HF 1116

1st Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:28pm

A bill for an act
relating to employment and economic development; making technical changes;
limiting certain liability; allowing funding for strategic investments; waiving
certain unemployment benefit requirements for dislocated workers; expanding
the authorized use of the Minnesota investment fund; modifying unemployment
insurance provisions; requiring appeals to be filed online; providing for collection
of fees; regulating continued request for unemployment benefits filings;
providing administrative penalties; defining and clarifying terms; amending
Minnesota Statutes 2008, sections 15.75, subdivision 5; 16B.54, subdivision
2; 84.94, subdivision 3; 116J.035, subdivision 6; 116J.401, subdivision 2;
116J.435, subdivisions 2, 3; 116J.68, subdivision 2; 116J.8731, subdivisions 2,
3; 116L.03, subdivision 5; 116L.05, subdivision 5; 116L.871, subdivision 1;
116L.96; 123A.08, subdivision 1; 124D.49, subdivision 3; 160.276, subdivision
8; 241.27, subdivision 1; 248.061, subdivision 3; 248.07, subdivisions 7, 8;
256J.626, subdivision 4; 256J.66, subdivision 1; 268.031; 268.035, subdivisions
2, 17, by adding subdivisions; 268.042, subdivision 3; 268.043; 268.044,
subdivision 2; 268.047, subdivisions 1, 2; 268.051, subdivisions 1, 4; 268.052,
subdivision 2; 268.053, subdivision 1; 268.057, subdivisions 4, 5; 268.0625,
subdivision 1; 268.066; 268.067; 268.069, subdivision 1; 268.07, subdivisions
1, 2, 3, 3b; 268.084; 268.085, subdivisions 1, 2, 3, 3a, 4, 5, 6, 15; 268.095,
subdivisions 1, 2, 4, 10, 11; 268.101, subdivisions 1, 2; 268.103, subdivision 1,
by adding a subdivision; 268.105, subdivisions 1, 2, 3a, 4; 268.115, subdivision
5; 268.125, subdivision 5; 268.135, subdivision 4; 268.145, subdivision 1;
268.18, subdivisions 1, 2, 4a; 268.186; 268.196, subdivisions 1, 2; 268.199;
268.211; 268A.06, subdivision 1; 469.169, subdivision 3; proposing coding for
new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes 2008,
sections 116J.402; 116J.413; 116J.58, subdivision 1; 116J.59; 116J.61; 116J.656;
116L.16; 116L.88; 116U.65; 268.085, subdivision 14; 268.086.

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

ARTICLE 1

EMPLOYMENT AND ECONOMIC DEVELOPMENT POLICY

Section 1.

Minnesota Statutes 2008, section 116J.435, subdivision 2, is amended to
read:

Subd. 2.

Definitions.

For purposes of this section:

(1) "local governmental unit" means a county, city, town, special district, new text begin public
higher education institution, new text end or other political subdivision or public corporation;

(2) "governing body" means the council, board of commissioners, board of trustees,
new text begin board of regents, new text end or other body charged with governing a local governmental unit;

(3) "public infrastructure" means publicly owned physical infrastructure in this state,
including, but not limited to, wastewater collection and treatment systems, drinking water
systems, storm sewers, utility extensions, telecommunications infrastructure, streets,
roads, bridges, parking ramps, facilities that support basic science and clinical research,
and research infrastructure; and

(4) "eligible project" means a bioscience business development capital improvement
project in this state, including: manufacturing; technology; warehousing and distribution;
research and development; bioscience business incubator; agricultural bioprocessing; or
industrial, office, or research park development that would be used by a bioscience-based
business.

Sec. 2.

Minnesota Statutes 2008, section 116J.435, subdivision 3, is amended to read:

Subd. 3.

Grant program established.

(a) The commissioner shall make
competitive grants to local governmental units to acquire and prepare land on which
public infrastructure required to support an eligible project will be located, including
demolition of structures and remediation of any hazardous conditions on the land, or to
predesign, design, acquire, construct, furnish, and equip public infrastructure required to
support an eligible project. The local governmental unit receiving a grant must provide for
the remainder of the public infrastructure costs new text begin from other sources new text end .

(b) The amount of a grant may not exceed the lesser of the cost of the public
infrastructure or 50 percent of the sum of the cost of the public infrastructure plus the cost
of the completed eligible project.

(c) The purpose of the program is to keep or enhance jobs in the area, increase the
tax base, or to expand or create new economic development through the growth of new
bioscience businesses and organizations.

Sec. 3.

Minnesota Statutes 2008, section 116J.8731, subdivision 2, is amended to read:

Subd. 2.

Administration.

The commissioner shall administer the fund as part of
the Small Cities Development Block Grant Program. Funds shall be made available to
local communities and recognized Indian tribal governments in accordance with the rules
adopted for economic development grants in the small cities community development
block grant program, except that all units of general purpose local government are
eligible applicants for Minnesota investment funds. new text begin The commissioner may also make
funds available within the department for eligible expenditures under section 116J.8731,
subdivision 3, clause (2). new text end A home rule charter or statutory city, county, or town may loan
or grant money received from repayment of funds awarded under this section to a regional
development commission, other regional entity, or statewide community capital fund as
determined by the commissioner, to capitalize or to provide the local match required for
capitalization of a regional or statewide revolving loan fund.

Sec. 4.

Minnesota Statutes 2008, section 116J.8731, subdivision 3, is amended to read:

Subd. 3.

Eligible expenditures.

The money appropriated for this section may
be used to deleted text begin provide deleted text end new text begin fund:
new text end

new text begin (1) new text end grants for infrastructure, loans, loan guarantees, interest buy-downs, and other
forms of participation with private sources of financing, provided that a loan to a private
enterprise must be for a principal amount not to exceed one-half of the cost of the project
for which financing is sought deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) strategic investments in renewable energy market development, such as low
interest loans for renewable energy equipment manufacturing, training grants to support
renewable energy workforce, development of a renewable energy supply chain that
represents and strengthens the industry throughout the state, and external marketing to
garner more national and international investment into Minnesota's renewable sector.
Expenditures in renewable energy market development are not subject to the limitations
in clause (1).
new text end

Sec. 5.

Minnesota Statutes 2008, section 248.07, subdivision 7, is amended to read:

Subd. 7.

Blind, vending stands and machines on governmental property new text begin ;
liability limited new text end .

new text begin (a) new text end Notwithstanding any other law, for the rehabilitation of blind persons
the commissioner shall have exclusive authority to establish and to operate vending
stands and vending machines in all buildings and properties owned or rented exclusively
by the Minnesota State Colleges and Universities at a state university, a community
college, a consolidated community technical college, or a technical college served by
the commissioner before January 1, 1996, or by any department or agency of the state
of Minnesota except the Department of Natural Resources properties operated directly
by the Division of State Parks and not subject to private leasing. deleted text begin The merchandise to be
dispensed by such deleted text end Vending stands and machines new text begin authorized under this subdivision new text end may
deleted text begin include deleted text end new text begin dispense new text end nonalcoholic beverages, food, candies, tobacco, souvenirs, notions and
related items deleted text begin . Such vending stands and vending machines herein authorized shall deleted text end new text begin and
must new text end be operated on the same basis as other vending stands for the blind established and
supervised by the commissioner under federal law. The commissioner shall waive this
authority to displace any present private individual concessionaire in any state-owned or
rented building or property who is operating under a contract with a specific renewal or
termination date, until the renewal or termination date. With the consent of the governing
body of a governmental subdivision of the state, the commissioner may establish and
supervise vending stands and vending machines for the blind in any building or property
exclusively owned or rented by the governmental subdivision.

new text begin (b) The Department of Employment and Economic Development is not liable
under chapter 176 for any injury sustained by a blind vendor's employee or agent. The
Department of Employment and Economic Development, its officers, and its agents are
not liable for the acts or omissions of a blind vendor or of a blind vendor's employee or
agent that may result in the blind vendor's liability to third parties. The Department of
Employment and Economic Development, its officers, and its agents are not liable for
negligence based on any theory of liability for claims arising from the relationship created
under this subdivision with the blind vendor.
new text end

Sec. 6.

Minnesota Statutes 2008, section 268A.06, subdivision 1, is amended to read:

Subdivision 1.

Application.

Any city, town, county, nonprofit corporation,
regional treatment center, or any combination thereof, may apply to the commissioner for
assistance in establishing or operating a community rehabilitation facility. Application for
assistance deleted text begin shall deleted text end new text begin must new text end be on forms prescribed by the commissioner. deleted text begin Each applicant shall
annually submit to the commissioner its plan and budget for the next fiscal year. No deleted text end new text begin An
new text end applicant deleted text begin shall be deleted text end new text begin is not new text end eligible for a grant deleted text begin hereunder deleted text end new text begin under this section new text end unless its deleted text begin plan
and budget deleted text end new text begin audited financial statements of the prior fiscal year new text end have been approved by
the commissioner.

ARTICLE 2

EMPLOYMENT AND ECONOMIC DEVELOPMENT TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2008, section 15.75, subdivision 5, is amended to read:

Subd. 5.

Agreements with Department of Employment and Economic
Development.

The commissioner of employment and economic development may
enter into agreements with regional entities established under subdivision 4 to prepare
plans to ensure coordination of the department's business development, community
development, new text begin workforce development, new text end and trade functions with programs of local units of
government and other public and private development agencies in the regions. The plans
will identify regional development priorities and serve as a guide for the implementation
of the department's programs in the regions.

Sec. 2.

Minnesota Statutes 2008, section 16B.54, subdivision 2, is amended to read:

Subd. 2.

Vehicles.

(a) The commissioner may direct an agency to make a transfer of
a passenger motor vehicle or truck currently assigned to it. The transfer must be made to
the commissioner for use in the central motor pool. The commissioner shall reimburse an
agency whose motor vehicles have been paid for with funds dedicated by the Constitution
for a special purpose and which are assigned to the central motor pool. The amount of
reimbursement for a motor vehicle is its average wholesale price as determined from the
midwest edition of the National Automobile Dealers Association official used car guide.

(b) To the extent that funds are available for the purpose, the commissioner may
purchase or otherwise acquire additional passenger motor vehicles and trucks necessary
for the central motor pool. The title to all motor vehicles assigned to or purchased or
acquired for the central motor pool is in the name of the Department of Administration.

(c) On the request of an agency, the commissioner may transfer to the central
motor pool any passenger motor vehicle or truck for the purpose of disposing of it. The
department or agency transferring the vehicle or truck must be paid for it from the motor
pool revolving account established by this section in an amount equal to two-thirds of the
average wholesale price of the vehicle or truck as determined from the midwest edition of
the National Automobile Dealers Association official used car guide.

(d) The commissioner shall provide for the uniform marking of all motor vehicles.
Motor vehicle colors must be selected from the regular color chart provided by the
manufacturer each year. The commissioner may further provide for the use of motor
vehicles without marking by:

(1) the governor;

(2) the lieutenant governor;

(3) the Division of Criminal Apprehension, the Division of Alcohol and Gambling
Enforcement, and arson investigators of the Division of Fire Marshal in the Department of
Public Safety;

(4) the Financial Institutions Division new text begin and investigative staff new text end of the Department
of Commerce;

(5) the Division of Disease Prevention and Control of the Department of Health;

(6) the State Lottery;

(7) criminal investigators of the Department of Revenue;

(8) state-owned community service facilities in the Department of Human Services;

deleted text begin (9) the investigative staff of the Department of Employment and Economic
Development;
deleted text end

deleted text begin (10) deleted text end new text begin (9) new text end the Office of the Attorney General; and

deleted text begin (11) deleted text end new text begin (10) new text end the investigative staff of the Gambling Control Board.

Sec. 3.

Minnesota Statutes 2008, section 84.94, subdivision 3, is amended to read:

Subd. 3.

Identification and classification.

The Department of Natural Resources,
with the cooperation of the state Geological Survey, deleted text begin Departments deleted text end new text begin the Department new text end of
Transportation, and deleted text begin Energy, Planning and Development deleted text end new text begin the Department of Employment
and Economic Development new text end , outside of the metropolitan area as defined in section
473.121, shall conduct a program of identification and classification of potentially valuable
publicly or privately owned aggregate lands located outside of urban or developed areas
where aggregate mining is restricted, without consideration of their present land use. The
program shall give priority to identification and classification in areas of the state where
urbanization or other factors are or may be resulting in a loss of aggregate resources to
development. Lands shall be classified as:

(1) identified resources, being those containing significant aggregate deposits;

(2) potential resources, being those containing potentially significant deposits and
meriting further evaluation; or

(3) subeconomic resources, being those containing no significant deposits.

As lands are classified, the information on the classification shall be transmitted to
each of the departments and agencies named in this subdivision, to the planning authority
of the appropriate county and municipality, and to the appropriate county engineer. The
county planning authority shall notify owners of land classified under this subdivision by
publication in a newspaper of general circulation in the county or by mail.

Sec. 4.

Minnesota Statutes 2008, section 116J.035, subdivision 6, is amended to read:

Subd. 6.

Receipt of gifts, money new text begin ; appropriation new text end .

new text begin (a) new text end The commissioner may deleted text begin
accept gifts, bequests, grants, payments for services, and other public and private money
to help finance the activities of the department. deleted text end new text begin :
new text end

new text begin (1) apply for, accept, and disburse gifts, bequests, grants, payments for services,
loans, or other property from the United States, the state, private foundations, or any
other source;
new text end

new text begin (2) enter into an agreement required for the gifts, grants, or loans; and
new text end

new text begin (3) hold, use, and dispose of its assets according to the terms of the gift, grant,
loan, or agreement.
new text end

new text begin (b) Money received by the commissioner under this subdivision must be deposited
in a separate account in the state treasury and invested by the State Board of Investment.
The amount deposited, including investment earnings, is appropriated to the commissioner
to carry out duties under this section.
new text end

Sec. 5.

Minnesota Statutes 2008, section 116J.401, subdivision 2, is amended to read:

Subd. 2.

Duties new text begin ; authorizations; limitations new text end .

new text begin (a) new text end The commissioner of employment
and economic development shall:

(1) provide regional development commissions, the Metropolitan Council, and
units of local government with information, technical assistance, training, and advice on
using federal and state programs;

(2) receive and administer the Small Cities Community Development Block Grant
Program authorized by Congress under the Housing and Community Development Act of
1974, as amended;

(3) receive and administer the section 107 technical assistance program grants
authorized by Congress under the Housing and Community Development Act of 1974, as
amended;

(4) receive, administer, and supervise other state and federal grants and grant
programs for planning, community affairs, community development purposes,
employment and training services, and other state and federal programs assigned to the
department by law or by the governor in accordance with section 4.07;

(5) receive applications for state and federal grants and grant programs for planning,
community affairs, and community development purposes, and other state and federal
programs assigned to the department by law or by the governor in accordance with section
4.07;

(6) act as the agent of, and cooperate with, the federal government in matters of
mutual concern, including the administration of any federal funds granted to the state to
aid in the performance of functions of the commissioner;

(7) provide consistent, integrated employment and training services across the state;

(8) administer the Wagner-Peyser Act, the Workforce Investment Act, and other
federal employment and training programs;

(9) establish the standards for all employment and training services administered
under this chapter and chapters 116L, 248, 268, and 268A;

(10) administer the aspects of the Minnesota family investment program, general
assistance, and food stamps that relate to employment and training services, subject to the
contract under section 116L.86, subdivision 1;

(11) obtain reports from local service units and service providers for the purpose of
evaluating the performance of employment and training services;

(12) as requested, certify employment and training services, and decertify services
that fail to comply with performance criteria according to standards established by the
commissioner;

(13) develop standards for the contents and structure of the local service unit plans
and plans for Indian tribe employment and training services, review and comment on those
plans, and approve or disapprove the plans;

(14) supervise the county boards of commissioners, local service units, and any other
units of government designated in federal or state law as responsible for employment and
training programs;

(15) establish administrative standards and payment conditions for providers of
employment and training services;

(16) enter into agreements with Indian tribes as necessary to provide employment
and training services as appropriate funds become available;

(17) cooperate with the federal government and its employment and training
agencies in any reasonable manner as necessary to qualify for federal aid for employment
and training services and money;

(18) administer and supervise all forms of unemployment insurance provided for
under federal and state laws;

(19) provide current state and substate labor market information and forecasts, in
cooperation with other agencies;

(20) require all general employment and training programs that receive state funds
to make available information about opportunities for women in nontraditional careers
in the trades and technical occupations;

(21) consult with the Rehabilitation Council for the Blind on matters pertaining to
programs and services for the blind and visually impaired;

(22) enter into agreements with other departments of the state and local units of
government as necessary; deleted text begin and
deleted text end

(23) establish and maintain administrative units necessary to perform administrative
functions common to all divisions of the department deleted text begin . deleted text end new text begin ;
new text end

new text begin (24) investigate, study, and undertake ways and means of promoting and encouraging
the prosperous development and protection of the legitimate interest and welfare of
Minnesota business, industry, and commerce, within and outside the state;
new text end

new text begin (25) locate markets for manufacturers and processors and aid merchants in locating
and contacting markets;
new text end

new text begin (26) as necessary or useful for the proper execution of the powers and duties of the
commissioner in promoting and developing Minnesota business, industry, and commerce,
both within and outside the state, investigate and study conditions affecting Minnesota
business, industry, and commerce; collect and disseminate information; and engage in
technical studies, scientific investigations, statistical research, and educational activities;
new text end

new text begin (27) plan and develop an effective business information service both for the direct
assistance of business and industry of the state and for the encouragement of business and
industry outside the state to use economic facilities within the state;
new text end

new text begin (28) compile, collect, and develop periodically, or otherwise make available,
information relating to current business conditions;
new text end

new text begin (29) conduct or encourage research designed to further new and more extensive uses
of the natural and other resources of the state and designed to develop new products
and industrial processes;
new text end

new text begin (30) study trends and developments in the industries of the state and analyze the
reasons underlying the trends;
new text end

new text begin (31) study costs and other factors affecting successful operation of businesses within
the state;
new text end

new text begin (32) make recommendations regarding circumstances promoting or hampering
business and industrial development;
new text end

new text begin (33) serve as a clearing house for business and industrial problems of the state;
new text end

new text begin (34) advise small business enterprises regarding improved methods of accounting
and bookkeeping;
new text end

new text begin (35) cooperate with interstate commissions engaged in formulating and promoting
the adoption of interstate compacts and agreements helpful to business, industry, and
commerce;
new text end

new text begin (36) cooperate with other state departments and with boards, commissions, and
other state agencies in the preparation and coordination of plans and policies for the
development of the state and for the use and conservation of its resources insofar as the
use, conservation, and development may be appropriately directed or influenced by a
state agency;
new text end

new text begin (37) in connection with state, county, and municipal public works projects, assemble
and coordinate information relative to the status, scope, cost, and employment possibilities
and availability of materials, equipment, and labor and recommend limitations on the
public works;
new text end

new text begin (38) gather current progress information with reference to public and private
works projects of the state and its political subdivisions with reference to conditions of
employment;
new text end

new text begin (39) inquire into and report to the governor, when requested by the governor, with
respect to any program of public state improvements and its financing; and request
and obtain information from other state departments or agencies as may be needed for
the report;
new text end

new text begin (40) study changes in population and current trends and prepare plans and suggest
policies for the development and conservation of the resources of the state;
new text end

new text begin (41) confer and cooperate with the executive, legislative, or planning authorities of
the United States, neighboring states and provinces, and the counties and municipalities
of neighboring states, for the purpose of bringing about a coordination between the
development of neighboring provinces, states, counties, and municipalities and the
development of this state;
new text end

new text begin (42) generally gather, compile, and make available statistical information relating to
business, trade, commerce, industry, transportation, communication, natural resources,
and other like subjects in this state, with authority to call upon other state departments for
statistical data and results obtained by them and to arrange and compile that statistical
information in a reasonable manner;
new text end

new text begin (43) publish documents and annually convene regional meetings to inform
businesses, local government units, assistance providers, and other interested persons of
changes in state and federal law related to economic development;
new text end

new text begin (44) annually convene conferences of providers of economic development-related
financial and technical assistance for the purposes of exchanging information on economic
development assistance, coordinating economic development activities, and formulating
economic development strategies;
new text end

new text begin (45) provide business with information on the economic benefits of energy
conservation and on the availability of energy conservation assistance;
new text end

new text begin (46) as part of the biennial budget process, prepare performance measures for each
business loan or grant program within the jurisdiction of the commissioner. Measures
include source of funds for each program, number of jobs proposed or promised at the
time of application and the number of jobs created, estimated number of jobs retained, the
average salary and benefits for the jobs resulting from the program, and the number of
projects approved;
new text end

new text begin (47) provide a continuous program of education for business people;
new text end

new text begin (48) publish, disseminate, and distribute information and statistics;
new text end

new text begin (49) promote and encourage the expansion and development of markets for
Minnesota products;
new text end

new text begin (50) promote and encourage the location and development of new businesses in the
state as well as the maintenance and expansion of existing businesses and for that purpose
cooperate with state and local agencies and individuals, both within and outside the state;
new text end

new text begin (51) advertise and disseminate information as to natural resources, desirable
locations, and other advantages for the purpose of attracting businesses to locate in this
state;
new text end

new text begin (52) aid the various communities in this state in attracting business to their
communities;
new text end

new text begin (53) advise and cooperate with municipal, county, regional, and other planning
agencies and planning groups within the state for the purpose of promoting coordination
between the state and localities as to plans and development in order to maintain a high
level of gainful employment in private profitable production and achieve commensurate
advancement in social and cultural welfare;
new text end

new text begin (54) coordinate the activities of statewide and local planning agencies, correlate
information secured from them and from state departments and disseminate information
and suggestions to the planning agencies;
new text end

new text begin (55) encourage and assist in the organization and functioning of local planning
agencies where none exist; and
new text end

new text begin (56) adopt measures calculated to promote public interest in and understanding of
the problems of planning and, to that end, may publish and distribute copies of any plan
or any report and may employ other means of publicity and education that will give full
effect to the provisions of sections 116J.58 to 116J.63.
new text end

new text begin (b) At the request of any governmental subdivision in paragraph (a), clause (53),
the commissioner may provide planning assistance, which includes but is not limited to
surveys, land use studies, urban renewal plans, technical services and other planning work
to any city or other municipality in the state or perform similar planning work in any
county, metropolitan, or regional area in the state. The commissioner must not perform
the planning work with respect to a metropolitan or regional area which is under the
jurisdiction for planning purposes of a county, metropolitan, regional, or joint planning
body, except at the request or with the consent of the respective county, metropolitan,
regional, or joint planning body.
new text end

new text begin (c) The commissioner is authorized to:
new text end

new text begin (1) receive and expend money from municipal, county, regional, and other planning
agencies;
new text end

new text begin (2) accept and disburse grants and other aids for planning purposes from the federal
government and from other public or private sources;
new text end

new text begin (3) utilize money received under clause (2) for the employment of consultants and
other temporary personnel to assist in the supervision or performance of planning work
supported by money other than state-appropriated money;
new text end

new text begin (4) enter into contracts with agencies of the federal government, units of local
government or combinations thereof, and with private persons that are necessary in the
performance of the planning assistance function of the commissioner; and
new text end

new text begin (5) assist any local government unit in filling out application forms for the federal
grants-in-aid.
new text end

new text begin (d) In furtherance of its planning functions, any city or town, however organized,
may expend money and contract with agencies of the federal government, appropriate
departments of state government, other local units of government, and with private
persons.
new text end

Sec. 6.

Minnesota Statutes 2008, section 116J.68, subdivision 2, is amended to read:

Subd. 2.

Duties.

The bureau shall:

deleted text begin (a) deleted text end new text begin (1) new text end provide information and assistance with respect to all aspects of business
planning and business management related to the start-up, operation, or expansion of
a small business in Minnesota;

deleted text begin (b) deleted text end new text begin (2) new text end refer persons interested in the start-up, operation, or expansion of a small
business in Minnesota to assistance programs sponsored by federal agencies, state
agencies, educational institutions, chambers of commerce, civic organizations, community
development groups, private industry associations, and other organizations deleted text begin or to the
business assistance referral system established by the Minnesota Project Outreach
Corporation deleted text end ;

deleted text begin (c) deleted text end new text begin (3) new text end plan, develop, and implement a master file of information on small business
assistance programs of federal, state, and local governments, and other public and private
organizations so as to provide comprehensive, timely information to the bureau's clients;

deleted text begin (d) deleted text end new text begin (4) new text end employ staff with adequate and appropriate skills and education and training
for the delivery of information and assistance;

deleted text begin (e) deleted text end new text begin (5) new text end seek out and utilize, to the extent practicable, contributed expertise and
services of federal, state, and local governments, educational institutions, and other public
and private organizations;

deleted text begin (f) deleted text end new text begin (6) new text end maintain a close and continued relationship with the director of the
procurement program within the Department of Administration so as to facilitate the
department's duties and responsibilities under sections 16C.16 to 16C.19 relating to the
small targeted group business and economically disadvantaged business program of the
state;

deleted text begin (g) deleted text end new text begin (7) new text end develop an information system which will enable the commissioner and other
state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
business development and growth in the state. All executive branch agencies of state
government and the secretary of state shall to the extent practicable, assist the bureau in
the development and implementation of the information system;

deleted text begin (h) deleted text end new text begin (8) new text end establish and maintain a toll free telephone number so that all small business
persons anywhere in the state can call the bureau office for assistance. An outreach
program shall be established to make the existence of the bureau well known to its
potential clientele throughout the state. If the small business person requires a referral to
another provider the bureau may use the business assistance referral system established by
the Minnesota Project Outreach Corporation;

deleted text begin (i) deleted text end new text begin (9) new text end conduct research and provide data as required by the state legislature;

deleted text begin (j) deleted text end new text begin (10) new text end develop and publish material on all aspects of the start-up, operation, or
expansion of a small business in Minnesota;

deleted text begin (k) deleted text end new text begin (11) new text end collect and disseminate information on state procurement opportunities,
including information on the procurement process;

deleted text begin (l) deleted text end new text begin (12) new text end develop a public awareness program through the use of newsletters, personal
contacts, and electronic and print news media advertising about state assistance programs
for small businesses, including those programs specifically for socially disadvantaged
small business persons;

deleted text begin (m) deleted text end new text begin (13) new text end enter into agreements with the federal government and other public and
private entities to serve as the statewide coordinator or host agency for the federal small
business development center program under United States Code, title 15, section 648; and

deleted text begin (n) deleted text end new text begin (14) new text end assist providers in the evaluation of their programs and the assessment of
their service area needs. The bureau may establish model evaluation techniques and
performance standards for providers to use.

Sec. 7.

Minnesota Statutes 2008, section 116L.03, subdivision 5, is amended to read:

Subd. 5.

Terms.

The terms of appointed members shall be for four years deleted text begin except for
the initial appointments. The initial appointments of the governor shall have the following
terms: two members each for one, two, three, and four years deleted text end . No member shall serve
more than two terms, and no person shall be appointed after December 31, 2001, for any
term that would cause that person to serve a total of more than eight years on the board.
Compensation for board members is as provided in section 15.0575, subdivision 3.

Sec. 8.

Minnesota Statutes 2008, section 116L.05, subdivision 5, is amended to read:

Subd. 5.

Use of workforce development funds.

After March 1 of any fiscal year,
the board may use workforce development funds for the purposes outlined in sections
new text begin 116L.02, new text end 116L.04 new text begin , new text end and 116L.10 to 116L.14, or to provide incumbent worker training
services under section 116L.18 if the following conditions have been met:

(1) the board examines relevant economic indicators, including the projected
number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of
declining and expanding industries, the number of initial applications for and the number
of exhaustions of unemployment benefits, job vacancy data, and any additional relevant
information brought to the board's attention;

(2) the board accounts for all allocations made in section 116L.17, subdivision 2;

(3) based on the past expenditures and projected revenue, the board estimates future
funding needs for services under section 116L.17 for the remainder of the current fiscal
year and the next fiscal year;

(4) the board determines there will be unspent funds after meeting the needs of
dislocated workers in the current fiscal year and there will be sufficient revenue to meet
the needs of dislocated workers in the next fiscal year; and

(5) the board reports its findings in clauses (1) to (4) to the chairs of legislative
committees with jurisdiction over the workforce development fund, to the commissioners
of revenue and finance, and to the public.

Sec. 9.

Minnesota Statutes 2008, section 116L.871, subdivision 1, is amended to read:

Subdivision 1.

Responsibility and certification.

(a) Unless prohibited by federal
law or otherwise determined by state law, a local service unit is responsible for the
delivery of employment and training services. deleted text begin As of July 1, 1998, deleted text end Employment and
training services may be delivered by certified employment and training service providers.

(b) The local service unit's employment and training service provider must meet the
certification standards in this subdivision if the county requests that they be certified
to deliver any of the following employment and training services and programs: wage
subsidies; general assistance grant diversion; food stamp employment and training
programs; community work experience programs; and MFIP employment services.

(c) The commissioner shall certify a local service unit's service provider to provide
these employment and training services and programs if the commissioner determines
that the provider has:

(1) past experience in direct delivery of the programs specified in paragraph (b);

(2) staff capabilities and qualifications, including adequate staff to provide timely
and effective services to clients, and proven staff experience in providing specific services
such as assessments, career planning, job development, job placement, support services,
and knowledge of community services and educational resources;

(3) demonstrated effectiveness in providing services to public assistance recipients
and other economically disadvantaged clients; and

(4) demonstrated administrative capabilities, including adequate fiscal and
accounting procedures, financial management systems, participant data systems, and
record retention procedures.

(d) When the only service provider that meets the criterion in paragraph (c), clause
(1), has been decertified, according to subdivision 1a, in that local service unit, the
following criteria shall be substituted: past experience in direct delivery of multiple,
coordinated, nonduplicative services, including outreach, assessments, identification of
client barriers, employability development plans, and provision or referral to support
services.

Sec. 10.

Minnesota Statutes 2008, section 116L.96, is amended to read:

116L.96 DISPLACED HOMEMAKER PROGRAMS.

The commissioner of deleted text begin economic security deleted text end new text begin employment and economic development new text end
may enter into arrangements with existing private or nonprofit organizations and agencies
with experience in dealing with displaced homemakers to provide counseling and
training services. The commissioner shall assist displaced homemakers in applying for
appropriate welfare programs and shall take welfare allowances received into account
in setting the stipend level. Income received as a stipend under these programs shall
be totally disregarded for purposes of determining eligibility for and the amount of a
general assistance grant.

Sec. 11.

Minnesota Statutes 2008, section 123A.08, subdivision 1, is amended to read:

Subdivision 1.

Outside sources for resources and services.

A center may accept:

(1) resources and services from postsecondary institutions serving center pupils;

(2) resources from deleted text begin Job Training Partnership Act deleted text end new text begin Workforce Investment Act of 1998,
Public Law 105-220 new text end programs, including funding for jobs skills training for various
groups and the percentage reserved for education;

(3) resources from the Department of Human Services and county welfare funding;

(4) resources from a local education and employment transitions partnership; or

(5) private resources, foundation grants, gifts, corporate contributions, and other
grants.

Sec. 12.

Minnesota Statutes 2008, section 124D.49, subdivision 3, is amended to read:

Subd. 3.

Local education and employment transitions systems.

A local education
and employment transitions partnership must assess the needs of employers, employees,
and learners, and develop a plan for implementing and achieving the objectives of a local
or regional education and employment transitions system. The plan must provide for a
comprehensive local system for assisting learners and workers in making the transition
from school to work or for retraining in a new vocational area. The objectives of a local
education and employment transitions system include:

(1) increasing the effectiveness of the educational programs and curriculum of
elementary, secondary, and postsecondary schools and the work site in preparing students
in the skills and knowledge needed to be successful in the workplace;

(2) implementing learner outcomes for students in grades kindergarten through 12
designed to introduce the world of work and to explore career opportunities, including
nontraditional career opportunities;

(3) eliminating barriers to providing effective integrated applied learning,
service-learning, or work-based curriculum;

(4) increasing opportunities to apply academic knowledge and skills, including
skills needed in the workplace, in local settings which include the school, school-based
enterprises, postsecondary institutions, the workplace, and the community;

(5) increasing applied instruction in the attitudes and skills essential for success in
the workplace, including cooperative working, leadership, problem-solving, and respect
for diversity;

(6) providing staff training for vocational guidance counselors, teachers, and other
appropriate staff in the importance of preparing learners for the transition to work, and in
methods of providing instruction that incorporate applied learning, work-based learning,
and service-learning experiences;

(7) identifying and enlisting local and regional employers who can effectively
provide work-based or service-learning opportunities, including, but not limited to,
apprenticeships, internships, and mentorships;

(8) recruiting community and workplace mentors including peers, parents, employers
and employed individuals from the community, and employers of high school students;

(9) identifying current and emerging educational, training, and employment needs of
the area or region, especially within industries with potential for job growth;

(10) improving the coordination and effectiveness of local vocational and job
training programs, including vocational education, adult basic education, tech prep,
apprenticeship, service-learning, youth entrepreneur, youth training and employment
programs administered by the commissioner of employment and economic development,
and local job training programs under the deleted text begin Job Training Partnership Act, United States
Code, title 29, section 1501, et seq. deleted text end new text begin Workforce Investment Act of 1998, Public Law
105-220 new text end ;

(11) identifying and applying for federal, state, local, and private sources of funding
for vocational or applied learning programs;

(12) providing students with current information and counseling about career
opportunities, potential employment, educational opportunities in postsecondary
institutions, workplaces, and the community, and the skills and knowledge necessary to
succeed;

(13) providing educational technology, including interactive television networks
and other distance learning methods, to ensure access to a broad variety of work-based
learning opportunities;

(14) including students with disabilities in a district's vocational or applied learning
program and ways to serve at-risk learners through collaboration with area learning
centers under sections 123A.05 to 123A.09, or other alternative programs; and

(15) providing a warranty to employers, postsecondary education programs, and
other postsecondary training programs, that learners successfully completing a high school
work-based or applied learning program will be able to apply the knowledge and work
skills included in the program outcomes or graduation requirements. The warranty shall
require education and training programs to continue to work with those learners that need
additional skill development until they can demonstrate achievement of the program
outcomes or graduation requirements.

Sec. 13.

Minnesota Statutes 2008, section 160.276, subdivision 8, is amended to read:

Subd. 8.

Revenue.

The agreement may provide that the vendor pay a portion of
the gross revenues derived from advertising. These revenues must be paid to the state for
deposit in the safety rest area account established in section 160.2745. The commissioner
of transportation and director of deleted text begin the Office of deleted text end new text begin Explore Minnesota new text end Tourism may enter into
an interagency agreement to define the distribution of the revenues generated in this
subdivision and subdivisions 2a and 3a.

Sec. 14.

Minnesota Statutes 2008, section 241.27, subdivision 1, is amended to read:

Subdivision 1.

Establishment of Minnesota correctional industries; MINNCOR
industries.

For the purpose of providing adequate, regular and suitable employment,
educational training, and to aid the inmates of state correctional facilities, the
commissioner of corrections may establish, equip, maintain and operate at any correctional
facility under the commissioner's control such industrial and commercial activities as may
be deemed necessary and suitable to the profitable employment, educational training and
development of proper work habits of the inmates of state correctional facilities. The
industrial and commercial activities authorized by this section are designated MINNCOR
industries and shall be for the primary purpose of sustaining and ensuring MINNCOR
industries' self-sufficiency, providing educational training, meaningful employment
and the teaching of proper work habits to the inmates of correctional facilities under
the control of the commissioner of corrections, and not solely as competitive business
ventures. The net profits from these activities shall be used for the benefit of the inmates
as it relates to education, self-sufficiency skills, and transition services and not to fund
non-inmate-related activities or mandates. Prior to the establishment of any industrial and
commercial activity, the commissioner of corrections may consult with representatives
of business, industry, organized labor, the state Department of Education, the state
Apprenticeship Council, the state Department of Labor and Industry, the Department of
Employment deleted text begin Security deleted text end new text begin and Economic Development new text end , the Department of Administration,
and such other persons and bodies as the commissioner may feel are qualified to determine
the quantity and nature of the goods, wares, merchandise and services to be made or
provided, and the types of processes to be used in their manufacture, processing, repair,
and production consistent with the greatest opportunity for the reform and educational
training of the inmates, and with the best interests of the state, business, industry and labor.

The commissioner of corrections shall, at all times in the conduct of any industrial
or commercial activity authorized by this section, utilize inmate labor to the greatest
extent feasible, provided, however, that the commissioner may employ all administrative,
supervisory and other skilled workers necessary to the proper instruction of the inmates
and the profitable and efficient operation of the industrial and commercial activities
authorized by this section.

Additionally, the commissioner of corrections may authorize the director of any
correctional facility under the commissioner's control to accept work projects from outside
sources for processing, fabrication or repair, provided that preference shall be given to the
performance of such work projects for state departments and agencies.

Sec. 15.

Minnesota Statutes 2008, section 248.061, subdivision 3, is amended to read:

Subd. 3.

Eligible individual.

"Eligible individual" means an individual who is
eligible for library loan services through the Library of Congress and the deleted text begin State Library for
the Blind and Physically Handicapped deleted text end new text begin Minnesota Braille and Talking Book Library new text end under
Code of Federal Regulations, title 36, section 701.10, subsection (b).

Sec. 16.

Minnesota Statutes 2008, section 248.07, subdivision 8, is amended to read:

Subd. 8.

Use of revolving fund, licenses for operation of vending deleted text begin machines deleted text end new text begin
stands new text end .

new text begin (a) new text end The revolving fund created by Laws 1947, chapter 535, section 5, is continued
as provided in this subdivision and shall be known as the revolving fund for vocational
rehabilitation of the blind. It shall be used for the purchase of equipment and supplies
for establishing and operating of vending stands by blind persons. All income, receipts,
earnings, and federal deleted text begin grants deleted text end new text begin vending machine income new text end due to the operation deleted text begin thereof deleted text end new text begin of
vending stands operated under this subdivision new text end shall also be paid into the fund. All interest
earned on money accrued in the fund must be credited to the fund by the commissioner of
finance. All equipment, supplies, and expenses for setting up these stands shall be paid
for from the fund.

new text begin (b) new text end deleted text begin Authority is hereby given to deleted text end The commissioner new text begin is authorized new text end to use the money
available in the revolving fund that originated as operational charges to individuals
licensed under this subdivision for the establishment, operation, and supervision of
vending stands by blind persons for the following purposes:

(1) purchase, upkeep and replacement of equipment;

(2) expenses incidental to the setting up of new stands and improvement of old
stands;

(3) reimbursement under section 15.059 to individual blind vending operators
for reasonable expenses incurred in attending supervisory meetings as called by the
commissioner and other expenditures for management services consistent with federal
law; and

(4) purchase of fringe benefits for blind vending operators and their employees such
as group health insurance, retirement program, vacation or sick leave assistance provided
that the purchase of any fringe benefit is approved by a majority vote of blind vending
operators licensed pursuant to this subdivision after the commissioner provides to each
blind vending operator information on all matters relevant to the fringe benefits. "Majority
vote" means a majority of blind vending operators voting. Fringe benefits shall be paid
only from assessments of operators for specific benefits, gifts to the fund for fringe benefit
purposes, and vending income which is not assignable to an individual stand.

new text begin (c) new text end Money originally deposited as merchandise and supplies repayments by
individuals licensed under this subdivision may be expended for initial and replacement
stocks of supplies and merchandise. Money originally deposited from vending income on
federal property must be spent consistent with federal law.

new text begin (d) new text end All other deposits may be used for the purchase of general liability insurance or
any other expense related to the operation and supervision of vending stands.

new text begin (e) new text end The commissioner shall issue each license for the operation of a vending stand
or vending machine for an indefinite period but may terminate any license in the manner
provided. In granting licenses for new or vacated stands preference on the basis of
seniority of experience in operating stands under the control of the commissioner shall
be given to capable operators who are deemed competent to handle the enterprise under
consideration. Application of this preference shall not prohibit the commissioner from
selecting an operator from the community in which the stand is located.

Sec. 17.

Minnesota Statutes 2008, section 256J.626, subdivision 4, is amended to read:

Subd. 4.

County and tribal biennial service agreements.

(a) Effective January 1,
2004, and each two-year period thereafter, each county and tribe must have in place an
approved biennial service agreement related to the services and programs in this chapter.
In counties with a city of the first class with a population over 300,000, the county must
consider a service agreement that includes a jointly developed plan for the delivery of
employment services with the city. Counties may collaborate to develop multicounty,
multitribal, or regional service agreements.

(b) The service agreements will be completed in a form prescribed by the
commissioner. The agreement must include:

(1) a statement of the needs of the service population and strengths and resources
in the community;

(2) numerical goals for participant outcomes measures to be accomplished during
the biennial period. The commissioner may identify outcomes from section 256J.751,
subdivision 2, as core outcomes for all counties and tribes;

(3) strategies the county or tribe will pursue to achieve the outcome targets.
Strategies must include specification of how funds under this section will be used and may
include community partnerships that will be established or strengthened;

(4) strategies the county or tribe will pursue under family stabilization services; and

(5) other items prescribed by the commissioner in consultation with counties and
tribes.

(c) The commissioner shall provide each county and tribe with information needed
to complete an agreement, including: (1) information on MFIP cases in the county or
tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome
measures; and (4) promising program practices.

(d) The service agreement must be submitted to the commissioner by October 15,
2003, and October 15 of each second year thereafter. The county or tribe must allow
a period of not less than 30 days prior to the submission of the agreement to solicit
comments from the public on the contents of the agreement.

(e) The commissioner must, within 60 days of receiving each county or tribal service
agreement, inform the county or tribe if the service agreement is approved. If the service
agreement is not approved, the commissioner must inform the county or tribe of any
revisions needed prior to approval.

deleted text begin (f) The service agreement in this subdivision supersedes the plan requirements
of section 116L.88.
deleted text end

Sec. 18.

Minnesota Statutes 2008, section 256J.66, subdivision 1, is amended to read:

Subdivision 1.

Establishing the on-the-job training program.

(a) County agencies
may develop on-the-job training programs for MFIP caregivers who are participating in
employment and training services. A county agency that chooses to provide on-the-job
training may make payments to employers for on-the-job training costs that, during the
period of the training, must not exceed 50 percent of the wages paid by the employer to
the participant. The payments are deemed to be in compensation for the extraordinary
costs associated with training participants under this section and in compensation for the
costs associated with the lower productivity of the participants during training.

(b) Provision of an on-the-job training program under the deleted text begin Job Training Partnership
Act deleted text end new text begin Workforce Investment Act of 1998, Public Law 105-220 new text end , in and of itself, does not
qualify as an on-the-job training program under this section.

(c) new text begin Employers must compensate new text end participants in on-the-job training deleted text begin shall be
compensated by the employer deleted text end at the same rates, including periodic increases, as similarly
situated employees or trainees and in accordance with applicable law, but in no event less
than the federal or applicable state minimum wage, whichever is higher.

Sec. 19.

Minnesota Statutes 2008, section 469.169, subdivision 3, is amended to read:

Subd. 3.

Evaluation of applications.

new text begin (a) new text end The commissioner shall review and
evaluate the applications submitted pursuant to subdivision 2 and shall determine whether
each area is eligible for designation as an enterprise zone. In determining whether an
area is eligible under section 469.168, subdivision 4, paragraph (a), if unemployment,
employment, income, or other necessary data are not available for the area from the
federal departments of labor or commerce or the state demographer, the commissioner
may rely upon other data submitted by the municipality if the commissioner determines it
is statistically reliable or accurate. The commissioner, together with the commissioner
of revenue, shall prepare an estimate of the amount of state tax revenue which will be
foregone for each application if the area is designated as a zone.

new text begin (b) new text end By October 1 of each year, the commissioner shall submit to the Legislative
Advisory Commission a list of the areas eligible for designation as enterprise zones,
along with recommendations for designation and supporting documentation. In making
recommendations for designation, the commissioner shall consider and evaluate the
applications pursuant to the following criteria:

(1) the pervasiveness of poverty, unemployment, and general distress in the area;

(2) the extent of chronic abandonment, deterioration, or reduction in value of
commercial, industrial, or residential structures in the area and the extent of property
tax arrearages in the area;

(3) the prospects for new investment and economic development in the area with
the tax reductions proposed in the application relative to the state and local tax revenue
which would be foregone;

(4) the competing needs of other areas of the state;

(5) the municipality's proposed use of other state and federal development funds or
programs to increase the probability of new investment and development occurring;

(6) the extent to which the projected development in the zone will provide
employment to residents of the economic hardship area, and particularly individuals who
are unemployed or who are economically disadvantaged as defined in the federal deleted text begin Job
Training Partnership Act of 1982, Volume 96, Statutes at Large, page 1322 deleted text end new text begin Workforce
Investment Act of 1998, Public Law 105-220 new text end ;

(7) the funds available pursuant to subdivision 7; and

(8) other relevant factors that the commissioner specifies in the commissioner's
recommendations.

new text begin (c) new text end The commissioner shall submit a separate list of the areas entitled to designation
as federally designated zones and border city zones along with recommendations for the
amount of funds to be allocated to each area.

Sec. 20. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 116J.58,
subdivision 2, as Minnesota Statutes, section 116J.035, subdivision 1a, and shall revise
statutory cross-references consistent with that renumbering.
new text end

Sec. 21. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 116J.402; 116J.413; 116J.58, subdivision 1;
116J.59; 116J.61; 116J.656; 116L.16; 116L.88; and 116U.65, new text end new text begin are repealed.
new text end

ARTICLE 3

UNEMPLOYMENT INSURANCE POLICY

Section 1.

Minnesota Statutes 2008, section 268.052, subdivision 2, is amended to read:

Subd. 2.

Election by state or political subdivision to be a taxpaying employer.

(a) The state or political subdivision may elect to be a taxpaying employer for any
calendar year if a notice of election is filed within 30 calendar days following January 1 of
that calendar year. Upon election, the state or political subdivision must be assigned the
new employer tax rate under section 268.051, subdivision 5, for the calendar year of the
election and new text begin unless or new text end until it qualifies for an experience rating under section 268.051,
subdivision 3.

(b) An election is for a minimum period of two calendar years following the effective
date of the election and continue unless a notice terminating the election is filed not later
than 30 calendar days before the beginning of the calendar year. The termination is
effective at the beginning of the next calendar year. deleted text begin Upon election, the commissioner shall
establish a reimbursable account for the state or political subdivision. A termination of
election is allowed only if the state or political subdivision has, since the beginning of the
experience rating period under section 268.051, subdivision 3, paid taxes equal to or more
than 125 percent of the unemployment benefits used in computing the experience rating. In
addition, any unemployment benefits paid after the experience rating period are transferred
to the new reimbursable account of the state or political subdivision. If the amount of taxes
paid since the beginning of the experience rating period exceeds 125 percent of the amount
of unemployment benefits paid during the experience rating period, that amount in excess
is applied against any unemployment benefits paid after the experience rating period.
deleted text end

(c) The method of payments to the trust fund under subdivisions 3 and 4 applies to
all taxes paid by or due from the state or political subdivision that elects to be taxpaying
employers under this subdivision.

(d) A notice of election or a notice terminating election must be filed by electronic
transmission in a format prescribed by the commissioner.

Sec. 2.

Minnesota Statutes 2008, section 268.053, subdivision 1, is amended to read:

Subdivision 1.

Election.

(a) Any nonprofit organization that has employees in
covered employment must pay taxes on a quarterly basis in accordance with section
268.051 unless it elects to make reimbursements to the trust fund the amount of
unemployment benefits charged to its reimbursable account under section 268.047.

The organization may elect to make reimbursements for a period of not less than
two calendar years beginning with the date that the organization was determined to be an
employer with covered employment by filing a notice of election not later than 30 calendar
days after the date of the determination.

(b) Any nonprofit organization that makes an election will continue to be liable for
reimbursements until it files a notice terminating its election not later than 30 calendar
days before the beginning of the calendar year the termination is to be effective.

(c) A nonprofit organization that has been making reimbursements that files a notice
of termination of election must be assigned the new employer tax rate under section
268.051, subdivision 5, for the calendar year of the termination of election and new text begin unless or
new text end until it qualifies for an experience rating under section 268.051, subdivision 3.

(d) Any nonprofit organization that has been paying taxes may elect to make
reimbursements by filing no less than 30 calendar days before January 1 of any calendar
year a notice of election. deleted text begin Upon election, the commissioner shall establish a reimbursable
account for the nonprofit organization. An election is allowed only if the nonprofit
organization has, since the beginning of the experience rating period under section
268.051, subdivision 3, paid taxes equal to or more than 125 percent of the unemployment
benefits used in computing the experience rating. In addition, any unemployment benefits
paid after the experience rating period are transferred to the new reimbursable account
of the nonprofit organization. If the amount of taxes paid since the beginning of the
experience rating period exceeds 125 percent of the amount of unemployment benefits
paid during the experience rating period, that amount in excess is applied against any
unemployment benefits paid after the experience rating period. deleted text end The election is not
terminable by the organization for that and the next calendar year.

(e) The commissioner may for good cause extend the period that a notice of election,
or a notice of termination, must be filed and may permit an election to be retroactive.

(f) A notice of election or notice terminating election must be filed by electronic
transmission in a format prescribed by the commissioner.

Sec. 3.

Minnesota Statutes 2008, section 268.066, is amended to read:

268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.

(a) The commissioner deleted text begin shall deleted text end new text begin must new text end cancel as uncollectible any amounts due from
an employer under this chapter or section 116L.20, that remain unpaid six years after
the amounts have been first determined due, except where the delinquent amounts are
secured by a notice of lien, a judgment, are in the process of garnishment, or are under a
payment plan.

(b) The commissioner may cancel at any time as uncollectible any amount due, or
any portion of an amount due, from an employer under this chapter or section 116L.20,
that (1) are uncollectible due to death or bankruptcy, new text begin or new text end (2) the Collection Division of the
Department of Revenue under section 16D.04 was unable to collect deleted text begin , or (3) deleted text end new text begin . new text end

new text begin (c) new text end The commissioner new text begin may cancel at any time any interest, penalties, or fees due
from an employer, or any portions due, if the commissioner new text end determines that it is not in
the public interest to pursue collection of the amount due. new text begin This paragraph does not apply
to unemployment insurance taxes or reimbursements due.
new text end

Sec. 4.

Minnesota Statutes 2008, section 268.067, is amended to read:

268.067 COMPROMISE.

(a) The commissioner may compromise in whole or in part any action, determination,
or decision that affects only an employer and not an applicant deleted text begin , and that has occurred
during the prior 24 months deleted text end . This paragraph deleted text begin may apply deleted text end new text begin applies new text end if it is determined by a court
of law, or a confession of judgment, that an applicant, while employed, wrongfully took
from the employer $500 or more in money or property.

(b) The commissioner may at any time compromise any deleted text begin amount deleted text end new text begin unemployment
insurance tax or reimbursement new text end due from an employer under this chapter or section
116L.20.

(c) deleted text begin Any compromise involving an amount over $2,500 must be authorized by an
attorney licensed to practice law in Minnesota who is an employee of the department
designated by the commissioner for that purpose.
deleted text end

deleted text begin (d) deleted text end Any compromise must be in the best interest of the state of Minnesota.

Sec. 5.

Minnesota Statutes 2008, section 268.07, subdivision 3b, is amended to read:

Subd. 3b.

Limitations on applications and benefit accounts.

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

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

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

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

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

deleted text begin (2) the applicant has not served the nonpayable waiting week under section 268.085,
subdivision 1, clause (5).
deleted text end

A determination or amended determination new text begin of eligibility or ineligibility issued new text end under
section 268.101, that was deleted text begin issued deleted text end new text begin sent new text end before the withdrawal of the benefit account, remains
in effect and is not voided by the withdrawal of the benefit account. A determination of
ineligibility requiring subsequent earnings to satisfy the period of ineligibility under
section 268.095, subdivision 10, applies to the weekly unemployment benefit amount on
the new benefit account.

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

Sec. 6.

Minnesota Statutes 2008, section 268.085, subdivision 3, is amended to read:

Subd. 3.

Payments that delay unemployment benefits.

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

(1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
does not apply to (i) vacation pay paid upon a permanent separation from employment, or
(ii) vacation pay paid from a vacation fund administered by a union or a third party not
under the control of the employer;

(2) severance pay, bonus pay, sick pay, and any other payments, except earnings
under subdivision 5, and back pay under subdivision 6, paid by an employer because of,
upon, or after separation from employment, but only if the payment is considered wages at
the time of payment under section 268.035, subdivision 29; or

(3) pension, retirement, or annuity payments from any plan contributed to by a base
period employer including the United States government, except Social Security benefits
that are provided for in subdivision 4. The base period employer is considered to have
contributed to the plan if the contribution is excluded from the definition of wages under
section 268.035, subdivision 29, clause (1).

new text begin If the pension, retirement, or annuity payment is paid in a lump sum, new text end an applicant is
not considered to have received deleted text begin the lump-sum deleted text end new text begin a new text end payment if new text begin (i) new text end the applicant immediately
deposits that payment in a qualified pension plan or account new text begin , or (ii) that payment is an
early distribution for which the applicant paid an early distribution penalty under the
Internal Revenue Code, United States Code, title 26, section 72(t)(1) new text end .

(b) This subdivision applies to all the weeks of payment. Payments under paragraph
(a), clauses (1) and (2), are applied to the period immediately following the last day of
employment. The number of weeks of payment is determined as follows:

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

(2) if the payment is made in a lump sum, that sum is divided by the applicant's last
level of regular weekly pay from the employer.

(c) If the payment is less than the applicant's weekly unemployment benefit amount,
unemployment benefits are reduced by the amount of the payment. deleted text begin If the computation
of reduced unemployment benefits is not a whole dollar, it is rounded down to the next
lower whole dollar.
deleted text end

Sec. 7.

Minnesota Statutes 2008, section 268.085, subdivision 6, is amended to read:

Subd. 6.

Receipt of back pay.

(a) Back pay received by an applicant new text begin within 24
months of the establishment of the benefit account new text end with respect to any week occurring
deleted text begin in the 104 weeks before the payment of the back pay deleted text end new text begin during the benefit year new text end must be
deducted from unemployment benefits paid for that week.

If the back pay is not paid with respect to a specific period, the back pay must be
applied to the period immediately following the last day of employment.

(b) If the back pay is reduced by the amount of unemployment benefits that have
been paid, the amount of back pay withheld must be:

(1) paid by the employer to the trust fund within 30 calendar days and subject to the
same collection procedures that apply to past due taxes;

(2) applied to unemployment benefit overpayments resulting from the payment of
the back pay; and

(3) credited to the maximum amount of unemployment benefits available to the
applicant in a benefit year that includes the weeks for which back pay was deducted.

(c) Unemployment benefits paid the applicant must be removed from the
computation of the tax rate for taxpaying employers and removed from the reimbursable
account for nonprofit and government employers that have elected to be liable for
reimbursements in the calendar quarter the trust fund receives payment.

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

Sec. 8.

Minnesota Statutes 2008, section 268.085, subdivision 15, is amended to read:

Subd. 15.

Available for suitable employment defined.

(a) "Available for suitable
employment" means an applicant is ready and willing to accept suitable employment deleted text begin in
the labor market area deleted text end . The attachment to the work force must be genuine. An applicant
may restrict availability to suitable employment, but there must be no other restrictions,
either self-imposed or created by circumstances, temporary or permanent, that prevent
accepting suitable employment.

(b) To be considered "available for suitable employment," a student must be willing
to quit school to accept suitable employment.

(c) An applicant who is absent from the labor market area for personal reasons, other
than to search for work, is not "available for suitable employment."

(d) An applicant who has restrictions on the hours of the day or days of the week
that the applicant can or will work, that are not normal for the applicant's usual occupation
or other suitable employment, is not "available for suitable employment." An applicant
must be available for daytime employment, if suitable employment is performed during
the daytime, even though the applicant previously worked the night shift.

deleted text begin (e) An applicant must have transportation throughout the labor market area to be
considered "available for suitable employment."
deleted text end

Sec. 9.

Minnesota Statutes 2008, section 268.095, subdivision 1, is amended to read:

Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all
unemployment benefits according to subdivision 10 except when new text begin a preponderance of the
available evidence shows new text end :

(1) the applicant quit the employment because of a good reason caused by the
employer as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that
provided substantially better terms and conditions of employment, but the applicant did
not work long enough at the second employment to have sufficient subsequent earnings to
satisfy the period of ineligibility that would otherwise be imposed under subdivision 10
for quitting the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the
employment because the employment was unsuitable for the applicant;

(4) the employment was unsuitable for the applicant and the applicant quit to enter
reemployment assistance training;

(5) the employment was part time and the applicant also had full-time employment
in the base period, from which full-time employment the applicant separated because of
reasons for which the applicant was held not to be ineligible, and the wage credits from
the full-time employment are sufficient to meet the minimum requirements to establish a
benefit account under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant
was going to be laid off because of lack of work within 30 calendar days. An applicant
who quit employment within 30 calendar days of a notified date of layoff because of lack
of work is ineligible for unemployment benefits through the end of the week that includes
the scheduled date of layoff;

(7) the applicant quit the employment because the applicant's serious illness or
injury made it medically necessary that the applicant quit, provided that the applicant
inform the employer of the serious illness or injury and request accommodation and no
reasonable accommodation is made available.

If the applicant's serious illness is chemical dependency, this exception does not
apply if the applicant was previously diagnosed as chemically dependent or had treatment
for chemical dependency, and since that diagnosis or treatment has failed to make
consistent efforts to control the chemical dependency.

This exception raises an issue of the applicant's being deleted text begin able to work deleted text end new text begin available for
suitable employment new text end under section 268.085, subdivision 1, that the commissioner deleted text begin shall deleted text end new text begin
must new text end determine;

(8) the applicant's loss of child care for the applicant's minor child caused the
applicant to quit the employment, provided the applicant made reasonable effort to obtain
other child care and requested time off or other accommodation from the employer and no
reasonable accommodation is available.

This exception raises an issue of the applicant's deleted text begin availability deleted text end new text begin being available new text end for
suitable employment under section 268.085, subdivision 1, that the commissioner deleted text begin shall deleted text end new text begin
must new text end determine; or

(9) domestic abuse of the applicant or the applicant's minor child, necessitated the
applicant's quitting the employment. Domestic abuse must be shown by one or more of
the following:

(i) a district court order for protection or other documentation of equitable relief
issued by a court;

(ii) a police record documenting the domestic abuse;

(iii) documentation that the perpetrator of the domestic abuse has been convicted
of the offense of domestic abuse;

(iv) medical documentation of domestic abuse; or

(v) written statement that the applicant or the applicant's minor child is a victim
of domestic abuse, provided by a social worker, member of the clergy, shelter worker,
attorney at law, or other professional who has assisted the applicant in dealing with the
domestic abuse.

Domestic abuse for purposes of this clause is defined under section 518B.01.

Sec. 10.

Minnesota Statutes 2008, section 268.095, subdivision 2, is amended to read:

Subd. 2.

Quit defined.

(a) A quit from employment occurs when the decision to end
the employment was, at the time the employment ended, the employee's.

(b) An employee who has been notified that the employee will be discharged in the
future, who chooses to end the employment while employment in any capacity is still
available, is considered to have quit the employment.

(c) An employee who seeks to withdraw a previously submitted notice of quitting is
considered to have quit the employment if the employer does not agree that the notice
may be withdrawn.

(d) An applicant who, within five calendar days after completion of a suitable
temporary job assignment from a staffing service employer, (1) fails without good cause
to affirmatively request an additional job assignment, deleted text begin or deleted text end (2) refuses without good cause
an additional suitable job assignment offered, new text begin or (3) accepts employment with the client
of the staffing service, new text end is considered to have quit employment new text begin with the staffing service.
Accepting employment with the client of the staffing service meets the requirements of the
exception to ineligibility under subdivision 1, clause (2) new text end .

This paragraph applies only if, at the time of beginning of employment with the
staffing service employer, the applicant signed and was provided a copy of a separate
document written in clear and concise language that informed the applicant of this
paragraph and that unemployment benefits may be affected.

For purposes of this paragraph, "good cause" is a reason that is significant and
would compel an average, reasonable worker, who would otherwise want an additional
temporary job assignment with the staffing service employer, (1) to fail to contact the
staffing service employer, or (2) to refuse an offered assignment.

For purposes of this paragraph, a "staffing service employer" is an employer whose
business involves employing individuals directly for the purpose of furnishing temporary
job assignment workers to clients of the staffing service.

Sec. 11.

Minnesota Statutes 2008, section 268.103, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Employer-agent appeals filed online. new text end

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

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

Sec. 12.

Minnesota Statutes 2008, section 268.18, subdivision 4a, is amended to read:

Subd. 4a.

Court fees new text begin ; collection fees new text end .

(a) If the commissioner is required to pay any
court fees in an attempt to enforce collection of overpaid unemployment benefits, penalties,
or interest, the commissioner may add the amount of the court fees to the total amount due.

(b) If an applicant who has been determined overpaid unemployment benefits
because of fraud seeks to have any portion of the debt discharged under the federal
bankruptcy code, and the commissioner files an objection in bankruptcy court to the
discharge, the commissioner may add the commissioner's cost of any court fees to the debt
if the bankruptcy court does not discharge the debt.

new text begin (c) If the Internal Revenue Service assesses the commissioner a fee for offsetting
from a federal tax refund the amount of any fraud overpayment, including penalties and
interest, the amount of the fee may be added to the total amount due. The offset amount
must be put in the trust fund and that amount credited to the total amount due from the
applicant.
new text end

Sec. 13.

Minnesota Statutes 2008, section 268.186, is amended to read:

268.186 RECORDS; AUDITS.

(a) Each employer must keep true and accurate records for the periods of time and
containing the information the commissioner may require by rule. For the purpose of
administering this chapter, the commissioner has the power to audit, examine, or cause to
be supplied or copied, any books, correspondence, papers, records, or memoranda that
are relevant, whether the books, correspondence, papers, records, or memoranda are the
property of or in the possession of the employer or any other person at any reasonable
time and as often as may be necessary.

(b) Any employer that refuses to allow an audit of its records by the department, or
that fails to make all necessary records available for audit in Minnesota upon request of
the commissioner, may be assessed an administrative penalty of $500. new text begin An employer that
fails to provide a weekly breakdown of money earned by an applicant upon request of the
commissioner, information necessary for the detection of applicant fraud under section
268.18, subdivision 2, may be assessed an administrative penalty of $100. Any notice
requesting a weekly breakdown must clearly state that a $100 penalty may be assessed for
failure to provide the information. new text end The penalty collected is credited to the deleted text begin administration
account to be used by the commissioner to ensure integrity in the administration of the
unemployment insurance program deleted text end new text begin trust fund new text end .

(c) The commissioner may make summaries, compilations, photographs,
duplications, or reproductions of any records, or reports that the commissioner considers
advisable for the preservation of the information contained therein. Any summaries,
compilations, photographs, duplications, or reproductions is admissible in any proceeding
under this chapter. The commissioner may duplicate records, reports, summaries,
compilations, instructions, determinations, or any other written or recorded matter
pertaining to the administration of this chapter.

(d) Regardless of any law to the contrary, the commissioner may provide for the
destruction of any records, reports, or reproductions, or other papers that are no longer
necessary for the administration of this chapter, including any required audit. In addition,
the commissioner may provide for the destruction or disposition of any record, report,
or other paper from which the information has been electronically captured and stored,
or that has been photographed, duplicated, or reproduced.

Sec. 14. new text begin ENTREPRENEURSHIP FOR DISLOCATED WORKERS.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Minnesota has been awarded a federal grant by the
United States Department of Labor under the Project GATE (Growing America Through
Entrepreneurship) program to assist certain dislocated workers in starting a business.
Providing unemployment benefits while the dislocated worker is receiving services such
as entrepreneurial training, business counseling, and technical assistance will assist in the
success of this pilot project. In order to provide unemployment benefits, the commissioner
of employment and economic development is authorized to waive the availability for
suitable employment requirements of Minnesota Statutes, section 268.085, subdivision 1,
as well as the earnings deductibility provisions of Minnesota Statutes, section 268.085,
subdivision 5, for individuals enrolled in this pilot project.
new text end

new text begin Subd. 2. new text end

new text begin Limitations. new text end

new text begin A maximum of 500 applicants for unemployment benefits are
authorized to receive a waiver.
new text end

new text begin Subd. 3. new text end

new text begin Expiration date. new text end

new text begin The authorization under subdivision 1 expires June
30, 2012.
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5, 7 to 10, 12, and 13 are effective August 2, 2009, and apply to all
department determinations and unemployment law judge decisions issued on or after that
date. Section 11 is effective April 1, 2010, and applies to all department determinations
and unemployment law judge decisions issued on or after that date. Sections 6 and 14 are
effective the day following final enactment.
new text end

ARTICLE 4

UNEMPLOYMENT INSURANCE TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2008, section 268.031, is amended to read:

268.031 STANDARD OF PROOF.

All issues of fact under the Minnesota Unemployment Insurance Law are determined
by a preponderance of the evidence. deleted text begin Preponderance of the evidence means evidence in
substantiation of a fact that, when weighed against the evidence opposing the fact, is more
convincing and has a greater probability of truth.
deleted text end

Sec. 2.

new text begin [268.034] COMPUTATIONS OF MONEY ROUNDED DOWN.
new text end

new text begin Computations of money required under this chapter that do not result in a whole
dollar are rounded down to the next lower whole dollar, unless specifically provided
otherwise by law.
new text end

Sec. 3.

Minnesota Statutes 2008, section 268.035, subdivision 2, is amended to read:

Subd. 2.

Agricultural employment.

"Agricultural employment" means services:

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

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

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

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

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

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

Sec. 4.

Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
to read:

new text begin Subd. 9a. new text end

new text begin Construction; independent contractor. new text end

new text begin For purposes of this chapter,
section 181.723 determines whether a worker is an independent contractor or an employee
when performing public or private sector commercial or residential building construction
or improvement services.
new text end

Sec. 5.

Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
to read:

new text begin Subd. 12c. new text end

new text begin Determination. new text end

new text begin "Determination" means a document sent to an applicant
or employer by mail or electronic transmission that is an initial department ruling on a
specific issue. All documents that are determinations under this chapter use that term in
the title of the document and are appealable to an unemployment law judge under section
268.105, subdivision 1.
new text end

Sec. 6.

Minnesota Statutes 2008, section 268.035, subdivision 17, is amended to read:

Subd. 17.

Filing; filed.

"Filing" or "filed" means the new text begin personal new text end delivery of deleted text begin any
document deleted text end new text begin an application, appeal, or other required action new text end to the commissioner or any of
the commissioner's agents, or deleted text begin the depositing of the document deleted text end new text begin if done by mail, deposited
new text end in the United States mail properly addressed to the department with postage prepaid, in
which case deleted text begin the document deleted text end new text begin it new text end is considered filed on the day indicated by the cancellation
mark of the United States Postal Service.

If deleted text begin , where allowed, deleted text end an application, appeal, or other required action is made by
electronic transmission, it is considered filed on the day received by the department.

Sec. 7.

Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
to read:

new text begin Subd. 20a. new text end

new text begin Preponderance of the evidence. new text end

new text begin "Preponderance of the evidence"
means evidence in substantiation of a fact that, when weighed against the evidence
opposing the fact, is more convincing and has a greater probability of truth.
new text end

Sec. 8.

Minnesota Statutes 2008, section 268.042, subdivision 3, is amended to read:

Subd. 3.

Election to have noncovered employment considered covered
employment.

(a) Any employer that has employment performed for it that is noncovered
employment under section 268.035, subdivision 20, may file with the commissioner, by
electronic transmission in a format prescribed by the commissioner, an election that all
new text begin employees in that class of new text end employment, in one or more distinct establishments or places
of business, is considered covered employment for not less than two calendar years.
The commissioner has discretion on the approval of any election. Upon the approval of
the commissioner, sent by mail or electronic transmission, the employment constitutes
covered employment beginning the calendar quarter after the date of approval or
beginning a later calendar quarter if requested by the employer. The employment ceases to
be considered covered employment as of the first day of January of any calendar year only
if at least 30 calendar days before the first day of January the employer has filed with the
commissioner, by electronic transmission in a format prescribed by the commissioner, a
notice to that effect.

(b) The commissioner must terminate any election agreement under this subdivision
upon 30 calendar days' notice sent by mail or electronic transmission, if the employer is
delinquent on any taxes due or reimbursements due the trust fund.

Sec. 9.

Minnesota Statutes 2008, section 268.043, is amended to read:

268.043 DETERMINATIONS OF COVERAGE.

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

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

Sec. 10.

Minnesota Statutes 2008, section 268.044, subdivision 2, is amended to read:

Subd. 2.

Failure to timely file report; late fees.

(a) Any employer that fails to
submit the quarterly wage detail report when due must pay a late fee of $10 per employee,
computed based upon the highest of:

(1) the number of employees reported on the last wage detail report submitted;

(2) the number of employees reported in the corresponding quarter of the prior
calendar year; or

(3) if no wage detail report has ever been submitted, the number of employees
listed at the time of employer registration.

The late fee is deleted text begin waived deleted text end new text begin canceled new text end if the wage detail report is received within 30
calendar days after a demand for the report is sent to the employer by mail or electronic
transmission. A late fee assessed an employer may not be deleted text begin waived deleted text end new text begin canceled new text end more than
twice each 12 months. The amount of the late fee assessed may not be less than $250.

(b) If the wage detail report is not received in a manner and format prescribed by the
commissioner within 30 calendar days after demand is sent under paragraph (a), the late
fee assessed under paragraph (a) doubles and a renewed demand notice and notice of the
increased late fee will be sent to the employer by mail or electronic transmission.

(c) Late fees due under this subdivision may be deleted text begin compromised deleted text end new text begin canceled, in whole or
in part, new text end under section deleted text begin 268.067 deleted text end new text begin 268.066 new text end where good cause for late submission is found by
the commissioner.

Sec. 11.

Minnesota Statutes 2008, section 268.047, subdivision 1, is amended to read:

Subdivision 1.

General rule.

Unemployment benefits paid to an applicant,
including extended and shared work benefits, will be used in computing the future
tax rate of a taxpaying base period employer or charged to the reimbursable account
of a base period nonprofit or government employer that has elected to be liable for
reimbursements except as provided in subdivisions 2 and 3. The amount of unemployment
benefits used in computing the future tax rate of taxpaying employers or charged to the
reimbursable account of a nonprofit or government employer that has elected to be liable
for reimbursements is the same percentage of the total amount of unemployment benefits
paid as the percentage of wage credits from the employer is of the total amount of wage
credits from all the applicant's base period employers.

deleted text begin In making computations under this subdivision, the amount of wage credits, if not a
whole dollar, must be computed to the nearest whole dollar.
deleted text end

Sec. 12.

Minnesota Statutes 2008, section 268.047, subdivision 2, is amended to read:

Subd. 2.

Exceptions for all employers.

Unemployment benefits paid will not be
used in computing the future tax rate of a taxpaying base period employer or charged to
the reimbursable account of a base period nonprofit or government employer that has
elected to be liable for reimbursements when:

(1) the applicant was discharged from the employment because of aggravated
employment misconduct as determined under section 268.095. This exception applies
only to unemployment benefits paid for periods after the applicant's discharge from
employment;

(2) an applicant's discharge from that employment occurred because a law required
removal of the applicant from the position the applicant held;

deleted text begin (3) the employer is in the tourist or recreation industry and is in active operation of
business less than 15 calendar weeks each year and the applicant's wage credits from the
employer are less than 600 times the applicable state or federal minimum wage;
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end the employer provided regularly scheduled part-time employment to the
applicant during the applicant's base period and continues to provide the applicant with
regularly scheduled part-time employment during the benefit year of at least 90 percent
of the part-time employment provided in the base period, and is an involved employer
because of the applicant's loss of other employment. This exception terminates effective
the first week that the employer fails to meet the benefit year employment requirements.
This exception applies to educational institutions without consideration of the period
between academic years or terms;

deleted text begin (5) deleted text end new text begin (4) new text end the employer is a fire department or firefighting corporation or operator
of a life-support transportation service, and continues to provide employment for the
applicant as a volunteer firefighter or a volunteer ambulance service personnel during the
benefit year on the same basis that employment was provided in the base period. This
exception terminates effective the first week that the employer fails to meet the benefit
year employment requirements;

deleted text begin (6) deleted text end new text begin (5) new text end the applicant's unemployment from this employer was a direct result of
the condemnation of property by a governmental agency, a fire, flood, or act of nature,
where 25 percent or more of the employees employed at the affected location, including
the applicant, became unemployed as a result. This exception does not apply where the
unemployment was a direct result of the intentional act of the employer or a person acting
on behalf of the employer;

deleted text begin (7) deleted text end new text begin (6) new text end the unemployment benefits were paid by another state as a result of the
transferring of wage credits under a combined wage arrangement provided for in section
268.131;

deleted text begin (8) deleted text end new text begin (7) new text end the applicant stopped working because of a labor dispute at the applicant's
primary place of employment if the employer was not a party to the labor dispute;

deleted text begin (9) deleted text end new text begin (8) new text end the unemployment benefits were determined overpaid unemployment benefits
under section 268.18;

deleted text begin (10) deleted text end new text begin (9) new text end the applicant was employed as a replacement worker, for a period of six
months or longer, for an employee who is in the military reserve and was called for active
duty during the time the applicant worked as a replacement, and the applicant was laid off
because the employee returned to employment after active duty; or

deleted text begin (11) deleted text end new text begin (10) new text end the trust fund was reimbursed for the unemployment benefits by the
federal government.

Sec. 13.

Minnesota Statutes 2008, section 268.051, subdivision 1, is amended to read:

Subdivision 1.

Payments.

(a) Unemployment insurance taxes and any special
assessments, fees, or surcharges accrue and become payable by each employer for each
calendar year on the taxable wages that the employer paid to employees in covered
employment, except for:

(1) nonprofit organizations that elect to make reimbursements as provided in section
268.053; and

(2) the state of Minnesota and political subdivisions that make reimbursements,
unless they elect to pay taxes as provided in section 268.052.

Each employer must pay taxes quarterly, at the employer's assigned tax rate under
subdivision 6, on the taxable wages paid to each employee. The commissioner must
compute the tax due from the wage detail report required under section 268.044 and notify
the employer of the tax due. The taxes and any special assessments, fees, or surcharges
must be paid to the trust fund and must be received by the department on or before the last
day of the month following the end of the calendar quarter.

(b) deleted text begin The tax amount computed, if not a whole dollar, is rounded down to the next
lower whole dollar.
deleted text end

deleted text begin (c) deleted text end If for any reason the wages on the wage detail report under section 268.044 are
adjusted for any quarter, the commissioner must recompute the taxes due for that quarter
and assess the employer for any amount due or credit the employer as appropriate.

Sec. 14.

Minnesota Statutes 2008, section 268.051, subdivision 4, is amended to read:

Subd. 4.

Experience rating history transfer.

(a) When:

(1) a taxpaying employer acquires all of the organization, trade or business, or
workforce of another taxpaying employer; and

(2) there is 25 percent or more common ownership or there is substantially common
management or control between the predecessor and successor, the experience rating
history of the predecessor employer is transferred to the successor employer.

(b) When:

(1) a taxpaying employer acquires a portion, but less than all, of the organization,
trade or business, or workforce of another taxpaying employer; and

(2) there is 25 percent or more common ownership or there is substantially common
management or control between the predecessor and successor, the successor employer
acquires, as of the date of acquisition, the experience rating history attributable to the
portion it acquired, and the predecessor employer retains the experience rating history
attributable to the portion that it has retained. If the commissioner determines that
sufficient information is not available to substantiate that a distinct severable portion
was acquired and to assign the appropriate distinct severable portion of the experience
rating history, the commissioner deleted text begin shall deleted text end new text begin must new text end assign the successor employer that percentage
of the predecessor employer's experience rating history equal to that percentage of
the employment positions it has obtained, and the predecessor employer retains that
percentage of the experience rating history equal to the percentage of the employment
positions it has retained.

(c) The term "common ownership" for purposes of this subdivision includes
ownership by a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle,
niece, nephew, or first cousin, by birth or by marriage.

(d) Each successor employer that is subject to paragraph (a) or (b) must notify the
commissioner of the acquisition by electronic transmission, in a format prescribed by the
commissioner, within 30 calendar days of the date of acquisition. Any successor employer
that fails to notify the commissioner is subject to the penalties under section 268.184,
subdivision 1a, if the successor's deleted text begin experience rating deleted text end new text begin assigned tax rate under subdivision 2
or 5 new text end was lower than the predecessor's deleted text begin experience rating deleted text end new text begin assigned tax rate new text end at the time of
the acquisition. Payments made toward the penalties are credited to the administration
account to be used to ensure integrity in the unemployment insurance program.

(e) If the successor employer under paragraphs (a) and (b) had an experience rating
at the time of the acquisition, the transferred experience rating history of the predecessor
is combined with the successor's experience rating history for purposes of recomputing
a tax rate.

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

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

(h) The "experience rating history" for purposes of this subdivision and subdivision
4a means the amount of unemployment benefits paid and the taxable wages that are being
used and would be used in computing the current and any future experience rating.

For purposes of this chapter, an "acquisition" means anything that results in the
obtaining by the successor employer, in any way or manner, of the organization, trade or
business, or workforce of the predecessor employer.

A "distinct severable portion" in paragraph (b) means a location or unit separately
identifiable within the employer's wage detail report under section 268.044.

(i) Regardless of the ownership, management, or control requirements of paragraph
(a), if there is an acquisition or merger of a publicly held corporation by or with another
publicly held corporation the experience rating histories of the corporations are combined
as of the date of acquisition or merger for the purpose of recomputing a tax rate.

Sec. 15.

Minnesota Statutes 2008, section 268.057, subdivision 4, is amended to read:

Subd. 4.

Costs.

new text begin (a) new text end Any person that fails to pay any amount when due under this
chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral
to any public or private collection agency, or litigation costs, including attorney fees,
incurred in the collection of the amounts due.

new text begin (b) new text end If any tendered payment of any amount due is not honored when presented to
a financial institution for payment, any costs assessed the department by the financial
institution and a fee of $25 must be assessed to the person.

new text begin (c) new text end Costs and fees collected under this subdivision are credited to the administration
account deleted text begin to be used by the commissioner to ensure integrity in the administration of the
unemployment insurance program deleted text end .

Sec. 16.

Minnesota Statutes 2008, section 268.057, subdivision 5, is amended to read:

Subd. 5.

Interest on amounts past due.

If any amounts due from an employer
under this chapter or section 116L.20, except late fees under section 268.044, are not
received on the date due the unpaid balance bears interest at the rate of one and one-half
percent per month or any part thereof. deleted text begin Interest assessed, if not a whole dollar amount,
is rounded down to the next lower whole dollar. deleted text end Interest collected is credited to the
contingent account. deleted text begin Interest may be compromised under section 268.067. deleted text end

Sec. 17.

Minnesota Statutes 2008, section 268.0625, subdivision 1, is amended to read:

Subdivision 1.

Notice of debt to licensing authority.

The state of Minnesota or a
political subdivision may not issue, transfer, or renew, and must revoke a license for the
conduct of any profession, trade, or business, if the commissioner notifies the licensing
authority that the licensee, applicant, or employer owes any amount due under this chapter
or section 116L.20, of $500 or more. A licensing authority that has received deleted text begin such deleted text end a notice
may issue, transfer, renew, or not revoke the license only if the licensing authority has
received a copy of the debt clearance certificate issued by the commissioner.

Sec. 18.

Minnesota Statutes 2008, section 268.069, subdivision 1, is amended to read:

Subdivision 1.

Requirements.

The commissioner deleted text begin shall deleted text end new text begin must new text end pay unemployment
benefits from the trust fund to an applicant who has met each of the following requirements:

(1) the applicant has filed an application for unemployment benefits and established
a benefit account in accordance with section 268.07;

(2) the applicant has not been held ineligible for unemployment benefits under
section 268.095 because of a quit or discharge;

(3) the applicant has met all of the ongoing eligibility requirements under deleted text begin sections deleted text end
new text begin section new text end 268.085 deleted text begin and 268.086 deleted text end ;

(4) the applicant does not have an outstanding overpayment of unemployment
benefits, including any penalties or interest; and

(5) the applicant has not been held ineligible for unemployment benefits under
section 268.182 because of a false representation or concealment of facts.

Sec. 19.

Minnesota Statutes 2008, section 268.07, subdivision 1, is amended to read:

Subdivision 1.

Application for unemployment benefits; determination of benefit
account.

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

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

(c) If a base period employer did not provide wage information for the applicant as
provided for in section 268.044, or provided erroneous information, the commissioner
may accept an applicant certification as to wage credits, based upon the applicant's records,
and issue a determination of benefit account.

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

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

Sec. 20.

Minnesota Statutes 2008, section 268.07, subdivision 2, is amended to read:

Subd. 2.

Benefit account requirements and weekly unemployment benefit
amount and maximum amount of unemployment benefits.

(a) To establish a benefit
account, an applicant must have:

(1) high quarter wage credits of $1,000 or more; and

(2) wage credits, in other than the high quarter, of $250 or more.

(b) If an applicant has established a benefit account, the weekly unemployment
benefit amount available during the benefit year is the higher of:

(1) 50 percent of the applicant's average weekly wage during the base period, to a
maximum of 66-2/3 percent of the state's average weekly wage; or

(2) 50 percent of the applicant's average weekly wage during the high quarter, to a
maximum of 43 percent of the state's average weekly wage.

The applicant's average weekly wage under clause (1) is computed by dividing
the total wage credits by 52. The applicant's average weekly wage under clause (2) is
computed by dividing the high quarter wage credits by 13.

(c) deleted text begin The state's maximum weekly unemployment benefit amount and an applicant's
weekly unemployment benefit amount and maximum amount of unemployment benefits
available is rounded down to the next lower whole dollar. deleted text end The state's maximum weekly
benefit amount, computed in accordance with section 268.035, subdivision 23, applies
to a benefit account established effective on or after the last Sunday in October. Once
established, an applicant's weekly unemployment benefit amount is not affected by the last
Sunday in October change in the state's maximum weekly unemployment benefit amount.

(d) The maximum amount of unemployment benefits available on any benefit
account is the lower of:

(1) 33-1/3 percent of the applicant's total wage credits; or

(2) 26 times the applicant's weekly unemployment benefit amount.

Sec. 21.

Minnesota Statutes 2008, section 268.07, subdivision 3, is amended to read:

Subd. 3.

Second benefit account requirements.

To establish a second benefit
account following the expiration of a benefit year on a prior benefit account, an
applicant must deleted text begin have sufficient wage credits to establish a benefit account under deleted text end new text begin meet the
requirements of new text end subdivision 2 and must have performed services in covered employment
after the effective date of the prior benefit account. The wages paid for deleted text begin that employment deleted text end
new text begin those services new text end must deleted text begin equal not less than deleted text end new text begin be at least new text end eight times the weekly unemployment
benefit amount of the prior benefit account. new text begin Part of new text end the deleted text begin purpose of deleted text end new text begin reason for new text end this
subdivision is to prevent an applicant from establishing more than one benefit account as a
result of one loss of employment.

Sec. 22.

Minnesota Statutes 2008, section 268.084, is amended to read:

268.084 PERSONAL IDENTIFICATION NUMBER; PRESUMPTION.

(a) Each applicant must be issued a personal identification number (PIN) for the
purpose of filing continued requests for unemployment benefits, accessing information,
and engaging in other transactions with the department.

(b) If a PIN assigned to an applicant is used in the filing of a continued request for
unemployment benefits under section deleted text begin 268.086 deleted text end new text begin 268.0865 new text end or any other type of transaction,
the applicant is presumed to have been the individual using that PIN and presumed to have
received any unemployment benefit payment issued. This presumption may be rebutted
by a preponderance of the evidence showing that the applicant assigned the PIN was not
the individual who used that PIN in the transaction.

(c) The commissioner deleted text begin shall deleted text end new text begin must new text end notify each applicant of this section.

Sec. 23.

Minnesota Statutes 2008, section 268.085, subdivision 1, is amended to read:

Subdivision 1.

Eligibility conditions.

An applicant may be eligible to receive
unemployment benefits for any week if:

(1) the applicant has deleted text begin an active benefit account and has deleted text end filed a continued request for
unemployment benefits for that week under section deleted text begin 268.086 deleted text end new text begin 268.0865 new text end ;

(2) the week for which unemployment benefits are requested is in the applicant's
benefit year;

(3) the applicant was unemployed as defined in section 268.035, subdivision 26;

(4) the applicant was deleted text begin able to work and was deleted text end available for suitable employment deleted text begin , and
was actively seeking suitable employment deleted text end new text begin as defined in subdivision 15 new text end . The applicant's
weekly unemployment benefit amount is reduced one-fifth for each day the applicant
is deleted text begin unable to work or is deleted text end unavailable for suitable employment. deleted text begin If the computation of the
reduced unemployment benefits is not a whole dollar, it is rounded down to the next lower
whole dollar. deleted text end This clause does not apply to an applicant who is in reemployment assistance
training, or each day the applicant is on jury duty or serving as an election judge;

(5) new text begin the applicant was actively seeking suitable employment as defined in subdivision
16. This clause does not apply to an applicant who is in reemployment assistance training
or who was on jury duty throughout the week;
new text end

new text begin (6) new text end the applicant has served a nonpayable waiting period of one week that the
applicant is otherwise entitled to some amount of unemployment benefits. This clause
does not apply if the applicant would have been entitled to federal disaster unemployment
assistance because of a disaster in Minnesota, but for the applicant's establishment of a
benefit account under section 268.07; and

deleted text begin (6) deleted text end new text begin (7) new text end the applicant has been participating in reemployment assistance services,
such as job search and resume writing classes, if the applicant has been determined in
need of reemployment assistance services by the commissioner, unless the applicant
has good cause for failing to participate.

Sec. 24.

Minnesota Statutes 2008, 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 the beginning of the week, has an outstanding fraud
overpayment balance under section 268.18, subdivision 2, including any penalties and
interest;

(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;

(4) that the applicant is incarcerated or performing deleted text begin court ordered deleted text end new text begin court-ordered
new text end community service. The applicant's weekly unemployment benefit amount is reduced
by one-fifth for each day the applicant is incarcerated or performing deleted text begin court ordered deleted text end
new text begin court-ordered new text end community service deleted text begin . If the computation of the reduced unemployment
benefits is not a whole dollar, it is rounded down to the next lower whole dollar deleted text end ;

(5) that the applicant fails or refuses to provide information on an issue of
ineligibility required under section 268.101;

(6) 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

(7) with respect to which the applicant is receiving, has received, or 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 the
unemployment benefits, this clause does not apply.

Sec. 25.

Minnesota Statutes 2008, section 268.085, subdivision 3a, is amended to read:

Subd. 3a.

Workers' compensation and disability insurance offset.

(a) An
applicant is not eligible to receive unemployment benefits for any week in which the
applicant is receiving or has received compensation for loss of wages equal to or in excess
of the applicant's weekly unemployment benefit amount under:

(1) the workers' compensation law of this state;

(2) the workers' compensation law of any other state or similar federal law; or

(3) any insurance or trust fund paid in whole or in part by an employer.

(b) This subdivision does not apply to an applicant who has a claim pending for
loss of wages under paragraph (a); however, before unemployment benefits may be paid
when a claim is pending, the issue of the applicant being deleted text begin able to work deleted text end new text begin available for
suitable employment new text end , as required under subdivision 1, clause deleted text begin (2) deleted text end new text begin (4) new text end , is determined under
section 268.101, subdivision deleted text begin 3 deleted text end new text begin 2 new text end . If the applicant later receives compensation as a result
of the pending claim, the applicant is subject to the provisions of paragraph (a) and the
unemployment benefits paid are subject to recoupment by the commissioner to the extent
that the compensation constitutes overpaid unemployment benefits.

(c) If the amount of compensation described under paragraph (a) for any week is
less than the applicant's weekly unemployment benefit amount, unemployment benefits
requested for that week are reduced by the amount of that compensation payment.

Sec. 26.

Minnesota Statutes 2008, section 268.085, subdivision 4, is amended to read:

Subd. 4.

Social Security benefits.

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

deleted text begin If the effective date of the applicant's Social Security claim for old age benefits is,
or will be, after the start of the base period, there must be deducted from an applicant's
weekly unemployment benefit amount deleted text end new text begin Unless paragraph (b) applies, new text end 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 new text begin must be deducted
from an applicant's weekly unemployment benefit amount new text end .

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

deleted text begin (b) deleted text end new text begin (c) new text end An applicant who is receiving, has received, or has filed for primary Social
Security disability benefits for any week during the benefit year must be determined
deleted text begin unable to work and deleted text end unavailable for suitable employment 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 deleted text begin able to work and deleted text end available for suitable employment.

If an applicant meets the requirements of clause (1) there is no deduction from the
applicant's weekly benefit amount for any Social Security disability benefits. If only
clause (2) applies, then there must be deducted from the applicant's weekly unemployment
benefit amount 50 percent of the weekly equivalent of the primary Social Security
disability benefits the applicant is receiving, has received, or has filed for, with respect
to that week; provided, however, that if the Social Security Administration determines
that an individual is not entitled to receive primary Social Security disability benefits for
any week the applicant has applied for those benefits, the 50 percent deduction does not
apply to that week.

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

deleted text begin (d) If the computation of the reduced unemployment benefits is not a whole dollar, it
is rounded down to the next lower whole dollar.
deleted text end

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

Sec. 27.

Minnesota Statutes 2008, section 268.085, subdivision 5, is amended to read:

Subd. 5.

Deductible earnings.

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

(b) If the applicant has earnings, with respect to any week, that is less than
the applicant's weekly unemployment benefit amount, from employment, covered
employment, noncovered employment, self-employment, or volunteer work, 55 percent of
the earnings are deducted from the weekly unemployment benefit amount.

deleted text begin The resulting unemployment benefit, if not a whole dollar, is rounded down to the
next lower whole dollar.
deleted text end

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

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

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

Sec. 28.

new text begin [268.0865] CONTINUED REQUEST FOR UNEMPLOYMENT
BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Continued request for unemployment benefits defined. new text end

new text begin A
continued request for unemployment benefits is a certification by an applicant, done
on a weekly basis, that the applicant is unemployed and meets the ongoing eligibility
requirements for unemployment benefits under section 268.085. A continued request
must include information on possible issues of ineligibility in accordance with section
268.101, subdivision 1, paragraph (c).
new text end

new text begin Subd. 2. new text end

new text begin Filing continued requests for unemployment benefits. new text end

new text begin (a) The
commissioner must designate to each applicant one of the following methods for filing a
continued request:
new text end

new text begin (1) by electronic transmission under subdivision 3; or
new text end

new text begin (2) by mail under subdivision 4.
new text end

new text begin (b) The method designated by the commissioner is the only method allowed for
filing a continued request by that applicant. An applicant may ask that the other allowed
method be designated and the commissioner must consider inconvenience to the applicant
as well as administrative capacity in determining whether to allow an applicant to change
the designated method for filing a continued request for unemployment benefits.
new text end

new text begin Subd. 3. new text end

new text begin Continued request for unemployment benefits by electronic
transmission. new text end

new text begin (a) A continued request for unemployment benefits by electronic
transmission must be filed to that electronic mail address, telephone number, or Internet
address prescribed by the commissioner for that applicant. In order to constitute a
continued request, all information asked for, including information authenticating that the
applicant is sending the transmission, must be provided in the format required. If all of the
information asked for is not provided, the communication does not constitute a continued
request for unemployment benefits.
new text end

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

new text begin (c) If the electronic transmission continued request is not filed on the date and
during the time of day designated, a continued request by electronic transmission must be
accepted if the applicant files the continued request by electronic transmission within two
calendar weeks following the week in which the date designated occurred. If the continued
request by electronic transmission is not filed within two calendar weeks following the
week in which the date designated occurred, the electronic continued request will not be
accepted and the applicant is ineligible for unemployment benefits for the period covered
by the continued request, unless the applicant shows good cause for failing to file the
continued request by electronic transmission within the time period required.
new text end

new text begin Subd. 4. new text end

new text begin Continued request for unemployment benefits by mail. new text end

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

new text begin (b) If the mail continued request for unemployment benefits is not filed on the date
designated, a continued request must be accepted if the form is filed by mail within two
calendar weeks following the week in which the date designated occurred. If the form
is not filed within two calendar weeks following the week in which the date designated
occurred, the form will not be accepted and the applicant is ineligible for unemployment
benefits for the period covered by the continued request for unemployment benefits,
unless the applicant shows good cause for failing to file the form by mail within the time
period required.
new text end

new text begin (c) If the applicant has been designated to file a continued request for unemployment
benefits by mail, an applicant may submit the form by facsimile transmission on the day
otherwise required for mailing, or within two calendar weeks following the week in which
the date designated occurred. A form submitted by facsimile transmission must be sent
only to the telephone number assigned for that purpose.
new text end

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

new text begin Subd. 5. new text end

new text begin Good cause defined. new text end

new text begin (a) "Good cause" for purposes of this section is a
compelling substantial reason that would have prevented a reasonable person acting with
due diligence from filing a continued request for unemployment benefits within the time
periods required.
new text end

new text begin (b) "Good cause" does not include forgetfulness, loss of the continued request form
if filing by mail, having returned to work, having an appeal pending, or inability to file a
continued request for unemployment benefits by the method designated if the applicant
was aware of the inability and did not make diligent effort to have the method of filing a
continued request changed by the commissioner. "Good cause" does not include having
previously made an attempt to file a continued request for unemployment benefits but
where the communication was not considered a continued request because the applicant
failed to submit all required information.
new text end

Sec. 29.

Minnesota Statutes 2008, section 268.095, subdivision 4, is amended to read:

Subd. 4.

Discharge.

An applicant who was discharged from employment by an
employer is ineligible for all unemployment benefits according to subdivision 10 only
if new text begin a preponderance of the available evidence shows new text end :

(1) the applicant was discharged because of employment misconduct as defined
in subdivision 6; or

(2) the applicant was discharged because of aggravated employment misconduct as
defined in subdivision 6a.

Sec. 30.

Minnesota Statutes 2008, section 268.095, subdivision 10, is amended to read:

Subd. 10.

Ineligibility duration.

(a) Ineligibility from the payment of all
unemployment benefits under subdivisions 1 and 4 is for the duration of the applicant's
unemployment and until the end of the calendar week that the applicant had total earnings
in subsequent covered employment of eight times the applicant's weekly unemployment
benefit amount.

(b) Ineligibility imposed under subdivisions 1 and 4 begins on the Sunday of the
week that the applicant became separated from employment.

(c) In addition to paragraph (a), if the applicant was discharged from employment
because of aggravated employment misconduct, wage credits from that employment are
canceled new text begin and cannot be used for purposes of a benefit account under section 268.07,
subdivision 2 new text end .

Sec. 31.

Minnesota Statutes 2008, section 268.095, subdivision 11, is amended to read:

Subd. 11.

Application.

(a) new text begin This section and new text end section 268.085, subdivision 13c,
deleted text begin and this section deleted text end apply to all covered employment, full time or part time, temporary or of
limited duration, permanent or of indefinite duration, that occurred in Minnesota during
the base period, the period between the end of the base period and the effective date of the
benefit account, or the benefit year deleted text begin , except as provided for in subdivision 1, clause (5) deleted text end .

(b) Paragraph (a) also applies to employment covered under an unemployment
insurance program of any other state or established by an act of Congress.

Sec. 32.

Minnesota Statutes 2008, section 268.101, subdivision 1, is amended to read:

Subdivision 1.

Notification.

(a) In an application for unemployment benefits, each
applicant must report the name and the reason for no longer working for the applicant's
most recent employer, as well as the names of all employers and the reasons for no
longer working for all employers during the six calendar months before the date of the
application. If the reason reported for no longer working for any of those employers is
other than a layoff because of lack of work, that raises an issue of ineligibility that the
department must determine. An applicant must report any offers of employment refused
during the eight calendar weeks before the date of the application for unemployment
benefits and the name of the employer that made the offer. An applicant's failure to report
the name of an employer, or giving an incorrect reason for no longer working for an
employer, or failing to disclose an offer of employment that was refused, is a violation of
section 268.182, subdivision 2.

In an application, the applicant must also provide all information necessary to
determine the applicant's eligibility for unemployment benefits under this chapter. If the
applicant fails or refuses to provide information necessary to determine the applicant's
eligibility for unemployment benefits, the applicant is ineligible for unemployment
benefits under section 268.085, subdivision 2, until the applicant provides this required
information.

(b) Upon establishment of a benefit account under section 268.07, subdivision 2,
the commissioner shall notify, by mail or electronic transmission, all employers the
applicant was required to report on the application and all base period employers and
determined successors to those employers under section 268.051, subdivision 4, in order
to provide the employer an opportunity to raise, in a manner and format prescribed by the
commissioner, any issue of ineligibility. An employer must be informed of the effect that
failure to raise an issue of ineligibility as a result of a quit or discharge of the applicant,
deleted text begin within ten calendar days after sending of the notice, deleted text end as provided for under subdivision 2,
paragraph (b), may have on the employer under section 268.047.

(c) Each applicant must report any employment, and loss of employment, and offers
of employment refused, during those weeks the applicant filed continued requests for
unemployment benefits under section deleted text begin 268.086 deleted text end new text begin 268.0865 new text end . Each applicant who stops filing
continued requests during the benefit year and later begins filing continued requests during
that same benefit year must report the name of any employer the applicant worked for
during the period between the filing of continued requests and the reason the applicant
stopped working for the employer. The applicant must report any offers of employment
refused during the period between the filing of continued requests for unemployment
benefits. Those employers from which the applicant has reported a loss of employment
under this paragraph must be notified by mail or electronic transmission and provided an
opportunity to raise, in a manner prescribed by the commissioner, any issue of ineligibility.
An employer must be informed of the effect that failure to raise an issue of ineligibility as
a result of a quit or a discharge of the applicant may have on the employer under section
268.047.

(d) The purpose for requiring the applicant to report the name of employers and the
reason for no longer working for those employers, or offers of employment refused, under
paragraphs (a) and (c) is for the commissioner to obtain information from an applicant
raising all issues that may result in the applicant being ineligible for unemployment
benefits under section 268.095, because of a quit or discharge, or the applicant being
ineligible for unemployment benefits under section 268.085, subdivision 13c. If the
reason given by the applicant for no longer working for an employer is other than a layoff
because of lack of work, that raises an issue of ineligibility and the applicant is required,
as part of the determination process under subdivision 2, paragraph (a), to state all the
facts about the cause for no longer working for the employer, if known. If the applicant
fails or refuses to provide any required information, the applicant is ineligible for
unemployment benefits under section 268.085, subdivision 2, until the applicant provides
this required information.

Sec. 33.

Minnesota Statutes 2008, section 268.101, subdivision 2, is amended to read:

Subd. 2.

Determination.

(a) The commissioner deleted text begin shall deleted text end new text begin must new text end 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 new text begin document titled a new text end 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 deleted text begin shall deleted text end new text begin must new text end determine any issue of ineligibility raised by an
employer and send to the applicant and that employer, by mail or electronic transmission,
a new text begin document titled a new text end 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) 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 deleted text begin , without regard to any burden of proof deleted text end .

(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 commissioner may issue a determination on an issue of ineligibility at any
time 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. This paragraph does not prevent the imposition of a penalty new text begin on an applicant
new text end under section 268.18, subdivision 2, or 268.182.

(f) A determination of eligibility or determination of ineligibility is final unless an
appeal is filed by the applicant or notified employer within 20 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.

(h) Except for issues of ineligibility as a result of a quit or discharge of the applicant,
the employer will be (1) sent a copy of the determination of eligibility or a determination
of ineligibility, or (2) considered an involved employer for purposes of an appeal under
section 268.105, only if the employer raised the issue of ineligibility.

Sec. 34.

Minnesota Statutes 2008, section 268.103, subdivision 1, is amended to read:

Subdivision 1.

In commissioner's discretion.

new text begin (a) new text end The commissioner deleted text begin shall have
the discretion to deleted text end new text begin may new text end allow an appeal to be filed by electronic transmission. If the
commissioner allows an appeal to be filed by electronic transmission, that must be clearly
set out on the determination or decision subject to appeal.

new text begin (b) new text end The commissioner may restrict the manner deleted text begin , deleted text end new text begin and new text end format deleted text begin , and conditions deleted text end under
which an appeal by electronic transmission may be filed. deleted text begin Any deleted text end Restrictions deleted text begin as deleted text end to deleted text begin days,
hours, deleted text end new text begin a specific new text end telephone number deleted text begin , deleted text end new text begin or new text end electronic address deleted text begin , or other conditions, deleted text end must be
clearly set out on the determination or decision subject to appeal.

new text begin (c) new text end All information requested by the commissioner when an appeal is filed by
electronic transmission must be supplied or the communication does not constitute an
appeal.

new text begin (d) This section applies to requests for reconsideration under section 268.105,
subdivision 2.
new text end

Sec. 35.

Minnesota Statutes 2008, section 268.105, subdivision 1, is amended to read:

Subdivision 1.

Evidentiary hearing by unemployment law judge.

(a) Upon
a timely appeal having been filed, the department must send, by mail or electronic
transmission, a notice of appeal to all involved parties that an appeal has been filed, new text begin and new text end
that a de novo due process evidentiary hearing will be scheduled deleted text begin , and that the parties
have deleted text end deleted text begin certain deleted text end new text begin . The notice must set out the parties' new text end rights and responsibilities regarding the
hearing. new text begin The notice must explain that the matter will be decided by the unemployment law
judge based upon a preponderance of the available evidence. The notice must explain in
clear and simple language the meaning of the term "preponderance of the evidence." new text end The
department must set a time and place for a de novo due process evidentiary hearing and
send notice to any involved applicant and any involved employer, by mail or electronic
transmission, not less than ten calendar days before the date of the hearing.

(b) The evidentiary hearing is conducted by an unemployment law judge deleted text begin without
regard to any burden of proof deleted text end as an evidence gathering inquiry deleted text begin and not an adversarial
proceeding deleted text end . new text begin At the beginning of the hearing the unemployment law judge must fully
explain how the hearing will be conducted, that the matter will be decided upon a
preponderance of the available evidence, and, in clear and simple language, the meaning
of the term "preponderance of the evidence." new text end The unemployment law judge must ensure
that all relevant facts are clearly and fully developed. The department may adopt rules on
evidentiary hearings. The rules need not conform to common law or statutory rules of
evidence and other technical rules of procedure. The department has discretion regarding
the method by which the evidentiary hearing is conducted. A report of any employee of
the department, except a determination, made in the regular course of the employee's
duties, is competent evidence of the facts contained in it.

(c) After the conclusion of the hearing, upon the evidence obtained, the
unemployment law judge must make findings of fact and decision and send those, by mail
or electronic transmission, to all involved parties. When the credibility of an involved
party or witness testifying in an evidentiary hearing has a significant effect on the outcome
of a decision, the unemployment law judge must set out the reason for crediting or
discrediting that testimony. The unemployment law judge's decision is final unless a
request for reconsideration is filed under subdivision 2.

(d) Regardless of paragraph (c), if the appealing party fails to participate in the
evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal
by summary order. By failing to participate, the appealing party is considered to have
failed to exhaust available administrative remedies unless the appealing party files a
request for reconsideration under subdivision 2 and establishes good cause for failing to
participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission
of a written statement does not constitute participation. The applicant must participate
personally and appearance solely by a representative does not constitute participation.

(e) Only employees of the department who are attorneys licensed to practice law
in Minnesota may serve as new text begin the chief unemployment law judge, senior unemployment
law judges who are supervisors, or new text end unemployment law judges. The commissioner
new text begin must designate a chief unemployment law judge. The chief unemployment law judge
new text end may transfer to another unemployment law judge any proceedings pending before an
unemployment law judge.

Sec. 36.

Minnesota Statutes 2008, section 268.105, subdivision 2, is amended to read:

Subd. 2.

Request for reconsideration.

(a) Any involved applicant, involved
employer, or the commissioner may, within 20 calendar days of the sending of the
unemployment law judge's decision under subdivision 1, file a request for reconsideration
asking the unemployment law judge to reconsider that decision. Section 268.103 applies
to a request for reconsideration. If a request for reconsideration is timely filed, the
unemployment law judge must issue an order:

(1) modifying the findings of fact and decision issued under subdivision 1;

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

(3) affirming the findings of fact and decision issued under subdivision 1.

(b) Upon a timely request for reconsideration having been filed, the department must
send a notice, by mail or electronic transmission, to all involved parties that a request for
reconsideration has been filed. The notice must inform the involved parties:

(1) of the opportunity to provide comment on the request for reconsideration, and
the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits
offered or received into evidence at the evidentiary hearing;

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

(3) of the right to obtain any comments and submissions provided by the other
involved party regarding the request for reconsideration; and

(4) of the provisions of paragraph (c) regarding additional evidence.

This paragraph does not apply if paragraph (d) is applicable.

(c) In deciding a request for reconsideration, the unemployment law judge must not,
except for purposes of determining whether to order an additional evidentiary hearing,
consider any evidence that was not submitted at the evidentiary hearing conducted under
subdivision 1.

The unemployment law judge must order an additional evidentiary hearing if an
involved party shows that evidence which was not submitted at the evidentiary hearing:
(1) would likely change the outcome of the decision and there was good cause for not
having previously submitted that evidence; or (2) would show that the evidence that was
submitted at the evidentiary hearing was likely false and that the likely false evidence had
an effect on the outcome of the decision.

(d) If the involved applicant or involved employer who filed the request for
reconsideration failed to participate in the evidentiary hearing conducted under subdivision
1, an order setting aside the deleted text begin findings of fact and deleted text end decision and directing that an additional
evidentiary hearing be conducted must be issued if the party who failed to participate had
good cause for failing to do so. In the notice that a request for reconsideration has been
filed, the party who failed to participate must be informed of the requirement, and provided
the opportunity, to show good cause for failing to participate. If the unemployment
law judge determines that good cause for failure to participate has not been shown, the
unemployment law judge must state that in the order issued under paragraph (a).

Submission of a written statement at the evidentiary hearing under subdivision 1
does not constitute participation for purposes of this paragraph.

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

"Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from participating at the evidentiary hearing.

(e) A request for reconsideration must be decided by the unemployment law judge
who issued the deleted text begin findings of fact and deleted text end decision under subdivision 1 unless that unemployment
law judge: (1) is no longer employed by the department; (2) is on an extended or indefinite
leave; (3) has been disqualified from the proceedings on the judge's own motion; or (4)
has been removed from the proceedings deleted text begin as provided for under subdivision 1 or applicable
rule deleted text end new text begin by the chief unemployment law judge new text end .

(f) The unemployment law judge must send to any involved applicant or involved
employer, by mail or electronic transmission, the order issued under this subdivision. An
order modifying the previously issued findings of fact and decision or an order affirming
the previously issued findings of fact and decision is the final department decision on the
matter and is final and binding on the involved applicant and involved employer unless
judicial review is sought under subdivision 7.

Sec. 37.

Minnesota Statutes 2008, section 268.105, subdivision 3a, is amended to read:

Subd. 3a.

Decisions.

(a) If an unemployment law judge's decision or order
allows unemployment benefits to an applicant, the unemployment benefits must be paid
regardless of any request for reconsideration or any appeal to the Minnesota Court of
Appeals having been filed.

(b) If an unemployment law judge's decision or order modifies or reverses a
determination, or prior decision of the unemployment law judge, allowing unemployment
benefits to an applicant, any benefits paid in accordance with the determination, or
prior decision of the unemployment law judge, is considered an overpayment of those
unemployment benefits. A decision or order issued under this section that results in an
overpayment of unemployment benefits must set out the amount of the overpayment and
the requirement under section 268.18, subdivision 1, that the overpaid unemployment
benefits must be repaid.

(c) If an unemployment law judge's order under subdivision 2 allows unemployment
benefits to an applicant under section 268.095 because of a quit or discharge and the
unemployment law judge's decision is reversed by the Minnesota Court of Appeals or
the Supreme Court of Minnesota, new text begin the applicant cannot be held ineligible for new text end any new text begin of
the new text end unemployment benefits paid the applicant new text begin and it new text end is not considered an overpayment
of those unemployment benefits under section 268.18, subdivision 1. new text begin The effect of the
court's reversal is the application of section 268.047, subdivision 3, in computing the
future tax rate of the employer.
new text end

(d) If an unemployment law judge, under subdivision 2, orders the taking of
additional evidence, the unemployment law judge's prior decision must continue to be
enforced until new findings of fact and decision are made by the unemployment law judge.

Sec. 38.

Minnesota Statutes 2008, section 268.105, subdivision 4, is amended to read:

Subd. 4.

Oaths; subpoenas.

An unemployment law judge has authority to
administer oaths and affirmations, take depositions, and issue subpoenas to compel the
attendance of witnesses and the production of documents and other personal property
considered necessary as evidence in connection with the subject matter of an evidentiary
hearing.

new text begin The unemployment law judge must give full consideration to a request for a
subpoena and must not unreasonably deny a request for a subpoena. If a subpoena request
is initially denied, the unemployment law judge must, on the unemployment law judge's
own motion, reconsider that request during the evidentiary hearing and rule on whether
the request was properly denied. If the request was not properly denied, the evidentiary
hearing must be continued for issuance of the subpoena. new text end The subpoenas are enforceable
through the district court in Ramsey County. Witnesses subpoenaed, other than an involved
applicant or involved employer or officers and employees of an involved employer, must
be paid by the department the same witness fees as in a civil action in district court.

Sec. 39.

Minnesota Statutes 2008, section 268.115, subdivision 5, is amended to read:

Subd. 5.

Maximum amount of extended unemployment benefits.

The maximum
amount of extended unemployment benefits available to an applicant is 50 percent of the
maximum amount of regular unemployment benefits available in the benefit year deleted text begin , rounded
down to the next lower whole dollar deleted text end . If the total rate of unemployment computed under
subdivision 1, clause (2)(ii), equaled or exceeded eight percent, the maximum amount
of extended unemployment benefits available is 80 percent of the maximum amount of
regular unemployment benefits available in the benefit year.

Sec. 40.

Minnesota Statutes 2008, section 268.125, subdivision 5, is amended to read:

Subd. 5.

Maximum amount of unemployment benefits.

The maximum amount
of additional unemployment benefits available in the applicant's benefit year is one-half
of the applicant's maximum amount of regular unemployment benefits available under
section 268.07, subdivision 2 deleted text begin , rounded down to the next lower whole dollar deleted text end . Extended
unemployment benefits paid and unemployment benefits paid under any federal law other
than regular unemployment benefits must be deducted from the maximum amount of
additional unemployment benefits available.

Sec. 41.

Minnesota Statutes 2008, section 268.135, subdivision 4, is amended to read:

Subd. 4.

Weekly benefit amount.

(a) An applicant who is eligible for shared work
benefits is paid an amount equal to the regular weekly unemployment benefit amount
multiplied by the nearest full percentage of reduction of the applicant's regular weekly
hours of work as set in the plan. deleted text begin The benefit payment, if not a whole dollar must be
rounded down to the next lower whole dollar.
deleted text end

(b) The deductible earnings provisions of section 268.085, subdivision 5, must not
apply to earnings from the shared work employer of an applicant eligible for shared work
benefits unless the resulting amount would be less than the regular weekly unemployment
benefit amount the applicant would otherwise be eligible for without regard to shared
work benefits.

(c) An applicant is not eligible for shared work benefits for any week that
employment is performed for the shared work employer in excess of the reduced hours
set forth in the plan.

Sec. 42.

Minnesota Statutes 2008, section 268.145, subdivision 1, is amended to read:

Subdivision 1.

Notification.

(a) Upon filing an application for unemployment
benefits, the applicant must be informed that:

(1) unemployment benefits are subject to federal and state income tax;

(2) there are requirements for filing estimated tax payments;

(3) the applicant may elect to have federal income tax withheld from unemployment
benefits;

(4) if the applicant elects to have federal income tax withheld, the applicant may, in
addition, elect to have Minnesota state income tax withheld; and

(5) at any time during the benefit year the applicant may change a prior election.

(b) If an applicant elects to have federal income tax withheld, the commissioner
deleted text begin shall deleted text end new text begin must new text end deduct ten percent for federal income tax deleted text begin , rounded down to the next lower
whole dollar deleted text end . If an applicant also elects to have Minnesota state income tax withheld, the
commissioner deleted text begin shall deleted text end new text begin must new text end make an additional five percent deduction for state income
tax deleted text begin , rounded down to the next lower whole dollar deleted text end . Any amounts deducted or offset under
sections 268.155, 268.18, and 268.184 have priority over any amounts deducted under this
section. Federal income tax withholding has priority over state income tax withholding.

(c) An election to have income tax withheld may not be retroactive and only applies
to unemployment benefits paid after the election.

Sec. 43.

Minnesota Statutes 2008, section 268.18, subdivision 1, is amended to read:

Subdivision 1.

Nonfraud overpayment.

(a) Any applicant who (1) because of a
determination or amended determination issued under section 268.07 or 268.101, or any
other section of this chapter, or (2) because of an appeal decision or order under section
268.105, has received any unemployment benefits that the applicant was held not entitled
to, must promptly repay the unemployment benefits to the trust fund.

(b) If the applicant fails to repay the unemployment benefits overpaid, the
commissioner may offset from any future unemployment benefits otherwise payable the
amount of the overpayment. Except when the overpayment resulted because the applicant
failed to report deductible earnings or deductible or benefit delaying payments, no single
offset may exceed 50 percent of the amount of the payment from which the offset is made.
The overpayment may also be collected by the same methods as delinquent payments
from an employer.

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

deleted text begin (d) If under paragraph (b) or (c) the reduced unemployment benefits as a result of
a 50 percent offset is not a whole dollar amount, it is rounded down to the next lower
whole dollar.
deleted text end

Sec. 44.

Minnesota Statutes 2008, section 268.18, subdivision 2, is amended to read:

Subd. 2.

Overpayment because of fraud.

(a) Any applicant who receives
unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose
any material fact, or who makes a false statement or representation without a good faith
belief as to the correctness of the statement or representation, has committed fraud. After
the discovery of facts indicating fraud, the commissioner deleted text begin shall deleted text end new text begin must new text end make a determination
that the applicant obtained unemployment benefits by fraud and that the applicant must
promptly repay the unemployment benefits to the trust fund. In addition, the commissioner
deleted text begin shall deleted text end new text begin must new text end assess a penalty equal to 40 percent of the amount fraudulently obtained. This
penalty is in addition to penalties under section 268.182.

(b) Unless the applicant files an appeal within 20 calendar days after the sending
of the determination of overpayment by fraud to the applicant by mail or electronic
transmission, the determination is final. Proceedings on the appeal are conducted in
accordance with section 268.105.

(c) If the applicant fails to repay the unemployment benefits, penalty, and interest
assessed, the total due may be collected by the deleted text begin same deleted text end methods deleted text begin as delinquent payments
from an employer deleted text end new text begin allowed under state and federal law new text end . A determination of overpayment
by fraud must state the methods of collection the commissioner may use to recover the
overpayment. Money received in repayment of fraudulently obtained unemployment
benefits, penalties, and interest is first applied to the unemployment benefits overpaid, then
to the penalty amount due, then to any interest due. 62.5 percent of the payments made
toward the penalty are credited to the contingent account and 37.5 percent credited to the
administration account deleted text begin for deterring, detecting, or collecting overpayments deleted text end .

(d) If an applicant has been overpaid unemployment benefits under the law of
another state because of fraud and that state certifies that the applicant is liable to repay
the unemployment benefits and requests the commissioner to recover the overpayment,
the commissioner may offset from future unemployment benefits otherwise payable the
amount of overpayment.

(e) Unemployment benefits paid for weeks more than four years before the date of a
determination of overpayment by fraud issued under this subdivision are not considered
overpaid unemployment benefits.

Sec. 45.

Minnesota Statutes 2008, section 268.196, subdivision 1, is amended to read:

Subdivision 1.

Administration account.

(a) There is created in the state treasury a
special account to be known as the administration account. All money that is deposited
deleted text begin or paid deleted text end into this account is continuously available to the commissioner for expenditure to
administer the Minnesota unemployment insurance program, and does not lapse at any
time. The administration account consists of:

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

(2) five percent of any money recovered on overpaid unemployment benefits as
provided for in section 268.194, subdivision 1, clause (7), which must be used for
deterring, detecting, and collecting overpaid unemployment benefits;

(3) any money received as compensation for services or facilities supplied to the
federal government or any other state;

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

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

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

(b) All money in this account must be deposited, administered, and disbursed in the
same manner and under the same conditions and requirements as are provided by law for
the other special accounts in the state treasury. The commissioner of finance, as treasurer
and custodian of this account, is liable for the faithful performance of duties in connection
with this account.

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

Sec. 46.

Minnesota Statutes 2008, section 268.196, subdivision 2, is amended to read:

Subd. 2.

State to replace money wrongfully used.

If any money received under
United States Code, title 42, section 501 of the Social Security Act deleted text begin or the Wagner-Peyser
Act, deleted text end is found by the United States Secretary of Labor to have been spent for purposes
other than deleted text begin , or in amounts in excess of, those necessary deleted text end for the proper administration of the
Minnesota unemployment insurance program, deleted text begin the commissioner may replace the money
from the contingent account. If the money is not replaced from the contingent account,
it is the policy of this state that the money be replaced by money appropriated for that
purpose from the general funds of this state. If not replaced from the contingent account, deleted text end
the commissioner deleted text begin shall deleted text end new text begin must new text end , at the earliest opportunity, submit to the legislature a request
for the appropriation of that amount.

Sec. 47.

Minnesota Statutes 2008, section 268.199, is amended to read:

268.199 CONTINGENT ACCOUNT.

(a) There is created in the state treasury a special account, to be known as the
contingent account, that does not lapse nor revert to any other fund or account. This
account consists of deleted text begin all money appropriated by the legislature, deleted text end all money collected under
this chapter that is required to be placed in this account deleted text begin , deleted text end and any interest earned on the
account. All money in this deleted text begin account is supplemental to all federal money available to the
commissioner. Money in this deleted text end account is appropriated deleted text begin to the commissioner deleted text end and deleted text begin is deleted text end available
deleted text begin to the commissioner deleted text end for administration of the Minnesota unemployment insurance
program new text begin unless otherwise appropriated by session law new text end .

(b) All money in this account must be deposited, administered, and disbursed in the
same manner and under the same conditions and requirements as is provided by law for
the other special accounts in the state treasury. deleted text begin On June 30 of each year, all amounts in
excess of $300,000 in this account must be paid over to the trust fund.
deleted text end

Sec. 48.

Minnesota Statutes 2008, section 268.211, is amended to read:

268.211 UNEMPLOYMENT INSURANCE BENEFITS TELEPHONE
SYSTEM.

The commissioner must ensure that deleted text begin the deleted text end new text begin any automated new text end telephone system used
for unemployment insurance benefits provides an option for any caller to speak to an
unemployment insurance specialist. An individual who calls any of the publicized
telephone numbers seeking information about applying for new text begin unemployment new text end benefits or on
the status of a deleted text begin claim deleted text end new text begin benefit account new text end must have the option to speak on the telephone to a
specialist who can provide direct assistance or can direct the caller to the deleted text begin person deleted text end new text begin individual
new text end or office that is able to respond to the caller's needs.

Sec. 49. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, chapter 268, the revisor shall change "shall" to "must," except
in Minnesota Statutes, sections 268.035 and 268.103.
new text end

Sec. 50. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 268.085, subdivision 14; and 268.086, new text end new text begin are
repealed.
new text end

Sec. 51. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 50 are effective August 2, 2009, and apply to all department
determinations and unemployment law judge decisions issued on or after that date.
new text end