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
whothat submits the wage detail report, but fails to 3.9 include anyall 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 under3.19 section 268.067or penalty under this subdivision shall be 3.20 canceled if the commissioner determines that the failure or 3.21 error by the employer was inadvertentoccurred 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 assetsworkforce of 4.20 another taxpaying employer ,; and 4.21 (2) there is 25 percent or more common ownership , directly4.22 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 the4.26 purpose of computing a tax rate. 4.27 (b) When a taxpaying employer acquires a distinct severable4.28 portion of the organization, trade, business, or assets that is4.29 less than substantially all of the employing enterprises of4.30 another employer, and there is 25 percent or more common4.31 ownership, directly or indirectly, between the predecessor and4.32 successor, the successor employer shall acquire that percentage4.33 of a predecessor's experience rating equal to that percentage of4.34 the predecessor's employment positions it has obtained, and the4.35 predecessor employer shall retain that percentage of the4.36 experience rating equal to that percentage of the employment5.1 positions that it has retained, if the successor files an5.2 application by electronic transmission, in a format prescribed5.3 by the commissioner, for the transfer of a percentage of the5.4 experience rating of the predecessor within 180 calendar days5.5 from the date of acquisition, that furnishes sufficient5.6 information to substantiate the acquisition and to assign the5.7 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 computingrecomputing 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 own6.19 motion orupon applicationnotification 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 send6.23 the determination to the employer by mail or electronic6.24 transmission. The determination shall be final unless a protest6.25 is filed by the employer within 30 calendar days after sending6.26 the determination. Upon receipt of a protest, the commissioner6.27 shall review all available evidence and determine whether an6.28 error has been made. The commissioner shall either affirm or6.29 make a redetermination on whether the employer is a successor6.30 within the meaning of this subdivision and send the employer, by6.31 mail or electronic transmission, the affirmation or6.32 redetermination. The affirmation or redetermination shall be6.33 final unless an appeal is filed by the employer within 306.34 calendar days after the sending of the affirmation or6.35 redetermination. Proceedings on the appeal shall be conducted6.36 in accordance with section 2126.96.36.199 (g)The commissioner may, as the result of any7.2 determination or decision regardingshall, after determining the 7.3 issue of succession or nonsuccession, recompute the tax 7.4 rate under subdivision 6 of all employers affected by the7.5 determination or decision for any year, including the year of7.6 the acquisition and subsequent years, that is affected by the7.7 transfer or nontransfer of part or all of the experience7.8 rating. This paragraph does not apply to rates that have become7.9 final before the filing of an application for the transfer of a7.10 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 long7.16 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 ofand subdivision 4a means those 7.19 factors set out in subdivision 3, paragraph (b), that normally7.20 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 the7.30 transfer of an experience rating, the commissioner may transfer7.31 all or part of the experience rating regardless of the7.32 requirements or limitations of paragraphs (a) and (b). This7.33 shall include the transferring of employees from the payroll of7.34 an employer with a higher experience rating to the payroll of an7.35 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 ratingsrating 8.4 histories of the corporations shall be combined as of the date 8.5 of acquisition or merger for the purpose of computing8.6 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 provided9.34 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 an10.3 employer that provides its employees to other persons without10.4 severing its employer-employee relationship with the worker for10.5 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 sectionsubdivision 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 sections13.11 268.029 to 268.23this 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 the14.32 followingperson 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 or14.35 nonresident, for profit or nonprofit, religious, charitable, or14.36 educational, including any partnership, limited liability15.1 company, trust, estate, or corporation, domestic or foreign, or15.2 the receiver, trustee in bankruptcy, trustee or successor of any15.3 of the foregoing, or the legal representative of a deceased15.4 person;15.5 (2) any government entity, state or federal, foreign or15.6 domestic, Indian tribe, including any subdivision thereof and15.7 any instrumentality thereof owned wholly or in part;15.8 (3)including any organization orperson 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 agency15.13 providing or authorizing the hiring of homeworkers, personal15.14 care attendants, or other individuals performing similar15.15 services in a private home is the employer of the homeworker,15.16 attendant, or similar worker whether the organization or agency15.17 pays the employee directly or provides funds to the recipient of15.18 the services to pay for the services. This clause does not15.19 apply to the state of Minnesota or any county that provides15.20 federal, state, or local funds to a child care provider either15.21 directly or indirectly through a parent who is a child care15.22 assistance recipient; or15.23 (6) each individual employed to perform or assist in15.24 performing the work of any agent or employee shall be considered15.25 to be employed by that employer whether the individual was hired15.26 or paid directly by that employer or by the agent or employee,15.27 provided the employer had actual or constructive knowledge of15.28 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 forwages 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 forwages 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 a20.15 corporationor 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 no20.27 service in employment, covered employment, noncovered20.28 employment, self-employment, or volunteer work, and with respect20.29 to which the applicant has no earnings; or (2) in any week of20.30 less than 32 hours of service in employment, covered employment, 20.31 noncovered employment, self-employment, or volunteer work if the20.32 ; 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 organization21.7 orperson 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 calendar21.20 quarter after the notice of termination was received by the21.21 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 ora 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 orperson 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 or22.1 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 orperson 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 orperson 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 once22.30 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 districtmay 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 voluntary25.21 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 paymentspaid 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 weekly26.15 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 ofineligible 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 the27.21 trust fund only for weeks occurring during the applicant's27.22 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 of29.35 payment and shall be applied to the period immediately following29.36 the last day of employment. The number of weeks of payment30.1 shall be determined as follows:; 30.2 (i) if the payments are made periodically, the total of the30.3 payments to be received shall be divided by the applicant's last30.4 level of regular weekly pay from the employer; or30.5 (ii) if the payment is made in a lump sum, that sum shall30.6 be divided by the applicant's last level of regular weekly pay30.7 from the employer. This clause shall not apply to vacation pay30.8 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, that30.18 sum shall be divided by the applicant's last level of regular30.19 weekly pay to determine the number of weeks of payment. The30.20 number of weeks of payment shall be applied to the period30.21 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 and32.10 Naturalization ServiceServices 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 notbe disqualified from anyall 35.8 unemployment benefits except whenaccording 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 as35.17 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 fromineligible 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 8shall 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 under36.35 subdivision 8 shall begin on the Sunday of the week the36.36 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 to37.13 offers of suitable employment made during the applicant's37.14 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 receivedrefused, 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 employment38.35 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 thisany 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 judge39.28 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 be40.2 filedby 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 employeris 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 thefinal department decisionunless a further appealmotion 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 unemployment41.8 review judgeThe commissioner may personally hear ortransfer to 41.9 another unemployment law judge any proceedings pending before an 41.10 unemployment law judge. Any proceedings removed to a senior41.11 unemployment review judge shall be heard in accordance with this41.12 subdivision.41.13 Subd. 2. [DE NOVO REVIEW BY A SENIOR UNEMPLOYMENT REVIEW41.14 JUDGE.] (a) Except as provided under subdivision 2a, any41.15 involved applicant or involved employer may appeal a decision of41.16 an unemployment law judge and obtain a de novo review by a41.17 senior unemployment review judge by filing with a senior41.18 unemployment review judge an appeal within 30 calendar days41.19 after the sending of the unemployment law judge's decision. A41.20 senior unemployment review judge within the same period of time41.21 may, on a senior unemployment review judge's own motion, order a41.22 de novo review of any decision of an unemployment law judge.41.23 (b) A senior unemployment review judge shall be an attorney41.24 who is an employee of the department.41.25 (c) Upon de novo review, a senior unemployment review judge41.26 shall, on the basis of that evidence submitted at the41.27 evidentiary hearing under subdivision 1, make findings of fact41.28 and decision, or remand the matter back to an unemployment law41.29 judge for the taking of additional evidence and the making of41.30 new findings and decision based on all the evidence. A senior41.31 unemployment review judge shall, independent of the findings of41.32 fact and decision of the unemployment law judge, examine the41.33 evidence and make those findings of fact as the evidence, in the41.34 judgment of the senior unemployment review judge require, and41.35 make that decision as the facts found by the senior unemployment41.36 review judge require.42.1 (d) A senior unemployment review judge may conduct a de42.2 novo review without argument by any involved party, or a senior42.3 unemployment review judge may allow written argument. A senior42.4 unemployment review judge shall not, except for purposes of42.5 deciding whether to remand a matter to an unemployment law judge42.6 for a further evidentiary hearing, consider any evidence that42.7 was not submitted at the hearing before the unemployment law42.8 judge.42.9 (e) The senior unemployment review judge shall send, by42.10 mail or electronic transmission, to any involved party the42.11 senior unemployment review judge's findings of fact and42.12 decision. The decision of the senior unemployment review judge42.13 is the final decision of the department. Unless judicial review42.14 is sought under subdivision 7, the decision of the senior42.15 unemployment review judge shall become final 30 calendar days42.16 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 matter42.19 where an unemployment law judge affirmed a determination issued42.20 under section 268.101, and there is no dispute regarding the42.21 determinative facts, a senior unemployment review judge shall42.22 have the discretion to decline to conduct a de novo review. If42.23 de novo review is declined, the senior unemployment review judge42.24 shall issue an order adopting the unemployment law judge's42.25 findings of fact and decision.42.26 (b) If an involved party fails, without good cause, to42.27 appear and participate at the evidentiary hearing conducted by42.28 an unemployment law judge under subdivision 1, and that party42.29 files an appeal, a senior unemployment review judge shall have42.30 the discretion to decline to conduct a de novo review. If de42.31 novo review is declined, the senior unemployment review judge42.32 shall issue an order dismissing the appeal.42.33 Submission of a written statement shall not constitute an42.34 appearance and participation at an evidentiary hearing for42.35 purposes of this paragraph.42.36 All involved parties must be notified of this paragraph43.1 with the notice of appeal and notice of hearing provided for43.2 under subdivision 1. The senior unemployment review judge shall43.3 allow for the submission of a written argument on the issue of43.4 good cause before dismissing an appeal under this paragraph.43.5 "Good cause" for purposes of this paragraph is a compelling43.6 reason that would have prevented a reasonable person acting with43.7 due diligence from appearing and participating at the43.8 evidentiary hearing.43.9 (c) The senior unemployment review judge shall send to any43.10 involved party the order issued under this subdivision. The43.11 order may be sent by mail or electronic transmission. Unless43.12 judicial review is sought under subdivision 7, the order of a43.13 senior unemployment review judge becomes final 30 calendar days43.14 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 senior44.33 unemployment review judgemay 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 a45.2 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 decisionor 45.8 order allows unemployment benefits to an applicant, the 45.9 unemployment benefits shall be paid regardless of any appeal45.10 periodmotion 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 decision45.18 modifies or reverses an unemployment law judge's decision45.19 allowing unemployment benefits to an applicant, any unemployment45.20 benefits paid pursuant to the unemployment law judge's decision45.21 is considered an overpayment of those unemployment benefits45.22 under section 268.18, subdivision 1.45.23 (d)If a senior unemployment review judge affirmsan 45.24 unemployment law judge's decision on an issue of45.25 disqualification thatorder 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 seniorunemployment 45.28 reviewlaw judge's decision or orderis 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 fromconsidered an overpayment of those 45.32 unemployment benefits under section 268.095268.18, 45.33 subdivision 101. 45.34 (e)(d) If a senioran unemployment reviewlaw judge, 45.35 pursuant to subdivision 2, remands a matter to an unemployment45.36 law judge fororders the taking of additional evidence, 46.1 the priorunemployment law judge's prior decision shall continue 46.2 to be enforced until new findings of fact and decision are made 46.3 by anthe unemployment law judge. 46.4 Subd. 4. [TESTIMONIAL POWERS.] An unemployment law 46.5 judge and a senior unemployment review judgemay 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 senior46.21 unemployment review judge,be furnished to a party at no cost 46.22 during the time period for filing an appeal to a senior46.23 unemployment review judgea motion for reconsideration or while 46.24 such an appeala motion for reconsideration is pending. If46.25 requested, the department shall make available a device for46.26 listening to the recording if an appeal is pending before a46.27 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 judgea motion 46.32 for reconsideration, or while such an appeala 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 a47.8 senior unemployment review judgemay 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, a47.20 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 seniorunemployment reviewlaw judge's decision under47.25 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 seniorunemployment reviewlaw judge or the commissioner and 47.28 any other involved party within 30 calendar days of the sending 47.29 of the seniorunemployment reviewlaw judge's decision under47.30 subdivision 2 ororder under subdivision 2a2. 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 senioran 48.14 unemployment reviewlaw 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 discoverydate of a determination of 50.25 overpayment issued under this subdivision areshall 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 interestshall 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 date52.1 of the benefit account from which theissued 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 individual52.23 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 ofbeing 52.30 ineligible for unemployment benefits for one to 5213 to 104 52.31 weeks that the individual would otherwise be entitled to52.32 unemployment benefits. A denial shall not apply to any week52.33 more than two years after the week that the penalty was52.34 determined. A determination of denialineligibility setting out 52.35 the weeks the applicant shall be ineligible shall be sent to the 52.36 individualapplicant 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.