HF 898

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to unemployment insurance; conforming various 
  1.3             provisions to federal requirements; making technical 
  1.4             and housekeeping changes; amending Minnesota Statutes 
  1.5             2004, sections 268.03, subdivision 1; 268.035, 
  1.6             subdivisions 9, 13, 14, 20, 21, 26; 268.042, 
  1.7             subdivision 1; 268.043; 268.044, subdivisions 2, 3; 
  1.8             268.051, subdivisions 1, 4, 6, 7, by adding a 
  1.9             subdivision; 268.052, subdivision 2; 268.053, 
  1.10            subdivision 1; 268.065, subdivision 2; 268.069, 
  1.11            subdivision 1; 268.07, subdivision 3b; 268.085, 
  1.12            subdivisions 1, 2, 3, 5, 12; 268.086, subdivisions 2, 
  1.13            3; 268.095, subdivisions 1, 4, 7, 8, 10, 11; 268.101, 
  1.14            subdivisions 1, 3a; 268.103, subdivision 2; 268.105; 
  1.15            268.145, subdivision 1; 268.18, subdivisions 1, 2, 2b; 
  1.16            268.182, subdivision 2; 268.184, subdivisions 1, 2, by 
  1.17            adding a subdivision; proposing coding for new law in 
  1.18            Minnesota Statutes, chapter 268; repealing Minnesota 
  1.19            Statutes 2004, sections 268.045, subdivisions 2, 3, 4; 
  1.20            268.086, subdivision 4; Laws 1997, chapter 66, section 
  1.21            64, subdivision 1; Minnesota Rules, parts 3310.2926; 
  1.22            3310.5000; 3315.0910, subpart 9; 3315.1020; 3315.1301; 
  1.23            3315.1315, subparts 1, 2, 3; 3315.1650; 3315.2210; 
  1.24            3315.3210; 3315.3220. 
  1.25  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.26                             ARTICLE 1 
  1.27                   FEDERAL CONFORMITY PROVISIONS 
  1.28     Section 1.  [268.0435] [REPORTING REQUIREMENTS OF LEASED 
  1.29  WORKERS.] 
  1.30     (a) A taxpaying employer that contracts with a person to 
  1.31  have that person obtain all or part of the taxpaying employer's 
  1.32  workforce and provide workers to the taxpaying employer for a 
  1.33  fee must report the workers on the taxpaying employer's wage 
  1.34  detail report under section 268.044.  A taxpaying employer that 
  1.35  violates this paragraph is subject to the penalties under 
  2.1   section 268.184, subdivision 1a.  Penalties shall be credited to 
  2.2   the administration account to be used to ensure integrity in the 
  2.3   unemployment insurance program. 
  2.4      (b) Any person who contracts with a taxpaying employer to 
  2.5   obtain all or part of the taxpaying employer's workforce and 
  2.6   provides workers to the taxpaying employer for a fee must not 
  2.7   report the workers on its own wage detail report under section 
  2.8   268.044.  Any person who violates this paragraph is subject to 
  2.9   the penalties under section 268.184, subdivision 1a.  Penalties 
  2.10  shall be credited to the administration account to be used to 
  2.11  ensure integrity in the unemployment insurance program. 
  2.12     (c) Any contract or agreement subject to paragraphs (a) and 
  2.13  (b) must specifically set out the taxpaying employer's 
  2.14  obligation under paragraph (a).  If a contract or agreement 
  2.15  fails to specifically set out the taxpaying employer's 
  2.16  obligation under paragraph (a), and the taxpaying employer fails 
  2.17  to report the workers under section 268.044, the person the 
  2.18  taxpaying employer contracts with shall be subject to the 
  2.19  penalties under section 268.184, subdivision 1a.  Penalties 
  2.20  shall be credited to the administration account to be used to 
  2.21  ensure integrity in the unemployment insurance program. 
  2.22     (d) This section applies to, but is not limited to, persons 
  2.23  registered under section 79.255, but does not apply to persons 
  2.24  that obtain an exemption from registration under section 79.255, 
  2.25  subdivision 9. 
  2.26     [EFFECTIVE DATE.] This section is effective January 1, 2006.
  2.27     Sec. 2.  [268.0436] [SINGLE MEMBER LIMITED LIABILITY 
  2.28  COMPANIES.] 
  2.29     If the only member of a limited liability company is a 
  2.30  corporation, and the limited liability company is disregarded 
  2.31  for purposes of filing federal corporate income tax, all the 
  2.32  workers performing services for the limited liability company 
  2.33  must be reported on the corporation's wage detail report under 
  2.34  section 268.044.  A corporation that violates this section shall 
  2.35  be subject to the penalties under section 268.184, subdivision 
  2.36  1a.  Penalties shall be credited to the administration account 
  3.1   to be used to ensure integrity in the unemployment insurance 
  3.2   program. 
  3.3      [EFFECTIVE DATE.] This section is effective for wage detail 
  3.4   reports for the calendar quarter starting January 1, 2006. 
  3.5      Sec. 3.  Minnesota Statutes 2004, section 268.044, 
  3.6   subdivision 3, is amended to read: 
  3.7      Subd. 3.  [MISSING OR ERRONEOUS INFORMATION.] (a) Any 
  3.8   employer who that submits the wage detail report, but fails to 
  3.9   include any all employee information or enters erroneous 
  3.10  information, shall be subject to an administrative service fee 
  3.11  of $25 for each employee for whom the information is partially 
  3.12  missing or erroneous.  
  3.13     (b) Any employer that submits the wage detail report, but 
  3.14  fails to include an employee, shall be subject to an 
  3.15  administrative service penalty equal to two percent of the total 
  3.16  wages for each employee for whom the information is completely 
  3.17  missing. 
  3.18     (c) An administrative service fee may be compromised under 
  3.19  section 268.067 or penalty under this subdivision shall be 
  3.20  canceled if the commissioner determines that the failure or 
  3.21  error by the employer was inadvertent occurred because of 
  3.22  ignorance or inadvertence. 
  3.23     Sec. 4.  Minnesota Statutes 2004, section 268.051, 
  3.24  subdivision 1, is amended to read: 
  3.25     Subdivision 1.  [PAYMENTS.] (a) Unemployment insurance 
  3.26  taxes and any additional assessments, fees, or surcharges shall 
  3.27  accrue and become payable by each employer for each calendar 
  3.28  year on the taxable wages that the employer paid to employees in 
  3.29  covered employment, except for:  
  3.30     (1) nonprofit organizations that elect to make 
  3.31  reimbursements as provided in section 268.053; and 
  3.32     (2) the state of Minnesota and political subdivisions that 
  3.33  make reimbursements, unless they elect to pay taxes as provided 
  3.34  in section 268.052.  
  3.35     Except as allowed under section 268.0511, each employer 
  3.36  shall pay taxes quarterly, at the employer's assigned tax 
  4.1   rate under subdivision 6, on the taxable wages paid to each 
  4.2   employee.  The commissioner shall compute the tax due from the 
  4.3   wage detail report required under section 268.044 and notify the 
  4.4   employer of the tax due.  The taxes and any additional 
  4.5   assessments, fees, or surcharges shall be paid to the trust fund 
  4.6   and must be received by the department on or before the last day 
  4.7   of the month following the end of the calendar quarter. 
  4.8      (b) The tax amount computed, if not a whole dollar, shall 
  4.9   be rounded down to the next lower whole dollar. 
  4.10     (c) If for any reason the wages on the wage detail report 
  4.11  under section 268.044 are adjusted for any quarter, the 
  4.12  commissioner shall recompute the taxes due for that quarter and 
  4.13  assess the employer for any amount due or credit the employer as 
  4.14  appropriate. 
  4.15     Sec. 5.  Minnesota Statutes 2004, section 268.051, 
  4.16  subdivision 4, is amended to read: 
  4.17     Subd. 4.  [EXPERIENCE RATING HISTORY TRANSFER.] (a) When: 
  4.18     (1) a taxpaying employer acquires all of the organization, 
  4.19  trade or business, or substantially all the assets workforce of 
  4.20  another taxpaying employer,; and 
  4.21     (2) there is 25 percent or more common ownership, directly 
  4.22  or indirectly, or there is substantially common management or 
  4.23  control between the predecessor and successor, the experience 
  4.24  rating history of the predecessor employer shall be transferred 
  4.25  as of the date of acquisition to the successor employer for the 
  4.26  purpose of computing a tax rate. 
  4.27     (b) When a taxpaying employer acquires a distinct severable 
  4.28  portion of the organization, trade, business, or assets that is 
  4.29  less than substantially all of the employing enterprises of 
  4.30  another employer, and there is 25 percent or more common 
  4.31  ownership, directly or indirectly, between the predecessor and 
  4.32  successor, the successor employer shall acquire that percentage 
  4.33  of a predecessor's experience rating equal to that percentage of 
  4.34  the predecessor's employment positions it has obtained, and the 
  4.35  predecessor employer shall retain that percentage of the 
  4.36  experience rating equal to that percentage of the employment 
  5.1   positions that it has retained, if the successor files an 
  5.2   application by electronic transmission, in a format prescribed 
  5.3   by the commissioner, for the transfer of a percentage of the 
  5.4   experience rating of the predecessor within 180 calendar days 
  5.5   from the date of acquisition, that furnishes sufficient 
  5.6   information to substantiate the acquisition and to assign the 
  5.7   appropriate percentage of the experience rating. When: 
  5.8      (1) a taxpaying employer acquires a portion, but less than 
  5.9   all, of the organization, trade or business, or workforce of 
  5.10  another taxpaying employer; and 
  5.11     (2) there is 25 percent or more common ownership or there 
  5.12  is substantially common management or control between the 
  5.13  predecessor and successor, the successor employer shall acquire, 
  5.14  as of the date of acquisition, the experience rating history 
  5.15  attributable to the portion it acquired, and the predecessor 
  5.16  employer shall retain the experience rating history attributable 
  5.17  to the portion that it has retained.  If the commissioner 
  5.18  determines that sufficient information is not available to 
  5.19  substantiate that a distinct severable portion was acquired and 
  5.20  to assign the appropriate distinct severable portion of the 
  5.21  experience rating history, the commissioner shall assign the 
  5.22  successor employer that percentage of the predecessor employer's 
  5.23  experience rating history equal to that percentage of the 
  5.24  employment positions it has obtained, and the predecessor 
  5.25  employer shall retain that percentage of the experience rating 
  5.26  history equal to the percentage of the employment positions it 
  5.27  has retained. 
  5.28     (c) The term "common ownership" for purposes of this 
  5.29  subdivision includes ownership by a spouse, parent, grandparent, 
  5.30  child, grandchild, brother, sister, aunt, uncle, niece, nephew, 
  5.31  or first cousin, by birth or by marriage. 
  5.32     (d) Each successor employer that is subject to paragraph 
  5.33  (a) or (b) must notify the commissioner of the acquisition by 
  5.34  electronic transmission, in a format prescribed by the 
  5.35  commissioner, within 30 calendar days of the date of 
  5.36  acquisition.  Any successor employer that fails to notify the 
  6.1   commissioner is subject to the penalties under section 268.184, 
  6.2   subdivision 1a, if the successor's experience rating was lower 
  6.3   than the predecessor's experience rating at the time of the 
  6.4   acquisition.  Penalties shall be credited to the administration 
  6.5   account to be used to ensure integrity in the unemployment 
  6.6   insurance program. 
  6.7      (d) (e) If the successor employer under paragraphs (a) and 
  6.8   (b) had an experience rating at the time of the acquisition, the 
  6.9   transferred experience rating history of the predecessor shall 
  6.10  be combined with the successor's experience rating history, as 
  6.11  of the date of acquisition, for purposes of 
  6.12  computing recomputing a tax rate. 
  6.13     (e) (f) If there has been a transfer of an experience 
  6.14  rating history under paragraph (a) or (b), employment with a 
  6.15  predecessor employer shall not be considered to have been 
  6.16  terminated if similar employment is offered by the successor 
  6.17  employer and accepted by the employee. 
  6.18     (f) (g) The commissioner, upon the commissioner's own 
  6.19  motion or upon application notification of an employer, or upon 
  6.20  the commissioner's own motion if the employer fails to provide 
  6.21  the required notification, shall determine if an employer is a 
  6.22  successor within the meaning of this subdivision and shall send 
  6.23  the determination to the employer by mail or electronic 
  6.24  transmission.  The determination shall be final unless a protest 
  6.25  is filed by the employer within 30 calendar days after sending 
  6.26  the determination.  Upon receipt of a protest, the commissioner 
  6.27  shall review all available evidence and determine whether an 
  6.28  error has been made.  The commissioner shall either affirm or 
  6.29  make a redetermination on whether the employer is a successor 
  6.30  within the meaning of this subdivision and send the employer, by 
  6.31  mail or electronic transmission, the affirmation or 
  6.32  redetermination.  The affirmation or redetermination shall be 
  6.33  final unless an appeal is filed by the employer within 30 
  6.34  calendar days after the sending of the affirmation or 
  6.35  redetermination.  Proceedings on the appeal shall be conducted 
  6.36  in accordance with section 268.105. 
  7.1      (g) The commissioner may, as the result of any 
  7.2   determination or decision regarding shall, after determining the 
  7.3   issue of succession or nonsuccession, recompute the tax 
  7.4   rate under subdivision 6 of all employers affected by the 
  7.5   determination or decision for any year, including the year of 
  7.6   the acquisition and subsequent years, that is affected by the 
  7.7   transfer or nontransfer of part or all of the experience 
  7.8   rating.  This paragraph does not apply to rates that have become 
  7.9   final before the filing of an application for the transfer of a 
  7.10  severable portion of the experience rating under paragraph (b).  
  7.11  The commissioner shall send the recomputed tax rate to all 
  7.12  affected employers by mail or electronic transmission.  Any 
  7.13  affected employer may protest the recomputed tax rate in 
  7.14  accordance with the procedures in subdivision 6, paragraph (c). 
  7.15     (h) Should an employer not have been in operation long 
  7.16  enough to qualify for an experience rating under subdivision 3, 
  7.17  paragraph (a), The "experience rating history" for purposes of 
  7.18  this subdivision shall consist of and subdivision 4a means those 
  7.19  factors set out in subdivision 3, paragraph (b), that normally 
  7.20  make up an experience rating, without the 12-month minimum. 
  7.21     For purposes of this chapter, an "acquisition" means 
  7.22  anything that results in the obtaining by the successor 
  7.23  employer, in any way or manner, of the organization, trade or 
  7.24  business, or workforce of the predecessor employer. 
  7.25     A "distinct severable portion" in paragraph (b) means a 
  7.26  location or unit separately identifiable within the employer's 
  7.27  wage detail report under section 268.044. 
  7.28     (i) If the commissioner finds that a transaction was done, 
  7.29  in whole or in part, to avoid an experience rating or the 
  7.30  transfer of an experience rating, the commissioner may transfer 
  7.31  all or part of the experience rating regardless of the 
  7.32  requirements or limitations of paragraphs (a) and (b).  This 
  7.33  shall include the transferring of employees from the payroll of 
  7.34  an employer with a higher experience rating to the payroll of an 
  7.35  employer with a lower experience rating. 
  7.36     (j) Regardless of the ownership, management, or control 
  8.1   requirements of paragraph (a), if there is an acquisition or 
  8.2   merger of a publicly held corporation by or with another 
  8.3   publicly held corporation the experience ratings rating 
  8.4   histories of the corporations shall be combined as of the date 
  8.5   of acquisition or merger for the purpose of computing 
  8.6   recomputing a tax rate. 
  8.7      (j) This subdivision does not apply to contracts covered 
  8.8   under section 268.0435. 
  8.9      Sec. 6.  Minnesota Statutes 2004, section 268.051, is 
  8.10  amended by adding a subdivision to read: 
  8.11     Subd. 4a.  [ACTIONS THAT AVOID TAXES.] (a) If the 
  8.12  commissioner determines that any action was done, in whole or in 
  8.13  part, to avoid: 
  8.14     (1) an experience rating history; 
  8.15     (2) the transfer of an experience rating history; or 
  8.16     (3) the assignment of a tax rate for new employers under 
  8.17  subdivision 5, paragraph (a) or (b), the commissioner, to insure 
  8.18  that the trust fund receives all the taxes that would have been 
  8.19  received had the action not occurred, may, effective the date of 
  8.20  the action, transfer all or part of an experience rating history 
  8.21  and recompute the tax rate, or assign the appropriate new 
  8.22  employer tax rate. 
  8.23     (b) This subdivision shall apply to any action between 
  8.24  persons regardless of whether there is any commonality of 
  8.25  ownership, management, or control between the persons.  The 
  8.26  authority granted to the commissioner under this subdivision is 
  8.27  in addition to any other authority granted to the commissioner. 
  8.28     Sec. 7.  Minnesota Statutes 2004, section 268.051, 
  8.29  subdivision 6, is amended to read: 
  8.30     Subd. 6.  [NOTICE OF TAX RATE.] (a) On or before each 
  8.31  December 15, the commissioner shall notify each employer by mail 
  8.32  or electronic transmission of the employer's tax rate, along 
  8.33  with any additional assessments, fees, or surcharges, for the 
  8.34  following calendar year.  The notice shall contain the base tax 
  8.35  rate and the factors used in determining the employer's 
  8.36  experience rating.  Unless a protest of the tax rate is made, 
  9.1   the computed tax rate shall be final, except for fraud or 
  9.2   recomputation required under subdivision 4 or 4a, and shall be 
  9.3   the rate at which taxes shall be paid.  A recomputed tax rate 
  9.4   under subdivision 4 or 4a shall be the rate applicable for the 
  9.5   quarter that includes the date of acquisition and any quarter 
  9.6   thereafter during the calendar year in which the acquisition 
  9.7   occurred.  The tax rate shall not be subject to collateral 
  9.8   attack by way of claim for a credit adjustment or refund, or 
  9.9   otherwise.  
  9.10     (b) If the legislature, subsequent to the sending of the 
  9.11  tax rate, changes any of the factors used to determine the rate, 
  9.12  the earlier notice shall be void.  A new tax rate based on the 
  9.13  new factors shall be computed and sent to the employer.  
  9.14     (c) A review of an employer's tax rate may be obtained by 
  9.15  the employer filing a protest within 30 calendar days from the 
  9.16  date the tax rate notice was sent to the employer.  Upon receipt 
  9.17  of the protest, the commissioner shall review the tax rate to 
  9.18  determine whether or not there has been any error in computation 
  9.19  or assignment of the tax rate.  The commissioner shall either 
  9.20  affirm or make a redetermination of the rate and a notice of the 
  9.21  affirmation or redetermination shall be sent to the employer by 
  9.22  mail or electronic transmission.  The affirmation or 
  9.23  redetermination shall be final unless the employer files an 
  9.24  appeal within 30 calendar days after the date the affirmation or 
  9.25  redetermination was sent.  Proceedings on the appeal shall be 
  9.26  conducted in accordance with section 268.105.  
  9.27     (d) The commissioner may at any time upon the 
  9.28  commissioner's own motion correct any error in the computation 
  9.29  or the assignment of an employer's tax rate.  
  9.30     Sec. 8.  Minnesota Statutes 2004, section 268.065, 
  9.31  subdivision 2, is amended to read: 
  9.32     Subd. 2.  [EMPLOYEE LEASING FIRMS.] (a) A person whose work 
  9.33  force consists of 50 percent or more of workers provided 
  9.34  originally recruited and hired by employee leasing firms and 
  9.35  then provided to the person for a fee, is jointly and severally 
  9.36  liable for the unpaid amounts that are due under this chapter or 
 10.1   section 116L.20 on the wages paid on the contract with the 
 10.2   employee leasing firm.  "Employee leasing firm" means an 
 10.3   employer that provides its employees to other persons without 
 10.4   severing its employer-employee relationship with the worker for 
 10.5   the services performed for the lessee. 
 10.6      (b) This subdivision applies to, but is not limited to, 
 10.7   persons registered under section 79.255, but does not apply to 
 10.8   agreements with persons that obtain an exemption from 
 10.9   registration under section 79.255, subdivision 9. 
 10.10     Sec. 9.  Minnesota Statutes 2004, section 268.184, 
 10.11  subdivision 1, is amended to read: 
 10.12     Subdivision 1.  [ADMINISTRATIVE PENALTIES.] (a) If the 
 10.13  commissioner finds that any employer or any employee, officer, 
 10.14  or agent of any employer, is in collusion with any applicant for 
 10.15  the purpose of assisting the applicant to receive unemployment 
 10.16  benefits fraudulently, the employer shall be penalized $500 or 
 10.17  the amount of unemployment benefits determined to be overpaid, 
 10.18  whichever is greater. 
 10.19     (b) If the commissioner finds that any employer or any 
 10.20  employee, officer, or agent of an employer has made (1) a false 
 10.21  statement or representation knowing it to be false, including 
 10.22  reporting employees on a wage detail report under section 
 10.23  268.044 knowing the employees actually are employed by a 
 10.24  different employer, or (2) has made a false statement or 
 10.25  representation without a good faith belief as to correctness of 
 10.26  the statement or representation, or (3) who knowingly fails to 
 10.27  disclose a material fact, to prevent or reduce the payment of 
 10.28  unemployment benefits to any applicant or to reduce or avoid any 
 10.29  payment required from an employer under this chapter or section 
 10.30  116L.20, the employer shall be penalized $500, or 50 percent of 
 10.31  the reduced unemployment benefits or payment required, whichever 
 10.32  is greater. 
 10.33     (c) If the commissioner finds that an employer failed or 
 10.34  refused to honor a subpoena issued under section 268.105, 
 10.35  subdivision 4, or section 268.188, the employer shall be 
 10.36  penalized $500 and any costs of enforcing the subpoena, 
 11.1   including attorney fees. 
 11.2      (d) Penalties under this section subdivision shall be in 
 11.3   addition to any other penalties and subject to the same 
 11.4   collection procedures that apply to past due taxes.  Penalties 
 11.5   shall be paid to the department within 30 calendar days of 
 11.6   assessment and credited to the contingent account. 
 11.7      (e) The assessment of the penalty shall be final unless the 
 11.8   employer files an appeal within 30 calendar days after the 
 11.9   sending of notice of the penalty to the employer by mail or 
 11.10  electronic transmission.  Proceedings on the appeal shall be 
 11.11  conducted in accordance with section 268.105. 
 11.12     Sec. 10.  Minnesota Statutes 2004, section 268.184, is 
 11.13  amended by adding a subdivision to read: 
 11.14     Subd. 1a.  [NOTIFICATION AND MISREPORTING PENALTIES.] (a) 
 11.15  If the commissioner finds that any employer or agent of an 
 11.16  employer failed to meet the notification requirements of section 
 11.17  268.051, subdivision 4, the employer shall be assessed a penalty 
 11.18  of $5,000 or two percent of the first full quarterly payroll 
 11.19  acquired, whichever is higher.  Payroll is wages paid as defined 
 11.20  in section 268.035, subdivision 30.  The penalty under this 
 11.21  paragraph shall be canceled if the commissioner determines that 
 11.22  the failure occurred because of ignorance or inadvertence. 
 11.23     (b) If the commissioner finds that any individual advised 
 11.24  an employer to violate the employer's notification requirements 
 11.25  under section 268.051, subdivision 4, the individual, and that 
 11.26  individual's employer, shall each be assessed the penalty in 
 11.27  paragraph (a). 
 11.28     (c) If the commissioner finds that any person or agent of a 
 11.29  person violated the reporting requirements of section 268.0435 
 11.30  or 268.0436, the person shall be assessed a penalty of $5,000 or 
 11.31  two percent of the quarterly payroll reported in violation of 
 11.32  section 268.0435 or 268.0436, whichever is higher.  Payroll is 
 11.33  wages paid as defined in section 268.035, subdivision 30. 
 11.34     (d) Penalties under this subdivision shall be in addition 
 11.35  to any other penalties and subject to the same collection 
 11.36  procedures that apply to past due amounts from an employer.  
 12.1   Penalties must be paid within 30 calendar days after sending of 
 12.2   the notice of penalty. 
 12.3      (e) The assessment of a penalty shall be final unless the 
 12.4   person assessed files an appeal within 30 calendar days after 
 12.5   sending of the notice of the penalty by mail or electronic 
 12.6   transmission.  Proceedings on the appeal shall be conducted in 
 12.7   accordance with section 268.105. 
 12.8      Sec. 11.  Minnesota Statutes 2004, section 268.184, 
 12.9   subdivision 2, is amended to read: 
 12.10     Subd. 2.  [CRIMINAL PENALTIES.] Any employer or any officer 
 12.11  or agent of an employer or any other individual who: 
 12.12     (1) makes a false statement or representation knowing it to 
 12.13  be false, or who; 
 12.14     (2) knowingly fails to disclose a material fact, including 
 12.15  notification required under section 268.051, subdivision 4; or 
 12.16     (3) knowingly advises or assists an employer in violating 
 12.17  clause (1) or (2), to avoid or reduce any payment required from 
 12.18  an employer under this chapter or section 116L.20, or to prevent 
 12.19  or reduce the payment of unemployment benefits to any applicant, 
 12.20  is guilty of a gross misdemeanor unless the underpayment exceeds 
 12.21  $500, in that case the individual is guilty of a felony.  
 12.22     [EFFECTIVE DATE.] This section is effective August 1, 2005, 
 12.23  and applies to crimes committed on or after that date. 
 12.24     Sec. 12.  [MANDATORY FEDERAL IMPLEMENTATION REQUIREMENT.] 
 12.25     The commissioner must implement systems and processes to 
 12.26  detect, investigate, and enforce section 268.051, subdivisions 4 
 12.27  and 4a. 
 12.28     Sec. 13.  [RELATION TO FEDERAL LAW.] 
 12.29     This article is enacted to meet the requirements of the 
 12.30  Federal SUTA Dumping Prevention Act of 2004, Public Law 108-295, 
 12.31  amending United States Code, title 42, section 503, and shall be 
 12.32  construed, interpreted, and applied consistent with the 
 12.33  requirements of that federal law, including its definitions. 
 12.34     Sec. 14.  [REPEALER.] 
 12.35     (a) Minnesota Rules, parts 3315.1020, 3315.3210, and 
 12.36  3315.3220, are repealed. 
 13.1      (b) Minnesota Statutes 2004, section 268.045, subdivisions 
 13.2   2, 3, and 4, are repealed. 
 13.3      Sec. 15.  [EFFECTIVE DATE.] 
 13.4      Except for the sections that include a separate effective 
 13.5   date, this article is effective July 1, 2005. 
 13.6                              ARTICLE 2 
 13.7                       HOUSEKEEPING PROVISIONS 
 13.8      Section 1.  Minnesota Statutes 2004, section 268.03, 
 13.9   subdivision 1, is amended to read: 
 13.10     Subdivision 1.  [STATEMENT.] The public purpose of sections 
 13.11  268.029 to 268.23 this chapter is:  Economic insecurity due to 
 13.12  involuntary unemployment of workers in Minnesota is a subject of 
 13.13  general concern that requires appropriate action by the 
 13.14  legislature.  The public good will be promoted by providing 
 13.15  workers who are unemployed through no fault of their own a 
 13.16  temporary partial wage replacement to assist the unemployed 
 13.17  worker to become reemployed.  This program will be known as the 
 13.18  "Minnesota unemployment insurance program." 
 13.19     Sec. 2.  Minnesota Statutes 2004, section 268.035, 
 13.20  subdivision 9, is amended to read: 
 13.21     Subd. 9.  [CONSTRUCTION/INDEPENDENT CONTRACTOR.] A worker 
 13.22  doing commercial or residential building construction or 
 13.23  improvement, in the public or private sector, performing 
 13.24  services in the course of the trade, business, profession, or 
 13.25  occupation of the employer, shall be considered an employee and 
 13.26  not an "independent contractor" unless the worker meets all the 
 13.27  following conditions: 
 13.28     (1) maintains a separate business with the independent 
 13.29  contractor's own office, equipment, materials, and other 
 13.30  facilities; 
 13.31     (2) holds or has applied for a federal employer 
 13.32  identification number or has filed business or self-employment 
 13.33  income tax returns with the federal Internal Revenue Service 
 13.34  based on that work or service in the previous year; 
 13.35     (3) operates under contracts to perform specific services 
 13.36  or work for specific amounts of money under which the 
 14.1   independent contractor controls the means of performing the 
 14.2   services or work; 
 14.3      (4) incurs the main expenses related to the service or work 
 14.4   that the independent contractor performs under contract; 
 14.5      (5) is responsible for the satisfactory completion of work 
 14.6   or services that the independent contractor contracts to perform 
 14.7   and is liable for a failure to complete the work or service; 
 14.8      (6) receives compensation for work or service performed 
 14.9   under a contract on a commission or per job or competitive bid 
 14.10  basis and not on any other basis; 
 14.11     (7) may realize a profit or suffer a loss under contracts 
 14.12  to perform work or service; 
 14.13     (8) has continuing or recurring business liabilities or 
 14.14  obligations; and 
 14.15     (9) the success or failure of the independent contractor's 
 14.16  business depends on the relationship of business receipts to 
 14.17  expenditures. 
 14.18     Sec. 3.  Minnesota Statutes 2004, section 268.035, 
 14.19  subdivision 13, is amended to read: 
 14.20     Subd. 13.  [EMPLOYEE.] "Employee" means: 
 14.21     (1) every individual, who is performing, or has performed 
 14.22  services for an employer in employment; or 
 14.23     (2) each individual employed to perform or assist in 
 14.24  performing the work of any agent or employee of the employer 
 14.25  shall be considered to be an employee of that employer whether 
 14.26  the individual was hired or paid directly by that employer or by 
 14.27  the agent or employee, provided the employer had actual or 
 14.28  constructive knowledge of the work. 
 14.29     Sec. 4.  Minnesota Statutes 2004, section 268.035, 
 14.30  subdivision 14, is amended to read: 
 14.31     Subd. 14.  [EMPLOYER.] "Employer" means any of the 
 14.32  following person which has had one or more employees during the 
 14.33  current or the prior calendar year: 
 14.34     (1) any individual or type of organization, resident or 
 14.35  nonresident, for profit or nonprofit, religious, charitable, or 
 14.36  educational, including any partnership, limited liability 
 15.1   company, trust, estate, or corporation, domestic or foreign, or 
 15.2   the receiver, trustee in bankruptcy, trustee or successor of any 
 15.3   of the foregoing, or the legal representative of a deceased 
 15.4   person; 
 15.5      (2) any government entity, state or federal, foreign or 
 15.6   domestic, Indian tribe, including any subdivision thereof and 
 15.7   any instrumentality thereof owned wholly or in part; 
 15.8      (3) including any organization or person that has elected, 
 15.9   under section 268.042, to be subject to the Minnesota 
 15.10  Unemployment Insurance Law; and 
 15.11     (4) a joint venture composed of one or more employers;. 
 15.12     (5) any nonprofit organization or government agency 
 15.13  providing or authorizing the hiring of homeworkers, personal 
 15.14  care attendants, or other individuals performing similar 
 15.15  services in a private home is the employer of the homeworker, 
 15.16  attendant, or similar worker whether the organization or agency 
 15.17  pays the employee directly or provides funds to the recipient of 
 15.18  the services to pay for the services.  This clause does not 
 15.19  apply to the state of Minnesota or any county that provides 
 15.20  federal, state, or local funds to a child care provider either 
 15.21  directly or indirectly through a parent who is a child care 
 15.22  assistance recipient; or 
 15.23     (6) each individual employed to perform or assist in 
 15.24  performing the work of any agent or employee shall be considered 
 15.25  to be employed by that employer whether the individual was hired 
 15.26  or paid directly by that employer or by the agent or employee, 
 15.27  provided the employer had actual or constructive knowledge of 
 15.28  the work. 
 15.29     Sec. 5.  Minnesota Statutes 2004, section 268.035, 
 15.30  subdivision 20, is amended to read: 
 15.31     Subd. 20.  [NONCOVERED EMPLOYMENT.] "Noncovered employment" 
 15.32  means: 
 15.33     (1) employment for the United States government or an 
 15.34  instrumentality thereof, including military service; 
 15.35     (2) employment for a state, other than Minnesota, or a 
 15.36  political subdivision or instrumentality thereof; 
 16.1      (3) employment for a foreign government; 
 16.2      (4) employment for an instrumentality wholly owned by a 
 16.3   foreign government, if the employment is of a character similar 
 16.4   to that performed in foreign countries by employees of the 
 16.5   United States government or an instrumentality thereof and the 
 16.6   United States Secretary of State has certified that the foreign 
 16.7   government grants an equivalent exemption to similar employment 
 16.8   performed in the foreign country by employees of the United 
 16.9   States government and instrumentalities thereof; 
 16.10     (5) employment covered under United States Code, title 45, 
 16.11  section 351, the Railroad Unemployment Insurance Act; 
 16.12     (6) employment covered by a reciprocal arrangement between 
 16.13  the commissioner and another state or the federal government 
 16.14  which provides that all employment performed by an individual 
 16.15  for an employer during the period covered by the reciprocal 
 16.16  arrangement is considered performed entirely within another 
 16.17  state; 
 16.18     (7) employment for a church or convention or association of 
 16.19  churches, or an organization operated primarily for religious 
 16.20  purposes that is operated, supervised, controlled, or 
 16.21  principally supported by a church or convention or association 
 16.22  of churches described in United States Code, title 26, section 
 16.23  501(c)(3) of the federal Internal Revenue Code and exempt from 
 16.24  income tax under section 501(a); 
 16.25     (8) employment of a duly ordained or licensed minister of a 
 16.26  church in the exercise of a ministry or by a member of a 
 16.27  religious order in the exercise of duties required by the order, 
 16.28  for Minnesota or a political subdivision or an organization 
 16.29  described in United States Code, title 26, section 501(c)(3) of 
 16.30  the federal Internal Revenue Code and exempt from income tax 
 16.31  under section 501(a); 
 16.32     (9) employment of an individual receiving rehabilitation of 
 16.33  "sheltered" work in a facility conducted for the purpose of 
 16.34  carrying out a program of rehabilitation for individuals whose 
 16.35  earning capacity is impaired by age or physical or mental 
 16.36  deficiency or injury or a program providing "sheltered" work for 
 17.1   individuals who because of an impaired physical or mental 
 17.2   capacity cannot be readily absorbed in the competitive labor 
 17.3   market.  This clause applies only to services performed for 
 17.4   Minnesota or a political subdivision or an organization 
 17.5   described in United States Code, title 26, section 501(c)(3) of 
 17.6   the federal Internal Revenue Code and exempt from income tax 
 17.7   under section 501(a) in a facility certified by the 
 17.8   Rehabilitation Services Branch of the department or in a day 
 17.9   training or habilitation program licensed by the Department of 
 17.10  Human Services; 
 17.11     (10) employment of an individual receiving work relief or 
 17.12  work training as part of an unemployment work relief or work 
 17.13  training program assisted or financed in whole or in part by any 
 17.14  federal agency or an agency of a state or political subdivision 
 17.15  thereof.  This clause applies only to employment for Minnesota 
 17.16  or a political subdivision or an organization described in 
 17.17  United States Code, title 26, section 501(c)(3) of the federal 
 17.18  Internal Revenue Code and exempt from income tax under section 
 17.19  501(a).  This clause shall not apply to programs that require 
 17.20  unemployment benefit coverage for the participants; 
 17.21     (11) employment for Minnesota or a political subdivision as 
 17.22  an elected official, a member of a legislative body, or a member 
 17.23  of the judiciary; 
 17.24     (12) employment as a member of the Minnesota National Guard 
 17.25  or Air National Guard; 
 17.26     (13) employment for Minnesota, a political subdivision, or 
 17.27  instrumentality thereof, as an employee serving only on a 
 17.28  temporary basis in case of fire, flood, tornado, or similar 
 17.29  emergency; 
 17.30     (14) employment as an election official or election worker 
 17.31  for Minnesota or a political subdivision, but only if the 
 17.32  compensation for that employment was less than $1,000 in a 
 17.33  calendar year; 
 17.34     (15) employment for Minnesota that is a major policy making 
 17.35  or advisory position in the unclassified service, including 
 17.36  those positions established pursuant to section 43A.08, 
 18.1   subdivision 1a; 
 18.2      (16) employment for a political subdivision of Minnesota 
 18.3   that is a nontenured major policy making or advisory position; 
 18.4      (17) domestic employment in a private household, local 
 18.5   college club, or local chapter of a college fraternity or 
 18.6   sorority performed for a person, only if the wages paid in any 
 18.7   calendar quarter in either the current or preceding calendar 
 18.8   year to all individuals in domestic employment totaled less than 
 18.9   $1,000. 
 18.10     "Domestic employment" includes all service in the operation 
 18.11  and maintenance of a private household, for a local college 
 18.12  club, or local chapter of a college fraternity or sorority as 
 18.13  distinguished from service as an employee in the pursuit of an 
 18.14  employer's trade or business; 
 18.15     (18) employment of an individual by a son, daughter, or 
 18.16  spouse, and employment of a child under the age of 18 by the 
 18.17  child's father or mother; 
 18.18     (19) employment of an inmate of a custodial or penal 
 18.19  institution; 
 18.20     (20) employment for a school, college, or university by a 
 18.21  student who is enrolled and is regularly attending classes at 
 18.22  the school, college, or university; 
 18.23     (21) employment of an individual who is enrolled as a 
 18.24  student in a full-time program at a nonprofit or public 
 18.25  educational institution that maintains a regular faculty and 
 18.26  curriculum and has a regularly organized body of students in 
 18.27  attendance at the place where its educational activities are 
 18.28  carried on, taken for credit at the institution, that combines 
 18.29  academic instruction with work experience, if the employment is 
 18.30  an integral part of the program, and the institution has so 
 18.31  certified to the employer, except that this clause shall not 
 18.32  apply to employment in a program established for or on behalf of 
 18.33  an employer or group of employers; 
 18.34     (22) employment of university, college, or professional 
 18.35  school students in an internship or other training program with 
 18.36  the city of St. Paul or the city of Minneapolis pursuant to Laws 
 19.1   1990, chapter 570, article 6, section 3; 
 19.2      (23) employment for a hospital by a patient of the 
 19.3   hospital.  "Hospital" means an institution that has been 
 19.4   licensed by the Department of Health as a hospital; 
 19.5      (24) employment as a student nurse for a hospital or a 
 19.6   nurses' training school by an individual who is enrolled and is 
 19.7   regularly attending classes in an accredited nurses' training 
 19.8   school; 
 19.9      (25) employment as an intern for a hospital by an 
 19.10  individual who has completed a four-year course in an accredited 
 19.11  medical school; 
 19.12     (26) employment as an insurance salesperson, by other than 
 19.13  a corporate officer, if all the compensation for wages from the 
 19.14  employment is solely by way of commission.  The word "insurance" 
 19.15  shall include an annuity and an optional annuity; 
 19.16     (27) employment as an officer of a township mutual 
 19.17  insurance company or farmer's mutual insurance company operating 
 19.18  pursuant to chapter 67A; 
 19.19     (28) employment of a corporate officer, if the officer owns 
 19.20  25 percent or more of the employer corporation, and employment 
 19.21  of a member of a limited liability company, if the member owns 
 19.22  25 percent or more of the employer limited liability company; 
 19.23     (29) employment as a real estate salesperson, by other than 
 19.24  a corporate officer, if all the compensation for wages from the 
 19.25  employment is solely by way of commission; 
 19.26     (30) employment as a direct seller as defined in United 
 19.27  States Code, title 26, section 3508; 
 19.28     (31) employment of an individual under the age of 18 in the 
 19.29  delivery or distribution of newspapers or shopping news, not 
 19.30  including delivery or distribution to any point for subsequent 
 19.31  delivery or distribution; 
 19.32     (32) casual employment performed for an individual, other 
 19.33  than domestic employment under clause (17), that does not 
 19.34  promote or advance that employer's trade or business; 
 19.35     (33) employment in "agricultural employment" unless 
 19.36  considered "covered agricultural employment" under subdivision 
 20.1   11; or 
 20.2      (34) if employment during one-half or more of any pay 
 20.3   period was covered employment, all the employment for the pay 
 20.4   period shall be considered covered employment; but if during 
 20.5   more than one-half of any pay period the employment was 
 20.6   noncovered employment, then all of the employment for the pay 
 20.7   period shall be considered noncovered employment.  "Pay period" 
 20.8   means a period of not more than a calendar month for which a 
 20.9   payment or compensation is ordinarily made to the employee by 
 20.10  the employer. 
 20.11     Sec. 6.  Minnesota Statutes 2004, section 268.035, 
 20.12  subdivision 21, is amended to read: 
 20.13     Subd. 21.  [PERSON.] "Person" means: 
 20.14     (1) an individual, trust or estate, a partnership or a 
 20.15  corporation or any type of organization or entity, resident or 
 20.16  nonresident, for profit or nonprofit, religious, charitable or 
 20.17  educational, including any receiver or trustee in a bankruptcy, 
 20.18  successor of any of the foregoing, or legal representative of a 
 20.19  deceased individual; and 
 20.20     (2) any government entity, state or federal, foreign or 
 20.21  domestic, or Indian tribe, including any subdivision or 
 20.22  instrumentality thereof owned wholly or in part. 
 20.23     Sec. 7.  Minnesota Statutes 2004, section 268.035, 
 20.24  subdivision 26, is amended to read: 
 20.25     Subd. 26.  [UNEMPLOYED.] An applicant shall be considered 
 20.26  "unemployed":  (1) in any week that the applicant performs no 
 20.27  service in employment, covered employment, noncovered 
 20.28  employment, self-employment, or volunteer work, and with respect 
 20.29  to which the applicant has no earnings; or (2) in any week of 
 20.30  less than 32 hours of service in employment, covered employment, 
 20.31  noncovered employment, self-employment, or volunteer work if the 
 20.32  ; and (2) any earnings with respect to that week are less than 
 20.33  the applicant's weekly unemployment benefit amount.  
 20.34     Sec. 8.  Minnesota Statutes 2004, section 268.042, 
 20.35  subdivision 1, is amended to read: 
 20.36     Subdivision 1.  [EMPLOYER REGISTRATION.] (a) Each employer 
 21.1   shall, upon or before the submission of its first wage detail 
 21.2   report under section 268.044, register with the commissioner for 
 21.3   a tax account or a reimbursable account, by electronic 
 21.4   transmission in a format prescribed by the commissioner.  The 
 21.5   employer must provide all required information for registration. 
 21.6      (b) Except as provided in subdivision 3, any organization 
 21.7   or person that is or becomes an employer subject to the 
 21.8   Minnesota Unemployment Insurance Law within any calendar year 
 21.9   shall be considered to be subject to this chapter the entire 
 21.10  calendar year.  
 21.11     (c) Upon the termination of business, an employer that has 
 21.12  been assigned a tax account or reimbursable account shall notify 
 21.13  the commissioner by electronic transmission, in a format 
 21.14  prescribed by the commissioner, that the employer no longer has 
 21.15  employees and does not intend or expect to pay wages to any 
 21.16  employees in the next calendar year and into the foreseeable 
 21.17  future.  Upon such notification, the commissioner shall not 
 21.18  require the employer to file wage detail reports under section 
 21.19  268.044, subdivision 1, paragraph (d), commencing the calendar 
 21.20  quarter after the notice of termination was received by the 
 21.21  commissioner. 
 21.22     Sec. 9.  Minnesota Statutes 2004, section 268.043, is 
 21.23  amended to read: 
 21.24     268.043 [DETERMINATIONS OF COVERAGE.] 
 21.25     (a) The commissioner, upon the commissioner's own motion or 
 21.26  upon application of an organization or a person, shall determine 
 21.27  if that organization or person is an employer or whether 
 21.28  services performed for it constitute employment and covered 
 21.29  employment, or whether the compensation for services constitutes 
 21.30  wages, and shall notify the organization or person of the 
 21.31  determination.  The determination shall be final unless the 
 21.32  organization or person, within 30 calendar days after sending of 
 21.33  the determination by mail or electronic transmission, files a 
 21.34  protest.  Upon receipt of a protest, the commissioner shall 
 21.35  review all available evidence and determine whether an error has 
 21.36  been made.  The commissioner shall send to the organization or 
 22.1   person, by mail or electronic transmission, an affirmation or 
 22.2   redetermination.  The affirmation or redetermination shall be 
 22.3   final unless, within 30 calendar days after sending of the 
 22.4   affirmation or redetermination to the organization or person by 
 22.5   mail or electronic transmission, an appeal is filed.  
 22.6   Proceedings on the appeal shall be conducted in accordance with 
 22.7   section 268.105. 
 22.8      (b) No organization or person shall be initially determined 
 22.9   an employer, or that services performed for it were in 
 22.10  employment or covered employment, for periods more than four 
 22.11  years prior to the year in which the determination is made, 
 22.12  unless the commissioner finds that there was fraudulent action 
 22.13  to avoid liability under this chapter. 
 22.14     Sec. 10.  Minnesota Statutes 2004, section 268.044, 
 22.15  subdivision 2, is amended to read: 
 22.16     Subd. 2.  [FAILURE TO TIMELY FILE REPORT; LATE FEES.] (a) 
 22.17  Any employer that fails to submit the quarterly wage detail 
 22.18  report when due shall pay a late fee of $10 per employee, 
 22.19  computed based upon the highest of: 
 22.20     (1) the number of employees reported on the last wage 
 22.21  detail report submitted; 
 22.22     (2) the number of employees reported in the corresponding 
 22.23  quarter of the prior calendar year; or 
 22.24     (3) if no wage detail report has ever been submitted, the 
 22.25  number of employees listed at the time of employer registration. 
 22.26     The late fee shall be waived if the wage detail report is 
 22.27  received within 30 calendar days after a demand for the report 
 22.28  is sent to the employer by mail or electronic transmission.  A 
 22.29  late fee assessed an employer may not be waived more than once 
 22.30  twice each 12 months.  The amount of the late fee assessed shall 
 22.31  not be less than $50 $250.  
 22.32     (b) If the wage detail report is not received in a manner 
 22.33  and format prescribed by the commissioner within 30 calendar 
 22.34  days after demand is sent under paragraph (a), the late fee 
 22.35  assessed under paragraph (a) shall double and a renewed demand 
 22.36  notice and notice of the increased late fee shall be sent to the 
 23.1   employer by mail or electronic transmission. 
 23.2      (c) Late fees due under this subdivision may be compromised 
 23.3   under section 268.067 where good cause for late submission is 
 23.4   found by the commissioner.  
 23.5      Sec. 11.  Minnesota Statutes 2004, section 268.051, 
 23.6   subdivision 7, is amended to read: 
 23.7      Subd. 7.  [TAX RATE BUYDOWN.] (a) Any taxpaying employer 
 23.8   who has been assigned a tax rate based upon an experience 
 23.9   rating, and has no amounts past due under this chapter, may, 
 23.10  upon the voluntary payment of an amount equivalent to any 
 23.11  portion or all of the unemployment benefits used in computing 
 23.12  the experience rating plus a surcharge of 25 percent, obtain a 
 23.13  cancellation of unemployment benefits used equal to the payment 
 23.14  made, less the surcharge.  Upon the payment, the commissioner 
 23.15  shall compute a new experience rating for the employer, and 
 23.16  compute a new tax rate.  
 23.17     (b) Voluntary payments may be made only by electronic 
 23.18  payment and must be received within 120 calendar days from the 
 23.19  beginning of the calendar year for which the tax rate is 
 23.20  effective. 
 23.21     Sec. 12.  Minnesota Statutes 2004, section 268.052, 
 23.22  subdivision 2, is amended to read: 
 23.23     Subd. 2.  [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 
 23.24  A TAXPAYING EMPLOYER.] (a) The state or political 
 23.25  subdivision excluding a school district may elect to be a 
 23.26  taxpaying employer for any calendar year if a notice of election 
 23.27  is filed within 30 calendar days following January 1 of that 
 23.28  calendar year.  Upon election, the state or political 
 23.29  subdivision shall be assigned the new employer tax rate under 
 23.30  section 268.051, subdivision 5, for the calendar year of the 
 23.31  election and until it qualifies for an experience rating under 
 23.32  section 268.051, subdivision 3. 
 23.33     (b) An election shall be for a minimum period of two 
 23.34  calendar years following the effective date of the election and 
 23.35  continue unless a notice terminating the election is filed not 
 23.36  later than 30 calendar days before the beginning of the calendar 
 24.1   year.  The termination shall be effective at the beginning of 
 24.2   the next calendar year.  Upon election, the commissioner shall 
 24.3   establish a reimbursable account for the state or political 
 24.4   subdivision.  A termination of election shall be allowed only if 
 24.5   the state or political subdivision has, since the beginning of 
 24.6   the experience rating period under section 268.051, subdivision 
 24.7   3, paid taxes and made voluntary payments under section 268.051, 
 24.8   subdivision 7, equal to or more than 125 percent of the 
 24.9   unemployment benefits used in computing the experience rating.  
 24.10  In addition, any unemployment benefits paid after the experience 
 24.11  rating period shall be transferred to the new reimbursable 
 24.12  account of the state or political subdivision.  If the amount of 
 24.13  taxes and voluntary payments paid since the beginning of the 
 24.14  experience rating period exceeds 125 percent of the amount of 
 24.15  unemployment benefits paid during the experience rating period, 
 24.16  that amount in excess shall be applied against any unemployment 
 24.17  benefits paid after the experience rating period. 
 24.18     (c) The method of payments to the trust fund under 
 24.19  subdivisions 3 and 4 shall apply to all taxes paid by or due 
 24.20  from the state or political subdivision that elects to be 
 24.21  taxpaying employers under this subdivision. 
 24.22     (d) A notice of election or a notice terminating election 
 24.23  shall be filed by electronic transmission in a format prescribed 
 24.24  by the commissioner.  
 24.25     Sec. 13.  Minnesota Statutes 2004, section 268.053, 
 24.26  subdivision 1, is amended to read: 
 24.27     Subdivision 1.  [ELECTION.] (a) Any nonprofit organization 
 24.28  that has employees in covered employment shall pay taxes on a 
 24.29  quarterly basis pursuant to section 268.051 unless it elects to 
 24.30  make reimbursements to the trust fund the amount of unemployment 
 24.31  benefits charged to its reimbursable account under section 
 24.32  268.047. 
 24.33     The organization may elect to make reimbursements for a 
 24.34  period of not less than two calendar years beginning with the 
 24.35  date that the organization was determined to be an employer with 
 24.36  covered employment by filing a notice of election not later than 
 25.1   30 calendar days after the date of the determination. 
 25.2      (b) Any nonprofit organization that makes an election will 
 25.3   continue to be liable for reimbursements until it files a notice 
 25.4   terminating its election not later than 30 calendar days before 
 25.5   the beginning of the calendar year the termination is to be 
 25.6   effective.  
 25.7      (c) A nonprofit organization that has been making 
 25.8   reimbursements that files a notice of termination of election 
 25.9   shall be assigned the new employer tax rate under section 
 25.10  268.051, subdivision 5, for the calendar year of the termination 
 25.11  of election and until it qualifies for an experience rating 
 25.12  under section 268.051, subdivision 3. 
 25.13     (d) Any nonprofit organization that has been paying taxes 
 25.14  may elect to make reimbursements by filing no less than 30 
 25.15  calendar days before January 1 of any calendar year a notice of 
 25.16  election.  Upon election, the commissioner shall establish a 
 25.17  reimbursable account for the nonprofit organization.  An 
 25.18  election shall be allowed only if the nonprofit organization 
 25.19  has, since the beginning of the experience rating period under 
 25.20  section 268.051, subdivision 3, paid taxes and made voluntary 
 25.21  payments under section 268.051, subdivision 7, equal to or more 
 25.22  than 125 percent of the unemployment benefits used in computing 
 25.23  the experience rating.  In addition, any unemployment benefits 
 25.24  paid after the experience rating period shall be transferred to 
 25.25  the new reimbursable account of the nonprofit organization.  If 
 25.26  the amount of taxes and voluntary payments paid since the 
 25.27  beginning of the experience rating period exceeds 125 percent of 
 25.28  the amount of unemployment benefits paid during the experience 
 25.29  rating period, that amount in excess shall be applied against 
 25.30  any unemployment benefits paid after the experience rating 
 25.31  period.  The election shall not be terminable by the 
 25.32  organization for that and the next calendar year. 
 25.33     (e) The commissioner may for good cause extend the period 
 25.34  that a notice of election, or a notice of termination, must be 
 25.35  filed and may permit an election to be retroactive. 
 25.36     (f) A notice of election or notice terminating election 
 26.1   shall be filed by electronic transmission in a format prescribed 
 26.2   by the commissioner. 
 26.3      Sec. 14.  Minnesota Statutes 2004, section 268.069, 
 26.4   subdivision 1, is amended to read: 
 26.5      Subdivision 1.  [REQUIREMENTS.] The commissioner shall pay 
 26.6   unemployment benefits from the trust fund to an applicant who 
 26.7   has met each of the following requirements: 
 26.8      (1) the applicant has filed an application for unemployment 
 26.9   benefits and established a benefit account in accordance with 
 26.10  section 268.07; 
 26.11     (2) the applicant is not subject to a disqualification from 
 26.12  unemployment benefits under section 268.095 because of a quit or 
 26.13  discharge; 
 26.14     (3) the applicant has met all of the ongoing weekly 
 26.15  eligibility requirements under sections 268.085 and 268.086; 
 26.16     (4) the applicant does not have an outstanding overpayment 
 26.17  of unemployment benefits, including any penalties or interest, 
 26.18  under section 268.18; and 
 26.19     (5) the applicant is not subject to a denial of ineligible 
 26.20  for unemployment benefits under section 268.182 because of a 
 26.21  false representation or concealment of facts. 
 26.22     Sec. 15.  Minnesota Statutes 2004, section 268.07, 
 26.23  subdivision 3b, is amended to read: 
 26.24     Subd. 3b.  [LIMITATIONS.] (a) A benefit account shall be 
 26.25  established effective the Sunday of the calendar week that the 
 26.26  application for unemployment benefits was filed.  Upon specific 
 26.27  request of an applicant, an application for unemployment 
 26.28  benefits may be backdated one calendar week prior to the Sunday 
 26.29  of the week the application was actually filed.  An application 
 26.30  shall be backdated only if the applicant was unemployed 
 26.31  throughout the period of the backdating.  If an individual 
 26.32  attempted to file an application for unemployment benefits, but 
 26.33  was prevented from filing an application by the department, the 
 26.34  benefit account shall be effective the Sunday of the calendar 
 26.35  week the individual first attempted to file an application. 
 26.36     (b) A benefit account, once established, may later be 
 27.1   withdrawn only if: 
 27.2      (1) a new application for unemployment benefits is filed 
 27.3   and a new benefit account is established at the time of the 
 27.4   withdrawal; and 
 27.5      (2) the applicant has not served a waiting week under 
 27.6   section 268.085, subdivision 1, clause (3) (5).  
 27.7      A determination or amended determination pursuant to 
 27.8   section 268.101, that was issued before the withdrawal of the 
 27.9   benefit account, shall remain in effect and shall not be voided 
 27.10  by the withdrawal of the benefit account.  A determination of 
 27.11  disqualification requiring subsequent earnings to satisfy the 
 27.12  disqualification under section 268.095, subdivision 10, shall 
 27.13  apply to the weekly unemployment benefit amount on the new 
 27.14  benefit account. 
 27.15     (c) An application for unemployment benefits shall not be 
 27.16  allowed prior to the Sunday following the expiration of the 
 27.17  benefit year on a prior benefit account.  Except as allowed 
 27.18  under paragraph (b), a applicant may establish only one benefit 
 27.19  account each 52 calendar weeks. 
 27.20     (d) All unemployment benefits shall be available from the 
 27.21  trust fund only for weeks occurring during the applicant's 
 27.22  benefit year. 
 27.23     Sec. 16.  Minnesota Statutes 2004, section 268.085, 
 27.24  subdivision 1, is amended to read: 
 27.25     Subdivision 1.  [ELIGIBILITY CONDITIONS.] An applicant 
 27.26  shall be eligible to receive unemployment benefits for any week 
 27.27  if: 
 27.28     (1) the applicant has an active benefit account and has 
 27.29  filed a continued biweekly request for unemployment benefits for 
 27.30  that week pursuant to section 268.086; 
 27.31     (2) the week for which unemployment benefits are requested 
 27.32  is in the applicant's benefit year; 
 27.33     (3) the applicant was unemployed as defined in section 
 27.34  268.035, subdivision 26; 
 27.35     (2) (4) the applicant was able to work and was available 
 27.36  for suitable employment, and was actively seeking suitable 
 28.1   employment.  The applicant's weekly unemployment benefit amount 
 28.2   shall be reduced one-fifth for each day the applicant is unable 
 28.3   to work or is unavailable for suitable employment.  If the 
 28.4   computation of the reduced unemployment benefits is not a whole 
 28.5   dollar, it shall be rounded down to the next lower whole dollar. 
 28.6      This clause shall not apply to an applicant who is in 
 28.7   reemployment assistance training, or each day the applicant is 
 28.8   on jury duty or serving as an election judge; 
 28.9      (3) (5) the applicant has served a waiting period of one 
 28.10  week that the applicant is otherwise entitled to some amount of 
 28.11  unemployment benefits.  This clause shall not apply if the 
 28.12  applicant would have been entitled to federal disaster 
 28.13  unemployment assistance because of a disaster in Minnesota, but 
 28.14  for the applicant's establishment of a benefit account under 
 28.15  section 268.07; and 
 28.16     (4) (6) the applicant has been participating in 
 28.17  reemployment assistance services, such as job search and resume 
 28.18  writing classes, if the applicant has been determined in need of 
 28.19  reemployment assistance services by the commissioner, unless 
 28.20  there is good cause for the applicant's failure to participate. 
 28.21     Sec. 17.  Minnesota Statutes 2004, section 268.085, 
 28.22  subdivision 2, is amended to read: 
 28.23     Subd. 2.  [NOT ELIGIBLE.] An applicant shall not be 
 28.24  eligible to receive unemployment benefits for any week: 
 28.25     (1) that occurs before the effective date of a benefit 
 28.26  account; 
 28.27     (2) that occurs in a period when the applicant is a student 
 28.28  in attendance at, or on vacation from a secondary school 
 28.29  including the period between academic years or terms; 
 28.30     (3) that the applicant is incarcerated or performing court 
 28.31  ordered community service.  The applicant's weekly unemployment 
 28.32  benefit amount shall be reduced by one-fifth for each day the 
 28.33  applicant is incarcerated or performing court ordered community 
 28.34  service.  If the computation of the reduced unemployment 
 28.35  benefits is not a whole dollar, it shall be rounded down to the 
 28.36  next lower whole dollar; 
 29.1      (4) that the applicant fails or refuses to provide 
 29.2   information on an issue of eligibility required under section 
 29.3   268.101, subdivision 1, paragraph (a), or an issue of 
 29.4   disqualification required under section 268.101, subdivision 1, 
 29.5   paragraph (d); 
 29.6      (5) that the applicant is performing services 32 hours or 
 29.7   more, in employment, covered employment, noncovered employment, 
 29.8   volunteer work, or self-employment regardless of the amount of 
 29.9   any earnings; or 
 29.10     (6) with respect to which the applicant is receiving, has 
 29.11  received, or has filed an application for unemployment benefits 
 29.12  under any federal law or the law of any other state.  If the 
 29.13  appropriate agency finally determines that the applicant is not 
 29.14  entitled to the unemployment benefits, this clause shall not 
 29.15  apply. 
 29.16     Sec. 18.  Minnesota Statutes 2004, section 268.085, 
 29.17  subdivision 3, is amended to read: 
 29.18     Subd. 3.  [PAYMENTS THAT DELAY UNEMPLOYMENT BENEFITS.] (a) 
 29.19  An applicant shall not be eligible to receive unemployment 
 29.20  benefits for any week with respect to which the applicant is 
 29.21  receiving, has received, or has filed for payment, equal to or 
 29.22  in excess of the applicant's weekly unemployment benefit amount, 
 29.23  in the form of: 
 29.24     (1) vacation pay paid upon temporary, indefinite, or 
 29.25  seasonal separation.  This clause shall not apply to vacation 
 29.26  pay paid upon a permanent separation from employment; 
 29.27     (2) severance pay, bonus pay, vacation pay, sick pay, and 
 29.28  any other money payments, except earnings under subdivision 5, 
 29.29  and back pay under subdivision 6, paid by an employer because 
 29.30  of, upon, or after separation from employment, but only if the 
 29.31  money payment is considered wages at the time of payment under 
 29.32  section 268.035, subdivision 29, or United States Code, title 
 29.33  26, section 3121, clause (2), of the Federal Insurance 
 29.34  Contribution Act.  This clause shall apply to all the weeks of 
 29.35  payment and shall be applied to the period immediately following 
 29.36  the last day of employment.  The number of weeks of payment 
 30.1   shall be determined as follows:; 
 30.2      (i) if the payments are made periodically, the total of the 
 30.3   payments to be received shall be divided by the applicant's last 
 30.4   level of regular weekly pay from the employer; or 
 30.5      (ii) if the payment is made in a lump sum, that sum shall 
 30.6   be divided by the applicant's last level of regular weekly pay 
 30.7   from the employer.  This clause shall not apply to vacation pay 
 30.8   paid by an employer upon permanent separation from employment; 
 30.9      (2) (3) pension, retirement, or annuity payments from any 
 30.10  plan contributed to by a base period employer including the 
 30.11  United States government, except Social Security benefits which 
 30.12  are provided for in subdivision 4.  The base period employer 
 30.13  contributed to the plan if the contribution is excluded from the 
 30.14  definition of wages under section 268.035, subdivision 29, 
 30.15  clause (1), or United States Code, title 26, section 3121, 
 30.16  clause (2), of the Federal Insurance Contribution Act. 
 30.17     If the applicant receives a lump sum pension payment, that 
 30.18  sum shall be divided by the applicant's last level of regular 
 30.19  weekly pay to determine the number of weeks of payment.  The 
 30.20  number of weeks of payment shall be applied to the period 
 30.21  immediately following the last day of employment.  An applicant 
 30.22  shall not be considered to have received the lump sum payment if 
 30.23  the applicant immediately deposits that payment in a qualified 
 30.24  pension plan or account; or 
 30.25     (3) (4) holiday pay. 
 30.26     (b) This subdivision shall apply to all the weeks of 
 30.27  payment and shall be applied to the period immediately following 
 30.28  the last day of employment.  The number of weeks of payment 
 30.29  shall be determined as follows: 
 30.30     (1) if the payments are made periodically, the total of the 
 30.31  payments to be received shall be divided by the applicant's last 
 30.32  level of regular weekly pay from the employer; or 
 30.33     (2) if the payment is made in a lump sum, that sum shall be 
 30.34  divided by the applicant's last level of regular weekly pay from 
 30.35  the employer. 
 30.36     (b) (c) If the payment is less than the applicant's weekly 
 31.1   unemployment benefit amount, unemployment benefits shall be 
 31.2   reduced by the amount of the payment.  If the computation of 
 31.3   reduced unemployment benefits is not a whole dollar, it shall be 
 31.4   rounded down to the next lower whole dollar. 
 31.5      Sec. 19.  Minnesota Statutes 2004, section 268.085, 
 31.6   subdivision 5, is amended to read: 
 31.7      Subd. 5.  [DEDUCTIBLE EARNINGS.] (a) If the applicant has 
 31.8   earnings with respect to any week, from employment, covered 
 31.9   employment, noncovered employment, self-employment, or volunteer 
 31.10  work, equal to or in excess of the applicant's weekly 
 31.11  unemployment benefit amount, the applicant shall be ineligible 
 31.12  for unemployment benefits for that week. 
 31.13     (b) If the applicant has earnings, with respect to any 
 31.14  week, that is less than the applicant's weekly unemployment 
 31.15  benefit amount, from employment, covered employment, noncovered 
 31.16  employment, self-employment, or volunteer work, that amount over 
 31.17  the following shall be deducted from the weekly unemployment 
 31.18  benefit amount: 
 31.19     (1) 25 percent of earnings or $50, whichever is higher; and 
 31.20     (2) $200 for earnings from service in the National Guard or 
 31.21  a United States military reserve unit. 
 31.22     The resulting unemployment benefit, if not a whole dollar, 
 31.23  shall be rounded down to the next lower whole dollar. 
 31.24     (c) No deduction shall be made from an applicant's weekly 
 31.25  unemployment benefit amount for earnings from direct service as 
 31.26  a volunteer firefighter or volunteer ambulance service 
 31.27  personnel.  This exception to paragraphs (a) and (b) does not 
 31.28  apply to on-call or standby pay provided to a volunteer 
 31.29  firefighter or volunteer ambulance service personnel.  No 
 31.30  deduction shall be made for jury duty pay or for pay as an 
 31.31  election judge.  
 31.32     (d) The applicant may report deductible earnings on 
 31.33  continued biweekly requests for unemployment benefits at the 
 31.34  next lower whole dollar amount. 
 31.35     (e) Deductible earnings shall not include any money 
 31.36  considered a deductible payment under subdivision 3, but shall 
 32.1   include all other money considered wages and any other money 
 32.2   considered earned income under state and federal law for income 
 32.3   tax purposes. 
 32.4      Sec. 20.  Minnesota Statutes 2004, section 268.085, 
 32.5   subdivision 12, is amended to read: 
 32.6      Subd. 12.  [ALIENS.] (a) An alien shall be ineligible for 
 32.7   unemployment benefits for any week the alien is not authorized 
 32.8   to work in the United States under federal law.  Information 
 32.9   from the Bureau of Citizenship and Immigration and 
 32.10  Naturalization Service Services shall be considered conclusive, 
 32.11  absent specific evidence that the information was erroneous.  
 32.12  Pursuant to the existing agreement between the United States and 
 32.13  Canada, this paragraph shall not apply to an applicant who is a 
 32.14  Canadian citizen and has returned to and is living in Canada 
 32.15  each week unemployment benefits are requested. 
 32.16     (b) Unemployment benefits shall not be paid on the basis of 
 32.17  wage credits earned by an alien unless the alien (1) was 
 32.18  lawfully admitted for permanent residence at the time of the 
 32.19  employment, (2) was lawfully present for the purposes of the 
 32.20  employment, or (3) was permanently residing in the United States 
 32.21  under color of law at the time of the employment. 
 32.22     (c) Any information required of applicants applying for 
 32.23  unemployment benefits to determine eligibility because of their 
 32.24  alien status shall be required from all applicants. 
 32.25     Sec. 21.  Minnesota Statutes 2004, section 268.086, 
 32.26  subdivision 2, is amended to read: 
 32.27     Subd. 2.  [CONTINUED BIWEEKLY REQUEST FOR UNEMPLOYMENT 
 32.28  BENEFITS DEFINED.] A continued biweekly request for unemployment 
 32.29  benefits is a certification by an applicant, done on a biweekly 
 32.30  basis, that the applicant is unemployed and meets the ongoing 
 32.31  eligibility requirements for unemployment benefits under section 
 32.32  268.085 for a specific week or two-week period.  A continued 
 32.33  biweekly request shall include information on possible issues of 
 32.34  eligibility and disqualification in accordance with section 
 32.35  268.101, subdivision 1, paragraph (c). 
 32.36     Sec. 22.  Minnesota Statutes 2004, section 268.086, 
 33.1   subdivision 3, is amended to read: 
 33.2      Subd. 3.  [METHODS FOR FILING CONTINUED BIWEEKLY REQUESTS 
 33.3   FOR UNEMPLOYMENT BENEFITS.] (a) The commissioner shall designate 
 33.4   to each applicant one of the following methods for filing a 
 33.5   continued biweekly request: 
 33.6      (1) by telephone under subdivision 4; 
 33.7      (2) by electronic transmission under subdivision 5; 
 33.8      (3) (2) by mail under subdivision 6; or 
 33.9      (4) (3) by in-person interview under subdivision 7. 
 33.10     (b) The method designated by the commissioner shall be the 
 33.11  only method allowed for filing a continued biweekly request by 
 33.12  that applicant.  An applicant may ask that one of the other 
 33.13  allowed methods be designated and the commissioner shall 
 33.14  consider inconvenience to the applicant as well as 
 33.15  administrative capacity in determining whether to allow an 
 33.16  applicant to change the designated method for filing a continued 
 33.17  biweekly request for unemployment benefits. 
 33.18     Sec. 23.  Minnesota Statutes 2004, section 268.095, 
 33.19  subdivision 1, is amended to read: 
 33.20     Subdivision 1.  [QUIT.] An applicant who quit employment 
 33.21  shall be disqualified from all unemployment benefits according 
 33.22  to subdivision 10 except when: 
 33.23     (1) the applicant quit the employment because of a good 
 33.24  reason caused by the employer as defined in subdivision 3; 
 33.25     (2) the applicant quit the employment to accept other 
 33.26  covered employment that provided substantially better terms and 
 33.27  conditions of employment, but the applicant did not work long 
 33.28  enough at the second employment to have sufficient subsequent 
 33.29  earnings to satisfy the disqualification that would otherwise be 
 33.30  imposed under subdivision 10 for quitting the first employment; 
 33.31     (3) the applicant quit the employment within 30 calendar 
 33.32  days of beginning the employment because the employment was 
 33.33  unsuitable for the applicant; 
 33.34     (4) the employment was unsuitable for the applicant and the 
 33.35  applicant quit to enter reemployment assistance training; 
 33.36     (5) the employment was part time and the applicant also had 
 34.1   full-time employment in the base period, from which full-time 
 34.2   employment the applicant separated because of nondisqualifying 
 34.3   reasons, and the wage credits from the full-time employment are 
 34.4   sufficient to meet the minimum requirements to establish a 
 34.5   benefit account under section 268.07; 
 34.6      (6) the applicant quit because the employer notified the 
 34.7   applicant that the applicant was going to be laid off due to 
 34.8   lack of work within 30 calendar days.  An applicant who quit 
 34.9   employment within 30 calendar days of a notified date of layoff 
 34.10  due to lack of work shall be disqualified from unemployment 
 34.11  benefits through the end of the week that includes the scheduled 
 34.12  date of layoff; 
 34.13     (7) the applicant quit the employment because the 
 34.14  applicant's serious illness or injury made it medically 
 34.15  necessary that the applicant quit, provided that the applicant 
 34.16  inform the employer of the serious illness or injury and request 
 34.17  accommodation and no reasonable accommodation is made available. 
 34.18     If the applicant's serious illness is chemical dependency, 
 34.19  this exception shall not apply if the applicant was previously 
 34.20  diagnosed as chemically dependent or had treatment for chemical 
 34.21  dependency, and since that diagnosis or treatment has failed to 
 34.22  make consistent efforts to control the chemical dependency; or 
 34.23     (8) domestic abuse of the applicant or the applicant's 
 34.24  minor child, necessitated the applicant's quitting the 
 34.25  employment.  Domestic abuse shall be shown by one or more of the 
 34.26  following: 
 34.27     (i) a court order for protection or other documentation of 
 34.28  equitable relief issued by a court; 
 34.29     (ii) a police record documenting the domestic abuse; 
 34.30     (iii) documentation that the perpetrator of the domestic 
 34.31  abuse has been convicted of the offense of domestic abuse; 
 34.32     (iv) medical documentation of domestic abuse; or 
 34.33     (v) written statement that the applicant or the applicant's 
 34.34  minor child is a victim of domestic abuse, provided by a social 
 34.35  worker, member of the clergy, shelter worker, attorney at law, 
 34.36  or other professional who has assisted the applicant in dealing 
 35.1   with the domestic abuse. 
 35.2      Domestic abuse for purposes of this clause shall be defined 
 35.3   under section 518B.01. 
 35.4      Sec. 24.  Minnesota Statutes 2004, section 268.095, 
 35.5   subdivision 4, is amended to read: 
 35.6      Subd. 4.  [DISCHARGE.] An applicant who was discharged from 
 35.7   employment by an employer shall not be disqualified from any all 
 35.8   unemployment benefits except when according to subdivision 10 
 35.9   only if: 
 35.10     (1) the applicant was discharged because of employment 
 35.11  misconduct as defined in subdivision 6; or 
 35.12     (2) the applicant was discharged because of aggravated 
 35.13  employment misconduct as defined in subdivision 6a.  
 35.14     Sec. 25.  Minnesota Statutes 2004, section 268.095, 
 35.15  subdivision 7, is amended to read: 
 35.16     Subd. 7.  [ACT OR OMISSIONS AFTER SEPARATION.] Except as 
 35.17  provided for under subdivision 8, An applicant shall not be 
 35.18  disqualified from unemployment benefits under this section for 
 35.19  any acts or omissions occurring after the applicant's separation 
 35.20  from employment with the employer.  A layoff due to lack of work 
 35.21  is considered a separation from employment.  
 35.22     Sec. 26.  Minnesota Statutes 2004, section 268.095, 
 35.23  subdivision 8, is amended to read: 
 35.24     Subd. 8.  [OFFERS OF SUITABLE EMPLOYMENT.] (a) An applicant 
 35.25  shall be disqualified from ineligible for all unemployment 
 35.26  benefits for eight calendar weeks if the applicant, without good 
 35.27  cause: 
 35.28     (1) failed to apply for available, suitable employment of 
 35.29  which the applicant was advised by the commissioner or an 
 35.30  employer; 
 35.31     (2) failed to accept suitable employment when offered; or 
 35.32     (3) avoided an offer of suitable employment. 
 35.33     (b) "Good cause" is a reason that would cause a reasonable 
 35.34  individual who wants suitable employment to fail to apply for, 
 35.35  accept, or avoid suitable employment.  Good cause includes: 
 35.36     (1) the applicant is employed in other suitable employment; 
 36.1      (2) the applicant is in reemployment assistance training; 
 36.2      (3) the applicant formerly worked for the employer and the 
 36.3   loss of employment occurred prior to the commencement of a labor 
 36.4   dispute, was permanent or for an indefinite period, and the 
 36.5   applicant failed to apply for or accept the employment because a 
 36.6   labor dispute was in progress at the establishment; or 
 36.7      (4) the applicant formerly worked for the employer and quit 
 36.8   that employment because of a good reason caused by the employer. 
 36.9      (c) This subdivision only applies to offers of suitable 
 36.10  employment with a new or a former employer and does not apply to 
 36.11  any type of job transfers, position reassignments, or changes in 
 36.12  job duties or responsibilities during the course of employment 
 36.13  with an employer. 
 36.14     (d) The period of ineligibility under this section shall 
 36.15  begin the Sunday of the week the applicant failed to apply for, 
 36.16  accept, or avoided suitable employment without good cause.  
 36.17     (e) This section shall apply to offers of suitable 
 36.18  employment that occur prior to the effective date of the benefit 
 36.19  account and that occur during the benefit year. 
 36.20     (f) This section shall only apply to offers of suitable 
 36.21  employment that are considered covered employment under section 
 36.22  268.035, subdivision 12. 
 36.23     Sec. 27.  Minnesota Statutes 2004, section 268.095, 
 36.24  subdivision 10, is amended to read: 
 36.25     Subd. 10.  [DISQUALIFICATION DURATION.] (a) A 
 36.26  disqualification from the payment of all unemployment benefits 
 36.27  under subdivisions 1, and 4, and 8 shall be for the duration of 
 36.28  the applicant's unemployment and until the end of the calendar 
 36.29  week that the applicant had total earnings in subsequent covered 
 36.30  employment of eight times the applicant's weekly unemployment 
 36.31  benefit amount. 
 36.32     (b) Any disqualification imposed under subdivisions 1 and 4 
 36.33  shall begin on the Sunday of the week that the applicant became 
 36.34  separated from employment.  Any disqualification imposed under 
 36.35  subdivision 8 shall begin on the Sunday of the week the 
 36.36  applicant failed to apply for, accept, or avoided employment. 
 37.1      (c) In addition to paragraph (a), if the applicant was 
 37.2   discharged from employment because of aggravated employment 
 37.3   misconduct, wage credits from that employment shall be canceled. 
 37.4      Sec. 28.  Minnesota Statutes 2004, section 268.095, 
 37.5   subdivision 11, is amended to read: 
 37.6      Subd. 11.  [APPLICATION.] (a) This section shall apply to 
 37.7   all covered employment, full time or part time, temporary or of 
 37.8   limited duration, permanent or of indefinite duration, that 
 37.9   occurred in Minnesota during the base period, the period between 
 37.10  the end of the base period and the effective date of the benefit 
 37.11  account, or the benefit year, except as provided for in 
 37.12  subdivision 1, clause (5).  Subdivision 8 shall only apply to 
 37.13  offers of suitable employment made during the applicant's 
 37.14  benefit year. 
 37.15     (b) Paragraph (a) shall also apply to employment covered 
 37.16  under an unemployment insurance program of any other state or 
 37.17  established by an act of Congress. 
 37.18     Sec. 29.  Minnesota Statutes 2004, section 268.101, 
 37.19  subdivision 1, is amended to read: 
 37.20     Subdivision 1.  [NOTIFICATION.] (a) In an application for 
 37.21  unemployment benefits, each applicant shall report the name and 
 37.22  the reason for no longer working for the applicant's most recent 
 37.23  employer, as well as the names of all employers and the reasons 
 37.24  for no longer working for all employers during the six calendar 
 37.25  months prior to the date of the application.  If the reason 
 37.26  reported for no longer working for any of those employers is 
 37.27  other than a layoff due to lack of work, that shall raise an 
 37.28  issue of disqualification that the department shall 
 37.29  determine.  An applicant shall report any offers of employment 
 37.30  refused during the eight calendar weeks prior to the date of the 
 37.31  application for unemployment benefits and the name of the 
 37.32  employer that made the offer.  An applicant's failure to report 
 37.33  the name of an employer, or giving an incorrect reason for no 
 37.34  longer working for an employer, or failing to disclose an offer 
 37.35  of employment that was refused, shall be considered a violation 
 37.36  of section 268.182, paragraph (b) subdivision 2.  
 38.1      In an application, the applicant shall also provide all 
 38.2   information necessary to determine the applicant's eligibility 
 38.3   for unemployment benefits under section 268.085.  If the 
 38.4   applicant fails or refuses to provide information necessary to 
 38.5   determine the applicant's eligibility for unemployment benefits 
 38.6   under section 268.085, the applicant shall be ineligible for 
 38.7   unemployment benefits under section 268.085, subdivision 2, 
 38.8   until the applicant provides this required information. 
 38.9      (b) Upon establishment of a benefit account, the 
 38.10  commissioner shall notify, by mail or electronic transmission, 
 38.11  all employers the applicant was required to report on the 
 38.12  application and all base period employers and determined 
 38.13  successors to those employers under section 268.051, subdivision 
 38.14  4 in order to provide the employer an opportunity to raise, in a 
 38.15  manner prescribed by the commissioner, any issue of 
 38.16  disqualification or any issue of eligibility.  An employer shall 
 38.17  be informed of the effect that failure to raise an issue of 
 38.18  disqualification within ten calendar days after sending of the 
 38.19  notice, as provided for under subdivision 2, paragraph (b), may 
 38.20  have on the employer under section 268.047.  
 38.21     (c) Each applicant shall report any employment, loss of 
 38.22  employment, and offers of employment received refused, during 
 38.23  those weeks the applicant filed continued biweekly requests for 
 38.24  unemployment benefits pursuant to section 268.086.  Each 
 38.25  applicant who stops filing continued biweekly requests during 
 38.26  the benefit year and later begins filing continued biweekly 
 38.27  requests during that same benefit year shall report the name of 
 38.28  any employer the applicant worked for during the period between 
 38.29  the filing of continued biweekly requests and the reason the 
 38.30  applicant stopped working for the employer.  The applicant shall 
 38.31  report any offers of employment refused during the period 
 38.32  between the filing of continued biweekly requests for 
 38.33  unemployment benefits.  Those employers from which the applicant 
 38.34  has reported a loss of employment or an offer of employment 
 38.35  pursuant to this paragraph shall be notified by mail or 
 38.36  electronic transmission and provided an opportunity to raise, in 
 39.1   a manner prescribed by the commissioner, any issue of 
 39.2   disqualification or any issue of eligibility.  An employer shall 
 39.3   be informed of the effect that failure to raise an issue may 
 39.4   have on the employer under section 268.047.  
 39.5      (d) The purpose for requiring the applicant to report the 
 39.6   name of employers and the reason for no longer working for those 
 39.7   employers, or offers of employment refused, under paragraphs (a) 
 39.8   and (c) is for the commissioner to obtain information from an 
 39.9   applicant raising all issues that may have the potential of 
 39.10  disqualifying the applicant from unemployment benefits under 
 39.11  section 268.095, or the applicant being ineligible for 
 39.12  unemployment benefits under section 268.085, subdivision 13c.  
 39.13  If the reason given by the applicant for no longer working for 
 39.14  an employer is other than a layoff due to lack of work, that 
 39.15  shall raise an issue of disqualification and the applicant shall 
 39.16  be required, as part of the determination process under 
 39.17  subdivision 2, paragraph (a), to state all the facts about the 
 39.18  cause for no longer working for the employer, if known.  If the 
 39.19  applicant fails or refuses to provide this any required 
 39.20  information, the applicant shall be ineligible for unemployment 
 39.21  benefits under section 268.085, subdivision 2, until the 
 39.22  applicant provides this required information. 
 39.23     Sec. 30.  Minnesota Statutes 2004, section 268.101, 
 39.24  subdivision 3a, is amended to read: 
 39.25     Subd. 3a.  [DIRECT HEARING.] Regardless of any provision of 
 39.26  the Minnesota Unemployment Insurance Law, the commissioner or an 
 39.27  unemployment law judge or a senior unemployment review judge 
 39.28  may, prior to a determination being made under this chapter, 
 39.29  refer any issue of disqualification, any issue of eligibility, 
 39.30  or any other issue under this chapter, directly for hearing in 
 39.31  accordance with section 268.105, subdivision 1.  The status of 
 39.32  the issue shall be the same as if a determination had been made 
 39.33  and an appeal filed. 
 39.34     Sec. 31.  Minnesota Statutes 2004, section 268.103, 
 39.35  subdivision 2, is amended to read: 
 39.36     Subd. 2.  [APPLICANT'S APPEAL BY MAIL.] (a) The 
 40.1   commissioner must allow an applicant to file an appeal to be 
 40.2   filed by mail even if an appeal by electronic transmission is 
 40.3   allowed. 
 40.4      (b) A written statement delivered or mailed to the 
 40.5   department that could reasonably be interpreted to mean that an 
 40.6   involved applicant or employer is in disagreement with a 
 40.7   specific determination or decision shall be considered an 
 40.8   appeal.  No specific words need be used for the written 
 40.9   statement to be considered an appeal. 
 40.10     Sec. 32.  Minnesota Statutes 2004, section 268.105, is 
 40.11  amended to read: 
 40.12     268.105 [APPEALS.] 
 40.13     Subdivision 1.  [EVIDENTIARY HEARING BY AN UNEMPLOYMENT LAW 
 40.14  JUDGE.] (a) Upon a timely appeal having been filed, the 
 40.15  department shall send a notice of appeal to all involved parties 
 40.16  that an appeal has been filed, that a de novo due process 
 40.17  evidentiary hearing will be scheduled, and that the parties have 
 40.18  certain rights and responsibilities regarding the hearing.  The 
 40.19  department shall set a time and place for a de novo due process 
 40.20  evidentiary hearing and send notice to any involved applicant 
 40.21  and any involved employer, by mail or electronic transmission, 
 40.22  not less than ten calendar days prior to the date of the hearing.
 40.23     (b) The evidentiary hearing shall be conducted by an 
 40.24  unemployment law judge without regard to any common law burden 
 40.25  of proof as an evidence gathering inquiry and not an adversarial 
 40.26  proceeding.  The unemployment law judge shall ensure that all 
 40.27  relevant facts are clearly and fully developed.  The department 
 40.28  shall adopt rules on evidentiary hearings.  The rules need not 
 40.29  conform to common law or statutory rules of evidence and other 
 40.30  technical rules of procedure.  The department shall have 
 40.31  discretion regarding the method by which the evidentiary hearing 
 40.32  is conducted.  A report of any employee of the department, 
 40.33  except a determination, made in the regular course of the 
 40.34  employee's duties, shall be competent evidence of the facts 
 40.35  contained in it. 
 40.36     (c) After the conclusion of the hearing, upon the evidence 
 41.1   obtained, the unemployment law judge shall make findings of fact 
 41.2   and decision and send those, by mail or electronic transmission, 
 41.3   to all involved parties.  The unemployment law judge's decision 
 41.4   is the final department decision unless a further appeal motion 
 41.5   for reconsideration is filed pursuant to subdivision 2. 
 41.6      (d) Only employees of the department who are attorneys 
 41.7   shall serve as unemployment law judges.  A senior unemployment 
 41.8   review judge The commissioner may personally hear or transfer to 
 41.9   another unemployment law judge any proceedings pending before an 
 41.10  unemployment law judge.  Any proceedings removed to a senior 
 41.11  unemployment review judge shall be heard in accordance with this 
 41.12  subdivision. 
 41.13     Subd. 2.  [DE NOVO REVIEW BY A SENIOR UNEMPLOYMENT REVIEW 
 41.14  JUDGE.] (a) Except as provided under subdivision 2a, any 
 41.15  involved applicant or involved employer may appeal a decision of 
 41.16  an unemployment law judge and obtain a de novo review by a 
 41.17  senior unemployment review judge by filing with a senior 
 41.18  unemployment review judge an appeal within 30 calendar days 
 41.19  after the sending of the unemployment law judge's decision.  A 
 41.20  senior unemployment review judge within the same period of time 
 41.21  may, on a senior unemployment review judge's own motion, order a 
 41.22  de novo review of any decision of an unemployment law judge.  
 41.23     (b) A senior unemployment review judge shall be an attorney 
 41.24  who is an employee of the department.  
 41.25     (c) Upon de novo review, a senior unemployment review judge 
 41.26  shall, on the basis of that evidence submitted at the 
 41.27  evidentiary hearing under subdivision 1, make findings of fact 
 41.28  and decision, or remand the matter back to an unemployment law 
 41.29  judge for the taking of additional evidence and the making of 
 41.30  new findings and decision based on all the evidence.  A senior 
 41.31  unemployment review judge shall, independent of the findings of 
 41.32  fact and decision of the unemployment law judge, examine the 
 41.33  evidence and make those findings of fact as the evidence, in the 
 41.34  judgment of the senior unemployment review judge require, and 
 41.35  make that decision as the facts found by the senior unemployment 
 41.36  review judge require.  
 42.1      (d) A senior unemployment review judge may conduct a de 
 42.2   novo review without argument by any involved party, or a senior 
 42.3   unemployment review judge may allow written argument.  A senior 
 42.4   unemployment review judge shall not, except for purposes of 
 42.5   deciding whether to remand a matter to an unemployment law judge 
 42.6   for a further evidentiary hearing, consider any evidence that 
 42.7   was not submitted at the hearing before the unemployment law 
 42.8   judge.  
 42.9      (e) The senior unemployment review judge shall send, by 
 42.10  mail or electronic transmission, to any involved party the 
 42.11  senior unemployment review judge's findings of fact and 
 42.12  decision.  The decision of the senior unemployment review judge 
 42.13  is the final decision of the department.  Unless judicial review 
 42.14  is sought under subdivision 7, the decision of the senior 
 42.15  unemployment review judge shall become final 30 calendar days 
 42.16  after sending. 
 42.17     Subd. 2a.  [ORDERS BY A SENIOR UNEMPLOYMENT REVIEW JUDGE.] 
 42.18  (a) If an applicant or employer files an appeal in a matter 
 42.19  where an unemployment law judge affirmed a determination issued 
 42.20  under section 268.101, and there is no dispute regarding the 
 42.21  determinative facts, a senior unemployment review judge shall 
 42.22  have the discretion to decline to conduct a de novo review.  If 
 42.23  de novo review is declined, the senior unemployment review judge 
 42.24  shall issue an order adopting the unemployment law judge's 
 42.25  findings of fact and decision. 
 42.26     (b) If an involved party fails, without good cause, to 
 42.27  appear and participate at the evidentiary hearing conducted by 
 42.28  an unemployment law judge under subdivision 1, and that party 
 42.29  files an appeal, a senior unemployment review judge shall have 
 42.30  the discretion to decline to conduct a de novo review.  If de 
 42.31  novo review is declined, the senior unemployment review judge 
 42.32  shall issue an order dismissing the appeal. 
 42.33     Submission of a written statement shall not constitute an 
 42.34  appearance and participation at an evidentiary hearing for 
 42.35  purposes of this paragraph. 
 42.36     All involved parties must be notified of this paragraph 
 43.1   with the notice of appeal and notice of hearing provided for 
 43.2   under subdivision 1.  The senior unemployment review judge shall 
 43.3   allow for the submission of a written argument on the issue of 
 43.4   good cause before dismissing an appeal under this paragraph.  
 43.5      "Good cause" for purposes of this paragraph is a compelling 
 43.6   reason that would have prevented a reasonable person acting with 
 43.7   due diligence from appearing and participating at the 
 43.8   evidentiary hearing. 
 43.9      (c) The senior unemployment review judge shall send to any 
 43.10  involved party the order issued under this subdivision.  The 
 43.11  order may be sent by mail or electronic transmission.  Unless 
 43.12  judicial review is sought under subdivision 7, the order of a 
 43.13  senior unemployment review judge becomes final 30 calendar days 
 43.14  after sending. [MOTION FOR RECONSIDERATION.] (a) Any involved 
 43.15  applicant or involved employer may, within 30 calendar days of 
 43.16  the sending of the unemployment law judge's decision under 
 43.17  subdivision 1, file a motion for reconsideration asking the 
 43.18  unemployment law judge to reconsider that decision.  The 
 43.19  commissioner may file a motion for reconsideration, and the 
 43.20  unemployment law judge may reconsider any decision, on the 
 43.21  unemployment law judge's own motion, within that same 
 43.22  30-calendar-day period of time.  Section 268.103 applies to a 
 43.23  motion for reconsideration.  If a motion for reconsideration is 
 43.24  timely filed, the unemployment law judge shall issue an order: 
 43.25     (1) correcting the findings of fact and decision issued 
 43.26  under subdivision 1; 
 43.27     (2) setting aside the findings of fact and decision issued 
 43.28  under subdivision 1 and directing that an additional evidentiary 
 43.29  hearing be conducted under subdivision 1; or 
 43.30     (3) affirming the findings of fact and decision issued 
 43.31  under subdivision 1. 
 43.32     (b) In deciding a motion for reconsideration, the 
 43.33  unemployment law judge shall not, except for purposes of 
 43.34  determining whether to order an additional evidentiary hearing, 
 43.35  consider any evidence that was not submitted at the evidentiary 
 43.36  hearing conducted under subdivision 1. 
 44.1      (c) If the involved applicant or involved employer who 
 44.2   filed the motion for reconsideration failed to participate in 
 44.3   the evidentiary hearing conducted under subdivision 1, an order 
 44.4   setting aside the findings of fact and decision and directing 
 44.5   that an additional evidentiary hearing be conducted must be 
 44.6   issued if the party who failed to participate had good cause for 
 44.7   failing to do so. 
 44.8      Submission of a written statement at the evidentiary 
 44.9   hearing under subdivision 1 shall not constitute participation 
 44.10  for purposes of this paragraph. 
 44.11     "Good cause" for purposes of this paragraph is a reason 
 44.12  that would have prevented a reasonable person acting with due 
 44.13  diligence from participating at the evidentiary hearing. 
 44.14     (d) A motion for reconsideration shall be decided by the 
 44.15  unemployment law judge who issued the findings of fact and 
 44.16  decision under subdivision 1 unless that unemployment law 
 44.17  judge:  (1) is no longer employed by the department; (2) is on 
 44.18  an extended or indefinite leave; (3) has been disqualified from 
 44.19  the proceedings on the judge's own motion; or (4) has been 
 44.20  removed from the proceedings as provided for under subdivision 1 
 44.21  or applicable rule. 
 44.22     (e) The unemployment law judge shall send to any involved 
 44.23  applicant or involved employer, by mail or electronic 
 44.24  transmission, the order issued under this subdivision.  An order 
 44.25  correcting the previously issued findings of fact and decision 
 44.26  or an order affirming the previously issued findings of fact and 
 44.27  decision shall be the final department decision on the matter 
 44.28  and shall be final and binding on the involved applicant or 
 44.29  involved employer unless judicial review is sought under 
 44.30  subdivision 7. 
 44.31     Subd. 3.  [WITHDRAWAL OF APPEAL.] (a) Any appeal that is 
 44.32  pending before an unemployment law judge or a senior 
 44.33  unemployment review judge may be withdrawn by the appealing 
 44.34  person, or an authorized representative of that person, upon 
 44.35  filing of a notice of withdrawal. 
 44.36     (b) The appeal shall, by order, be dismissed if a notice of 
 45.1   withdrawal is filed, unless an unemployment law judge or a 
 45.2   senior unemployment review judge, by order, directs that further 
 45.3   adjudication is required for a proper result. 
 45.4      (c) A notice of withdrawal may be filed by mail or by 
 45.5   electronic transmission. 
 45.6      Subd. 3a.  [DECISIONS.] (a) If an unemployment law judge's 
 45.7   decision or a senior unemployment review judge's decision or 
 45.8   order allows unemployment benefits to an applicant, the 
 45.9   unemployment benefits shall be paid regardless of any appeal 
 45.10  period motion for reconsideration or any appeal having been 
 45.11  filed. 
 45.12     (b) If an unemployment law judge's decision or order 
 45.13  modifies or reverses a determination allowing unemployment 
 45.14  benefits to an applicant, any benefits paid pursuant to the 
 45.15  determination is considered an overpayment of those unemployment 
 45.16  benefits under section 268.18, subdivision 1. 
 45.17     (c) If a senior unemployment review judge's decision 
 45.18  modifies or reverses an unemployment law judge's decision 
 45.19  allowing unemployment benefits to an applicant, any unemployment 
 45.20  benefits paid pursuant to the unemployment law judge's decision 
 45.21  is considered an overpayment of those unemployment benefits 
 45.22  under section 268.18, subdivision 1. 
 45.23     (d) If a senior unemployment review judge affirms an 
 45.24  unemployment law judge's decision on an issue of 
 45.25  disqualification that order under subdivision 2 allows 
 45.26  unemployment benefits to an applicant under section 268.095 
 45.27  because of a quit or discharge and the senior unemployment 
 45.28  review law judge's decision or order is reversed by the 
 45.29  Minnesota Court of Appeals or the Supreme Court of 
 45.30  Minnesota, any unemployment benefits paid the applicant shall 
 45.31  not be disqualified from considered an overpayment of those 
 45.32  unemployment benefits under section 268.095 268.18, 
 45.33  subdivision 10 1.  
 45.34     (e) (d) If a senior an unemployment review law judge, 
 45.35  pursuant to subdivision 2, remands a matter to an unemployment 
 45.36  law judge for orders the taking of additional evidence, 
 46.1   the prior unemployment law judge's prior decision shall continue 
 46.2   to be enforced until new findings of fact and decision are made 
 46.3   by an the unemployment law judge. 
 46.4      Subd. 4.  [TESTIMONIAL POWERS.] An unemployment law 
 46.5   judge and a senior unemployment review judge may administer 
 46.6   oaths and affirmations, take depositions, and issue subpoenas to 
 46.7   compel the attendance of witnesses and the production of 
 46.8   documents and other personal property considered necessary as 
 46.9   evidence in connection with the subject matter of an evidentiary 
 46.10  hearing.  The subpoenas shall be enforceable through the 
 46.11  district court in the district that the subpoena is issued.  
 46.12  Witnesses subpoenaed, other than an involved applicant or 
 46.13  involved employer or officers and employees of an involved 
 46.14  employer, shall be paid by the department the same witness fees 
 46.15  as in a civil action in district court.  
 46.16     Subd. 5.  [USE OF EVIDENCE; DATA PRIVACY.] (a) All 
 46.17  testimony at any evidentiary hearing conducted pursuant to 
 46.18  subdivision 1 shall be recorded.  A copy of any recorded 
 46.19  testimony and exhibits offered or received into evidence at the 
 46.20  hearing shall, upon request, or upon directive of a senior 
 46.21  unemployment review judge, be furnished to a party at no cost 
 46.22  during the time period for filing an appeal to a senior 
 46.23  unemployment review judge a motion for reconsideration or while 
 46.24  such an appeal a motion for reconsideration is pending.  If 
 46.25  requested, the department shall make available a device for 
 46.26  listening to the recording if an appeal is pending before a 
 46.27  senior unemployment review judge under subdivision 2. 
 46.28     (b) Regardless of any provision of law to the contrary, if 
 46.29  recorded testimony and exhibits received into evidence at the 
 46.30  evidentiary hearing are not requested during the time period for 
 46.31  filing an appeal to a senior unemployment review judge a motion 
 46.32  for reconsideration, or while such an appeal a motion for 
 46.33  reconsideration is pending, that testimony and other evidence 
 46.34  shall later be made available to an involved party only pursuant 
 46.35  to a district court order.  A subpoena shall not be considered a 
 46.36  district court order. 
 47.1      (c) Testimony obtained under subdivision 1, may not be used 
 47.2   or considered for any purpose, including impeachment, in any 
 47.3   civil, administrative, or contractual proceeding, except by a 
 47.4   local, state, or federal human rights agency with enforcement 
 47.5   powers, unless the proceeding is initiated by the department. 
 47.6      Subd. 5a.  [NO COLLATERAL ESTOPPEL.] No findings of fact or 
 47.7   decision or order issued by an unemployment law judge or a 
 47.8   senior unemployment review judge may be held conclusive or 
 47.9   binding or used as evidence in any separate or subsequent action 
 47.10  in any other forum, be it contractual, administrative, or 
 47.11  judicial, except proceedings provided for under this chapter, 
 47.12  regardless of whether the action involves the same or related 
 47.13  parties or involves the same facts. 
 47.14     Subd. 6.  [REPRESENTATION; FEES.] (a) In any proceeding 
 47.15  under subdivision 1, or 2, or 2a, an applicant or involved 
 47.16  employer may be represented by any agent.  
 47.17     (b) Except for services provided by an attorney-at-law, an 
 47.18  applicant shall not be charged fees, costs, or disbursements of 
 47.19  any kind in a proceeding before an unemployment law judge, a 
 47.20  senior unemployment review judge, the Minnesota Court of 
 47.21  Appeals, or the Supreme Court of Minnesota. 
 47.22     Subd. 7.  [JUDICIAL REVIEW.] (a) The Minnesota Court of 
 47.23  Appeals shall, by writ of certiorari to the department, review 
 47.24  the senior unemployment review law judge's decision under 
 47.25  subdivision 2 or order under subdivision 2a, provided a petition 
 47.26  for the writ is filed with the court and a copy is served upon 
 47.27  the senior unemployment review law judge or the commissioner and 
 47.28  any other involved party within 30 calendar days of the sending 
 47.29  of the senior unemployment review law judge's decision under 
 47.30  subdivision 2 or order under subdivision 2a 2.  
 47.31     (b) Any employer petitioning for a writ of certiorari shall 
 47.32  pay to the court the required filing fee and upon the service of 
 47.33  the writ shall furnish a cost bond to the department in 
 47.34  accordance with the Rules of Civil Appellate Procedure.  If the 
 47.35  employer requests a written transcript of the testimony received 
 47.36  at the evidentiary hearing conducted pursuant to subdivision 1, 
 48.1   the employer shall pay to the department the cost of preparing 
 48.2   the transcript.  That money shall be credited to the 
 48.3   administration account. 
 48.4      (c) Upon issuance by the Minnesota Court of Appeals of a 
 48.5   writ of certiorari as a result of an applicant's petition, the 
 48.6   department shall furnish to the applicant at no cost a written 
 48.7   transcript of any testimony received at the evidentiary hearing 
 48.8   conducted pursuant to subdivision 1, and, if requested, a copy 
 48.9   of all exhibits entered into evidence.  No filing fee or cost 
 48.10  bond shall be required of an applicant petitioning the Minnesota 
 48.11  Court of Appeals for a writ of certiorari.  
 48.12     (d) The department shall be considered the primary 
 48.13  responding party to any judicial action involving a senior an 
 48.14  unemployment review law judge's decision or order.  The 
 48.15  department may be represented by an attorney who is an employee 
 48.16  of the department. 
 48.17     [EFFECTIVE DATE.] This section applies to unemployment law 
 48.18  judge decisions issued on or after 30 days following final 
 48.19  enactment. 
 48.20     Sec. 33.  Minnesota Statutes 2004, section 268.145, 
 48.21  subdivision 1, is amended to read: 
 48.22     Subdivision 1.  [NOTIFICATION.] (a) Upon filing an 
 48.23  application for unemployment benefits, the applicant shall be 
 48.24  informed that: 
 48.25     (1) unemployment benefits are subject to federal and state 
 48.26  income tax; 
 48.27     (2) there are requirements for filing estimated tax 
 48.28  payments; 
 48.29     (3) the applicant may elect to have federal income tax 
 48.30  withheld from unemployment benefits; 
 48.31     (4) if the applicant elects to have federal income tax 
 48.32  withheld, the applicant may, in addition, elect to have 
 48.33  Minnesota state income tax withheld; and 
 48.34     (5) at any time during the benefit year the applicant may 
 48.35  change a prior election. 
 48.36     (b) If an applicant elects to have federal income tax 
 49.1   withheld, the commissioner shall deduct ten percent for federal 
 49.2   income tax, rounded down to the next lower whole dollar. If an 
 49.3   applicant also elects to have Minnesota state income tax 
 49.4   withheld, the commissioner shall make an additional five percent 
 49.5   deduction for state income tax, rounded down to the next lower 
 49.6   whole dollar.  Any amounts deducted or offset pursuant to 
 49.7   sections 268.155, 268.156, 268.18, and 268.184 have priority 
 49.8   over any amounts deducted under this section.  Federal income 
 49.9   tax withholding has priority over state income tax withholding. 
 49.10     (c) An election to have income tax withheld shall not be 
 49.11  retroactive and shall only apply to unemployment benefits paid 
 49.12  after the election. 
 49.13     Sec. 34.  Minnesota Statutes 2004, section 268.18, 
 49.14  subdivision 1, is amended to read: 
 49.15     Subdivision 1.  [NONFRAUD OVERPAYMENT.] (a) Any applicant 
 49.16  who (1) by reason of the applicant's own mistake, or (2) because 
 49.17  of an error by any employee of the department, or (3) because of 
 49.18  a determination or amended determination issued pursuant to 
 49.19  section 268.07 or 268.101, or (4) because of an appeal decision 
 49.20  under section 268.105, has received any unemployment benefits 
 49.21  that the applicant was not entitled to, shall promptly repay the 
 49.22  unemployment benefits to the trust fund. The commissioner shall, 
 49.23  as soon as the overpayment is discovered, determine the amount 
 49.24  due and notify the applicant to repay the unemployment benefits. 
 49.25     (b) Unless the applicant files an appeal within 30 calendar 
 49.26  days after the sending of the determination of overpayment to 
 49.27  the applicant by mail or electronic transmission, the 
 49.28  determination shall become final.  Proceedings on the appeal 
 49.29  shall be conducted in accordance with section 268.105.  An 
 49.30  applicant may not collaterally attack, by way of an appeal to an 
 49.31  overpayment determination, any prior determination issued 
 49.32  pursuant to section 268.07 or 268.101, or decision issued 
 49.33  pursuant to section 268.105, that has become final. 
 49.34     (c) If the applicant fails to repay the unemployment 
 49.35  benefits determined overpaid under this subdivision, the 
 49.36  commissioner may offset from any future unemployment benefits 
 50.1   otherwise payable the amount of the overpayment.  Except when 
 50.2   the overpayment resulted because the applicant failed to report 
 50.3   deductible earnings or deductible or benefit delaying payments, 
 50.4   no single offset shall exceed 50 percent of the amount of the 
 50.5   payment from which the offset is made.  The overpayment may also 
 50.6   be collected by the same methods as delinquent payments from an 
 50.7   employer.  A determination of overpayment shall state the 
 50.8   methods of collection the commissioner may use to recover the 
 50.9   overpayment.  
 50.10     (d) If an applicant has been overpaid unemployment benefits 
 50.11  under the law of another state, due to a reason other than 
 50.12  fraud, and that state certifies that the applicant is liable 
 50.13  under its law to repay the unemployment benefits and requests 
 50.14  the commissioner to recover the overpayment, the commissioner 
 50.15  may offset from future unemployment benefits otherwise payable 
 50.16  the amount of overpayment, except that no single offset shall 
 50.17  exceed 50 percent of the amount of the payment from which the 
 50.18  offset is made.  
 50.19     (e) If under paragraph (c) or (d) the reduced unemployment 
 50.20  benefits as a result of a 50 percent offset is not a whole 
 50.21  dollar amount, it shall be rounded down to the next lower whole 
 50.22  dollar. 
 50.23     (f) Unemployment benefits paid for weeks more than three 
 50.24  years prior to the discovery date of a determination of 
 50.25  overpayment issued under this subdivision are shall not be 
 50.26  considered overpaid unemployment benefits. 
 50.27     Sec. 35.  Minnesota Statutes 2004, section 268.18, 
 50.28  subdivision 2, is amended to read: 
 50.29     Subd. 2.  [OVERPAYMENT DUE TO FRAUD.] (a) Any applicant who 
 50.30  receives unemployment benefits by knowingly misrepresenting, 
 50.31  misstating, or failing to disclose any material fact, or who 
 50.32  makes a false statement or representation without a good faith 
 50.33  belief as to the correctness of the statement or representation, 
 50.34  has committed fraud.  After the discovery of facts indicating 
 50.35  fraud, the commissioner shall make a determination that the 
 50.36  applicant obtained unemployment benefits by fraud and that the 
 51.1   applicant must promptly repay the unemployment benefits to the 
 51.2   trust fund.  In addition, the commissioner shall assess a 
 51.3   penalty equal to 25 percent of the amount fraudulently 
 51.4   obtained.  If the applicant had a prior overpayment due to 
 51.5   fraud, the commissioner shall, on the present overpayment, 
 51.6   assess a penalty equal to 50 percent of the amount fraudulently 
 51.7   obtained.  This penalty is in addition to penalties under 
 51.8   section 268.182. 
 51.9      (b) Unless the applicant files an appeal within 30 calendar 
 51.10  days after the sending of the determination of overpayment by 
 51.11  fraud to the applicant by mail or electronic transmission, the 
 51.12  determination shall become final.  Proceedings on the appeal 
 51.13  shall be conducted in accordance with section 268.105.  
 51.14     (c) If the applicant fails to repay the unemployment 
 51.15  benefits, penalty, and interest assessed, the commissioner shall 
 51.16  offset from future unemployment benefits otherwise payable the 
 51.17  total amount due.  The total due may also be collected by the 
 51.18  same methods as delinquent payments from an employer.  A 
 51.19  determination of overpayment by fraud shall state the methods of 
 51.20  collection the commissioner may use to recover the overpayment.  
 51.21  Money received in repayment of fraudulently obtained 
 51.22  unemployment benefits, penalties, and interest shall first be 
 51.23  applied to the unemployment benefits overpaid, then to the 
 51.24  penalty amount due, then to any interest due.  Payments made 
 51.25  toward the penalty and interest shall be credited to the 
 51.26  contingent account. 
 51.27     (d) If an applicant has been overpaid unemployment benefits 
 51.28  under the law of another state because of fraud and that state 
 51.29  certifies that the applicant is liable to repay the unemployment 
 51.30  benefits and requests the commissioner to recover the 
 51.31  overpayment, the commissioner may offset from future 
 51.32  unemployment benefits otherwise payable the amount of 
 51.33  overpayment.  
 51.34     (e) Unemployment benefits paid for weeks more than four 
 51.35  years prior to the date of a determination of overpayment by 
 51.36  fraud may only be made within four years of the effective date 
 52.1   of the benefit account from which the issued under this 
 52.2   subdivision shall not be considered overpaid unemployment 
 52.3   benefits were fraudulently obtained.  
 52.4      Sec. 36.  Minnesota Statutes 2004, section 268.18, 
 52.5   subdivision 2b, is amended to read: 
 52.6      Subd. 2b.  [INTEREST.] (a) On any unemployment benefits 
 52.7   fraudulently obtained, and any penalty amounts assessed under 
 52.8   subdivision 2, the commissioner may assess interest at the rate 
 52.9   of 1-1/2 percent per month on any amount that remains unpaid 30 
 52.10  calendar days after the date of the determination of overpayment 
 52.11  by fraud.  A determination of overpayment by fraud shall state 
 52.12  that interest shall be assessed. 
 52.13     (b) If this subdivision became effective after the date of 
 52.14  the determination, or the determination did not state that 
 52.15  interest shall be assessed, interest shall be assessed beginning 
 52.16  30 calendar days after notification, by mail or electronic 
 52.17  transmission, to the applicant. 
 52.18     (c) Interest payments under this section shall be credited 
 52.19  to the administration account. 
 52.20     Sec. 37.  Minnesota Statutes 2004, section 268.182, 
 52.21  subdivision 2, is amended to read: 
 52.22     Subd. 2.  [ADMINISTRATIVE PENALTIES.] Any individual 
 52.23  applicant who knowingly makes a false statement or 
 52.24  representation, who knowingly fails to disclose a material fact, 
 52.25  or who makes a false statement or representation without a good 
 52.26  faith belief as to the correctness of the statement or 
 52.27  representation, in order to obtain or in an attempt to obtain 
 52.28  unemployment benefits may be assessed, in addition to any other 
 52.29  penalties, an administrative penalty of denial of being 
 52.30  ineligible for unemployment benefits for one to 52 13 to 104 
 52.31  weeks that the individual would otherwise be entitled to 
 52.32  unemployment benefits.  A denial shall not apply to any week 
 52.33  more than two years after the week that the penalty was 
 52.34  determined.  A determination of denial ineligibility setting out 
 52.35  the weeks the applicant shall be ineligible shall be sent to the 
 52.36  individual applicant by mail or electronic transmission.  Unless 
 53.1   an appeal is filed within 30 calendar days of sending, the 
 53.2   determination shall be final.  Proceeding on the appeal shall be 
 53.3   conducted in accordance with section 268.105.  
 53.4      Sec. 38.  [TAX RATE COMPUTATION.] 
 53.5      Notwithstanding any provision of Minnesota Statutes, 
 53.6   chapter 268, to the contrary, the commissioner may compute, to 
 53.7   the nearest 1/100 of a percent, any unemployment tax rate 
 53.8   assigned on or after July 1, 2005, regardless of the year or 
 53.9   portion of any year for which the tax rate is applicable. 
 53.10     Sec. 39.  [REVISOR'S INSTRUCTION.] 
 53.11     (a) The revisor of statutes shall change the name of the 
 53.12  Department of Economic Security to the Department of Employment 
 53.13  and Economic Development in Minnesota Statutes and Minnesota 
 53.14  Rules. 
 53.15     (b) The revisor of statutes shall change the headnote for 
 53.16  Minnesota Statutes, section 268.095 from "DISQUALIFICATION 
 53.17  PROVISIONS" to "DISQUALIFICATION BECAUSE OF A QUIT OR DISCHARGE."
 53.18     (c) The revisor of statutes shall change the headnote for 
 53.19  Minnesota Statutes, section 268.101 from "DETERMINATIONS ON 
 53.20  DISQUALIFICATION AND ELIGIBILITY" to "DETERMINATIONS ON ISSUES 
 53.21  OF DISQUALIFICATION AND ELIGIBILITY." 
 53.22     (d) The revisor of statutes shall renumber Minnesota 
 53.23  Statutes, section 268.095, subdivision 8, as section 268.085, 
 53.24  subdivision 13c, and correct cross-references accordingly. 
 53.25     (e) The revisor of statutes shall change the term "court 
 53.26  order" to "district court order" wherever the term appears in 
 53.27  Minnesota Statutes, sections 268.01 to 268.83. 
 53.28     Sec. 40.  [REPEALER.] 
 53.29     (a) Minnesota Rules, parts 3310.2926; 3310.5000; 3315.0910, 
 53.30  subpart 9; 3315.1301; 3315.1315, subparts 1, 2, and 3; 
 53.31  3315.1650; and 3315.2210, are repealed. 
 53.32     (b) Minnesota Statutes 2004, section 268.086, subdivision 
 53.33  4, is repealed. 
 53.34     (c) Laws 1997, chapter 66, section 64, subdivision 1, is 
 53.35  repealed. 
 53.36     Sec. 41.  [EFFECTIVE DATE.] 
 54.1      Sections 1 to 31, 33 to 38, and 40 are effective July 1, 
 54.2   2005.  Section 39 is effective the day following final enactment.