SF 924

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/24/2013 08:38am

A bill for an act
relating to unemployment insurance; regulating the shared work program
to conform to federal law; providing for a program converting layoffs into
businesses; amending Minnesota Statutes 2012, sections 116L.17, subdivision
4, by adding a subdivision; 268.051, subdivision 5; 268.07, subdivision 3b;
268.136, subdivisions 1, 2, 3, 4, 5, by adding subdivisions; 268.23; Laws 2012,
chapter 201, article 1, section 3; proposing coding for new law in Minnesota
Statutes, chapter 268.

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

ARTICLE 1

FEDERAL CONFORMITY

Section 1.

Minnesota Statutes 2012, section 268.136, subdivision 1, is amended to read:

Subdivision 1.

Shared work deleted text begin agreement deleted text end new text begin plan new text end requirements.

deleted text begin (a) deleted text end An employer
may submit a proposed shared work plan for an employee group to the commissioner
for approval in a manner and format set by the commissioner. The proposed deleted text begin agreement
deleted text end new text begin shared work plan new text end must include:

(1) a certified statement that the normal weekly hours of work of all of the proposed
participating employees were full time new text begin or regular part time new text end but are now reduced, or will be
reduced, with a corresponding reduction in pay, in order to prevent layoffs;

(2) the name and Social Security number of each participating employee;

(3) new text begin the number of layoffs that would have occurred absent the employer's ability to
participate in a shared work plan;
new text end

new text begin (4) new text end a certified statement deleted text begin of when deleted text end new text begin that new text end each participating employee was first hired by
the employer deleted text begin , which must be deleted text end at least one year before the proposed deleted text begin agreement deleted text end new text begin shared work
plan new text end is submitted new text begin and is not a seasonal, temporary, or intermittent worker new text end ;

deleted text begin (4) deleted text end new text begin (5) new text end the hours of work each participating employee will work each week for the
duration of the deleted text begin agreement deleted text end new text begin shared work plan new text end , which must be at least deleted text begin 20 deleted text end new text begin one-half the normal
weekly new text end hours deleted text begin and deleted text end new text begin but new text end no more than 32 hours per week, except that the deleted text begin agreement deleted text end new text begin plan
new text end may provide for a uniform vacation shutdown of up to two weeks;

new text begin (6) a certified statement that any health benefits and any pension benefits provided
by the employer to participating employees will continue to be provided under the same
terms and conditions as though the participating employees' hours of work each week had
not been reduced;
new text end

new text begin (7) a certified statement that the terms and implementation of the shared work plan is
consistent with the employer's obligations under state and federal law;
new text end

new text begin (8) an acknowledgement that the employer understands that unemployment benefits
paid under a shared work plan will be used in computing the future tax rate of a taxpaying
employer or charged to the reimbursable account of a nonprofit or government employer;
new text end

deleted text begin (5) deleted text end new text begin (9) new text end the proposed duration of the deleted text begin agreement deleted text end new text begin shared work plan new text end , which must be
at least two months and not more than one year, although deleted text begin an agreement deleted text end new text begin a plan new text end may be
extended for up to an additional year upon approval of the commissioner;

deleted text begin (6) deleted text end new text begin (10) new text end a starting date beginning on a Sunday at least 15 calendar days after the date
the proposed deleted text begin agreement deleted text end new text begin shared work plan new text end is submitted; and

deleted text begin (7) deleted text end new text begin (11) new text end a signature of an owner or officer of the employer who is listed as an owner
or officer on the employer's account under section 268.045.

deleted text begin (b) An agreement may not be approved for an employer that:
deleted text end

deleted text begin (1) has any unemployment tax or reimbursements, including any interest, fees,
or penalties, due but unpaid; or
deleted text end

deleted text begin (2) has the maximum experience rating provided for under section 268.051,
subdivision 3.
deleted text end

Sec. 2.

Minnesota Statutes 2012, section 268.136, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Agreement deleted text end new text begin Approval new text end by commissioner.

(a) The commissioner must
promptly review a proposed deleted text begin agreement deleted text end new text begin shared work plan new text end and notify the employer, by mail
or electronic transmission, within 15 days of receipt, whether the proposal satisfies the
requirements of this section new text begin and has been approved new text end . If the proposal does not comply
with this section, the commissioner must specifically state why the proposal is not in
compliance. If a proposed deleted text begin agreement complies with this section deleted text end new text begin shared work plan has
been approved new text end , it must be implemented according to its terms.

(b) The commissioner may deleted text begin reject an agreement deleted text end new text begin not approve a proposed shared work
plan new text end if the commissioner has cause to believe the proposal deleted text begin is not deleted text end new text begin was new text end submitted for deleted text begin the deleted text end new text begin a
new text end purpose deleted text begin of deleted text end new text begin other than new text end preventing layoffs due to lack of work.

new text begin (c) The commissioner may not approve a proposed shared work plan if the employer
has any unemployment tax or reimbursements, including any interest, fees, or penalties,
due but unpaid.
new text end

new text begin (d) A shared work plan that has been approved by the commissioner is considered
a contract that is binding on the employer and the department. This contract may be
canceled or modified under subdivision 5.
new text end

Sec. 3.

Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Notice to participating employee. new text end

new text begin The employer must provide written
notification to each participating employee that the employer has submitted a proposed
shared work plan. The notification must be provided to the employee no later than at
the time the commissioner notifies the employer that a proposed shared work plan has
been approved. The notification must inform the employee of the proposed terms of the
shared work plan along with notice to the employee of the employee's right to apply for
unemployment benefits.
new text end

Sec. 4.

Minnesota Statutes 2012, section 268.136, subdivision 3, is amended to read:

Subd. 3.

Applicant requirements.

(a) An applicant, in order to be paid
unemployment benefits under this section, must meet all of the requirements under section
268.069, subdivision 1. The following new text begin provisions of section 268.085 new text end do not apply to an
applicant deleted text begin under this section deleted text end new text begin in an approved shared work plan new text end :

(1) deleted text begin the deleted text end deductible earnings deleted text begin provision of section 268.085, deleted text end new text begin under new text end subdivision 5;

(2) the restriction under deleted text begin section 268.085, deleted text end subdivision deleted text begin 6 deleted text end new text begin 2, clause (6) new text end , if the applicant
works exactly 32 hours in a week;

(3) the requirement of being available for suitable employment new text begin under subdivision 1,
clause (4), but only if the applicant is (i) available for the normal hours of work per week
with the shared work employer, or (ii) in a training program when not working new text end ; and

(4) the requirement of actively seeking suitable employment new text begin under subdivision
1, clause (5) new text end .

(b) An applicant is ineligible for unemployment benefits under this section for
any week, if deleted text begin :
deleted text end

deleted text begin (1) deleted text end the applicant works more than 32 hours in a week in employment with one or
more employer deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (2) the applicant works more hours in a week for the shared work employer than
the reduced weekly hours provided for in the agreement.
deleted text end

Sec. 5.

Minnesota Statutes 2012, section 268.136, subdivision 4, is amended to read:

Subd. 4.

Amount of unemployment benefits available.

new text begin (a) new text end The weekly benefit
amount and maximum amount of unemployment benefits available are computed
according to section 268.07, except that deleted text begin an applicant is paid deleted text end new text begin the amount of benefits
available is new text end a reduced amount in direct proportion to the reduction in hours new text begin set out in the
shared work plan new text end from the normal weekly hours.

new text begin (b) Regardless of paragraph (a), if the applicant works more hours in a week for the
shared work employer than the reduced weekly hours provided for in the shared work
plan, the amount of unemployment benefits available is a reduced amount in direct
proportion to the reduction in hours actually worked from the normal weekly hours.
new text end

new text begin (c) If an applicant works fewer hours in a week for the shared work employer than
set out in the shared work plan, the amount of unemployment benefits are available in
accordance with paragraph (a).
new text end

Sec. 6.

Minnesota Statutes 2012, section 268.136, subdivision 5, is amended to read:

Subd. 5.

Cancellation new text begin ; modification new text end .

(a) An employer may cancel deleted text begin an agreement deleted text end new text begin a
shared work plan new text end at any time upon seven calendar days' notice to the commissioner in a
manner and format prescribed by the commissioner. The cancellation must be signed by
an owner or officer of the employer.

new text begin (b) An employer may request that the commissioner allow modification of the shared
work plan as to the hours of work each participating employee will work each week. The
request must be sent in a manner and form prescribed by the commissioner. The request
must be signed by an owner or officer of the employer. The commissioner must notify the
employer as soon as possible if the modification is allowed.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end An employer that cancels deleted text begin an agreement deleted text end new text begin or requests modification of a shared
work plan new text end must provide written notice to each participating employee deleted text begin in the group deleted text end of the
cancellation new text begin or requested modification new text end at the time notice is sent to the commissioner.

deleted text begin (c) deleted text end new text begin (d) new text end If an employer cancels deleted text begin an agreement deleted text end new text begin a shared work plan new text end before the expiration
date provided for in subdivision 1, a new deleted text begin agreement deleted text end new text begin shared work plan new text end may not be deleted text begin entered
into with deleted text end new text begin approved for new text end that employer under this section for at least 60 calendar days.

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner may immediately cancel any deleted text begin agreement deleted text end new text begin shared work plan
new text end if the commissioner determines the deleted text begin agreement deleted text end new text begin plan new text end was based upon false information or
the employer deleted text begin is in breach deleted text end new text begin has failed to adhere to the terms new text end of the deleted text begin contract deleted text end new text begin shared work plan new text end .
The commissioner must immediately send written notice of cancellation to the employer.
An employer that receives notice of cancellation deleted text begin by the commissioner deleted text end must provide
written notice to each participating deleted text begin employer in the group deleted text end new text begin employee new text end of the cancellation.

Sec. 7.

Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Federal law. new text end

new text begin This section is enacted to comply with the "short time
compensation" requirements of the Federal Unemployment Tax Act, United States Code,
title 26, section 3306 (v).
new text end

Sec. 8.

Minnesota Statutes 2012, section 268.23, is amended to read:

268.23 SEVERABLE.

deleted text begin In the event that deleted text end new text begin If new text end the United States Department of Labor determines that any
provision of the Minnesota Unemployment Insurance Law deleted text begin , or any other provision of
Minnesota Statutes relating to the unemployment insurance program, deleted text end is not in conformity
with new text begin , or is inconsistent with, new text end the requirements of federal law, the provision has no force
or effect deleted text begin ; but deleted text end new text begin . new text end If only a portion of the provision, or the application to any person or
circumstances, is deleted text begin held deleted text end new text begin determined new text end not in conformity, new text begin or determined inconsistent, new text end the
remainder of the provision and the application of the provision to other persons or
circumstances are not affected.

Sec. 9. new text begin COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK
FUNDS.
new text end

new text begin The commissioner of employment and economic development is authorized to
request federal funding for Minnesota's "shared work" unemployment benefit program
under Minnesota Statutes, section 268.136. Federal funding is available under the Middle
Class Tax Relief and Job Creation Act of 2012, Public Law 112-96. Federal funding
provided under that act for the "shared work" program must be immediately deposited
in the Minnesota Unemployment Insurance Trust Fund. The exception under Minnesota
Statutes, section 268.047, subdivision 2, clause (10), does not apply to the federal money.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this article is effective for shared work plans approved
on or after July 1, 2013.
new text end

ARTICLE 2

POLICY

Section 1.

Minnesota Statutes 2012, section 116L.17, subdivision 4, is amended to read:

Subd. 4.

Use of funds.

Funds granted by the board under this section may be used
for any combination of the following, except as otherwise provided in this section:

(1) employment transition services such as developing readjustment plans for
individuals; outreach and intake; early readjustment; job or career counseling; testing;
orientation; assessment of skills and aptitudes; provision of occupational and labor market
information; job placement assistance; job search; job development; prelayoff assistance;
relocation assistance; deleted text begin and deleted text end programs provided in cooperation with employers or labor
organizations to provide early intervention in the event of plant closings or substantial
layoffs; new text begin and entrepreneurial training and business consulting;
new text end

(2) support services, including assistance to help the participant relocate to employ
existing skills; out-of-area job search assistance; family care assistance, including child
care; commuting assistance; emergency housing and rental assistance; counseling
assistance, including personal and financial; health care; emergency health assistance;
emergency financial assistance; work-related tools and clothing; and other appropriate
support services that enable a person to participate in an employment and training program
with the goal of reemployment;

(3) specific, short-term training to help the participant enhance current skills
in a similar occupation or industry; entrepreneurial training, customized training, or
on-the-job training; basic and remedial education to enhance current skills; and literacy
and work-related English training for non-English speakers; and

(4) long-term training in a new occupation or industry, including occupational skills
training or customized training in an accredited program recognized by one or more
relevant industries. Long-term training shall only be provided to dislocated workers
whose skills are obsolete and who have no other transferable skills likely to result in
employment at a comparable wage rate. Training shall only be provided for occupations or
industries with reasonable expectations of job availability based on the service provider's
thorough assessment of local labor market information where the individual currently
resides or is willing to relocate. This clause shall not restrict training in personal services
or other such industries.

Sec. 2.

Minnesota Statutes 2012, section 116L.17, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Converting layoffs into Minnesota businesses (CLIMB). new text end

new text begin Converting
layoffs into Minnesota businesses (CLIMB) is created to assist dislocated workers in
starting or growing a business. CLIMB must offer entrepreneurial training, business
consulting, and technical assistance to dislocated workers seeking to start or grow a
business. The commissioner, in cooperation with local workforce councils, must provide
the assistance in this subdivision by:
new text end

new text begin (1) encouraging closer ties between the Small Business Development Center
network, Small Business Development Center training providers; and workforce centers,
as well as other dislocated worker program service providers; and
new text end

new text begin (2) eliminating grantee performance data disincentives that would otherwise prevent
enrollment of dislocated workers in entrepreneurship-related training.
new text end

Sec. 3.

Minnesota Statutes 2012, section 268.051, subdivision 5, is amended to read:

Subd. 5.

Tax rate for new employers.

(a) Each new taxpaying employer that does
not qualify for an experience rating under subdivision 3, except new employers in a high
experience rating industry, must be assigned, for a calendar year, a tax rate the higher of
(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing
the total amount of unemployment benefits paid all applicants during the 48 calendar
months ending on June 30 of the prior calendar year by the total taxable wages of all
taxpaying employers during the same period, plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).

(b) Each new taxpaying employer in a high experience rating industry that does not
qualify for an experience rating under subdivision 3, must be assigned, for a calendar year,
a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed
to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits
paid to all applicants from high experience rating industry employers during the 48
calendar months ending on June 30 of the prior calendar year by the total taxable wages
of all high experience rating industry employers during the same period, to a maximum
provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).

(c) An employer is considered to be in a high experience rating industry if:

(1) the employer is engaged in residential, commercial, or industrial construction,
including general contractors;

(2) the employer is engaged in sand, gravel, or limestone mining;

(3) the employer is engaged in the manufacturing of concrete, concrete products,
or asphalt; or

(4) the employer is engaged in road building, repair, or resurfacing, including bridge
and tunnels and residential and commercial driveways and parking lots.

(d) Regardless of any law to the contrary, a taxpaying employer must be assigned a
tax rate under this subdivision if deleted text begin :
deleted text end

deleted text begin (1) deleted text end the employer deleted text begin registers for a tax account under section 268.042 and for each of
the five calendar quarters after registering files a "no wages paid" report on wage detail
under section 268.044; or deleted text end new text begin had no taxable wages during the experience rating period under
subdivision 3.
new text end

deleted text begin (2) the employer has filed 14 consecutive quarterly "no wages paid" reports on
wage detail under section 268.044.
deleted text end

(e) The commissioner must send to the new employer, by mail or electronic
transmission, a determination of tax rate. An employer may appeal the determination of
tax rate in accordance with the procedures in subdivision 6, paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2012, section 268.07, subdivision 3b, is amended to read:

Subd. 3b.

Limitations on applications and benefit accounts.

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

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

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

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

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

A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.

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

Sec. 5.

new text begin [268.133] UNEMPLOYMENT BENEFITS WHILE IN
ENTREPRENEURIAL TRAINING.
new text end

new text begin Unemployment benefits are available to dislocated workers participating in the
converting layoffs into Minnesota businesses (CLIMB) program under section 116L.17,
subdivision 11. Applicants participating in CLIMB are considered in reemployment
assistance training under section 268.035, subdivision 21c. All requirements under section
268.069, subdivision 1, must be met, except the commissioner may waive:
new text end

new text begin (1) the earnings deductible provisions in section 268.085, subdivision 5; and
new text end

new text begin (2) the 32 hours of work limitation in section 268.085, subdivision 2, clause (6). A
maximum of 500 applicants may receive a waiver at any given time.
new text end

Sec. 6.

Laws 2012, chapter 201, article 1, section 3, the effective date, is amended to
read:

EFFECTIVE DATE.

This section is effective July 1, 2012, except the amendments
to paragraph (d) are effective for penalties deleted text begin imposed deleted text end new text begin credited new text end on or after July 1, 2013.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2013.
new text end