HF 1034

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/17/2021 01:36pm

A bill for an act
relating to unemployment insurance; modifying eligibility for certain individuals;
extending an appeal window; amending Minnesota Statutes 2020, sections 268.035,
subdivision 21c; 268.085, subdivisions 2, 4a, 7; 268.101, subdivision 2; 268.133;
268.136, subdivision 1; repealing Minnesota Statutes 2020, section 268.085,
subdivisions 4, 8.

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

Section 1.

Minnesota Statutes 2020, section 268.035, subdivision 21c, is amended to read:

Subd. 21c.

Reemployment assistance training.

(a) An applicant is in "reemployment
assistance training" when:

(1) new text begin (i) new text end a reasonable opportunity for suitable employment for the applicant does not exist
in the labor market area and additional training will assist the applicant in obtaining suitable
employment;

deleted text begin (2) deleted text end new text begin (ii) new text end the curriculum, facilities, staff, and other essentials are adequate to achieve the
training objective;

deleted text begin (3) deleted text end new text begin (iii) new text end the training is vocational or short term academic training directed to an occupation
or skill that will substantially enhance the employment opportunities available to the applicant
in the applicant's labor market area;

deleted text begin (4) deleted text end new text begin (iv) new text end the training course is full time by the training provider; and

deleted text begin (5) deleted text end new text begin (v) new text end the applicant is making satisfactory progress in the training deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) the applicant can provide proof of enrollment in one or more programs offered by
an adult basic education consortium under section 124D.518. Programs may include but
are not limited to:
new text end

new text begin (i) general educational development diploma preparation;
new text end

new text begin (ii) local credit completion adult high school diploma preparation;
new text end

new text begin (iii) state competency-based adult high school diploma preparation;
new text end

new text begin (iv) basic skills enhancement training focused on math, functional literacy, reading, or
writing;
new text end

new text begin (v) computer skills training; or
new text end

new text begin (vi) English as a second language instruction;
new text end

new text begin (3) the applicant can provide proof of enrollment in an English as a second language
program taught by a licensed instructor;
new text end

new text begin (4) the applicant can provide proof of enrollment in an over-the-road truck driving
training program offered by a college or university within the Minnesota state system; or
new text end

new text begin (5) the applicant can provide proof of enrollment in a program funded under section
116L.99.
new text end

(b) Full-time training provided through the dislocated worker program, the Trade Act
of 1974, as amended, or the North American Free Trade Agreement is "reemployment
assistance training," if that training course is in accordance with the requirements of that
program.

(c) Apprenticeship training provided in order to meet the requirements of an
apprenticeship program under chapter 178 is "reemployment assistance training."

(d) An applicant is in reemployment assistance training only if the training course has
actually started or is scheduled to start within 30 calendar days.

Sec. 2.

Minnesota Statutes 2020, section 268.085, subdivision 2, is amended to read:

Subd. 2.

Not eligible.

An applicant is ineligible for unemployment benefits for any week:

(1) that occurs before the effective date of a benefit account;

(2) that the applicant, at any time during the week, has an outstanding misrepresentation
overpayment balance under section 268.18, subdivision 2, including any penalties and
interest;

deleted text begin (3) that occurs in a period when the applicant is a student in attendance at, or on vacation
from a secondary school including the period between academic years or terms;
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end that the applicant is incarcerated or performing court-ordered community service.
The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day
the applicant is incarcerated or performing court-ordered community service;

deleted text begin (5) deleted text end new text begin (4) new text end that the applicant fails or refuses to provide information on an issue of ineligibility
required under section 268.101;

deleted text begin (6) deleted text end new text begin (5) new text end that the applicant is performing services 32 hours or more, in employment, covered
employment, noncovered employment, volunteer work, or self-employment regardless of
the amount of any earnings; or

deleted text begin (7) deleted text end new text begin (6) new text end with respect to which the applicant has filed an application for unemployment
benefits under any federal law or the law of any other state. If the appropriate agency finally
determines that the applicant is not entitled to establish a benefit account under federal law
or the law of any other state, this clause does not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 268.085, subdivision 4a, is amended to read:

Subd. 4a.

Social Security disability benefits.

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

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

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

(b) If an applicant meets the requirements of paragraph (a), clause (1) new text begin or (2) new text end , there is no
deduction from the applicant's weekly benefit amount for any Social Security disability
benefits.

deleted text begin (c) If an applicant meets the requirements of paragraph (a), clause (2), there must be
deducted from the applicant's weekly unemployment benefit amount 50 percent of the
weekly equivalent of the primary Social Security disability benefits the applicant is receiving,
has received, or has filed for, with respect to that week.
deleted text end

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2021.
new text end

Sec. 4.

Minnesota Statutes 2020, section 268.085, subdivision 7, is amended to read:

Subd. 7.

School employees; between terms denial.

(a) Wage credits from employment
with an educational institution or institutions may not be used for unemployment benefit
purposes for any week during the period between two successive academic years or terms
if:

(1) the applicant had employment for an educational institution or institutions in the
prior academic year or term; and

(2) there is a reasonable assurance that the applicant will have employment for an
educational institution or institutions in the following academic year or term.

This paragraph applies to a vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period
or holiday recess. This paragraph also applies to the period between two regular but not
successive terms if there is an agreement for that schedule between the applicant and the
educational institution.

This paragraph does not apply if the subsequent employment is substantially less
favorable than the employment of the prior academic year or term, or the employment prior
to the vacation period or holiday recess.

(b) Paragraph (a) does not apply to new text begin :
new text end

new text begin (1) new text end an applicant who, at the end of the prior academic year or term, had an agreement
for a definite period of employment between academic years or terms in other than an
instructional, research, or principal administrative capacity and the educational institution
or institutions failed to provide that employment deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) an applicant in a position for which no license is required by the Professional Educator
Licensing and Standards Board or the Board of School Administrators.
new text end

(c) If unemployment benefits are denied to any applicant under paragraph (a) who was
employed in the prior academic year or term in other than an instructional, research, or
principal administrative capacity and who was not offered an opportunity to perform the
employment in the following academic year or term, the applicant is entitled to retroactive
unemployment benefits for each week during the period between academic years or terms
that the applicant filed a timely continued request for unemployment benefits, but
unemployment benefits were denied solely because of paragraph (a).

(d) This subdivision applies to employment with an educational service agency if the
applicant performed the services at an educational institution or institutions. "Educational
service agency" means a governmental entity established and operated for the purpose of
providing services to one or more educational institutions.

(e) This subdivision applies to employment with Minnesota, a political subdivision, or
a nonprofit organization, if the services are provided to or on behalf of an educational
institution or institutions.

(f) Paragraph (a) applies beginning the Sunday of the week that there is a reasonable
assurance of employment.

(g) Employment and a reasonable assurance with multiple education institutions must
be aggregated for purposes of application of this subdivision.

(h) If all of the applicant's employment with any educational institution or institutions
during the prior academic year or term consisted of on-call employment, and the applicant
has a reasonable assurance of any on-call employment with any educational institution or
institutions for the following academic year or term, it is not considered substantially less
favorable employment.

(i) A "reasonable assurance" may be written, oral, implied, or established by custom or
practice.

(j) An "educational institution" is a school, college, university, or other educational entity
operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit
organization.

(k) An "instructional, research, or principal administrative capacity" does not include
an educational assistant.

Sec. 5.

Minnesota Statutes 2020, section 268.101, subdivision 2, is amended to read:

Subd. 2.

Determination.

(a) The commissioner must determine any issue of ineligibility
raised by information required from an applicant under subdivision 1, paragraph (a) or (c),
and send to the applicant and any involved employer, by mail or electronic transmission, a
document titled a determination of eligibility or a determination of ineligibility, as is
appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge
of the applicant must state the effect on the employer under section 268.047. A determination
must be made in accordance with this paragraph even if a notified employer has not raised
the issue of ineligibility.

(b) The commissioner must determine any issue of ineligibility raised by an employer
and send to the applicant and that employer, by mail or electronic transmission, a document
titled a determination of eligibility or a determination of ineligibility as is appropriate. The
determination on an issue of ineligibility as a result of a quit or discharge of the applicant
must state the effect on the employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer before the application for unemployment
benefits;

(2) did not employ the applicant during the six calendar months before the application
for unemployment benefits; and

(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant
within ten calendar days of notification under subdivision 1, paragraph (b);

then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
weeks following the week that the issue of ineligibility as a result of a quit or discharge of
the applicant was raised by the employer.

A communication from an employer must specifically set out why the applicant should
be determined ineligible for unemployment benefits for that communication to be considered
to have raised an issue of ineligibility for purposes of this section. A statement of "protest"
or a similar term without more information does not constitute raising an issue of ineligibility
for purposes of this section.

(c) Subject to section 268.031, an issue of ineligibility is determined based upon that
information required of an applicant, any information that may be obtained from an applicant
or employer, and information from any other source.

(d) Regardless of the requirements of this subdivision, the commissioner is not required
to send to an applicant a copy of the determination where the applicant has satisfied a period
of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.

(e) The department is authorized to issue a determination on an issue of ineligibility
within 24 months from the establishment of a benefit account based upon information from
any source, even if the issue of ineligibility was not raised by the applicant or an employer.

If an applicant obtained unemployment benefits through misrepresentation under section
268.18, subdivision 2, the department is authorized to issue a determination of ineligibility
within 48 months of the establishment of the benefit account.

If the department has filed an intervention in a worker's compensation matter under
section 176.361, the department is authorized to issue a determination of ineligibility within
48 months of the establishment of the benefit account.

(f) A determination of eligibility or determination of ineligibility is final unless an appeal
is filed by the applicant or employer within deleted text begin 20 deleted text end new text begin 60 new text end calendar days after sending. The
determination must contain a prominent statement indicating the consequences of not
appealing. Proceedings on the appeal are conducted in accordance with section 268.105.

(g) An issue of ineligibility required to be determined under this section includes any
question regarding the denial or allowing of unemployment benefits under this chapter
except for issues under section 268.07. An issue of ineligibility for purposes of this section
includes any question of effect on an employer under section 268.047.

Sec. 6.

Minnesota Statutes 2020, section 268.133, is amended to read:

268.133 UNEMPLOYMENT BENEFITS WHILE IN ENTREPRENEURIAL
TRAINING.

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

(1) the deductible earnings provisions in section 268.085, subdivision 5; and

(2) the 32 hours of work limitation in section 268.085, subdivision 2, clause deleted text begin (6) deleted text end new text begin (5) new text end . A
maximum of 500 applicants may receive a waiver at any given time.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 7.

Minnesota Statutes 2020, section 268.136, subdivision 1, is amended to read:

Subdivision 1.

Shared work plan requirements.

An employer may submit a proposed
shared work plan for an employee group to the commissioner for approval in a manner and
format set by the commissioner. The proposed shared work plan must include:

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

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

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

(4) a certified statement that each participating employee was first hired by the employer
at least deleted text begin one year deleted text end new text begin three months new text end before the proposed shared work plan is submitted and is not
a seasonal, temporary, or intermittent worker;

(5) the hours of work each participating employee will work each week for the duration
of the shared work plan, which must be at least 50 percent of the normal weekly hours but
no more than 80 percent of the normal weekly hours, except that the plan may provide for
a uniform vacation shutdown of up to two weeks;

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

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

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

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

(10) a starting date beginning on a Sunday at least 15 calendar days after the date the
proposed shared work plan is submitted; and

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin CONTINUED SUSPENSION OF ONE-WEEK WAITING PERIOD.
new text end

new text begin Notwithstanding Minnesota Statutes, section 268.085, subdivision 1, the one-week
nonpayable waiting period to receive unemployment benefits is waived for applicants for
unemployment insurance benefit accounts established between December 27, 2020, and
August 28, 2021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from December 27, 2020.
new text end

Sec. 9. new text begin CONTINUED SUSPENSION OF FIVE-WEEK BUSINESS OWNER
BENEFIT LIMITATION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 268.085, subdivision 9, the five-week
limitation for receipt of unemployment benefits for business owners is suspended for
applicants for unemployment insurance benefit accounts established between December
27, 2020, and August 28, 2021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from December 27, 2020.
new text end

Sec. 10. new text begin PANDEMIC UNEMPLOYMENT ASSISTANCE TO HIGH SCHOOL
STUDENTS.
new text end

new text begin Pandemic Unemployment Assistance payments made to high school students under the
federal CARES Act, United States Code, title 15, chapter 116, and extended by the federal
Consolidated Appropriations Act, 2021, Public Law 116-260, subject to any necessary
federal approval, must not be counted as income when determining eligibility for the
programs administered by the Department of Human Services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 7, 2021.
new text end

Sec. 11. new text begin LEAVE OF ABSENCE DUE TO COVID-19.
new text end

new text begin Notwithstanding Minnesota Statutes, section 268.085, subdivision 13a, for an applicant
applying for an unemployment insurance benefit account established between December
27, 2020, and August 28, 2021, a leave of absence is presumed to be an involuntary leave
of absence and not ineligible if:
new text end

new text begin (1) a determination has been made by health authorities or by a health care professional
that the presence of the applicant in the workplace would jeopardize the health of others,
whether or not the applicant has actually contracted a communicable disease;
new text end

new text begin (2) a quarantine or isolation order has been issued to the applicant pursuant to Minnesota
Statutes, sections 144.419 to 144.4196;
new text end

new text begin (3) there is a recommendation from health authorities or from a health care professional
that the applicant should self-isolate or self-quarantine due to elevated risk from COVID-19
due to being immunocompromised;
new text end

new text begin (4) the applicant has been instructed by the applicant's employer not to come to the
employer's place of business due to an outbreak of a communicable disease; or
new text end

new text begin (5) the applicant has received a notification from a school district, day care, or other
child care provider that either (i) classes are canceled, or (ii) the applicant's ordinary child
care is unavailable, provided that the applicant made reasonable effort to obtain other child
care and requested time off or other accommodation from the employer and no reasonable
accommodation was available.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from December 27, 2020.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, section 268.085, subdivision 4, new text end new text begin is repealed January 1, 2021.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2020, section 268.085, subdivision 8, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H1034-1

268.085 ELIGIBILITY REQUIREMENTS; PAYMENTS THAT AFFECT BENEFITS.

Subd. 4.

Social Security old age insurance benefits.

(a) If all of the applicant's wage credits were earned while the applicant was claiming Social Security old age benefits, there is no deduction of the Social Security benefits from the applicant's weekly unemployment benefit amount.

(b) Unless paragraph (a) applies, 50 percent of the weekly equivalent of the primary Social Security old age benefit the applicant has received, has filed for, or intends to file for, with respect to that week must be deducted from an applicant's weekly unemployment benefit amount.

(c) Any applicant aged 62 or over is required to state when filing an application for unemployment benefits and when filing continued requests for unemployment benefits if the applicant is receiving, has filed for, or intends to file for, primary Social Security old age benefits.

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

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

Subd. 8.

Services for school contractors.

(a) Wage credits from an employer are subject to subdivision 7, if:

(1) the employment was provided under a contract between the employer and an elementary or secondary school; and

(2) the contract was for services that the elementary or secondary school could have had performed by its employees.

(b) Wage credits from an employer are not subject to subdivision 7 if:

(1) those wage credits were earned by an employee of a private employer performing work under a contract between the employer and an elementary or secondary school; and

(2) the employment was related to food services provided to the school by the employer.