<a id="pl.1.3"></a><var>1.3</var>workforce development provisions;amending Minnesota Statutes 2010, sections <br/>
<a id="pl.1.4"></a><var>1.4</var>116L.17, subdivision 1; 116L.561, subdivision 7; 268.035, subdivisions 4, 19a, <br/>
<a id="pl.1.5"></a><var>1.5</var>20, 23, 23a, 29, 32; 268.051, subdivisions 5, 6, 8; 268.057, subdivision 2; 268.07, <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivisions 2, 3b; 268.085, subdivision 3; 268.095, subdivision 10; 268.115, <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivision 1; 268.184, subdivisions 1, 1a; Laws 2009, chapter 78, article 3, <br/>
<a id="pl.1.8"></a><var>1.8</var>section 16.<br/>
<a id="pl.1.9"></a><var>1.9</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.12"></a><var>1.12</var>    Section 1. Minnesota Statutes 2010, section 268.035, subdivision 19a, is amended to <br/>
<a id="pl.1.13"></a><var>1.13</var>read:<br/>
<a id="pl.1.14"></a><var>1.14</var>    Subd. 19a. <b>Immediate family member.</b> "Immediate family member" means <br/>
<a id="pl.1.15"></a><var>1.15</var>an individual's spouse, parent, stepparent, grandparent, son or daughter, stepson or <br/>
<a id="pl.1.16"></a><var>1.16</var>stepdaughter, or grandson or granddaughter.<br/>
<a id="pl.1.17"></a><var>1.17</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2011, and applies to <br/>
<a id="pl.1.18"></a><var>1.18</var>determinations and appeal decisions issued on or after that date.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.1.19"></a><var>1.19</var>    Sec. 2. Minnesota Statutes 2010, section 268.035, subdivision 23, is amended to read:<br/>
<a id="pl.1.20"></a><var>1.20</var>    Subd. 23. <b>State's average annual and average weekly wage.</b> (a) On or before <br/>
<a id="pl.1.21"></a><var>1.21</var>June 30 of each year, the commissioner shall calculate the state's average annual wage and <br/>
<a id="pl.1.22"></a><var>1.22</var>the state's average weekly wage in the following manner:<br/>
<a id="pl.2.1"></a><var>2.1</var>    (1) The sum of the total monthly covered employment reported by all employers <br/>
<a id="pl.2.2"></a><var>2.2</var>for the prior calendar year is divided by 12 to calculate the average monthly covered <br/>
<a id="pl.2.3"></a><var>2.3</var>employment.<br/>
<a id="pl.2.4"></a><var>2.4</var>    (2) The sum of the total wages paid for all covered employment reported by <br/>
<a id="pl.2.5"></a><var>2.5</var>all employers for the prior calendar year is divided by the average monthly covered <br/>
<a id="pl.2.6"></a><var>2.6</var>employment to calculate the state's average annual wage.<br/>
<a id="pl.2.7"></a><var>2.7</var>    (3) The state's average annual wage is divided by 52 to calculate the state's average <br/>
<a id="pl.2.8"></a><var>2.8</var>weekly wage.<br/>
<a id="pl.2.9"></a><var>2.9</var>    (b) For purposes of calculating the amount of taxable wages, the state's average <br/>
<a id="pl.2.10"></a><var>2.10</var>annual wage applies to the calendar year following the calculation.<br/>
<a id="pl.2.11"></a><var>2.11</var>    (c) For purposes of calculating (1) the state's maximum weekly unemployment <br/>
<a id="pl.2.12"></a><var>2.12</var>benefit amount available on any benefit account under section 
         <statute_ref>268.07, subdivision 2a</statute_ref>, <br/>
<a id="pl.2.13"></a><var>2.13</var>and (2) the wage credits necessary to establish a benefit account under section 
<statute_ref>268.07, <br/>
<a id="pl.2.14"></a><var>2.14</var>subdivision 2
         </statute_ref>, the state's average weekly wage applies to the one-year period beginning <br/>
<a id="pl.2.15"></a><var>2.15</var>the last Sunday in October of the calendar year of the calculation.<br/>
<a id="pl.2.16"></a><var>2.16</var><b>EFFECTIVE DATE.</b>This section is effective October 28, 2012.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.2.17"></a><var>2.17</var>    Sec. 3. Minnesota Statutes 2010, section 268.035, subdivision 23a, is amended to read:<br/>
<a id="pl.2.18"></a><var>2.18</var>    Subd. 23a. <b>Suitable employment.</b> (a) Suitable employment means employment in <br/>
<a id="pl.2.19"></a><var>2.19</var>the applicant's labor market area that is reasonably related to the applicant's qualifications. <br/>
<a id="pl.2.20"></a><var>2.20</var>In determining whether any employment is suitable for an applicant, the degree of risk <br/>
<a id="pl.2.21"></a><var>2.21</var>involved to the health and safety, physical fitness, prior training, experience, length <br/>
<a id="pl.2.22"></a><var>2.22</var>of unemployment, prospects for securing employment in the applicant's customary <br/>
<a id="pl.2.23"></a><var>2.23</var>occupation, and the distance of the employment from the applicant's residence is <br/>
<a id="pl.2.24"></a><var>2.24</var>considered.<br/>
<a id="pl.2.25"></a><var>2.25</var>    (b) In determining what is suitable employment, primary consideration is given to the <br/>
<a id="pl.2.26"></a><var>2.26</var>temporary or permanent nature of the applicant's separation from employment and whether <br/>
<a id="pl.2.27"></a><var>2.27</var>the applicant has favorable prospects of finding employment in the applicant's usual or <br/>
<a id="pl.2.28"></a><var>2.28</var>customary occupation at the applicant's past wage level within a reasonable period of time.<br/>
<a id="pl.2.29"></a><var>2.29</var>    If prospects are unfavorable, employment at lower skill or wage levels is suitable <br/>
<a id="pl.2.30"></a><var>2.30</var>if the applicant is reasonably suited for the employment considering the applicant's <br/>
<a id="pl.2.31"></a><var>2.31</var>education, training, work experience, and current physical and mental ability.<br/>
<a id="pl.2.32"></a><var>2.32</var>    The total compensation must be considered, including the wage rate, hours of <br/>
<a id="pl.2.33"></a><var>2.33</var>employment, method of payment, overtime practices, bonuses, incentive payments, and <br/>
<a id="pl.2.34"></a><var>2.34</var>fringe benefits.<br/>
<a id="pl.3.1"></a><var>3.1</var>    (c) When potential employment is at a rate of pay lower than the applicant's former <br/>
<a id="pl.3.2"></a><var>3.2</var>rate, consideration must be given to the length of the applicant's unemployment and the <br/>
<a id="pl.3.3"></a><var>3.3</var>proportion of difference in the rates. Employment that may not be suitable because of <br/>
<a id="pl.3.4"></a><var>3.4</var>lower wages during the early weeks of the applicant's unemployment may become suitable <br/>
<a id="pl.3.5"></a><var>3.5</var>as the duration of unemployment lengthens.<br/>
<a id="pl.3.6"></a><var>3.6</var>    (d) For an applicant seasonally unemployed, suitable employment includes <br/>
<a id="pl.3.7"></a><var>3.7</var>temporary work in a lower skilled occupation that pays average gross weekly wages equal <br/>
<a id="pl.3.8"></a><var>3.8</var>to or more than 150 percent of the applicant's weekly unemployment benefit amount.<br/>
<a id="pl.3.9"></a><var>3.9</var>    (e) If a majority of the applicant's weeks of employment in the base period includes <br/>
<a id="pl.3.10"></a><var>3.10</var>part-time employment, part-time employment in a position with comparable skills and <br/>
<a id="pl.3.11"></a><var>3.11</var>comparable hours that pays comparable wages is considered suitable employment.<br/>
<a id="pl.3.12"></a><var>3.12</var>    Full-time employment is not considered suitable employment for an applicant if a <br/>
<a id="pl.3.13"></a><var>3.13</var>majority of the applicant's weeks of employment in the base period includes part-time <br/>
<a id="pl.3.14"></a><var>3.14</var>employment.<br/>
<a id="pl.3.15"></a><var>3.15</var>    (f) To determine suitability of employment in terms of shifts, the arrangement of <br/>
<a id="pl.3.16"></a><var>3.16</var>hours in addition to the total number of hours is to be considered. Employment on a <br/>
<a id="pl.3.17"></a><var>3.17</var>second, third, rotating, or split shift is suitable employment if it is customary in the <br/>
<a id="pl.3.18"></a><var>3.18</var>occupation in the labor market area.<br/>
<a id="pl.3.19"></a><var>3.19</var>    (g) Employment is not considered suitable if:<br/>
<a id="pl.3.20"></a><var>3.20</var>    (1) the position offered is vacant because of a labor dispute;<br/>
<a id="pl.3.21"></a><var>3.21</var>    (2) the wages, hours, or other conditions of employment are substantially less <br/>
<a id="pl.3.22"></a><var>3.22</var>favorable than those prevailing for similar employment in the labor market area;<br/>
<a id="pl.3.23"></a><var>3.23</var>    (3) as a condition of becoming employed, the applicant would be required to join a <br/>
<a id="pl.3.24"></a><var>3.24</var>company union or to resign from or refrain from joining any bona fide labor organization; <br/>
<a id="pl.3.25"></a><var>3.25</var>or<br/>
<a id="pl.3.26"></a><var>3.26</var>(4) the employment is with a staffing service and less than 45 25 percent of the <br/>
<a id="pl.3.27"></a><var>3.27</var>applicant's wage credits are from a job assignment with the client of a staffing service.<br/>
<a id="pl.3.28"></a><var>3.28</var>(h) A job assignment with a staffing service is considered suitable only if 45 25 <br/>
<a id="pl.3.29"></a><var>3.29</var>percent or more of the applicant's wage credits are from job assignments with clients of <br/>
<a id="pl.3.30"></a><var>3.30</var>a staffing service and the job assignment meets the definition of suitable employment <br/>
<a id="pl.3.31"></a><var>3.31</var>under paragraph (a).<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.3.32"></a><var>3.32</var>    Sec. 4. Minnesota Statutes 2010, section 268.035, subdivision 32, is amended to read:<br/>
<a id="pl.3.33"></a><var>3.33</var>    Subd. 32. <b>Weekly unemployment benefit amount.</b> "Weekly unemployment benefit <br/>
<a id="pl.3.34"></a><var>3.34</var>amount" means the amount of unemployment benefits computed under section 268.07, <br/>
<a id="pl.3.35"></a><var>3.35</var>subdivision 2, paragraph (b) 2a.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.4.1"></a><var>4.1</var>    Sec. 5. Minnesota Statutes 2010, section 268.051, subdivision 8, is amended to read:<br/>
<a id="pl.4.2"></a><var>4.2</var>    Subd. 8. <b>Special assessment for interest on federal loan.</b> (a) If on October 31 of <br/>
<a id="pl.4.3"></a><var>4.3</var>any year, the commissioner, in consultation with the commissioner of management and <br/>
<a id="pl.4.4"></a><var>4.4</var>budget, determines that an interest payment will be due during the following calendar year <br/>
<a id="pl.4.5"></a><var>4.5</var>on any loan from the federal unemployment trust fund under section 
         <statute_ref>268.194, subdivision <br/>
<a id="pl.4.6"></a><var>4.6</var>6
         </statute_ref>, a special assessment on taxpaying employers will be in effect for the following calendar <br/>
<a id="pl.4.7"></a><var>4.7</var>year. The legislature authorizes the commissioner, in consultation with the commissioner <br/>
<a id="pl.4.8"></a><var>4.8</var>of management and budget, to determine the appropriate level of the assessment, from <br/>
<a id="pl.4.9"></a><var>4.9</var>two percent up to eight percent of the total quarterly unemployment taxes due based upon <br/>
<a id="pl.4.10"></a><var>4.10</var>determined rates and assigned assessments under subdivision 2, that will be necessary to <br/>
<a id="pl.4.11"></a><var>4.11</var>pay the interest due on the loan.<br/>
<a id="pl.4.12"></a><var>4.12</var>    (b) The special assessment must be placed into a special account from which the <br/>
<a id="pl.4.13"></a><var>4.13</var>commissioner must pay any interest that has accrued on any loan from the federal <br/>
<a id="pl.4.14"></a><var>4.14</var>unemployment trust fund provided for under section 
         <statute_ref>268.194, subdivision 6</statute_ref>. If, at the end <br/>
<a id="pl.4.15"></a><var>4.15</var>of each calendar quarter, the commissioner, in consultation with the commissioner of <br/>
<a id="pl.4.16"></a><var>4.16</var>management and budget, determines that the balance in this special account, including <br/>
<a id="pl.4.17"></a><var>4.17</var>interest earned on the special account, is more than is necessary to pay the interest that has <br/>
<a id="pl.4.18"></a><var>4.18</var>accrued on any loan as of that date, or will accrue over the following calendar quarter, <br/>
<a id="pl.4.19"></a><var>4.19</var>the commissioner must immediately pay to the trust fund the amount in excess of that <br/>
<a id="pl.4.20"></a><var>4.20</var>necessary to pay the interest on any loan.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.4.21"></a><var>4.21</var>    Sec. 6. Minnesota Statutes 2010, section 268.07, subdivision 2, is amended to read:<br/>
<a id="pl.4.22"></a><var>4.22</var>    Subd. 2. <b>Benefit account requirements.</b> (a) Unless paragraph (b) applies, to <br/>
<a id="pl.4.23"></a><var>4.23</var>establish a benefit account:<br/>
<a id="pl.4.24"></a><var>4.24</var>(1) using the primary base period under section 
<statute_ref>268.035, subdivision 4</statute_ref>, paragraph <br/>
<a id="pl.4.25"></a><var>4.25</var>(a), an applicant must have:<br/>
<a id="pl.4.26"></a><var>4.26</var>    (i) wage credits in the high quarter of $1,000 or more; and<br/>
<a id="pl.4.27"></a><var>4.27</var>    (ii) wage credits, in other than the high quarter, of $250 or more; or<br/>
<a id="pl.4.28"></a><var>4.28</var>(2) using the secondary base period under section 
<statute_ref>268.035</statute_ref>, subdivision 4, paragraph <br/>
<a id="pl.4.29"></a><var>4.29</var>(b), An applicant must have total wage credits in the high applicant's four quarter base <br/>
<a id="pl.4.30"></a><var>4.30</var>period of $1,000 or more at least: (1) $2,400; or (2) 5.3 percent of the state's average <br/>
<a id="pl.4.31"></a><var>4.31</var>annual wage rounded down to the next lower $100, whichever is higher.<br/>
<a id="pl.4.32"></a><var>4.32</var>(b) To establish a new benefit account within 52 calendar weeks following the <br/>
<a id="pl.4.33"></a><var>4.33</var>expiration of the benefit year on a prior benefit account, an applicant must meet the <br/>
<a id="pl.4.34"></a><var>4.34</var>requirements of paragraph (a) and must have performed services in covered employment <br/>
<a id="pl.4.35"></a><var>4.35</var>in a calendar quarter that started after the effective date of the prior benefit account. The <br/>
<a id="pl.5.1"></a><var>5.1</var>wage credits wages paid for those services must be at least eight times the weekly benefit <br/>
<a id="pl.5.2"></a><var>5.2</var>amount on the prior benefit account enough to meet the requirements of paragraph (a), <br/>
<a id="pl.5.3"></a><var>5.3</var>and have been reported on wage detail under section 268.044. One of the reasons for <br/>
<a id="pl.5.4"></a><var>5.4</var>this paragraph is to prevent an applicant from establishing a second benefit account as a <br/>
<a id="pl.5.5"></a><var>5.5</var>result of one loss of employment.<br/>
<a id="pl.5.6"></a><var>5.6</var><b>EFFECTIVE DATE.</b>This section is effective for applications for unemployment <br/>
<a id="pl.5.7"></a><var>5.7</var>benefits made on or after October 28, 2012, except that in paragraph (b), the striking of <br/>
<a id="pl.5.8"></a><var>5.8</var>"wage credits" and the insertion of "wages paid" and the insertion of "and have been <br/>
<a id="pl.5.9"></a><var>5.9</var>reported on wage detail under section 268.044" are effective the day following final <br/>
<a id="pl.5.10"></a><var>5.10</var>enactment.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.5.11"></a><var>5.11</var>    Sec. 7. Minnesota Statutes 2010, section 268.07, subdivision 3b, is amended to read:<br/>
<a id="pl.5.12"></a><var>5.12</var>    Subd. 3b. <b>Limitations on applications and benefit accounts.</b> (a) An application for <br/>
<a id="pl.5.13"></a><var>5.13</var>unemployment benefits is effective the Sunday of the calendar week that the application <br/>
<a id="pl.5.14"></a><var>5.14</var>was filed. An application for unemployment benefits may be backdated one calendar week <br/>
<a id="pl.5.15"></a><var>5.15</var>before the Sunday of the week the application was actually filed if the applicant requests <br/>
<a id="pl.5.16"></a><var>5.16</var>the backdating at the time the application is filed. An application may be backdated only if <br/>
<a id="pl.5.17"></a><var>5.17</var>the applicant had no employment during the period of the backdating. If an individual <br/>
<a id="pl.5.18"></a><var>5.18</var>attempted to file an application for unemployment benefits, but was prevented from filing <br/>
<a id="pl.5.19"></a><var>5.19</var>an application by the department, the application is effective the Sunday of the calendar <br/>
<a id="pl.5.20"></a><var>5.20</var>week the individual first attempted to file an application.<br/>
<a id="pl.5.21"></a><var>5.21</var>    (b) A benefit account established under subdivision 2 is effective the date the <br/>
<a id="pl.5.22"></a><var>5.22</var>application for unemployment benefits was effective.<br/>
<a id="pl.5.23"></a><var>5.23</var>    (c) A benefit account, once established, may later be withdrawn only if:<br/>
<a id="pl.5.24"></a><var>5.24</var>    (1) the applicant has not been paid any unemployment benefits on that benefit <br/>
<a id="pl.5.25"></a><var>5.25</var>account; and<br/>
<a id="pl.5.26"></a><var>5.26</var>(2) a new application for unemployment benefits is filed and a new benefit account is <br/>
<a id="pl.5.27"></a><var>5.27</var>established at the time of the withdrawal.<br/>
<a id="pl.5.28"></a><var>5.28</var>    A determination or amended determination of eligibility or ineligibility issued under <br/>
<a id="pl.5.29"></a><var>5.29</var>section 
         <statute_ref>268.101</statute_ref>, that was sent before the withdrawal of the benefit account, remains in <br/>
<a id="pl.5.30"></a><var>5.30</var>effect and is not voided by the withdrawal of the benefit account. A determination of <br/>
<a id="pl.5.31"></a><var>5.31</var>ineligibility requiring subsequent earnings to satisfy the period of ineligibility under <br/>
<a id="pl.5.32"></a><var>5.32</var>section 
<statute_ref>268.095, subdivision 10</statute_ref>, applies to the weekly unemployment benefit amount on <br/>
<a id="pl.5.33"></a><var>5.33</var>the new benefit account.<br/>
<a id="pl.5.34"></a><var>5.34</var>    (d) An application for unemployment benefits is not allowed before the Sunday <br/>
<a id="pl.5.35"></a><var>5.35</var>following the expiration of the benefit year on a prior benefit account. Except as allowed <br/>
<a id="pl.6.1"></a><var>6.1</var>under paragraph (c), an applicant may establish only one benefit account each 52 calendar <br/>
<a id="pl.6.2"></a><var>6.2</var>weeks.<br/>
<a id="pl.6.3"></a><var>6.3</var><b>EFFECTIVE DATE.</b>This section is effective October 28, 2012, and applies <br/>
<a id="pl.6.4"></a><var>6.4</var>retroactively from July 1, 2011.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.6.5"></a><var>6.5</var>    Sec. 8. Minnesota Statutes 2010, section 268.085, subdivision 3, is amended to read:<br/>
<a id="pl.6.6"></a><var>6.6</var>    Subd. 3. <b>Payments that delay unemployment benefits.</b> (a) An applicant is not <br/>
<a id="pl.6.7"></a><var>6.7</var>eligible to receive unemployment benefits for any week with respect to which the applicant <br/>
<a id="pl.6.8"></a><var>6.8</var>is receiving, has received, or has filed for payment, equal to or in excess of the applicant's <br/>
<a id="pl.6.9"></a><var>6.9</var>weekly unemployment benefit amount, in the form of:<br/>
<a id="pl.6.10"></a><var>6.10</var>    (1) vacation pay, sick pay, or personal time off pay, also known as "PTO," paid <br/>
<a id="pl.6.11"></a><var>6.11</var>upon temporary, indefinite, or seasonal separation. This clause does not apply to (i) <br/>
<a id="pl.6.12"></a><var>6.12</var>vacation pay, sick pay, or personal time off pay, paid upon a permanent separation from <br/>
<a id="pl.6.13"></a><var>6.13</var>employment, or (ii) vacation pay, sick pay, or personal time off pay, paid from a vacation <br/>
<a id="pl.6.14"></a><var>6.14</var>fund administered by a union or a third party not under the control of the employer;<br/>
<a id="pl.6.15"></a><var>6.15</var>    (2) severance pay, bonus pay, sick pay, and any other payments, except earnings <br/>
<a id="pl.6.16"></a><var>6.16</var>under subdivision 5, and back pay under subdivision 6, paid by an employer because of, <br/>
<a id="pl.6.17"></a><var>6.17</var>upon, or after separation from employment, but only if the payment is considered wages at <br/>
<a id="pl.6.18"></a><var>6.18</var>the time of payment under section 
         <statute_ref>268.035, subdivision 29</statute_ref>; or<br/>
<a id="pl.6.19"></a><var>6.19</var>    (3) pension, retirement, or annuity payments from any plan contributed to by a base <br/>
<a id="pl.6.20"></a><var>6.20</var>period employer including the United States government, except Social Security benefits <br/>
<a id="pl.6.21"></a><var>6.21</var>that are provided for in subdivision 4. The base period employer is considered to have <br/>
<a id="pl.6.22"></a><var>6.22</var>contributed to the plan if the contribution is excluded from the definition of wages under <br/>
<a id="pl.6.23"></a><var>6.23</var>section 
         <statute_ref>268.035, subdivision 29</statute_ref>, clause (1).<br/>
<a id="pl.6.24"></a><var>6.24</var>    If the pension, retirement, or annuity payment is paid in a lump sum, an applicant is <br/>
<a id="pl.6.25"></a><var>6.25</var>not considered to have received a payment if (i) the applicant immediately deposits that <br/>
<a id="pl.6.26"></a><var>6.26</var>payment in a qualified pension plan or account, or (ii) that payment is an early distribution <br/>
<a id="pl.6.27"></a><var>6.27</var>for which the applicant paid an early distribution penalty under the Internal Revenue <br/>
<a id="pl.6.28"></a><var>6.28</var>Code, United States Code, title 26, section 72(t)(1).<br/>
<a id="pl.6.29"></a><var>6.29</var>    (b) This subdivision applies to all the weeks of payment. Payments under paragraph <br/>
<a id="pl.6.30"></a><var>6.30</var>(a), clause (1), are applied to the period immediately following the last day of employment. <br/>
<a id="pl.6.31"></a><var>6.31</var>The number of weeks of payment is determined as follows:<br/>
<a id="pl.6.32"></a><var>6.32</var>    (1) if the payments are made periodically, the total of the payments to be received is <br/>
<a id="pl.6.33"></a><var>6.33</var>divided by the applicant's last level of regular weekly pay from the employer; or<br/>
<a id="pl.6.34"></a><var>6.34</var>    (2) if the payment is made in a lump sum, that sum is divided by the applicant's last <br/>
<a id="pl.6.35"></a><var>6.35</var>level of regular weekly pay from the employer.<br/>
<a id="pl.7.1"></a><var>7.1</var>    (c) If the payment is less than the applicant's weekly unemployment benefit amount, <br/>
<a id="pl.7.2"></a><var>7.2</var>unemployment benefits are reduced by the amount of the payment.<br/>
<a id="pl.7.3"></a><var>7.3</var><b>EFFECTIVE DATE.</b>This section is effective for determinations issued on or <br/>
<a id="pl.7.4"></a><var>7.4</var>after August 7, 2011.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.7.5"></a><var>7.5</var>    Sec. 9. Minnesota Statutes 2010, section 268.095, subdivision 10, is amended to read:<br/>
<a id="pl.7.6"></a><var>7.6</var>    Subd. 10. <b>Ineligibility duration.</b> (a) Ineligibility from the payment of all <br/>
<a id="pl.7.7"></a><var>7.7</var>unemployment benefits under subdivisions 1 and 4 is for the duration of the applicant's <br/>
<a id="pl.7.8"></a><var>7.8</var>unemployment and until the end of the calendar week that the applicant had total earnings <br/>
<a id="pl.7.9"></a><var>7.9</var>wages paid in subsequent covered employment of eight times the applicant's weekly <br/>
<a id="pl.7.10"></a><var>7.10</var>unemployment benefit amount sufficient to meet one-half of the requirements of section <br/>
<a id="pl.7.11"></a><var>7.11</var>268.07, subdivision 2, paragraph (a).<br/>
<a id="pl.7.12"></a><var>7.12</var>    (b) Ineligibility imposed under subdivisions 1 and 4 begins on the Sunday of the <br/>
<a id="pl.7.13"></a><var>7.13</var>week that the applicant became separated from employment.<br/>
<a id="pl.7.14"></a><var>7.14</var>    (c) In addition to paragraph (a), if the applicant was discharged from employment <br/>
<a id="pl.7.15"></a><var>7.15</var>because of aggravated employment misconduct, wage credits from that employment are <br/>
<a id="pl.7.16"></a><var>7.16</var>canceled and cannot be used for purposes of a benefit account under section 
         <statute_ref>268.07</statute_ref>, <br/>
<a id="pl.7.17"></a><var>7.17</var>subdivision 2.<br/>
<a id="pl.7.18"></a><var>7.18</var><b>EFFECTIVE DATE.</b>This section is effective October 28, 2012, and applies to <br/>
<a id="pl.7.19"></a><var>7.19</var>all requalifications after that date.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.7.20"></a><var>7.20</var>    Sec. 10. Laws 2009, chapter 78, article 3, section 16, is amended to read:<br/>
<a id="pl.7.21"></a><var>7.21</var>    Sec. 16. <b>ENTREPRENEURSHIP FOR DISLOCATED WORKERS.</b><br/>
<a id="pl.7.22"></a><var>7.22</var>    Subdivision 1. <b>Authorization.</b> Minnesota has been awarded a federal grant by <br/>
<a id="pl.7.23"></a><var>7.23</var>the United States Department of Labor under the Project GATE (Growing America <br/>
<a id="pl.7.24"></a><var>7.24</var>Through Entrepreneurship) program to assist certain dislocated workers in starting a <br/>
<a id="pl.7.25"></a><var>7.25</var>business. Providing unemployment benefits while the dislocated worker is receiving <br/>
<a id="pl.7.26"></a><var>7.26</var>services such as entrepreneurial training, business counseling, and technical assistance <br/>
<a id="pl.7.27"></a><var>7.27</var>will assist in the success of this pilot project. In order to provide unemployment benefits to <br/>
<a id="pl.7.28"></a><var>7.28</var>individuals enrolled in this pilot program, the commissioner of employment and economic <br/>
<a id="pl.7.29"></a><var>7.29</var>development is authorized to waive:<br/>
<a id="pl.7.30"></a><var>7.30</var>(1) the availability for suitable employment requirements of Minnesota Statutes, <br/>
<a id="pl.7.31"></a><var>7.31</var>section 
         <statute_ref>268.085, subdivision 1</statute_ref>, clause (5),<br/>
<a id="pl.7.32"></a><var>7.32</var>as well as (2) the earnings deductibility provisions of Minnesota Statutes, section <br/>
<statute_ref><a id="pl.7.33"></a><var>7.33</var>268.085, subdivision 5
         </statute_ref>, for individuals enrolled in this pilot project. and<br/>
<a id="pl.8.1"></a><var>8.1</var>(3) the 32 hours of work limitation of Minnesota Statutes, section 268.085, <br/>
<a id="pl.8.2"></a><var>8.2</var>subdivision 2, clause (6).<br/>
<a id="pl.8.3"></a><var>8.3</var>    Subd. 2. <b>Limitations.</b> A maximum of 500 applicants for unemployment benefits are <br/>
<a id="pl.8.4"></a><var>8.4</var>authorized to receive a waiver.<br/>
<a id="pl.8.5"></a><var>8.5</var>    Subd. 3. <b>Expiration date.</b> The authorization under subdivision 1 expires June <br/>
<a id="pl.8.6"></a><var>8.6</var>30, 2012.<br/>
<a id="pl.8.7"></a><var>8.7</var><b>EFFECTIVE DATE.</b>This section is effective the Sunday following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.8.10"></a><var>8.10</var>    Section 1. Minnesota Statutes 2010, section 268.035, subdivision 4, is amended to read:<br/>
<a id="pl.8.11"></a><var>8.11</var>    Subd. 4. <b>Base period.</b> (a) "Base period," unless otherwise provided in this <br/>
<a id="pl.8.12"></a><var>8.12</var>subdivision, means the last most recent four completed calendar quarters before the <br/>
<a id="pl.8.13"></a><var>8.13</var>effective date of an applicant's application for unemployment benefits if the application <br/>
<a id="pl.8.14"></a><var>8.14</var>has an effective date occurring after the month following the last most recent completed <br/>
<a id="pl.8.15"></a><var>8.15</var>calendar quarter. The base period defined in this paragraph is considered the primary base <br/>
<a id="pl.8.16"></a><var>8.16</var>period. The base period under this paragraph is as follows:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="25"/>
<col width="5"/>
<col width="20"/>
<tr>
<td><a id="pl.8.17"></a><var>8.17</var><br/>
<a id="pl.8.18"></a><var>8.18</var><br/>
<a id="pl.8.19"></a><var>8.19</var><br/>
</td>
<td></td>
<td valign="top">If the application for unemployment <br/>
                  		benefits is effective on or between these <br/>
                  		dates:<br/>
</td>
<td></td>
<td valign="top">The base period is the prior:<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.20"></a><var>8.20</var><br/>
</td>
<td></td>
<td>February 1 - March 31<br/>
</td>
<td></td>
<td>January 1 - December 31<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.21"></a><var>8.21</var><br/>
</td>
<td></td>
<td>May 1 - June 30<br/>
</td>
<td></td>
<td>April 1 - March 31<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.22"></a><var>8.22</var><br/>
</td>
<td></td>
<td>August 1 - September 30<br/>
</td>
<td></td>
<td>July 1 - June 30<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.23"></a><var>8.23</var><br/>
</td>
<td></td>
<td>November 1 - December 31<br/>
</td>
<td></td>
<td>October 1 - September 30<br/>
</td>
</tr>
</table><a id="pl.8.24"></a><var>8.24</var>    (b) If an application for unemployment benefits has an effective date that is during <br/>
<a id="pl.8.25"></a><var>8.25</var>the month following the last most recent completed calendar quarter, then the base period <br/>
<a id="pl.8.26"></a><var>8.26</var>is the first four of the last most recent five completed calendar quarters before the effective <br/>
<a id="pl.8.27"></a><var>8.27</var>date of an applicant's application for unemployment benefits. The base period defined <br/>
<a id="pl.8.28"></a><var>8.28</var>in this paragraph is considered the secondary base period. The base period under this <br/>
<a id="pl.8.29"></a><var>8.29</var>paragraph is as follows:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="25"/>
<col width="5"/>
<col width="20"/>
<tr>
<td><a id="pl.8.30"></a><var>8.30</var><br/>
<a id="pl.8.31"></a><var>8.31</var><br/>
<a id="pl.8.32"></a><var>8.32</var><br/>
</td>
<td></td>
<td valign="top">If the application for unemployment <br/>
                  		benefits is effective on or between these <br/>
                  		dates:<br/>
</td>
<td></td>
<td valign="top">The base period is the prior:<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.33"></a><var>8.33</var><br/>
</td>
<td></td>
<td>January 1 -  January 31<br/>
</td>
<td></td>
<td>October 1 - September 30<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.34"></a><var>8.34</var><br/>
</td>
<td></td>
<td>April 1 -  April 30<br/>
</td>
<td></td>
<td>January 1 - December 31<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.35"></a><var>8.35</var><br/>
</td>
<td></td>
<td>July 1 -  July 31<br/>
</td>
<td></td>
<td>April 1 - March 31<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.36"></a><var>8.36</var><br/>
</td>
<td></td>
<td>October 1 -  October 31<br/>
</td>
<td></td>
<td>July 1 - June 30<br/>
</td>
</tr>
</table><a id="pl.9.1"></a><var>9.1</var>    (c) If the applicant has insufficient wage credits to establish a benefit account under <br/>
<a id="pl.9.2"></a><var>9.2</var>paragraph (a) or (b), but during the base period under paragraph (a) or (b) an applicant <br/>
<a id="pl.9.3"></a><var>9.3</var>received workers' compensation for temporary disability under chapter 176 or a similar <br/>
<a id="pl.9.4"></a><var>9.4</var>federal law or similar law of another state, or if an applicant whose own serious illness <br/>
<a id="pl.9.5"></a><var>9.5</var>caused a loss of work for which the applicant received compensation for loss of wages <br/>
<a id="pl.9.6"></a><var>9.6</var>from some other source, the applicant may request an extended base period as follows:<br/>
<a id="pl.9.7"></a><var>9.7</var>    (1) if an applicant was compensated for a loss of work of seven to 13 weeks, the <br/>
<a id="pl.9.8"></a><var>9.8</var>base period is the first four of the last most recent six completed calendar quarters before <br/>
<a id="pl.9.9"></a><var>9.9</var>the effective date of the application for unemployment benefits;<br/>
<a id="pl.9.10"></a><var>9.10</var>    (2) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base <br/>
<a id="pl.9.11"></a><var>9.11</var>period is the first four of the last most recent seven completed calendar quarters before the <br/>
<a id="pl.9.12"></a><var>9.12</var>effective date of the application for unemployment benefits;<br/>
<a id="pl.9.13"></a><var>9.13</var>    (3) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base <br/>
<a id="pl.9.14"></a><var>9.14</var>period is the first four of the last most recent eight completed calendar quarters before the <br/>
<a id="pl.9.15"></a><var>9.15</var>effective date of the application for unemployment benefits; and<br/>
<a id="pl.9.16"></a><var>9.16</var>    (4) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base <br/>
<a id="pl.9.17"></a><var>9.17</var>period is the first four of the last most recent nine completed calendar quarters before the <br/>
<a id="pl.9.18"></a><var>9.18</var>effective date of the application for unemployment benefits.<br/>
<a id="pl.9.19"></a><var>9.19</var>(d) If the applicant has insufficient wage credits to establish a benefit account <br/>
<a id="pl.9.20"></a><var>9.20</var>using the secondary base period under paragraph (b), an alternate base period of the last <br/>
<a id="pl.9.21"></a><var>9.21</var>most recent four completed calendar quarters before the effective date of the applicant's <br/>
<a id="pl.9.22"></a><var>9.22</var>application for unemployment benefits will be used. Establishment of a benefit account is <br/>
<a id="pl.9.23"></a><var>9.23</var>in accordance with section 
         <statute_ref>268.07, subdivision 2</statute_ref>.<br/>
<a id="pl.9.24"></a><var>9.24</var>    (e) No base period under paragraph (a), (b), (c), or (d) may include wage credits <br/>
<a id="pl.9.25"></a><var>9.25</var>upon which a prior benefit account was established.<br/>
<a id="pl.9.26"></a><var>9.26</var>(f) Regardless of paragraph (a), the secondary base period in paragraph (b) must <br/>
<a id="pl.9.27"></a><var>9.27</var>be used if the applicant has more wage credits under that base period than under the <br/>
<a id="pl.9.28"></a><var>9.28</var>primary base period in paragraph (a).<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.9.29"></a><var>9.29</var>    Sec. 2. Minnesota Statutes 2010, section 268.035, subdivision 20, is amended to read:<br/>
<a id="pl.9.30"></a><var>9.30</var>    Subd. 20. <b>Noncovered employment.</b> "Noncovered employment" means:<br/>
<a id="pl.9.31"></a><var>9.31</var>    (1) employment for the United States government or an instrumentality thereof, <br/>
<a id="pl.9.32"></a><var>9.32</var>including military service;<br/>
<a id="pl.9.33"></a><var>9.33</var>    (2) employment for a state, other than Minnesota, or a political subdivision or <br/>
<a id="pl.9.34"></a><var>9.34</var>instrumentality thereof;<br/>
<a id="pl.9.35"></a><var>9.35</var>    (3) employment for a foreign government;<br/>
<a id="pl.10.1"></a><var>10.1</var>    (4) employment for an instrumentality wholly owned by a foreign government, <br/>
<a id="pl.10.2"></a><var>10.2</var>if the employment is of a character similar to that performed in foreign countries by <br/>
<a id="pl.10.3"></a><var>10.3</var>employees of the United States government or an instrumentality thereof and the United <br/>
<a id="pl.10.4"></a><var>10.4</var>States Secretary of State has certified that the foreign government grants an equivalent <br/>
<a id="pl.10.5"></a><var>10.5</var>exemption to similar employment performed in the foreign country by employees of the <br/>
<a id="pl.10.6"></a><var>10.6</var>United States government and instrumentalities thereof;<br/>
<a id="pl.10.7"></a><var>10.7</var>    (5) employment covered under United States Code, title 45, section 351, the <br/>
<a id="pl.10.8"></a><var>10.8</var>Railroad Unemployment Insurance Act;<br/>
<a id="pl.10.9"></a><var>10.9</var>    (6) employment covered by a reciprocal arrangement between the commissioner and <br/>
<a id="pl.10.10"></a><var>10.10</var>another state or the federal government that provides that all employment performed by an <br/>
<a id="pl.10.11"></a><var>10.11</var>individual for an employer during the period covered by the reciprocal arrangement is <br/>
<a id="pl.10.12"></a><var>10.12</var>considered performed entirely within another state;<br/>
<a id="pl.10.13"></a><var>10.13</var>    (7) employment for a church or convention or association of churches, or an <br/>
<a id="pl.10.14"></a><var>10.14</var>organization operated primarily for religious purposes that is operated, supervised, <br/>
<a id="pl.10.15"></a><var>10.15</var>controlled, or principally supported by a church or convention or association of churches <br/>
<a id="pl.10.16"></a><var>10.16</var>described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue <br/>
<a id="pl.10.17"></a><var>10.17</var>Code and exempt from income tax under section 501(a);<br/>
<a id="pl.10.18"></a><var>10.18</var>    (8) employment of a duly ordained or licensed minister of a church in the exercise of <br/>
<a id="pl.10.19"></a><var>10.19</var>a ministry or by a member of a religious order in the exercise of duties required by the <br/>
<a id="pl.10.20"></a><var>10.20</var>order, for Minnesota or a political subdivision or an organization described in United <br/>
<a id="pl.10.21"></a><var>10.21</var>States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt <br/>
<a id="pl.10.22"></a><var>10.22</var>from income tax under section 501(a);<br/>
<a id="pl.10.23"></a><var>10.23</var>    (9) employment of an individual receiving rehabilitation of "sheltered" work in <br/>
<a id="pl.10.24"></a><var>10.24</var>a facility conducted for the purpose of carrying out a program of rehabilitation for <br/>
<a id="pl.10.25"></a><var>10.25</var>individuals whose earning capacity is impaired by age or physical or mental deficiency <br/>
<a id="pl.10.26"></a><var>10.26</var>or injury or a program providing "sheltered" work for individuals who because of an <br/>
<a id="pl.10.27"></a><var>10.27</var>impaired physical or mental capacity cannot be readily absorbed in the competitive labor <br/>
<a id="pl.10.28"></a><var>10.28</var>market. This clause applies only to services performed for Minnesota or a political <br/>
<a id="pl.10.29"></a><var>10.29</var>subdivision or an organization described in United States Code, title 26, section 501(c)(3) <br/>
<a id="pl.10.30"></a><var>10.30</var>of the federal Internal Revenue Code and exempt from income tax under section 501(a) <br/>
<a id="pl.10.31"></a><var>10.31</var>in a facility certified by the Rehabilitation Services Branch of the department or in a day <br/>
<a id="pl.10.32"></a><var>10.32</var>training or habilitation program licensed by the Department of Human Services;<br/>
<a id="pl.10.33"></a><var>10.33</var>    (10) employment of an individual receiving work relief or work training as part of <br/>
<a id="pl.10.34"></a><var>10.34</var>an unemployment work relief or work training program assisted or financed in whole or <br/>
<a id="pl.10.35"></a><var>10.35</var>in part by any federal agency or an agency of a state or political subdivision thereof. <br/>
<a id="pl.10.36"></a><var>10.36</var>This clause applies only to employment for Minnesota or a political subdivision or an <br/>
<a id="pl.11.1"></a><var>11.1</var>organization described in United States Code, title 26, section 501(c)(3) of the federal <br/>
<a id="pl.11.2"></a><var>11.2</var>Internal Revenue Code and exempt from income tax under section 501(a). This clause does <br/>
<a id="pl.11.3"></a><var>11.3</var>not apply to programs that require unemployment benefit coverage for the participants;<br/>
<a id="pl.11.4"></a><var>11.4</var>    (11) employment for Minnesota or a political subdivision as an elected official, a <br/>
<a id="pl.11.5"></a><var>11.5</var>member of a legislative body, or a member of the judiciary;<br/>
<a id="pl.11.6"></a><var>11.6</var>    (12) employment as a member of the Minnesota National Guard or Air National <br/>
<a id="pl.11.7"></a><var>11.7</var>Guard;<br/>
<a id="pl.11.8"></a><var>11.8</var>    (13) employment for Minnesota, a political subdivision, or instrumentality thereof, <br/>
<a id="pl.11.9"></a><var>11.9</var>as an employee serving only on a temporary basis in case of fire, flood, tornado, or <br/>
<a id="pl.11.10"></a><var>11.10</var>similar emergency;<br/>
<a id="pl.11.11"></a><var>11.11</var>    (14) employment as an election official or election worker for Minnesota or a <br/>
<a id="pl.11.12"></a><var>11.12</var>political subdivision, but only if the compensation for that employment was less than <br/>
<a id="pl.11.13"></a><var>11.13</var>$1,000 in a calendar year;<br/>
<a id="pl.11.14"></a><var>11.14</var>    (15) employment for Minnesota that is a major policy-making or advisory position <br/>
<a id="pl.11.15"></a><var>11.15</var>in the unclassified service, including those positions established under section 
         <statute_ref>43A.08, <br/>
<a id="pl.11.16"></a><var>11.16</var>subdivision 1a
         </statute_ref>;<br/>
<a id="pl.11.17"></a><var>11.17</var>    (16) employment for a political subdivision of Minnesota that is a nontenured major <br/>
<a id="pl.11.18"></a><var>11.18</var>policy making or advisory position;<br/>
<a id="pl.11.19"></a><var>11.19</var>    (17) domestic employment in a private household, local college club, or local <br/>
<a id="pl.11.20"></a><var>11.20</var>chapter of a college fraternity or sorority performed for a person, only if the wages paid <br/>
<a id="pl.11.21"></a><var>11.21</var>in any calendar quarter in either the current or prior calendar year to all individuals in <br/>
<a id="pl.11.22"></a><var>11.22</var>domestic employment totaled less than $1,000.<br/>
<a id="pl.11.23"></a><var>11.23</var>    "Domestic employment" includes all service in the operation and maintenance of a <br/>
<a id="pl.11.24"></a><var>11.24</var>private household, for a local college club, or local chapter of a college fraternity or <br/>
<a id="pl.11.25"></a><var>11.25</var>sorority as distinguished from service as an employee in the pursuit of an employer's <br/>
<a id="pl.11.26"></a><var>11.26</var>trade or business;<br/>
<a id="pl.11.27"></a><var>11.27</var>    (18) employment of an individual by a son, daughter, or spouse, and employment of <br/>
<a id="pl.11.28"></a><var>11.28</var>a child under the age of 18 by the child's father or mother;<br/>
<a id="pl.11.29"></a><var>11.29</var>    (19) employment for a personal care assistance provider agency by an immediate <br/>
<a id="pl.11.30"></a><var>11.30</var>family member of a recipient who provides the direct care to the recipient through the <br/>
<a id="pl.11.31"></a><var>11.31</var>personal care assistance program under section 
         <statute_ref>256B.0659</statute_ref>;<br/>
<a id="pl.11.32"></a><var>11.32</var>(20) employment of an inmate of a custodial or penal institution;<br/>
<a id="pl.11.33"></a><var>11.33</var>    (21) employment for a school, college, or university by a student who is enrolled <br/>
<a id="pl.11.34"></a><var>11.34</var>and is regularly attending classes at whose primary relation to the school, college, or <br/>
<a id="pl.11.35"></a><var>11.35</var>university is as a student. This does not include an individual whose primary relation to <br/>
<a id="pl.11.36"></a><var>11.36</var>the school, college, or university is as an employee who also takes courses;<br/>
<a id="pl.12.1"></a><var>12.1</var>     (22) employment of an individual who is enrolled as a student in a full-time program <br/>
<a id="pl.12.2"></a><var>12.2</var>at a nonprofit or public educational institution that maintains a regular faculty and <br/>
<a id="pl.12.3"></a><var>12.3</var>curriculum and has a regularly organized body of students in attendance at the place <br/>
<a id="pl.12.4"></a><var>12.4</var>where its educational activities are carried on, taken for credit at the institution, that <br/>
<a id="pl.12.5"></a><var>12.5</var>combines academic instruction with work experience, if the employment is an integral <br/>
<a id="pl.12.6"></a><var>12.6</var>part of the program, and the institution has so certified to the employer, except that this <br/>
<a id="pl.12.7"></a><var>12.7</var>clause does not apply to employment in a program established for or on behalf of an <br/>
<a id="pl.12.8"></a><var>12.8</var>employer or group of employers;<br/>
<a id="pl.12.9"></a><var>12.9</var>    (23) employment of university, college, or professional school students in an <br/>
<a id="pl.12.10"></a><var>12.10</var>internship or other training program with the city of St. Paul or the city of Minneapolis <br/>
<a id="pl.12.11"></a><var>12.11</var>under Laws 1990, chapter 570, article 6, section 3;<br/>
<a id="pl.12.12"></a><var>12.12</var>    (24) employment for a hospital by a patient of the hospital. "Hospital" means an <br/>
<a id="pl.12.13"></a><var>12.13</var>institution that has been licensed by the Department of Health as a hospital;<br/>
<a id="pl.12.14"></a><var>12.14</var>    (25) employment as a student nurse for a hospital or a nurses' training school by <br/>
<a id="pl.12.15"></a><var>12.15</var>an individual who is enrolled and is regularly attending classes in an accredited nurses' <br/>
<a id="pl.12.16"></a><var>12.16</var>training school;<br/>
<a id="pl.12.17"></a><var>12.17</var>    (26) employment as an intern for a hospital by an individual who has completed a <br/>
<a id="pl.12.18"></a><var>12.18</var>four-year course in an accredited medical school;<br/>
<a id="pl.12.19"></a><var>12.19</var>    (27) employment as an insurance salesperson, by other than a corporate officer, if all <br/>
<a id="pl.12.20"></a><var>12.20</var>the wages from the employment is solely by way of commission. The word "insurance" <br/>
<a id="pl.12.21"></a><var>12.21</var>includes an annuity and an optional annuity;<br/>
<a id="pl.12.22"></a><var>12.22</var>    (28) employment as an officer of a township mutual insurance company or farmer's <br/>
<a id="pl.12.23"></a><var>12.23</var>mutual insurance company operating under chapter 67A;<br/>
<a id="pl.12.24"></a><var>12.24</var>    (29) employment of a corporate officer, if the officer directly or indirectly, including <br/>
<a id="pl.12.25"></a><var>12.25</var>through a subsidiary or holding company, owns 25 percent or more of the employer <br/>
<a id="pl.12.26"></a><var>12.26</var>corporation, and employment of a member of a limited liability company, if the member <br/>
<a id="pl.12.27"></a><var>12.27</var>directly or indirectly, including through a subsidiary or holding company, owns 25 percent <br/>
<a id="pl.12.28"></a><var>12.28</var>or more of the employer limited liability company;<br/>
<a id="pl.12.29"></a><var>12.29</var>    (30) employment as a real estate salesperson, by other than a corporate officer, if all <br/>
<a id="pl.12.30"></a><var>12.30</var>the wages from the employment is solely by way of commission;<br/>
<a id="pl.12.31"></a><var>12.31</var>    (31) employment as a direct seller as defined in United States Code, title 26, section <br/>
<a id="pl.12.32"></a><var>12.32</var>3508;<br/>
<a id="pl.12.33"></a><var>12.33</var>    (32) employment of an individual under the age of 18 in the delivery or distribution <br/>
<a id="pl.12.34"></a><var>12.34</var>of newspapers or shopping news, not including delivery or distribution to any point for <br/>
<a id="pl.12.35"></a><var>12.35</var>subsequent delivery or distribution;<br/>
<a id="pl.13.1"></a><var>13.1</var>    (33) casual employment performed for an individual, other than domestic <br/>
<a id="pl.13.2"></a><var>13.2</var>employment under clause (17), that does not promote or advance that employer's trade or <br/>
<a id="pl.13.3"></a><var>13.3</var>business;<br/>
<a id="pl.13.4"></a><var>13.4</var>    (34) employment in "agricultural employment" unless considered "covered <br/>
<a id="pl.13.5"></a><var>13.5</var>agricultural employment" under subdivision 11; or<br/>
<a id="pl.13.6"></a><var>13.6</var>    (35) if employment during one-half or more of any pay period was covered <br/>
<a id="pl.13.7"></a><var>13.7</var>employment, all the employment for the pay period is considered covered employment; <br/>
<a id="pl.13.8"></a><var>13.8</var>but if during more than one-half of any pay period the employment was noncovered <br/>
<a id="pl.13.9"></a><var>13.9</var>employment, then all of the employment for the pay period is considered noncovered <br/>
<a id="pl.13.10"></a><var>13.10</var>employment. "Pay period" means a period of not more than a calendar month for which a <br/>
<a id="pl.13.11"></a><var>13.11</var>payment or compensation is ordinarily made to the employee by the employer.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.13.12"></a><var>13.12</var>    Sec. 3. Minnesota Statutes 2010, section 268.035, subdivision 29, is amended to read:<br/>
<a id="pl.13.13"></a><var>13.13</var>    Subd. 29. <b>Wages.</b> (a) "Wages" means all compensation for services, including <br/>
<a id="pl.13.14"></a><var>13.14</var>commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and <br/>
<a id="pl.13.15"></a><var>13.15</var>holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by <br/>
<a id="pl.13.16"></a><var>13.16</var>a customer of an employer and accounted for by the employee to the employer; sickness <br/>
<a id="pl.13.17"></a><var>13.17</var>and accident disability payments, except as otherwise provided in this subdivision; and the <br/>
<a id="pl.13.18"></a><var>13.18</var>cash value of housing, utilities, meals, exchanges of services, and any other goods and <br/>
<a id="pl.13.19"></a><var>13.19</var>services provided to compensate for an employee's services, except:<br/>
<a id="pl.13.20"></a><var>13.20</var>    (1) the amount of any payment made to, or on behalf of, an employee under a plan <br/>
<a id="pl.13.21"></a><var>13.21</var>established by an employer that makes provision for employees generally or for a class <br/>
<a id="pl.13.22"></a><var>13.22</var>or classes of employees, including any amount paid by an employer for insurance or <br/>
<a id="pl.13.23"></a><var>13.23</var>annuities, or into a plan, to provide for a payment, on account of (i) retirement or (ii) <br/>
<a id="pl.13.24"></a><var>13.24</var>medical and hospitalization expenses in connection with sickness or accident disability, <br/>
<a id="pl.13.25"></a><var>13.25</var>or (iii) death;<br/>
<a id="pl.13.26"></a><var>13.26</var>    (2) the payment by an employer of the tax imposed upon an employee under United <br/>
<a id="pl.13.27"></a><var>13.27</var>States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect <br/>
<a id="pl.13.28"></a><var>13.28</var>to compensation paid to an employee for domestic employment in a private household of <br/>
<a id="pl.13.29"></a><var>13.29</var>the employer or for agricultural employment;<br/>
<a id="pl.13.30"></a><var>13.30</var>    (3) any payment made to, or on behalf of, an employee or beneficiary (i) from or <br/>
<a id="pl.13.31"></a><var>13.31</var>to a trust described in United States Code, title 26, section 401(a) of the federal Internal <br/>
<a id="pl.13.32"></a><var>13.32</var>Revenue Code, that is exempt from tax under section 501(a) at the time of the payment <br/>
<a id="pl.13.33"></a><var>13.33</var>unless the payment is made to an employee of the trust as compensation for services as an <br/>
<a id="pl.13.34"></a><var>13.34</var>employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at <br/>
<a id="pl.13.35"></a><var>13.35</var>the time of the payment, is a plan described in section 403(a);<br/>
<a id="pl.14.1"></a><var>14.1</var>    (4) the value of any special discount or markdown allowed to an employee on goods <br/>
<a id="pl.14.2"></a><var>14.2</var>purchased from or services supplied by the employer where the purchases are optional and <br/>
<a id="pl.14.3"></a><var>14.3</var>do not constitute regular or systematic payment for services;<br/>
<a id="pl.14.4"></a><var>14.4</var>    (5) customary and reasonable directors' fees paid to individuals who are not <br/>
<a id="pl.14.5"></a><var>14.5</var>otherwise employed by the corporation of which they are directors;<br/>
<a id="pl.14.6"></a><var>14.6</var>    (6) the payment to employees for reimbursement of meal expenses when employees <br/>
<a id="pl.14.7"></a><var>14.7</var>are required to perform work after their regular hours;<br/>
<a id="pl.14.8"></a><var>14.8</var>    (7) the payment into a trust or plan for purposes of providing legal or dental services <br/>
<a id="pl.14.9"></a><var>14.9</var>if provided for all employees generally or for a class or classes of employees;<br/>
<a id="pl.14.10"></a><var>14.10</var>    (8) the value of parking facilities provided or paid for by an employer, in whole or in <br/>
<a id="pl.14.11"></a><var>14.11</var>part, if provided for all employees generally or for a class or classes of employees;<br/>
<a id="pl.14.12"></a><var>14.12</var>    (9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, <br/>
<a id="pl.14.13"></a><var>14.13</var>or other right;<br/>
<a id="pl.14.14"></a><var>14.14</var>    (10) advances or reimbursements for traveling or other bona fide ordinary and <br/>
<a id="pl.14.15"></a><var>14.15</var>necessary expenses incurred or reasonably expected to be incurred in the business of the <br/>
<a id="pl.14.16"></a><var>14.16</var>employer. Traveling and other reimbursed expenses must be identified either by making <br/>
<a id="pl.14.17"></a><var>14.17</var>separate payments or by specifically indicating the separate amounts where both wages <br/>
<a id="pl.14.18"></a><var>14.18</var>and expense allowances are combined in a single payment;<br/>
<a id="pl.14.19"></a><var>14.19</var>    (11) residual payments to radio, television, and similar artists that accrue after <br/>
<a id="pl.14.20"></a><var>14.20</var>the production of television commercials, musical jingles, spot announcements, radio <br/>
<a id="pl.14.21"></a><var>14.21</var>transcriptions, film sound tracks, and similar activities;<br/>
<a id="pl.14.22"></a><var>14.22</var>    (12) supplemental payments made to supplement unemployment benefits paid under <br/>
<a id="pl.14.23"></a><var>14.23</var>a plan established by an employer, that makes provisions for employees generally or for a <br/>
<a id="pl.14.24"></a><var>14.24</var>class or classes of employees for the supplementing of unemployment benefits under the <br/>
<a id="pl.14.25"></a><var>14.25</var>written terms of an agreement, contract, trust arrangement, or other instrument. if the plan <br/>
<a id="pl.14.26"></a><var>14.26</var>provides benefits that are only supplemental to, and does not replace or duplicate any state <br/>
<a id="pl.14.27"></a><var>14.27</var>or federal unemployment benefits. The plan must provide that funds are paid supplemental <br/>
<a id="pl.14.28"></a><var>14.28</var>payments solely for the supplementing of weekly state or federal unemployment benefits. <br/>
<a id="pl.14.29"></a><var>14.29</var>The plan must provide that any supplemental benefits are payable payments only if for <br/>
<a id="pl.14.30"></a><var>14.30</var>those weeks the applicant has applied for all been paid regular, extended, or additional <br/>
<a id="pl.14.31"></a><var>14.31</var>unemployment benefits available. The plan must provide that supplemental benefits <br/>
<a id="pl.14.32"></a><var>14.32</var>payments, when combined with the applicant's weekly unemployment benefits available <br/>
<a id="pl.14.33"></a><var>14.33</var>paid, may not exceed the applicant's regular weekly pay. The plan must not allow the <br/>
<a id="pl.14.34"></a><var>14.34</var>assignment of supplemental benefits  payments or provide for any type of additional <br/>
<a id="pl.14.35"></a><var>14.35</var>payment upon the employee's withdrawal from the plan, or quitting of employment or the <br/>
<a id="pl.14.36"></a><var>14.36</var>termination of the plan. The plan must not require any consideration from the applicant <br/>
<a id="pl.15.1"></a><var>15.1</var>and must not be designed for the purpose of avoiding the payment of Social Security <br/>
<a id="pl.15.2"></a><var>15.2</var>obligations, or unemployment taxes on money disbursed from the plan;<br/>
<a id="pl.15.3"></a><var>15.3</var>    (13) sickness or accident disability payments made by the employer after the <br/>
<a id="pl.15.4"></a><var>15.4</var>expiration of six calendar months following the last calendar month that the individual <br/>
<a id="pl.15.5"></a><var>15.5</var>worked for the employer;<br/>
<a id="pl.15.6"></a><var>15.6</var>    (14) disability payments made under the provisions of any workers' compensation <br/>
<a id="pl.15.7"></a><var>15.7</var>law;<br/>
<a id="pl.15.8"></a><var>15.8</var>    (15) sickness or accident disability payments made by a third-party payer such as <br/>
<a id="pl.15.9"></a><var>15.9</var>an insurance company; or<br/>
<a id="pl.15.10"></a><var>15.10</var>    (16) payments made into a trust fund, or for the purchase of insurance or an annuity, <br/>
<a id="pl.15.11"></a><var>15.11</var>to provide for sickness or accident disability payments to employees under a plan or <br/>
<a id="pl.15.12"></a><var>15.12</var>system established by the employer that provides for the employer's employees generally <br/>
<a id="pl.15.13"></a><var>15.13</var>or for a class or classes of employees.<br/>
<a id="pl.15.14"></a><var>15.14</var>    (b) Nothing in this subdivision excludes from the term "wages" any payment <br/>
<a id="pl.15.15"></a><var>15.15</var>made under any type of salary reduction agreement, including payments made under a <br/>
<a id="pl.15.16"></a><var>15.16</var>cash or deferred arrangement and cafeteria plan, as defined in United States Code, title <br/>
<a id="pl.15.17"></a><var>15.17</var>26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the <br/>
<a id="pl.15.18"></a><var>15.18</var>employee has the option to receive the payment in cash.<br/>
<a id="pl.15.19"></a><var>15.19</var>    (c) Wages includes payments made for services as a caretaker. Unless there is a <br/>
<a id="pl.15.20"></a><var>15.20</var>contract or other proof to the contrary, compensation is considered as being equally <br/>
<a id="pl.15.21"></a><var>15.21</var>received by a married couple where the employer makes payment to only one spouse, or <br/>
<a id="pl.15.22"></a><var>15.22</var>by all tenants of a household who perform services where two or more individuals share <br/>
<a id="pl.15.23"></a><var>15.23</var>the same dwelling and the employer makes payment to only one individual.<br/>
<a id="pl.15.24"></a><var>15.24</var>    (d) Wages includes payments made for services by a migrant family. Where services <br/>
<a id="pl.15.25"></a><var>15.25</var>are performed by a married couple or a family and an employer makes payment to only <br/>
<a id="pl.15.26"></a><var>15.26</var>one individual, each worker is considered as having received an equal share of the <br/>
<a id="pl.15.27"></a><var>15.27</var>compensation unless there is a contract or other proof to the contrary.<br/>
<a id="pl.15.28"></a><var>15.28</var>    (e) Wages includes advances or draws against future earnings, when paid, unless <br/>
<a id="pl.15.29"></a><var>15.29</var>the payments are designated as a loan or return of capital on the books of the employer <br/>
<a id="pl.15.30"></a><var>15.30</var>at the time of payment.<br/>
<a id="pl.15.31"></a><var>15.31</var>    (f) Wages includes payments made by a subchapter "S" corporation, as organized <br/>
<a id="pl.15.32"></a><var>15.32</var>under the Internal Revenue Code, to or on behalf of officers and shareholders that are <br/>
<a id="pl.15.33"></a><var>15.33</var>reasonable compensation for services performed for the corporation.<br/>
<a id="pl.15.34"></a><var>15.34</var>    For a subchapter "S" corporation, wages does not include:<br/>
<a id="pl.16.1"></a><var>16.1</var>    (1) a loan for business purposes to an officer or shareholder evidenced by a <br/>
<a id="pl.16.2"></a><var>16.2</var>promissory note signed by an officer before the payment of the loan proceeds and recorded <br/>
<a id="pl.16.3"></a><var>16.3</var>on the books and records of the corporation as a loan to an officer or shareholder;<br/>
<a id="pl.16.4"></a><var>16.4</var>    (2) a repayment of a loan or payment of interest on a loan made by an officer to the <br/>
<a id="pl.16.5"></a><var>16.5</var>corporation and recorded on the books and records of the corporation as a liability;<br/>
<a id="pl.16.6"></a><var>16.6</var>    (3) a reimbursement of reasonable corporation expenses incurred by an officer and <br/>
<a id="pl.16.7"></a><var>16.7</var>documented by a written expense voucher and recorded on the books and records of <br/>
<a id="pl.16.8"></a><var>16.8</var>the corporation as corporate expenses; and<br/>
<a id="pl.16.9"></a><var>16.9</var>    (4) a reasonable lease or rental payment to an officer who owns property that is <br/>
<a id="pl.16.10"></a><var>16.10</var>leased or rented to the corporation.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.16.11"></a><var>16.11</var>    Sec. 4. Minnesota Statutes 2010, section 268.051, subdivision 5, is amended to read:<br/>
<a id="pl.16.12"></a><var>16.12</var>    Subd. 5. <b>Tax rate for new employers.</b> (a) Each new taxpaying employer that does <br/>
<a id="pl.16.13"></a><var>16.13</var>not qualify for an experience rating under subdivision 3, except new employers in a high <br/>
<a id="pl.16.14"></a><var>16.14</var>experience rating industry, must be assigned, for a calendar year, a tax rate the higher of <br/>
<a id="pl.16.15"></a><var>16.15</var>(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing <br/>
<a id="pl.16.16"></a><var>16.16</var>the total amount of unemployment benefits paid all applicants during the 48 calendar <br/>
<a id="pl.16.17"></a><var>16.17</var>months ending on June 30 of the prior calendar year by the total taxable wages of all <br/>
<a id="pl.16.18"></a><var>16.18</var>taxpaying employers during the same period, plus the applicable base tax rate and any <br/>
<a id="pl.16.19"></a><var>16.19</var>additional assessments under subdivision 2, paragraph (c).<br/>
<a id="pl.16.20"></a><var>16.20</var>    (b) Each new taxpaying employer in a high experience rating industry that does not <br/>
<a id="pl.16.21"></a><var>16.21</var>qualify for an experience rating under subdivision 3, must be assigned, for a calendar year, <br/>
<a id="pl.16.22"></a><var>16.22</var>a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed <br/>
<a id="pl.16.23"></a><var>16.23</var>to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits <br/>
<a id="pl.16.24"></a><var>16.24</var>paid to all applicants from high experience rating industry employers during the 48 <br/>
<a id="pl.16.25"></a><var>16.25</var>calendar months ending on June 30 of the prior calendar year by the total taxable wages <br/>
<a id="pl.16.26"></a><var>16.26</var>of all high experience rating industry employers during the same period, to a maximum <br/>
<a id="pl.16.27"></a><var>16.27</var>provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any <br/>
<a id="pl.16.28"></a><var>16.28</var>additional assessments under subdivision 2, paragraph (c).<br/>
<a id="pl.16.29"></a><var>16.29</var>    (c) An employer is considered to be in a high experience rating industry if:<br/>
<a id="pl.16.30"></a><var>16.30</var>    (1) the employer is engaged in residential, commercial, or industrial construction, <br/>
<a id="pl.16.31"></a><var>16.31</var>including general contractors;<br/>
<a id="pl.16.32"></a><var>16.32</var>    (2) the employer is engaged in sand, gravel, or limestone mining;<br/>
<a id="pl.16.33"></a><var>16.33</var>    (3) the employer is engaged in the manufacturing of concrete, concrete products, <br/>
<a id="pl.16.34"></a><var>16.34</var>or asphalt; or<br/>
<a id="pl.17.1"></a><var>17.1</var>    (4) the employer is engaged in road building, repair, or resurfacing, including bridge <br/>
<a id="pl.17.2"></a><var>17.2</var>and tunnels and residential and commercial driveways and parking lots.<br/>
<a id="pl.17.3"></a><var>17.3</var>    (d) The commissioner must send to the new employer, by mail or electronic <br/>
<a id="pl.17.4"></a><var>17.4</var>transmission, notice determination of the tax rate assigned. An employer may appeal the <br/>
<a id="pl.17.5"></a><var>17.5</var>assignment determination of a tax rate in accordance with the procedures in subdivision 6, <br/>
<a id="pl.17.6"></a><var>17.6</var>paragraph (c).<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.17.7"></a><var>17.7</var>    Sec. 5. Minnesota Statutes 2010, section 268.051, subdivision 6, is amended to read:<br/>
<a id="pl.17.8"></a><var>17.8</var>    Subd. 6. <b>Notice</b><b> </b><b>Determination </b><b>of tax rate.</b> (a) On or before each December 15, <br/>
<a id="pl.17.9"></a><var>17.9</var>the commissioner must notify each employer by mail or electronic transmission of the <br/>
<a id="pl.17.10"></a><var>17.10</var>employer's tax rate, along with any additional assessments, fees, or surcharges, for the <br/>
<a id="pl.17.11"></a><var>17.11</var>following calendar year. The notice determination must contain the base tax rate and the <br/>
<a id="pl.17.12"></a><var>17.12</var>factors used in determining the employer's experience rating. Unless an appeal of the tax <br/>
<a id="pl.17.13"></a><var>17.13</var>rate is made, the computed tax rate is final, except for fraud or recomputation required <br/>
<a id="pl.17.14"></a><var>17.14</var>under subdivision 4 or 4a, and is the rate at which taxes must be paid. A recomputed tax <br/>
<a id="pl.17.15"></a><var>17.15</var>rate under subdivision 4 or 4a is the rate applicable for the quarter that includes the date of <br/>
<a id="pl.17.16"></a><var>17.16</var>acquisition and any quarter thereafter during the calendar year in which the acquisition <br/>
<a id="pl.17.17"></a><var>17.17</var>occurred. The tax rate is not subject to collateral attack by way of claim for a credit <br/>
<a id="pl.17.18"></a><var>17.18</var>adjustment or refund, or otherwise.<br/>
<a id="pl.17.19"></a><var>17.19</var>    (b) If the legislature, after the sending of the determination of tax rate, changes any <br/>
<a id="pl.17.20"></a><var>17.20</var>of the factors used to determine the rate, a new tax rate based on the new factors must be <br/>
<a id="pl.17.21"></a><var>17.21</var>computed and sent to the employer.<br/>
<a id="pl.17.22"></a><var>17.22</var>    (c) A review of an employer's tax rate may be obtained by the employer filing an <br/>
<a id="pl.17.23"></a><var>17.23</var>appeal within 20 calendar days from the date the determination of tax rate notice was sent <br/>
<a id="pl.17.24"></a><var>17.24</var>to the employer. Proceedings on the appeal are conducted in accordance with section <br/>
<statute_ref><a id="pl.17.25"></a><var>17.25</var>268.105
         </statute_ref>.<br/>
<a id="pl.17.26"></a><var>17.26</var>    (d) The commissioner may at any time upon the commissioner's own motion correct <br/>
<a id="pl.17.27"></a><var>17.27</var>any error in the employer's tax rate.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.17.28"></a><var>17.28</var>    Sec. 6. Minnesota Statutes 2010, section 268.057, subdivision 2, is amended to read:<br/>
<a id="pl.17.29"></a><var>17.29</var>    Subd. 2. <b>Priority of payments.</b> (a) Any payment received from a taxpaying <br/>
<a id="pl.17.30"></a><var>17.30</var>employer must be applied in the following order:<br/>
<a id="pl.17.31"></a><var>17.31</var>    (1) unemployment insurance taxes; then<br/>
<a id="pl.17.32"></a><var>17.32</var>    (2) special assessment for interest on any federal loan; then<br/>
<a id="pl.17.33"></a><var>17.33</var>    (3) workforce development fee assessment; then<br/>
<a id="pl.17.34"></a><var>17.34</var>    (4) interest on past due taxes; then<br/>
<a id="pl.18.1"></a><var>18.1</var>    (5) penalties, late fees, administrative service fees, and costs.<br/>
<a id="pl.18.2"></a><var>18.2</var>    (b) Paragraph (a) is the priority used for all payments received from a taxpaying <br/>
<a id="pl.18.3"></a><var>18.3</var>employer, regardless of how the employer may designate the payment to be applied, <br/>
<a id="pl.18.4"></a><var>18.4</var>except when:<br/>
<a id="pl.18.5"></a><var>18.5</var>    (1) there is an outstanding lien and the employer designates that the payment made <br/>
<a id="pl.18.6"></a><var>18.6</var>should be applied to satisfy the lien;<br/>
<a id="pl.18.7"></a><var>18.7</var>    (2) the payment is for back pay withheld from an applicant under section 
         <statute_ref>268.085, <br/>
<a id="pl.18.8"></a><var>18.8</var>subdivision 6
         </statute_ref>, paragraph (b);<br/>
<a id="pl.18.9"></a><var>18.9</var>    (3) the payment is specifically designated by the employer to be applied to an <br/>
<a id="pl.18.10"></a><var>18.10</var>outstanding overpayment of unemployment benefits of an applicant;<br/>
<a id="pl.18.11"></a><var>18.11</var>    (4) a court or administrative order directs that the payment be applied to a specific <br/>
<a id="pl.18.12"></a><var>18.12</var>obligation;<br/>
<a id="pl.18.13"></a><var>18.13</var>    (5) a preexisting payment plan provides for the application of payment; or<br/>
<a id="pl.18.14"></a><var>18.14</var>    (6) the commissioner, under the compromise authority of section 
         <statute_ref>268.067</statute_ref>, agrees to <br/>
<a id="pl.18.15"></a><var>18.15</var>apply the payment to a different priority.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.18.16"></a><var>18.16</var>    Sec. 7. Minnesota Statutes 2010, section 268.115, subdivision 1, is amended to read:<br/>
<a id="pl.18.17"></a><var>18.17</var>    Subdivision 1. <b>Definitions.</b> The terms used in this section have the following <br/>
<a id="pl.18.18"></a><var>18.18</var>meaning:<br/>
<a id="pl.18.19"></a><var>18.19</var>    (1) "Extended unemployment benefit period" means a period that lasts for a <br/>
<a id="pl.18.20"></a><var>18.20</var>minimum of 13 weeks and that:<br/>
<a id="pl.18.21"></a><var>18.21</var>    (i) Begins with the third week after there is a state "on" indicator; and<br/>
<a id="pl.18.22"></a><var>18.22</var>    (ii) Ends with the third week after there is a state "off" indicator.<br/>
<a id="pl.18.23"></a><var>18.23</var>    No extended unemployment benefit period may begin before the 14th week <br/>
<a id="pl.18.24"></a><var>18.24</var>following the end of a prior extended unemployment benefit period.<br/>
<a id="pl.18.25"></a><var>18.25</var>    (2) There is a "state 'on' indicator" for a week if:<br/>
<a id="pl.18.26"></a><var>18.26</var>    (i) for that week and the prior 12 weeks, the rate of insured unemployment:<br/>
<a id="pl.18.27"></a><var>18.27</var>    (a) equaled or exceeded 120 percent of the average of the rates for the corresponding <br/>
<a id="pl.18.28"></a><var>18.28</var>13-week period ending in each of the prior two calendar years, and was five percent or <br/>
<a id="pl.18.29"></a><var>18.29</var>more; or<br/>
<a id="pl.18.30"></a><var>18.30</var>    (b) equaled or exceeded six percent; or<br/>
<a id="pl.18.31"></a><var>18.31</var>    (ii) The United States Secretary of Labor determines that the average rate of <br/>
<a id="pl.18.32"></a><var>18.32</var>seasonally adjusted total unemployment in Minnesota for the most recent three months <br/>
<a id="pl.18.33"></a><var>18.33</var>for which data is published equals or exceeds 6.5 percent and this rate equals or exceeds <br/>
<a id="pl.18.34"></a><var>18.34</var>110 percent of the rate of the corresponding three-month period in either of the prior <br/>
<a id="pl.18.35"></a><var>18.35</var>two calendar years.<br/>
<a id="pl.19.1"></a><var>19.1</var>    (3) There is a "state 'off' indicator" for a week if:<br/>
<a id="pl.19.2"></a><var>19.2</var>    (i) under clause (2)(i), for that week and the prior 12 weeks, the requirements for a <br/>
<a id="pl.19.3"></a><var>19.3</var>"state 'on' indicator" are not satisfied; or<br/>
<a id="pl.19.4"></a><var>19.4</var>    (ii) under clause (2)(ii) the requirements for a "state 'on' indicator" are not satisfied.<br/>
<a id="pl.19.5"></a><var>19.5</var>    (4) "Rate of insured unemployment," means the percentage derived by dividing the <br/>
<a id="pl.19.6"></a><var>19.6</var>average weekly number of applicants filing continued requests for regular unemployment <br/>
<a id="pl.19.7"></a><var>19.7</var>benefits in the most recent 13-week period by the average monthly covered employment <br/>
<a id="pl.19.8"></a><var>19.8</var>for the first four of the last most recent six completed calendar quarters before the end <br/>
<a id="pl.19.9"></a><var>19.9</var>of that 13-week period.<br/>
<a id="pl.19.10"></a><var>19.10</var>    (5) "Regular unemployment benefits" means unemployment benefits available to <br/>
<a id="pl.19.11"></a><var>19.11</var>an applicant other than extended unemployment benefits and additional unemployment <br/>
<a id="pl.19.12"></a><var>19.12</var>benefits.<br/>
<a id="pl.19.13"></a><var>19.13</var>    (6) "Eligibility period" for an applicant means the period consisting of the weeks <br/>
<a id="pl.19.14"></a><var>19.14</var>remaining in the applicant's benefit year within the extended unemployment benefit period <br/>
<a id="pl.19.15"></a><var>19.15</var>and, if the benefit year ends within the extended unemployment benefit period, any weeks <br/>
<a id="pl.19.16"></a><var>19.16</var>in the extended unemployment benefit period.<br/>
<a id="pl.19.17"></a><var>19.17</var>    (7) "Exhaustee" means an applicant who, in the eligibility period:<br/>
<a id="pl.19.18"></a><var>19.18</var>    (i) the benefit year having not expired has received the maximum amount of regular <br/>
<a id="pl.19.19"></a><var>19.19</var>unemployment benefits that were available under section 
         <statute_ref>268.07</statute_ref>; or<br/>
<a id="pl.19.20"></a><var>19.20</var>    (ii) the benefit year having expired, has insufficient wage credits to establish a new <br/>
<a id="pl.19.21"></a><var>19.21</var>benefit account; and<br/>
<a id="pl.19.22"></a><var>19.22</var>has no right to any type of unemployment benefits under any other state or federal laws <br/>
<a id="pl.19.23"></a><var>19.23</var>and is not receiving unemployment benefits under the law of Canada.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.19.24"></a><var>19.24</var>    Sec. 8. Minnesota Statutes 2010, section 268.184, subdivision 1, is amended to read:<br/>
<a id="pl.19.25"></a><var>19.25</var>    Subdivision 1. <b>Administrative penalties.</b> (a) The commissioner must penalize <br/>
<a id="pl.19.26"></a><var>19.26</var>an employer if that employer or any employee, officer, or agent of that employer, is <br/>
<a id="pl.19.27"></a><var>19.27</var>in collusion with any applicant for the purpose of assisting the applicant to receive <br/>
<a id="pl.19.28"></a><var>19.28</var>unemployment benefits fraudulently. The penalty is $500 or the amount of unemployment <br/>
<a id="pl.19.29"></a><var>19.29</var>benefits determined to be overpaid, whichever is greater.<br/>
<a id="pl.19.30"></a><var>19.30</var>    (b) The commissioner must penalize an employer if that employer or any employee, <br/>
<a id="pl.19.31"></a><var>19.31</var>officer, or agent of that employer (1) made a false statement or representation knowing it <br/>
<a id="pl.19.32"></a><var>19.32</var>to be false, (2) made a false statement or representation without a good faith belief as to <br/>
<a id="pl.19.33"></a><var>19.33</var>correctness of the statement or representation, (3) knowingly failed to disclose a material <br/>
<a id="pl.19.34"></a><var>19.34</var>fact, or (4) made an offer of employment to an applicant when, in fact, the employer had <br/>
<a id="pl.19.35"></a><var>19.35</var>no employment available, but only if the employer's action:<br/>
<a id="pl.20.1"></a><var>20.1</var>     (i) was taken to prevent or reduce the payment of unemployment benefits to any <br/>
<a id="pl.20.2"></a><var>20.2</var>applicant;<br/>
<a id="pl.20.3"></a><var>20.3</var>    (ii) was taken to reduce or avoid any payment required from an employer under <br/>
<a id="pl.20.4"></a><var>20.4</var>this chapter or section 
         <statute_ref>116L.20</statute_ref>; or<br/>
<a id="pl.20.5"></a><var>20.5</var>    (iii) caused an overpayment of unemployment benefits to an applicant.<br/>
<a id="pl.20.6"></a><var>20.6</var>    The penalty is $500, or 50 percent of the overpaid or reduced unemployment benefits <br/>
<a id="pl.20.7"></a><var>20.7</var>or payment required, whichever is greater.<br/>
<a id="pl.20.8"></a><var>20.8</var>    (c) The commissioner must penalize an employer if that employer failed or refused <br/>
<a id="pl.20.9"></a><var>20.9</var>to honor a subpoena issued under section 
         <statute_ref>268.105, subdivision 4</statute_ref>, or section 
         <statute_ref>268.188</statute_ref>. The <br/>
<a id="pl.20.10"></a><var>20.10</var>penalty is $500 and any costs of enforcing the subpoena, including attorney fees.<br/>
<a id="pl.20.11"></a><var>20.11</var>    (d) Penalties under this subdivision are in addition to any other penalties and subject <br/>
<a id="pl.20.12"></a><var>20.12</var>to the same collection procedures that apply to past due taxes. Penalties must be paid <br/>
<a id="pl.20.13"></a><var>20.13</var>within 30 calendar days of assessment and credited to the contingent account.<br/>
<a id="pl.20.14"></a><var>20.14</var>    (e) The assessment determination of the penalty is final unless the employer files an <br/>
<a id="pl.20.15"></a><var>20.15</var>appeal within 20 calendar days after the sending of notice determination of the penalty to <br/>
<a id="pl.20.16"></a><var>20.16</var>the employer by mail or electronic transmission. Proceedings on the appeal are conducted <br/>
<a id="pl.20.17"></a><var>20.17</var>in accordance with section 
         <statute_ref>268.105</statute_ref>.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.20.18"></a><var>20.18</var>    Sec. 9. Minnesota Statutes 2010, section 268.184, subdivision 1a, is amended to read:<br/>
<a id="pl.20.19"></a><var>20.19</var>    Subd. 1a. <b>Notification and misreporting penalties.</b> (a) If the commissioner finds <br/>
<a id="pl.20.20"></a><var>20.20</var>that any employer or agent of an employer failed to meet the notification requirements of <br/>
<a id="pl.20.21"></a><var>20.21</var>section 
         <statute_ref>268.051, subdivision 4</statute_ref>, the employer must be assessed a penalty of $5,000 or two <br/>
<a id="pl.20.22"></a><var>20.22</var>percent of the first full quarterly payroll acquired, whichever is higher. Payroll is wages <br/>
<a id="pl.20.23"></a><var>20.23</var>paid as defined in section 
         <statute_ref>268.035, subdivision 30</statute_ref>. The penalty under this paragraph <br/>
<a id="pl.20.24"></a><var>20.24</var>must be canceled if the commissioner determines that the failure occurred because of <br/>
<a id="pl.20.25"></a><var>20.25</var>ignorance or inadvertence.<br/>
<a id="pl.20.26"></a><var>20.26</var>    (b) If the commissioner finds that any individual advised an employer to violate the <br/>
<a id="pl.20.27"></a><var>20.27</var>employer's notification requirements under section 
         <statute_ref>268.051, subdivision 4</statute_ref>, the individual, <br/>
<a id="pl.20.28"></a><var>20.28</var>and that individual's employer, must each be assessed the penalty in paragraph (a).<br/>
<a id="pl.20.29"></a><var>20.29</var>    (c) If the commissioner finds that any person or agent of a person violated the <br/>
<a id="pl.20.30"></a><var>20.30</var>reporting requirements of section 
         <statute_ref>268.0435</statute_ref> or 
         <statute_ref>268.046</statute_ref>, the person must be assessed a <br/>
<a id="pl.20.31"></a><var>20.31</var>penalty of $5,000 or two percent of the quarterly payroll reported in violation of section <br/>
<statute_ref><a id="pl.20.32"></a><var>20.32</var>268.0435
         </statute_ref> or 
         <statute_ref>268.046</statute_ref>, whichever is higher. Payroll is wages paid as defined in section <br/>
<statute_ref><a id="pl.20.33"></a><var>20.33</var>268.035, subdivision 30
         </statute_ref>.<br/>
<a id="pl.20.34"></a><var>20.34</var>    (d) Penalties under this subdivision are in addition to any other penalties and subject <br/>
<a id="pl.20.35"></a><var>20.35</var>to the same collection procedures that apply to past due amounts from an employer. <br/>
<a id="pl.21.1"></a><var>21.1</var>Penalties must be paid within 30 calendar days after sending of the notice determination <br/>
<a id="pl.21.2"></a><var>21.2</var>of penalty.<br/>
<a id="pl.21.3"></a><var>21.3</var>    (e) The assessment determination of a penalty is final unless the person assessed <br/>
<a id="pl.21.4"></a><var>21.4</var>files an appeal within 20 calendar days after sending of the notice determination of the <br/>
<a id="pl.21.5"></a><var>21.5</var>penalty by mail or electronic transmission. Proceedings on the appeal are conducted in <br/>
<a id="pl.21.6"></a><var>21.6</var>accordance with section 
         <statute_ref>268.105</statute_ref>.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.21.9"></a><var>21.9</var>    Section 1. Minnesota Statutes 2010, section 116L.17, subdivision 1, is amended to read:<br/>
<a id="pl.21.10"></a><var>21.10</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.21.11"></a><var>21.11</var>have the meanings given them in this subdivision.<br/>
<a id="pl.21.12"></a><var>21.12</var>    (b) "Commissioner" means the commissioner of employment and economic <br/>
<a id="pl.21.13"></a><var>21.13</var>development.<br/>
<a id="pl.21.14"></a><var>21.14</var>    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the <br/>
<a id="pl.21.15"></a><var>21.15</var>time employment ceased or was working in the state at the time employment ceased and:<br/>
<a id="pl.21.16"></a><var>21.16</var>    (1) has been permanently separated or has received a notice of permanent separation <br/>
<a id="pl.21.17"></a><var>21.17</var>from public or private sector employment and is eligible for or has exhausted entitlement <br/>
<a id="pl.21.18"></a><var>21.18</var>to unemployment benefits, and is unlikely to return to the previous industry or occupation;<br/>
<a id="pl.21.19"></a><var>21.19</var>    (2) has been long-term unemployed and has limited opportunities for employment <br/>
<a id="pl.21.20"></a><var>21.20</var>or reemployment in the same or a similar occupation in the area in which the individual <br/>
<a id="pl.21.21"></a><var>21.21</var>resides, including older individuals who may have substantial barriers to employment by <br/>
<a id="pl.21.22"></a><var>21.22</var>reason of age;<br/>
<a id="pl.21.23"></a><var>21.23</var>    (3) has been terminated or has received a notice of termination of employment as a <br/>
<a id="pl.21.24"></a><var>21.24</var>result of a plant closing or a substantial layoff at a plant, facility, or enterprise;<br/>
<a id="pl.21.25"></a><var>21.25</var>    (4) has been self-employed, including farmers and ranchers, and is unemployed as a <br/>
<a id="pl.21.26"></a><var>21.26</var>result of general economic conditions in the community in which the individual resides <br/>
<a id="pl.21.27"></a><var>21.27</var>or because of natural disasters;<br/>
<a id="pl.21.28"></a><var>21.28</var>    (5) has been permanently separated from employment in a restaurant, bar, or <br/>
<a id="pl.21.29"></a><var>21.29</var>lawful gambling organization from October 1, 2007, to October 1, 2009, due to the <br/>
<a id="pl.21.30"></a><var>21.30</var>implementation of any state law prohibiting smoking. This clause expires August 1, 2012;<br/>
<a id="pl.21.31"></a><var>21.31</var>    (6) is a veteran as defined by section 
         <statute_ref>197.447</statute_ref>, has been discharged or released from <br/>
<a id="pl.21.32"></a><var>21.32</var>active duty under honorable conditions within the last 36 months, and (i) is unemployed <br/>
<a id="pl.21.33"></a><var>21.33</var>or (ii) is employed in a job verified to be below the skill level and earning capacity of <br/>
<a id="pl.21.34"></a><var>21.34</var>the veteran; or<br/>
<a id="pl.22.1"></a><var>22.1</var>(7) is an individual determined by the United States Department of Labor to be <br/>
<a id="pl.22.2"></a><var>22.2</var>covered by trade adjustment assistance under United States Code, title 19, sections 2271 <br/>
<a id="pl.22.3"></a><var>22.3</var>to 2331, as amended; or<br/>
<a id="pl.22.4"></a><var>22.4</var>    (7) (8) is a displaced homemaker. A "displaced homemaker" is an individual who <br/>
<a id="pl.22.5"></a><var>22.5</var>has spent a substantial number of years in the home providing homemaking service and <br/>
<a id="pl.22.6"></a><var>22.6</var>(i) has been dependent upon the financial support of another; and now due to divorce, <br/>
<a id="pl.22.7"></a><var>22.7</var>separation, death, or disability of that person, must find employment to self support; or (ii) <br/>
<a id="pl.22.8"></a><var>22.8</var>derived the substantial share of support from public assistance on account of dependents <br/>
<a id="pl.22.9"></a><var>22.9</var>in the home and no longer receives such support.<br/>
<a id="pl.22.10"></a><var>22.10</var>    To be eligible under this clause, the support must have ceased while the worker <br/>
<a id="pl.22.11"></a><var>22.11</var>resided in Minnesota.<br/>
<a id="pl.22.12"></a><var>22.12</var>    (d) "Eligible organization" means a state or local government unit, nonprofit <br/>
<a id="pl.22.13"></a><var>22.13</var>organization, community action agency, business organization or association, or labor <br/>
<a id="pl.22.14"></a><var>22.14</var>organization.<br/>
<a id="pl.22.15"></a><var>22.15</var>    (e) "Plant closing" means the announced or actual permanent shutdown of a single <br/>
<a id="pl.22.16"></a><var>22.16</var>site of employment, or one or more facilities or operating units within a single site of <br/>
<a id="pl.22.17"></a><var>22.17</var>employment.<br/>
<a id="pl.22.18"></a><var>22.18</var>    (f) "Substantial layoff" means a permanent reduction in the workforce, which is <br/>
<a id="pl.22.19"></a><var>22.19</var>not a result of a plant closing, and which results in an employment loss at a single site <br/>
<a id="pl.22.20"></a><var>22.20</var>of employment during any 30-day period for at least 50 employees excluding those <br/>
<a id="pl.22.21"></a><var>22.21</var>employees that work less than 20 hours per week.<br/>
<a id="pl.22.22"></a><var>22.22</var><b>EFFECTIVE DATE.</b>This section is effective the Sunday following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.22.23"></a><var>22.23</var>    Sec. 2. Minnesota Statutes 2010, section 116L.561, subdivision 7, is amended to read:<br/>
<a id="pl.22.24"></a><var>22.24</var>    Subd. 7. <b>Reports.</b> Each contractor shall report to the commissioner on a quarterly <br/>
<a id="pl.22.25"></a><var>22.25</var>basis in a format to be determined by the commissioner.<br/>
<a id="pl.22.26"></a><var>22.26</var>Data collected on individuals under this subdivision are private data on individuals <br/>
<a id="pl.22.27"></a><var>22.27</var>as defined in section 
         <statute_ref>13.02, subdivision 12</statute_ref>, except that summary data may be provided <br/>
<a id="pl.22.28"></a><var>22.28</var>under section 
         <statute_ref>13.05, subdivision 7</statute_ref>.<br/>