HF 655

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to unemployment insurance; making technical 
  1.3             and substantive changes; providing that certain 
  1.4             applicants on leaves of absence are ineligible for 
  1.5             benefits; modifying definitions; clarifying 
  1.6             procedures; providing eligibility for benefits for 
  1.7             certain victims of domestic abuse; instructing the 
  1.8             revisor to renumber sections and change terms; 
  1.9             amending Minnesota Statutes 2000, sections 268.03, 
  1.10            subdivision 1; 268.035, subdivisions 4, 5, 29, and by 
  1.11            adding subdivisions; 268.042, subdivision 1; 268.045; 
  1.12            268.047; 268.051, subdivisions 1a, 3, 4, and 7; 
  1.13            268.052, subdivisions 1, 2, and by adding a 
  1.14            subdivision; 268.053, subdivisions 1 and 3; 268.059; 
  1.15            268.07, subdivisions 1, 2, 3a, and 3b; 268.085, 
  1.16            subdivisions 1, 2, 3, 6, 7, 14, 15, and by adding a 
  1.17            subdivision; 268.086, subdivisions 1 and 7; 268.095, 
  1.18            subdivisions 1, 2, 8, and 11; 268.101, subdivisions 1 
  1.19            and 2; 268.105, subdivision 7; 268.131, subdivision 2; 
  1.20            268.18, subdivision 2b; 268.184; 268.192, subdivision 
  1.21            1; 268.6715; and 268.976, subdivision 1; proposing 
  1.22            coding for new law in Minnesota Statutes, chapter 268; 
  1.23            repealing Laws 1999, chapter 107, section 22. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25     Section 1.  [268.029] [CITATION; UNEMPLOYMENT INSURANCE 
  1.26  PROGRAM.] 
  1.27     Sections 268.029 to 268.23 shall be known and may be cited 
  1.28  as the "Minnesota Unemployment Insurance Program Law." 
  1.29     Sec. 2.  Minnesota Statutes 2000, section 268.03, 
  1.30  subdivision 1, is amended to read: 
  1.31     Subdivision 1.  [STATEMENT.] The public policy 
  1.32  underlying purpose of sections 268.03 268.029 to 268.23 is as 
  1.33  follows:  Economic insecurity due to involuntary unemployment is 
  1.34  a serious threat to the well-being of the people of workers in 
  2.1   Minnesota.  Involuntary unemployment is a subject of general 
  2.2   interest and concern that requires appropriate action by the 
  2.3   legislature to prevent its spread and to lighten its burdens.  
  2.4   The public good and the well-being of the citizens of Minnesota 
  2.5   will be promoted by providing, under the taxing powers of the 
  2.6   state for the compulsory setting aside of reserves to be used 
  2.7   for the payment of unemployment benefits to individuals workers 
  2.8   who are unemployed through no fault of their own.  Unemployment 
  2.9   benefits are a temporary partial wage replacement to assist the 
  2.10  unemployed worker to become reemployed.  This program will be 
  2.11  known as the "Minnesota unemployment insurance program." 
  2.12     Sec. 3.  Minnesota Statutes 2000, section 268.035, 
  2.13  subdivision 4, is amended to read: 
  2.14     Subd. 4.  [BASE PERIOD.] "Base period" means: 
  2.15     (1) the first four of the last five completed calendar 
  2.16  quarters immediately prior to the effective date of an 
  2.17  applicant's benefit account; as set forth below: 
  2.18  If the benefit account is effective     The base period
  2.19  on or between these dates:              is the prior:
  2.20  January 1 - March 31                    October 1 - September 30
  2.21  April 1 - June 30                       January 1 - December 31
  2.22  July 1 - September 30                   April 1 - March 31
  2.23  October 1 - December 31                 July 1 - June 30 
  2.24     (2) if during the base period under clause (1) an applicant 
  2.25  received workers' compensation for temporary disability under 
  2.26  chapter 176 or a similar federal law of the United States or 
  2.27  similar law of another state, or if an applicant whose own 
  2.28  serious illness caused a loss of work for which the applicant 
  2.29  received compensation for loss of wages from some other source, 
  2.30  the applicant may request a base period as follows: 
  2.31     (i) if an applicant was compensated for a loss of work of 
  2.32  seven to 13 weeks, the base period shall be the first four of 
  2.33  the last six completed calendar quarters prior to the effective 
  2.34  date of the benefit account; 
  2.35     (ii) if an applicant was compensated for a loss of work of 
  2.36  14 to 26 weeks, the base period shall be the first four of the 
  3.1   last seven completed calendar quarters prior to the effective 
  3.2   date of the benefit account; 
  3.3      (iii) if an applicant was compensated for a loss of work of 
  3.4   27 to 39 weeks, the base period shall be the first four of the 
  3.5   last eight completed calendar quarters prior to the effective 
  3.6   date of the benefit account; and 
  3.7      (iv) if an applicant was compensated for a loss of work of 
  3.8   40 to 52 weeks, the base period shall be the first four of the 
  3.9   last nine completed calendar quarters prior to the effective 
  3.10  date of the benefit account; 
  3.11     (3) if the applicant qualifies for a base period under 
  3.12  clause (2), but has insufficient wage credits to establish a 
  3.13  benefit account, the applicant may request a base period of the 
  3.14  last four completed calendar quarters prior to the date the 
  3.15  applicant's benefit account is effective.  This base period may 
  3.16  be used only once during any five-calendar-year period; and 
  3.17     (4) no base period under clause (1), (2), or (3) shall 
  3.18  include wage credits upon which a prior benefit account was 
  3.19  established. 
  3.20     Sec. 4.  Minnesota Statutes 2000, section 268.035, 
  3.21  subdivision 5, is amended to read: 
  3.22     Subd. 5.  [UNEMPLOYMENT BENEFITS.] "Unemployment benefits" 
  3.23  means the money payments portion of the Minnesota unemployment 
  3.24  insurance program available to an applicant. 
  3.25     Sec. 5.  Minnesota Statutes 2000, section 268.035, is 
  3.26  amended by adding a subdivision to read: 
  3.27     Subd. 8a.  [COMMISSIONER.] "Commissioner" means the 
  3.28  commissioner of economic security. 
  3.29     Sec. 6.  Minnesota Statutes 2000, section 268.035, is 
  3.30  amended by adding a subdivision to read: 
  3.31     Subd. 12a.  [DEPARTMENT.] "Department" means the department 
  3.32  of economic security. 
  3.33     Sec. 7.  Minnesota Statutes 2000, section 268.035, 
  3.34  subdivision 29, is amended to read: 
  3.35     Subd. 29.  [WAGES.] "Wages" means all compensation for 
  3.36  services, including commissions; bonuses; severance payments; 
  4.1   vacation and holiday pay; back pay as of the date of payment; 
  4.2   tips and gratuities paid to an employee by a customer of an 
  4.3   employer and accounted for by the employee to the employer; 
  4.4   sickness and accident disability payments, except as otherwise 
  4.5   provided in this subdivision; and the cash value of all 
  4.6   compensation in any medium other than cash, except: 
  4.7      (1) the amount of any payment made to, or on behalf of, an 
  4.8   employee under a plan established by an employer that makes 
  4.9   provision for employees generally or for a class or classes of 
  4.10  employees, including any amount paid by an employer for 
  4.11  insurance or annuities, or into a plan, to provide for a 
  4.12  payment, on account of (i) retirement or (ii) medical and 
  4.13  hospitalization expenses in connection with sickness or accident 
  4.14  disability, or (iii) death; 
  4.15     (2) the payment by an employer of the tax imposed upon an 
  4.16  employee under United States Code, title 26, section 3101 of the 
  4.17  Federal Insurance Contribution Act, with respect to compensation 
  4.18  paid to an employee for domestic service employment in a private 
  4.19  household of the employer or for agricultural employment; 
  4.20     (3) any payment made to, or on behalf of, an employee or 
  4.21  beneficiary (i) from or to a trust described in United States 
  4.22  Code, title 26, section 401(a) of the federal Internal Revenue 
  4.23  Code, that is exempt from tax under section 501(a) at the time 
  4.24  of the payment unless the payment is made to an employee of the 
  4.25  trust as compensation for services as an employee and not as a 
  4.26  beneficiary of the trust, or (ii) under or to an annuity plan 
  4.27  that, at the time of the payment, is a plan described in section 
  4.28  403(a); 
  4.29     (4) sickness or accident disability payments made by the 
  4.30  employer after the expiration of six calendar months following 
  4.31  the last calendar month that the individual worked for the 
  4.32  employer; 
  4.33     (5) disability payments made under the provisions of any 
  4.34  workers' compensation law; 
  4.35     (6) sickness or accident disability payments made by a 
  4.36  third party payer such as an insurance company; 
  5.1      (7) payments made into a fund, or for the purchase of 
  5.2   insurance or an annuity, to provide for sickness or accident 
  5.3   disability payments to employees pursuant to a plan or system 
  5.4   established by the employer that provides for the employer's 
  5.5   employees generally or for a class or classes of employees; or 
  5.6      (8) nothing in this subdivision shall exclude from the term 
  5.7   "wages" any payment made under any type of salary reduction 
  5.8   agreement, including payments made under a cash or deferred 
  5.9   arrangement and cafeteria plan, as defined in United States 
  5.10  Code, title 26, sections 401(k) and 125 of the federal Internal 
  5.11  Revenue Code, to the extent that the employee has the option to 
  5.12  receive the payment in cash. 
  5.13     Sec. 8.  Minnesota Statutes 2000, section 268.042, 
  5.14  subdivision 1, is amended to read: 
  5.15     Subdivision 1.  [EMPLOYER FOR PART OF YEAR.] Except as 
  5.16  provided in subdivision 3, any organization or person that is or 
  5.17  becomes an employer subject to sections 268.03 to 268.23 within 
  5.18  any calendar year shall be considered to be an employer during 
  5.19  subject to these sections the entire calendar year.  
  5.20     Sec. 9.  Minnesota Statutes 2000, section 268.045, is 
  5.21  amended to read: 
  5.22     268.045 [EMPLOYER TAX OR REIMBURSABLE ACCOUNTS.] 
  5.23     (a) The commissioner shall maintain a tax account for each 
  5.24  taxpaying employer and a reimbursable account for each nonprofit 
  5.25  or government employer that is has elected to be liable for 
  5.26  payments in lieu of taxes if that employer has employees in 
  5.27  covered employment in the current or the prior calendar year, 
  5.28  except as provided in this section, and.  The commissioner shall 
  5.29  assess the tax account of a taxpaying employer for all the taxes 
  5.30  due under section 268.051 and credit the tax account with all 
  5.31  taxes paid.  The commissioner shall charge the reimbursable 
  5.32  account of a nonprofit or government employer that elects to 
  5.33  make payments in lieu of taxes for any unemployment benefits 
  5.34  determined chargeable to the employer under section 268.047 
  5.35  and shall credit the tax account with all the taxes paid, or if 
  5.36  the employer is liable for payments in lieu of taxes, shall 
  6.1   credit the reimbursable account with the payments made. 
  6.2      (b) Two or more related taxpaying corporations concurrently 
  6.3   employing the same employees and compensating those employees 
  6.4   through a common paymaster that is one of the corporations may 
  6.5   apply to the commissioner to establish a common paymaster tax 
  6.6   account that shall be the tax account of the common paymaster 
  6.7   corporation.  If approved, the separate tax accounts shall be 
  6.8   maintained, but the employees compensated through the common 
  6.9   paymaster shall be reported as employees of the common paymaster 
  6.10  corporation.  The corporations using the common paymaster tax 
  6.11  account shall be jointly and severally liable for any unpaid 
  6.12  taxes, penalties, and interest owing from the common paymaster 
  6.13  tax account.  
  6.14     (c) Two or more taxpaying employers having 50 percent or 
  6.15  more common ownership and compensating employees through a 
  6.16  single payer that is one of the employers may apply to the 
  6.17  commissioner for a merging of the experience rating records 
  6.18  ratings of the employers into a single experience rating and 
  6.19  joint tax account. 
  6.20     If approved, the joint tax account shall be effective on 
  6.21  that date assigned by the commissioner and shall remain in 
  6.22  effect for not less than two calendar years, and continuing 
  6.23  unless written notice terminating the joint tax account is filed 
  6.24  with the commissioner.  The termination shall be effective on 
  6.25  January 1 next following the filing of the written notice of 
  6.26  termination. 
  6.27     The employers in the joint tax account shall be jointly and 
  6.28  severally liable for any unpaid taxes, penalties, and interest 
  6.29  owing from the joint tax account. 
  6.30     (d) Two or more nonprofit or government employers that are 
  6.31  have elected to be liable for payments in lieu of taxes may 
  6.32  apply to the commissioner for the establishment of a group 
  6.33  reimbursable account for the purpose of sharing the cost of 
  6.34  unemployment benefits charged based upon wage credits from all 
  6.35  employers in the group.  The application shall identify and 
  6.36  authorize a group representative to act as the group's agent for 
  7.1   the purposes of the reimbursable account.  If approved, the 
  7.2   commissioner shall establish a group reimbursable account for 
  7.3   the employers effective as of the beginning of the calendar year 
  7.4   that the application is received.  The reimbursable account 
  7.5   shall remain in effect for not less than two calendar years and 
  7.6   thereafter until terminated at the discretion of the 
  7.7   commissioner or upon application by the group at least 30 
  7.8   calendar days prior to the end of the two year period or 30 
  7.9   calendar days prior to January 1 of any following calendar 
  7.10  year.  Each nonprofit or government employer in the group shall 
  7.11  be jointly and severally liable for payments in lieu of taxes 
  7.12  for all unemployment benefits paid based upon wage credits from 
  7.13  all employers in the group during the period the group 
  7.14  reimbursable account was in effect.  
  7.15     Sec. 10.  Minnesota Statutes 2000, section 268.047, is 
  7.16  amended to read: 
  7.17     268.047 [EFFECT ON AN EMPLOYER OF UNEMPLOYMENT BENEFITS 
  7.18  CHARGED TO EMPLOYER PAID.] 
  7.19     Subdivision 1.  [GENERAL RULE.] Unemployment benefits paid 
  7.20  to an applicant, including extended, additional, and shared work 
  7.21  benefits, shall be used in computing the future tax rate of a 
  7.22  taxpaying base period employer or charged to the tax or 
  7.23  reimbursable account of the applicant's a base period nonprofit 
  7.24  or government employer as and when paid that has elected to be 
  7.25  liable for payments in lieu of taxes except as provided in 
  7.26  subdivisions 2 and 3.  The amount of unemployment benefits used 
  7.27  in computing the future tax rate of taxpaying employers or 
  7.28  charged to each base period employer's tax or the reimbursable 
  7.29  account of a nonprofit or government employer that has elected 
  7.30  to be liable for payments in lieu of taxes shall be the same 
  7.31  percentage of the total amount of unemployment benefits paid as 
  7.32  the percentage of wage credits from the employer is of the total 
  7.33  amount of wage credits from all the applicant's base period 
  7.34  employers. 
  7.35     In making computations under this subdivision, the amount 
  7.36  of wage credits, if not a whole dollar, shall be computed to the 
  8.1   nearest whole dollar. 
  8.2      Subd. 2.  [EXCEPTIONS TO CHARGES FOR ALL EMPLOYERS.] 
  8.3   Unemployment benefits paid shall not be charged to the tax 
  8.4   account used in computing the future tax rate of a taxpaying 
  8.5   base period employer or charged to the reimbursable account of a 
  8.6   base period nonprofit or government employer that is has elected 
  8.7   to be liable for payments in lieu of taxes when: 
  8.8      (1) the applicant was discharged from the employment 
  8.9   because of aggravated employment misconduct as determined under 
  8.10  section 268.095.  This exception shall apply only to 
  8.11  unemployment benefits paid for periods after the applicant's 
  8.12  discharge from employment; 
  8.13     (2) an applicant's discharge from that employment occurred 
  8.14  because a law required removal of the applicant from the 
  8.15  position the applicant held; 
  8.16     (3) the employer provided regularly scheduled part-time 
  8.17  employment to the applicant during the applicant's base period 
  8.18  and continues to provide the applicant with regularly scheduled 
  8.19  part-time employment during the benefit year of at least 90 
  8.20  percent of the part-time employment provided in the base period, 
  8.21  and is an involved employer because of the applicant's loss of 
  8.22  other employment.  This exception shall terminate effective the 
  8.23  first week that the employer fails to meet the benefit year 
  8.24  employment requirements.  This exception shall apply to 
  8.25  educational institutions without consideration of the period 
  8.26  between academic years or terms; 
  8.27     (4) the employer is a fire department or firefighting 
  8.28  corporation or operator of a life-support transportation 
  8.29  service, and continues to provide employment for the applicant 
  8.30  as a volunteer firefighter or a volunteer ambulance service 
  8.31  personnel during the benefit year on the same basis that 
  8.32  employment was provided in the base period.  This exception 
  8.33  shall terminate effective the first week that the employer fails 
  8.34  to meet the benefit year employment requirements; 
  8.35     (5) the applicant's unemployment from this employer was a 
  8.36  direct result of the condemnation of property by a governmental 
  9.1   agency, a fire, flood, or act of nature, where 25 percent or 
  9.2   more of the employees employed at the affected location, 
  9.3   including the applicant, became unemployed as a result.  This 
  9.4   exception shall not apply where the unemployment was a direct 
  9.5   result of the intentional act of the employer or a person acting 
  9.6   on behalf of the employer; 
  9.7      (6) the unemployment benefits were paid by another state as 
  9.8   a result of the transferring of wage credits under a combined 
  9.9   wage arrangement provided for in section 268.131; 
  9.10     (7) the applicant stopped working because of a labor 
  9.11  dispute at the applicant's primary place of employment if the 
  9.12  employer was not a party to the labor dispute; or 
  9.13     (8) the unemployment benefits were determined overpaid 
  9.14  unemployment benefits under section 268.18. 
  9.15     Subd. 3.  [EXCEPTIONS TO CHARGES FOR TAXPAYING EMPLOYERS.] 
  9.16  Unemployment benefits paid shall not be charged to the tax 
  9.17  account used in computing the future tax rate of a taxpaying 
  9.18  base period employer when: 
  9.19     (1) the applicant's wage credits from that employer are 
  9.20  less than $500; 
  9.21     (2) the applicant quit the employment, unless it was 
  9.22  determined under section 268.095, to have been because of a good 
  9.23  reason caused by the employer or because the employer notified 
  9.24  the applicant of discharge within 30 calendar days.  This 
  9.25  exception shall apply only to unemployment benefits paid for 
  9.26  periods after the applicant's quitting the employment; or 
  9.27     (3) the employer discharged the applicant from employment 
  9.28  because of employment misconduct as determined under section 
  9.29  268.095.  This exception shall apply only to unemployment 
  9.30  benefits paid for periods after the applicant's discharge from 
  9.31  employment. 
  9.32     Subd. 4.  [LIMITATION ON EXCEPTIONS.] Regardless of 
  9.33  subdivisions 2 and 3, an exception under those subdivisions will 
  9.34  be limited in accordance with section 268.101, subdivision 2, 
  9.35  paragraph (b). 
  9.36     Subd. 4 5.  [FEDERAL REIMBURSED UNEMPLOYMENT BENEFITS SHALL 
 10.1   NOT CHARGED AFFECT AN EMPLOYER.] Regardless of subdivision 1, no 
 10.2   taxpaying employer's future tax rate or nonprofit or government 
 10.3   employer's reimbursable account shall be charged for affected by 
 10.4   unemployment benefits paid for which the fund is reimbursed by 
 10.5   the federal government. 
 10.6      Subd. 5 6.  [NOTICE OF UNEMPLOYMENT BENEFITS CHARGED PAID.] 
 10.7   (a) The commissioner shall notify each employer at least 
 10.8   quarterly by mail or electronic transmission of the unemployment 
 10.9   benefits paid that will be used in computing the future tax rate 
 10.10  of a taxpaying employer, or that have been charged to the 
 10.11  employer's reimbursable account of a nonprofit or government 
 10.12  employer that has elected to be liable for payments in lieu of 
 10.13  taxes.  Unless a protest is filed in a manner prescribed by the 
 10.14  commissioner within 30 calendar days from the date of sending of 
 10.15  the notice, the charges set forth in the notice shall be final 
 10.16  and shall not be subject to collateral attack by way of review 
 10.17  of a tax rate notice, or application for a credit adjustment or 
 10.18  refund, or otherwise. 
 10.19     (b) Upon receipt of a protest, the commissioner shall 
 10.20  review the charges on the notice unemployment benefits to be 
 10.21  used in computing the future tax rate of a taxpaying employer or 
 10.22  charged to the reimbursable account of a nonprofit or government 
 10.23  employer that has elected to be liable for payments in lieu of 
 10.24  taxes and determine whether there has been an error in the 
 10.25  charging of the employer's account made.  The commissioner shall 
 10.26  either affirm or make a redetermination of the charges 
 10.27  unemployment benefits paid to be used in computing the future 
 10.28  tax rate of a taxpaying employer or charged to the reimbursable 
 10.29  account of a nonprofit or government employer that has elected 
 10.30  to be liable for payments in lieu of taxes, and a notice of 
 10.31  affirmation or redetermination shall be sent to the employer by 
 10.32  mail or electronic transmission. 
 10.33     (c) The affirmation or redetermination shall be final 
 10.34  unless the employer files an appeal within 30 calendar days 
 10.35  after the date the affirmation or redetermination was sent.  
 10.36  Proceedings on the appeal shall be conducted in accordance with 
 11.1   section 268.105. 
 11.2      (d) An employer may not collaterally attack, by way of a 
 11.3   protest to a notice of unemployment benefits charged paid, any 
 11.4   prior determination or decision holding that unemployment 
 11.5   benefits paid shall be used in computing the future tax rate of 
 11.6   a taxpaying employer or charged to the employer's reimbursable 
 11.7   account, that of a nonprofit or government employer that has 
 11.8   elected to be liable for payments in lieu of taxes which 
 11.9   determination or decision has become final. 
 11.10     (e) The commissioner may at any time upon the 
 11.11  commissioner's own motion correct a clerical error that resulted 
 11.12  in charges to an employer's account an incorrect notice under 
 11.13  paragraph (a). 
 11.14     Sec. 11.  Minnesota Statutes 2000, section 268.051, 
 11.15  subdivision 1a, is amended to read: 
 11.16     Subd. 1a.  [TAX REPORTS.] (a) Every employer, except 
 11.17  those making nonprofit and government employers that have 
 11.18  elected to make payments in lieu of taxes, shall submit a tax 
 11.19  report on a form, or in a manner, prescribed by the commissioner 
 11.20  on or before the last day of the month following the end of the 
 11.21  calendar quarter, unless the employer meets the requirements for 
 11.22  submitting tax reports annually under section 268.0511.  An 
 11.23  employer that fails to submit a tax report when due, or submits 
 11.24  an incorrect tax report, shall be subject to section 268.057, 
 11.25  subdivision 1. 
 11.26     (b) Each tax report shall include the total wages paid and 
 11.27  the taxable wages paid that quarter, the amount of tax due, and 
 11.28  any other information required by the commissioner.  
 11.29     (c) A tax report must be submitted for each calendar 
 11.30  quarter even though no wages were paid or no tax is due.  
 11.31     Sec. 12.  Minnesota Statutes 2000, section 268.051, 
 11.32  subdivision 3, is amended to read: 
 11.33     Subd. 3.  [COMPUTATION OF A TAXPAYING EMPLOYER'S EXPERIENCE 
 11.34  RATING.] (a) For each calendar year, the commissioner shall 
 11.35  compute an experience rating for each taxpaying employer who has 
 11.36  been subject to this chapter for at least the 12 calendar months 
 12.1   prior to July 1 of the prior calendar year.  
 12.2      (b) The experience rating shall be the ratio obtained by 
 12.3   dividing 125 percent of the total unemployment benefits charged 
 12.4   to the employer's tax account required under section 268.047 to 
 12.5   be used in computing the employer's tax rate during the period 
 12.6   the employer has been subject to this chapter, but not more than 
 12.7   the 60 calendar months ending on June 30 of the prior calendar 
 12.8   year, by the employer's total taxable payroll for the that same 
 12.9   period. 
 12.10     (b) (c) For purposes of paragraph (a) (b), only that 
 12.11  taxable payroll upon which taxes have been paid on or before 
 12.12  September 30 of the prior calendar year may be used in computing 
 12.13  an employer's experience rating. 
 12.14     (c) (d) The experience rating shall be computed to the 
 12.15  nearest one-tenth of a percent, to a maximum of 8.9 percent.  
 12.16     Sec. 13.  Minnesota Statutes 2000, section 268.051, 
 12.17  subdivision 4, is amended to read: 
 12.18     Subd. 4.  [EXPERIENCE RATING RECORD TRANSFER.] (a) When 
 12.19  an a taxpaying employer acquires the organization, trade or 
 12.20  business or substantially all the assets of another employer, 
 12.21  and there is 25 percent or more common ownership, directly or 
 12.22  indirectly, between the predecessor and successor, the 
 12.23  experience rating record of the predecessor employer shall be 
 12.24  transferred as of the date of acquisition to the successor 
 12.25  employer for the purpose of computing a tax rate. 
 12.26     (b) When an a taxpaying employer acquires a distinct 
 12.27  severable portion of the organization, trade, business, or 
 12.28  assets that is less than substantially all of the employing 
 12.29  enterprises of another employer, and there is 25 percent or more 
 12.30  common ownership, directly or indirectly, between the 
 12.31  predecessor and successor, the successor employer shall acquire 
 12.32  the experience rating record attributable to the portion it 
 12.33  acquired, and the predecessor employer shall retain the 
 12.34  experience rating record attributable to the portion that it has 
 12.35  retained, if (1) the successor makes a written request to apply 
 12.36  for the transfer of the experience rating record attributable to 
 13.1   the severable portion acquired from the predecessor within 180 
 13.2   calendar days from the date of acquisition, and (2) files an 
 13.3   application within the time and in the manner prescribed by the 
 13.4   commissioner that furnishes sufficient information to 
 13.5   substantiate the severable portion and to assign the appropriate 
 13.6   total and taxable wages and unemployment benefit charges to the 
 13.7   successor for portion of the experience rating purposes.  
 13.8      (c) The term "common ownership" for purposes of this 
 13.9   subdivision includes ownership by a spouse, parent, child, 
 13.10  brother, sister, aunt, uncle, niece, nephew, or first cousin, by 
 13.11  birth or by marriage. 
 13.12     (d) If the successor employer under paragraphs (a) and (b) 
 13.13  had an experience rating record at the time of the acquisition, 
 13.14  the transferred record experience rating of the predecessor 
 13.15  shall be combined with the successor's record experience rating 
 13.16  for purposes of computing a tax rate. 
 13.17     (e) If there has been a transfer of an experience rating 
 13.18  record under paragraph (a) or (b), employment with a predecessor 
 13.19  employer shall not be considered to have been terminated if 
 13.20  similar employment is offered by the successor employer and 
 13.21  accepted by the employee. 
 13.22     (f) The commissioner, upon the commissioner's own motion or 
 13.23  upon application of an employer shall determine if an employer 
 13.24  is a successor within the meaning of this subdivision and shall 
 13.25  send the determination to the employer by mail or electronic 
 13.26  transmission.  The determination shall be final unless an appeal 
 13.27  is filed by the employer within 30 calendar days after the 
 13.28  sending of the determination.  Proceedings on the appeal shall 
 13.29  be conducted in accordance with section 268.105. 
 13.30     (g) The commissioner may, as the result of any 
 13.31  determination or decision regarding succession or nonsuccession, 
 13.32  recompute the tax rate of all employers affected by the 
 13.33  determination or decision for any year, including the year of 
 13.34  the acquisition and subsequent years, that is affected by the 
 13.35  transfer or nontransfer of part or all of the experience rating 
 13.36  record.  This paragraph does not apply to rates that have become 
 14.1   final before the filing of a written request to apply for the 
 14.2   transfer of a severable portion of the experience rating record 
 14.3   under paragraph (b). 
 14.4      (h) Should an employer not have been in operation long 
 14.5   enough to qualify for an experience rating under subdivision 3, 
 14.6   paragraph (a), the experience rating record for purposes of this 
 14.7   subdivision shall consist of those factors that normally make up 
 14.8   an experience rating, without the 12-month minimum required 
 14.9   under subdivision 3. 
 14.10     (i) If the commissioner finds that a transaction was done, 
 14.11  in whole or in part, to avoid an experience rating record or the 
 14.12  transfer of an experience rating record, the commissioner may 
 14.13  transfer all or part of the experience rating record regardless 
 14.14  of the requirements or limitations of paragraph (a).  This shall 
 14.15  include the transferring of employees from the payroll of an 
 14.16  employer with a higher experience rating record to the payroll 
 14.17  of an employer with a lower experience rating record. 
 14.18     (j) Regardless of paragraph (a), if there is an acquisition 
 14.19  or merger of a publicly held corporation by or with another 
 14.20  publicly held corporation the experience rating records ratings 
 14.21  of the corporations shall be combined as of the date of 
 14.22  acquisition or merger for the purpose of computing a tax rate. 
 14.23     Sec. 14.  Minnesota Statutes 2000, section 268.051, 
 14.24  subdivision 7, is amended to read: 
 14.25     Subd. 7.  [TAX RATE BUYDOWN.] (a) Any taxpaying employer 
 14.26  who has been assigned a tax rate based upon an experience rating 
 14.27  may, upon the voluntary payment of an amount equivalent to any 
 14.28  portion or all of the unemployment benefits charged to the 
 14.29  employer's account, used in computing the experience rating plus 
 14.30  a surcharge of 25 percent, obtain a cancellation of unemployment 
 14.31  benefits charged to the account used equal to the payment made, 
 14.32  less the surcharge.  Upon the payment, the commissioner shall 
 14.33  compute a new experience rating for the employer, and determine 
 14.34  a new tax rate.  
 14.35     (b) Voluntary payments may be made only during the 30 
 14.36  calendar day period immediately following the date of sending of 
 15.1   the notice of tax rate.  This period may be extended, upon a 
 15.2   showing of good cause, but in no event shall a voluntary payment 
 15.3   be allowed after 120 calendar days from the beginning of the 
 15.4   calendar year for which the tax rate is effective. 
 15.5      (c) Voluntary payments made within the time required will 
 15.6   not be refunded unless a request is made in writing within 30 
 15.7   calendar days after sending of the notice of the new tax rate. 
 15.8      Sec. 15.  Minnesota Statutes 2000, section 268.052, 
 15.9   subdivision 1, is amended to read: 
 15.10     Subdivision 1.  [PAYMENTS.] In lieu of taxes payable on a 
 15.11  quarterly basis, the state of Minnesota or its political 
 15.12  subdivisions shall pay into the fund the amount of unemployment 
 15.13  benefits charged to its reimbursable account under section 
 15.14  268.047.  Payments in the amount of unemployment benefits 
 15.15  charged to the reimbursable account during a calendar quarter 
 15.16  shall be made on or before the last day of the month following 
 15.17  the month that the notice of unemployment benefits charged paid 
 15.18  is sent pursuant to section 268.047, subdivision 5 6.  Past due 
 15.19  payments in lieu of taxes shall be subject to the same interest 
 15.20  charges and collection procedures that apply to past due taxes. 
 15.21     Sec. 16.  Minnesota Statutes 2000, section 268.052, 
 15.22  subdivision 2, is amended to read: 
 15.23     Subd. 2.  [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 
 15.24  A TAXPAYING EMPLOYER.] (a) The state or political subdivision 
 15.25  may elect to be a taxpaying employer for any calendar year if a 
 15.26  notice of election is filed within 30 calendar days following 
 15.27  January 1 of that calendar year.  Upon election, the state or 
 15.28  political subdivision shall be assigned the new employer tax 
 15.29  rate under section 268.051, subdivision 5, for the calendar year 
 15.30  of the election and until it qualifies for an experience rating 
 15.31  under section 268.051, subdivision 3. 
 15.32     (b) An election shall be for a minimum period of three two 
 15.33  calendar years following the effective date of the election and 
 15.34  continue unless a notice terminating the election is filed not 
 15.35  later than 30 calendar days before the beginning of the calendar 
 15.36  year.  The termination shall be effective at the beginning of 
 16.1   the next calendar year.  Upon election, the commissioner shall 
 16.2   establish a reimbursable account for the state or political 
 16.3   subdivision.  A termination of election shall be allowed only if 
 16.4   the state or political subdivision has a zero, since the 
 16.5   beginning of the experience rating and has no period under 
 16.6   section 268.051, subdivision 3, paid taxes and made voluntary 
 16.7   payments under section 268.051, subdivision 7, equal or more 
 16.8   than 125 percent of the unemployment benefit charges to its tax 
 16.9   account that have not yet been used in computing an benefits 
 16.10  used in computing the experience rating.  In addition, any 
 16.11  unemployment benefits paid after the experience rating under 
 16.12  section 268.051, subdivision 3.  period shall be transferred to 
 16.13  the new reimbursable account of the state or political 
 16.14  subdivision.  If the amount of taxes and voluntary payments paid 
 16.15  since the beginning of the experience rating period exceeds 125 
 16.16  percent of the amount of unemployment benefits paid during the 
 16.17  experience rating period, that amount in excess shall be applied 
 16.18  against any unemployment benefits paid after the experience 
 16.19  rating period. 
 16.20     (c) The method of payments to the fund under subdivisions 3 
 16.21  and 4 shall apply to all taxes paid by or due from the state or 
 16.22  political subdivision that elects to be taxpaying employers 
 16.23  under this subdivision. 
 16.24     (d) The commissioner may allow a notice of election or a 
 16.25  notice terminating election to be filed by mail or electronic 
 16.26  transmission.  
 16.27     Sec. 17.  Minnesota Statutes 2000, section 268.052, is 
 16.28  amended by adding a subdivision to read: 
 16.29     Subd. 5.  [CONSIDERED AN ELECTION.] If the state of 
 16.30  Minnesota or its political subdivisions choose not to be a 
 16.31  taxpaying employer under subdivision 2, the state or its 
 16.32  political subdivision shall be considered, for purposes of the 
 16.33  Minnesota unemployment insurance program, to have elected to be 
 16.34  liable for payments in lieu of taxes under subdivision 1. 
 16.35     [EFFECTIVE DATE.] This section is effective the day 
 16.36  following final enactment. 
 17.1      Sec. 18.  Minnesota Statutes 2000, section 268.053, 
 17.2   subdivision 1, is amended to read: 
 17.3      Subdivision 1.  [ELECTION.] (a) Any nonprofit organization 
 17.4   that has employees in covered employment shall pay taxes on a 
 17.5   quarterly basis pursuant to section 268.051 unless it elects to 
 17.6   make payments in lieu of taxes to the fund the amount of 
 17.7   unemployment benefits charged to its employer reimbursable 
 17.8   account under section 268.047. 
 17.9      The organization may elect to make payments in lieu of 
 17.10  taxes for a period of not less than two calendar years beginning 
 17.11  with the date that the organization was determined to be an 
 17.12  employer with covered employment by filing a notice of election 
 17.13  not later than 30 calendar days after the date of the 
 17.14  determination. 
 17.15     (b) Any nonprofit organization that makes an election will 
 17.16  continue to be liable for payments in lieu of taxes until it 
 17.17  files a notice terminating its election not later than 30 
 17.18  calendar days before the beginning of the calendar year the 
 17.19  termination is to be effective.  
 17.20     (c) A nonprofit organization that has been making payments 
 17.21  in lieu of taxes that files a notice of termination of election 
 17.22  shall be assigned the new employer tax rate under section 
 17.23  268.051, subdivision 5, for the calendar year of the termination 
 17.24  of election and until it qualifies for an experience rating 
 17.25  under section 268.051, subdivision 3. 
 17.26     (d) Any nonprofit organization that has been paying taxes 
 17.27  may elect to make payments in lieu of taxes by filing no less 
 17.28  than 30 calendar days before January 1 of any calendar year a 
 17.29  notice of election.  Upon election, the commissioner shall 
 17.30  establish a reimbursable account for the nonprofit 
 17.31  organization.  An election shall be allowed only if the 
 17.32  nonprofit organization has, during since the beginning of the 
 17.33  experience rating period under section 268.051, subdivision 3, 
 17.34  paid taxes or and made voluntary payments under section 268.051, 
 17.35  subdivision 7, equal to or more than 125 percent of the 
 17.36  unemployment benefit charges during benefits used in computing 
 18.1   the experience rating period.  In addition, any 
 18.2   unemployment benefit charges to its tax account that come 
 18.3   benefits paid after the experience rating period shall be 
 18.4   transferred to the new reimbursable account of the nonprofit 
 18.5   organization.  If the amount of taxes and voluntary payments 
 18.6   paid during since the beginning of the experience rating period 
 18.7   exceeds 125 percent of the amount of unemployment benefit 
 18.8   charges benefits paid during the experience rating period, that 
 18.9   amount in excess shall be applied against any 
 18.10  unemployment benefit charges that come benefits paid after the 
 18.11  experience rating period.  The election shall not be terminable 
 18.12  by the organization for that and the next calendar year. 
 18.13     (e) The commissioner may for good cause extend the period 
 18.14  that a notice of election, or a notice of termination, must be 
 18.15  filed and may permit an election to be retroactive. 
 18.16     (f) The commissioner may allow a notice of election or 
 18.17  notice terminating election to be filed by mail or electronic 
 18.18  transmission. 
 18.19     Sec. 19.  Minnesota Statutes 2000, section 268.053, 
 18.20  subdivision 3, is amended to read: 
 18.21     Subd. 3.  [PAYMENTS.] (a) Payments in lieu of taxes, in the 
 18.22  amount of unemployment benefits charged to the reimbursable 
 18.23  account, during a calendar quarter, shall be made on or before 
 18.24  the last day of the month following the month that the notice of 
 18.25  unemployment benefits charged paid is sent pursuant to section 
 18.26  268.047, subdivision 5 6.  
 18.27     (b) Past due payments in lieu of taxes shall be subject to 
 18.28  the same interest charges and collection procedures that apply 
 18.29  to past due taxes. 
 18.30     (c) If any nonprofit organization is delinquent in making 
 18.31  payments in lieu of taxes, the commissioner may terminate the 
 18.32  organization's election to make payments in lieu of taxes as of 
 18.33  the beginning of the next calendar year, and the termination 
 18.34  shall be effective for that and the following calendar year.  A 
 18.35  nonprofit organization that has its election terminated under 
 18.36  this paragraph shall be assigned the new employer tax rate under 
 19.1   section 268.051, subdivision 5, until the organization qualifies 
 19.2   for an experience rating under section 268.051, subdivision 3. 
 19.3      Sec. 20.  Minnesota Statutes 2000, section 268.059, is 
 19.4   amended to read: 
 19.5      268.059 [GARNISHMENT FOR DELINQUENT TAXES AND UNEMPLOYMENT 
 19.6   BENEFIT OVERPAYMENTS.] 
 19.7      (a) Subdivision 1.  [NOTICE.] The commissioner may give 
 19.8   notice to any employer that an employee owes delinquent taxes, 
 19.9   payments in lieu of taxes, or overpaid unemployment benefits, 
 19.10  including penalties, interest, and costs, and that the 
 19.11  obligation to the department fund should be withheld from the 
 19.12  employee's wages.  The commissioner may proceed only if the tax, 
 19.13  payment in lieu of taxes, or unemployment benefit overpayment is 
 19.14  uncontested or if the time for any appeal has expired.  The 
 19.15  commissioner shall not proceed until 30 calendar days after 
 19.16  mailing to the debtor employee, at the debtor's last known 
 19.17  address, a written notice of intent to garnish wages and 
 19.18  exemption notice.  That notice shall list: 
 19.19     (1) the amount of taxes, payments in lieu of taxes, 
 19.20  overpaid unemployment benefits, interest, penalties, or costs 
 19.21  due from the debtor; 
 19.22     (2) demand for immediate payment; and 
 19.23     (3) the intention to serve a garnishment notice on the 
 19.24  debtor's employer. 
 19.25     The notice shall expire 180 calendar days after it has been 
 19.26  mailed to the debtor provided that the notice may be renewed by 
 19.27  mailing a new notice that is in accordance with this section.  
 19.28  The renewed notice shall have the effect of reinstating the 
 19.29  priority of the original notice.  The exemption notice shall be 
 19.30  in substantially the same form as in section 571.72.  The notice 
 19.31  shall inform the debtor of the right to claim exemptions 
 19.32  contained in section 550.37, subdivision 14.  If no written 
 19.33  claim of exemption is received by the commissioner within 30 
 19.34  calendar days after mailing of the notice, the commissioner may 
 19.35  proceed with the garnishment.  The notice to the debtor's 
 19.36  employer may be served by mail and shall be in substantially the 
 20.1   same form as in section 571.75.  
 20.2      Subd. 2.  [EMPLOYER ACTION.] (a) Upon receipt of the 
 20.3   garnishment notice, the employer shall withhold from the 
 20.4   earnings due or to become due to the employee, the amount shown 
 20.5   on the notice plus accrued interest, subject to section 
 20.6   571.922.  The employer shall continue to withhold each pay 
 20.7   period the amount shown on the notice plus accrued interest 
 20.8   until the garnishment notice is released by the commissioner.  
 20.9   Upon receipt of notice by the employer, the claim of the 
 20.10  commissioner shall have priority over any subsequent 
 20.11  garnishments or wage assignments.  The commissioner may arrange 
 20.12  between the employer and employee for withholding a portion of 
 20.13  the total amount due the employee each pay period, until the 
 20.14  total amount shown on the notice plus accrued interest has been 
 20.15  withheld. 
 20.16     The "earnings due" any employee is as defined in section 
 20.17  571.921.  
 20.18     (b) The maximum garnishment allowed for any one pay period 
 20.19  shall be decreased by any amounts payable pursuant to any other 
 20.20  garnishment action served prior to the garnishment notice, and 
 20.21  any amounts covered by any irrevocable and previously effective 
 20.22  assignment of wages; the employer shall give notice to the 
 20.23  commissioner of the amounts and the facts relating to the 
 20.24  assignment within ten days after the service of the garnishment 
 20.25  notice on the form provided by the commissioner. 
 20.26     (c) Within ten calendar days after the expiration of the 
 20.27  pay period, the employer shall remit to the commissioner, on a 
 20.28  form and in the manner prescribed by the commissioner, the 
 20.29  amount withheld during each pay period. 
 20.30     (b) Subd. 3.  [DISCHARGE OR DISCIPLINE PROHIBITED.] (a) If 
 20.31  the employee ceases to be employed by the employer before the 
 20.32  full amount set forth on the garnishment notice plus accrued 
 20.33  interest has been withheld, the employer shall immediately 
 20.34  notify the commissioner in writing of the termination date of 
 20.35  the employee and the total amount withheld.  No employer may 
 20.36  discharge or discipline any employee because the commissioner 
 21.1   has proceeded under this section.  If an employer discharges an 
 21.2   employee in violation of this section, the employee shall have 
 21.3   the same remedy as provided in section 571.927, subdivision 2. 
 21.4      (c) Within ten calendar days after the expiration of the 
 21.5   pay period, the employer shall remit to the commissioner, on a 
 21.6   form and in the manner prescribed by the commissioner, the 
 21.7   amount withheld during each pay period. 
 21.8      (d) Paragraphs (a) to (c) (b) This section shall apply if 
 21.9   the employer is the state of Minnesota or any political 
 21.10  subdivision. 
 21.11     (e) (c) The commissioner shall refund to the employee any 
 21.12  excess amounts withheld from the employee. 
 21.13     (f) (d) An employer that fails or refuses to comply with 
 21.14  this section shall be jointly and severally liable as provided 
 21.15  in for the total amount due from the employee.  Any amount due 
 21.16  from the employer under this paragraph may be collected in 
 21.17  accordance with section 268.058, subdivision 2, paragraph (j). 
 21.18     Sec. 21.  Minnesota Statutes 2000, section 268.07, 
 21.19  subdivision 1, is amended to read: 
 21.20     Subdivision 1.  [APPLICATION FOR UNEMPLOYMENT BENEFITS; 
 21.21  DETERMINATION OF BENEFIT ACCOUNT.] (a) An application for 
 21.22  unemployment benefits may be filed in person, by mail, by 
 21.23  telephone, or by electronic transmission as the commissioner 
 21.24  shall require.  The applicant must be unemployed at the time the 
 21.25  application is filed and must provide all requested information 
 21.26  in the manner required.  If the applicant is not unemployed at 
 21.27  the time of the application or fails to provide all requested 
 21.28  information, the communication shall not be considered an 
 21.29  application for unemployment benefits. 
 21.30     (b) The commissioner shall examine each application for 
 21.31  unemployment benefits to determine the base period, the benefit 
 21.32  year, the weekly unemployment benefit amount available, if any, 
 21.33  and the maximum amount of unemployment benefits available, if 
 21.34  any.  The determination shall be known as the determination of 
 21.35  benefit account.  A determination of benefit account shall be 
 21.36  sent to the applicant and all base period employers, by mail or 
 22.1   electronic transmission. 
 22.2      (c) If a base period employer did not provide wage 
 22.3   information for the applicant as provided for in section 
 22.4   268.044, the commissioner shall accept an applicant 
 22.5   certification as to wage credits, based upon the applicant's 
 22.6   records, and issue a determination of benefit account. 
 22.7      (d) The commissioner may, at any time within 24 months from 
 22.8   the establishment of a benefit account, reconsider any 
 22.9   determination of benefit account and make a redetermination an 
 22.10  amended determination if the commissioner finds that the 
 22.11  determination was incorrect for any reason.  A redetermination 
 22.12  An amended determination shall be promptly sent to the applicant 
 22.13  and all base period employers, by mail or electronic 
 22.14  transmission. 
 22.15     If a redetermination an amended determination of benefit 
 22.16  account reduces the weekly unemployment benefit amount or 
 22.17  maximum amount of unemployment benefits available, any 
 22.18  unemployment benefits that have been paid greater than the 
 22.19  applicant was redetermined entitled is considered an overpayment 
 22.20  of unemployment benefits under section 268.18, subdivision 1. 
 22.21     Sec. 22.  Minnesota Statutes 2000, section 268.07, 
 22.22  subdivision 2, is amended to read: 
 22.23     Subd. 2.  [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY 
 22.24  UNEMPLOYMENT BENEFIT AMOUNT AND MAXIMUM AMOUNT OF UNEMPLOYMENT 
 22.25  BENEFITS.] (a) To establish a benefit account, an applicant must 
 22.26  have: 
 22.27     (1) high quarter wage credits of at least $1,000; and 
 22.28     (2) wage credits, in other than the high quarter, of at 
 22.29  least $250.  
 22.30     (b) If an applicant has established a benefit account, the 
 22.31  weekly unemployment benefit amount available during the benefit 
 22.32  year shall be the higher of: 
 22.33     (1) 50 percent of the applicant's average weekly wage 
 22.34  during the base period, to a maximum of 66-2/3 percent of the 
 22.35  state's average weekly wage; or 
 22.36     (2) 50 percent of the applicant's average weekly wage 
 23.1   during the high quarter, to a maximum of the higher of $331 or 
 23.2   50 percent of the state's average weekly wage. 
 23.3      The applicant's average weekly wage under clause (1) shall 
 23.4   be computed by dividing the total wage credits by 52.  The 
 23.5   applicant's average weekly wage under clause (2) shall be 
 23.6   computed by dividing the high quarter wage credits by 13.  
 23.7      (c) The state's maximum weekly unemployment benefit amount 
 23.8   and the applicant's weekly unemployment benefit amount and 
 23.9   maximum amount of unemployment benefits shall be rounded down to 
 23.10  the next lowest whole dollar.  
 23.11     (d) The maximum amount of unemployment benefits available 
 23.12  on any benefit account shall be the lower of: 
 23.13     (1) 33-1/3 percent of the applicant's total wage credits to 
 23.14  a maximum of; or 
 23.15     (2) 26 times the applicant's weekly unemployment benefit 
 23.16  amount.  
 23.17     [EFFECTIVE DATE.] This section is effective September 1, 
 23.18  2001. 
 23.19     Sec. 23.  Minnesota Statutes 2000, section 268.07, 
 23.20  subdivision 3a, is amended to read: 
 23.21     Subd. 3a.  [RIGHT OF APPEAL.] (a) A determination or 
 23.22  redetermination amended determination of a benefit account shall 
 23.23  be final unless an applicant or base period employer within 30 
 23.24  calendar days after the sending of the determination 
 23.25  or redetermination amended determination files an appeal.  Every 
 23.26  determination or redetermination amended determination of a 
 23.27  benefit account shall contain a prominent statement indicating 
 23.28  in clear language the consequences of not appealing.  
 23.29  Proceedings on the appeal shall be conducted in accordance with 
 23.30  section 268.105. 
 23.31     (b) Any applicant or base period employer may appeal from a 
 23.32  determination or redetermination amended determination of a 
 23.33  benefit account on the issue of whether services performed 
 23.34  constitute employment and covered employment.  Proceedings on 
 23.35  the appeal shall be conducted in accordance with section 268.105.
 23.36     Sec. 24.  Minnesota Statutes 2000, section 268.07, 
 24.1   subdivision 3b, is amended to read: 
 24.2      Subd. 3b.  [LIMITATIONS.] (a) A benefit account shall be 
 24.3   established effective the Sunday of the calendar week that the 
 24.4   application for unemployment benefits was filed.  Upon specific 
 24.5   request of an applicant, an application for benefits may be 
 24.6   backdated one calendar week prior to the Sunday of the week the 
 24.7   application was actually filed.  An application shall be 
 24.8   backdated only if the applicant was unemployed throughout the 
 24.9   period of the backdating.  If an individual attempted to file an 
 24.10  application for unemployment benefits, but was prevented from 
 24.11  filing an application by the department, the benefit account 
 24.12  shall be effective the Sunday of the calendar week the 
 24.13  individual first attempted to file an application. 
 24.14     (b) A benefit account, once established, may later be 
 24.15  withdrawn only if: 
 24.16     (1) a new application for unemployment benefits is filed 
 24.17  and a new benefit account is established at the time of the 
 24.18  withdrawal; and 
 24.19     (2) the applicant has not served a waiting week under 
 24.20  section 268.085, subdivision 1, clause (3).  
 24.21     A determination or amended determination pursuant to 
 24.22  section 268.101, that was issued before the withdrawal of the 
 24.23  benefit account, shall remain in effect and shall not be voided 
 24.24  by the withdrawal of the benefit account.  A determination of 
 24.25  disqualification requiring subsequent earnings to satisfy the 
 24.26  disqualification under section 268.095, subdivision 10, shall 
 24.27  apply to the weekly unemployment benefit amount on the new 
 24.28  benefit account. 
 24.29     (c) An application for unemployment benefits shall not be 
 24.30  allowed prior to the Sunday following the expiration of the 
 24.31  benefit year on a prior benefit account.  Except as allowed 
 24.32  under paragraph (b), a applicant may establish only one benefit 
 24.33  account each 52 calendar weeks. 
 24.34     (d) All unemployment benefits shall be available from the 
 24.35  fund only for weeks occurring during the applicant's benefit 
 24.36  year. 
 25.1      [EFFECTIVE DATE.] This section is effective the day 
 25.2   following final enactment. 
 25.3      Sec. 25.  Minnesota Statutes 2000, section 268.085, 
 25.4   subdivision 1, is amended to read: 
 25.5      Subdivision 1.  [ELIGIBILITY CONDITIONS.] An applicant 
 25.6   shall be eligible to receive unemployment benefits for any week 
 25.7   if: 
 25.8      (1) the applicant has an active benefit account and has 
 25.9   filed a continued request for unemployment benefits for that 
 25.10  week pursuant to section 268.086; 
 25.11     (2) the applicant was able to work and was available 
 25.12  for suitable employment, and was actively seeking suitable 
 25.13  employment.  The applicant's weekly unemployment benefit amount 
 25.14  shall be reduced one-fifth for each day the applicant is unable 
 25.15  to work or is unavailable for suitable employment. 
 25.16     This clause shall not apply to an applicant who is in 
 25.17  reemployment assistance training. 
 25.18     The requirement that the applicant be available for 
 25.19  employment and actively seeking suitable employment This clause 
 25.20  shall not apply each day the applicant is on jury duty; 
 25.21     (3) the applicant has served a waiting period of one week 
 25.22  that the applicant is otherwise entitled to some amount of 
 25.23  unemployment benefits.  This clause shall not apply if the 
 25.24  applicant would have been entitled to federal disaster 
 25.25  unemployment assistance because of a disaster in Minnesota, but 
 25.26  for the applicant's establishment of a benefit account under 
 25.27  section 268.07; and 
 25.28     (4) the applicant has been participating in reemployment 
 25.29  assistance services, such as job search and resume writing 
 25.30  classes, if the applicant has been determined in need of 
 25.31  reemployment assistance services by the commissioner, unless 
 25.32  there is good cause for the applicant's failure to participate. 
 25.33     Sec. 26.  Minnesota Statutes 2000, section 268.085, 
 25.34  subdivision 2, is amended to read: 
 25.35     Subd. 2.  [NOT ELIGIBLE.] An applicant shall not be 
 25.36  eligible to receive unemployment benefits for any week: 
 26.1      (1) that occurs before the effective date of a benefit 
 26.2   account; 
 26.3      (2) that occurs in a period when the applicant is a student 
 26.4   in attendance at, or on vacation from a secondary school 
 26.5   including the period between academic years or terms; 
 26.6      (3) that the applicant is incarcerated or performing court 
 26.7   ordered community service.  The applicant's weekly unemployment 
 26.8   benefit amount shall be reduced by one-fifth for each day the 
 26.9   applicant is incarcerated or performing court ordered community 
 26.10  service; 
 26.11     (4) that the applicant is on a voluntary leave of absence, 
 26.12  including a requested period of paid or unpaid vacation.  A 
 26.13  leave of absence is voluntary when work, that the applicant can 
 26.14  perform, is available with the applicant's employer, but the 
 26.15  applicant chooses not to work.  An applicant who is not working 
 26.16  as a result of a vacation period assigned by an employer under:  
 26.17  (i) a uniform vacation shutdown, (ii) a collective bargaining 
 26.18  agreement, or (iii) an established employer policy, shall not be 
 26.19  ineligible under this clause that the applicant fails or refuses 
 26.20  to provide information on an issue of eligibility required under 
 26.21  section 268.101, subdivision 1, paragraph (a), or an issue of 
 26.22  disqualification required under section 268.101, subdivision 1, 
 26.23  paragraph (d); 
 26.24     (5) that the applicant is performing services 32 hours or 
 26.25  more, in employment, covered employment, noncovered employment, 
 26.26  or self-employment regardless of the amount of any earnings; or 
 26.27     (6) with respect to which the applicant is receiving, has 
 26.28  received, or has filed an application for unemployment benefits 
 26.29  under any federal law or the law of any other state.  If the 
 26.30  appropriate agency finally determines that the applicant is not 
 26.31  entitled to the unemployment benefits, this clause shall not 
 26.32  apply. 
 26.33     Sec. 27.  Minnesota Statutes 2000, section 268.085, 
 26.34  subdivision 3, is amended to read: 
 26.35     Subd. 3.  [DEDUCTIBLE PAYMENTS.] (a) An applicant shall not 
 26.36  be eligible to receive unemployment benefits for any week with 
 27.1   respect to which the applicant is receiving, has received, or 
 27.2   has filed for payment in an amount equal to or in excess of the 
 27.3   applicant's weekly unemployment benefit amount in the form of: 
 27.4      (1) a severance payment. pay, bonus pay, vacation pay, sick 
 27.5   pay, and any other money payments, except earnings under 
 27.6   subdivision 5, and back pay under subdivision 6, paid by an 
 27.7   employer because of, upon, or after separation from employment 
 27.8   that are considered wages under section 268.035, subdivision 29, 
 27.9   or United States Code, title 26, section 3121, clause (2) of the 
 27.10  Federal Insurance Contribution Act.  This clause shall apply to 
 27.11  the first four weeks of payment and to one-half of the total 
 27.12  number of any additional weeks of payment.  This clause shall be 
 27.13  applied to the period immediately following the last day of 
 27.14  employment.  The number of weeks of payment shall be determined 
 27.15  as follows: 
 27.16     (i) if the payments are made periodically, the total of the 
 27.17  payments to be received shall be divided by the applicant's last 
 27.18  level of regular weekly pay from the employer; or 
 27.19     (ii) if the payment is made in a lump sum, that sum shall 
 27.20  be divided by the applicant's last level of regular weekly pay 
 27.21  from the employer;. 
 27.22     (2) This clause shall not apply to vacation pay, paid 
 27.23  directly by an employer for vacation periods assigned by the 
 27.24  employer under:  (i) a collective bargaining agreement, (ii) 
 27.25  established employer policy, or (iii) uniform vacation shutdown; 
 27.26  upon permanent separation from employment. 
 27.27     (3) (2) compensation for loss of wages under the workers' 
 27.28  compensation law of this state or any other state or under a 
 27.29  similar law of the United States, or compensation for loss of 
 27.30  wages under any other insurance or fund paid in whole or in part 
 27.31  by an employer;.  If it is finally determined that the applicant 
 27.32  is not entitled to the compensation for loss of wages, then 
 27.33  retroactively this clause shall not apply; however, the issue of 
 27.34  the applicant's ability to work during the period in question 
 27.35  shall then be considered; 
 27.36     (4) (3) pension, retirement, or annuity payments from any 
 28.1   plan contributed to by a base period employer including the 
 28.2   United States government, except social security benefits which 
 28.3   are provided for in subdivision 4.  The base period employer 
 28.4   contributed to the plan if the contribution is excluded from the 
 28.5   definition of wages under section 268.035, subdivision 29, 
 28.6   clause (1), or United States Code, title 26, section 3121, 
 28.7   clause (2), of the Federal Insurance Contribution Act. 
 28.8      If the applicant receives a lump sum pension payment, that 
 28.9   sum shall be divided by the applicant's last level of regular 
 28.10  weekly pay to determine the number of weeks of payment.  The 
 28.11  number of weeks of payment shall be applied to the period 
 28.12  immediately following the last day of employment.  An applicant 
 28.13  shall not be considered to have received the lump sum payment if 
 28.14  the applicant immediately deposits that payment in a qualified 
 28.15  pension plan or account; or 
 28.16     (5) (4) holiday pay or sick pay, paid directly by an 
 28.17  employer. 
 28.18     (b) If the deductible payment is less than the applicant's 
 28.19  weekly unemployment benefit amount, unemployment benefits shall 
 28.20  be reduced by the amount of the payment.  If the computation of 
 28.21  reduced unemployment benefits is not a whole dollar, it shall be 
 28.22  rounded down to the next lowest dollar. 
 28.23     (c) If the appropriate agency finally determines that the 
 28.24  applicant is not entitled to payments, this subdivision shall 
 28.25  not apply.  
 28.26     Sec. 28.  Minnesota Statutes 2000, section 268.085, 
 28.27  subdivision 6, is amended to read: 
 28.28     Subd. 6.  [RECEIPT OF BACK PAY.] (a) Back pay received by 
 28.29  an applicant with respect to any week occurring in the 104 weeks 
 28.30  prior to the payment of the back pay shall be deducted from 
 28.31  unemployment benefits paid for that week. 
 28.32     If an arbitration award, administrative or judicial 
 28.33  decision, or negotiated settlement that provides for back pay 
 28.34  does not specify the period with respect to which it is paid, 
 28.35  the back pay shall be applied to the period immediately 
 28.36  following the last day of employment. 
 29.1      (b) If the back pay is reduced by the amount of 
 29.2   unemployment benefits that have been paid, the amount of back 
 29.3   pay withheld shall be: 
 29.4      (1) paid by the employer to the fund within 30 calendar 
 29.5   days and subject to the same collection procedures that apply to 
 29.6   past due taxes; 
 29.7      (2) applied to unemployment benefit overpayments resulting 
 29.8   from the payment of the back pay; and 
 29.9      (3) credited to the maximum amount of unemployment benefits 
 29.10  available to the applicant in a benefit year that includes the 
 29.11  weeks for which back pay was deducted. 
 29.12     (c) Charges to the employer's tax or reimbursable account 
 29.13  under section 268.047 for Unemployment benefits paid the 
 29.14  applicant shall be removed from the employer's computation of 
 29.15  the tax rate for taxpaying employers and removed from the 
 29.16  reimbursable account for nonprofit and government employers that 
 29.17  have elected to be liable for payments in lieu of taxes in the 
 29.18  calendar quarter the fund receives payment.  
 29.19     (d) Payments to the fund under this subdivision shall be 
 29.20  considered as made by the applicant.  
 29.21     Sec. 29.  Minnesota Statutes 2000, section 268.085, 
 29.22  subdivision 7, is amended to read: 
 29.23     Subd. 7.  [SCHOOL EMPLOYEES.] (a) No wage credits in any 
 29.24  amount from any employment with any educational institution or 
 29.25  institutions earned in any capacity may be used for unemployment 
 29.26  benefit purposes for any week during the period between two 
 29.27  successive academic years or terms if: 
 29.28     (1) the applicant had employment for any educational 
 29.29  institution or institutions in the prior academic year or term; 
 29.30  and 
 29.31     (2) there is a reasonable assurance that the applicant will 
 29.32  have employment for any educational institution or institutions 
 29.33  in the following academic year or term, unless that subsequent 
 29.34  employment is not substantially less favorable than the 
 29.35  employment of the prior academic year or term.  
 29.36     (b) Paragraph (a) shall not apply to an applicant who, at 
 30.1   the end of the prior academic year or term, had an agreement for 
 30.2   a definite period of employment between academic years or terms 
 30.3   in other than an instructional, research, or principal 
 30.4   administrative capacity and the educational institution or 
 30.5   institutions failed to provide that employment.  
 30.6      (c) If unemployment benefits are denied to any applicant 
 30.7   under paragraph (a) who was employed in the prior academic year 
 30.8   or term in other than an instructional, research, or principal 
 30.9   administrative capacity and who was not offered an opportunity 
 30.10  to perform the employment in the following academic year or 
 30.11  term, the applicant shall be entitled to retroactive 
 30.12  unemployment benefits for each week during the period between 
 30.13  academic years or terms that the applicant filed a timely 
 30.14  continued request for unemployment benefits, but unemployment 
 30.15  benefits were denied solely because of paragraph (a).  
 30.16     (d) An educational assistant shall not be considered to be 
 30.17  in an instructional, research, or principal administrative 
 30.18  capacity. 
 30.19     (e) Paragraph (a) shall apply to any vacation period or 
 30.20  holiday recess if the applicant was employed immediately before 
 30.21  the vacation period or holiday recess, and there is a reasonable 
 30.22  assurance that the applicant will be employed immediately 
 30.23  following the vacation period or holiday recess.  
 30.24     (f) This subdivision shall apply to employment with an 
 30.25  educational service agency if the applicant performed the 
 30.26  services at an educational institution or institutions.  
 30.27  "Educational service agency" means a governmental agency or 
 30.28  entity established and operated exclusively for the purpose of 
 30.29  providing services to one or more educational institutions.  
 30.30  This subdivision shall also apply to employment with Minnesota 
 30.31  or a political subdivision, or a nonprofit organization, if the 
 30.32  services are provided to or on behalf of an educational 
 30.33  institution or institutions. 
 30.34     (g) Paragraphs (a) and (e) shall apply beginning the Sunday 
 30.35  of the week that there is a reasonable assurance of employment. 
 30.36     (h) Employment with multiple education institutions shall 
 31.1   be aggregated for purposes of application of this subdivision. 
 31.2      (i) If all of the applicant's employment with any 
 31.3   educational institution or institutions during the prior 
 31.4   academic year or term consisted of on-call employment, and the 
 31.5   applicant has a reasonable assurance of any on-call employment 
 31.6   with any educational institution or institutions for the 
 31.7   following academic year or term, it shall not be considered 
 31.8   substantially less favorable employment. 
 31.9      (j) Paragraph (a) shall also apply to the period between 
 31.10  two regular but not successive terms. 
 31.11     (k) A "reasonable assurance" may be written, oral, implied, 
 31.12  or established by custom or practice. 
 31.13     (l) An "educational institution" is an educational entity 
 31.14  operated by Minnesota or a political subdivision or an 
 31.15  instrumentality thereof, or an educational organization 
 31.16  described in United States Code, title 26, section 501(c)(3) of 
 31.17  the federal Internal Revenue Code, and exempt from income tax 
 31.18  under section 501(a).  
 31.19     [EFFECTIVE DATE.] This section is effective the day 
 31.20  following final enactment. 
 31.21     Sec. 30.  Minnesota Statutes 2000, section 268.085, is 
 31.22  amended by adding a subdivision to read: 
 31.23     Subd. 13a.  [LEAVE OF ABSENCE.] (a) An applicant on a 
 31.24  voluntary leave of absence shall be ineligible for benefits for 
 31.25  the duration of the leave of absence. 
 31.26     A leave of absence is voluntary when work that the 
 31.27  applicant can then perform is available with the applicant's 
 31.28  employer but the applicant chooses not to work. 
 31.29     (b) A period of vacation requested by the applicant, paid 
 31.30  or unpaid, shall be considered a voluntary leave of absence.  A 
 31.31  vacation period assigned by an employer under:  (1) a uniform 
 31.32  vacation shutdown; (2) a collective bargaining agreement; or (3) 
 31.33  an established employer policy, shall not be considered a 
 31.34  voluntary leave of absence. 
 31.35     (c) A leave of absence shall not be considered a quit or a 
 31.36  discharge from employment for purposes of section 268.095. 
 32.1      (d) An applicant who is on a paid leave of absence, whether 
 32.2   the leave of absence is voluntary or involuntary, shall be 
 32.3   ineligible for benefits for the duration of the leave. 
 32.4      (e) This subdivision shall apply to a leave of absence from 
 32.5   a base period employer, an employer during the period between 
 32.6   the end of the base period and the effective date of the benefit 
 32.7   account, or an employer during the benefit year. 
 32.8      Sec. 31.  Minnesota Statutes 2000, section 268.085, 
 32.9   subdivision 14, is amended to read: 
 32.10     Subd. 14.  [ABLE TO WORK DEFINED.] "Able to work" means an 
 32.11  applicant has the physical and mental ability to perform the 
 32.12  usual duties of the applicant's customary usual occupation or 
 32.13  the usual duties of other suitable comparable employment. 
 32.14     Sec. 32.  Minnesota Statutes 2000, section 268.085, 
 32.15  subdivision 15, is amended to read: 
 32.16     Subd. 15.  [AVAILABLE FOR SUITABLE EMPLOYMENT DEFINED.] (a) 
 32.17  "Available for suitable employment" means an applicant is ready 
 32.18  and willing to accept suitable employment in the labor market 
 32.19  area.  The attachment to the work force must be genuine.  An 
 32.20  applicant may restrict availability to suitable employment, but 
 32.21  there must be no other restrictions, either self-imposed or 
 32.22  created by circumstances, temporary or permanent, that prevent 
 32.23  accepting suitable employment. 
 32.24     (b) To be considered "available for suitable employment," a 
 32.25  student must be willing to quit school to accept suitable 
 32.26  employment that would conflict with school attendance. 
 32.27     (c) An applicant who is absent from the labor market area 
 32.28  for personal reasons, other than to search for work, is not 
 32.29  "available for suitable employment." 
 32.30     (d) An applicant who has restrictions on the hours of the 
 32.31  day or days of the week that the applicant can or will work, 
 32.32  that are not normal for the applicant's usual occupation or 
 32.33  other suitable employment, is not "available for suitable 
 32.34  employment."  An applicant whose usual occupation is normally 
 32.35  performed during the daytime must be available for daytime work 
 32.36  employment, if suitable employment is performed during the 
 33.1   daytime, even though the applicant customarily previously worked 
 33.2   the night shift. 
 33.3      (e) An applicant must have transportation throughout the 
 33.4   labor market area to be considered "available for suitable 
 33.5   employment." 
 33.6      Sec. 33.  Minnesota Statutes 2000, section 268.086, 
 33.7   subdivision 1, is amended to read: 
 33.8      Subdivision 1.  [ACTIVE BENEFIT ACCOUNT.] (a) A benefit 
 33.9   account shall be considered active only when an applicant files 
 33.10  continued requests for unemployment benefits in the manner and 
 33.11  within the time periods prescribed.  A benefit account shall be 
 33.12  considered inactive if an applicant stops filing a continued 
 33.13  request or fails to file a continued request within the time 
 33.14  period required.  The benefit account shall be considered 
 33.15  inactive as of the Sunday following the last week or biweekly 
 33.16  period for which a continued request has been timely filed. 
 33.17     (b) A benefit account that is inactive shall be reactivated 
 33.18  the Sunday of the week that the applicant makes a contact with 
 33.19  the department to do so, in the manner prescribed by the 
 33.20  commissioner for reactivating that applicant's benefit account.  
 33.21  Upon specific request of an applicant, a benefit account may be 
 33.22  reactivated effective up to two weeks prior to the week the 
 33.23  applicant made contact with the department to reactivate. 
 33.24     [EFFECTIVE DATE.] This section is effective the day 
 33.25  following final enactment.  
 33.26     Sec. 34.  Minnesota Statutes 2000, section 268.086, 
 33.27  subdivision 7, is amended to read: 
 33.28     Subd. 7.  [IN-PERSON CONTINUED REQUEST FOR UNEMPLOYMENT 
 33.29  BENEFITS.] The commissioner may require any applicant who has 
 33.30  been designated to make a continued request for unemployment 
 33.31  benefits by mail, by telephone, by electronic transmission, or 
 33.32  by mail to appear for a personal interview at a place, time, and 
 33.33  date designated, during which a written continued request for 
 33.34  unemployment benefits form shall be completed and submitted by 
 33.35  the applicant.  
 33.36     An applicant shall be ineligible for unemployment benefits 
 34.1   for the week or biweekly period covered by a continued request 
 34.2   and the benefit account shall be considered inactive if the 
 34.3   applicant fails, without good cause, to comply with the 
 34.4   requirement that the applicant appear for a personal interview 
 34.5   and at that time complete and submit a written continued request 
 34.6   form. 
 34.7      Sec. 35.  Minnesota Statutes 2000, section 268.095, 
 34.8   subdivision 1, is amended to read: 
 34.9      Subdivision 1.  [QUIT.] An applicant who quit employment 
 34.10  shall be disqualified from all unemployment benefits except when:
 34.11     (1) the applicant quit the employment because of a good 
 34.12  reason caused by the employer; 
 34.13     (2) the applicant quit the employment to accept other 
 34.14  covered employment that provided substantially better terms and 
 34.15  conditions of employment, but the applicant did not work long 
 34.16  enough at the other employment to have sufficient subsequent 
 34.17  earnings to satisfy the disqualification that would otherwise be 
 34.18  imposed; 
 34.19     (3) the applicant quit the employment within 30 calendar 
 34.20  days of beginning the employment because the employment was 
 34.21  unsuitable for the applicant; 
 34.22     (4) the employment was unsuitable for the applicant and the 
 34.23  applicant quit to enter reemployment assistance training; 
 34.24     (5) the employment was part time and the applicant had 
 34.25  full-time employment in the base period, that the applicant 
 34.26  separated from because of nondisqualifying reasons, sufficient 
 34.27  to meet the minimum requirements to establish a benefit account 
 34.28  under section 268.07; 
 34.29     (6) the applicant quit because the employer notified the 
 34.30  applicant that the applicant was going to be laid off due to 
 34.31  lack of work within 30 calendar days.  An applicant who quit 
 34.32  employment within 30 calendar days of a notified date of layoff 
 34.33  due to lack of work shall be disqualified from unemployment 
 34.34  benefits through the end of the week that includes the scheduled 
 34.35  date of layoff; or 
 34.36     (7) the applicant quit the employment because the 
 35.1   applicant's serious illness or injury made it medically 
 35.2   necessary that the applicant quit, provided that the applicant 
 35.3   made reasonable efforts to remain in that employment in spite of 
 35.4   the serious illness or injury. 
 35.5      Reasonable efforts to remain in that employment are those a 
 35.6   reasonable individual would make if interested in remaining with 
 35.7   the employer and require that the applicant inform the employer 
 35.8   of the serious illness or injury and request accommodation.  
 35.9      If the applicant's serious illness is chemical dependency, 
 35.10  the applicant has not made reasonable efforts to remain in that 
 35.11  employment if the applicant has previously been diagnosed as 
 35.12  chemically dependent, or has previously had treatment for 
 35.13  chemical dependency, and has failed to make consistent efforts 
 35.14  to control the chemical dependency.; or 
 35.15     (8) domestic abuse of the applicant or the applicant's 
 35.16  minor child, necessitated the applicant's quitting the 
 35.17  employment.  Domestic abuse shall be shown by one or more of the 
 35.18  following: 
 35.19     (i) a court order for protection or other documentation of 
 35.20  equitable relief issued by a court; 
 35.21     (ii) a police record documenting the domestic abuse; 
 35.22     (iii) documentation that the perpetrator of the domestic 
 35.23  abuse has been convicted of the offense of domestic abuse; 
 35.24     (iv) medical documentation of domestic abuse; or 
 35.25     (v) documentation or certification of the domestic abuse 
 35.26  provided by a social worker, member of the clergy, shelter 
 35.27  worker, or other professional who has assisted the applicant in 
 35.28  dealing with the domestic abuse. 
 35.29     Domestic abuse for purposes of this clause shall be defined 
 35.30  under section 518A.01. 
 35.31     Sec. 36.  Minnesota Statutes 2000, section 268.095, 
 35.32  subdivision 2, is amended to read: 
 35.33     Subd. 2.  [QUIT DEFINED.] (a) A quit from employment occurs 
 35.34  when the decision to end the employment was, at the time the 
 35.35  employment ended, the employee's.  
 35.36     (b) An employee who has been notified that the employee 
 36.1   will be discharged in the future, who chooses to end the 
 36.2   employment while employment in any capacity is still available, 
 36.3   shall be considered to have quit the employment. 
 36.4      (c) An employee who seeks to withdraw a previously 
 36.5   submitted notice of quitting shall be considered to have quit 
 36.6   the employment if the employer does not agree that the notice 
 36.7   may be withdrawn. 
 36.8      (d) An applicant who, without good cause, fails to 
 36.9   affirmatively request an additional job assignment after 
 36.10  completion of a temporary job assignment from a staffing service 
 36.11  employer shall be considered to have quit employment. 
 36.12     This paragraph shall apply only if, at the time of 
 36.13  beginning of employment with the staffing service employer, the 
 36.14  applicant signed and was provided a copy of a separate document 
 36.15  written in clear and concise language that informed the 
 36.16  applicant of this paragraph and that unemployment benefits may 
 36.17  be affected. 
 36.18     For purposes of this paragraph, "good cause" shall be a 
 36.19  reason that is significant and would compel an average, 
 36.20  reasonable worker, who would otherwise want an additional 
 36.21  temporary job assignment with the staffing service employer, to 
 36.22  fail to contact the staffing service employer.  The applicant 
 36.23  shall be considered to have good cause if the temporary job 
 36.24  assignment just completed was not suitable employment for the 
 36.25  applicant. 
 36.26     For purposes of this paragraph, a "staffing service 
 36.27  employer" is an employer whose business involves employing 
 36.28  individuals directly for the purpose of furnishing temporary 
 36.29  help to clients of the staffing service. 
 36.30     Sec. 37.  Minnesota Statutes 2000, section 268.095, 
 36.31  subdivision 8, is amended to read: 
 36.32     Subd. 8.  [OFFERS OF EMPLOYMENT.] (a) An applicant shall be 
 36.33  disqualified from all unemployment benefits if the applicant, 
 36.34  without good cause: 
 36.35     (1) failed to apply for available, suitable employment of 
 36.36  which the applicant was advised by the commissioner or an 
 37.1   employer; 
 37.2      (2) failed to accept suitable employment when offered; or 
 37.3      (3) avoided an offer of suitable employment. 
 37.4      (b) "Good cause" is a reason that would cause a reasonable 
 37.5   individual who wants suitable employment to fail to apply for, 
 37.6   accept, or avoid suitable employment.  Good cause includes: 
 37.7      (1) the applicant is employed in other suitable employment; 
 37.8      (2) the applicant is in reemployment assistance training; 
 37.9      (3) the applicant formerly worked for the employer and the 
 37.10  loss of employment occurred prior to the commencement of a labor 
 37.11  dispute, was permanent or for an indefinite period, and the 
 37.12  applicant failed to apply for or accept the employment because a 
 37.13  labor dispute was in progress at the establishment; or 
 37.14     (4) the applicant formerly worked for the employer and quit 
 37.15  that employment because of a good reason caused by the employer. 
 37.16     (c) This subdivision only applies to offers of employment 
 37.17  with a new or a former employer and does not apply to any type 
 37.18  of job transfers, position reassignments, or changes in job 
 37.19  duties or responsibilities during the course of employment with 
 37.20  an employer. 
 37.21     Sec. 38.  Minnesota Statutes 2000, section 268.095, 
 37.22  subdivision 11, is amended to read: 
 37.23     Subd. 11.  [APPLICATION.] (a) This section shall apply to: 
 37.24     (1) all covered employment, full time or part time, 
 37.25  temporary or of limited duration, permanent or of indefinite 
 37.26  duration, that occurred in Minnesota during the base period, the 
 37.27  period between the end of the base period and the effective date 
 37.28  of the benefit account, or the benefit year, except as provided 
 37.29  for in subdivision 1, clause (5); or. 
 37.30     (2) all covered employment occurring in this state, and (b) 
 37.31  Paragraph (a) shall also apply to employment covered under an 
 37.32  unemployment insurance program, (i) of any other state or (ii) 
 37.33  established by an act of Congress. 
 37.34     Sec. 39.  Minnesota Statutes 2000, section 268.101, 
 37.35  subdivision 1, is amended to read: 
 37.36     Subdivision 1.  [NOTIFICATION.] (a) In an application for 
 38.1   unemployment benefits, each applicant shall report the name and 
 38.2   the reason for no longer working for the applicant's most recent 
 38.3   employer, as well as the names of all employers and the reasons 
 38.4   for no longer working for all employers during the applicant's 
 38.5   last 30 days of employment six calendar months prior to the date 
 38.6   of the application.  If the reason reported for no longer 
 38.7   working for any of those employers is other than a layoff due to 
 38.8   lack of work, that shall raise an issue of disqualification that 
 38.9   the department shall determine.  An applicant's failure to 
 38.10  report the name of an employer, or giving an incorrect reason 
 38.11  for no longer working for an employer, shall be considered a 
 38.12  violation of section 268.182, paragraph (b).  
 38.13     In an application, the applicant shall provide all 
 38.14  information necessary to determine the applicant's eligibility 
 38.15  for unemployment benefits under section 268.085.  If the 
 38.16  applicant fails or refuses to provide information necessary to 
 38.17  determine the applicant's eligibility for benefits under section 
 38.18  268.085, the applicant shall be ineligible for benefits under 
 38.19  section 268.085, subdivision 2, until the applicant provides 
 38.20  this required information. 
 38.21     (b) Upon establishment of a benefit account, the 
 38.22  commissioner shall notify, by mail or electronic transmission, 
 38.23  all employers the applicant was employed by during the 
 38.24  applicant's last 30 days of employment prior to making 
 38.25  an required to report on the application and all base period 
 38.26  employers and determined successors to those employers under 
 38.27  section 268.051, subdivision 4.  An in order to provide the 
 38.28  employer shall have ten calendar days after the sending of the 
 38.29  notice an opportunity to raise, in a manner prescribed by the 
 38.30  commissioner, any issue of disqualification or any issue of 
 38.31  eligibility.  An employer shall be informed of the effect that 
 38.32  failure to raise an issue of disqualification within ten 
 38.33  calendar days after sending of the notice, as provided for under 
 38.34  subdivision 2, paragraph (b), may have on the employer charges 
 38.35  under section 268.047.  An issue raised more than ten calendar 
 38.36  days after sending of the notice shall be considered untimely. 
 39.1      (c) Each applicant shall report any employment, loss of 
 39.2   employment, and offers of employment received, during those 
 39.3   weeks the applicant filed continued requests for unemployment 
 39.4   benefits pursuant to section 268.086.  Each applicant who stops 
 39.5   filing continued requests during the benefit year and later 
 39.6   begins filing continued requests during that same benefit year 
 39.7   shall report the name of any employer the applicant worked for 
 39.8   during the period between the filing of continued requests, up 
 39.9   to a period of the last 30 days of employment, and the reason 
 39.10  the applicant stopped working for the employer.  The applicant 
 39.11  shall report any offers of employment during the period between 
 39.12  the filing of continued requests for unemployment benefits.  
 39.13  Those employers from which the applicant has reported a loss of 
 39.14  employment or an offer of employment pursuant to this paragraph 
 39.15  shall be notified by mail or electronic transmission.  An 
 39.16  employer shall have ten calendar days after the sending of the 
 39.17  notice and provided an opportunity to raise, in a manner 
 39.18  prescribed by the commissioner, any issue of disqualification or 
 39.19  any issue of eligibility.  An employer shall be informed of the 
 39.20  effect that failure to raise an issue may have on the 
 39.21  employer charges under section 268.047.  An issue raised more 
 39.22  than ten calendar days after sending of the notice shall be 
 39.23  considered untimely. 
 39.24     (d) The purpose for requiring the applicant to report the 
 39.25  name of all employers and the reason for no longer working for 
 39.26  all those employers during the applicant's "last 30 days of 
 39.27  employment" under paragraphs (a) and (c) is for the commissioner 
 39.28  to obtain information from an applicant raising all issues that 
 39.29  may have the potential of disqualifying the applicant from 
 39.30  unemployment benefits under section 268.095.  If the reason 
 39.31  given by the applicant for no longer working for an employer is 
 39.32  other than a layoff due to lack of work, that shall raise an 
 39.33  issue of disqualification and the applicant shall be required, 
 39.34  as part of the determination process under subdivision 2, 
 39.35  paragraph (a), to state all the facts about the cause for no 
 39.36  longer working for the employer, if known.  If the applicant 
 40.1   fails or refuses to provide this information, the applicant 
 40.2   shall be ineligible for benefits under section 268.085, 
 40.3   subdivision 2, until the applicant provides this required 
 40.4   information. 
 40.5      Sec. 40.  Minnesota Statutes 2000, section 268.101, 
 40.6   subdivision 2, is amended to read: 
 40.7      Subd. 2.  [DISQUALIFICATION DETERMINATION.] (a) The 
 40.8   commissioner shall determine any issue of disqualification 
 40.9   timely raised by an employer, and mail to the applicant and that 
 40.10  employer at the last known address a determination of 
 40.11  disqualification or a determination of nondisqualification, as 
 40.12  is appropriate.  The determination shall state the effect on 
 40.13  employer charges under section 268.047. 
 40.14     (b) (a) The commissioner shall determine any issue of 
 40.15  disqualification raised by information required from an 
 40.16  applicant under subdivision 1, paragraph (a) or (c), and mail to 
 40.17  the applicant and employer at the last known address a 
 40.18  determination of disqualification or a determination of 
 40.19  nondisqualification, as is appropriate.  The determination shall 
 40.20  state the effect on the employer charges under section 268.047.  
 40.21  A determination shall be made pursuant to this paragraph only on 
 40.22  those issues involving the applicant's last 30 days of 
 40.23  employment and shall be made even if a notified employer has not 
 40.24  raised the issue of disqualification. 
 40.25     (c) (b) The commissioner shall determine any untimely issue 
 40.26  of disqualification raised by an employer and mail to the 
 40.27  applicant and that employer at the last known address a 
 40.28  determination of disqualification or a determination of 
 40.29  nondisqualification as is appropriate.  The determination shall 
 40.30  state the effect on the employer charges under section 268.047.  
 40.31     If the a base period employer: 
 40.32     (1) was not the applicant's most recent employer prior to 
 40.33  the application for unemployment benefits; 
 40.34     (2) did not employ the applicant during the applicant's 
 40.35  last 30 days of employment six calendar months prior to the 
 40.36  applicant's application for unemployment benefits, but only 
 41.1   employed the applicant for periods prior to that,; and 
 41.2      (3) did not raise an issue of disqualification within ten 
 41.3   calendar days of notification under subdivision 1, paragraph 
 41.4   (b); then any exception to employer charges under section 
 41.5   268.047, subdivisions 2 and 3, shall begin the Sunday two weeks 
 41.6   following the week that the untimely issue of disqualification 
 41.7   was raised by the employer. 
 41.8      (d) (c) If any time within 24 months from the establishment 
 41.9   of a benefit account the commissioner finds that an applicant 
 41.10  failed to report any employment, loss of employment, or offers 
 41.11  of employment that were required to be provided by the applicant 
 41.12  under this section, the commissioner shall determine any issue 
 41.13  of disqualification on that loss of employment or offer of 
 41.14  employment and mail to the applicant and involved employer at 
 41.15  the last known address a determination of disqualification or a 
 41.16  determination of nondisqualification, as is appropriate.  The 
 41.17  determination shall state the effect on the employer charges 
 41.18  under section 268.047. 
 41.19     This paragraph shall not prevent the imposition of any 
 41.20  penalty under section 268.18, subdivision 2, or 268.182. 
 41.21     (e) (d) An issue of disqualification shall be determined 
 41.22  based upon that information required of an applicant, any 
 41.23  information that may be obtained from an applicant or employer, 
 41.24  and information from any other source, without regard to any 
 41.25  common law burden of proof.  
 41.26     (f) (e) A determination of disqualification or a 
 41.27  determination of nondisqualification shall be final unless an 
 41.28  appeal is filed by the applicant or notified employer within 30 
 41.29  calendar days after mailing.  The determination shall contain a 
 41.30  prominent statement indicating the consequences of not appealing.
 41.31  Proceedings on the appeal shall be conducted in accordance with 
 41.32  section 268.105. 
 41.33     (g) (f) An issue of disqualification for purposes of this 
 41.34  section shall include any reason for no longer working for an 
 41.35  employer other than a layoff due to lack of work, any question 
 41.36  of a disqualification from unemployment benefits under section 
 42.1   268.095, any question of an exception to disqualification under 
 42.2   section 268.095, any question of unemployment benefit charge to 
 42.3   effect on an employer under section 268.047, and any question of 
 42.4   an otherwise imposed disqualification that an applicant has 
 42.5   satisfied under section 268.095, subdivision 10.  
 42.6      (h) (g) Regardless of the requirements of this subdivision, 
 42.7   the commissioner is not required to mail to an applicant a 
 42.8   determination where the applicant has satisfied any otherwise 
 42.9   potential disqualification under section 268.095, subdivision 10.
 42.10     Sec. 41.  Minnesota Statutes 2000, section 268.105, 
 42.11  subdivision 7, is amended to read: 
 42.12     Subd. 7.  [JUDICIAL REVIEW.] (a) The Minnesota court of 
 42.13  appeals shall, by writ of certiorari to the commissioner, review 
 42.14  the decision of the commissioner provided a petition for the 
 42.15  writ is filed with the court and a copy is served upon the 
 42.16  commissioner and any other involved party within 30 calendar 
 42.17  days of the mailing of the commissioner's decision.  
 42.18     (b) Any employer petitioning for a writ of certiorari shall 
 42.19  pay to the court the required filing fee and upon the service of 
 42.20  the writ shall furnish a cost bond to the commissioner in 
 42.21  accordance with the rules of civil appellate procedure.  If the 
 42.22  employer requests a written transcript of the testimony received 
 42.23  at the evidentiary hearing conducted pursuant to subdivision 1, 
 42.24  the employer shall pay to the commissioner the cost of preparing 
 42.25  the transcript. 
 42.26     (c) Upon issuance by the Minnesota court of appeals of a 
 42.27  writ of certiorari as a result of an applicant's petition, the 
 42.28  commissioner shall furnish to the applicant at no cost a written 
 42.29  transcript of the testimony received at the evidentiary hearing 
 42.30  conducted pursuant to subdivision 1, and, if requested, a copy 
 42.31  of all exhibits entered into evidence.  No filing fee or cost 
 42.32  bond shall be required of an applicant petitioning the Minnesota 
 42.33  court of appeals for a writ of certiorari.  
 42.34     (d) The commissioner shall be considered the primary 
 42.35  responding party to any judicial action involving the 
 42.36  commissioner's decision and the case title shall be, "In Re the 
 43.1   matter of:  (named petitioner) and the commissioner of economic 
 43.2   security.".  The commissioner may be represented by an attorney 
 43.3   who is a classified employee of the department designated by the 
 43.4   commissioner for that purpose. 
 43.5      Sec. 42.  Minnesota Statutes 2000, section 268.131, 
 43.6   subdivision 2, is amended to read: 
 43.7      Subd. 2.  [COOPERATION WITH FOREIGN GOVERNMENTS.] The 
 43.8   commissioner is authorized to enter into or cooperate in 
 43.9   arrangements whereby facilities and services provided under 
 43.10  sections 268.03 to 268.23 and facilities and services provided 
 43.11  under the unemployment insurance program of any foreign 
 43.12  government, may be used for the taking of applications for 
 43.13  unemployment benefits and continued claims requests and the 
 43.14  payment of unemployment benefits under this law or under a 
 43.15  similar law of a foreign government.  
 43.16     Sec. 43.  Minnesota Statutes 2000, section 268.18, 
 43.17  subdivision 2b, is amended to read: 
 43.18     Subd. 2b.  [INTEREST.] (a) Beginning January 1, 2002, On 
 43.19  any unemployment benefits fraudulently obtained, and any penalty 
 43.20  amounts assessed under subdivision 2, the commissioner shall may 
 43.21  assess interest at the rate of 1-1/2 percent per month on any 
 43.22  amount that remains unpaid 30 calendar days after the date of 
 43.23  the determination of overpayment by fraud.  A determination of 
 43.24  overpayment by fraud shall state that interest shall be assessed.
 43.25     (b) If this subdivision became effective after the date of 
 43.26  the determination, or the determination did not state that 
 43.27  interest shall be assessed, interest shall be assessed beginning 
 43.28  30 calendar days after written notification to the applicant. 
 43.29     Sec. 44.  Minnesota Statutes 2000, section 268.184, is 
 43.30  amended to read: 
 43.31     268.184 [EMPLOYER MISCONDUCT; PENALTY.] 
 43.32     (a) If the commissioner finds that any employer or any 
 43.33  employee, officer, or agent of any employer, is in collusion 
 43.34  with any applicant for the purpose of assisting the applicant to 
 43.35  receive unemployment benefits illegally, the employer shall be 
 43.36  penalized $500 or the amount of unemployment benefits determined 
 44.1   to be overpaid, whichever is greater. 
 44.2      (b) If the commissioner finds that any employer or any 
 44.3   employee, officer, or agent of an employer has made (1) a false 
 44.4   statement or representation knowing it to be false, or (2) has 
 44.5   made a false statement or representation without a good faith 
 44.6   belief as to correctness of the statement or representation, or 
 44.7   (3) who knowingly fails to disclose a material fact, to prevent 
 44.8   or reduce the payment of unemployment benefits to any applicant 
 44.9   or to reduce or prevent a charge the effects of unemployment 
 44.10  benefits to paid on its tax or reimbursable account, the 
 44.11  employer shall be penalized $500. 
 44.12     (c) Penalties under this section shall be in addition to 
 44.13  any other penalties and subject to the same collection 
 44.14  procedures that apply to past due taxes.  Penalties shall be 
 44.15  paid to the department within 30 calendar days of assessment and 
 44.16  credited to the contingent account. 
 44.17     (d) The assessment of the penalty shall be final unless the 
 44.18  employer files an appeal within 30 calendar days after the 
 44.19  sending of notice of the penalty to the employer by mail or 
 44.20  electronic transmission.  Proceedings on the appeal shall be 
 44.21  conducted in accordance with section 268.105. 
 44.22     (e) Any employer or any officer or agent of an employer or 
 44.23  any other individual who makes a false statement or 
 44.24  representation knowing it to be false, or who knowingly fails to 
 44.25  disclose a material fact, to prevent or reduce the payment of 
 44.26  unemployment benefits to any applicant, is guilty of a gross 
 44.27  misdemeanor unless the unemployment benefit underpayment exceeds 
 44.28  $500, in that case the individual is guilty of a felony.  
 44.29     Sec. 45.  Minnesota Statutes 2000, section 268.192, 
 44.30  subdivision 1, is amended to read: 
 44.31     Subdivision 1.  [WAIVER OF RIGHTS VOID.] Any agreement by 
 44.32  an individual to waive, release, or commute rights to 
 44.33  unemployment benefits or any other rights under sections 268.03 
 44.34  to 268.23 shall be void.  Any agreement by an employee to pay 
 44.35  all or any portion of an employer's taxes, shall be void.  No 
 44.36  employer shall directly or indirectly make or require or accept 
 45.1   any deduction from wages to pay the employer's taxes, require or 
 45.2   accept any waiver of any right or in any manner obstruct or 
 45.3   impede an application or continued claim request for 
 45.4   unemployment benefits.  Any employer or officer or agent of any 
 45.5   employer who violates any portion of this subdivision shall, for 
 45.6   each offense, be guilty of a misdemeanor.  
 45.7      Sec. 46.  Minnesota Statutes 2000, section 268.6715, is 
 45.8   amended to read: 
 45.9      268.6715 [1997 MINNESOTA EMPLOYMENT AND ECONOMIC 
 45.10  DEVELOPMENT PROGRAM.] 
 45.11     The 1997 Minnesota employment and economic development 
 45.12  program is established to assist businesses and communities to 
 45.13  create jobs that provide the wages, benefits, and on-the-job 
 45.14  training opportunities necessary to help low-wage workers and 
 45.15  people transitioning from public assistance to get and retain 
 45.16  jobs, and to help their families to move out of poverty.  
 45.17  Employment obtained under this program is not excluded from 
 45.18  included in the definition of "noncovered employment" by section 
 45.19  268.04 268.035, subdivision 12 20, clause (10), paragraph 
 45.20  (d) (11). 
 45.21     Sec. 47.  Minnesota Statutes 2000, section 268.976, 
 45.22  subdivision 1, is amended to read: 
 45.23     Subdivision 1.  [EARLY WARNING INDICATORS.] The 
 45.24  commissioner, in cooperation with the commissioners of revenue 
 45.25  and trade and economic development, shall establish and oversee 
 45.26  an early warning system to identify industries and businesses 
 45.27  likely to experience large losses in employment including a 
 45.28  plant closing or a substantial layoff, by collecting and 
 45.29  analyzing information which may include, but not be limited to, 
 45.30  products and markets experiencing declining growth rates, 
 45.31  companies and industries subject to competition from production 
 45.32  in low wage counties, changes in ownership, layoff and 
 45.33  employment patterns, payments of unemployment contributions 
 45.34  taxes, and state tax payments.  The commissioner may request the 
 45.35  assistance of businesses, business organizations, and trade 
 45.36  associations in identifying businesses, industries, and specific 
 46.1   establishments that are likely to experience large losses in 
 46.2   employment.  The commissioner may request information and other 
 46.3   assistance from other state agencies for the purposes of this 
 46.4   subdivision. 
 46.5      Sec. 48.  [INSTRUCTIONS TO REVISOR.] 
 46.6      The revisor of statutes shall renumber each section of 
 46.7   Minnesota Statutes listed in column A with the number listed in 
 46.8   column B.  The revisor shall also make necessary cross-reference 
 46.9   changes consistent with the renumbering. 
 46.10       Column A              Column B
 46.11       268.035, subd. 5      268.035, subd. 26a
 46.12       268.035, subd. 8      268.035, subd. 2a
 46.13       268.095, subd. 4a     268.095, subd. 6a
 46.14       268.101, subd. 7      268.19, subd. 2
 46.15       268.198               268.26 
 46.16     In Minnesota Statutes, sections 268.001 to 268.23: 
 46.17     The term "or the Federal Economic Security Law" shall be 
 46.18  changed to "or Federal Unemployment Insurance Program." 
 46.19     The term "section 268.03 to 268.23" shall be changed to 
 46.20  "the Minnesota Unemployment Insurance Program Law." 
 46.21     The term "administer sections 268.03 to 268.23" shall be 
 46.22  changed to "administer the Minnesota unemployment insurance 
 46.23  program and the job service." 
 46.24     The term "administration of sections 268.03 to 268.23" 
 46.25  shall be changed to "administration of the Minnesota 
 46.26  unemployment insurance program and the job service." 
 46.27     The term "economic security administration account" shall 
 46.28  be changed to "administration account." 
 46.29     The term "economic security contingent account" shall be 
 46.30  changed to "contingent account." 
 46.31     The term "notwithstanding" shall be changed to "regardless 
 46.32  of." 
 46.33     Sec. 49.  [REPEALER.] 
 46.34     Laws 1999, chapter 107, section 22, is repealed.