2nd 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; modifying appeal procedures; 1.5 amending Minnesota Statutes 2004, sections 268.03, 1.6 subdivision 1; 268.035, subdivisions 9, 13, 14, 20, 1.7 21, 26; 268.042, subdivision 1; 268.043; 268.044, 1.8 subdivisions 1, 2, 3; 268.045, subdivision 1; 268.051, 1.9 subdivisions 1, 4, 6, 7, by adding a subdivision; 1.10 268.052, subdivision 2; 268.053, subdivision 1; 1.11 268.057, subdivision 7; 268.065, subdivision 2; 1.12 268.069, subdivision 1; 268.07, subdivision 3b; 1.13 268.085, subdivisions 1, 2, 3, 5, 12; 268.086, 1.14 subdivisions 2, 3; 268.095, subdivisions 1, 4, 7, 8, 1.15 10, 11; 268.101, subdivisions 1, 3a; 268.103, 1.16 subdivision 2; 268.105; 268.145, subdivision 1; 1.17 268.18, subdivisions 1, 2, 2b; 268.182, subdivision 2; 1.18 268.184, subdivisions 1, 2, by adding a subdivision; 1.19 proposing coding for new law in Minnesota Statutes, 1.20 chapter 268; repealing Minnesota Statutes 2004, 1.21 sections 268.045, subdivisions 2, 3, 4; 268.086, 1.22 subdivision 4; Laws 1997, chapter 66, section 64, 1.23 subdivision 1; Minnesota Rules, parts 3310.2926; 1.24 3310.5000; 3315.0910, subpart 9; 3315.1020; 3315.1301; 1.25 3315.1315, subparts 1, 2, 3; 3315.1650; 3315.2210; 1.26 3315.3210; 3315.3220. 1.27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.28 ARTICLE 1 1.29 FEDERAL CONFORMITY PROVISIONS 1.30 Section 1. [268.0435] [SINGLE MEMBER LIMITED LIABILITY 1.31 COMPANIES.] 1.32 If the only member of a limited liability company is a 1.33 corporation, and the limited liability company is disregarded 1.34 for purposes of filing federal corporate income tax, all the 1.35 workers performing services for the limited liability company 1.36 must be reported on the corporation's wage detail report under 2.1 section 268.044. A corporation that violates this section shall 2.2 be subject to the penalties under section 268.184, subdivision 2.3 1a. Penalties shall be credited to the administration account 2.4 to be used to ensure integrity in the unemployment insurance 2.5 program. 2.6 [EFFECTIVE DATE.] This section is effective for wage detail 2.7 reports for the calendar quarter starting January 1, 2006. 2.8 Sec. 2. Minnesota Statutes 2004, section 268.044, 2.9 subdivision 1, is amended to read: 2.10 Subdivision 1. [WAGE DETAIL REPORT.] (a) Each employer 2.11 that has employees in covered employment shall submit, under the 2.12 account provided for in section 268.045 or 268.046, a quarterly 2.13 wage detail report by electronic transmission, in a format 2.14 prescribed by the commissioner. The report shall include for 2.15 each employee in covered employment, the employee's name, Social 2.16 Security number, the total wages paid to the employee, and total 2.17 number of paid hours worked. For employees exempt from the 2.18 definition of employee in section 177.23, subdivision 7, clause 2.19 (6), the employer shall report 40 hours worked for each week any 2.20 duties were performed by a full-time employee and shall report a 2.21 reasonable estimate of the hours worked for each week duties 2.22 were performed by a part-time employee. In addition, the wage 2.23 detail report shall include the number of employees employed on 2.24 the 12th day of each calendar month and, if required by the 2.25 commissioner, the report shall be broken down by business 2.26 location and
type of employment, if section 268.046, subdivision 2.27 1, paragraph (b), or subdivision 2, paragraph (b), applies, by 2.28 separate unit. If the information required is not submitted in 2.29 a manner and format prescribed by the commissioner, it shall not 2.30 be considered a wage detail report. The report is due and must 2.31 be received by the commissioner on or before the last day of the 2.32 month following the end of the calendar quarter. The 2.33 commissioner may delay the due date on a specific calendar 2.34 quarter in the event the department is unable to accept wage 2.35 detail reports electronically. 2.36 (b) The employer may report the wages paid to the next 3.1 lower whole dollar amount. 3.2 (c) An employer need not include the name of the employee 3.3 or other required information on the wage detail report if 3.4 disclosure is specifically exempted from being reported by 3.5 federal law. 3.6 (d) A wage detail report must be submitted for each 3.7 calendar quarter even though no wages were paid, unless the 3.8 employer has notified the commissioner, under section 268.042, 3.9 subdivision 1, paragraph (c), of termination of business. 3.10 Sec. 3. Minnesota Statutes 2004, section 268.044, 3.11 subdivision 3, is amended to read: 3.12 Subd. 3. [MISSING OR ERRONEOUS INFORMATION.] (a) Any 3.13 employer whothat submits the wage detail report, but fails to 3.14 include anyall employee information or enters erroneous 3.15 information, shall be subject to an administrative service fee 3.16 of $25 for each employee for whom the information is partially 3.17 missing or erroneous. 3.18 (b) Any employer that submits the wage detail report, but 3.19 fails to include an employee, shall be subject to an 3.20 administrative service penalty equal to two percent of the total 3.21 wages for each employee for whom the information is completely 3.22 missing. 3.23 (c) An administrative service fee may be compromised under3.24 section 268.067or penalty under this subdivision shall be 3.25 canceled if the commissioner determines that the failure or 3.26 error by the employer was inadvertentoccurred because of 3.27 ignorance or inadvertence. 3.28 Sec. 4. Minnesota Statutes 2004, section 268.045, 3.29 subdivision 1, is amended to read: 3.30 Subdivision 1. [ACCOUNT FOR EACH EMPLOYER.] The 3.31 commissioner shall maintain (1) a tax account for each taxpaying 3.32 employer and (2) a reimbursable account for each nonprofit or 3.33 government employer that has elected under section 268.052 or 3.34 268.053 to be liable for reimbursements if that employer has3.35 employees in covered employment in the current or the prior3.36 calendar year,except as provided in thissection 268.046. The 4.1 commissioner shall assess the tax account of a taxpaying4.2 employerfor all the taxes due under section 268.051 and credit 4.3 the tax account with all taxes paid. The commissioner shall 4.4 charge the reimbursable account of a nonprofit or government4.5 employer that elects to make reimbursementsfor any unemployment 4.6 benefits determined chargeable to the employerunder section 4.7 268.047 and shall credit the reimbursable account with the 4.8 payments made. 4.9 Sec. 5. [268.046] [TAX AND REIMBURSABLE ACCOUNTS ASSIGNED 4.10 TO EMPLOYEE LEASING COMPANIES, PROFESSIONAL EMPLOYER 4.11 ORGANIZATIONS, OR SIMILAR PERSON.] 4.12 Subdivision 1. [TAX ACCOUNTS ASSIGNED.] (a) Any person 4.13 that contracts with a taxpaying employer to have that person 4.14 obtain the taxpaying employer's workforce and provide workers to 4.15 the taxpaying employer for a fee shall, as of the effective date 4.16 of the contract, be assigned for the duration of the contract 4.17 the taxpaying employer's account under section 268.045. That 4.18 tax account must be maintained by the person separate and 4.19 distinct from every other tax account held by the person and 4.20 identified in a manner prescribed by the commissioner. The tax 4.21 account shall, for the duration of the contract, be considered 4.22 that person's account for all purposes of this chapter. The 4.23 workers obtained from the taxpaying employer and any other 4.24 workers provided by that person to the taxpaying employer must, 4.25 under section 268.044, be reported on the wage detail report 4.26 under that tax account, and that person shall pay any taxes due 4.27 at the tax rate computed for that account under section 268.051, 4.28 subdivision 2. 4.29 (b) Any workers of the taxpaying employer who are not 4.30 covered by the contract under paragraph (a) must be reported by 4.31 the taxpaying employer as a separate unit on the wage detail 4.32 report under the tax account assigned under paragraph (a). 4.33 Taxes and any other amounts due on the wages reported by the 4.34 taxpaying employer under this paragraph may be paid directly by 4.35 the taxpaying employer. 4.36 (c) If the taxpaying employer that contracts with a person 5.1 under paragraph (a) does not have a tax account at the time of 5.2 the execution of the contract, an account must be registered for 5.3 the taxpaying employer under section 268.042, and the new 5.4 employer tax rate under section 268.051, subdivision 5, must be 5.5 assigned. The tax account shall then be assigned to the person 5.6 as provided for in paragraph (a). 5.7 (d) A person that contracts with a taxpaying employer under 5.8 paragraph (a) must, within 30 calendar days of the execution or 5.9 termination of a contract, notify the commissioner by electronic 5.10 transmission, in a format prescribed by the commissioner, of 5.11 that execution or termination. The taxpaying employer's name, 5.12 the account number assigned, and any other information required 5.13 by the commissioner must be provided by that person. 5.14 (e) Any contract subject to paragraph (a) must specifically 5.15 inform the taxpaying employer of the assignment of the tax 5.16 account under this section and the taxpaying employer's 5.17 obligation under paragraph (b). If there is a termination of 5.18 the contract, the tax account shall, as of the date of 5.19 termination, immediately be assigned to the taxpaying employer. 5.20 Subd. 2. [NONPROFIT AND GOVERNMENT REIMBURSABLE ACCOUNTS 5.21 ASSIGNED.] (a) Any person that contracts with a nonprofit or 5.22 government employer that is a reimbursing employer to have that 5.23 person obtain the nonprofit or government employer's workforce 5.24 and provide workers to the nonprofit or government employer for 5.25 a fee, shall, as of the effective date of the contract, be 5.26 assigned for the duration of the contract the nonprofit or 5.27 government employer's account under section 268.045. That 5.28 reimbursable account must be maintained by the person separate 5.29 and distinct from every other account held by the person and 5.30 identified in a manner prescribed by the commissioner. That 5.31 reimbursable account shall, for the duration of the contract, be 5.32 considered that person's account for all purposes of this 5.33 chapter. The workers obtained from the nonprofit or government 5.34 employer and any other workers provided by that person to the 5.35 nonprofit or government employer must, under section 268.044, be 5.36 reported on the wage detail report under that reimbursable 6.1 account, and that person shall pay any reimbursements due. 6.2 (b) Any workers of the nonprofit or government employer who 6.3 are not covered by the contract under paragraph (a) must be 6.4 reported by the nonprofit or government employer as a separate 6.5 unit on the wage detail report under the reimbursable account 6.6 assigned under paragraph (a). Reimbursements and any other 6.7 amounts due on the wages reported by the nonprofit or government 6.8 employer under this paragraph may be paid directly by the 6.9 nonprofit or government employer. 6.10 (c) If the nonprofit or government employer that contracts 6.11 with a person under paragraph (a) does not have an account at 6.12 the time of the execution of the contract, an account must be 6.13 registered for the nonprofit or government employer under 6.14 section 268.042. The reimbursable account shall then be 6.15 assigned to the person as provided for in paragraph (a). 6.16 (d) A person that contracts with a nonprofit or government 6.17 employer under paragraph (a) must, within 30 calendar days of 6.18 the execution or termination of a contract, notify the 6.19 commissioner of that execution or termination by electronic 6.20 transmission, in a format prescribed by the commissioner. The 6.21 nonprofit or government employer's name, the account number 6.22 assigned, and any other information required by the commissioner 6.23 must be provided by that person. 6.24 (e) Any contract subject to paragraph (a) must specifically 6.25 inform the nonprofit or government employer of the assignment of 6.26 the reimbursable account under this section and the nonprofit or 6.27 government employer's obligation under paragraph (b). If there 6.28 is a termination of the contract, the reimbursable account 6.29 shall, as of the date of termination, immediately be assigned to 6.30 the nonprofit or government employer. 6.31 Subd. 3. [PENALTIES; APPLICATION.] (a) Any person that 6.32 violates the requirements of this section and any taxpaying 6.33 employer that violates subdivision 1, paragraph (b), or any 6.34 nonprofit or government employer that violates subdivision 2, 6.35 paragraph (b), shall be subject to the penalties under section 6.36 268.184, subdivision 1a. Penalties shall be credited to the 7.1 administration account to be used to ensure integrity in the 7.2 unemployment insurance program. 7.3 (b) Section 268.051, subdivision 4, does not apply to 7.4 contracts under this section. This section shall not limit or 7.5 prevent the application of section 268.051, subdivision 4, to 7.6 any other transactions or acquisitions involving the taxpaying 7.7 employer. This section shall not limit or prevent the 7.8 application of section 268.051, subdivision 4a. 7.9 (c) An assignment of an account upon the execution of a 7.10 contract under this section and a termination of a contract with 7.11 the corresponding assignment of the account shall not be 7.12 considered a separation from employment of any worker covered by 7.13 the contract. Nothing under this subdivision shall cause the 7.14 person to be liable for any amounts past due under this chapter 7.15 from the taxpaying employer or the nonprofit or government 7.16 employer. 7.17 (d) This section applies to, but is not limited to, persons 7.18 registered under section 79.255, but does not apply to persons 7.19 that obtain an exemption from registration under section 79.255, 7.20 subdivision 9. 7.21 [EFFECTIVE DATE.] This section applies to all contracts 7.22 executed on and after January 1, 2006. 7.23 Sec. 6. Minnesota Statutes 2004, section 268.051, 7.24 subdivision 1, is amended to read: 7.25 Subdivision 1. [PAYMENTS.] (a) Unemployment insurance 7.26 taxes and any additional assessments, fees, or surcharges shall 7.27 accrue and become payable by each employer for each calendar 7.28 year on the taxable wages that the employer paid to employees in 7.29 covered employment, except for: 7.30 (1) nonprofit organizations that elect to make 7.31 reimbursements as provided in section 268.053; and 7.32 (2) the state of Minnesota and political subdivisions that 7.33 make reimbursements, unless they elect to pay taxes as provided 7.34 in section 268.052. 7.35 Except as allowed under section 268.0511, each employer 7.36 shall pay taxes quarterly, at the employer's assigned tax 8.1 rate under subdivision 6, on the taxable wages paid to each 8.2 employee. The commissioner shall compute the tax due from the 8.3 wage detail report required under section 268.044 and notify the 8.4 employer of the tax due. The taxes and any additional 8.5 assessments, fees, or surcharges shall be paid to the trust fund 8.6 and must be received by the department on or before the last day 8.7 of the month following the end of the calendar quarter. 8.8 (b) The tax amount computed, if not a whole dollar, shall 8.9 be rounded down to the next lower whole dollar. 8.10 (c) If for any reason the wages on the wage detail report 8.11 under section 268.044 are adjusted for any quarter, the 8.12 commissioner shall recompute the taxes due for that quarter and 8.13 assess the employer for any amount due or credit the employer as 8.14 appropriate. 8.15 Sec. 7. Minnesota Statutes 2004, section 268.051, 8.16 subdivision 4, is amended to read: 8.17 Subd. 4. [EXPERIENCE RATING HISTORY TRANSFER.] (a) When: 8.18 (1) a taxpaying employer acquires all of the organization, 8.19 trade or business, or substantially all the assetsworkforce of 8.20 another taxpaying employer ,; and 8.21 (2) there is 25 percent or more common ownership , directly8.22 or indirectly,or there is substantially common management or 8.23 control between the predecessor and successor, the experience 8.24 rating history of the predecessor employer shall be transferred 8.25 as of the date of acquisition to the successor employer for the8.26 purpose of computing a tax rate. 8.27 (b) When a taxpaying employer acquires a distinct severable8.28 portion of the organization, trade, business, or assets that is8.29 less than substantially all of the employing enterprises of8.30 another employer, and there is 25 percent or more common8.31 ownership, directly or indirectly, between the predecessor and8.32 successor, the successor employer shall acquire that percentage8.33 of a predecessor's experience rating equal to that percentage of8.34 the predecessor's employment positions it has obtained, and the8.35 predecessor employer shall retain that percentage of the8.36 experience rating equal to that percentage of the employment9.1 positions that it has retained, if the successor files an9.2 application by electronic transmission, in a format prescribed9.3 by the commissioner, for the transfer of a percentage of the9.4 experience rating of the predecessor within 180 calendar days9.5 from the date of acquisition, that furnishes sufficient9.6 information to substantiate the acquisition and to assign the9.7 appropriate percentage of the experience rating.When: 9.8 (1) a taxpaying employer acquires a portion, but less than 9.9 all, of the organization, trade or business, or workforce of 9.10 another taxpaying employer; and 9.11 (2) there is 25 percent or more common ownership or there 9.12 is substantially common management or control between the 9.13 predecessor and successor, the successor employer shall acquire, 9.14 as of the date of acquisition, the experience rating history 9.15 attributable to the portion it acquired, and the predecessor 9.16 employer shall retain the experience rating history attributable 9.17 to the portion that it has retained. If the commissioner 9.18 determines that sufficient information is not available to 9.19 substantiate that a distinct severable portion was acquired and 9.20 to assign the appropriate distinct severable portion of the 9.21 experience rating history, the commissioner shall assign the 9.22 successor employer that percentage of the predecessor employer's 9.23 experience rating history equal to that percentage of the 9.24 employment positions it has obtained, and the predecessor 9.25 employer shall retain that percentage of the experience rating 9.26 history equal to the percentage of the employment positions it 9.27 has retained. 9.28 (c) The term "common ownership" for purposes of this 9.29 subdivision includes ownership by a spouse, parent, grandparent, 9.30 child, grandchild, brother, sister, aunt, uncle, niece, nephew, 9.31 or first cousin, by birth or by marriage. 9.32 (d) Each successor employer that is subject to paragraph 9.33 (a) or (b) must notify the commissioner of the acquisition by 9.34 electronic transmission, in a format prescribed by the 9.35 commissioner, within 30 calendar days of the date of 9.36 acquisition. Any successor employer that fails to notify the 10.1 commissioner is subject to the penalties under section 268.184, 10.2 subdivision 1a, if the successor's experience rating was lower 10.3 than the predecessor's experience rating at the time of the 10.4 acquisition. Penalties shall be credited to the administration 10.5 account to be used to ensure integrity in the unemployment 10.6 insurance program. 10.7 (d)(e) If the successor employer under paragraphs (a) and 10.8 (b) had an experience rating at the time of the acquisition, the 10.9 transferred experience rating history of the predecessor shall 10.10 be combined with the successor's experience rating history, as 10.11 of the date of acquisition, for purposes of 10.12 computingrecomputing a tax rate. 10.13 (e)(f) If there has been a transfer of an experience 10.14 rating history under paragraph (a) or (b), employment with a 10.15 predecessor employer shall not be considered to have been 10.16 terminated if similar employment is offered by the successor 10.17 employer and accepted by the employee. 10.18 (f)(g) The commissioner, upon the commissioner's own10.19 motion orupon applicationnotification of an employer, or upon 10.20 the commissioner's own motion if the employer fails to provide 10.21 the required notification, shall determine if an employer is a 10.22 successor within the meaning of this subdivision and shall send10.23 the determination to the employer by mail or electronic10.24 transmission. The determination shall be final unless a protest10.25 is filed by the employer within 30 calendar days after sending10.26 the determination. Upon receipt of a protest, the commissioner10.27 shall review all available evidence and determine whether an10.28 error has been made. The commissioner shall either affirm or10.29 make a redetermination on whether the employer is a successor10.30 within the meaning of this subdivision and send the employer, by10.31 mail or electronic transmission, the affirmation or10.32 redetermination. The affirmation or redetermination shall be10.33 final unless an appeal is filed by the employer within 3010.34 calendar days after the sending of the affirmation or10.35 redetermination. Proceedings on the appeal shall be conducted10.36 in accordance with section 218.104.22.168 (g)The commissioner may, as the result of any11.2 determination or decision regardingshall, after determining the 11.3 issue of succession or nonsuccession, recompute the tax 11.4 rate under subdivision 6 of all employers affected by the11.5 determination or decision for any year, including the year of11.6 the acquisition and subsequent years, that is affected by the11.7 transfer or nontransfer of part or all of the experience11.8 rating. This paragraph does not apply to rates that have become11.9 final before the filing of an application for the transfer of a11.10 severable portion of the experience rating under paragraph (b). 11.11 The commissioner shall send the recomputed tax rate to all 11.12 affected employers by mail or electronic transmission. Any 11.13 affected employer may protest the recomputed tax rate in 11.14 accordance with the procedures in subdivision 6, paragraph (c). 11.15 (h) Should an employer not have been in operation long11.16 enough to qualify for an experience rating under subdivision 3,11.17 paragraph (a),The "experience rating history" for purposes of 11.18 this subdivision shall consist ofand subdivision 4a means those 11.19 factors set out in subdivision 3, paragraph (b), that normally11.20 make up an experience rating , without the 12-month minimum. 11.21 For purposes of this chapter, an "acquisition" means 11.22 anything that results in the obtaining by the successor 11.23 employer, in any way or manner, of the organization, trade or 11.24 business, or workforce of the predecessor employer. 11.25 A "distinct severable portion" in paragraph (b) means a 11.26 location or unit separately identifiable within the employer's 11.27 wage detail report under section 268.044. 11.28 (i) If the commissioner finds that a transaction was done,11.29 in whole or in part, to avoid an experience rating or the11.30 transfer of an experience rating, the commissioner may transfer11.31 all or part of the experience rating regardless of the11.32 requirements or limitations of paragraphs (a) and (b). This11.33 shall include the transferring of employees from the payroll of11.34 an employer with a higher experience rating to the payroll of an11.35 employer with a lower experience rating.11.36 (j)Regardless of the ownership, management, or control 12.1 requirements of paragraph (a), if there is an acquisition or 12.2 merger of a publicly held corporation by or with another 12.3 publicly held corporation the experience ratingsrating 12.4 histories of the corporations shall be combined as of the date 12.5 of acquisition or merger for the purpose of computing12.6 recomputing a tax rate. 12.7 Sec. 8. Minnesota Statutes 2004, section 268.051, is 12.8 amended by adding a subdivision to read: 12.9 Subd. 4a. [ACTIONS THAT AVOID TAXES.] (a) If the 12.10 commissioner determines that any action was done, in whole or in 12.11 part, to avoid: 12.12 (1) an experience rating history; 12.13 (2) the transfer of an experience rating history; or 12.14 (3) the assignment of a tax rate for new employers under 12.15 subdivision 5, paragraph (a) or (b), the commissioner, to insure 12.16 that the trust fund receives all the taxes that would have been 12.17 received had the action not occurred, may, effective the date of 12.18 the action, transfer all or part of an experience rating history 12.19 and recompute the tax rate, or assign the appropriate new 12.20 employer tax rate. 12.21 (b) This subdivision shall apply to any action between 12.22 persons regardless of whether there is any commonality of 12.23 ownership, management, or control between the persons. The 12.24 authority granted to the commissioner under this subdivision is 12.25 in addition to any other authority granted to the commissioner. 12.26 Sec. 9. Minnesota Statutes 2004, section 268.051, 12.27 subdivision 6, is amended to read: 12.28 Subd. 6. [NOTICE OF TAX RATE.] (a) On or before each 12.29 December 15, the commissioner shall notify each employer by mail 12.30 or electronic transmission of the employer's tax rate, along 12.31 with any additional assessments, fees, or surcharges, for the 12.32 following calendar year. The notice shall contain the base tax 12.33 rate and the factors used in determining the employer's 12.34 experience rating. Unless a protest of the tax rate is made, 12.35 the computed tax rate shall be final, except for fraud or 12.36 recomputation required under subdivision 4 or 4a, and shall be 13.1 the rate at which taxes shall be paid. A recomputed tax rate 13.2 under subdivision 4 or 4a shall be the rate applicable for the 13.3 quarter that includes the date of acquisition and any quarter 13.4 thereafter during the calendar year in which the acquisition 13.5 occurred. The tax rate shall not be subject to collateral 13.6 attack by way of claim for a credit adjustment or refund, or 13.7 otherwise. 13.8 (b) If the legislature, subsequent to the sending of the 13.9 tax rate, changes any of the factors used to determine the rate ,13.10 the earlier notice shall be void. A new tax rate based on the 13.11 new factors shall be computed and sent to the employer. 13.12 (c) A review of an employer's tax rate may be obtained by 13.13 the employer filing a protest within 30 calendar days from the 13.14 date the tax rate notice was sent to the employer. Upon receipt 13.15 of the protest, the commissioner shall review the tax rate to 13.16 determine whether or not there has been any error in computation 13.17 or assignment of the tax rate. The commissioner shall either 13.18 affirm or make a redetermination of the rate and a notice of the 13.19 affirmation or redetermination shall be sent to the employer by 13.20 mail or electronic transmission. The affirmation or 13.21 redetermination shall be final unless the employer files an 13.22 appeal within 30 calendar days after the date the affirmation or 13.23 redetermination was sent. Proceedings on the appeal shall be 13.24 conducted in accordance with section 268.105. 13.25 (d) The commissioner may at any time upon the 13.26 commissioner's own motion correct any error in the computation 13.27 or the assignment of an employer's tax rate. 13.28 Sec. 10. Minnesota Statutes 2004, section 268.065, 13.29 subdivision 2, is amended to read: 13.30 Subd. 2. [EMPLOYEE LEASING FIRMSCOMPANY, PROFESSIONAL 13.31 EMPLOYER ORGANIZATION, OR SIMILAR PERSON.] (a) A person whose 13.32 work force consists of 50 percent or more of workers provided13.33 originally recruited and hired by employee leasing firms13.34 company, professional employer organization, or similar person 13.35 and then provided to the person for a fee, is jointly and 13.36 severally liable for the unpaid amounts that are due under this 14.1 chapter or section 116L.20 on the wages paid on the contract 14.2 with the employee leasing firmcompany, professional employer 14.3 organization, or similar person. "Employee leasing firm" means14.4 an employer that provides its employees to other persons without14.5 severing its employer-employee relationship with the worker for14.6 the services performed for the lessee.14.7 (b) This subdivision applies to, but is not limited to, 14.8 persons registered under section 79.255, but does not apply to 14.9 agreements with persons that obtain an exemption from 14.10 registration under section 79.255, subdivision 9. 14.11 Sec. 11. Minnesota Statutes 2004, section 268.184, 14.12 subdivision 1, is amended to read: 14.13 Subdivision 1. [ADMINISTRATIVE PENALTIES.] (a) If the 14.14 commissioner finds that any employer or any employee, officer, 14.15 or agent of any employer, is in collusion with any applicant for 14.16 the purpose of assisting the applicant to receive unemployment 14.17 benefits fraudulently, the employer shall be penalized $500 or 14.18 the amount of unemployment benefits determined to be overpaid, 14.19 whichever is greater. 14.20 (b) If the commissioner finds that any employer or any 14.21 employee, officer, or agent of an employer has made (1) a false 14.22 statement or representation knowing it to be false, including 14.23 reporting employees on a wage detail report under section 14.24 268.044 knowing the employees actually are employed by a 14.25 different employer, or (2) has made a false statement or 14.26 representation without a good faith belief as to correctness of 14.27 the statement or representation, or (3) who knowingly fails to 14.28 disclose a material fact, to prevent or reduce the payment of 14.29 unemployment benefits to any applicant or to reduce or avoid any 14.30 payment required from an employer under this chapter or section 14.31 116L.20, the employer shall be penalized $500, or 50 percent of 14.32 the reduced unemployment benefits or payment required, whichever 14.33 is greater. 14.34 (c) If the commissioner finds that an employer failed or 14.35 refused to honor a subpoena issued under section 268.105, 14.36 subdivision 4, or section 268.188, the employer shall be 15.1 penalized $500 and any costs of enforcing the subpoena, 15.2 including attorney fees. 15.3 (d) Penalties under this sectionsubdivision shall be in 15.4 addition to any other penalties and subject to the same 15.5 collection procedures that apply to past due taxes. Penalties 15.6 shall be paid to the department within 30 calendar days of 15.7 assessment and credited to the contingent account. 15.8 (e) The assessment of the penalty shall be final unless the 15.9 employer files an appeal within 30 calendar days after the 15.10 sending of notice of the penalty to the employer by mail or 15.11 electronic transmission. Proceedings on the appeal shall be 15.12 conducted in accordance with section 268.105. 15.13 Sec. 12. Minnesota Statutes 2004, section 268.184, is 15.14 amended by adding a subdivision to read: 15.15 Subd. 1a. [NOTIFICATION AND MISREPORTING PENALTIES.] (a) 15.16 If the commissioner finds that any employer or agent of an 15.17 employer failed to meet the notification requirements of section 15.18 268.051, subdivision 4, the employer shall be assessed a penalty 15.19 of $5,000 or two percent of the first full quarterly payroll 15.20 acquired, whichever is higher. Payroll is wages paid as defined 15.21 in section 268.035, subdivision 30. The penalty under this 15.22 paragraph shall be canceled if the commissioner determines that 15.23 the failure occurred because of ignorance or inadvertence. 15.24 (b) If the commissioner finds that any individual advised 15.25 an employer to violate the employer's notification requirements 15.26 under section 268.051, subdivision 4, the individual, and that 15.27 individual's employer, shall each be assessed the penalty in 15.28 paragraph (a). 15.29 (c) If the commissioner finds that any person or agent of a 15.30 person violated the reporting requirements of section 268.0435 15.31 or 268.046, the person shall be assessed a penalty of $5,000 or 15.32 two percent of the quarterly payroll reported in violation of 15.33 section 268.0435 or 268.046, whichever is higher. Payroll is 15.34 wages paid as defined in section 268.035, subdivision 30. 15.35 (d) Penalties under this subdivision shall be in addition 15.36 to any other penalties and subject to the same collection 16.1 procedures that apply to past due amounts from an employer. 16.2 Penalties must be paid within 30 calendar days after sending of 16.3 the notice of penalty. 16.4 (e) The assessment of a penalty shall be final unless the 16.5 person assessed files an appeal within 30 calendar days after 16.6 sending of the notice of the penalty by mail or electronic 16.7 transmission. Proceedings on the appeal shall be conducted in 16.8 accordance with section 268.105. 16.9 Sec. 13. Minnesota Statutes 2004, section 268.184, 16.10 subdivision 2, is amended to read: 16.11 Subd. 2. [CRIMINAL PENALTIES.] Any employer or any officer 16.12 or agent of an employer or any other individual who: 16.13 (1) makes a false statement or representation knowing it to 16.14 be false , or who; 16.15 (2) knowingly fails to disclose a material fact, including 16.16 notification required under section 268.051, subdivision 4; or 16.17 (3) knowingly advises or assists an employer in violating 16.18 clause (1) or (2), to avoid or reduce any payment required from 16.19 an employer under this chapter or section 116L.20, or to prevent 16.20 or reduce the payment of unemployment benefits to any applicant, 16.21 is guilty of a gross misdemeanor unless the underpayment exceeds 16.22 $500, in that case the individual is guilty of a felony. 16.23 [EFFECTIVE DATE.] This section is effective August 1, 2005, 16.24 and applies to crimes committed on or after that date. 16.25 Sec. 14. [MANDATORY FEDERAL IMPLEMENTATION REQUIREMENT.] 16.26 The commissioner must implement systems and processes to 16.27 detect, investigate, and enforce section 268.051, subdivisions 4 16.28 and 4a. 16.29 Sec. 15. [RELATION TO FEDERAL LAW.] 16.30 This article is enacted to meet the requirements of the 16.31 Federal SUTA Dumping Prevention Act of 2004, Public Law 108-295, 16.32 amending United States Code, title 42, section 503, and shall be 16.33 construed, interpreted, and applied consistent with the 16.34 requirements of that federal law, including its definitions. 16.35 Sec. 16. [REPEALER.] 16.36 (a) Minnesota Rules, parts 3315.1020, 3315.3210, and 17.1 3315.3220, are repealed. 17.2 (b) Minnesota Statutes 2004, section 268.045, subdivisions 17.3 2, 3, and 4, are repealed. 17.4 Sec. 17. [EFFECTIVE DATE.] 17.5 Except for the sections that include a separate effective 17.6 date, this article is effective July 1, 2005. 17.7 ARTICLE 2 17.8 HOUSEKEEPING PROVISIONS 17.9 Section 1. Minnesota Statutes 2004, section 268.03, 17.10 subdivision 1, is amended to read: 17.11 Subdivision 1. [STATEMENT.] The public purpose of sections17.12 268.029 to 268.23this chapter is: Economic insecurity due to 17.13 involuntary unemployment of workers in Minnesota is a subject of 17.14 general concern that requires appropriate action by the 17.15 legislature. The public good will be promoted by providing 17.16 workers who are unemployed through no fault of their own a 17.17 temporary partial wage replacement to assist the unemployed 17.18 worker to become reemployed. This program will be known as the 17.19 "Minnesota unemployment insurance program." 17.20 Sec. 2. Minnesota Statutes 2004, section 268.035, 17.21 subdivision 9, is amended to read: 17.22 Subd. 9. [CONSTRUCTION/INDEPENDENT CONTRACTOR.] A worker 17.23 doing commercial or residential building construction or 17.24 improvement, in the public or private sector, performing 17.25 services in the course of the trade, business, profession, or 17.26 occupation of the employer, shall be considered an employee and 17.27 not an "independent contractor" unless the worker meets all the 17.28 following conditions: 17.29 (1) maintains a separate business with the independent 17.30 contractor's own office, equipment, materials, and other 17.31 facilities; 17.32 (2) holds or has applied for a federal employer 17.33 identification number or has filed business or self-employment 17.34 income tax returns with the federal Internal Revenue Service 17.35 based on that work or service in the previous year; 17.36 (3) operates under contracts to perform specific services 18.1 or work for specific amounts of money under which the 18.2 independent contractor controls the means of performing the 18.3 services or work; 18.4 (4) incurs the main expenses related to the service or work 18.5 that the independent contractor performs under contract; 18.6 (5) is responsible for the satisfactory completion of work 18.7 or services that the independent contractor contracts to perform 18.8 and is liable for a failure to complete the work or service; 18.9 (6) receives compensation for work or service performed 18.10 under a contract on a commission or per job or competitive bid 18.11 basis and not on any other basis; 18.12 (7) may realize a profit or suffer a loss under contracts 18.13 to perform work or service; 18.14 (8) has continuing or recurring business liabilities or 18.15 obligations; and 18.16 (9) the success or failure of the independent contractor's 18.17 business depends on the relationship of business receipts to 18.18 expenditures. 18.19 Sec. 3. Minnesota Statutes 2004, section 268.035, 18.20 subdivision 13, is amended to read: 18.21 Subd. 13. [EMPLOYEE.] "Employee" means: 18.22 (1) every individual, who is performing, or has performed 18.23 services for an employer in employment; or 18.24 (2) each individual employed to perform or assist in 18.25 performing the work of any agent or employee of the employer 18.26 shall be considered to be an employee of that employer whether 18.27 the individual was hired or paid directly by that employer or by 18.28 the agent or employee, provided the employer had actual or 18.29 constructive knowledge of the work. 18.30 Sec. 4. Minnesota Statutes 2004, section 268.035, 18.31 subdivision 14, is amended to read: 18.32 Subd. 14. [EMPLOYER.] "Employer" means any of the18.33 followingperson which has had one or more employees during the 18.34 current or the prior calendar year :18.35 (1) any individual or type of organization, resident or18.36 nonresident, for profit or nonprofit, religious, charitable, or19.1 educational, including any partnership, limited liability19.2 company, trust, estate, or corporation, domestic or foreign, or19.3 the receiver, trustee in bankruptcy, trustee or successor of any19.4 of the foregoing, or the legal representative of a deceased19.5 person;19.6 (2) any government entity, state or federal, foreign or19.7 domestic, Indian tribe, including any subdivision thereof and19.8 any instrumentality thereof owned wholly or in part;19.9 (3)including any organization orperson that has elected, 19.10 under section 268.042, to be subject to the Minnesota 19.11 Unemployment Insurance Law ;and 19.12 (4)a joint venture composed of one or more employers ;. 19.13 (5) any nonprofit organization or government agency19.14 providing or authorizing the hiring of homeworkers, personal19.15 care attendants, or other individuals performing similar19.16 services in a private home is the employer of the homeworker,19.17 attendant, or similar worker whether the organization or agency19.18 pays the employee directly or provides funds to the recipient of19.19 the services to pay for the services. This clause does not19.20 apply to the state of Minnesota or any county that provides19.21 federal, state, or local funds to a child care provider either19.22 directly or indirectly through a parent who is a child care19.23 assistance recipient; or19.24 (6) each individual employed to perform or assist in19.25 performing the work of any agent or employee shall be considered19.26 to be employed by that employer whether the individual was hired19.27 or paid directly by that employer or by the agent or employee,19.28 provided the employer had actual or constructive knowledge of19.29 the work.19.30 An employee leasing company, professional employer 19.31 organization, or similar person, that has been assigned a tax or 19.32 reimbursable account under section 268.046 is an employer for 19.33 purposes of this chapter. 19.34 Sec. 5. Minnesota Statutes 2004, section 268.035, 19.35 subdivision 20, is amended to read: 19.36 Subd. 20. [NONCOVERED EMPLOYMENT.] "Noncovered employment" 20.1 means: 20.2 (1) employment for the United States government or an 20.3 instrumentality thereof, including military service; 20.4 (2) employment for a state, other than Minnesota, or a 20.5 political subdivision or instrumentality thereof; 20.6 (3) employment for a foreign government; 20.7 (4) employment for an instrumentality wholly owned by a 20.8 foreign government, if the employment is of a character similar 20.9 to that performed in foreign countries by employees of the 20.10 United States government or an instrumentality thereof and the 20.11 United States Secretary of State has certified that the foreign 20.12 government grants an equivalent exemption to similar employment 20.13 performed in the foreign country by employees of the United 20.14 States government and instrumentalities thereof; 20.15 (5) employment covered under United States Code, title 45, 20.16 section 351, the Railroad Unemployment Insurance Act; 20.17 (6) employment covered by a reciprocal arrangement between 20.18 the commissioner and another state or the federal government 20.19 which provides that all employment performed by an individual 20.20 for an employer during the period covered by the reciprocal 20.21 arrangement is considered performed entirely within another 20.22 state; 20.23 (7) employment for a church or convention or association of 20.24 churches, or an organization operated primarily for religious 20.25 purposes that is operated, supervised, controlled, or 20.26 principally supported by a church or convention or association 20.27 of churches described in United States Code, title 26, section 20.28 501(c)(3) of the federal Internal Revenue Code and exempt from 20.29 income tax under section 501(a); 20.30 (8) employment of a duly ordained or licensed minister of a 20.31 church in the exercise of a ministry or by a member of a 20.32 religious order in the exercise of duties required by the order, 20.33 for Minnesota or a political subdivision or an organization 20.34 described in United States Code, title 26, section 501(c)(3) of 20.35 the federal Internal Revenue Code and exempt from income tax 20.36 under section 501(a); 21.1 (9) employment of an individual receiving rehabilitation of 21.2 "sheltered" work in a facility conducted for the purpose of 21.3 carrying out a program of rehabilitation for individuals whose 21.4 earning capacity is impaired by age or physical or mental 21.5 deficiency or injury or a program providing "sheltered" work for 21.6 individuals who because of an impaired physical or mental 21.7 capacity cannot be readily absorbed in the competitive labor 21.8 market. This clause applies only to services performed for 21.9 Minnesota or a political subdivision or an organization 21.10 described in United States Code, title 26, section 501(c)(3) of 21.11 the federal Internal Revenue Code and exempt from income tax 21.12 under section 501(a) in a facility certified by the 21.13 Rehabilitation Services Branch of the department or in a day 21.14 training or habilitation program licensed by the Department of 21.15 Human Services; 21.16 (10) employment of an individual receiving work relief or 21.17 work training as part of an unemployment work relief or work 21.18 training program assisted or financed in whole or in part by any 21.19 federal agency or an agency of a state or political subdivision 21.20 thereof. This clause applies only to employment for Minnesota 21.21 or a political subdivision or an organization described in 21.22 United States Code, title 26, section 501(c)(3) of the federal 21.23 Internal Revenue Code and exempt from income tax under section 21.24 501(a). This clause shall not apply to programs that require 21.25 unemployment benefit coverage for the participants; 21.26 (11) employment for Minnesota or a political subdivision as 21.27 an elected official, a member of a legislative body, or a member 21.28 of the judiciary; 21.29 (12) employment as a member of the Minnesota National Guard 21.30 or Air National Guard; 21.31 (13) employment for Minnesota, a political subdivision, or 21.32 instrumentality thereof, as an employee serving only on a 21.33 temporary basis in case of fire, flood, tornado, or similar 21.34 emergency; 21.35 (14) employment as an election official or election worker 21.36 for Minnesota or a political subdivision, but only if the 22.1 compensation for that employment was less than $1,000 in a 22.2 calendar year; 22.3 (15) employment for Minnesota that is a major policy making 22.4 or advisory position in the unclassified service, including 22.5 those positions established pursuant to section 43A.08, 22.6 subdivision 1a; 22.7 (16) employment for a political subdivision of Minnesota 22.8 that is a nontenured major policy making or advisory position; 22.9 (17) domestic employment in a private household, local 22.10 college club, or local chapter of a college fraternity or 22.11 sorority performed for a person, only if the wages paid in any 22.12 calendar quarter in either the current or preceding calendar 22.13 year to all individuals in domestic employment totaled less than 22.14 $1,000. 22.15 "Domestic employment" includes all service in the operation 22.16 and maintenance of a private household, for a local college 22.17 club, or local chapter of a college fraternity or sorority as 22.18 distinguished from service as an employee in the pursuit of an 22.19 employer's trade or business; 22.20 (18) employment of an individual by a son, daughter, or 22.21 spouse, and employment of a child under the age of 18 by the 22.22 child's father or mother; 22.23 (19) employment of an inmate of a custodial or penal 22.24 institution; 22.25 (20) employment for a school, college, or university by a 22.26 student who is enrolled and is regularly attending classes at 22.27 the school, college, or university; 22.28 (21) employment of an individual who is enrolled as a 22.29 student in a full-time program at a nonprofit or public 22.30 educational institution that maintains a regular faculty and 22.31 curriculum and has a regularly organized body of students in 22.32 attendance at the place where its educational activities are 22.33 carried on, taken for credit at the institution, that combines 22.34 academic instruction with work experience, if the employment is 22.35 an integral part of the program, and the institution has so 22.36 certified to the employer, except that this clause shall not 23.1 apply to employment in a program established for or on behalf of 23.2 an employer or group of employers; 23.3 (22) employment of university, college, or professional 23.4 school students in an internship or other training program with 23.5 the city of St. Paul or the city of Minneapolis pursuant to Laws 23.6 1990, chapter 570, article 6, section 3; 23.7 (23) employment for a hospital by a patient of the 23.8 hospital. "Hospital" means an institution that has been 23.9 licensed by the Department of Health as a hospital; 23.10 (24) employment as a student nurse for a hospital or a 23.11 nurses' training school by an individual who is enrolled and is 23.12 regularly attending classes in an accredited nurses' training 23.13 school; 23.14 (25) employment as an intern for a hospital by an 23.15 individual who has completed a four-year course in an accredited 23.16 medical school; 23.17 (26) employment as an insurance salesperson, by other than 23.18 a corporate officer, if all the compensation forwages from the 23.19 employment is solely by way of commission. The word "insurance" 23.20 shall include an annuity and an optional annuity; 23.21 (27) employment as an officer of a township mutual 23.22 insurance company or farmer's mutual insurance company operating 23.23 pursuant to chapter 67A; 23.24 (28) employment of a corporate officer, if the officer owns 23.25 25 percent or more of the employer corporation, and employment 23.26 of a member of a limited liability company, if the member owns 23.27 25 percent or more of the employer limited liability company; 23.28 (29) employment as a real estate salesperson, by other than 23.29 a corporate officer, if all the compensation forwages from the 23.30 employment is solely by way of commission; 23.31 (30) employment as a direct seller as defined in United 23.32 States Code, title 26, section 3508; 23.33 (31) employment of an individual under the age of 18 in the 23.34 delivery or distribution of newspapers or shopping news, not 23.35 including delivery or distribution to any point for subsequent 23.36 delivery or distribution; 24.1 (32) casual employment performed for an individual, other 24.2 than domestic employment under clause (17), that does not 24.3 promote or advance that employer's trade or business; 24.4 (33) employment in "agricultural employment" unless 24.5 considered "covered agricultural employment" under subdivision 24.6 11; or 24.7 (34) if employment during one-half or more of any pay 24.8 period was covered employment, all the employment for the pay 24.9 period shall be considered covered employment; but if during 24.10 more than one-half of any pay period the employment was 24.11 noncovered employment, then all of the employment for the pay 24.12 period shall be considered noncovered employment. "Pay period" 24.13 means a period of not more than a calendar month for which a 24.14 payment or compensation is ordinarily made to the employee by 24.15 the employer. 24.16 Sec. 6. Minnesota Statutes 2004, section 268.035, 24.17 subdivision 21, is amended to read: 24.18 Subd. 21. [PERSON.] "Person" means: 24.19 (1) an individual, trust or estate, a partnership or a24.20 corporationor any type of organization or entity, resident or 24.21 nonresident, for profit or nonprofit, religious, charitable or 24.22 educational, including any receiver or trustee in a bankruptcy, 24.23 successor of any of the foregoing, or legal representative of a 24.24 deceased individual; and 24.25 (2) any government entity, state or federal, foreign or 24.26 domestic, or Indian tribe, including any subdivision or 24.27 instrumentality thereof owned wholly or in part. 24.28 Sec. 7. Minnesota Statutes 2004, section 268.035, 24.29 subdivision 26, is amended to read: 24.30 Subd. 26. [UNEMPLOYED.] An applicant shall be considered 24.31 "unemployed" :(1) in any week that the applicant performs no24.32 service in employment, covered employment, noncovered24.33 employment, self-employment, or volunteer work, and with respect24.34 to which the applicant has no earnings; or (2) in any week of24.35 less than 32 hours of service in employment, covered employment, 24.36 noncovered employment, self-employment, or volunteer work if the25.1 ; and (2) any earnings with respect to that week are less than 25.2 the applicant's weekly unemployment benefit amount. 25.3 Sec. 8. Minnesota Statutes 2004, section 268.042, 25.4 subdivision 1, is amended to read: 25.5 Subdivision 1. [EMPLOYER REGISTRATION.] (a) Each employer 25.6 shall, upon or before the submission of its first wage detail 25.7 report under section 268.044, register with the commissioner for 25.8 a tax account or a reimbursable account, by electronic 25.9 transmission in a format prescribed by the commissioner. The 25.10 employer must provide all required information for registration. 25.11 (b) Except as provided in subdivision 3, any organization25.12 orperson that is or becomes an employer subject to the 25.13 Minnesota Unemployment Insurance Law within any calendar year 25.14 shall be considered to be subject to this chapter the entire 25.15 calendar year. 25.16 (c) Upon the termination of business, an employer that has 25.17 been assigned a tax account or reimbursable account shall notify 25.18 the commissioner by electronic transmission, in a format 25.19 prescribed by the commissioner, that the employer no longer has 25.20 employees and does not intend or expect to pay wages to any 25.21 employees in the next calendar year and into the foreseeable 25.22 future. Upon such notification, the commissioner shall not 25.23 require the employer to file wage detail reports under section 25.24 268.044, subdivision 1, paragraph (d) , commencing the calendar25.25 quarter after the notice of termination was received by the25.26 commissioner. 25.27 Sec. 9. Minnesota Statutes 2004, section 268.043, is 25.28 amended to read: 25.29 268.043 [DETERMINATIONS OF COVERAGE.] 25.30 (a) The commissioner, upon the commissioner's own motion or 25.31 upon application of an organization ora person, shall determine 25.32 if that organization or person is an employer or whether 25.33 services performed for it constitute employment and covered 25.34 employment, or whether the compensation for services constitutes 25.35 wages, and shall notify the organization orperson of the 25.36 determination. The determination shall be final unless the 26.1 organization or person, within 30 calendar days after sending of 26.2 the determination by mail or electronic transmission, files a 26.3 protest. Upon receipt of a protest, the commissioner shall 26.4 review all available evidence and determine whether an error has 26.5 been made. The commissioner shall send to the organization or26.6 person, by mail or electronic transmission, an affirmation or 26.7 redetermination. The affirmation or redetermination shall be 26.8 final unless, within 30 calendar days after sending of the 26.9 affirmation or redetermination to the organization orperson by 26.10 mail or electronic transmission, an appeal is filed. 26.11 Proceedings on the appeal shall be conducted in accordance with 26.12 section 268.105. 26.13 (b) No organization orperson shall be initially determined 26.14 an employer, or that services performed for it were in 26.15 employment or covered employment, for periods more than four 26.16 years prior to the year in which the determination is made, 26.17 unless the commissioner finds that there was fraudulent action 26.18 to avoid liability under this chapter. 26.19 Sec. 10. Minnesota Statutes 2004, section 268.044, 26.20 subdivision 2, is amended to read: 26.21 Subd. 2. [FAILURE TO TIMELY FILE REPORT; LATE FEES.] (a) 26.22 Any employer that fails to submit the quarterly wage detail 26.23 report when due shall pay a late fee of $10 per employee, 26.24 computed based upon the highest of: 26.25 (1) the number of employees reported on the last wage 26.26 detail report submitted; 26.27 (2) the number of employees reported in the corresponding 26.28 quarter of the prior calendar year; or 26.29 (3) if no wage detail report has ever been submitted, the 26.30 number of employees listed at the time of employer registration. 26.31 The late fee shall be waived if the wage detail report is 26.32 received within 30 calendar days after a demand for the report 26.33 is sent to the employer by mail or electronic transmission. A 26.34 late fee assessed an employer may not be waived more than once26.35 twice each 12 months. The amount of the late fee assessed shall 26.36 not be less than $50$250. 27.1 (b) If the wage detail report is not received in a manner 27.2 and format prescribed by the commissioner within 30 calendar 27.3 days after demand is sent under paragraph (a), the late fee 27.4 assessed under paragraph (a) shall double and a renewed demand 27.5 notice and notice of the increased late fee shall be sent to the 27.6 employer by mail or electronic transmission. 27.7 (c) Late fees due under this subdivision may be compromised 27.8 under section 268.067 where good cause for late submission is 27.9 found by the commissioner. 27.10 Sec. 11. Minnesota Statutes 2004, section 268.051, 27.11 subdivision 7, is amended to read: 27.12 Subd. 7. [TAX RATE BUYDOWN.] (a) Any taxpaying employer 27.13 who has been assigned a tax rate based upon an experience 27.14 rating, and has no amounts past due under this chapter, may, 27.15 upon the voluntary payment of an amount equivalent to any 27.16 portion or all of the unemployment benefits used in computing 27.17 the experience rating plus a surcharge of 25 percent, obtain a 27.18 cancellation of unemployment benefits used equal to the payment 27.19 made, less the surcharge. Upon the payment, the commissioner 27.20 shall compute a new experience rating for the employer, and 27.21 compute a new tax rate. 27.22 (b) Voluntary payments may be made only by electronic 27.23 payment and must be received within 120 calendar days from the 27.24 beginning of the calendar year for which the tax rate is 27.25 effective. 27.26 Sec. 12. Minnesota Statutes 2004, section 268.052, 27.27 subdivision 2, is amended to read: 27.28 Subd. 2. [ELECTION BY STATE OR POLITICAL SUBDIVISION TO BE 27.29 A TAXPAYING EMPLOYER.] (a) The state or political 27.30 subdivision excluding a school districtmay elect to be a 27.31 taxpaying employer for any calendar year if a notice of election 27.32 is filed within 30 calendar days following January 1 of that 27.33 calendar year. Upon election, the state or political 27.34 subdivision shall be assigned the new employer tax rate under 27.35 section 268.051, subdivision 5, for the calendar year of the 27.36 election and until it qualifies for an experience rating under 28.1 section 268.051, subdivision 3. 28.2 (b) An election shall be for a minimum period of two 28.3 calendar years following the effective date of the election and 28.4 continue unless a notice terminating the election is filed not 28.5 later than 30 calendar days before the beginning of the calendar 28.6 year. The termination shall be effective at the beginning of 28.7 the next calendar year. Upon election, the commissioner shall 28.8 establish a reimbursable account for the state or political 28.9 subdivision. A termination of election shall be allowed only if 28.10 the state or political subdivision has, since the beginning of 28.11 the experience rating period under section 268.051, subdivision 28.12 3, paid taxes and made voluntary payments under section 268.051, 28.13 subdivision 7, equal to or more than 125 percent of the 28.14 unemployment benefits used in computing the experience rating. 28.15 In addition, any unemployment benefits paid after the experience 28.16 rating period shall be transferred to the new reimbursable 28.17 account of the state or political subdivision. If the amount of 28.18 taxes and voluntary payments paid since the beginning of the 28.19 experience rating period exceeds 125 percent of the amount of 28.20 unemployment benefits paid during the experience rating period, 28.21 that amount in excess shall be applied against any unemployment 28.22 benefits paid after the experience rating period. 28.23 (c) The method of payments to the trust fund under 28.24 subdivisions 3 and 4 shall apply to all taxes paid by or due 28.25 from the state or political subdivision that elects to be 28.26 taxpaying employers under this subdivision. 28.27 (d) A notice of election or a notice terminating election 28.28 shall be filed by electronic transmission in a format prescribed 28.29 by the commissioner. 28.30 Sec. 13. Minnesota Statutes 2004, section 268.053, 28.31 subdivision 1, is amended to read: 28.32 Subdivision 1. [ELECTION.] (a) Any nonprofit organization 28.33 that has employees in covered employment shall pay taxes on a 28.34 quarterly basis pursuant to section 268.051 unless it elects to 28.35 make reimbursements to the trust fund the amount of unemployment 28.36 benefits charged to its reimbursable account under section 29.1 268.047. 29.2 The organization may elect to make reimbursements for a 29.3 period of not less than two calendar years beginning with the 29.4 date that the organization was determined to be an employer with 29.5 covered employment by filing a notice of election not later than 29.6 30 calendar days after the date of the determination. 29.7 (b) Any nonprofit organization that makes an election will 29.8 continue to be liable for reimbursements until it files a notice 29.9 terminating its election not later than 30 calendar days before 29.10 the beginning of the calendar year the termination is to be 29.11 effective. 29.12 (c) A nonprofit organization that has been making 29.13 reimbursements that files a notice of termination of election 29.14 shall be assigned the new employer tax rate under section 29.15 268.051, subdivision 5, for the calendar year of the termination 29.16 of election and until it qualifies for an experience rating 29.17 under section 268.051, subdivision 3. 29.18 (d) Any nonprofit organization that has been paying taxes 29.19 may elect to make reimbursements by filing no less than 30 29.20 calendar days before January 1 of any calendar year a notice of 29.21 election. Upon election, the commissioner shall establish a 29.22 reimbursable account for the nonprofit organization. An 29.23 election shall be allowed only if the nonprofit organization 29.24 has, since the beginning of the experience rating period under 29.25 section 268.051, subdivision 3, paid taxes and made voluntary29.26 payments under section 268.051, subdivision 7,equal to or more 29.27 than 125 percent of the unemployment benefits used in computing 29.28 the experience rating. In addition, any unemployment benefits 29.29 paid after the experience rating period shall be transferred to 29.30 the new reimbursable account of the nonprofit organization. If 29.31 the amount of taxes and voluntary paymentspaid since the 29.32 beginning of the experience rating period exceeds 125 percent of 29.33 the amount of unemployment benefits paid during the experience 29.34 rating period, that amount in excess shall be applied against 29.35 any unemployment benefits paid after the experience rating 29.36 period. The election shall not be terminable by the 30.1 organization for that and the next calendar year. 30.2 (e) The commissioner may for good cause extend the period 30.3 that a notice of election, or a notice of termination, must be 30.4 filed and may permit an election to be retroactive. 30.5 (f) A notice of election or notice terminating election 30.6 shall be filed by electronic transmission in a format prescribed 30.7 by the commissioner. 30.8 Sec. 14. Minnesota Statutes 2004, section 268.057, 30.9 subdivision 7, is amended to read: 30.10 Subd. 7. [CREDIT ADJUSTMENTS, REFUNDS.] (a) If an employer 30.11 makes an application for a credit adjustment of any amount paid 30.12 under this chapter or section 116L.20 within four years of 30.13 the yeardate that the payment was madedue, in a manner and 30.14 format prescribed by the commissioner, and the commissioner 30.15 determines that the payment or any portion was erroneous, the 30.16 commissioner shall make an adjustment and issue a credit without 30.17 interest. If a credit cannot be used, the commissioner shall 30.18 refund, without interest, the amount erroneously paid. The 30.19 commissioner, on the commissioner's own motion, may make a 30.20 credit adjustment or refund under this subdivision. 30.21 Any refund returned to the commissioner shall be considered 30.22 unclaimed property under chapter 345. 30.23 (b) If a credit adjustment or refund is denied in whole or 30.24 in part, a notice of denial shall be sent to the employer by 30.25 mail or electronic transmission. Within 30 calendar days after 30.26 sending of the notice of denial, the employer may protest. 30.27 Upon receipt of a timely protest, the commissioner shall 30.28 review the denial and either affirm the denial or redetermine 30.29 the credit adjustment or refund. The affirmation of denial or 30.30 redetermination of the credit adjustment or refund, sent by mail 30.31 or electronic transmission, shall be final unless an employer 30.32 files an appeal within 30 calendar days after sending. 30.33 Proceedings on the appeal shall be conducted in accordance with 30.34 section 268.105. 30.35 Sec. 15. Minnesota Statutes 2004, section 268.069, 30.36 subdivision 1, is amended to read: 31.1 Subdivision 1. [REQUIREMENTS.] The commissioner shall pay 31.2 unemployment benefits from the trust fund to an applicant who 31.3 has met each of the following requirements: 31.4 (1) the applicant has filed an application for unemployment 31.5 benefits and established a benefit account in accordance with 31.6 section 268.07; 31.7 (2) the applicant is not subject to a disqualification from 31.8 unemployment benefits under section 268.095 because of a quit or 31.9 discharge; 31.10 (3) the applicant has met all of the ongoing weekly31.11 eligibility requirements under sections 268.085 and 268.086; 31.12 (4) the applicant does not have an outstanding overpayment 31.13 of unemployment benefits, including any penalties or interest ,31.14 under section 268.18; and 31.15 (5) the applicant is not subject to a denial ofineligible 31.16 for unemployment benefits under section 268.182 because of a 31.17 false representation or concealment of facts. 31.18 Sec. 16. Minnesota Statutes 2004, section 268.07, 31.19 subdivision 3b, is amended to read: 31.20 Subd. 3b. [LIMITATIONS.] (a) A benefit account shall be 31.21 established effective the Sunday of the calendar week that the 31.22 application for unemployment benefits was filed. Upon specific 31.23 request of an applicant, an application for unemployment 31.24 benefits may be backdated one calendar week prior to the Sunday 31.25 of the week the application was actually filed. An application 31.26 shall be backdated only if the applicant was unemployed 31.27 throughout the period of the backdating. If an individual 31.28 attempted to file an application for unemployment benefits, but 31.29 was prevented from filing an application by the department, the 31.30 benefit account shall be effective the Sunday of the calendar 31.31 week the individual first attempted to file an application. 31.32 (b) A benefit account, once established, may later be 31.33 withdrawn only if: 31.34 (1) a new application for unemployment benefits is filed 31.35 and a new benefit account is established at the time of the 31.36 withdrawal; and 32.1 (2) the applicant has not served a waiting week under 32.2 section 268.085, subdivision 1, clause (3)(5). 32.3 A determination or amended determination pursuant to 32.4 section 268.101, that was issued before the withdrawal of the 32.5 benefit account, shall remain in effect and shall not be voided 32.6 by the withdrawal of the benefit account. A determination of 32.7 disqualification requiring subsequent earnings to satisfy the 32.8 disqualification under section 268.095, subdivision 10, shall 32.9 apply to the weekly unemployment benefit amount on the new 32.10 benefit account. 32.11 (c) An application for unemployment benefits shall not be 32.12 allowed prior to the Sunday following the expiration of the 32.13 benefit year on a prior benefit account. Except as allowed 32.14 under paragraph (b), a applicant may establish only one benefit 32.15 account each 52 calendar weeks. 32.16 (d) All unemployment benefits shall be available from the32.17 trust fund only for weeks occurring during the applicant's32.18 benefit year.32.19 Sec. 17. Minnesota Statutes 2004, section 268.085, 32.20 subdivision 1, is amended to read: 32.21 Subdivision 1. [ELIGIBILITY CONDITIONS.] An applicant 32.22 shall be eligible to receive unemployment benefits for any week 32.23 if: 32.24 (1) the applicant has an active benefit account and has 32.25 filed a continued biweekly request for unemployment benefits for 32.26 that week pursuant to section 268.086; 32.27 (2) the week for which unemployment benefits are requested 32.28 is in the applicant's benefit year; 32.29 (3) the applicant was unemployed as defined in section 32.30 268.035, subdivision 26; 32.31 (2)(4) the applicant was able to work and was available 32.32 for suitable employment, and was actively seeking suitable 32.33 employment. The applicant's weekly unemployment benefit amount 32.34 shall be reduced one-fifth for each day the applicant is unable 32.35 to work or is unavailable for suitable employment. If the 32.36 computation of the reduced unemployment benefits is not a whole 33.1 dollar, it shall be rounded down to the next lower whole dollar. 33.2 This clause shall not apply to an applicant who is in 33.3 reemployment assistance training, or each day the applicant is 33.4 on jury duty or serving as an election judge; 33.5 (3)(5) the applicant has served a waiting period of one 33.6 week that the applicant is otherwise entitled to some amount of 33.7 unemployment benefits. This clause shall not apply if the 33.8 applicant would have been entitled to federal disaster 33.9 unemployment assistance because of a disaster in Minnesota, but 33.10 for the applicant's establishment of a benefit account under 33.11 section 268.07; and 33.12 (4)(6) the applicant has been participating in 33.13 reemployment assistance services, such as job search and resume 33.14 writing classes, if the applicant has been determined in need of 33.15 reemployment assistance services by the commissioner, unless 33.16 there is good cause for the applicant's failure to participate. 33.17 Sec. 18. Minnesota Statutes 2004, section 268.085, 33.18 subdivision 2, is amended to read: 33.19 Subd. 2. [NOT ELIGIBLE.] An applicant shall not be 33.20 eligible to receive unemployment benefits for any week: 33.21 (1) that occurs before the effective date of a benefit 33.22 account; 33.23 (2) that occurs in a period when the applicant is a student 33.24 in attendance at, or on vacation from a secondary school 33.25 including the period between academic years or terms; 33.26 (3) that the applicant is incarcerated or performing court 33.27 ordered community service. The applicant's weekly unemployment 33.28 benefit amount shall be reduced by one-fifth for each day the 33.29 applicant is incarcerated or performing court ordered community 33.30 service. If the computation of the reduced unemployment 33.31 benefits is not a whole dollar, it shall be rounded down to the 33.32 next lower whole dollar; 33.33 (4) that the applicant fails or refuses to provide 33.34 information on an issue of eligibility required under section 33.35 268.101, subdivision 1, paragraph (a), or an issue of 33.36 disqualification required under section 268.101, subdivision 1, 34.1 paragraph (d); 34.2 (5) that the applicant is performing services 32 hours or 34.3 more, in employment, covered employment, noncovered employment, 34.4 volunteer work, or self-employment regardless of the amount of 34.5 any earnings; or 34.6 (6) with respect to which the applicant is receiving, has 34.7 received, or has filed an application for unemployment benefits 34.8 under any federal law or the law of any other state. If the 34.9 appropriate agency finally determines that the applicant is not 34.10 entitled to the unemployment benefits, this clause shall not 34.11 apply. 34.12 Sec. 19. Minnesota Statutes 2004, section 268.085, 34.13 subdivision 3, is amended to read: 34.14 Subd. 3. [PAYMENTS THAT DELAY UNEMPLOYMENT BENEFITS.] (a) 34.15 An applicant shall not be eligible to receive unemployment 34.16 benefits for any week with respect to which the applicant is 34.17 receiving, has received, or has filed for payment, equal to or 34.18 in excess of the applicant's weekly unemployment benefit amount, 34.19 in the form of: 34.20 (1) vacation pay paid upon temporary, indefinite, or 34.21 seasonal separation. This clause shall not apply to vacation 34.22 pay paid upon a permanent separation from employment; 34.23 (2) severance pay, bonus pay, vacation pay,sick pay, and 34.24 any other money payments, except earnings under subdivision 5, 34.25 and back pay under subdivision 6, paid by an employer because 34.26 of, upon, or after separation from employment, but only if the 34.27 money payment is considered wages at the time of payment under 34.28 section 268.035, subdivision 29, or United States Code, title 34.29 26, section 3121, clause (2), of the Federal Insurance 34.30 Contribution Act . This clause shall apply to all the weeks of34.31 payment and shall be applied to the period immediately following34.32 the last day of employment. The number of weeks of payment34.33 shall be determined as follows:; 34.34 (i) if the payments are made periodically, the total of the34.35 payments to be received shall be divided by the applicant's last34.36 level of regular weekly pay from the employer; or35.1 (ii) if the payment is made in a lump sum, that sum shall35.2 be divided by the applicant's last level of regular weekly pay35.3 from the employer. This clause shall not apply to vacation pay35.4 paid by an employer upon permanent separation from employment;35.5 (2)(3) pension, retirement, or annuity payments from any 35.6 plan contributed to by a base period employer including the 35.7 United States government, except Social Security benefits which 35.8 are provided for in subdivision 4. The base period employer 35.9 contributed to the plan if the contribution is excluded from the 35.10 definition of wages under section 268.035, subdivision 29, 35.11 clause (1), or United States Code, title 26, section 3121, 35.12 clause (2), of the Federal Insurance Contribution Act. 35.13 If the applicant receives a lump sum pension payment, that35.14 sum shall be divided by the applicant's last level of regular35.15 weekly pay to determine the number of weeks of payment. The35.16 number of weeks of payment shall be applied to the period35.17 immediately following the last day of employment.An applicant 35.18 shall not be considered to have received the lump sum payment if 35.19 the applicant immediately deposits that payment in a qualified 35.20 pension plan or account; or 35.21 (3)(4) holiday pay. 35.22 (b) This subdivision shall apply to all the weeks of 35.23 payment and shall be applied to the period immediately following 35.24 the last day of employment. The number of weeks of payment 35.25 shall be determined as follows: 35.26 (1) if the payments are made periodically, the total of the 35.27 payments to be received shall be divided by the applicant's last 35.28 level of regular weekly pay from the employer; or 35.29 (2) if the payment is made in a lump sum, that sum shall be 35.30 divided by the applicant's last level of regular weekly pay from 35.31 the employer. 35.32 (b)(c) If the payment is less than the applicant's weekly 35.33 unemployment benefit amount, unemployment benefits shall be 35.34 reduced by the amount of the payment. If the computation of 35.35 reduced unemployment benefits is not a whole dollar, it shall be 35.36 rounded down to the next lower whole dollar. 36.1 Sec. 20. Minnesota Statutes 2004, section 268.085, 36.2 subdivision 5, is amended to read: 36.3 Subd. 5. [DEDUCTIBLE EARNINGS.] (a) If the applicant has 36.4 earnings with respect to any week, from employment, covered 36.5 employment, noncovered employment, self-employment, or volunteer 36.6 work, equal to or in excess of the applicant's weekly 36.7 unemployment benefit amount, the applicant shall be ineligible 36.8 for unemployment benefits for that week. 36.9 (b) If the applicant has earnings, with respect to any 36.10 week, that is less than the applicant's weekly unemployment 36.11 benefit amount, from employment, covered employment, noncovered 36.12 employment, self-employment, or volunteer work, that amount over 36.13 the following shall be deducted from the weekly unemployment 36.14 benefit amount: 36.15 (1) 25 percent of earnings or $50, whichever is higher; and 36.16 (2) $200 for earnings from service in the National Guard or 36.17 a United States military reserve unit. 36.18 The resulting unemployment benefit, if not a whole dollar, 36.19 shall be rounded down to the next lower whole dollar. 36.20 (c) No deduction shall be made from an applicant's weekly 36.21 unemployment benefit amount for earnings from direct service as 36.22 a volunteer firefighter or volunteer ambulance service 36.23 personnel. This exception to paragraphs (a) and (b) does not 36.24 apply to on-call or standby pay provided to a volunteer 36.25 firefighter or volunteer ambulance service personnel. No 36.26 deduction shall be made for jury duty pay or for pay as an 36.27 election judge. 36.28 (d) The applicant may report deductible earnings on 36.29 continued biweekly requests for unemployment benefits at the 36.30 next lower whole dollar amount. 36.31 (e) Deductible earnings shall not include any money 36.32 considered a deductible payment under subdivision 3, but shall 36.33 include all other money considered wages and any other money 36.34 considered earned income under state and federal law for income 36.35 tax purposes. 36.36 Sec. 21. Minnesota Statutes 2004, section 268.085, 37.1 subdivision 12, is amended to read: 37.2 Subd. 12. [ALIENS.] (a) An alien shall be ineligible for 37.3 unemployment benefits for any week the alien is not authorized 37.4 to work in the United States under federal law. Information 37.5 from the Bureau of Citizenship and Immigration and37.6 Naturalization ServiceServices shall be considered conclusive, 37.7 absent specific evidence that the information was erroneous. 37.8 Pursuant to the existing agreement between the United States and 37.9 Canada, this paragraph shall not apply to an applicant who is a 37.10 Canadian citizen and has returned to and is living in Canada 37.11 each week unemployment benefits are requested. 37.12 (b) Unemployment benefits shall not be paid on the basis of 37.13 wage credits earned by an alien unless the alien (1) was 37.14 lawfully admitted for permanent residence at the time of the 37.15 employment, (2) was lawfully present for the purposes of the 37.16 employment, or (3) was permanently residing in the United States 37.17 under color of law at the time of the employment. 37.18 (c) Any information required of applicants applying for 37.19 unemployment benefits to determine eligibility because of their 37.20 alien status shall be required from all applicants. 37.21 Sec. 22. Minnesota Statutes 2004, section 268.086, 37.22 subdivision 2, is amended to read: 37.23 Subd. 2. [CONTINUED BIWEEKLY REQUEST FOR UNEMPLOYMENT 37.24 BENEFITS DEFINED.] A continued biweekly request for unemployment 37.25 benefits is a certification by an applicant, done on a biweekly 37.26 basis, that the applicant is unemployed and meets the ongoing 37.27 eligibility requirements for unemployment benefits under section 37.28 268.085 for a specific week or two-week period. A continued 37.29 biweekly request shall include information on possible issues of 37.30 eligibility and disqualification in accordance with section 37.31 268.101, subdivision 1, paragraph (c). 37.32 Sec. 23. Minnesota Statutes 2004, section 268.086, 37.33 subdivision 3, is amended to read: 37.34 Subd. 3. [METHODS FOR FILING CONTINUED BIWEEKLY REQUESTS 37.35 FOR UNEMPLOYMENT BENEFITS.] (a) The commissioner shall designate 37.36 to each applicant one of the following methods for filing a 38.1 continued biweekly request: 38.2 (1) by telephone under subdivision 4;38.3 (2)by electronic transmission under subdivision 5; 38.4 (3)(2) by mail under subdivision 6; or 38.5 (4)(3) by in-person interview under subdivision 7. 38.6 (b) The method designated by the commissioner shall be the 38.7 only method allowed for filing a continued biweekly request by 38.8 that applicant. An applicant may ask that one of the other 38.9 allowed methods be designated and the commissioner shall 38.10 consider inconvenience to the applicant as well as 38.11 administrative capacity in determining whether to allow an 38.12 applicant to change the designated method for filing a continued 38.13 biweekly request for unemployment benefits. 38.14 Sec. 24. Minnesota Statutes 2004, section 268.095, 38.15 subdivision 1, is amended to read: 38.16 Subdivision 1. [QUIT.] An applicant who quit employment 38.17 shall be disqualified from all unemployment benefits according 38.18 to subdivision 10 except when: 38.19 (1) the applicant quit the employment because of a good 38.20 reason caused by the employer as defined in subdivision 3; 38.21 (2) the applicant quit the employment to accept other 38.22 covered employment that provided substantially better terms and 38.23 conditions of employment, but the applicant did not work long 38.24 enough at the second employment to have sufficient subsequent 38.25 earnings to satisfy the disqualification that would otherwise be 38.26 imposed under subdivision 10 for quitting the first employment; 38.27 (3) the applicant quit the employment within 30 calendar 38.28 days of beginning the employment because the employment was 38.29 unsuitable for the applicant; 38.30 (4) the employment was unsuitable for the applicant and the 38.31 applicant quit to enter reemployment assistance training; 38.32 (5) the employment was part time and the applicant also had 38.33 full-time employment in the base period, from which full-time 38.34 employment the applicant separated because of nondisqualifying 38.35 reasons, and the wage credits from the full-time employment are 38.36 sufficient to meet the minimum requirements to establish a 39.1 benefit account under section 268.07; 39.2 (6) the applicant quit because the employer notified the 39.3 applicant that the applicant was going to be laid off due to 39.4 lack of work within 30 calendar days. An applicant who quit 39.5 employment within 30 calendar days of a notified date of layoff 39.6 due to lack of work shall be disqualified from unemployment 39.7 benefits through the end of the week that includes the scheduled 39.8 date of layoff; 39.9 (7) the applicant quit the employment because the 39.10 applicant's serious illness or injury made it medically 39.11 necessary that the applicant quit, provided that the applicant 39.12 inform the employer of the serious illness or injury and request 39.13 accommodation and no reasonable accommodation is made available. 39.14 If the applicant's serious illness is chemical dependency, 39.15 this exception shall not apply if the applicant was previously 39.16 diagnosed as chemically dependent or had treatment for chemical 39.17 dependency, and since that diagnosis or treatment has failed to 39.18 make consistent efforts to control the chemical dependency; or 39.19 (8) domestic abuse of the applicant or the applicant's 39.20 minor child, necessitated the applicant's quitting the 39.21 employment. Domestic abuse shall be shown by one or more of the 39.22 following: 39.23 (i) a court order for protection or other documentation of 39.24 equitable relief issued by a court; 39.25 (ii) a police record documenting the domestic abuse; 39.26 (iii) documentation that the perpetrator of the domestic 39.27 abuse has been convicted of the offense of domestic abuse; 39.28 (iv) medical documentation of domestic abuse; or 39.29 (v) written statement that the applicant or the applicant's 39.30 minor child is a victim of domestic abuse, provided by a social 39.31 worker, member of the clergy, shelter worker, attorney at law, 39.32 or other professional who has assisted the applicant in dealing 39.33 with the domestic abuse. 39.34 Domestic abuse for purposes of this clause shall be defined 39.35 under section 518B.01. 39.36 Sec. 25. Minnesota Statutes 2004, section 268.095, 40.1 subdivision 4, is amended to read: 40.2 Subd. 4. [DISCHARGE.] An applicant who was discharged from 40.3 employment by an employer shall notbe disqualified from anyall 40.4 unemployment benefits except whenaccording to subdivision 10 40.5 only if: 40.6 (1) the applicant was discharged because of employment 40.7 misconduct as defined in subdivision 6; or 40.8 (2) the applicant was discharged because of aggravated 40.9 employment misconduct as defined in subdivision 6a. 40.10 Sec. 26. Minnesota Statutes 2004, section 268.095, 40.11 subdivision 7, is amended to read: 40.12 Subd. 7. [ACT OR OMISSIONS AFTER SEPARATION.] Except as40.13 provided for under subdivision 8,An applicant shall not be 40.14 disqualified from unemployment benefits under this section for 40.15 any acts or omissions occurring after the applicant's separation 40.16 from employment with the employer. A layoff due to lack of work 40.17 is considered a separation from employment. 40.18 Sec. 27. Minnesota Statutes 2004, section 268.095, 40.19 subdivision 8, is amended to read: 40.20 Subd. 8. [OFFERS OF SUITABLE EMPLOYMENT.] (a) An applicant 40.21 shall be disqualified fromineligible for all unemployment 40.22 benefits for eight calendar weeks if the applicant, without good 40.23 cause: 40.24 (1) failed to apply for available, suitable employment of 40.25 which the applicant was advised by the commissioner or an 40.26 employer; 40.27 (2) failed to accept suitable employment when offered; or 40.28 (3) avoided an offer of suitable employment. 40.29 (b) "Good cause" is a reason that would cause a reasonable 40.30 individual who wants suitable employment to fail to apply for, 40.31 accept, or avoid suitable employment. Good cause includes: 40.32 (1) the applicant is employed in other suitable employment; 40.33 (2) the applicant is in reemployment assistance training; 40.34 (3) the applicant formerly worked for the employer and the 40.35 loss of employment occurred prior to the commencement of a labor 40.36 dispute, was permanent or for an indefinite period, and the 41.1 applicant failed to apply for or accept the employment because a 41.2 labor dispute was in progress at the establishment; or 41.3 (4) the applicant formerly worked for the employer and quit 41.4 that employment because of a good reason caused by the employer. 41.5 (c) This subdivision only applies to offers of suitable 41.6 employment with a new or a former employer and does not apply to 41.7 any type of job transfers, position reassignments, or changes in 41.8 job duties or responsibilities during the course of employment 41.9 with an employer. 41.10 (d) The period of ineligibility under this section shall 41.11 begin the Sunday of the week the applicant failed to apply for, 41.12 accept, or avoided suitable employment without good cause. 41.13 (e) This section shall apply to offers of suitable 41.14 employment that occur prior to the effective date of the benefit 41.15 account and that occur during the benefit year. 41.16 (f) This section shall only apply to offers of suitable 41.17 employment that are considered covered employment under section 41.18 268.035, subdivision 12. 41.19 Sec. 28. Minnesota Statutes 2004, section 268.095, 41.20 subdivision 10, is amended to read: 41.21 Subd. 10. [DISQUALIFICATION DURATION.] (a) A 41.22 disqualification from the payment of all unemployment benefits 41.23 under subdivisions 1 ,and 4 , and 8shall be for the duration of 41.24 the applicant's unemployment and until the end of the calendar 41.25 week that the applicant had total earnings in subsequent covered 41.26 employment of eight times the applicant's weekly unemployment 41.27 benefit amount. 41.28 (b) Any disqualification imposed under subdivisions 1 and 4 41.29 shall begin on the Sunday of the week that the applicant became 41.30 separated from employment. Any disqualification imposed under41.31 subdivision 8 shall begin on the Sunday of the week the41.32 applicant failed to apply for, accept, or avoided employment.41.33 (c) In addition to paragraph (a), if the applicant was 41.34 discharged from employment because of aggravated employment 41.35 misconduct, wage credits from that employment shall be canceled. 41.36 Sec. 29. Minnesota Statutes 2004, section 268.095, 42.1 subdivision 11, is amended to read: 42.2 Subd. 11. [APPLICATION.] (a) This section shall apply to 42.3 all covered employment, full time or part time, temporary or of 42.4 limited duration, permanent or of indefinite duration, that 42.5 occurred in Minnesota during the base period, the period between 42.6 the end of the base period and the effective date of the benefit 42.7 account, or the benefit year, except as provided for in 42.8 subdivision 1, clause (5). Subdivision 8 shall only apply to42.9 offers of suitable employment made during the applicant's42.10 benefit year.42.11 (b) Paragraph (a) shall also apply to employment covered 42.12 under an unemployment insurance program of any other state or 42.13 established by an act of Congress. 42.14 Sec. 30. Minnesota Statutes 2004, section 268.101, 42.15 subdivision 1, is amended to read: 42.16 Subdivision 1. [NOTIFICATION.] (a) In an application for 42.17 unemployment benefits, each applicant shall report the name and 42.18 the reason for no longer working for the applicant's most recent 42.19 employer, as well as the names of all employers and the reasons 42.20 for no longer working for all employers during the six calendar 42.21 months prior to the date of the application. If the reason 42.22 reported for no longer working for any of those employers is 42.23 other than a layoff due to lack of work, that shall raise an 42.24 issue of disqualification that the department shall 42.25 determine. An applicant shall report any offers of employment 42.26 refused during the eight calendar weeks prior to the date of the 42.27 application for unemployment benefits and the name of the 42.28 employer that made the offer. An applicant's failure to report 42.29 the name of an employer, or giving an incorrect reason for no 42.30 longer working for an employer, or failing to disclose an offer 42.31 of employment that was refused, shall be considered a violation 42.32 of section 268.182, paragraph (b)subdivision 2. 42.33 In an application, the applicant shall also provide all 42.34 information necessary to determine the applicant's eligibility 42.35 for unemployment benefits under section 268.085. If the 42.36 applicant fails or refuses to provide information necessary to 43.1 determine the applicant's eligibility for unemployment benefits 43.2 under section 268.085, the applicant shall be ineligible for 43.3 unemployment benefits under section 268.085, subdivision 2, 43.4 until the applicant provides this required information. 43.5 (b) Upon establishment of a benefit account, the 43.6 commissioner shall notify, by mail or electronic transmission, 43.7 all employers the applicant was required to report on the 43.8 application and all base period employers and determined 43.9 successors to those employers under section 268.051, subdivision 43.10 4 in order to provide the employer an opportunity to raise, in a 43.11 manner prescribed by the commissioner, any issue of 43.12 disqualification or any issue of eligibility. An employer shall 43.13 be informed of the effect that failure to raise an issue of 43.14 disqualification within ten calendar days after sending of the 43.15 notice, as provided for under subdivision 2, paragraph (b), may 43.16 have on the employer under section 268.047. 43.17 (c) Each applicant shall report any employment, loss of 43.18 employment, and offers of employment receivedrefused, during 43.19 those weeks the applicant filed continued biweekly requests for 43.20 unemployment benefits pursuant to section 268.086. Each 43.21 applicant who stops filing continued biweekly requests during 43.22 the benefit year and later begins filing continued biweekly 43.23 requests during that same benefit year shall report the name of 43.24 any employer the applicant worked for during the period between 43.25 the filing of continued biweekly requests and the reason the 43.26 applicant stopped working for the employer. The applicant shall 43.27 report any offers of employment refused during the period 43.28 between the filing of continued biweekly requests for 43.29 unemployment benefits. Those employers from which the applicant 43.30 has reported a loss of employment or an offer of employment43.31 pursuant to this paragraph shall be notified by mail or 43.32 electronic transmission and provided an opportunity to raise, in 43.33 a manner prescribed by the commissioner, any issue of 43.34 disqualification or any issue of eligibility. An employer shall 43.35 be informed of the effect that failure to raise an issue may 43.36 have on the employer under section 268.047. 44.1 (d) The purpose for requiring the applicant to report the 44.2 name of employers and the reason for no longer working for those 44.3 employers, or offers of employment refused, under paragraphs (a) 44.4 and (c) is for the commissioner to obtain information from an 44.5 applicant raising all issues that may have the potential of 44.6 disqualifying the applicant from unemployment benefits under 44.7 section 268.095, or the applicant being ineligible for 44.8 unemployment benefits under section 268.085, subdivision 13c. 44.9 If the reason given by the applicant for no longer working for 44.10 an employer is other than a layoff due to lack of work, that 44.11 shall raise an issue of disqualification and the applicant shall 44.12 be required, as part of the determination process under 44.13 subdivision 2, paragraph (a), to state all the facts about the 44.14 cause for no longer working for the employer, if known. If the 44.15 applicant fails or refuses to provide thisany required 44.16 information, the applicant shall be ineligible for unemployment 44.17 benefits under section 268.085, subdivision 2, until the 44.18 applicant provides this required information. 44.19 Sec. 31. Minnesota Statutes 2004, section 268.101, 44.20 subdivision 3a, is amended to read: 44.21 Subd. 3a. [DIRECT HEARING.] Regardless of any provision of 44.22 the Minnesota Unemployment Insurance Law, the commissioner or an 44.23 unemployment law judge or a senior unemployment review judge44.24 may, prior to a determination being made under this chapter, 44.25 refer any issue of disqualification, any issue of eligibility, 44.26 or any other issue under this chapter, directly for hearing in 44.27 accordance with section 268.105, subdivision 1. The status of 44.28 the issue shall be the same as if a determination had been made 44.29 and an appeal filed. 44.30 Sec. 32. Minnesota Statutes 2004, section 268.103, 44.31 subdivision 2, is amended to read: 44.32 Subd. 2. [APPLICANT'S APPEAL BY MAIL.] (a) The 44.33 commissioner must allow an applicant to file an appeal to be44.34 filedby mail even if an appeal by electronic transmission is 44.35 allowed. 44.36 (b) A written statement delivered or mailed to the 45.1 department that could reasonably be interpreted to mean that an 45.2 involved applicant or employeris in disagreement with a 45.3 specific determination or decision shall be considered an 45.4 appeal. No specific words need be used for the written 45.5 statement to be considered an appeal. 45.6 Sec. 33. Minnesota Statutes 2004, section 268.105, is 45.7 amended to read: 45.8 268.105 [APPEALS.] 45.9 Subdivision 1. [EVIDENTIARY HEARING BY AN UNEMPLOYMENT LAW 45.10 JUDGE.] (a) Upon a timely appeal having been filed, the 45.11 department shall send, by mail or electronic transmission, a 45.12 notice of appeal to all involved parties that an appeal has been 45.13 filed, that a de novo due process evidentiary hearing will be 45.14 scheduled, and that the parties have certain rights and 45.15 responsibilities regarding the hearing. The department shall 45.16 set a time and place for a de novo due process evidentiary 45.17 hearing and send notice to any involved applicant and any 45.18 involved employer, by mail or electronic transmission, not less 45.19 than ten calendar days prior to the date of the hearing. 45.20 (b) The evidentiary hearing shall be conducted by an 45.21 unemployment law judge without regard to any common law burden 45.22 of proof as an evidence gathering inquiry and not an adversarial 45.23 proceeding. The unemployment law judge shall ensure that all 45.24 relevant facts are clearly and fully developed. The department 45.25 shall adopt rules on evidentiary hearings. The rules need not 45.26 conform to common law or statutory rules of evidence and other 45.27 technical rules of procedure. The department shall have 45.28 discretion regarding the method by which the evidentiary hearing 45.29 is conducted. A report of any employee of the department, 45.30 except a determination, made in the regular course of the 45.31 employee's duties, shall be competent evidence of the facts 45.32 contained in it. 45.33 (c) After the conclusion of the hearing, upon the evidence 45.34 obtained, the unemployment law judge shall make findings of fact 45.35 and decision and send those, by mail or electronic transmission, 45.36 to all involved parties. When the credibility of an involved 46.1 party or witness testifying in an evidentiary hearing has a 46.2 significant effect on the outcome of a decision, the 46.3 unemployment law judge must set out the reason for crediting or 46.4 discrediting that testimony. The unemployment law judge's 46.5 decision is thefinal department decisionunless a further46.6 appealrequest for reconsideration is filed pursuant to 46.7 subdivision 2. 46.8 (d) Only employees of the department who are attorneys 46.9 shall serve as unemployment law judges. A senior unemployment46.10 review judgeThe commissioner may personally hear ortransfer to 46.11 another unemployment law judge any proceedings pending before an 46.12 unemployment law judge. Any proceedings removed to a senior46.13 unemployment review judge shall be heard in accordance with this46.14 subdivision.46.15 Subd. 2. [DE NOVO REVIEW BY A SENIOR UNEMPLOYMENT REVIEW46.16 JUDGE.] (a) Except as provided under subdivision 2a, any46.17 involved applicant or involved employer may appeal a decision of46.18 an unemployment law judge and obtain a de novo review by a46.19 senior unemployment review judge by filing with a senior46.20 unemployment review judge an appeal within 30 calendar days46.21 after the sending of the unemployment law judge's decision. A46.22 senior unemployment review judge within the same period of time46.23 may, on a senior unemployment review judge's own motion, order a46.24 de novo review of any decision of an unemployment law judge.46.25 (b) A senior unemployment review judge shall be an attorney46.26 who is an employee of the department.46.27 (c) Upon de novo review, a senior unemployment review judge46.28 shall, on the basis of that evidence submitted at the46.29 evidentiary hearing under subdivision 1, make findings of fact46.30 and decision, or remand the matter back to an unemployment law46.31 judge for the taking of additional evidence and the making of46.32 new findings and decision based on all the evidence. A senior46.33 unemployment review judge shall, independent of the findings of46.34 fact and decision of the unemployment law judge, examine the46.35 evidence and make those findings of fact as the evidence, in the46.36 judgment of the senior unemployment review judge require, and47.1 make that decision as the facts found by the senior unemployment47.2 review judge require.47.3 (d) A senior unemployment review judge may conduct a de47.4 novo review without argument by any involved party, or a senior47.5 unemployment review judge may allow written argument. A senior47.6 unemployment review judge shall not, except for purposes of47.7 deciding whether to remand a matter to an unemployment law judge47.8 for a further evidentiary hearing, consider any evidence that47.9 was not submitted at the hearing before the unemployment law47.10 judge.47.11 (e) The senior unemployment review judge shall send, by47.12 mail or electronic transmission, to any involved party the47.13 senior unemployment review judge's findings of fact and47.14 decision. The decision of the senior unemployment review judge47.15 is the final decision of the department. Unless judicial review47.16 is sought under subdivision 7, the decision of the senior47.17 unemployment review judge shall become final 30 calendar days47.18 after sending.47.19 Subd. 2a. [ORDERS BY A SENIOR UNEMPLOYMENT REVIEW JUDGE.]47.20 (a) If an applicant or employer files an appeal in a matter47.21 where an unemployment law judge affirmed a determination issued47.22 under section 268.101, and there is no dispute regarding the47.23 determinative facts, a senior unemployment review judge shall47.24 have the discretion to decline to conduct a de novo review. If47.25 de novo review is declined, the senior unemployment review judge47.26 shall issue an order adopting the unemployment law judge's47.27 findings of fact and decision.47.28 (b) If an involved party fails, without good cause, to47.29 appear and participate at the evidentiary hearing conducted by47.30 an unemployment law judge under subdivision 1, and that party47.31 files an appeal, a senior unemployment review judge shall have47.32 the discretion to decline to conduct a de novo review. If de47.33 novo review is declined, the senior unemployment review judge47.34 shall issue an order dismissing the appeal.47.35 Submission of a written statement shall not constitute an47.36 appearance and participation at an evidentiary hearing for48.1 purposes of this paragraph.48.2 All involved parties must be notified of this paragraph48.3 with the notice of appeal and notice of hearing provided for48.4 under subdivision 1. The senior unemployment review judge shall48.5 allow for the submission of a written argument on the issue of48.6 good cause before dismissing an appeal under this paragraph.48.7 "Good cause" for purposes of this paragraph is a compelling48.8 reason that would have prevented a reasonable person acting with48.9 due diligence from appearing and participating at the48.10 evidentiary hearing.48.11 (c) The senior unemployment review judge shall send to any48.12 involved party the order issued under this subdivision. The48.13 order may be sent by mail or electronic transmission. Unless48.14 judicial review is sought under subdivision 7, the order of a48.15 senior unemployment review judge becomes final 30 calendar days48.16 after sending.[REQUEST FOR RECONSIDERATION.] (a) Any involved 48.17 applicant, involved employer, or the commissioner may, within 30 48.18 calendar days of the sending of the unemployment law judge's 48.19 decision under subdivision 1, file a request for reconsideration 48.20 asking the unemployment law judge to reconsider that decision. 48.21 Section 268.103 shall apply to a request for reconsideration. 48.22 If a request for reconsideration is timely filed, the 48.23 unemployment law judge shall issue an order: 48.24 (1) modifying the findings of fact and decision issued 48.25 under subdivision 1; 48.26 (2) setting aside the findings of fact and decision issued 48.27 under subdivision 1 and directing that an additional evidentiary 48.28 hearing be conducted under subdivision 1; or 48.29 (3) affirming the findings of fact and decision issued 48.30 under subdivision 1. 48.31 (b) Upon a timely request for reconsideration having been 48.32 filed, the department shall send a notice, by mail or electronic 48.33 transmission, to all involved parties that a request for 48.34 reconsideration has been filed. The notice shall inform the 48.35 involved parties: 48.36 (1) of the opportunity to provide comment on the request 49.1 for reconsideration, and the right under subdivision 5 to obtain 49.2 a copy of any recorded testimony and exhibits offered or 49.3 received into evidence at the evidentiary hearing; 49.4 (2) that providing specific comments as to a perceived 49.5 factual or legal error in the decision, or a perceived error in 49.6 procedure during the evidentiary hearing, will assist the 49.7 unemployment law judge in deciding the request for 49.8 reconsideration; 49.9 (3) of the right to obtain any comments and submissions 49.10 provided by the other involved party regarding the request for 49.11 reconsideration; and 49.12 (4) of the provisions of paragraph (c) regarding additional 49.13 evidence. 49.14 This paragraph shall not apply if paragraph (d) is applicable. 49.15 (c) In deciding a request for reconsideration, the 49.16 unemployment law judge shall not, except for purposes of 49.17 determining whether to order an additional evidentiary hearing, 49.18 consider any evidence that was not submitted at the evidentiary 49.19 hearing conducted under subdivision 1. 49.20 The unemployment law judge must order an additional 49.21 evidentiary hearing if an involved party shows that evidence 49.22 which was not submitted at the evidentiary hearing: (1) would 49.23 likely change the outcome of the decision and there was good 49.24 cause for not having previously submitted that evidence; or (2) 49.25 would show that the evidence that was submitted at the 49.26 evidentiary hearing was likely false and that the likely false 49.27 evidence had an effect on the outcome of the decision. 49.28 (d) If the involved applicant or involved employer who 49.29 filed the request for reconsideration failed to participate in 49.30 the evidentiary hearing conducted under subdivision 1, an order 49.31 setting aside the findings of fact and decision and directing 49.32 that an additional evidentiary hearing be conducted must be 49.33 issued if the party who failed to participate had good cause for 49.34 failing to do so. In the notice of the request for 49.35 reconsideration, the party who failed to participate shall be 49.36 informed of the requirement, and provided the opportunity, to 50.1 show good cause for failing to participate. If the unemployment 50.2 law judge determines that good cause for failure to participate 50.3 has not been shown, the unemployment law judge must state that 50.4 in the order issued under paragraph (a). 50.5 Submission of a written statement at the evidentiary 50.6 hearing under subdivision 1 shall not constitute participation 50.7 for purposes of this paragraph. 50.8 All involved parties must be informed of this paragraph 50.9 with the notice of appeal and notice of hearing provided for in 50.10 subdivision 1. 50.11 "Good cause" for purposes of this paragraph is a reason 50.12 that would have prevented a reasonable person acting with due 50.13 diligence from participating at the evidentiary hearing. 50.14 (e) A request for reconsideration shall be decided by the 50.15 unemployment law judge who issued the findings of fact and 50.16 decision under subdivision 1 unless that unemployment law 50.17 judge: (1) is no longer employed by the department; (2) is on 50.18 an extended or indefinite leave; (3) has been disqualified from 50.19 the proceedings on the judge's own motion; or (4) has been 50.20 removed from the proceedings as provided for under subdivision 1 50.21 or applicable rule. 50.22 (f) The unemployment law judge shall send to any involved 50.23 applicant or involved employer, by mail or electronic 50.24 transmission, the order issued under this subdivision. An order 50.25 modifying the previously issued findings of fact and decision or 50.26 an order affirming the previously issued findings of fact and 50.27 decision shall be the final department decision on the matter 50.28 and shall be final and binding on the involved applicant and 50.29 involved employer unless judicial review is sought under 50.30 subdivision 7. 50.31 Subd. 3. [WITHDRAWAL OF APPEAL.] (a) Any appeal that is 50.32 pending before an unemployment law judge or a senior50.33 unemployment review judgemay be withdrawn by the appealing 50.34 person, or an authorized representative of that person, upon 50.35 filing of a notice of withdrawal. 50.36 (b) The appeal shall, by order, be dismissed if a notice of 51.1 withdrawal is filed, unless an unemployment law judge or a51.2 senior unemployment review judge, by order,directs that further 51.3 adjudication is required for a proper result. 51.4 (c) A notice of withdrawal may be filed by mail or by 51.5 electronic transmission. 51.6 Subd. 3a. [DECISIONS.] (a) If an unemployment law judge's 51.7 decision or a senior unemployment review judge's decisionor 51.8 order allows unemployment benefits to an applicant, the 51.9 unemployment benefits shall be paid regardless of any appeal51.10 periodrequest for reconsideration or any appeal to the 51.11 Minnesota Court of Appeals having been filed. 51.12 (b) If an unemployment law judge's decision or order 51.13 modifies or reverses a determination, or prior decision of the 51.14 unemployment law judge, allowing unemployment benefits to an 51.15 applicant, any benefits paid pursuant to the determination, or 51.16 prior decision of the unemployment law judge, is considered an 51.17 overpayment of those unemployment benefits under section 268.18, 51.18 subdivision 1. 51.19 (c) If a senior unemployment review judge's decision51.20 modifies or reverses an unemployment law judge's decision51.21 allowing unemployment benefits to an applicant, any unemployment51.22 benefits paid pursuant to the unemployment law judge's decision51.23 is considered an overpayment of those unemployment benefits51.24 under section 268.18, subdivision 1.51.25 (d)If a senior unemployment review judge affirmsan 51.26 unemployment law judge's decision on an issue of51.27 disqualification thatorder under subdivision 2 allows 51.28 unemployment benefits to an applicant under section 268.095 51.29 because of a quit or discharge and the seniorunemployment 51.30 reviewlaw judge's decision or orderis reversed by the 51.31 Minnesota Court of Appeals or the Supreme Court of 51.32 Minnesota, any unemployment benefits paid the applicant shall 51.33 not be disqualified fromconsidered an overpayment of those 51.34 unemployment benefits under section 268.095268.18, 51.35 subdivision 101. 51.36 (e)(d) If a senioran unemployment reviewlaw judge, 52.1 pursuant to subdivision 2, remands a matter to an unemployment52.2 law judge fororders the taking of additional evidence, 52.3 the priorunemployment law judge's prior decision shall continue 52.4 to be enforced until new findings of fact and decision are made 52.5 by anthe unemployment law judge. 52.6 Subd. 4. [TESTIMONIAL POWERS.] An unemployment law 52.7 judge and a senior unemployment review judgemay administer 52.8 oaths and affirmations, take depositions, and issue subpoenas to 52.9 compel the attendance of witnesses and the production of 52.10 documents and other personal property considered necessary as 52.11 evidence in connection with the subject matter of an evidentiary 52.12 hearing. The subpoenas shall be enforceable through the 52.13 district court in the district that the subpoena is issued. 52.14 Witnesses subpoenaed, other than an involved applicant or 52.15 involved employer or officers and employees of an involved 52.16 employer, shall be paid by the department the same witness fees 52.17 as in a civil action in district court. 52.18 Subd. 5. [USE OF EVIDENCE; DATA PRIVACY.] (a) All 52.19 testimony at any evidentiary hearing conducted pursuant to 52.20 subdivision 1 shall be recorded. A copy of any recorded 52.21 testimony and exhibits offered or received into evidence at the 52.22 hearing shall, upon request, or upon directive of a senior52.23 unemployment review judge,be furnished to a party at no cost 52.24 during the time period for filing an appeal to a senior52.25 unemployment review judgea request for reconsideration or while 52.26 such an appeala request for reconsideration is pending. If52.27 requested, the department shall make available a device for52.28 listening to the recording if an appeal is pending before a52.29 senior unemployment review judge under subdivision 2.52.30 (b) Regardless of any provision of law to the contrary, if 52.31 recorded testimony and exhibits received into evidence at the 52.32 evidentiary hearing are not requested during the time period for 52.33 filing an appeal to a senior unemployment review judgea request 52.34 for reconsideration, or while such an appeala request for 52.35 reconsideration is pending, that testimony and other evidence 52.36 shall later be made available to an involved partyonly pursuant 53.1 to a district court order. A subpoena shall not be considered a 53.2 district court order. 53.3 (c) Testimony obtained under subdivision 1, may not be used 53.4 or considered for any purpose, including impeachment, in any 53.5 civil, administrative, or contractual proceeding, except by a 53.6 local, state, or federal human rights agency with enforcement 53.7 powers, unless the proceeding is initiated by the department. 53.8 Subd. 5a. [NO COLLATERAL ESTOPPEL.] No findings of fact or 53.9 decision or order issued by an unemployment law judge or a53.10 senior unemployment review judgemay be held conclusive or 53.11 binding or used as evidence in any separate or subsequent action 53.12 in any other forum, be it contractual, administrative, or 53.13 judicial, except proceedings provided for under this chapter, 53.14 regardless of whether the action involves the same or related 53.15 parties or involves the same facts. 53.16 Subd. 6. [REPRESENTATION; FEES.] (a) In any proceeding 53.17 under subdivision 1 ,or 2 , or 2a, an applicant or involved 53.18 employer may be represented by any agent. 53.19 (b) Except for services provided by an attorney-at-law, an 53.20 applicant shall not be charged fees, costs, or disbursements of 53.21 any kind in a proceeding before an unemployment law judge, a53.22 senior unemployment review judge,the Minnesota Court of 53.23 Appeals, or the Supreme Court of Minnesota. 53.24 Subd. 7. [JUDICIAL REVIEW.] (a) The Minnesota Court of 53.25 Appeals shall, by writ of certiorari to the department, review 53.26 the seniorunemployment reviewlaw judge's decision under53.27 subdivision 2 or order under subdivision 2a, provided a petition 53.28 for the writ is filed with the court and a copy is served upon 53.29 the seniorunemployment reviewlaw judge or the commissioner and 53.30 any other involved party within 30 calendar days of the sending 53.31 of the seniorunemployment reviewlaw judge's decision under53.32 subdivision 2 ororder under subdivision 2a2. 53.33 (b) Any employer petitioning for a writ of certiorari shall 53.34 pay to the court the required filing fee and upon the service of 53.35 the writ shall furnish a cost bond to the department in 53.36 accordance with the Rules of Civil Appellate Procedure. If the 54.1 employer requests a written transcript of the testimony received 54.2 at the evidentiary hearing conducted pursuant to subdivision 1, 54.3 the employer shall pay to the department the cost of preparing 54.4 the transcript. That money shall be credited to the 54.5 administration account. 54.6 (c) Upon issuance by the Minnesota Court of Appeals of a 54.7 writ of certiorari as a result of an applicant's petition, the 54.8 department shall furnish to the applicant at no cost a written 54.9 transcript of any testimony received at the evidentiary hearing 54.10 conducted pursuant to subdivision 1, and, if requested, a copy 54.11 of all exhibits entered into evidence. No filing fee or cost 54.12 bond shall be required of an applicant petitioning the Minnesota 54.13 Court of Appeals for a writ of certiorari. 54.14 (d) The Minnesota Court of Appeals may affirm the decision 54.15 of the unemployment law judge or remand the case for further 54.16 proceedings; or it may reverse or modify the decision if the 54.17 substantial rights of the petitioner may have been prejudiced 54.18 because the findings, inferences, conclusion, or decision are: 54.19 (1) in violation of constitutional provisions; 54.20 (2) in excess of the statutory authority or jurisdiction of 54.21 the department; 54.22 (3) made upon unlawful procedure; 54.23 (4) affected by other error of law; 54.24 (5) unsupported by substantial evidence in view of the 54.25 entire record as submitted; or 54.26 (6) arbitrary or capricious. 54.27 (e) The department shall be considered the primary 54.28 responding party to any judicial action involving a senioran 54.29 unemployment reviewlaw judge's decision or order. The 54.30 department may be represented by an attorney who is an employee 54.31 of the department. 54.32 [EFFECTIVE DATE.] This section applies to unemployment law 54.33 judge decisions issued on or after 30 days following final 54.34 enactment of this act. 54.35 Sec. 34. Minnesota Statutes 2004, section 268.145, 54.36 subdivision 1, is amended to read: 55.1 Subdivision 1. [NOTIFICATION.] (a) Upon filing an 55.2 application for unemployment benefits, the applicant shall be 55.3 informed that: 55.4 (1) unemployment benefits are subject to federal and state 55.5 income tax; 55.6 (2) there are requirements for filing estimated tax 55.7 payments; 55.8 (3) the applicant may elect to have federal income tax 55.9 withheld from unemployment benefits; 55.10 (4) if the applicant elects to have federal income tax 55.11 withheld, the applicant may, in addition, elect to have 55.12 Minnesota state income tax withheld; and 55.13 (5) at any time during the benefit year the applicant may 55.14 change a prior election. 55.15 (b) If an applicant elects to have federal income tax 55.16 withheld, the commissioner shall deduct ten percent for federal 55.17 income tax, rounded down to the next lower whole dollar. If an 55.18 applicant also elects to have Minnesota state income tax 55.19 withheld, the commissioner shall make an additional five percent 55.20 deduction for state income tax, rounded down to the next lower 55.21 whole dollar. Any amounts deducted or offset pursuant to 55.22 sections 268.155, 268.156,268.18, and 268.184 have priority 55.23 over any amounts deducted under this section. Federal income 55.24 tax withholding has priority over state income tax withholding. 55.25 (c) An election to have income tax withheld shall not be 55.26 retroactive and shall only apply to unemployment benefits paid 55.27 after the election. 55.28 Sec. 35. Minnesota Statutes 2004, section 268.18, 55.29 subdivision 1, is amended to read: 55.30 Subdivision 1. [NONFRAUD OVERPAYMENT.] (a) Any applicant 55.31 who (1) by reason of the applicant's own mistake, or (2) because 55.32 of an error by any employee of the department, or (3) because of 55.33 a determination or amended determination issued pursuant to 55.34 section 268.07 or 268.101, or (4) because of an appeal decision 55.35 under section 268.105, has received any unemployment benefits 55.36 that the applicant was not entitled to, shall promptly repay the 56.1 unemployment benefits to the trust fund. The commissioner shall, 56.2 as soon as the overpayment is discovered, determine the amount 56.3 due and notify the applicant to repay the unemployment benefits. 56.4 (b) Unless the applicant files an appeal within 30 calendar 56.5 days after the sending of the determination of overpayment to 56.6 the applicant by mail or electronic transmission, the 56.7 determination shall become final. Proceedings on the appeal 56.8 shall be conducted in accordance with section 268.105. An 56.9 applicant may not collaterally attack, by way of an appeal to an 56.10 overpayment determination, any prior determination issued 56.11 pursuant to section 268.07 or 268.101, or decision issued 56.12 pursuant to section 268.105, that has become final. 56.13 (c) If the applicant fails to repay the unemployment 56.14 benefits determined overpaid under this subdivision, the 56.15 commissioner may offset from any future unemployment benefits 56.16 otherwise payable the amount of the overpayment. Except when 56.17 the overpayment resulted because the applicant failed to report 56.18 deductible earnings or deductible or benefit delaying payments, 56.19 no single offset shall exceed 50 percent of the amount of the 56.20 payment from which the offset is made. The overpayment may also 56.21 be collected by the same methods as delinquent payments from an 56.22 employer. A determination of overpayment shall state the 56.23 methods of collection the commissioner may use to recover the 56.24 overpayment. 56.25 (d) If an applicant has been overpaid unemployment benefits 56.26 under the law of another state, due to a reason other than 56.27 fraud, and that state certifies that the applicant is liable 56.28 under its law to repay the unemployment benefits and requests 56.29 the commissioner to recover the overpayment, the commissioner 56.30 may offset from future unemployment benefits otherwise payable 56.31 the amount of overpayment, except that no single offset shall 56.32 exceed 50 percent of the amount of the payment from which the 56.33 offset is made. 56.34 (e) If under paragraph (c) or (d) the reduced unemployment 56.35 benefits as a result of a 50 percent offset is not a whole 56.36 dollar amount, it shall be rounded down to the next lower whole 57.1 dollar. 57.2 (f) Unemployment benefits paid for weeks more than three 57.3 years prior to the discoverydate of a determination of 57.4 overpayment issued under this subdivision areshall not be 57.5 considered overpaid unemployment benefits. 57.6 Sec. 36. Minnesota Statutes 2004, section 268.18, 57.7 subdivision 2, is amended to read: 57.8 Subd. 2. [OVERPAYMENT DUE TO FRAUD.] (a) Any applicant who 57.9 receives unemployment benefits by knowingly misrepresenting, 57.10 misstating, or failing to disclose any material fact, or who 57.11 makes a false statement or representation without a good faith 57.12 belief as to the correctness of the statement or representation, 57.13 has committed fraud. After the discovery of facts indicating 57.14 fraud, the commissioner shall make a determination that the 57.15 applicant obtained unemployment benefits by fraud and that the 57.16 applicant must promptly repay the unemployment benefits to the 57.17 trust fund. In addition, the commissioner shall assess a 57.18 penalty equal to 25 percent of the amount fraudulently 57.19 obtained. If the applicant had a prior overpayment due to 57.20 fraud, the commissioner shall, on the present overpayment, 57.21 assess a penalty equal to 50 percent of the amount fraudulently 57.22 obtained. This penalty is in addition to penalties under 57.23 section 268.182. 57.24 (b) Unless the applicant files an appeal within 30 calendar 57.25 days after the sending of the determination of overpayment by 57.26 fraud to the applicant by mail or electronic transmission, the 57.27 determination shall become final. Proceedings on the appeal 57.28 shall be conducted in accordance with section 268.105. 57.29 (c) If the applicant fails to repay the unemployment 57.30 benefits, penalty, and interest assessed, the commissioner shall 57.31 offset from future unemployment benefits otherwise payable the 57.32 total amount due. The total due may also be collected by the 57.33 same methods as delinquent payments from an employer. A 57.34 determination of overpayment by fraud shall state the methods of 57.35 collection the commissioner may use to recover the overpayment. 57.36 Money received in repayment of fraudulently obtained 58.1 unemployment benefits, penalties, and interest shall first be 58.2 applied to the unemployment benefits overpaid, then to the 58.3 penalty amount due, then to any interest due. Payments made 58.4 toward the penalty and interestshall be credited to the 58.5 contingent account. 58.6 (d) If an applicant has been overpaid unemployment benefits 58.7 under the law of another state because of fraud and that state 58.8 certifies that the applicant is liable to repay the unemployment 58.9 benefits and requests the commissioner to recover the 58.10 overpayment, the commissioner may offset from future 58.11 unemployment benefits otherwise payable the amount of 58.12 overpayment. 58.13 (e) Unemployment benefits paid for weeks more than four 58.14 years prior to the date of a determination of overpayment by 58.15 fraud may only be made within four years of the effective date58.16 of the benefit account from which theissued under this 58.17 subdivision shall not be considered overpaid unemployment 58.18 benefits were fraudulently obtained. 58.19 Sec. 37. Minnesota Statutes 2004, section 268.18, 58.20 subdivision 2b, is amended to read: 58.21 Subd. 2b. [INTEREST.] (a) On any unemployment benefits 58.22 fraudulently obtained, and any penalty amounts assessed under 58.23 subdivision 2, the commissioner may assess interest at the rate 58.24 of 1-1/2 percent per month on any amount that remains unpaid 30 58.25 calendar days after the date of the determination of overpayment 58.26 by fraud. A determination of overpayment by fraud shall state 58.27 that interest shall be assessed. 58.28 (b) If this subdivision became effective after the date of 58.29 the determination, or the determination did not state that 58.30 interest shall be assessed, interest shall be assessed beginning 58.31 30 calendar days after notification, by mail or electronic 58.32 transmission, to the applicant. 58.33 (c) Interest payments under this section shall be credited 58.34 to the administration account. 58.35 Sec. 38. Minnesota Statutes 2004, section 268.182, 58.36 subdivision 2, is amended to read: 59.1 Subd. 2. [ADMINISTRATIVE PENALTIES.] Any individual59.2 applicant who knowingly makes a false statement or 59.3 representation, who knowingly fails to disclose a material fact, 59.4 or who makes a false statement or representation without a good 59.5 faith belief as to the correctness of the statement or 59.6 representation, in order to obtain or in an attempt to obtain 59.7 unemployment benefits may be assessed, in addition to any other 59.8 penalties, an administrative penalty of denial ofbeing 59.9 ineligible for unemployment benefits for one to 5213 to 104 59.10 weeks that the individual would otherwise be entitled to59.11 unemployment benefits. A denial shall not apply to any week59.12 more than two years after the week that the penalty was59.13 determined. A determination of denialineligibility setting out 59.14 the weeks the applicant shall be ineligible shall be sent to the 59.15 individualapplicant by mail or electronic transmission. Unless 59.16 an appeal is filed within 30 calendar days of sending, the 59.17 determination shall be final. Proceeding on the appeal shall be 59.18 conducted in accordance with section 268.105. 59.19 Sec. 39. [TAX RATE COMPUTATION.] 59.20 Notwithstanding any provision of Minnesota Statutes, 59.21 chapter 268, to the contrary, the commissioner may compute, to 59.22 the nearest 1/100 of a percent, any unemployment tax rate 59.23 assigned on or after July 1, 2005, regardless of the year or 59.24 portion of any year for which the tax rate is applicable. 59.25 Sec. 40. [REVISOR'S INSTRUCTION.] 59.26 (a) The revisor of statutes shall change the name of the 59.27 Department of Economic Security to the Department of Employment 59.28 and Economic Development in Minnesota Statutes and Minnesota 59.29 Rules. 59.30 (b) The revisor of statutes shall change the headnote for 59.31 Minnesota Statutes, section 268.095 from "DISQUALIFICATION 59.32 PROVISIONS" to "DISQUALIFICATION BECAUSE OF A QUIT OR DISCHARGE." 59.33 (c) The revisor of statutes shall change the headnote for 59.34 Minnesota Statutes, section 268.101 from "DETERMINATIONS ON 59.35 DISQUALIFICATION AND ELIGIBILITY" to "DETERMINATIONS ON ISSUES 59.36 OF DISQUALIFICATION AND ELIGIBILITY." 60.1 (d) The revisor of statutes shall renumber Minnesota 60.2 Statutes, section 268.095, subdivision 8, as section 268.085, 60.3 subdivision 13c, and correct cross-references accordingly. 60.4 (e) The revisor of statutes shall change the term "court 60.5 order" to "district court order" wherever the term appears in 60.6 Minnesota Statutes, sections 268.01 to 268.83. 60.7 Sec. 41. [REPEALER.] 60.8 (a) Minnesota Rules, parts 3310.2926; 3310.5000; 3315.0910, 60.9 subpart 9; 3315.1301; 3315.1315, subparts 1, 2, and 3; 60.10 3315.1650; and 3315.2210, are repealed. 60.11 (b) Minnesota Statutes 2004, section 268.086, subdivision 60.12 4, is repealed. 60.13 (c) Laws 1997, chapter 66, section 64, subdivision 1, is 60.14 repealed. 60.15 Sec. 42. [EFFECTIVE DATE.] 60.16 Sections 1 to 32, 34 to 39, and 41 are effective July 1, 60.17 2005. Section 40 is effective the day following final enactment.