists that accrue after 49.2the production of television commercials, musical jingles, spot announcements, radio 49.3transcriptions, film sound tracks, and similar activities;49.4    (12) supplemental unemployment benefits paid under a plan established by an 49.5employer, that makes provisions for employees generally or for a class or classes of 49.6employees for the supplementing of unemployment benefits under the written terms 49.7of an agreement, contract, trust arrangement, or other instrument if the plan provides 49.8benefits that are only supplemental to, and does not replace or duplicate any state or 49.9federal unemployment benefits. The plan must provide that funds are paid solely for the 49.10supplementing of state or federal unemployment benefits. The plan must provide that any 49.11supplemental benefits are payable only if the applicant has applied for all unemployment 49.12benefits available. The plan must provide that supplemental benefits, when combined with 49.13the applicant's weekly unemployment benefits available, may not exceed the applicant's 49.14regular weekly pay. The plan must not allow the assignment of supplemental benefits or 49.15payment upon the employee's withdrawal from the plan, or quitting of employment or the 49.16termination of the plan. The plan must not require any consideration from the applicant 49.17and must not be designed for the purpose of avoiding the payment of Social Security 49.18obligations, or unemployment taxes on money disbursed from the plan;49.19    (13) sickness or accident disability payments made by the employer after the 49.20expiration of six calendar months following the last calendar month that the individual 49.21worked for the employer;49.22    (5) (14) disability payments made under the provisions of any workers' compensation 49.23law;49.24    (6) (15) sickness or accident disability payments made by a third party payer such as 49.25an insurance company; or49.26    (7) (16) payments made into a trust fund, or for the purchase of insurance or an 49.27annuity, to provide for sickness or accident disability payments to employees pursuant 49.28to under a plan or system established by the employer that provides for the employer's 49.29employees generally or for a class or classes of employees; or.49.30    (8) (b) Nothing in this subdivision shall exclude excludes from the term "wages" any 49.31payment made under any type of salary reduction agreement, including payments made 49.32under a cash or deferred arrangement and cafeteria plan, as defined in United States Code, 49.33title 26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that 49.34the employee has the option to receive the payment in cash.49.35    (c) Wages includes payments made for services as a caretaker. Unless there is a 49.36contract or other proof to the contrary, compensation is considered as being equally 50.1received by a married couple where the employer makes payment to only one spouse, or 50.2by all tenants of a household who perform services where two or more individuals share 50.3the same dwelling and the employer makes payment to only one individual.50.4    (d) Wages includes payments made for services by a migrant family. Where services 50.5are performed by a married couple or a family and an employer makes payment to only 50.6one individual, each worker is considered as having received an equal share of the 50.7compensation unless there is a contract or other proof to the contrary.50.8    (e) Wages includes advances or draws against future earnings, when paid, unless 50.9the payments are designated as a loan or return of capital on the books of the employer 50.10at the time of payment.50.11    (f) Wages includes payments made by a subchapter "S" corporation, as organized 50.12under the Internal Revenue Code, to or on behalf of officers and shareholders that are 50.13reasonable compensation for services performed for the corporation.50.14    For a subchapter "S" corporation, wages does not include:50.15    (1) a loan for business purposes to an officer or shareholder evidenced by a 50.16promissory note signed by an officer before the payment of the loan proceeds and recorded 50.17on the books and records of the corporation as a loan to an officer or shareholder;50.18    (2) a repayment of a loan or payment of interest on a loan made by an officer to the 50.19corporation and recorded on the books and records of the corporation as a liability;50.20    (3) a reimbursement of reasonable corporation expenses incurred by an officer and 50.21documented by a written expense voucher and recorded on the books and records of 50.22the corporation as corporate expenses; and50.23    (4) a reasonable lease or rental payment to an officer who owns property that is 50.24leased or rented to the corporation.50.25    Sec. 5. Minnesota Statutes 2006, section 268.042, subdivision 1, is amended to read:50.26    Subdivision 1. Employer registration. (a) Each employer shall must, upon or 50.27before the submission of its first wage detail report under section 
         268.044, register with 50.28the commissioner for a tax account or a reimbursable account, by electronic transmission 50.29in a format prescribed by the commissioner. The employer must provide all required 50.30information for registration, including the actual physical street and city address of the 50.31employer.50.32    (b) Within 30 calendar days, each employer must notify the commissioner by 50.33electronic transmission, in a format prescribed, of a change in legal entity, of the 50.34transfer, sale, or acquisition of a business conducted in Minnesota, in whole or in part, 50.35if the transaction results in the creation of a new or different employer or affects the 51.1establishment of employer accounts, the assignment of tax rates, or the transfer of 51.2experience rating history.51.3    (c) Except as provided in subdivision 3, any person that is or becomes an employer 51.4subject to the Minnesota Unemployment Insurance Law because of the application of 51.5section 268.035, subdivision 20, clause (14), (17), or (33), within any calendar year shall 51.6be is considered to be subject to this chapter the entire calendar year.51.7    (c) Upon (d) Within 30 calendar days of the termination of business, an employer 51.8that has been assigned a tax account or reimbursable account shall must notify the 51.9commissioner by electronic transmission, in a format prescribed by the commissioner, 51.10that the employer no longer has employees and does not intend or expect to pay wages 51.11to any employees in the next calendar year and into the foreseeable future. Upon such51.12notification, the commissioner shall not require the employer is no longer required to file 51.13wage detail reports under section 
         268.044, subdivision 1, paragraph (d).51.14    (e) An employer that has terminated business regains its previous tax account under 51.15section 268.045, with the experience rating history of that account, if the employer again 51.16commences business and if:51.17    (1) less than 14 calendar quarters have elapsed in which no wages were paid for 51.18covered employment;51.19    (2) the experience rating history regained contains taxable wages; and51.20    (3) the experience rating history has not been transferred to a successor under 51.21section 268.051, subdivision 4.51.22    Sec. 6.  REPEALER.51.23Minnesota Rules, parts 3315.0210; 3315.0220; 3315.0515; 3315.0520; 3315.0525; 51.243315.0530, subparts 2, 3, 4, 5, and 6; 3315.0540; 3315.0550; 3315.0910, subparts 1, 2, 51.253, 4, 5, 6, 7, and 8; 3315.1005, subparts 1 and 3; 3315.1315, subpart 4; 3315.2010; and 51.263315.2810, subparts 2 and 4, are repealed.51.27    Sec. 7. EFFECTIVE DATE.51.28    Sections 1 to 6 are effective September 30, 2007.51.29ARTICLE 551.30TERMINOLOGY CHANGE51.31    Section 1. STATEMENT OF INTENT.51.32    This article substitutes the term "disqualify" or similar terms with the term 51.33"ineligible" or similar terms in Minnesota Statutes, chapter 268. Both terms are currently 52.1used throughout the unemployment insurance law. This substitution is not intended as 52.2a substantive change. It is done for simplification, to achieve consistency and avoid 52.3confusion, as the terms have the same common meaning and the same effect under the 52.4statute.52.5    Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 12, is amended to read:52.6    Subd. 12. Covered employment. "Covered employment" means the following 52.7unless excluded as "noncovered employment" under subdivision 20:52.8    (1) an employee's entire employment during the calendar quarter if:52.9    (i) the employment is performed entirely in Minnesota;52.10    (ii) the employment is performed primarily in Minnesota, and the employment 52.11performed outside Minnesota is incidental to the employment in Minnesota; or52.12    (iii) the employment is not performed primarily in any one state but some of the 52.13employment is performed in Minnesota and the base of operations or the place from which 52.14the employment is directed or controlled is in Minnesota; or the base of operations or 52.15place from which the employment is directed or controlled is not in any state in which52.16where part of the employment is performed, but the employee's residence is in Minnesota;52.17    (2) an employee's employment during the calendar quarter wherever performed 52.18within the United States or Canada, if:52.19    (i) the employment is not covered under the unemployment insurance program of 52.20any other state or Canada; and52.21    (ii) the place from which the employment is directed or controlled is in Minnesota;52.22    (3) the employment during the calendar quarter of an employee who is a citizen of 52.23the United States, performed outside the United States, except in Canada, in the employ of 52.24an American employer if:52.25    (i) the employer's principal place of business in the United States is located in 52.26Minnesota;52.27    (ii) the employer has no place of business in the United States, but the employer 52.28is an individual who is a resident of Minnesota, or the employer is a corporation that is 52.29organized under the laws of Minnesota, or the employer is a partnership or a trust and the 52.30number of partners or trustees who are residents of Minnesota is greater than the number 52.31who are residents of any one other state;52.32    (iii) none of the criteria of subclauses (i) and (ii) is met but the employer has elected 52.33coverage in Minnesota, or the employer having failed to elect coverage in any state, 52.34an applicant has made an application for unemployment benefits under section    
         268.07, 52.35based on the employment; 53.1    (iv) an "American employer," for the purposes of this subdivision, means an 53.2individual who is a resident of the United States, or a partnership if two-thirds or more 53.3of the partners are residents of the United States, or a trust, if all of the trustees are 53.4residents of the United States, or a corporation organized under the laws of the United 53.5States, or of any state; or53.6    (v) as used in this subdivision, the term "United States" includes the states, the 53.7District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands;53.8    (4) all employment during the calendar quarter performed by an officer or member 53.9of the crew of an American vessel on or in connection with the vessel, if the operating 53.10office from which the operations of the vessel operating on navigable waters within, or 53.11within and without, the United States are ordinarily and regularly supervised, managed, 53.12directed, and controlled is in Minnesota; and53.13    (5) for the purposes of satisfying disqualifications the period of ineligibility under 53.14section    
         268.095, subdivision 10, "covered employment" shall include includes covered 53.15employment under an unemployment insurance program of any other state or employment 53.16covered under an unemployment insurance program established by an act of Congress. 53.17    Sec. 3. Minnesota Statutes 2006, section 268.069, subdivision 1, is amended to read:53.18    Subdivision 1. Requirements. The commissioner shall pay unemployment benefits 53.19from the trust fund to an applicant who has met each of the following requirements:53.20    (1) the applicant has filed an application for unemployment benefits and established 53.21a benefit account in accordance with section 
         268.07;53.22    (2) the applicant is has not subject to a disqualification from been held ineligible for53.23unemployment benefits under section 
         268.095 because of a quit or discharge;53.24    (3) the applicant has met all of the ongoing eligibility requirements under sections 53.25268.085
          and 
         268.086;53.26    (4) the applicant does not have an outstanding overpayment of unemployment 53.27benefits, including any penalties or interest; and53.28    (5) the applicant is has not been held ineligible for unemployment benefits under 53.29section 
         268.182 because of a false representation or concealment of facts.53.30    Sec. 4. Minnesota Statutes 2006, section 268.095, subdivision 4, is amended to read:53.31    Subd. 4. Discharge. An applicant who was discharged from employment by an 53.32employer shall be disqualified from is ineligible for all unemployment benefits according 53.33to subdivision 10 only if:54.1    (1) the applicant was discharged because of employment misconduct as defined 54.2in subdivision 6; or54.3    (2) the applicant was discharged because of aggravated employment misconduct as 54.4defined in subdivision 6a.54.5    Sec. 5. Minnesota Statutes 2006, section 268.095, subdivision 7, is amended to read:54.6    Subd. 7. Act or omissions after separation. An applicant shall may not be 54.7disqualified from held ineligible for unemployment benefits under section 268.085, 54.8subdivision 13c, and this section for any acts or omissions occurring after the applicant's 54.9separation from employment with the employer. A layoff due to because of lack of work 54.10is considered a separation from employment.54.11    Sec. 6. Minnesota Statutes 2006, section 268.095, subdivision 10, is amended to read:54.12    Subd. 10. Disqualification Ineligibility duration. (a) A disqualification54.13Ineligibility from the payment of all unemployment benefits under subdivisions 1 and 54.144 shall be is for the duration of the applicant's unemployment and until the end of the 54.15calendar week that the applicant had total earnings in subsequent covered employment of 54.16eight times the applicant's weekly unemployment benefit amount.54.17    (b) Any disqualification Ineligibility imposed under subdivisions 1 and 4 shall begin54.18begins on the Sunday of the week that the applicant became separated from employment.54.19    (c) In addition to paragraph (a), if the applicant was discharged from employment 54.20because of aggravated employment misconduct, wage credits from that employment 54.21shall be are canceled.54.22    Sec. 7. Minnesota Statutes 2006, section 268.101, is amended to read:54.23268.101 DETERMINATIONS ON ISSUES OF DISQUALIFICATION AND 54.24ELIGIBILITY INELIGIBILITY.54.25    Subdivision 1. Notification. (a) In an application for unemployment benefits, 54.26each applicant shall must report the name and the reason for no longer working for the 54.27applicant's most recent employer, as well as the names of all employers and the reasons 54.28for no longer working for all employers during the six calendar months prior to before54.29the date of the application. If the reason reported for no longer working for any of those 54.30employers is other than a layoff due to because of lack of work, that shall raise raises54.31an issue of disqualification ineligibility that the department shall must determine. An 54.32applicant shall must report any offers of employment refused during the eight calendar 54.33weeks prior to before the date of the application for unemployment benefits and the name 55.1of the employer that made the offer. An applicant's failure to report the name of an 55.2employer, or giving an incorrect reason for no longer working for an employer, or failing 55.3to disclose an offer of employment that was refused, shall be considered is a violation of 55.4section 
         268.182, subdivision 2.55.5    In an application, the applicant shall must  also provide all information necessary to 55.6determine the applicant's eligibility for unemployment benefits under section 268.085 this 55.7chapter. If the applicant fails or refuses to provide information necessary to determine 55.8the applicant's eligibility for unemployment benefits under section 268.085, the applicant 55.9shall be is ineligible for unemployment benefits under section 
         268.085, subdivision 2, until 55.10the applicant provides this required information.55.11    (b) Upon establishment of a benefit account under section 268.07, subdivision 2, the 55.12commissioner shall notify, by mail or electronic transmission, all employers the applicant 55.13was required to report on the application and all base period employers and determined 55.14successors to those employers under section 
         268.051, subdivision 4, in order to provide the 55.15employer an opportunity to raise, in a manner and format prescribed by the commissioner, 55.16any issue of disqualification or any issue of eligibility ineligibility. An employer shall55.17must be informed of the effect that failure to raise an issue of disqualification ineligibility 55.18as a result of a quit or discharge of the applicant, within ten calendar days after sending of 55.19the notice, as provided for under subdivision 2, paragraph (b), may have on the employer 55.20under section 
         268.047.55.21    (c) Each applicant shall must report any employment, and loss of employment, and 55.22offers of employment refused, during those weeks the applicant filed continued biweekly55.23requests for unemployment benefits pursuant to under section 
         268.086. Each applicant 55.24who stops filing continued biweekly requests during the benefit year and later begins 55.25filing continued biweekly requests during that same benefit year shall must report the 55.26name of any employer the applicant worked for during the period between the filing 55.27of continued biweekly requests and the reason the applicant stopped working for the 55.28employer. The applicant shall must report any offers of employment refused during the 55.29period between the filing of continued biweekly requests for unemployment benefits. 55.30Those employers from which the applicant has reported a loss of employment pursuant 55.31to under this paragraph shall must be notified by mail or electronic transmission and 55.32provided an opportunity to raise, in a manner prescribed by the commissioner, any issue 55.33of disqualification or any issue of eligibility ineligibility. An employer shall must be 55.34informed of the effect that failure to raise an issue of ineligibility as a result of a quit or a 55.35discharge of the applicant may have on the employer under section 
         268.047.56.1    (d) The purpose for requiring the applicant to report the name of employers and the 56.2reason for no longer working for those employers, or offers of employment refused, under 56.3paragraphs (a) and (c) is for the commissioner to obtain information from an applicant 56.4raising all issues that may have the potential of disqualifying result in the applicant from56.5being ineligible for unemployment benefits under section 
         268.095, because of a quit or 56.6discharge, or the applicant being ineligible for unemployment benefits under section 56.7268.085, subdivision 13c
         . If the reason given by the applicant for no longer working for 56.8an employer is other than a layoff due to because of lack of work, that shall raise raises56.9an issue of disqualification ineligibility and the applicant shall be is required, as part 56.10of the determination process under subdivision 2, paragraph (a), to state all the facts 56.11about the cause for no longer working for the employer, if known. If the applicant fails 56.12or refuses to provide any required information, the applicant shall be is ineligible for 56.13unemployment benefits under section 
         268.085, subdivision 2, until the applicant provides 56.14this required information.56.15    Subd. 2. Disqualification Determination. (a) The commissioner shall determine 56.16any issue of disqualification ineligibility raised by information required from an applicant 56.17under subdivision 1, paragraph (a) or (c), and send to the applicant and any involved 56.18employer, by mail or electronic transmission, a determination of disqualification eligibility56.19or a determination of nondisqualification ineligibility, as is appropriate. The determination 56.20shall on an issue of ineligibility as a result of a quit or a discharge of the applicant must56.21state the effect on the employer under section 
         268.047. A determination shall must be 56.22made pursuant to in accordance with this paragraph even if a notified employer has not 56.23raised the issue of disqualification ineligibility.56.24    (b) The commissioner shall determine any issue of disqualification ineligibility56.25raised by an employer and send to the applicant and that employer, by mail or electronic 56.26transmission, a determination of disqualification eligibility or a determination of 56.27nondisqualification ineligibility as is appropriate. The determination shall on an issue of 56.28ineligibility as a result of a quit or discharge of the applicant must state the effect on the 56.29employer under section 
         268.047.56.30    If a base period employer:56.31    (1) was not the applicant's most recent employer prior to before the application for 56.32unemployment benefits;56.33    (2) did not employ the applicant during the six calendar months prior to before the 56.34application for unemployment benefits; and57.1    (3) did not raise an issue of disqualification ineligibility as a result of a quit or 57.2discharge of the applicant within ten calendar days of notification under subdivision 1, 57.3paragraph (b);57.4then any exception under section 
         268.047, subdivisions 2 and 3, shall begin begins the 57.5Sunday two weeks following the week that the issue of disqualification ineligibility as a 57.6result of a quit or discharge of the applicant was raised by the employer.57.7    A communication from an employer must specifically set out why the applicant 57.8should be determined ineligible for unemployment benefits for that communication to be 57.9considered to have raised an issue of ineligibility for purposes of this section. A statement 57.10of "protest" or a similar term without more information does not constitute raising an issue 57.11of ineligibility for purposes of this section.57.12    (c) If any time within 24 months from the establishment of a benefit account 57.13the commissioner finds that an applicant failed to report any employment, or loss of 57.14employment that was required to be provided by the applicant under this section, the 57.15commissioner shall determine any issue of disqualification on that loss of employment 57.16and send to the applicant and involved employer, by mail or electronic transmission, 57.17a determination of disqualification or a determination of nondisqualification, as is 57.18appropriate. The determination shall state the effect on the employer under section 57.19268.047.57.20    This paragraph shall not prevent the imposition of any penalty under section 268.18, 57.21subdivision 2, or 268.182.57.22    (d) (c) An issue of disqualification shall be ineligibility is determined based upon 57.23that information required of an applicant, any information that may be obtained from an 57.24applicant or employer, and information from any other source, without regard to any 57.25common law burden of proof.57.26    (e) A determination of disqualification or a determination of nondisqualification shall 57.27be final unless an appeal is filed by the applicant or notified employer within 30 calendar 57.28days after sending. The determination shall contain a prominent statement indicating 57.29the consequences of not appealing. Proceedings on the appeal shall be conducted in 57.30accordance with section 268.105.57.31    (f) An issue of disqualification for purposes of this section shall include any reason 57.32for no longer working for an employer other than a layoff due to lack of work, any 57.33question of a disqualification from unemployment benefits under section 268.095, any 57.34question of an exception to disqualification under section 268.095, any question of effect 57.35on an employer under section 268.047, and any question of an otherwise imposed 57.36disqualification that an applicant has satisfied under section 268.095, subdivision 10.58.1    (g) (d) Regardless of the requirements of this subdivision, the commissioner is not 58.2required to send to an applicant a copy of the determination where the applicant has 58.3satisfied any otherwise potential disqualification period of ineligibility because of a quit or 58.4a discharge under section 
         268.095, subdivision 10.58.5    (e) The commissioner may issue a determination on an issue of ineligibility at any 58.6time within 24 months from the establishment of a benefit account based upon information 58.7from any source, even if the issue of ineligibility was not raised by the applicant or an 58.8employer.58.9    This paragraph does not prevent the imposition of a penalty under section  268.18, 58.10subdivision 2, or  268.182. 58.11    (f) A determination of eligibility or determination of ineligibility is final unless an 58.12appeal is filed by the applicant or notified employer within 20 calendar days after sending. 58.13The determination must contain a prominent statement indicating the consequences of not 58.14appealing. Proceedings on the appeal are conducted in accordance with section  268.105. 58.15    (g) An issue of ineligibility required to be determined under this section includes 58.16any question regarding the denial or allowing of unemployment benefits under this chapter 58.17except for issues under section 268.07. An issue of ineligibility for purposes of this section 58.18includes any question of effect on an employer under section 268.047. 58.19    (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant, 58.20the employer will be (1) sent a copy of the determination of eligibility or a determination 58.21of ineligibility, or (2) considered an involved employer for purposes of an appeal under 58.22section  268.105, only if the employer raised the issue of ineligibility. 58.23    Subd. 3.Eligibility determination.(a) The commissioner shall determine any 58.24issue of eligibility raised by an employer, and send to the applicant and that employer, 58.25by mail or electronic transmission, a determination of eligibility or a determination 58.26of ineligibility, as is appropriate.58.27    (b) The commissioner shall determine any issue of eligibility raised by information 58.28obtained from an applicant and send to the applicant, by mail or electronic transmission, 58.29a determination of eligibility or a determination of ineligibility, as is appropriate. A 58.30determination shall be made pursuant to this paragraph even if a notified employer has 58.31not raised the issue of eligibility.58.32    (c) If any time within 24 months from the establishment of a benefit account the 58.33commissioner finds the applicant failed to provide, on an application for unemployment 58.34benefits or on a continued biweekly request for unemployment benefits, requested 58.35information on an issue of eligibility, the commissioner shall determine the issue of 59.1eligibility and send to the applicant, by mail or electronic transmission, a determination of 59.2eligibility or a determination of ineligibility, as is appropriate.59.3    This paragraph shall not prevent the imposition of a penalty under section 268.18, 59.4subdivision 2, or 268.182. 59.5    (d) A determination of eligibility or determination of ineligibility shall be final 59.6unless an appeal is filed by the applicant or notified employer within 30 calendar 59.7days after sending. The determination shall contain a prominent statement indicating 59.8the consequences of not appealing. Proceedings on the appeal shall be conducted in 59.9accordance with section 268.105. 59.10    (e) An issue of eligibility for purposes of this section shall include any question 59.11regarding the denial or allowing of unemployment benefits under sections 268.085, 59.12268.086, 268.115, 268.125, 268.135, and 268.155. 59.13    (f) Only if an employer raised the issue of eligibility shall the employer be: (1) sent 59.14the determination of eligibility or a determination of ineligibility, or (2) considered an 59.15involved employer for purposes of an appeal under section 268.105. 59.16    Subd. 3a. Direct hearing. Regardless of any provision of the Minnesota 59.17Unemployment Insurance Law, the commissioner or an unemployment law judge 59.18may, prior to before a determination being made under this chapter, refer any issue of 59.19disqualification, any issue of eligibility ineligibility, or any other issue under this chapter, 59.20directly for hearing in accordance with section 
         268.105, subdivision 1. The status of the 59.21issue shall be is the same as if a determination had been made and an appeal filed.59.22    Subd. 4. Amended determination. Unless an appeal has been filed, the 59.23commissioner, on the commissioner's own motion, may reconsider a determination of 59.24disqualification or nondisqualification or a determination of eligibility or ineligibility that 59.25has not become final and issue an amended determination. Any amended determination 59.26shall must be sent to the applicant and any involved employer by mail or electronic 59.27transmission. Any amended determination shall be is final unless an appeal is filed by the 59.28applicant or notified employer within 30 20 calendar days after sending. Proceedings on 59.29the appeal shall be are conducted in accordance with section 
         268.105. 59.30    Subd. 5. Unemployment benefit payment. If a determination or amended 59.31determination allows unemployment benefits to an applicant, the unemployment benefits 59.32shall must be paid regardless of any appeal period or any appeal having been filed.59.33    Subd. 6. Overpayment. A determination or amended determination that holds an 59.34applicant disqualified or ineligible for unemployment benefits for periods an applicant 59.35has been paid benefits is considered an overpayment of those unemployment benefits 59.36under section 
         268.18, subdivision 1. 60.1    Sec. 8. Minnesota Statutes 2006, section 268.125, subdivision 3, is amended to read:60.2    Subd. 3. Eligibility conditions. An applicant is eligible to receive additional 60.3unemployment benefits for any week during the applicant's benefit year if:60.4    (1) the applicant was laid off from employment as a result of a reduction under 60.5subdivision 1 or was laid off due to because of lack of work from that employer during the 60.6three-month period before, or the three-month period after, the month of the reduction 60.7under subdivision 1;60.8    (2) the applicant meets the eligibility requirements under section  
         268.085; 60.9    (3) the applicant is not subject to a disqualification ineligible under section  
         268.09560.10because of a quit or a discharge; for the purpose of this subdivision, the disqualifying 60.11conditions in section  268.095, and the requalifying requirements, apply to the receipt of 60.12additional unemployment benefits;60.13    (4) the applicant has exhausted regular unemployment benefits under section  
         268.07, 60.14is not entitled to receive extended unemployment benefits under section  
         268.115, and 60.15is not entitled to receive unemployment benefits under any other state or federal law 60.16for that week; and 60.17    (5) a majority of the applicant's wage credits were from the employer that had a 60.18reduction in operations under subdivision 1.60.19    Sec. 9. REVISOR'S INSTRUCTION.60.20    In the headnote of Minnesota Statutes, section 268.095, the revisor of statutes shall 60.21change the term "DISQUALIFICATION" to "INELIGIBILITY."60.22    Sec. 10. EFFECTIVE DATE.60.23    This article applies to all department determinations, appeal decisions, and other 60.24actions done on or after September 30, 2007.60.25ARTICLE 660.26STYLE CHANGES60.27    Section 1. STATEMENT OF INTENT.60.28    This article makes style changes that conform to preferred modern statutory drafting 60.29conventions for the use of clear, concise, and plain language.60.30    Sec. 2. Minnesota Statutes 2006, section 268.001, is amended to read:60.31268.001 CITATION; MINNESOTA UNEMPLOYMENT INSURANCE LAW.61.1    This chapter shall will be known and may be cited as the "Minnesota Unemployment 61.2Insurance Law."61.3    Sec. 3. Minnesota Statutes 2006, section 268.03, subdivision 1, is amended to read:61.4    Subdivision 1. Statement. The public purpose of this chapter is: Economic 61.5insecurity due to because of involuntary unemployment of workers in Minnesota is a 61.6subject of general concern that requires appropriate action by the legislature. The public 61.7good will beis promoted by providing workers who are unemployed through no fault 61.8of their own a temporary partial wage replacement to assist the unemployed worker to 61.9become reemployed. This program will be known asis the "Minnesota unemployment 61.10insurance program."61.11    Sec. 4. Minnesota Statutes 2006, section 268.03, subdivision 2, is amended to read:61.12    Subd. 2. Standard of proof. All issues of fact under the Minnesota Unemployment 61.13Insurance Law shall be are determined by a preponderance of the evidence. Preponderance 61.14of the evidence means evidence in substantiation of a fact that, when weighed against the 61.15evidence opposing the fact, is more convincing and has a greater probability of truth.61.16    Sec. 5. Minnesota Statutes 2006, section 268.035, subdivision 9, is amended to read:61.17    Subd. 9. Construction/independent contractor. A worker doing commercial 61.18or residential building construction or improvement, in the public or private sector, 61.19performing services in the course of the trade, business, profession, or occupation of the 61.20employer, shall be is considered an employee and not an "independent contractor" unless 61.21the worker meets all the following conditions:61.22    (1) maintains a separate business with the independent contractor's own office, 61.23equipment, materials, and other facilities;61.24    (2) holds or has applied for a federal employer identification number or has filed 61.25business or self-employment income tax returns with the federal Internal Revenue Service 61.26based on that work or service in the previous year;61.27    (3) operates under contracts to perform specific services or work for specific amounts 61.28of money under which the independent contractor controls the means of performing the 61.29services or work;61.30    (4) incurs the main expenses related to the service or work that the independent 61.31contractor performs under contract;62.1    (5) is responsible for the satisfactory completion of work or services that the 62.2independent contractor contracts to perform and is liable for a failure to complete the 62.3work or service;62.4    (6) receives compensation for work or service performed under a contract on a 62.5commission or per job or competitive bid basis and not on any other basis;62.6    (7) may realize a profit or suffer a loss under contracts to perform work or service;62.7    (8) has continuing or recurring business liabilities or obligations; and62.8    (9) the success or failure of the independent contractor's business depends on the 62.9relationship of business receipts to expenditures.62.10    Sec. 6. Minnesota Statutes 2006, section 268.035, subdivision 10, is amended to read:62.11    Subd. 10. Corporation. "Corporation" includes associations, joint-stock 62.12companies, and insurance companies. This definition shallis not be exclusive.62.13    Sec. 7. Minnesota Statutes 2006, section 268.035, subdivision 11, is amended to read:62.14    Subd. 11. Covered agricultural employment. "Covered agricultural employment" 62.15means agricultural employment where:62.16    (1) The employment is performed for a person who:62.17    (i) during any calendar quarter in either the current or the prior calendar year paid 62.18wages of $20,000 or more to employees in agricultural employment; or62.19    (ii) for some portion of a day in each of 20 different calendar weeks, whether or 62.20not the weeks were consecutive, in either the current or prior calendar year employed 62.21in agricultural employment four or more employees, regardless of whether they were 62.22employed at the same time.62.23    (2) Any employee who is a member of a crew furnished by a crew leader to be 62.24employed in agricultural employment for any other person shall be is treated as an 62.25employee of the crew leader:62.26    (i) if the crew leader holds a valid certificate of registration under United States 62.27Code, title 29, section 1802, the Migrant and Seasonal Agricultural Worker Protection 62.28Act; or substantially all of the members of the crew operate or maintain tractors, 62.29mechanized harvesting or crop dusting equipment, or any other mechanized equipment, 62.30that is provided by the crew leader; and62.31    (ii) if the employee is not an employee of another person.62.32    (3) Any employee who is furnished by a crew leader to be employed in agricultural 62.33employment for any other person and who is not treated as an employee of the crew 62.34leader under clause (2):63.1    (i) the other person and not the crew leader shall be is treated as the employer of 63.2the employee; and63.3    (ii) the other person shall be is treated as having paid wages to the employee in an 63.4amount equal to the amount of wages paid to the employee by the crew leader (either on 63.5the crew leader's behalf or on behalf of the other person) for the agricultural employment 63.6performed for the other person.63.7    (4) The term "crew leader" means an individual who:63.8    (i) furnishes employees to be employed in agricultural employment for any other 63.9person;63.10    (ii) pays (either on the crew leader's own behalf or on behalf of the other person) 63.11the employees furnished by the crew leader for the agricultural employment performed 63.12by them; and63.13    (iii) has not entered into a written agreement with the other person under which the 63.14furnished employee is designated as an employee of the other person.63.15    (5) Employment of an officer or shareholder of a family farm corporation shall be is 63.16excluded from covered agricultural employment unless the corporation is an employer 63.17under United States Code, title 26, section 3306(a)(2) of the Federal Unemployment 63.18Tax Act.63.19    (6) Employment of an individual 16 years of age or under shall be is excluded from 63.20covered agricultural employment unless the employer is an employer under United States 63.21Code, title 26, section 3306(a)(2) of the Federal Unemployment Tax Act.63.22    Sec. 8. Minnesota Statutes 2006, section 268.035, subdivision 13, is amended to read:63.23    Subd. 13. Employee. "Employee" means:63.24    (1) every individual who is performing or has performed services for an employer 63.25in employment; or63.26    (2) each individual employed to perform or assist in performing the work of any 63.27agent or employee of the employer shall be is considered to be an employee of that 63.28employer whether the individual was hired or paid directly by that employer or by the agent 63.29or employee, provided the employer had actual or constructive knowledge of the work.63.30    Sec. 9. Minnesota Statutes 2006, section 268.035, subdivision 20, is amended to read:63.31    Subd. 20. Noncovered employment. "Noncovered employment" means:63.32    (1) employment for the United States government or an instrumentality thereof, 63.33including military service;64.1    (2) employment for a state, other than Minnesota, or a political subdivision or 64.2instrumentality thereof;64.3    (3) employment for a foreign government;64.4    (4) employment for an instrumentality wholly owned by a foreign government, 64.5if the employment is of a character similar to that performed in foreign countries by 64.6employees of the United States government or an instrumentality thereof and the United 64.7States Secretary of State has certified that the foreign government grants an equivalent 64.8exemption to similar employment performed in the foreign country by employees of the 64.9United States government and instrumentalities thereof;64.10    (5) employment covered under United States Code, title 45, section 351, the 64.11Railroad Unemployment Insurance Act;64.12    (6) employment covered by a reciprocal arrangement between the commissioner 64.13and another state or the federal government which that provides that all employment 64.14performed by an individual for an employer during the period covered by the reciprocal 64.15arrangement is considered performed entirely within another state;64.16    (7) employment for a church or convention or association of churches, or an 64.17organization operated primarily for religious purposes that is operated, supervised, 64.18controlled, or principally supported by a church or convention or association of churches 64.19described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue 64.20Code and exempt from income tax under section 501(a);64.21    (8) employment of a duly ordained or licensed minister of a church in the exercise of 64.22a ministry or by a member of a religious order in the exercise of duties required by the 64.23order, for Minnesota or a political subdivision or an organization described in United 64.24States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt 64.25from income tax under section 501(a);64.26    (9) employment of an individual receiving rehabilitation of "sheltered" work in 64.27a facility conducted for the purpose of carrying out a program of rehabilitation for 64.28individuals whose earning capacity is impaired by age or physical or mental deficiency 64.29or injury or a program providing "sheltered" work for individuals who because of an 64.30impaired physical or mental capacity cannot be readily absorbed in the competitive labor 64.31market. This clause applies only to services performed for Minnesota or a political 64.32subdivision or an organization described in United States Code, title 26, section 501(c)(3) 64.33of the federal Internal Revenue Code and exempt from income tax under section 501(a) 64.34in a facility certified by the Rehabilitation Services Branch of the department or in a day 64.35training or habilitation program licensed by the Department of Human Services;65.1    (10) employment of an individual receiving work relief or work training as part of 65.2an unemployment work relief or work training program assisted or financed in whole or 65.3in part by any federal agency or an agency of a state or political subdivision thereof. 65.4This clause applies only to employment for Minnesota or a political subdivision or an 65.5organization described in United States Code, title 26, section 501(c)(3) of the federal 65.6Internal Revenue Code and exempt from income tax under section 501(a). This clause 65.7shall does not apply to programs that require unemployment benefit coverage for the 65.8participants;65.9    (11) employment for Minnesota or a political subdivision as an elected official, a 65.10member of a legislative body, or a member of the judiciary;65.11    (12) employment as a member of the Minnesota National Guard or Air National 65.12Guard;65.13    (13) employment for Minnesota, a political subdivision, or instrumentality thereof, 65.14as an employee serving only on a temporary basis in case of fire, flood, tornado, or 65.15similar emergency;65.16    (14) employment as an election official or election worker for Minnesota or a 65.17political subdivision, but only if the compensation for that employment was less than 65.18$1,000 in a calendar year;65.19    (15) employment for Minnesota that is a major policy making or advisory position 65.20in the unclassified service, including those positions established pursuant to under section 65.2143A.08, subdivision 1a
         ;65.22    (16) employment for a political subdivision of Minnesota that is a nontenured major 65.23policy making or advisory position;65.24    (17) domestic employment in a private household, local college club, or local 65.25chapter of a college fraternity or sorority performed for a person, only if the wages paid in 65.26any calendar quarter in either the current or precedingprior calendar year to all individuals 65.27in domestic employment totaled less than $1,000.65.28    "Domestic employment" includes all service in the operation and maintenance of a 65.29private household, for a local college club, or local chapter of a college fraternity or 65.30sorority as distinguished from service as an employee in the pursuit of an employer's 65.31trade or business;65.32    (18) employment of an individual by a son, daughter, or spouse, and employment of 65.33a child under the age of 18 by the child's father or mother;65.34    (19) employment of an inmate of a custodial or penal institution;65.35    (20) employment for a school, college, or university by a student who is enrolled 65.36and is regularly attending classes at the school, college, or university;66.1    (21) employment of an individual who is enrolled as a student in a full-time program 66.2at a nonprofit or public educational institution that maintains a regular faculty and 66.3curriculum and has a regularly organized body of students in attendance at the place where 66.4its educational activities are carried on, taken for credit at the institution, that combines 66.5academic instruction with work experience, if the employment is an integral part of the 66.6program, and the institution has so certified to the employer, except that this clause shall66.7does not apply to employment in a program established for or on behalf of an employer 66.8or group of employers;66.9    (22) employment of university, college, or professional school students in an 66.10internship or other training program with the city of St. Paul or the city of Minneapolis 66.11pursuant to under Laws 1990, chapter 570, article 6, section 3;66.12    (23) employment for a hospital by a patient of the hospital. "Hospital" means an 66.13institution that has been licensed by the Department of Health as a hospital;66.14    (24) employment as a student nurse for a hospital or a nurses' training school by 66.15an individual who is enrolled and is regularly attending classes in an accredited nurses' 66.16training school;66.17    (25) employment as an intern for a hospital by an individual who has completed a 66.18four-year course in an accredited medical school;66.19    (26) employment as an insurance salesperson, by other than a corporate officer, if all 66.20the wages from the employment is solely by way of commission. The word "insurance" 66.21shall include includes an annuity and an optional annuity;66.22    (27) employment as an officer of a township mutual insurance company or farmer's 66.23mutual insurance company operating pursuant to under chapter 67A;66.24    (28) employment of a corporate officer, if the officer owns 25 percent or more of the 66.25employer corporation, and employment of a member of a limited liability company, if the 66.26member owns 25 percent or more of the employer limited liability company;66.27    (29) employment as a real estate salesperson, by other than a corporate officer, if all 66.28the wages from the employment is solely by way of commission;66.29    (30) employment as a direct seller as defined in United States Code, title 26, section 66.303508;66.31    (31) employment of an individual under the age of 18 in the delivery or distribution 66.32of newspapers or shopping news, not including delivery or distribution to any point for 66.33subsequent delivery or distribution;66.34    (32) casual employment performed for an individual, other than domestic 66.35employment under clause (17), that does not promote or advance that employer's trade or 66.36business;67.1    (33) employment in "agricultural employment" unless considered "covered 67.2agricultural employment" under subdivision 11; or67.3    (34) if employment during one-half or more of any pay period was covered 67.4employment, all the employment for the pay period shall be is considered covered 67.5employment; but if during more than one-half of any pay period the employment was 67.6noncovered employment, then all of the employment for the pay period shall be is67.7considered noncovered employment. "Pay period" means a period of not more than a 67.8calendar month for which a payment or compensation is ordinarily made to the employee 67.9by the employer.67.10    Sec. 10. Minnesota Statutes 2006, section 268.035, subdivision 21a, is amended to 67.11read:67.12    Subd. 21a. Reemployment assistance training. (a) An applicant is in 67.13"reemployment assistance training" when:67.14    (1) reasonable and suitable employment for the applicant does not exist in the labor 67.15market area and it is necessary that the applicant receive training in order to obtain 67.16suitable employment;67.17    (2) the curriculum, facilities, staff, and other essentials are adequate to achieve the 67.18training objective;67.19    (3) the training is vocational in nature or short term academic training vocationally 67.20directed to an occupation or skill for which there are reasonable employment opportunities 67.21available to the applicant;67.22    (4) the training course is considered full time by the training provider; and67.23    (5) the applicant is making satisfactory progress in the training.67.24    (b) Full-time training provided through the dislocated worker program, the Trade 67.25Act of 1974, as amended, or the North American Free Trade Agreement shall be is67.26considered "reemployment assistance training," if that training course is in accordance 67.27with the requirements of that program.67.28    (c) An applicant will be is considered in reemployment assistance training only if 67.29the training course has actually started or is scheduled to start within 30 calendar days.67.30    Sec. 11. Minnesota Statutes 2006, section 268.035, subdivision 23a, is amended to read:67.31    Subd. 23a. Suitable employment. (a) Suitable employment means employment in 67.32the applicant's labor market area that is reasonably related to the applicant's qualifications. 67.33In determining whether any employment is suitable for an applicant, the degree of risk 67.34involved to the health and safety, physical fitness, prior training, experience, length 68.1of unemployment, prospects for securing employment in the applicant's customary 68.2occupation, and the distance of the employment from the applicant's residence shall be68.3is considered.68.4    (b) In determining what is suitable employment, primary consideration shall be is68.5given to the temporary or permanent nature of the applicant's separation from employment 68.6and whether the applicant has favorable prospects of finding employment in the applicant's 68.7usual or customary occupation at the applicant's past wage level within a reasonable 68.8period of time.68.9    If prospects are unfavorable, employment at lower skill or wage levels is suitable 68.10if the applicant is reasonably suited for the employment considering the applicant's 68.11education, training, work experience, and current physical and mental ability.68.12    The total compensation must be considered, including the wage rate, hours of 68.13employment, method of payment, overtime practices, bonuses, incentive payments, and 68.14fringe benefits.68.15    (c) When potential employment is at a rate of pay lower than the applicant's former 68.16rate, consideration must be given to the length of the applicant's unemployment and the 68.17proportion of difference in the rates. Employment that may not be suitable because of 68.18lower wages during the early weeks of the applicant's unemployment may become suitable 68.19as the duration of unemployment lengthens.68.20    (d) For an applicant seasonally unemployed, suitable employment includes 68.21temporary work in a lower skilled occupation that pays average gross weekly wages equal 68.22to or more than 150 percent of the applicant's weekly unemployment benefit amount.68.23    (e) If a majority of the applicant's wage credits were earned from part-time 68.24employment, part-time employment in a position with comparable skills and comparable 68.25hours that pays average gross weekly wages equal to or more than 150 percent of 68.26the applicant's weekly unemployment benefit amount shall be is considered suitable 68.27employment.68.28    (f) To determine suitability of employment in terms of shifts, the arrangement of 68.29hours in addition to the total number of hours is to be considered. Employment on a 68.30second, third, rotating, or split shift is suitable employment if it is customary in the 68.31occupation in the labor market area.68.32    (g) Employment shall is not be considered suitable if:68.33    (1) the position offered is vacant because of a labor dispute;68.34    (2) the wages, hours, or other conditions of employment are substantially less 68.35favorable than those prevailing for similar employment in the labor market area; or69.1    (3) as a condition of becoming employed, the applicant would be required to join a 69.2company union or to resign from or refrain from joining any bona fide labor organization.69.3    Sec. 12. Minnesota Statutes 2006, section 268.035, subdivision 26, is amended to read:69.4    Subd. 26. Unemployed. An applicant shall be is considered "unemployed" (1) in 69.5any week that the applicant performs less than 32 hours of service in employment, covered 69.6employment, noncovered employment, self-employment, or volunteer work; and (2) any 69.7earnings with respect to that week are less than the applicant's weekly unemployment 69.8benefit amount.69.9    Sec. 13. Minnesota Statutes 2006, section 268.035, subdivision 30, is amended to read:69.10    Subd. 30. Wages paid. (a) "Wages paid" means the amount of wages that have been 69.11actually paid or that have been credited to or set apart so that payment and disposition 69.12is under the control of the employee. Wage payments delayed beyond the regularly 69.13scheduled pay date are considered "wages paid" on the missed pay date. Back pay shall 69.14be is considered "wages paid" on the date of actual payment. Any wages earned but 69.15not paid with no scheduled date of payment shall be is considered "wages paid" on the 69.16last day of employment.69.17    (b) Wages paid shall does not include wages earned but not paid except as provided 69.18for in this subdivision.69.19    Sec. 14. Minnesota Statutes 2006, section 268.042, subdivision 3, is amended to read:69.20    Subd. 3. Election to have noncovered employment considered covered 69.21employment. (a) Any employer that has employment performed for it that is noncovered 69.22employment under section  
         268.035, subdivision 20, may file with the commissioner, by 69.23electronic transmission in a format prescribed by the commissioner, an election that all 69.24such employment, in one or more distinct establishments or places of business, shall be is69.25considered covered employment for not less than two calendar years. The commissioner 69.26shall have has discretion on the approval of any election. Upon the approval of the 69.27commissioner, sent by mail or electronic transmission, the employment shall constitute69.28constitutes covered employment beginning the calendar quarter after the date of approval 69.29or beginning a later calendar quarter if requested by the employer. The employment 69.30shall cease ceases to be considered covered employment as of the first day of January of 69.31any calendar year only if at least 30 calendar days prior to before the first day of January 69.32the employer has filed with the commissioner, by electronic transmission in a format 69.33prescribed by the commissioner, a notice to that effect. 70.1    (b) The commissioner must terminate any election agreement under this subdivision 70.2upon 30 calendar days' notice sent by mail or electronic transmission, if the employer is 70.3delinquent on any taxes due or reimbursements due the trust fund.70.4    Sec. 15. Minnesota Statutes 2006, section 268.042, subdivision 4, is amended to read:70.5    Subd. 4. Authorization. The commissioner is authorized to enter into reciprocal 70.6arrangements with other states and the federal government, or both, whereby employment 70.7by an employee or employees for a single employer that is customarily performed in more 70.8than one state shall be is considered performed entirely within any one of the states:70.9    (1) where any part of the employee's employment is performed, or70.10    (2) where the employee has a residence, or70.11    (3) where the employer maintains a place of business; provided, there is in effect, 70.12as to the employment, an election, approved by the state, pursuant to under which all 70.13the employment by the employee or employees for the employer is considered to be 70.14performed entirely within that state.70.15    Sec. 16. Minnesota Statutes 2006, section 268.0435, is amended to read:70.16268.0435 SINGLE MEMBER LIMITED LIABILITY COMPANIES.70.17    If the only member of a limited liability company is a corporation, and the limited 70.18liability company is disregarded for purposes of filing federal corporate income tax, all 70.19the workers performing services for the limited liability company must be reported on 70.20the corporation's wage detail report under section 
         268.044. A corporation that violates 70.21this section shall be is subject to the penalties under section 
         268.184, subdivision 1a. 70.22Penalties shall be are credited to the administration account to be used to ensure integrity 70.23in the unemployment insurance program.70.24    Sec. 17. Minnesota Statutes 2006, section 268.044, subdivision 1a, is amended to read:70.25    Subd. 1a. Electronic transmission of report required. Each employer must submit 70.26the quarterly wage detail report by electronic transmission in a format prescribed by the 70.27commissioner. The commissioner shall have has the discretion to accept wage detail 70.28reports that are submitted by any other means or the commissioner may return the report 70.29submitted by other than electronic transmission to the employer, and reports returned shall 70.30be are considered as not submitted and the late fees under subdivision 2 may be imposed.70.31    Sec. 18. Minnesota Statutes 2006, section 268.044, subdivision 2, is amended to read:71.1    Subd. 2. Failure to timely file report; late fees. (a) Any employer that fails to 71.2submit the quarterly wage detail report when due shall must pay a late fee of $10 per 71.3employee, computed based upon the highest of:71.4    (1) the number of employees reported on the last wage detail report submitted;71.5    (2) the number of employees reported in the corresponding quarter of the prior 71.6calendar year; or71.7    (3) if no wage detail report has ever been submitted, the number of employees 71.8listed at the time of employer registration.71.9    The late fee shall be is waived if the wage detail report is received within 30 71.10calendar days after a demand for the report is sent to the employer by mail or electronic 71.11transmission. A late fee assessed an employer may not be waived more than twice each 12 71.12months. The amount of the late fee assessed shall may not be less than $250.71.13    (b) If the wage detail report is not received in a manner and format prescribed by 71.14the commissioner within 30 calendar days after demand is sent under paragraph (a), 71.15the late fee assessed under paragraph (a) shall double doubles and a renewed demand 71.16notice and notice of the increased late fee shall will be sent to the employer by mail or 71.17electronic transmission.71.18    (c) Late fees due under this subdivision may be compromised under section 
         268.06771.19where good cause for late submission is found by the commissioner.71.20    Sec. 19. Minnesota Statutes 2006, section 268.044, subdivision 4, is amended to read:71.21    Subd. 4. Fees. The fees provided for in subdivisions 2 and 3 are in addition to 71.22interest and other penalties imposed by this chapter and shall be are collected in the same 71.23manner as delinquent taxes and shall be credited to the contingent account.71.24    Sec. 20. Minnesota Statutes 2006, section 268.045, subdivision 1, is amended to read:71.25    Subdivision 1. Account for each employer. The commissioner shall maintain 71.26(1) a tax account for each taxpaying employer and (2) a reimbursable account for each 71.27nonprofit or government employer that has elected under section 
         268.052 or 
         268.053 to 71.28be liable for reimbursements, except as provided in section 
         268.046. The commissioner 71.29shall assess the tax account for all the taxes due under section 
         268.051 and credit the tax 71.30account with all taxes paid. The commissioner shall charge the reimbursable account for 71.31any unemployment benefits determined chargeable under section 
         268.047 and shall credit 71.32the reimbursable account with the payments made.72.1    Sec. 21. Minnesota Statutes 2006, section 268.046, is amended to read:72.2268.046 TAX AND REIMBURSABLE ACCOUNTS ASSIGNED TO 72.3EMPLOYEE LEASING COMPANIES, PROFESSIONAL EMPLOYER 72.4ORGANIZATIONS, OR SIMILAR PERSON.72.5    Subdivision 1. Tax accounts assigned. (a) Any person that contracts with a 72.6taxpaying employer to have that person obtain the taxpaying employer's workforce and 72.7provide workers to the taxpaying employer for a fee shall is, as of the effective date 72.8of the contract, be assigned for the duration of the contract the taxpaying employer's 72.9account under section 
         268.045. That tax account must be maintained by the person 72.10separate and distinct from every other tax account held by the person and identified in a 72.11manner prescribed by the commissioner. The tax account shall is, for the duration of the 72.12contract, be considered that person's account for all purposes of this chapter. The workers 72.13obtained from the taxpaying employer and any other workers provided by that person to 72.14the taxpaying employer must, under section 
         268.044, be reported on the wage detail 72.15report under that tax account, and that person shall must pay any taxes due at the tax rate 72.16computed for that account under section 
         268.051, subdivision 2.72.17    (b) Any workers of the taxpaying employer who are not covered by the contract 72.18under paragraph (a) must be reported by the taxpaying employer as a separate unit on the 72.19wage detail report under the tax account assigned under paragraph (a). Taxes and any 72.20other amounts due on the wages reported by the taxpaying employer under this paragraph 72.21may be paid directly by the taxpaying employer.72.22    (c) If the taxpaying employer that contracts with a person under paragraph (a) does 72.23not have a tax account at the time of the execution of the contract, an account must be 72.24registered for the taxpaying employer under section 
         268.042 and the new employer tax 72.25rate under section 
         268.051, subdivision 5, must be assigned. The tax account shall is then 72.26be assigned to the person as provided for in paragraph (a).72.27    (d) A person that contracts with a taxpaying employer under paragraph (a) 72.28must, within 30 calendar days of the execution or termination of a contract, notify the 72.29commissioner by electronic transmission, in a format prescribed by the commissioner, 72.30of that execution or termination. The taxpaying employer's name, the account number 72.31assigned, and any other information required by the commissioner must be provided 72.32by that person.72.33    (e) Any contract subject to paragraph (a) must specifically inform the taxpaying 72.34employer of the assignment of the tax account under this section and the taxpaying 72.35employer's obligation under paragraph (b). If there is a termination of the contract, the tax 73.1account shall is, as of the date of termination, immediately be assigned to the taxpaying 73.2employer.73.3    Subd. 2. Nonprofit and government reimbursable accounts assigned. (a) Any 73.4person that contracts with a nonprofit or government employer that is a reimbursing 73.5employer to have that person obtain the nonprofit or government employer's workforce 73.6and provide workers to the nonprofit or government employer for a fee, shall is, as of the 73.7effective date of the contract, be assigned for the duration of the contract the nonprofit or 73.8government employer's account under section 
         268.045. That reimbursable account must 73.9be maintained by the person separate and distinct from every other account held by the 73.10person and identified in a manner prescribed by the commissioner. That reimbursable 73.11account shall is, for the duration of the contract, be considered that person's account for 73.12all purposes of this chapter. The workers obtained from the nonprofit or government 73.13employer and any other workers provided by that person to the nonprofit or government 73.14employer must, under section 
         268.044, be reported on the wage detail report under that 73.15reimbursable account, and that person shall must pay any reimbursements due.73.16    (b) Any workers of the nonprofit or government employer who are not covered 73.17by the contract under paragraph (a) must be reported by the nonprofit or government 73.18employer as a separate unit on the wage detail report under the reimbursable account 73.19assigned under paragraph (a). Reimbursements and any other amounts due on the wages 73.20reported by the nonprofit or government employer under this paragraph may be paid 73.21directly by the nonprofit or government employer.73.22    (c) If the nonprofit or government employer that contracts with a person under 73.23paragraph (a) does not have an account at the time of the execution of the contract, an 73.24account must be registered for the nonprofit or government employer under section 73.25268.042
         . The reimbursable account shall is then be assigned to the person as provided 73.26for in paragraph (a).73.27    (d) A person that contracts with a nonprofit or government employer under 73.28paragraph (a) must, within 30 calendar days of the execution or termination of a contract, 73.29notify the commissioner of that execution or termination by electronic transmission, in a 73.30format prescribed by the commissioner. The nonprofit or government employer's name, 73.31the account number assigned, and any other information required by the commissioner 73.32must be provided by that person.73.33    (e) Any contract subject to paragraph (a) must specifically inform the nonprofit or 73.34government employer of the assignment of the reimbursable account under this section 73.35and the nonprofit or government employer's obligation under paragraph (b). If there is a 74.1termination of the contract, the reimbursable account shall is, as of the date of termination, 74.2immediately be assigned to the nonprofit or government employer.74.3    Subd. 3. Penalties; application. (a) Any person that violates the requirements of 74.4this section and any taxpaying employer that violates subdivision 1, paragraph (b), or any 74.5nonprofit or government employer that violates subdivision 2, paragraph (b), shall be is74.6subject to the penalties under section 
         268.184, subdivision 1a. Penalties shall be are74.7credited to the administration account to be used to ensure integrity in the unemployment 74.8insurance program.74.9    (b) Section 
         268.051, subdivision 4, does not apply to contracts under this section. 74.10This section shall does not limit or prevent the application of section 
         268.051, subdivision 74.114
         , to any other transactions or acquisitions involving the taxpaying employer. This section 74.12shall does not limit or prevent the application of section 
         268.051, subdivision 4a.74.13    (c) An assignment of an account upon the execution of a contract under this section 74.14and a termination of a contract with the corresponding assignment of the account shall is74.15not be considered a separation from employment of any worker covered by the contract. 74.16Nothing under this subdivision shall cause causes the person to be liable for any amounts 74.17past due under this chapter from the taxpaying employer or the nonprofit or government 74.18employer.74.19    (d) This section applies to, but is not limited to, persons registered under section 74.2079.255
         , but does not apply to persons that obtain an exemption from registration under 74.21section 
         79.255, subdivision 9.74.22    Sec. 22. Minnesota Statutes 2006, section 268.047, subdivision 1, is amended to read:74.23    Subdivision 1. General rule. Unemployment benefits paid to an applicant, 74.24including extended, additional, and shared work benefits, shallwill be used in computing 74.25the future tax rate of a taxpaying base period employer or charged to the reimbursable 74.26account of a base period nonprofit or government employer that has elected to be liable for 74.27reimbursements except as provided in subdivisions 2 and 3. The amount of unemployment 74.28benefits used in computing the future tax rate of taxpaying employers or charged to the 74.29reimbursable account of a nonprofit or government employer that has elected to be liable 74.30for reimbursements shall beis the same percentage of the total amount of unemployment 74.31benefits paid as the percentage of wage credits from the employer is of the total amount of 74.32wage credits from all the applicant's base period employers.74.33    In making computations under this subdivision, the amount of wage credits, if not a 74.34whole dollar, shallmust be computed to the nearest whole dollar.75.1    Sec. 23. Minnesota Statutes 2006, section 268.047, subdivision 3, is amended to read:75.2    Subd. 3. Exceptions for taxpaying employers. Unemployment benefits paid shall75.3will not be used in computing the future tax rate of a taxpaying base period employer when:75.4    (1) the applicant's wage credits from that employer are less than $500;75.5    (2) the applicant quit the employment, unless it was determined under section  75.6268.095
         , to have been because of a good reason caused by the employer or because the 75.7employer notified the applicant of discharge within 30 calendar days. This exception 75.8shall applyapplies only to unemployment benefits paid for periods after the applicant's 75.9quitting the employment; or 75.10    (3) the employer discharged the applicant from employment because of employment 75.11misconduct as determined under section  
         268.095. This exception shall applyapplies 75.12only to unemployment benefits paid for periods after the applicant's discharge from 75.13employment. 75.14    Sec. 24. Minnesota Statutes 2006, section 268.051, subdivision 4a, is amended to read:75.15    Subd. 4a. Actions that avoid taxes. (a) If the commissioner determines that any 75.16action was done, in whole or in part, to avoid:75.17    (1) an experience rating history;75.18    (2) the transfer of an experience rating history; or75.19    (3) the assignment of a tax rate for new employers under subdivision 5, paragraph 75.20(a) or (b), the commissioner, to insure that the trust fund receives all the taxes that would 75.21have been received had the action not occurred, may, effective the date of the action, 75.22transfer all or part of an experience rating history and recompute the tax rate or assign the 75.23appropriate new employer tax rate.75.24    (b) This subdivision shall apply applies to any action between persons regardless 75.25of whether there is any commonality of ownership, management, or control between the 75.26persons. The authority granted to the commissioner under this subdivision is in addition to 75.27any other authority granted to the commissioner.75.28    Sec. 25. Minnesota Statutes 2006, section 268.051, subdivision 9, is amended to read:75.29    Subd. 9. Assessments, fees, and surcharges; treatment. Any assessment, fee, or 75.30surcharge imposed under the Minnesota Unemployment Insurance Law shall be is treated 75.31the same as, and considered as, a tax. Any assessment, fee, or surcharge shall be is subject 75.32to the same collection procedures that apply to past due taxes.75.33    Sec. 26. Minnesota Statutes 2006, section 268.052, subdivision 1, is amended to read:76.1    Subdivision 1. Payments. In lieu of taxes payable on a quarterly basis, the state 76.2of Minnesota or its political subdivisions shall must reimburse the trust fund the amount 76.3of unemployment benefits charged to its reimbursable account under section  
         268.047. 76.4Reimbursements in the amount of unemployment benefits charged to the reimbursable 76.5account during a calendar quarter must be received by the department on or before the last 76.6day of the month following the month that the notice of unemployment benefits paid is sent 76.7pursuant to under section  
         268.047, subdivision 5. Past due reimbursements shall be are76.8subject to the same interest charges and collection procedures that apply to past due taxes. 76.9    Sec. 27. Minnesota Statutes 2006, section 268.052, subdivision 2, is amended to read:76.10    Subd. 2. Election by state or political subdivision to be a taxpaying employer.76.11    (a) The state or political subdivision may elect to be a taxpaying employer for any calendar 76.12year if a notice of election is filed within 30 calendar days following January 1 of that 76.13calendar year. Upon election, the state or political subdivision shall must be assigned the 76.14new employer tax rate under section 
         268.051, subdivision 5, for the calendar year of the 76.15election and until it qualifies for an experience rating under section 
         268.051, subdivision 3.76.16    (b) An election shall be is for a minimum period of two calendar years following the 76.17effective date of the election and continue unless a notice terminating the election is filed 76.18not later than 30 calendar days before the beginning of the calendar year. The termination 76.19shall be is effective at the beginning of the next calendar year. Upon election, the 76.20commissioner shall establish a reimbursable account for the state or political subdivision. 76.21A termination of election shall be is allowed only if the state or political subdivision has, 76.22since the beginning of the experience rating period under section 
         268.051, subdivision 76.233
         , paid taxes equal to or more than 125 percent of the unemployment benefits used 76.24in computing the experience rating. In addition, any unemployment benefits paid after 76.25the experience rating period shall be are transferred to the new reimbursable account of 76.26the state or political subdivision. If the amount of taxes paid since the beginning of the 76.27experience rating period exceeds 125 percent of the amount of unemployment benefits 76.28paid during the experience rating period, that amount in excess shall be is applied against 76.29any unemployment benefits paid after the experience rating period.76.30    (c) The method of payments to the trust fund under subdivisions 3 and 4 shall apply76.31applies to all taxes paid by or due from the state or political subdivision that elects to be 76.32taxpaying employers under this subdivision.76.33    (d) A notice of election or a notice terminating election shall must be filed by 76.34electronic transmission in a format prescribed by the commissioner.77.1    Sec. 28. Minnesota Statutes 2006, section 268.052, subdivision 3, is amended to read:77.2    Subd. 3. Method of payment by state. To discharge its liability, the state and its 77.3wholly owned instrumentalities shall must pay the trust fund as follows:77.4    (1) Every self-sustaining department, institution and wholly owned instrumentality 77.5shall must pay the trust fund in accordance with subdivision 1. For the purposes of this 77.6clause a "self-sustaining department, institution or wholly owned instrumentality" is one 77.7where the dedicated income and revenue substantially offsets its cost of operation.77.8    (2) Every partially self-sustaining department, institution and wholly owned 77.9instrumentality shall must pay the trust fund that same proportion of the amount that has 77.10been charged to its employer account as the proportion of the total of its income and 77.11revenue is to its annual cost of operation.77.12    (3) Every department, institution or wholly owned instrumentality that is not 77.13self-sustaining shall must pay the trust fund to the extent funds are available from 77.14appropriated funds.77.15    (4) The departments, institutions and wholly owned instrumentalities, including 77.16the University of Minnesota, that have money available shall must pay the trust fund in 77.17accordance with subdivision 1. If an applicant was paid during the base period from 77.18a special account provided by law, the payment to the trust fund shall must be made 77.19from the special account with the approval of the Department of Administration and the 77.20amounts are hereby appropriated.77.21    (5) For those departments, institutions and wholly owned instrumentalities that 77.22cannot pay the trust fund, the commissioner shall certify on November 1 of each calendar 77.23year to the commissioner of finance the unpaid balances. Upon receipt of the certification, 77.24the commissioner of finance shall include the unpaid balances in the biennial budget 77.25submitted to the legislature.77.26    Sec. 29. Minnesota Statutes 2006, section 268.052, subdivision 4, is amended to read:77.27    Subd. 4. Method of payment by political subdivision. A political subdivision or 77.28instrumentality thereof is authorized and directed to pay its liabilities by money collected 77.29from taxes or other revenues. Every political subdivision authorized to levy taxes except 77.30school districts may include in its tax levy the amount necessary to pay its liabilities. 77.31School districts may levy according to section  
         126C.43, subdivision 2. If the taxes 77.32authorized to be levied cause the total amount of taxes levied to exceed any limitation 77.33upon the power of a political subdivision to levy taxes, the political subdivision may 77.34levy taxes in excess of the limitations in the amounts necessary to meet its liability. The 77.35expenditures authorized shall must not be included in computing the cost of government 78.1as defined in any home rule charter. The governing body of a municipality, for the purpose 78.2of meeting its liabilities, in the event of a deficit, may issue its obligations payable in not 78.3more than two years, in an amount that may cause its indebtedness to exceed any statutory 78.4or charter limitations, without an election, and may levy taxes in the manner provided 78.5in section  
         475.61. 78.6    Sec. 30. Minnesota Statutes 2006, section 268.052, subdivision 5, is amended to read:78.7    Subd. 5. Considered an election. If the state of Minnesota or its political 78.8subdivisions choose not to be a taxpaying employer under subdivision 2, the state or its 78.9political subdivision shall be are considered, for purposes of the Minnesota unemployment 78.10insurance program, to have elected to be liable for reimbursements under subdivision 1.78.11    Sec. 31. Minnesota Statutes 2006, section 268.0525, is amended to read:78.12268.0525 INDIAN TRIBES.78.13    (a) An Indian tribe, as defined under United States Code, title 25, section 450b(e) 78.14of the Indian Self-Determination and Education Assistance Act, and any subdivision, 78.15subsidiary, or business enterprise owned by the Indian tribe, shall must be treated the same 78.16as the state of Minnesota, or a political subdivision of the state, for all purposes of the 78.17Minnesota Unemployment Insurance Law.78.18    (b) The Indian tribe may make separate elections under section  
         268.052, subdivision 78.192
         , for itself and each subdivision, subsidiary, or business enterprise wholly owned by 78.20the Indian tribe. 78.21    (c) If an Indian tribe, subdivision, subsidiary, or business enterprise wholly owned 78.22by the tribe, which has elected to be liable for reimbursements, fails to make the required 78.23payments within 90 calendar days of the notice of delinquency, the commissioner shall 78.24terminate the election to make reimbursements as of the beginning of the next calendar 78.25year, unless all past due reimbursements, and any interest and penalties, have been paid 78.26before the beginning of the next calendar year.78.27    An Indian tribe, subdivision, subsidiary, or business enterprise wholly owned by the 78.28tribe that has its election terminated under this paragraph shall must become a taxpaying 78.29employer and assigned the new employer tax rate under section  
         268.051, subdivision 5, 78.30until the tribe, subdivision, subsidiary, or business enterprise wholly owned by the Indian 78.31tribe qualifies for an experience rating under section  
         268.051, subdivision 3. 78.32    Sec. 32. Minnesota Statutes 2006, section 268.053, subdivision 1, is amended to read:79.1    Subdivision 1. Election. (a) Any nonprofit organization that has employees in 79.2covered employment shall must pay taxes on a quarterly basis pursuant to in accordance 79.3with section 
         268.051 unless it elects to make reimbursements to the trust fund the amount 79.4of unemployment benefits charged to its reimbursable account under section 
         268.047.79.5    The organization may elect to make reimbursements for a period of not less than 79.6two calendar years beginning with the date that the organization was determined to be an 79.7employer with covered employment by filing a notice of election not later than 30 calendar 79.8days after the date of the determination.79.9    (b) Any nonprofit organization that makes an election will continue to be liable for 79.10reimbursements until it files a notice terminating its election not later than 30 calendar 79.11days before the beginning of the calendar year the termination is to be effective.79.12    (c) A nonprofit organization that has been making reimbursements that files a notice 79.13of termination of election shall must be assigned the new employer tax rate under section 79.14268.051, subdivision 5
         , for the calendar year of the termination of election and until it 79.15qualifies for an experience rating under section 
         268.051, subdivision 3.79.16    (d) Any nonprofit organization that has been paying taxes may elect to make 79.17reimbursements by filing no less than 30 calendar days before January 1 of any calendar 79.18year a notice of election. Upon election, the commissioner shall establish a reimbursable 79.19account for the nonprofit organization. An election shall be is allowed only if the nonprofit 79.20organization has, since the beginning of the experience rating period under section 79.21268.051, subdivision 3
         , paid taxes equal to or more than 125 percent of the unemployment 79.22benefits used in computing the experience rating. In addition, any unemployment benefits 79.23paid after the experience rating period shall be are transferred to the new reimbursable 79.24account of the nonprofit organization. If the amount of taxes paid since the beginning of 79.25the experience rating period exceeds 125 percent of the amount of unemployment benefits 79.26paid during the experience rating period, that amount in excess shall be is applied against 79.27any unemployment benefits paid after the experience rating period. The election shall is79.28not be terminable by the organization for that and the next calendar year.79.29    (e) The commissioner may for good cause extend the period that a notice of election, 79.30or a notice of termination, must be filed and may permit an election to be retroactive.79.31    (f) A notice of election or notice terminating election shall must be filed by electronic 79.32transmission in a format prescribed by the commissioner.79.33    Sec. 33. Minnesota Statutes 2006, section 268.053, subdivision 3, is amended to read:79.34    Subd. 3. Payments. (a) Reimbursements, in the amount of unemployment benefits 79.35charged to the reimbursable account, during a calendar quarter, must be received by the 80.1department on or before the last day of the month following the month that the notice of 80.2unemployment benefits paid is sent pursuant to under section  
         268.047, subdivision 5. 80.3    (b) Past due reimbursements shall be are subject to the same interest charges and 80.4collection procedures that apply to past due taxes.80.5    (c) If any nonprofit organization is delinquent in making reimbursements, the 80.6commissioner may terminate the organization's election to make reimbursements as of 80.7the beginning of the next calendar year, and the termination shall be is effective for that 80.8and the following calendar year. A nonprofit organization that has its election terminated 80.9under this paragraph shall must be assigned the new employer tax rate under section  80.10268.051, subdivision 5
         , until the organization qualifies for an experience rating under 80.11section  
         268.051, subdivision 3. 80.12    Sec. 34. Minnesota Statutes 2006, section 268.057, subdivision 1, is amended to read:80.13    Subdivision 1. Amount computed presumed correct. Any amount due from 80.14an employer, as computed by the commissioner, shall be is presumed to be correctly 80.15determined and assessed, and the burden shall be is upon the employer to show its 80.16incorrectness. A statement by the commissioner of the amount due shall be is admissible 80.17in evidence in any court or administrative proceeding and shall be is prima facie evidence 80.18of the facts in the statement.80.19    Sec. 35. Minnesota Statutes 2006, section 268.057, subdivision 2, is amended to read:80.20    Subd. 2. Priority of payments. (a) Any payment received from a taxpaying 80.21employer shall must be applied in the following order:80.22    (1) unemployment insurance taxes; then80.23    (2) special assessment for interest on any federal loan; then80.24    (3) workforce development fee; then80.25    (4) interest on past due taxes; then80.26    (5) penalties, late fees, administrative service fees, and costs.80.27    (b) Paragraph (a) shall be is the priority used for all payments received from a 80.28taxpaying employer, regardless of how the employer may designate the payment to be 80.29applied, except when:80.30    (1) there is an outstanding lien and the employer designates that the payment made 80.31should be applied to satisfy the lien;80.32    (2) the payment is for back pay withheld from an applicant pursuant to under section  80.33268.085, subdivision 6
         , paragraph (b); 81.1    (3) the payment is specifically designated by the employer to be applied to an 81.2outstanding overpayment of unemployment benefits of an applicant;81.3    (4) a court or administrative order directs that the payment be applied to a specific 81.4obligation;81.5    (5) a preexisting payment plan provides for the application of payment; or81.6    (6) the commissioner, under the compromise authority of section  
         268.067, agrees to 81.7apply the payment to a different priority. 81.8    Sec. 36. Minnesota Statutes 2006, section 268.057, subdivision 3, is amended to read:81.9    Subd. 3. Estimating the tax due. Only if an employer fails to make all necessary 81.10records available for an audit pursuant to under section  
         268.186, paragraph (b), and the 81.11commissioner has reason to believe the employer has not reported all the required wages 81.12on the quarterly wage detail reports under section  
         268.044, may the commissioner then 81.13estimate the amount of tax due and assess the employer the estimated amount due. 81.14    Sec. 37. Minnesota Statutes 2006, section 268.057, subdivision 4, is amended to read:81.15    Subd. 4. Costs. Any person that fails to pay any amount when due under this 81.16chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral 81.17to any public or private collection agency, or litigation costs, including attorney fees, 81.18incurred in the collection of the amounts due.81.19    If any tendered payment of any amount due, is not honored when presented to 81.20a financial institution for payment, any costs assessed the department by the financial 81.21institution and a fee of $25 shall must be assessed to the person.81.22    Costs and fees collected under this subdivision shall be are credited to the 81.23administration account to be used by the commissioner to ensure integrity in the 81.24administration of the unemployment insurance program.81.25    Sec. 38. Minnesota Statutes 2006, section 268.057, subdivision 5, is amended to read:81.26    Subd. 5. Interest on amounts past due. If any amounts due from an employer 81.27under this chapter or section  
         116L.20, except late fees under section  
         268.044, are not 81.28received on the date due the unpaid balance shall bear bears interest at the rate of one and 81.29one-half percent per month or any part thereof. Interest assessed, if not a whole dollar 81.30amount, shall be is rounded down to the next lower whole dollar. Interest collected shall be81.31is credited to the contingent account. Interest may be compromised under section  
         268.067. 81.32    Sec. 39. Minnesota Statutes 2006, section 268.057, subdivision 6, is amended to read:82.1    Subd. 6. Interest on judgments. Regardless of section  
         549.09, if judgment is 82.2entered upon any past due amounts from an employer under this chapter or section  82.3116L.20
         , the unpaid judgment shall bear bears interest at the rate specified in subdivision 82.45 until the date of payment. 82.5    Sec. 40. Minnesota Statutes 2006, section 268.057, subdivision 10, is amended to read:82.6    Subd. 10. Priorities under legal dissolutions or distributions. In the event of any 82.7distribution of an employer's assets pursuant according to an order of any court, including 82.8any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar 82.9proceeding, taxes then or thereafter due shall must be paid in full prior to before all other 82.10claims except claims for wages of not more than $1,000 per former employee, earned 82.11within six months of the commencement of the proceedings. In the event of an employer's 82.12adjudication in bankruptcy under federal law, taxes then or thereafter due shall be are82.13entitled to the priority provided in that law for taxes due any state.82.14    Sec. 41. Minnesota Statutes 2006, section 268.058, is amended to read:82.15268.058 LIEN, LEVY, SETOFF, AND CIVIL ACTION.82.16    Subdivision 1. Lien. (a) Any amount due under this chapter or section  
         116L.20, 82.17from an applicant or an employer, shall become becomes a lien upon all the property, 82.18within this state, both real and personal, of the person liable, from the date of assessment. 82.19The term "date of assessment" means the date the obligation was due. 82.20    (b) The lien is not enforceable against any purchaser, mortgagee, pledgee, holder of 82.21a Uniform Commercial Code security interest, mechanic's lien, or judgment lien creditor, 82.22until a notice of lien has been filed with the county recorder of the county where the 82.23property is situated, or in the case of personal property belonging to a nonresident person 82.24in the Office of the Secretary of State. When the notice of lien is filed with the county 82.25recorder, the fee for filing and indexing shall be is as provided in sections  
         272.483 and  82.26272.484
         . 82.27    (c) Notices of liens, lien renewals, and lien releases, in a form prescribed by the 82.28commissioner, may be filed with the county recorder or the secretary of state by mail, 82.29personal delivery, or by electronic transmission into the computerized filing system of the 82.30secretary of state. The secretary of state shall, on any notice filed with that office, transmit 82.31the notice electronically to the appropriate county recorder. The filing officer, whether the 82.32county recorder or the secretary of state, shall endorse and index a printout of the notice as 82.33if the notice had been mailed or delivered.83.1    (d) County recorders and the secretary of state shall enter information on lien 83.2notices, renewals, and releases into the central database of the secretary of state. For 83.3notices filed electronically with the county recorders, the date and time of receipt of the 83.4notice and county recorder's file number, and for notices filed electronically with the 83.5secretary of state, the secretary of state's recording information, must be entered into the 83.6central database before the close of the working day following the day of the original 83.7data entry by the commissioner.83.8    (e) The lien imposed on personal property, even though properly filed, is not 83.9enforceable against a purchaser of tangible personal property purchased at retail or 83.10personal property listed as exempt in sections  
         550.37,  
         550.38, and  
         550.39. 83.11    (f) A notice of lien filed has priority over any security interest arising under chapter 83.12336, article 9, that is perfected prior in time to the lien imposed by this subdivision, but 83.13only if:83.14    (1) the perfected security interest secures property not in existence at the time the 83.15notice of lien is filed; and83.16    (2) the property comes into existence after the 45th calendar day following the day 83.17the notice of lien is filed, or after the secured party has actual notice or knowledge of the 83.18lien filing, whichever is earlier.83.19    (g) The lien shall be is enforceable from the time the lien arises and for ten years 83.20from the date of filing the notice of lien. A notice of lien may be renewed before expiration 83.21for an additional ten years.83.22    (h) The lien shall be is enforceable by levy under subdivision 2 or by judgment lien 83.23foreclosure under chapter 550.83.24    (i) The lien may be imposed upon property defined as homestead property in chapter 83.25510 but may be enforced only upon the sale, transfer, or conveyance of the homestead 83.26property.83.27    (j) The commissioner may sell and assign to a third party the commissioner's right of 83.28redemption in specific real property for liens filed under this subdivision. The assignee 83.29shall be is limited to the same rights of redemption as the commissioner, except that in 83.30a bankruptcy proceeding, the assignee does not obtain the commissioner's priority. Any 83.31proceeds from the sale of the right of redemption shall be are credited to the contingent 83.32account.83.33    Subd. 2. Levy. (a) If any amount due under this chapter or section  
         116L.20, from 83.34an applicant or an employer, is not paid when due, the amount may be collected by the 83.35commissioner by direct levy upon all property and rights of property of the person liable 84.1for the amount due except that exempt from execution under section  
         550.37. The term 84.2"levy" includes the power of distraint and seizure by any means. 84.3    (b) In addition to a direct levy, the commissioner may issue a warrant to the sheriff 84.4of any county who shall proceed within 60 calendar days to levy upon the property or 84.5rights to property of the delinquent person within the county, except that exempt under 84.6section  
         550.37. The sheriff shall sell that property necessary to satisfy the total amount 84.7due, together with the commissioner's and sheriff's costs. The sales shall be are governed 84.8by the law applicable to sales of like property on execution of a judgment. 84.9    (c) Notice and demand for payment of the total amount due shall must be mailed 84.10to the delinquent person at least ten calendar days prior to before action being taken 84.11under paragraphs (a) and (b).84.12    (d) If the commissioner has reason to believe that collection of the amount due is in 84.13jeopardy, notice and demand for immediate payment may be made. If the total amount 84.14due is not paid, the commissioner may proceed to collect by direct levy or issue a warrant 84.15without regard to the ten calendar day period.84.16    (e) In executing the levy, the commissioner shall have all of the powers provided 84.17in chapter 550 or any other law that provides for execution against property in this state. 84.18The sale of property levied upon and the time and manner of redemption shall be is as 84.19provided in chapter 550. The seal of the court shall is not be required. The levy may be 84.20made whether or not the commissioner has commenced a legal action for collection.84.21    (f) Where any assessment has been made by the commissioner, the property seized 84.22for collection of the total amount due shall must not be sold until any determination of 84.23liability has become final. No sale shall may be made unless a portion of the amount due 84.24remains unpaid for a period of more than 30 calendar days after the determination of 84.25liability becomes final. Seized property may be sold at any time if:84.26    (1) the delinquent person consents in writing to the sale; or84.27    (2) the commissioner determines that the property is perishable or may become 84.28greatly reduced in price or value by keeping, or that the property cannot be kept without 84.29great expense.84.30    (g) Where a levy has been made to collect the amount due and the property seized 84.31is properly included in a formal proceeding commenced under sections  
         524.3-401 to  84.32524.3-505
          and maintained under full supervision of the court, the property shall may not 84.33be sold until the probate proceedings are completed or until the court orders. 84.34    (h) The property seized shall must be returned if the owner:84.35    (1) gives a surety bond equal to the appraised value of the owner's interest in the 84.36property, as determined by the commissioner, or85.1    (2) deposits with the commissioner security in a form and amount the commissioner 85.2considers necessary to insure payment of the liability.85.3    (i) If a levy or sale would irreparably injure rights in property that the court 85.4determines superior to rights of the state, the court may grant an injunction to prohibit the 85.5enforcement of the levy or to prohibit the sale.85.6    (j) Any person who fails or refuses to surrender without reasonable cause any 85.7property or rights to property subject to levy shall be is personally liable in an amount equal 85.8to the value of the property or rights not so surrendered, but not exceeding the amount due.85.9    (k) If the commissioner has seized the property of any individual, that individual 85.10may, upon giving 48 hours notice to the commissioner and to the court, bring a claim for 85.11equitable relief before the district court for the release of the property upon terms and 85.12conditions the court considers equitable.85.13    (l) Any person in control or possession of property or rights to property upon which 85.14a levy has been made who surrenders the property or rights to property, or who pays the 85.15amount due shall be is discharged from any obligation or liability to the person liable for 85.16the amount due with respect to the property or rights to property.85.17    (m) The notice of any levy may be served personally or by mail.85.18    (n) The commissioner may release the levy upon all or part of the property or rights 85.19to property levied upon if the commissioner determines that the release will facilitate the 85.20collection of the liability, but the release shall does not prevent any subsequent levy. 85.21If the commissioner determines that property has been wrongfully levied upon, the 85.22commissioner shall return:85.23    (1) the specific property levied upon, at any time; or85.24    (2) an amount of money equal to the amount of money levied upon, at any time 85.25before the expiration of nine months from the date of levy.85.26    (o) Regardless of section  
         52.12, a levy upon a person's funds on deposit in a financial 85.27institution located in this state, shall have has priority over any unexercised right of setoff 85.28of the financial institution to apply the levied funds toward the balance of an outstanding 85.29loan or loans owed by the person to the financial institution. A claim by the financial 85.30institution that it exercised its right to setoff prior to before the levy must be substantiated 85.31by evidence of the date of the setoff, and verified by an affidavit from a corporate officer 85.32of the financial institution. For purposes of determining the priority of any levy under this 85.33subdivision, the levy shall be is treated as if it were an execution under chapter 550. 85.34    Subd. 3. Right of setoff. (a) Upon certification by the commissioner to the 85.35commissioner of finance, or to any state agency that disburses its own funds, that a person, 85.36applicant, or employer has a liability under this chapter or section  
         116L.20, and that 86.1the state has purchased personal services, supplies, contract services, or property from 86.2that person, the commissioner of finance or the state agency shall set off and pay to the 86.3commissioner an amount sufficient to satisfy the unpaid liability from funds appropriated 86.4for payment of the obligation of the state otherwise due the person. No amount shall may86.5be set off from any funds exempt under section  
         550.37 or funds due an individual who 86.6receives assistance under chapter 256. 86.7    (b) All funds, whether general or dedicated, shall be are subject to setoff.86.8    Regardless of any law to the contrary, the commissioner shall have has first priority 86.9to setoff from any funds otherwise due from the department to a delinquent person.86.10    Subd. 4. Collection by civil action. (a) Any amount due under this chapter or 86.11section  
         116L.20, from an applicant or employer, may be collected by civil action in the 86.12name of the state of Minnesota. Civil actions brought under this subdivision shall must be 86.13heard as provided under section  
         16D.14. In any action, judgment shall must be entered in 86.14default for the relief demanded in the complaint without proof, together with costs and 86.15disbursements, upon the filing of an affidavit of default. 86.16    (b) Any person that is not a resident of this state and any resident person removed 86.17from this state, shall be is considered to appoint the secretary of state as its agent for the 86.18acceptance of process in any civil action. The commissioner shall file process with the 86.19secretary of state, together with a payment of a fee of $15 and that service shall be is86.20considered sufficient service and shall have has the same force and validity as if served 86.21personally within this state. Notice of the service of process, together with a copy of 86.22the process, shall must be sent by certified mail to the person's last known address. An 86.23affidavit of compliance with this subdivision, and a copy of the notice of service shall must86.24be appended to the original of the process and filed in the court.86.25    (c) No court filing fees, docketing fees, or release of judgment fees may be assessed 86.26against the state for actions pursuant to under this subdivision.86.27    Subd. 5. Injunction forbidden. No injunction or other legal action to prevent the 86.28determination, assessment, or collection of any amounts due under this chapter or section  86.29116L.20
         , from an applicant or employer, shall be are allowed. 86.30    Sec. 42. Minnesota Statutes 2006, section 268.059, is amended to read:86.31268.059 GARNISHMENT FOR DELINQUENT TAXES AND 86.32UNEMPLOYMENT BENEFIT OVERPAYMENTS.86.33    Subdivision 1. Notice. The commissioner may give notice to any employer that 86.34an employee owes any amounts due under this chapter or section  
         116L.20, and that 86.35the obligation should be withheld from the employee's wages. The commissioner may 87.1proceed only if the amount due is uncontested or if the time for any appeal has expired. 87.2The commissioner shall may not proceed until 30 calendar days after sending to the debtor 87.3employee, by mail or electronic transmission, a notice of intent to garnish wages and 87.4exemption notice. That notice shall must list: 87.5    (1) the amount due from the debtor;87.6    (2) demand for immediate payment; and87.7    (3) the intention to serve a garnishment notice on the debtor's employer.87.8    The notice shall expire expires 180 calendar days after it has been sent to the debtor 87.9provided that the notice may be renewed by sending a new notice that is in accordance 87.10with this section. The renewed notice shall have has the effect of reinstating the priority 87.11of the original notice. The exemption notice shall must be in substantially the same 87.12form as in section  
         571.72. The notice shall must inform the debtor of the right to claim 87.13exemptions contained in section  
         550.37, subdivision 14. If no claim of exemption is 87.14received by the commissioner within 30 calendar days after sending of the notice, the 87.15commissioner may proceed with the garnishment. The notice to the debtor's employer 87.16may be served by mail or electronic transmission and shall must be in substantially the 87.17same form as in section  
         571.75. 87.18    Subd. 2. Employer action. (a) Upon receipt of the garnishment notice, the 87.19employer shall must withhold from the earnings due or to become due to the employee, 87.20the amount shown on the notice plus accrued interest, subject to section  
         571.922. The 87.21employer shall must continue to withhold each pay period the amount shown on the notice 87.22plus accrued interest until the garnishment notice is released by the commissioner. Upon 87.23receipt of notice by the employer, the claim of the commissioner shall have has priority 87.24over any subsequent garnishments or wage assignments. The commissioner may arrange 87.25between the employer and employee for withholding a portion of the total amount due 87.26the employee each pay period, until the total amount shown on the notice plus accrued 87.27interest has been withheld. 87.28    The "earnings due" any employee is as defined in section  
         571.921. 87.29    (b) The maximum garnishment allowed for any one pay period shall be decreased by 87.30any amounts payable pursuant to under any other garnishment action served prior to before87.31the garnishment notice, and any amounts covered by any irrevocable and previously 87.32effective assignment of wages; the employer shall must give notice to the commissioner 87.33of the amounts and the facts relating to the assignment within ten calendar days after the 87.34service of the garnishment notice on the form provided by the commissioner.88.1    (c) Within ten calendar days after the expiration of the pay period, the employer 88.2shall must remit to the commissioner, on a form and in the manner prescribed by the 88.3commissioner, the amount withheld during each pay period.88.4    Subd. 3. Discharge or discipline prohibited. (a) If the employee ceases to be 88.5employed by the employer before the full amount set forth on the garnishment notice 88.6plus accrued interest has been withheld, the employer shall must immediately notify the 88.7commissioner in writing or by electronic transmission, as prescribed by the commissioner, 88.8of the termination date of the employee and the total amount withheld. No employer may 88.9discharge or discipline any employee because the commissioner has proceeded under this 88.10section. If an employer discharges an employee in violation of this section, the employee 88.11shall have has the same remedy as provided in section  
         571.927, subdivision 2. 88.12    (b) This section shall applyapplies if the employer is the state of Minnesota or 88.13any political subdivision.88.14    (c) The commissioner shall refund to the employee any excess amounts withheld 88.15from the employee.88.16    (d) An employer that fails or refuses to comply with this section shall be is jointly 88.17and severally liable for the total amount due from the employee. Any amount due from the 88.18employer under this paragraph may be collected in the same manner as any other amounts 88.19due from an employer under this chapter.88.20    Sec. 43. Minnesota Statutes 2006, section 268.0625, subdivision 5, is amended to read:88.21    Subd. 5. Licensing authority; duties. Upon request, the licensing authority shall88.22must provide the commissioner with a list of all licensees, including the name, address, 88.23business name and address, Social Security number, and business identification number. 88.24The commissioner may request a list of the licensees no more than once each calendar 88.25year. Regardless of section  
         268.19, the commissioner may release information necessary 88.26to accomplish this section. 88.27    Sec. 44. Minnesota Statutes 2006, section 268.064, is amended to read:88.28268.064 LIABILITY FOR DEBTS UPON ACQUISITION.88.29    Subdivision 1. Acquisition of organization, trade, business, or assets. Any person 88.30who acquires all or part of the organization, trade, business or assets from an employer, is 88.31jointly and severally liable, in an amount not to exceed the reasonable value of that part of 88.32the organization, trade, business or assets acquired, for any amounts due and unpaid by the 88.33employer. The amount of liability shall is, in addition, be a lien against the property or 89.1assets acquired and shall be prior tois before all other unrecorded liens. This section does 89.2not apply to sales in the normal course of the employer's business.89.3    Subd. 2. Reasonable value. The commissioner, upon the commissioner's own 89.4motion or upon application of the acquiring person, shall determine the reasonable value 89.5of the organization, trade, business or assets acquired based on available information. The 89.6determination shall be is final unless the acquiring person, within 30 20 calendar days 89.7after being sent the determination by mail or electronic transmission, files an appeal. 89.8Proceedings on the appeal shall be are conducted in accordance with section  
         268.105. 89.9    Subd. 3. Statement of amount due.Prior to Before the date of acquisition, the 89.10commissioner shall must furnish the acquiring person with a statement of the amounts 89.11due and unpaid under this chapter or section  
         116L.20 upon the request of the potential 89.12acquiring person and the release of the obligor. No release is required after the date of 89.13acquisition. 89.14    Sec. 45. Minnesota Statutes 2006, section 268.065, subdivision 1, is amended to read:89.15    Subdivision 1. Subcontractors. A contractor who contracts with any subcontractor 89.16shall must guarantee the payment of all amounts that are due or become due from the 89.17subcontractor with respect to taxable wages paid on the contract by:89.18    (1) withholding sufficient money on the contract; or89.19    (2) requiring the subcontractor to provide a sufficient bond guaranteeing the payment 89.20of all amounts that may become due.89.21    The contractor may make a request for verification that the subcontractor has 89.22paid the taxes due 60 calendar days after the due date for filing the wage detail report 89.23that includes the final wages paid for employment performed under the contract. If 89.24the subcontractor has paid the amounts due for the period covered by the contract, the 89.25commissioner may release the contractor from its liability.89.26    The words "contractor" and "subcontractor" include individuals, partnerships, firms, 89.27or corporations, or other association of persons engaged in the construction industry.89.28    Sec. 46. Minnesota Statutes 2006, section 268.067, is amended to read:89.29268.067 COMPROMISE.89.30    (a) The commissioner may compromise in whole or in part any action, determination, 89.31or decision that affects only an employer and not an applicant, and that has occurred 89.32during the prior 24 months. This paragraph may apply if it is determined by a court of law, 89.33or a confession of judgment, that an applicant, while employed, wrongfully took from the 89.34employer $500 or more in money or property.90.1    (b) The commissioner may at any time compromise any amount due from an 90.2employer under this chapter or section  
         116L.20. 90.3    (c) Any compromise involving an amount over $2,500 shall must be authorized by 90.4an attorney who is an employee of the department designated by the commissioner for 90.5that purpose.90.6    (d) Any compromise must be in the best interest of the state of Minnesota.90.7    Sec. 47. Minnesota Statutes 2006, section 268.0675, is amended to read:90.8268.0675 NO ELECTION OF REMEDY.90.9    Use of any remedy under this chapter for the collection of any amount due from an 90.10employer or an applicant shall does not constitute an election of remedy to the exclusion 90.11of any other available remedy.90.12    Sec. 48. Minnesota Statutes 2006, section 268.068, is amended to read:90.13268.068 NOTICE TO WORKERS.90.14    Each employer shall must post and maintain printed statements of an individual's 90.15right to apply for unemployment benefits in places readily accessible to workers in the 90.16employer's service. The printed statements shall must be supplied by the commissioner at 90.17no cost to an employer.90.18    Sec. 49. Minnesota Statutes 2006, section 268.069, subdivision 2, is amended to read:90.19    Subd. 2. Unemployment benefits paid from state funds. Unemployment benefits 90.20are paid from state funds and shall are not be considered paid from any special insurance 90.21plan, nor as paid by an employer. An application for unemployment benefits shall is90.22not be considered a claim against an employer but shall be is considered a request for 90.23unemployment benefits from the trust fund. The commissioner has the responsibility 90.24for the proper payment of unemployment benefits regardless of the level of interest 90.25or participation by an applicant or an employer in any determination or appeal. An 90.26applicant's entitlement to unemployment benefits shall must be determined based upon 90.27that information available without regard to any common law burden of proof, and 90.28any agreement between an applicant and an employer shall is not be binding on the 90.29commissioner in determining an applicant's entitlement. There shall be is no presumption 90.30of entitlement or nonentitlement to unemployment benefits.90.31    Sec. 50. Minnesota Statutes 2006, section 268.069, subdivision 3, is amended to read:91.1    Subd. 3. Common law. There shall be is no equitable or common law denial or 91.2allowance of unemployment benefits.91.3    Sec. 51. Minnesota Statutes 2006, section 268.084, is amended to read:91.4268.084 PERSONAL IDENTIFICATION NUMBER; PRESUMPTION.91.5    (a) Each applicant shall must be issued a personal identification number (PIN) for 91.6the purpose of filing continued biweekly requests for unemployment benefits, accessing 91.7information, and engaging in other transactions with the department.91.8    (b) If a PIN assigned to an applicant is used in the filing of a continued biweekly 91.9request for unemployment benefits under section  
         268.086 or any other type of transaction, 91.10the applicant shall be is presumed to have been the individual using that PIN and presumed 91.11to have received any unemployment benefit payment issued. This presumption may be 91.12rebutted by a preponderance of the evidence showing that the applicant assigned the PIN 91.13was not the individual who used that PIN in the transaction. 91.14    (c) The commissioner shall notify each applicant of this section.91.15    Sec. 52. Minnesota Statutes 2006, section 268.085, subdivision 3a, is amended to read:91.16    Subd. 3a. Workers' compensation and disability insurance offset. (a) An 91.17applicant is not eligible to receive unemployment benefits for any week in which the 91.18applicant is receiving or has received compensation for loss of wages equal to or in excess 91.19of the applicant's weekly unemployment benefit amount under:91.20    (1) the workers' compensation law of this state;91.21    (2) the workers' compensation law of any other state or similar federal law; or91.22    (3) any insurance or trust fund paid in whole or in part by an employer.91.23    (b) This subdivision shall does not apply to an applicant who has a claim pending for 91.24loss of wages under paragraph (a); however, before unemployment benefits may be paid 91.25when a claim is pending, the issue of the applicant being able to work, as required under 91.26subdivision 1, clause (2), shall be is determined under section  
         268.101, subdivision 3. If 91.27the applicant later receives compensation as a result of the pending claim, the applicant is 91.28subject to the provisions of paragraph (a) and the unemployment benefits paid shall be are91.29subject to recoupment by the commissioner to the extent that the compensation constitutes 91.30overpaid unemployment benefits. 91.31    (c) If the amount of compensation described under paragraph (a) for any week is 91.32less than the applicant's weekly unemployment benefit amount, unemployment benefits 91.33requested for that week shall be are reduced by the amount of that compensation payment.92.1    Sec. 53. Minnesota Statutes 2006, section 268.085, subdivision 4, is amended to read:92.2    Subd. 4. Social Security benefits. (a) Any applicant aged 62 or over shall be is92.3required to state when filing an application for unemployment benefits and when filing 92.4continued biweekly requests for unemployment benefits whether if the applicant is 92.5receiving, has filed for, or intends to file for, primary Social Security old age benefits for 92.6any week during the benefit year.92.7    There shall must be deducted from an applicant's weekly unemployment benefit 92.8amount 50 percent of the weekly equivalent of the primary Social Security old age benefit 92.9the applicant has received, has filed for, or intends to file for, with respect to that week.92.10    (b) An applicant who is receiving, has received, or has filed for primary Social 92.11Security disability benefits92.12for any week during the benefit year shall must be determined unable to work and 92.13unavailable for suitable employment for that week, unless:92.14    (1) the Social Security Administration approved the collecting of primary Social 92.15Security disability benefits each month the applicant was employed during the base 92.16period; or92.17    (2) the applicant provides a statement from an appropriate health care professional 92.18who is aware of the applicant's Social Security disability claim and the basis for that claim, 92.19certifying that the applicant is able to work and available for suitable employment.92.20    If an applicant meets the requirements of clause (1) or (2), then there shall must92.21be deducted from the applicant's weekly unemployment benefit amount 50 percent of 92.22the weekly equivalent of the primary Social Security disability benefits the applicant is 92.23receiving, has received, or has filed for, with respect to that week; provided, however, 92.24that if the Social Security Administration determines that an individual is not entitled to 92.25receive primary Social Security disability benefits for any week the applicant has applied 92.26for those benefits, the 50 percent deduction shall does not apply to that week.92.27    (c) Information from the Social Security Administration shall be is considered 92.28conclusive, absent specific evidence showing that the information was erroneous.92.29    (d) If the computation of the reduced unemployment benefits is not a whole dollar, it 92.30shall be is rounded down to the next lower whole dollar.92.31    (e) This subdivision does not apply to Social Security survivor benefits.92.32    Sec. 54. Minnesota Statutes 2006, section 268.085, subdivision 6, is amended to read:92.33    Subd. 6. Receipt of back pay. (a) Back pay received by an applicant with respect to 92.34any week occurring in the 104 weeks prior to before the payment of the back pay shall92.35must be deducted from unemployment benefits paid for that week.93.1    If the back pay is not paid with respect to a specific period, the back pay shall must93.2be applied to the period immediately following the last day of employment.93.3    (b) If the back pay is reduced by the amount of unemployment benefits that have 93.4been paid, the amount of back pay withheld shall must be:93.5    (1) paid by the employer to the trust fund within 30 calendar days and subject to the 93.6same collection procedures that apply to past due taxes;93.7    (2) applied to unemployment benefit overpayments resulting from the payment of 93.8the back pay; and93.9    (3) credited to the maximum amount of unemployment benefits available to the 93.10applicant in a benefit year that includes the weeks for which back pay was deducted.93.11    (c) Unemployment benefits paid the applicant shall must be removed from the 93.12computation of the tax rate for taxpaying employers and removed from the reimbursable 93.13account for nonprofit and government employers that have elected to be liable for 93.14reimbursements in the calendar quarter the trust fund receives payment.93.15    (d) Payments to the trust fund under this subdivision shall be are considered as 93.16made by the applicant.93.17    Sec. 55. Minnesota Statutes 2006, section 268.085, subdivision 7, is amended to read:93.18    Subd. 7. School employees. (a) No wage credits in any amount from any 93.19employment with any educational institution or institutions earned in any capacity may 93.20be used for unemployment benefit purposes for any week during the period between 93.21two successive academic years or terms if:93.22    (1) the applicant had employment for any educational institution or institutions in 93.23the prior academic year or term; and93.24    (2) there is a reasonable assurance that the applicant will have employment for 93.25any educational institution or institutions in the following academic year or term, unless 93.26that subsequent employment is substantially less favorable than the employment of the 93.27prior academic year or term.93.28    (b) Paragraph (a) shall does not apply to an applicant who, at the end of the prior 93.29academic year or term, had an agreement for a definite period of employment between 93.30academic years or terms in other than an instructional, research, or principal administrative 93.31capacity and the educational institution or institutions failed to provide that employment.93.32    (c) If unemployment benefits are denied to any applicant under paragraph (a) 93.33who was employed in the prior academic year or term in other than an instructional, 93.34research, or principal administrative capacity and who was not offered an opportunity to 93.35perform the employment in the following academic year or term, the applicant shall be is94.1entitled to retroactive unemployment benefits for each week during the period between 94.2academic years or terms that the applicant filed a timely continued biweekly request 94.3for unemployment benefits, but unemployment benefits were denied solely because of 94.4paragraph (a).94.5    (d) An educational assistant shall is not be considered to be in an instructional, 94.6research, or principal administrative capacity.94.7    (e) Paragraph (a) shall apply applies to any vacation period or holiday recess if the 94.8applicant was employed immediately before the vacation period or holiday recess, and 94.9there is a reasonable assurance that the applicant will be employed immediately following 94.10the vacation period or holiday recess.94.11    (f) This subdivision shall apply applies to employment with an educational service 94.12agency if the applicant performed the services at an educational institution or institutions. 94.13"Educational service agency" means a governmental agency or entity established and 94.14operated exclusively for the purpose of providing services to one or more educational 94.15institutions. This subdivision shall also apply applies to employment with Minnesota or 94.16a political subdivision, or a nonprofit organization, if the services are provided to or on 94.17behalf of an educational institution or institutions.94.18    (g) Paragraphs (a) and (e) shall apply beginning the Sunday of the week that there 94.19is a reasonable assurance of employment.94.20    (h) Employment with multiple education institutions shall must be aggregated for 94.21purposes of application of this subdivision.94.22    (i) If all of the applicant's employment with any educational institution or institutions 94.23during the prior academic year or term consisted of on-call employment, and the applicant 94.24has a reasonable assurance of any on-call employment with any educational institution 94.25or institutions for the following academic year or term, it shall is not be considered 94.26substantially less favorable employment.94.27    (j) Paragraph (a) shall also apply applies to the period between two regular but 94.28not successive terms.94.29    (k) A "reasonable assurance" may be written, oral, implied, or established by 94.30custom or practice.94.31    (l) An "educational institution" is an educational entity operated by Minnesota 94.32or a political subdivision or an instrumentality thereof, or an educational organization 94.33described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue 94.34Code, and exempt from income tax under section 501(a).94.35    Sec. 56. Minnesota Statutes 2006, section 268.085, subdivision 8, is amended to read:95.1    Subd. 8. Services for school contractors. (a) Wage credits from an employer 95.2are subject to subdivision 7, if:95.3    (1) the employment was provided pursuant to under a contract between the employer 95.4and an elementary or secondary school; and95.5    (2) the contract was for services that the elementary or secondary school could have 95.6had performed by its employees.95.7    (b) Wage credits from an employer are not subject to subdivision 7 if:95.8    (1) those wage credits were earned by an employee of a private employer performing 95.9work pursuant to under a contract between the employer and an elementary or secondary 95.10school; and95.11    (2) the employment was related to food services provided to the school by the 95.12employer.95.13    Sec. 57. Minnesota Statutes 2006, section 268.085, subdivision 11, is amended to read:95.14    Subd. 11. Athletes and coaches. Unemployment benefits shall must not be paid to 95.15an applicant on the basis of any wage credits from employment that consists of coaching 95.16or participating in sports or athletic events or training or preparing to participate for any 95.17week during the period between two successive sport seasons, or similar periods, if:95.18    (1) the applicant was so employed in the prior season or similar period, and95.19    (2) there is a reasonable assurance that the applicant will be so employed in the 95.20following season or similar period.95.21    Sec. 58. Minnesota Statutes 2006, section 268.085, subdivision 12, is amended to read:95.22    Subd. 12. Aliens. (a) An alien shall be is ineligible for unemployment benefits 95.23for any week the alien is not authorized to work in the United States under federal 95.24law. Information from the Bureau of Citizenship and Immigration Services shall be95.25is considered conclusive, absent specific evidence that the information was erroneous. 95.26Pursuant to Under the existing agreement between the United States and Canada, this 95.27paragraph shall does not apply to an applicant who is a Canadian citizen and has returned 95.28to and is living in Canada each week unemployment benefits are requested.95.29    (b) Unemployment benefits shall must not be paid on the basis of wage credits 95.30earned by an alien unless the alien (1) was lawfully admitted for permanent residence at 95.31the time of the employment, (2) was lawfully present for the purposes of the employment, 95.32or (3) was permanently residing in the United States under color of law at the time of the 95.33employment.96.1    (c) Any information required of applicants applying for unemployment benefits to 96.2determine eligibility because of their alien status shall must be required from all applicants.96.3    Sec. 59. Minnesota Statutes 2006, section 268.085, subdivision 13, is amended to read:96.4    Subd. 13. Suspension from employment. (a) An applicant who has been 96.5suspended from employment without pay for 30 calendar days or less, as a result of 96.6employment misconduct as defined under section  
         268.095, subdivision 6, shall be is96.7ineligible for unemployment benefits beginning the Sunday of the week that the applicant 96.8was suspended and continuing for the duration of the suspension. 96.9    (b) A suspension from employment without pay for more than 30 calendar days 96.10shall be is considered a discharge from employment under section  
         268.095, subdivision 5. 96.11    (c) A suspension from employment with pay, regardless of duration, shall is not be96.12considered a separation from employment and the applicant shall be is ineligible for 96.13unemployment benefits for the duration of the suspension with pay.96.14    Sec. 60. Minnesota Statutes 2006, section 268.085, subdivision 13a, is amended to 96.15read:96.16    Subd. 13a. Leave of absence. (a) An applicant on a voluntary leave of absence 96.17shall be is ineligible for unemployment benefits for the duration of the leave of absence. 96.18An applicant on an involuntary leave of absence shall is not be ineligible under this 96.19subdivision.96.20    A leave of absence is voluntary when work that the applicant can then perform is 96.21available with the applicant's employer but the applicant chooses not to work. A medical 96.22leave of absence shall is not be presumed to be voluntary.96.23    (b) A period of vacation requested by the applicant, paid or unpaid, shall be is96.24considered a voluntary leave of absence. A vacation period assigned by an employer 96.25under: (1) a uniform vacation shutdown; (2) a collective bargaining agreement; or (3) an 96.26established employer policy, shall be is considered an involuntary leave of absence.96.27    (c) A voluntary leave of absence shall is not be considered a quit and an involuntary 96.28leave of absence shall is not be considered a discharge from employment for purposes 96.29of section  
         268.095. 96.30    (d) An applicant who is on a paid leave of absence, whether the leave of absence 96.31is voluntary or involuntary, shall be is ineligible for unemployment benefits for the 96.32duration of the leave.97.1    (e) This subdivision shall apply applies to a leave of absence from a base period 97.2employer, an employer during the period between the end of the base period and the 97.3effective date of the benefit account, or an employer during the benefit year.97.4    Sec. 61. Minnesota Statutes 2006, section 268.085, subdivision 13b, is amended to 97.5read:97.6    Subd. 13b. Labor dispute. (a) An applicant who has stopped working because of a 97.7labor dispute at the establishment where the applicant is employed shall be is ineligible for 97.8unemployment benefits:97.9    (1) until the end of the calendar week that the labor dispute was in active progress if 97.10the applicant is participating in or directly interested in the labor dispute; or97.11    (2) until the end of the calendar week that the labor dispute began if the applicant is 97.12not participating in or directly interested in the labor dispute.97.13    Participation includes any failure or refusal by an applicant, voluntarily or 97.14involuntarily, to accept and perform available and customary work at the establishment.97.15    (b) An applicant who has stopped working because of a jurisdictional controversy 97.16between two or more labor organizations at the establishment where the applicant is 97.17employed shall be is ineligible for unemployment benefits until the end of the calendar 97.18week that the jurisdictional controversy was in progress.97.19    (c) An applicant shall is not be ineligible for unemployment benefits under this 97.20subdivision if:97.21    (1) the applicant stops working because of an employer's intentional failure to 97.22observe the terms of the safety and health section of a union contract or failure to comply 97.23with an official citation for a violation of federal or state laws involving occupational 97.24safety and health;97.25    (2) the applicant stops working because of a lockout; or97.26    (3) the applicant is discharged prior to before the beginning of a labor dispute.97.27    (d) A quit from employment by the applicant during the time that the labor dispute is 97.28in active progress at the establishment shall does not terminate the applicant's participation 97.29in or direct interest in the labor dispute for purposes of this subdivision.97.30    (e) For the purpose of this subdivision, the term "labor dispute" shall have has the 97.31same definition as provided in section  
         179.01, subdivision 7. 97.32    Sec. 62. Minnesota Statutes 2006, section 268.085, subdivision 16, is amended to read:97.33    Subd. 16. Actively seeking suitable employment defined. (a) "Actively seeking 97.34suitable employment" means those reasonable, diligent efforts an individual in similar 98.1circumstances would make if genuinely interested in obtaining suitable employment under 98.2the existing conditions in the labor market area. Limiting the search to positions that are 98.3not available or are above the applicant's training, experience, and qualifications is not 98.4"actively seeking suitable employment."98.5    (b) To be considered "actively seeking suitable employment" an applicant shall98.6must, when reasonable, contact those employers from whom the applicant was laid off 98.7due to because of lack of work and request suitable employment.98.8    (c) If reasonable prospects of suitable employment in the applicant's usual or 98.9customary occupation do not exist, the applicant must actively seek other suitable 98.10employment to be considered "actively seeking suitable employment." This applies to an 98.11applicant who is seasonally unemployed.98.12    (d) An applicant who is seeking employment only through a union is not actively 98.13seeking suitable employment unless the applicant is in an occupation where it is required 98.14by union rule that all the hiring in that locality is done through the union or that all 98.15members are restricted to obtaining employment among signatory contractors in the 98.16construction industry. The applicant must be a union member in good standing, registered 98.17with the union for employment, and in compliance with other union rules to be considered 98.18"actively seeking suitable employment."98.19    Sec. 63. Minnesota Statutes 2006, section 268.086, subdivision 1, is amended to read:98.20    Subdivision 1. Active benefit account. (a) A benefit account shall be is considered 98.21active only when an applicant files continued biweekly requests for unemployment 98.22benefits in the manner and within the time periods prescribed. A benefit account shall be98.23is considered inactive if an applicant stops filing a continued biweekly request or fails to 98.24file a continued biweekly request within the time period required. The benefit account 98.25shall be is considered inactive as of the Sunday following the last week or biweekly period 98.26for which a continued biweekly request has been timely filed.98.27    (b) A benefit account that is inactive shall be is reactivated the Sunday of the week 98.28that the applicant makes a contact with the department to do so, in the manner prescribed 98.29by the commissioner for reactivating that applicant's benefit account. Upon specific 98.30request of an applicant, a benefit account may be reactivated effective up to two weeks 98.31prior to before the week the applicant made contact with the department to reactivate.98.32    Sec. 64. Minnesota Statutes 2006, section 268.086, subdivision 3, is amended to read:99.1    Subd. 3. Methods for filing continued biweekly requests for unemployment 99.2benefits. (a) The commissioner shall designate to each applicant one of the following 99.3methods for filing a continued biweekly request:99.4    (1) by electronic transmission under subdivision 5;99.5    (2) by mail under subdivision 6; or99.6    (3) by in-person interview under subdivision 7.99.7    (b) The method designated by the commissioner shall be is the only method allowed 99.8for filing a continued biweekly request by that applicant. An applicant may ask that 99.9one of the other allowed methods be designated and the commissioner shall consider 99.10inconvenience to the applicant as well as administrative capacity in determining whether 99.11to allow an applicant to change the designated method for filing a continued biweekly 99.12request for unemployment benefits.99.13    Sec. 65. Minnesota Statutes 2006, section 268.086, subdivision 5, is amended to read:99.14    Subd. 5. Continued biweekly request for unemployment benefits by electronic 99.15transmission. (a) A continued biweekly request for unemployment benefits by electronic 99.16transmission shall must be filed to that electronic mail address or Internet address 99.17prescribed by the commissioner for that applicant. In order to constitute a continued 99.18biweekly request, all information asked for, including information authenticating that the 99.19applicant is sending the transmission, must be provided in the format required. If all of 99.20the information asked for is not provided, the communication shall does not constitute a 99.21continued biweekly request for unemployment benefits.99.22    The electronic transmission communication must be filed on the date required for 99.23the applicant for filing a continued biweekly request by electronic transmission.99.24    (b) If the electronic transmission continued biweekly request is not filed on the date 99.25required, a continued biweekly request by electronic transmission shall must be accepted 99.26if the applicant files the continued biweekly request by electronic transmission within 14 99.27days following the week in which the date required occurred. If the continued biweekly 99.28request by electronic transmission is not filed within 14 days following the week in which 99.29the date required occurred, the electronic continued biweekly request shall must not be 99.30accepted and the applicant shall be is ineligible for unemployment benefits for the period 99.31covered by the continued biweekly request and the benefit account shall be is considered 99.32inactive, unless the applicant shows good cause for failing to file the continued biweekly 99.33request by electronic transmission within the time period required.99.34    Sec. 66. Minnesota Statutes 2006, section 268.086, subdivision 6, is amended to read:100.1    Subd. 6. Continued biweekly request for unemployment benefits by mail. (a) A 100.2continued biweekly request for unemployment benefits by mail shall must be on a form 100.3prescribed by the commissioner. The form, in order to constitute a continued biweekly 100.4request, must be totally completed and signed by the applicant.100.5    The form must be filed on the date required for the applicant for filing a continued 100.6biweekly request by mail, in an envelope with postage prepaid thereon, and sent to the 100.7address required by the commissioner for that applicant.100.8    (b) If the mail continued biweekly request for unemployment benefits is not filed on 100.9the date required, a continued biweekly request shall must be accepted if the form is filed 100.10by mail within 14 days following the week in which the date required occurred. If the form 100.11is not filed within 14 days following the week in which the date required occurred, the 100.12form shall will not be accepted and the applicant shall be is ineligible for unemployment 100.13benefits for the period covered by the continued biweekly request for unemployment 100.14benefits and the benefit account shall be is considered inactive, unless the applicant shows 100.15good cause for failing to file the form by mail within the time period required.100.16    (c) If the applicant has been designated to file a continued biweekly request 100.17for unemployment benefits by mail, an applicant may submit the form by facsimile 100.18transmission on the day otherwise required for mailing, or within 14 days following the 100.19week in which the date required occurred. A form submitted by facsimile transmission 100.20shall must be sent only to the telephone number assigned for that purpose.100.21    (d) An applicant who has been designated to file a continued biweekly request by 100.22mail may personally deliver a continued biweekly request form only to the location to 100.23which the form was otherwise required to be mailed.100.24    Sec. 67. Minnesota Statutes 2006, section 268.086, subdivision 8, is amended to read:100.25    Subd. 8. Good cause. A continued biweekly request for unemployment benefits 100.26that is not filed within the time periods required by this section shall may be accepted only 100.27for those weeks that the applicant has "good cause" for not filing within the time periods 100.28required.100.29    Sec. 68. Minnesota Statutes 2006, section 268.086, subdivision 9, is amended to read:100.30    Subd. 9. Good cause defined. "Good cause" for purposes of this section is a 100.31compelling substantial reason that would have prevented a reasonable person acting with 100.32due diligence from filing a continued biweekly request for unemployment benefits within 100.33the time periods required.101.1    "Good cause" shall does not include forgetfulness, loss of the continued biweekly 101.2request form, having returned to work, or inability to file a continued biweekly request 101.3for unemployment benefits by the method designated if the applicant was aware of 101.4the inability and did not make diligent effort to have the method of filing a continued 101.5biweekly request changed by the commissioner. "Good cause" shall does not include 101.6having previously made an attempt to file a continued biweekly request for unemployment 101.7benefits but where the communication was not considered a continued biweekly request 101.8because the applicant failed to submit all required information.101.9    Sec. 69. Minnesota Statutes 2006, section 268.087, is amended to read:101.10268.087 UNEMPLOYMENT BENEFITS DUE DECEASED PERSONS.101.11    If unemployment benefits are due and payable at the time of an applicant's death, 101.12those benefits may must, upon application, be paid to the personal representative of the 101.13estate of the deceased. In the event that no personal representative is appointed, the 101.14unemployment benefits may must, upon application be paid in the following order: (1) the 101.15surviving spouse, (2) the surviving child or children, or (3) the surviving parent or parents.101.16    An individual seeking payment shall must complete an application prescribed by the 101.17commissioner and the payment of unemployment benefits shall discharge discharges the 101.18obligations to the applicant and no other individual shall may claim or assert any right 101.19to those unemployment benefits.101.20    Sec. 70. Minnesota Statutes 2006, section 268.095, subdivision 2, is amended to read:101.21    Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end 101.22the employment was, at the time the employment ended, the employee's.101.23    (b) An employee who has been notified that the employee will be discharged in the 101.24future, who chooses to end the employment while employment in any capacity is still 101.25available, shall be is considered to have quit the employment.101.26    (c) An employee who seeks to withdraw a previously submitted notice of quitting 101.27shall be is considered to have quit the employment if the employer does not agree that the 101.28notice may be withdrawn.101.29    (d) An applicant who, within five calendar days after completion of a suitable 101.30temporary job assignment from a staffing service employer, (1) fails without good cause to 101.31affirmatively request an additional job assignment, or (2) refuses without good cause an 101.32additional suitable job assignment offered, shall be is considered to have quit employment.101.33    This paragraph shall apply applies only if, at the time of beginning of employment 101.34with the staffing service employer, the applicant signed and was provided a copy of a 102.1separate document written in clear and concise language that informed the applicant of 102.2this paragraph and that unemployment benefits may be affected.102.3    For purposes of this paragraph, "good cause" shall be is a reason that is significant 102.4and would compel an average, reasonable worker, who would otherwise want an 102.5additional temporary job assignment with the staffing service employer, (1) to fail to 102.6contact the staffing service employer, or (2) to refuse an offered assignment.102.7    For purposes of this paragraph, a "staffing service employer" is an employer whose 102.8business involves employing individuals directly for the purpose of furnishing temporary 102.9job assignment workers to clients of the staffing service.102.10    Sec. 71. Minnesota Statutes 2006, section 268.095, subdivision 3, is amended to read:102.11    Subd. 3. Good reason caused by the employer defined. (a) A good reason caused 102.12by the employer for quitting is a reason:102.13    (1) that is directly related to the employment and for which the employer is 102.14responsible;102.15    (2) that is adverse to the worker; and102.16    (3) that would compel an average, reasonable worker to quit and become 102.17unemployed rather than remaining in the employment.102.18    (b) The analysis required in paragraph (a) must be applied to the specific facts 102.19of each case.102.20    (c) If an applicant was subjected to adverse working conditions by the employer, the 102.21applicant must complain to the employer and give the employer a reasonable opportunity 102.22to correct the adverse working conditions before that may be considered a good reason 102.23caused by the employer for quitting.102.24    (d) A reason for quitting employment shall is not be considered a good reason 102.25caused by the employer for quitting if the reason for quitting occurred because of the 102.26applicant's employment misconduct.102.27    (e) Notification of discharge in the future, including a layoff due to because of lack 102.28of work, shall is not be considered a good reason caused by the employer for quitting.102.29    (f) An applicant has a good reason caused by the employer for quitting if it results 102.30from sexual harassment of which the employer was aware, or should have been aware, 102.31and the employer failed to take timely and appropriate action. Sexual harassment means 102.32unwelcome sexual advances, requests for sexual favors, sexually motivated physical 102.33contact or other conduct or communication of a sexual nature when:102.34    (1) the applicant's submission to the conduct or communication is made a term 102.35or condition of the employment;103.1    (2) the applicant's submission to or rejection of the conduct or communication is the 103.2basis for decisions affecting employment; or103.3    (3) the conduct or communication has the purpose or effect of substantially 103.4interfering with an applicant's work performance or creating an intimidating, hostile, or 103.5offensive working environment.103.6    (g) The definition of a good reason caused by the employer for quitting employment 103.7provided by this subdivision shall be is exclusive and no other definition shall apply103.8applies.103.9    Sec. 72. Minnesota Statutes 2006, section 268.095, subdivision 5, is amended to read:103.10    Subd. 5. Discharge defined. (a) A discharge from employment occurs when any 103.11words or actions by an employer would lead a reasonable employee to believe that the 103.12employer will no longer allow the employee to work for the employer in any capacity. A 103.13layoff due to because of lack of work shall be is considered a discharge. A suspension from 103.14employment without pay of more than 30 calendar days shall be is considered a discharge.103.15    (b) An employee who gives notice of intention to quit the employment and is not 103.16allowed by the employer to work the entire notice period shall be is considered discharged 103.17from the employment as of the date the employer will no longer allow the employee to 103.18work. If the discharge occurs within 30 calendar days prior to before the intended date of 103.19quitting, then, as of the intended date of quitting, the separation from employment shall be103.20is considered a quit from employment subject to subdivision 1.103.21    Sec. 73. Minnesota Statutes 2006, section 268.095, subdivision 6a, is amended to read:103.22    Subd. 6a. Aggravated employment misconduct defined. (a) For the purpose of 103.23this section, "aggravated employment misconduct" means:103.24    (1) the commission of any act, on the job or off the job, that would amount to a gross 103.25misdemeanor or felony if the act substantially interfered with the employment or had a 103.26significant adverse effect on the employment; or103.27    (2) for an employee of a facility as defined in section  
         626.5572, aggravated 103.28employment misconduct includes an act of patient or resident abuse, financial exploitation, 103.29or recurring or serious neglect, as defined in section  
         626.5572 and applicable rules. 103.30    (b) If an applicant is convicted of a gross misdemeanor or felony for the same act for 103.31which the applicant was discharged, it is aggravated employment misconduct if the act 103.32substantially interfered with the employment or had a significant adverse effect on the 103.33employment.104.1    (c) The definition of aggravated employment misconduct provided by this 104.2subdivision shall be is exclusive and no other definition shall apply applies.104.3    Sec. 74. Minnesota Statutes 2006, section 268.095, subdivision 11, is amended to read:104.4    Subd. 11. Application. (a) Section 
         268.085, subdivision 13c, and this section shall 104.5apply applies to all covered employment, full time or part time, temporary or of limited 104.6duration, permanent or of indefinite duration, that occurred in Minnesota during the base 104.7period, the period between the end of the base period and the effective date of the benefit 104.8account, or the benefit year, except as provided for in subdivision 1, clause (5).104.9    (b) Paragraph (a) shall also apply applies to employment covered under an 104.10unemployment insurance program of any other state or established by an act of Congress.104.11    Sec. 75. Minnesota Statutes 2006, section 268.103, subdivision 1, is amended to read:104.12    Subdivision 1. In commissioner's discretion. The commissioner shall have the 104.13discretion to allow an appeal to be filed by electronic transmission. If the commissioner 104.14allows an appeal to be filed by electronic transmission, that shall must be clearly set out on 104.15the determination or decision subject to appeal.104.16    The commissioner may restrict the manner, format, and conditions under which 104.17an appeal by electronic transmission may be filed. Any restrictions as to days, hours, 104.18telephone number, electronic address, or other conditions, shall must be clearly set out on 104.19the determination or decision subject to appeal.104.20    All information requested by the commissioner when an appeal is filed by electronic 104.21transmission must be supplied or the communication shall does not constitute an appeal.104.22    Sec. 76. Minnesota Statutes 2006, section 268.103, subdivision 2, is amended to read:104.23    Subd. 2. Applicant's appeal by mail. (a) The commissioner must allow an 104.24applicant to file an appeal by mail even if an appeal by electronic transmission is allowed.104.25    (b) A written statement delivered or mailed to the department that could reasonably 104.26be interpreted to mean that an involved applicant is in disagreement with a specific 104.27determination or decision shall be is considered an appeal. No specific words need be used 104.28for the written statement to be considered an appeal.104.29    Sec. 77. Minnesota Statutes 2006, section 268.105, subdivision 3, is amended to read:104.30    Subd. 3. Withdrawal of appeal. (a) Any appeal that is pending before an 104.31unemployment law judge may be withdrawn by the appealing person, or an authorized 104.32representative of that person, upon filing of a notice of withdrawal.105.1    (b) The appeal shall must, by order, be dismissed if a notice of withdrawal is filed, 105.2unless an unemployment law judge directs that further adjudication is required for a 105.3proper result.105.4    (c) A notice of withdrawal may be filed by mail or by electronic transmission.105.5    Sec. 78. Minnesota Statutes 2006, section 268.105, subdivision 5, is amended to read:105.6    Subd. 5. Use of evidence; data privacy. (a) All testimony at any evidentiary 105.7hearing conducted pursuant tounder subdivision 1 shallmust be recorded. A copy of any 105.8recorded testimony and exhibits offered or received into evidence at the hearing shall105.9must, upon request, be furnished to a party at no cost during the time period for filing a 105.10request for reconsideration or while a request for reconsideration is pending.105.11    (b) Regardless of any provision of law to the contrary, if recorded testimony and 105.12exhibits received into evidence at the evidentiary hearing are not requested during the time 105.13period for filing a request for reconsideration, or while a request for reconsideration is 105.14pending, that testimony and other evidence shallmay later be made available only pursuant 105.15tounder a district court order. A subpoena shallis not be considered a district court order.105.16    (c) Testimony obtained under subdivision 1, may not be used or considered for any 105.17purpose, including impeachment, in any civil, administrative, or contractual proceeding, 105.18except by a local, state, or federal human rights agency with enforcement powers, unless 105.19the proceeding is initiated by the department.105.20    Sec. 79. Minnesota Statutes 2006, section 268.105, subdivision 6, is amended to read:105.21    Subd. 6. Representation; fees. (a) In any proceeding under subdivision 1 or 2, an 105.22applicant or involved employer may be represented by any agent.105.23    (b) Except for services provided by an attorney-at-law, an applicant shallmay not be 105.24charged fees, costs, or disbursements of any kind in a proceeding before an unemployment 105.25law judge, the Minnesota Court of Appeals, or the Supreme Court of Minnesota.105.26    Sec. 80. Minnesota Statutes 2006, section 268.105, subdivision 7, is amended to read:105.27    Subd. 7. Judicial review. (a) The Minnesota Court of Appeals shall, by writ of 105.28certiorari to the department, review the unemployment law judge's decision, provided a 105.29petition for the writ is filed with the court and a copy is served upon the unemployment 105.30law judge or the commissioner and any other involved party within 30 calendar days of 105.31the sending of the unemployment law judge's order under subdivision 2.105.32    (b) Any employer petitioning for a writ of certiorari shallmust pay to the court the 105.33required filing fee and upon the service of the writ shallmust furnish a cost bond to the 106.1department in accordance with the Rules of Civil Appellate Procedure. If the employer 106.2requests a written transcript of the testimony received at the evidentiary hearing conducted 106.3pursuant tounder subdivision 1, the employer shallmust pay to the department the cost of 106.4preparing the transcript. That money shall beis credited to the administration account.106.5    (c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a 106.6result of an applicant's petition, the department shallmust furnish to the applicant at no 106.7cost a written transcript of any testimony received at the evidentiary hearing conducted 106.8pursuant tounder subdivision 1, and, if requested, a copy of all exhibits entered into 106.9evidence. No filing fee or cost bond shall beis required of an applicant petitioning the 106.10Minnesota Court of Appeals for a writ of certiorari.106.11    (d) The Minnesota Court of Appeals may affirm the decision of the unemployment 106.12law judge or remand the case for further proceedings; or it may reverse or modify the 106.13decision if the substantial rights of the petitioner may have been prejudiced because the 106.14findings, inferences, conclusion, or decision are:106.15    (1) in violation of constitutional provisions;106.16    (2) in excess of the statutory authority or jurisdiction of the department;106.17    (3) made upon unlawful procedure;106.18    (4) affected by other error of law;106.19    (5) unsupported by substantial evidence in view of the entire record as submitted; or106.20    (6) arbitrary or capricious.106.21    (e) The department shall beis considered the primary responding party to any 106.22judicial action involving an unemployment law judge's decision. The department may be 106.23represented by an attorney who is an employee of the department.106.24    Sec. 81. Minnesota Statutes 2006, section 268.115, is amended to read:106.25268.115 EXTENDED UNEMPLOYMENT BENEFITS.106.26    Subdivision 1. Definitions. The terms used in this section shall have the following 106.27meaning:106.28    (1) "Extended unemployment benefit period" means a period that lasts for a 106.29minimum of 13 weeks and that:106.30    (i) Begins with the third week after there is a state "on" indicator; and106.31    (ii) Ends with the third week after there is a state "off" indicator.106.32    No extended unemployment benefit period may begin before the 14th week 106.33following the end of a prior extended unemployment benefit period.106.34    (2) There is a "state 'on' indicator" for a week if:106.35    (i) for that week and the prior 12 weeks, the rate of insured unemployment:107.1    (a) equaled or exceeded 120 percent of the average of the rates for the corresponding 107.213-week period ending in each of the prior two calendar years, and was five percent or 107.3more; or107.4    (b) equaled or exceeded six percent; or107.5    (ii) The United States Secretary of Labor determines that the average rate of 107.6seasonally adjusted total unemployment in Minnesota for the most recent three months 107.7for which data is published equals or exceeds 6.5 percent and this rate equals or exceeds 107.8110 percent of the rate of the corresponding three-month period in either of the prior 107.9two calendar years.107.10    (3) There is a "state 'off' indicator" for a week if:107.11    (i) under clause (2)(i), for that week and the prior 12 weeks, the requirements for a 107.12"state 'on' indicator" are not satisfied; or107.13    (ii) under clause (2)(ii) the requirements for a "state 'on' indicator" are not satisfied.107.14    (4) "Rate of insured unemployment," means the percentage derived by dividing 107.15the average weekly number of applicants filing continued biweekly requests for regular 107.16unemployment benefits in the most recent 13-week period by the average monthly covered 107.17employment for the first four of the last six completed calendar quarters before the end 107.18of that 13-week period.107.19    (5) "Regular unemployment benefits" means unemployment benefits available to 107.20an applicant other than extended unemployment benefits and additional unemployment 107.21benefits.107.22    (6) "Eligibility period" for an applicant means the period consisting of the weeks 107.23remaining in the applicant's benefit year within the extended unemployment benefit period 107.24and, if the benefit year ends within the extended unemployment benefit period, any weeks 107.25in the extended unemployment benefit period.107.26    (7) "Exhaustee" means an applicant who, in the eligibility period:107.27    (a) (i) the benefit year having not expired has received the maximum amount of 107.28regular unemployment benefits that were available under section  
         268.07; or107.29    (b) (ii) the benefit year having expired, has insufficient wage credits to establish a 107.30new benefit account; and 107.31    (c) has no right to any type of unemployment benefits under the law of any other state 107.32or under federal laws and is not receiving unemployment benefits under the law of Canada.107.33    Subd. 3. Requirements for extended unemployment benefits. If an extended 107.34unemployment benefit period is in effect, an applicant shall be is paid extended 107.35unemployment benefits from the trust fund for any week in the applicant's eligibility 107.36period if the applicant:108.1    (1) is an "exhaustee";108.2    (2) has satisfied the same requirements as those for regular unemployment benefits 108.3under section  
         268.069; 108.4    (3) has wage credits of not less than 40 times the weekly unemployment benefit 108.5amount; and108.6    (4) is not subject to a denial of extended unemployment benefits under subdivision 9.108.7    Subd. 4. Weekly extended unemployment benefit amount. The weekly extended 108.8unemployment benefit amount shall be is the same as the weekly unemployment benefit 108.9amount of regular unemployment benefits.108.10    Subd. 5. Maximum amount of extended unemployment benefits. The maximum 108.11amount of extended unemployment benefits available to an applicant shall be is 50 108.12percent of the maximum amount of regular unemployment benefits available in the benefit 108.13year, rounded down to the next lower whole dollar. If the total rate of unemployment 108.14computed under subdivision 1, clause (2)(ii), equaled or exceeded eight percent, the 108.15maximum amount of extended unemployment benefits available shall be is 80 percent of 108.16the maximum amount of regular unemployment benefits available in the benefit year.108.17    Subd. 6. Public announcement. Whenever an extended unemployment benefit 108.18period is to begin as a result of a state "on" indicator, or an extended unemployment 108.19benefit period is to end as a result of a state "off" indicator the commissioner shall make an 108.20appropriate public announcement.108.21    Subd. 7. Federal law. This section is enacted to conform to the requirements of 108.22United States Code, title 26, section 3304, the Federal-State Extended Unemployment 108.23Compensation Act of 1970 as amended and the applicable federal regulations.108.24    Subd. 8. Interstate applicants. An applicant residing in a state other than 108.25Minnesota shall be eligible for only the first two weeks of extended unemployment 108.26benefits if the applicant's benefit account was established pursuant to under the interstate 108.27benefit payment plan and no extended unemployment benefit period is in effect for the 108.28week in that state.108.29    Subd. 9. Denial provisions. (a) An applicant shall be is denied extended 108.30unemployment benefits for any week in the applicant's eligibility period if during that 108.31week the applicant failed to accept any offer of suitable employment, failed to apply 108.32for any suitable employment that the applicant was referred to by the commissioner, or 108.33failed to actively seek suitable employment.108.34    The denial shall continue continues until the applicant has been employed in covered 108.35employment in each of four subsequent weeks, whether or not consecutive, and had 109.1earnings from that covered employment of not less than four times the applicant's weekly 109.2unemployment benefit amount.109.3    (b) For the purpose of this subdivision "suitable employment" means any 109.4employment that is within the applicant's capabilities and that has a gross average weekly 109.5wage that exceeds the applicant's weekly unemployment benefit amount. The employment 109.6must pay wages not less than the higher of the federal minimum wage without regard to 109.7any exemption, or the applicable state minimum wage.109.8    (c) No applicant shall may be denied extended unemployment benefits for failure to 109.9accept an offer of or apply for any suitable employment if:109.10    (1) the position was not offered to the applicant in writing;109.11    (2) the position was not listed with the job service; or109.12    (3) the applicant furnishes satisfactory evidence that prospects for obtaining 109.13employment in the applicant's customary occupation within a reasonably short period 109.14are good. If the evidence is satisfactory, the determination of whether any employment 109.15is suitable shall be is made in accordance with the definition of suitable employment in 109.16section  
         268.035, subdivision 23a. 109.17    (d) For the purpose of this subdivision an applicant is "actively seeking suitable 109.18employment" only if the applicant has engaged in a systematic and sustained effort to 109.19obtain employment, and the applicant furnishes tangible evidence of that effort.109.20    Subd. 10. Job service referral. The job service shall must refer any applicant 109.21who is filing continued biweekly requests for extended unemployment benefits to any 109.22employment that is suitable under subdivision 9.109.23    Sec. 82. Minnesota Statutes 2006, section 268.125, subdivision 4, is amended to read:109.24    Subd. 4. Weekly unemployment benefit amount. An applicant's weekly 109.25additional unemployment benefit amount shall be is the same as the applicant's weekly 109.26unemployment benefit amount during the current benefit year under section  
         268.07. 109.27    Sec. 83. Minnesota Statutes 2006, section 268.125, subdivision 5, is amended to read:109.28    Subd. 5. Maximum amount of unemployment benefits. The maximum amount 109.29of additional unemployment benefits available in the applicant's benefit year shall be is109.30one-half of the applicant's maximum amount of regular unemployment benefits available 109.31under section  
         268.07, subdivision 2, rounded down to the next lower whole dollar. 109.32Extended unemployment benefits paid and unemployment benefits paid under any federal 109.33law other than regular unemployment benefits shall must be deducted from the maximum 109.34amount of additional unemployment benefits available. 110.1    Sec. 84. Minnesota Statutes 2006, section 268.135, is amended to read:110.2268.135 SHARED WORK PLAN.110.3    Subdivision 1. Definitions. For purposes of this section:110.4    (1) "Affected employee" means an employee who was continuously employed as 110.5a member of the affected group, for at least six months, on a full-time basis, prior to110.6before submission of the shared work plan.110.7    (2) "Affected group" means five or more employees designated by the employer to 110.8participate in a shared work plan.110.9    (3) "Shared work plan" or "plan" means an employer's plan, submitted in a manner 110.10and format prescribed by the commissioner, under which a group of employees whose 110.11normal weekly hours of work are reduced, in order to prevent employees from being 110.12laid off due tobecause of lack of work.110.13    (4) "Normal weekly hours of work" means the number of hours in a week that the 110.14employee normally would work for the shared work employer or 40 hours, whichever is 110.15less.110.16    Subd. 2. Participation. (a) An employer wishing to participate in the shared work 110.17benefit program shallmust submit a shared work plan to the commissioner in a manner 110.18and format prescribed for approval. The commissioner may approve a shared work plan 110.19only if it:110.20    (1) specifies the employees in the affected group;110.21    (2) applies to only one affected group;110.22    (3) includes a certified statement by the employer that each employee specified in 110.23the affected group is an affected employee;110.24    (4) includes a certified statement by the employer that for the duration of the plan 110.25the reduction in normal weekly hours of work of the employees in the affected group is 110.26instead of layoffs that otherwise would result in at least as large a reduction in the total 110.27normal weekly hours of work;110.28    (5) specifies an expiration date that is no more than one year from the date the 110.29employer submits the plan for approval;110.30    (6) specifies that fringe benefits, such as health and retirement, available to the 110.31employees in the affected group are not reduced beyond the percentage of reduction in 110.32hours of work; and110.33    (7) is approved in writing by the collective bargaining agent for each collective 110.34bargaining agreement that covers any employee in the affected group.110.35    (b) The commissioner shall set the beginning and ending dates of an approved 110.36shared work plan.111.1    (c) The commissioner shall send to the employer a determination, by mail or 111.2electronic transmission, approving or disapproving the plan within 15 calendar days of its 111.3receipt. Determinations are final.111.4    (d) Disapproval of a plan may be reconsidered at the discretion of the commissioner. 111.5Approval of a shared work plan may be revoked if the approval was based, in whole or in 111.6part, upon information that was false or misleading.111.7    Subd. 3. Eligibility. (a) Regardless of any other provision, an applicant is eligible to 111.8receive shared work benefits with respect to any week if:111.9    (1) during the week the applicant is employed as a member of an affected group in a 111.10plan that was approved prior tobefore the week and is in effect for the week; and111.11    (2) during the week the normal weekly hours of work were reduced, in accordance 111.12with the plan, at least 20 percent but not more than 40 percent, with a corresponding 111.13reduction in wages.111.14    (b) Shared work benefits shallmay not be paid to an applicant beyond one benefit 111.15year.111.16    (c) The total amount of regular unemployment benefits and shared work benefits 111.17paid to an applicant in a benefit year shall may  not exceed the maximum amount of regular 111.18unemployment benefits available.111.19    (d) An otherwise eligible applicant shall may not be denied shared work benefits 111.20because of the application of any provision relating to availability for employment, active 111.21search for employment, or refusal to apply for or accept suitable employment from other 111.22than the applicant's shared work employer.111.23    Subd. 4. Weekly benefit amount. (a) An applicant who is eligible for shared work 111.24benefits shallbe is paid an amount equal to the regular weekly unemployment benefit 111.25amount multiplied by the nearest full percentage of reduction of the applicant's regular 111.26weekly hours of work as set in the plan. The benefit payment, if not a whole dollar shall111.27must be rounded down to the next lower whole dollar.111.28    (b) The deductible earnings provisions of section  
         268.085, subdivision 5, shall111.29must not apply to earnings from the shared work employer of an applicant eligible for 111.30shared work benefits unless the resulting amount would be less than the regular weekly 111.31unemployment benefit amount the applicant would otherwise be eligible for without 111.32regard to shared work benefits. 111.33    (c) An applicant shallis not be eligible for shared work benefits for any week that 111.34employment is performed for the shared work employer in excess of the reduced hours 111.35set forth in the plan.112.1    Sec. 85. Minnesota Statutes 2006, section 268.145, subdivision 1, is amended to read:112.2    Subdivision 1. Notification. (a) Upon filing an application for unemployment 112.3benefits, the applicant shallmust be informed that:112.4    (1) unemployment benefits are subject to federal and state income tax;112.5    (2) there are requirements for filing estimated tax payments;112.6    (3) the applicant may elect to have federal income tax withheld from unemployment 112.7benefits;112.8    (4) if the applicant elects to have federal income tax withheld, the applicant may, in 112.9addition, elect to have Minnesota state income tax withheld; and112.10    (5) at any time during the benefit year the applicant may change a prior election.112.11    (b) If an applicant elects to have federal income tax withheld, the commissioner shall 112.12deduct ten percent for federal income tax, rounded down to the next lower whole dollar. If 112.13an applicant also elects to have Minnesota state income tax withheld, the commissioner 112.14shall make an additional five percent deduction for state income tax, rounded down to 112.15the next lower whole dollar. Any amounts deducted or offset pursuant tounder sections 112.16268.155
         , 
         268.18, and 
         268.184 have priority over any amounts deducted under this section. 112.17Federal income tax withholding has priority over state income tax withholding.112.18    (c) An election to have income tax withheld shallmay not be retroactive and shall112.19only applyapplies to unemployment benefits paid after the election.112.20    Sec. 86. Minnesota Statutes 2006, section 268.145, subdivision 2, is amended to read:112.21    Subd. 2. Transfer of funds. The amount of any unemployment benefits deducted 112.22under this section shall remainremains in the trust fund until transferred to the federal 112.23Internal Revenue Service, or the Department of Revenue, as an income tax payment on 112.24behalf of the applicant.112.25    Sec. 87. Minnesota Statutes 2006, section 268.145, subdivision 3, is amended to read:112.26    Subd. 3. Correction of errors. Any error that resulted in underwithholding or 112.27overwithholding under this section shallwill not be corrected retroactively.112.28    Sec. 88. Minnesota Statutes 2006, section 268.155, is amended to read:112.29268.155 CHILD SUPPORT DEDUCTED FROM UNEMPLOYMENT 112.30BENEFITS.112.31    Subdivision 1. Definitions. As used in this section:112.32    (1) "Child support obligations" means obligations that are being enforced by a child 112.33support agency pursuant to in accordance with a plan described in United States Code, 113.1title 42, section 454, of the Social Security Act that has been approved by the secretary of 113.2health and human services under part D of title IV of the Social Security Act. This shall113.3does not include any type of spousal maintenance or foster care payments; and113.4    (2) "Child support agency" means the public agency responsible for child support 113.5enforcement.113.6    Subd. 2. Notice upon application. In an application for unemployment benefits, the 113.7applicant shall must disclose if child support obligations are owed and, if so, in what state 113.8and county. If child support obligations are owed, the commissioner shall, if the applicant 113.9establishes a benefit account, notify the child support agency.113.10    Subd. 3. Withholding of unemployment benefits. The commissioner shall deduct 113.11and withhold from any unemployment benefits payable to an applicant who owes child 113.12support obligations:113.13    (1) the amount required pursuant to under a proper order of a court or administrative 113.14agency; or113.15    (2) if clause (1) is not applicable, the amount determined pursuant to under an 113.16agreement under United States Code, title 42, section 454 (20) (B) (i), of the Social 113.17Security Act; or113.18    (3) if clause (1) or (2) is not applicable, the amount specified by the applicant.113.19    Subd. 4. Payment. Any amount deducted and withheld shall must be paid to the 113.20child support agency, but shall will for all purposes be treated as if it were paid to the 113.21applicant as unemployment benefits and paid by the applicant to the child support agency 113.22in satisfaction of the applicant's child support obligations.113.23    Subd. 5. Payment of costs. The child support agency shall must pay the costs 113.24incurred by the commissioner in the implementation and administration of this section and 113.25sections 
         518A.50 and 
         518A.53. 113.26    Sec. 89. Minnesota Statutes 2006, section 268.18, subdivision 5, is amended to read:113.27    Subd. 5. Remedies. (a) Any method undertaken to recover an overpayment of 113.28unemployment benefits, including any penalties and interest, shall is not be considered an 113.29election of a method of recovery.113.30    (b) Intervention or lack thereof, in whole or in part, in a workers' compensation 113.31matter under section  
         176.361shall is not be considered an election of a remedy and shall113.32does not prevent the commissioner from determining any unemployment benefits overpaid 113.33under subdivision 1 or 2 or taking action under section  
         268.182. 113.34    Sec. 90. Minnesota Statutes 2006, section 268.18, subdivision 6, is amended to read:114.1    Subd. 6. Collection of overpayments. (a) The commissioner may not compromise 114.2the amount that has been determined overpaid under this section including penalties 114.3and interest.114.4    (b) The commissioner shall havehas discretion regarding the recovery of any 114.5overpayment under subdivision 1. Regardless of any law to the contrary, the commissioner 114.6shallis not be required to refer any amount determined overpaid under subdivision 1 to a 114.7public or private collection agency, including agencies of this state.114.8    (c) Amounts determined overpaid under subdivision 1 shallare not be considered 114.9a "debt" to the state of Minnesota for purposes of any reporting requirements to the 114.10commissioner of finance.114.11    (d) A pending appeal under section  
         268.105shalldoes not suspend the assessment 114.12of interest, penalties, or collection of an overpayment under this section. 114.13    (e) Section  
         16A.626 applies to the repayment by an applicant of any overpayment, 114.14penalty, or interest under this section. 114.15    Sec. 91. Minnesota Statutes 2006, section 268.182, subdivision 1, is amended to read:114.16    Subdivision 1. Criminal penalties. Whoever obtains, or attempts to obtain, or 114.17aids or abets any individual to obtain by means of an intentional false statement or 114.18representation, by intentional concealment of a material fact, or by impersonation or 114.19other fraudulent means, unemployment benefits that the individual is not entitled or 114.20unemployment benefits greater than the individual is entitled under this chapter, or under 114.21the law of any state or of the federal government, either personally or for any other 114.22individual, is guilty of theft and shallmust be sentenced pursuant tounder section  
         609.52. 114.23    Sec. 92. Minnesota Statutes 2006, section 268.186, is amended to read:114.24268.186 RECORDS; AUDITS.114.25    (a) Each employer shallmust keep true and accurate records for the periods of time 114.26and containing the information the commissioner may require by rule. For the purpose of 114.27administering this chapter, the commissioner has the power to audit, examine, or cause to 114.28be supplied or copied, any books, correspondence, papers, records, or memoranda that 114.29are relevant, whether the books, correspondence, papers, records, or memoranda are the 114.30property of or in the possession of the employer or any other person at any reasonable 114.31time and as often as may be necessary.114.32    (b) Any employer that refuses to allow an audit of its records by the department, 114.33or that fails to make all necessary records available for audit in Minnesota upon request 114.34of the commissioner, may be assessed an administrative penalty of $500. The penalty 115.1collected shall beis credited to the administration account to be used by the commissioner 115.2to ensure integrity in the administration of the unemployment insurance program.115.3    (c) The commissioner may make summaries, compilations, photographs, 115.4duplications, or reproductions of any records, or reports that the commissioner considers 115.5advisable for the preservation of the information contained therein. Any summaries, 115.6compilations, photographs, duplications, or reproductions shall beis admissible in 115.7any proceeding under this chapter. The commissioner may duplicate records, reports, 115.8summaries, compilations, instructions, determinations, or any other written or recorded 115.9matter pertaining to the administration of this chapter.115.10    (d) Regardless of any law to the contrary, the commissioner may provide for the 115.11destruction of any records, reports, or reproductions thereof, or other papers that are no 115.12longer necessary for the administration of this chapter, including any required audit. In 115.13addition, the commissioner may provide for the destruction or disposition of any record, 115.14report, or other paper from which the information has been electronically captured and 115.15stored, or that has been photographed, duplicated, or reproduced.115.16    Sec. 93. Minnesota Statutes 2006, section 268.19, subdivision 1a, is amended to read:115.17    Subd. 1a. Wage detail data. (a) Wage and employment data gathered pursuant 115.18to under section  
         268.044 may be disseminated to and used, without the consent of the 115.19subject of the data, by an agency of another state that is designated as the performance 115.20accountability and consumer information agency for that state pursuant to under Code of 115.21Federal Regulations, volume 20, part 663.510(c), in order to carry out the requirements 115.22of the Workforce Investment Act of 1998, United States Code, title 29, sections 2842 115.23and 2871. 115.24    (b) The commissioner may enter into a data exchange agreement with an employment 115.25and training service provider under section  
         116L.17, or the Workforce Investment Act 115.26of 1998, United States Code, title 29, section 2864, under which the commissioner, with 115.27the consent of the subject of the data, may furnish data on the quarterly wages paid and 115.28number of hours worked on those individuals who have received employment and training 115.29services from the provider. With the initial consent of the subject of the data, this data may 115.30be shared for up to three years after termination of the employment and training services 115.31provided to the individual without execution of an additional consent. This data shall be115.32is furnished solely for the purpose of evaluating the employment and training services 115.33provided. The data subject's ability to receive service is not affected by a refusal to give 115.34consent under this paragraph. The consent form must state this fact. 116.1    Sec. 94. Minnesota Statutes 2006, section 268.19, subdivision 2, is amended to read:116.2    Subd. 2. Employer information; absolute privilege. (a) Regardless of any 116.3provision of law to the contrary, an employer may provide the commissioner with 116.4information on an applicant so that the commissioner can determine an applicant's 116.5entitlement to unemployment benefits under the Minnesota Unemployment Insurance Law.116.6    (b) The commissioner may disseminate an employer's name and address and the 116.7name and address of any employer's unemployment insurance processing agent in order to 116.8administer the Minnesota unemployment insurance program.116.9    (c) Information obtained pursuant to under the Minnesota Unemployment Insurance 116.10Law, in order to determine an applicant's entitlement to unemployment benefits, shall be116.11are absolutely privileged and shall may not be made the subject matter or the basis for any 116.12civil proceeding, administrative, or judicial.116.13    Sec. 95. Minnesota Statutes 2006, section 268.192, is amended to read:116.14268.192 PROTECTION OF RIGHTS.116.15    Subdivision 1. Waiver of rights void. Any agreement by an individual to waive, 116.16release, or commute rights to unemployment benefits or any other rights under the 116.17Minnesota Unemployment Insurance Law shall be is void. Any agreement by an employee 116.18to pay all or any portion of an employer's taxes, shall be is void. No employer shall may116.19directly or indirectly make or require or accept any deduction from wages to pay the 116.20employer's taxes, require or accept any waiver of any right or in any manner obstruct or 116.21impede an application or continued biweekly request for unemployment benefits. Any 116.22employer or officer or agent of any employer who violates any portion of this subdivision 116.23shall is, for each offense, be guilty of a misdemeanor.116.24    Subd. 2. No assignment of unemployment benefits; exemptions. Any assignment, 116.25pledge, or encumbrance of unemployment benefits shall be is void. Unemployment 116.26benefits shall be are exempt from levy, execution, attachment, or any other remedy 116.27provided for the collection of debt. Any waiver of this subdivision shall be is void.116.28    Sec. 96. Minnesota Statutes 2006, section 268.194, subdivision 4, is amended to read:116.29    Subd. 4. Reimbursements. The commissioner is authorized to make to other state 116.30or federal agencies and to receive from other state or federal agencies, reimbursements 116.31from or to the trust fund, in accordance with reciprocal arrangements entered into pursuant 116.32tounder section  
         268.131. 116.33    Money received pursuant tounder a reciprocal agreement shallmust be placed 116.34directly in the unemployment benefit payment account of the trust fund.117.1    Sec. 97. Minnesota Statutes 2006, section 268.194, subdivision 5, is amended to read:117.2    Subd. 5. Reed Act money. (a) Money credited to the account of Minnesota in the 117.3federal unemployment trust fund pursuant tounder United States Code, title 42, section 117.41103, of the Social Security Act, also known as the Reed Act, may be requisitioned and 117.5used for (1) the payment of unemployment benefits, or (2) expenses incurred for the 117.6administration of the Minnesota unemployment insurance program pursuantaccording 117.7to a specific appropriation by the legislature. Any money used for the payment of 117.8unemployment benefits may be restored for appropriation and use for administrative 117.9expenses upon request of the governor to the United States Secretary of Labor.117.10    (b) Reed Act money may be used for expenses in the administration of the Minnesota 117.11unemployment insurance program provided that the expenses are incurred and the money 117.12is requisitioned after the enactment of an appropriation law that:117.13    (1) specifies the amounts and the purposes for which the money is appropriated;117.14    (2) limits the period within which the money may be obligated to a period ending 117.15not more than two years after the date of the enactment of the appropriation law; and117.16    (3) limits the amount that may be obligated to an amount that does not exceed the 117.17amount by which the aggregate of the amounts transferred to the account of Minnesota 117.18pursuant tounder the Reed Act exceeds the aggregate of the amounts used pursuant to117.19under this subdivision and charged against the amounts transferred to the account of 117.20Minnesota. For the purposes of this subdivision, amounts used for administration shall be117.21are chargeable against the transferred amounts at the time of the obligation.117.22    (c) Reed Act money requisitioned for the payment of expenses of administration 117.23shall remain a part of the unemployment insurance trust fund. The commissioner shall 117.24account for the use of this money in accordance with the standards established by the 117.25United States Secretary of Labor. If any money is not spent for the purpose for which it 117.26was appropriated, or, if it remains unspent at the end of the period specified by the law 117.27appropriating the money, it shallmust be returned for credit to Minnesota's account in the 117.28federal unemployment trust fund.117.29    Sec. 98. Minnesota Statutes 2006, section 268.194, subdivision 6, is amended to read:117.30    Subd. 6. Borrowing federal funds. (a) The governor is hereby authorized, if 117.31necessary, to borrow funds from the federal unemployment trust fund in accordance 117.32with United States Code, title 42, section 1321 of the Social Security Act in order to pay 117.33unemployment benefits.118.1    (b) Any amount transferred to the trust fund under the terms of any loan shallmust 118.2be repayable as provided in United States Code, title 42, sections 1101(d)(1), 1103(b)(2), 118.3and 1322 of the Social Security Act.118.4    (c) Interest payable on any loan shall beis paid in accordance with section  
         268.051, 118.5subdivision 8
         , paragraph (b). 118.6    Sec. 99. Minnesota Statutes 2006, section 268.20, is amended to read:118.7268.20 REPRESENTATION IN COURT.118.8    In any civil action to enforce the provisions of the Minnesota Unemployment 118.9Insurance Law, the commissioner shall may be represented by the attorney general.118.10    Sec. 100. Minnesota Statutes 2006, section 268.21, is amended to read:118.11268.21 NONLIABILITY OF STATE.118.12    (a) Unemployment benefits shall be are payable only to the extent provided in this 118.13chapter and to the extent that money is available in the trust fund and neither the state nor 118.14the commissioner shall be is liable for any amount in excess of the money available in 118.15the trust fund.118.16    (b) No person shall may make any demand, bring any suit, or other proceeding to 118.17recover from the state or the commissioner any sum alleged to be due on a benefit account 118.18after the expiration of two years from the effective date of the benefit account.118.19    Sec. 101. Minnesota Statutes 2006, section 268.22, is amended to read:118.20268.22 SAVING CLAUSE.118.21    The legislature reserves the right to amend or repeal all or any part of the Minnesota 118.22Unemployment Insurance Law at any time; and there shall be is no vested private right 118.23of any kind against such amendment or repeal. All the rights, privileges, or immunities 118.24conferred thereby, or by acts done pursuant thereto, shall exist subject to the power of the 118.25legislature to amend or repeal these sections at any time.118.26    Sec. 102. Minnesota Statutes 2006, section 268.23, is amended to read:118.27268.23 SEVERABLE.118.28    In the event that the United States Department of Labor determines that any 118.29provision of the Minnesota Unemployment Insurance Law, or any other provision of 118.30Minnesota Statutes relating to the unemployment insurance program, is not in conformity 118.31with the requirements of federal law, the provision shall have has no force or effect; but if 119.1only a portion of the provision, or the application to any person or circumstances, is held 119.2not in conformity, the remainder of the provision and the application of the provision to 119.3other persons or circumstances shall are not be affected.119.4    Sec. 103. EFFECTIVE DATE.119.5    Sections 1 to 102 are effective September 30, 2007.119.6ARTICLE 7119.7EXTRA BENEFITS119.8    Section 1. LUMBER COMPANY EXTRA BENEFITS.119.9    Subdivision 1.Extra benefits; availability.Extra unemployment benefits are 119.10available to an applicant if the applicant was laid off due to lack of work after April 1, 119.112006, from the Ainsworth Lumber Company plants in Bemidji, Cook, and Grand Rapids, 119.12and established a benefit account under Minnesota Statutes, section 268.07, prior to March 119.131, 2007.119.14    Subd. 2.Payment from fund; effect on employer.Extra unemployment benefits 119.15are payable from the unemployment insurance trust fund. Extra unemployment benefits 119.16paid under this section will not be used in computing the experience rating of Ainsworth 119.17Lumber Company under Minnesota Statutes, section 268.047.119.18    Subd. 3.Eligibility conditions.An applicant is eligible to receive extra 119.19unemployment benefits under this section for any week through December 31, 2007, 119.20following the effective date of the applicant's benefit account of regular unemployment 119.21benefits, as a result of a layoff described under subdivision 1, if:119.22    (1) a majority of the applicant's wage credits were with Ainsworth Lumber Company 119.23or Ainsworth Engineered;119.24    (2) the applicant meets the eligibility requirements of Minnesota Statutes, section 119.25268.085;119.26    (3) the applicant is not subject to a disqualification under Minnesota Statutes, section 119.27268.095;119.28    (4) the applicant is not entitled to regular unemployment benefits and the applicant 119.29is not entitled to receive unemployment benefits under any other state or federal law 119.30for that week; and119.31    (5) the applicant is enrolled in, or has within the last two weeks successfully 119.32completed, a program that qualifies as reemployment assistance training under Minnesota 119.33Statutes, section 268.035, subdivision 21a, except that an applicant whose training is 119.34scheduled to begin in more than 30 days may be considered to be in training if:  (i) the 120.1applicant's chosen training program does not offer an available start date within 30 days; 120.2(ii) the applicant is scheduled to begin training on the earliest available start date for 120.3the chosen training program; and (iii) the applicant is scheduled to begin training in no 120.4more than 60 days.120.5    Subd. 4.Weekly amount of extra benefits.The weekly extra unemployment 120.6benefits amount available to an applicant is the same as the applicant's weekly regular 120.7unemployment benefit amount on the benefit account established as a result of a layoff 120.8under subdivision 1.120.9    Subd. 5.Maximum amount of extra unemployment benefits.(a) The maximum 120.10amount of extra unemployment benefits available is equal to 13 weeks at the applicant's 120.11weekly extra unemployment benefits amount.120.12    (b) If an applicant qualifies for a new regular benefit account under Minnesota 120.13Statutes, section 268.07, at any time after exhausting regular unemployment benefits 120.14as a result of the layoff under subdivision 1, the applicant must apply for and exhaust 120.15entitlement to those new regular unemployment benefits. The maximum amount of extra 120.16unemployment benefits available is reduced by any new regular unemployment benefits 120.17available if the majority of wage credits on that new regular benefit account were with 120.18Ainsworth Lumber Company or Ainsworth Engineered.120.19    Subd. 6.Program expiration.This extra unemployment benefit program expires 120.20on December 31, 2007. No extra unemployment benefits may be paid for any week after 120.21the expiration of this program.120.22    Subd. 7.Findings.The legislature finds that providing extra unemployment 120.23benefits to assist laid-off workers of Ainsworth Lumber Company, while in training, is 120.24appropriate because:120.25    (1) the unemployment rate in the applicant's county of employment is higher than 120.26the statewide average rate of unemployment;120.27    (2) the average weekly wages paid in the applicant's county of employment is below 120.28the statewide average weekly wage;120.29    (3) the applicant's weekly wage is higher than the statewide average weekly wage; 120.30and120.31    (4) the dislocated worker program has determined that the applicant does not 120.32currently possess skills making reemployment in a comparable position likely.120.33    Sec. 2. EFFECTIVE DATE.120.34    Section 1 is effective the first Sunday following final enactment.121.1ARTICLE 8121.2EXTRA BENEFITS121.3    Section 1. ELIGIBILITY EXCEPTION; EXTRA BENEFITS.121.4    Subdivision 1.Conditions.Notwithstanding the requirements of Minnesota 121.5Statutes, section 268.07 or 268.086, the commissioner of employment and economic 121.6development shall pay unemployment benefits under subdivision 2 to an applicant who:121.7    (1) was employed as a technician or inspector for Northwest Airlines, Inc. prior 121.8to August 20, 2005;121.9    (2) stopped working on or about August 20, 2005, due to a labor dispute between the 121.10Aircraft Mechanics Fraternal Association (AMFA) and Northwest Airlines, Inc.;121.11    (3) established or was eligible to establish an unemployment benefit account with 121.12the Department of Employment and Economic Development as a result of the labor 121.13dispute; and121.14    (4) meets all the ongoing eligibility requirements of Minnesota Statutes, section 121.15268.085, exclusive of the requirements to file an application for benefits and timely file 121.16continued biweekly requests for benefits under Minnesota Statutes, section 268.086.121.17    Subd. 2.Benefits.If an applicant meets the requirements of subdivision 1, the 121.18commissioner shall pay the applicant benefits for any periods of unemployment during the 121.19applicant's benefit year after August 20, 2005, in the same amount as if the applicant had 121.20filed an application for benefits and had continued to file biweekly requests for benefits as 121.21required by law. If an applicant has not yet filed an application for benefits, the applicant 121.22shall submit an application prior to receiving benefits under this subdivision.121.23    Subd. 3.Extra benefits.(a) Extra unemployment benefits are available to an 121.24applicant described under subdivision 1 if the applicant has exhausted regular benefits 121.25paid under subdivision 2.121.26    (b) The maximum amount of extra unemployment benefits available is 26 times the 121.27applicant's weekly extra unemployment benefits amount. The weekly extra unemployment 121.28benefits amount available to an applicant is the same as the applicant's weekly regular 121.29unemployment benefit amount on the benefit account established as a result of the labor 121.30dispute under subdivision 1.121.31    (c) An applicant is eligible to receive extra unemployment benefits under this 121.32subdivision for any week prior to December 31, 2007.121.33    (d) If an applicant qualifies for a new regular benefit account at any time after 121.34exhausting regular unemployment benefits as a result of the labor dispute described in 122.1subdivision 1, the applicant must apply for and exhaust entitlement to those new regular 122.2unemployment benefits.122.3    Subd. 4.Payment from fund; effect on employer. Extra unemployment benefits 122.4authorized by this section are payable from the unemployment insurance trust fund. Extra 122.5benefits paid under this section must not be used in computing the experience rating of 122.6Northwest Airlines, Inc. under Minnesota Statutes, section 268.047.122.7EFFECTIVE DATE.This section is effective the day following final enactment 122.8and applies retroactively from August 20, 2005.