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SF 1498

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/14/2023 01:08pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to unemployment; modifying penalties for a misrepresentation
overpayment; amending Minnesota Statutes 2022, sections 268.069, subdivision
1; 268.085, subdivision 2; 268.101, subdivisions 1, 2; 268.133; 268.18; repealing
Minnesota Statutes 2022, section 268.183.

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

Section 1.

Minnesota Statutes 2022, section 268.069, subdivision 1, is amended to read:


Subdivision 1.

Requirements.

The commissioner must pay unemployment benefits
from the trust fund to an applicant who has met each of the following requirements:

(1) the applicant has filed an application for unemployment benefits and established a
benefit account in accordance with section 268.07;

(2) the applicant has not been held ineligible for unemployment benefits under section
268.095 because of a quit or discharge;

(3) the applicant has met all of the ongoing eligibility requirements under section 268.085;new text begin
and
new text end

(4) the applicant does not have an outstanding overpayment of unemployment benefits,
including any penalties deleted text beginor interest; anddeleted text endnew text begin.
new text end

deleted text begin (5) the applicant has not been held ineligible for unemployment benefits under section
268.183.
deleted text end

Sec. 2.

Minnesota Statutes 2022, section 268.085, subdivision 2, is amended to read:


Subd. 2.

Not eligible.

An applicant is ineligible for unemployment benefits for any week:

(1) that occurs before the effective date of a benefit account;

deleted text begin (2) that the applicant, at any time during the week, has an outstanding misrepresentation
overpayment balance under section 268.18, subdivision 2, including any penalties and
interest;
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end that the applicant is incarcerated or performing court-ordered community service.
The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day
the applicant is incarcerated or performing court-ordered community service;

deleted text begin (4)deleted text endnew text begin (3)new text end that the applicant fails or refuses to provide information on an issue of ineligibility
required under section 268.101;

deleted text begin (5)deleted text endnew text begin (4)new text end that the applicant is performing services 32 hours or more, in employment, covered
employment, noncovered employment, volunteer work, or self-employment regardless of
the amount of any earnings; or

deleted text begin (6)deleted text endnew text begin (5)new text end with respect to which the applicant has filed an application for unemployment
benefits under any federal law or the law of any other state. If the appropriate agency finally
determines that the applicant is not entitled to establish a benefit account under federal law
or the law of any other state, this clause does not apply.

Sec. 3.

Minnesota Statutes 2022, section 268.101, subdivision 1, is amended to read:


Subdivision 1.

Notification.

(a) In an application for unemployment benefits, each
applicant must report the name and the reason for no longer working for the applicant's
most recent employer, as well as the names of all employers and the reasons for no longer
working for all employers during the six calendar months before the date of the application.
If the reason reported for no longer working for any of those employers is other than a layoff
because of lack of work, that raises an issue of ineligibility that the department must
determine. An applicant must report any offers of employment refused during the eight
calendar weeks before the date of the application for unemployment benefits and the name
of the employer that made the offer. An applicant's failure to report the name of an employer,
or giving an incorrect reason for no longer working for an employer, or failing to disclose
an offer of employment that was refused, is a violation of section deleted text begin268.183deleted text endnew text begin 268.18new text end.

In an application, the applicant must also provide all information necessary to determine
the applicant's eligibility for unemployment benefits under this chapter. If the applicant fails
or refuses to provide information necessary to determine the applicant's eligibility for
unemployment benefits, the applicant is ineligible for unemployment benefits under section
268.085, subdivision 2, until the applicant provides this required information.

(b) Upon establishment of a benefit account under section 268.07, subdivision 2, the
commissioner must notify, by mail or electronic transmission, all employers the applicant
was required to report on the application and all base period employers and determined
successors to those employers under section 268.051, subdivision 4, in order to provide the
employer an opportunity to raise, in a manner and format prescribed by the commissioner,
any issue of ineligibility. An employer must be informed of the effect that failure to raise
an issue of ineligibility as a result of a quit or discharge of the applicant, as provided for
under subdivision 2, paragraph (b), may have on the employer under section 268.047.

(c) Each applicant must report any employment, and loss of employment, and offers of
employment refused, during those weeks the applicant filed continued requests for
unemployment benefits under section 268.0865. Each applicant who stops filing continued
requests during the benefit year and later begins filing continued requests during that same
benefit year must report the name of any employer the applicant worked for during the
period between the filing of continued requests and the reason the applicant stopped working
for the employer. The applicant must report any offers of employment refused during the
period between the filing of continued requests for unemployment benefits. Those employers
from which the applicant has reported a loss of employment under this paragraph must be
notified by mail or electronic transmission and provided an opportunity to raise, in a manner
prescribed by the commissioner, any issue of ineligibility. An employer must be informed
of the effect that failure to raise an issue of ineligibility as a result of a quit or a discharge
of the applicant may have on the employer under section 268.047.

(d) The purpose for requiring the applicant to report the name of employers and the
reason for no longer working for those employers, or offers of employment refused, under
paragraphs (a) and (c) is for the commissioner to obtain information from an applicant
raising all issues that may result in the applicant being ineligible for unemployment benefits
under section 268.095, because of a quit or discharge, or the applicant being ineligible for
unemployment benefits under section 268.085, subdivision 13c. If the reason given by the
applicant for no longer working for an employer is other than a layoff because of lack of
work, that raises an issue of ineligibility and the applicant is required, as part of the
determination process under subdivision 2, paragraph (a), to state all the facts about the
cause for no longer working for the employer, if known. If the applicant fails or refuses to
provide any required information, the applicant is ineligible for unemployment benefits
under section 268.085, subdivision 2, until the applicant provides this required information.

Sec. 4.

Minnesota Statutes 2022, section 268.101, subdivision 2, is amended to read:


Subd. 2.

Determination.

(a) The commissioner must determine any issue of ineligibility
raised by information required from an applicant under subdivision 1, paragraph (a) or (c),
and send to the applicant and any involved employer, by mail or electronic transmission, a
document titled a determination of eligibility or a determination of ineligibility, as is
appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge
of the applicant must state the effect on the employer under section 268.047. A determination
must be made in accordance with this paragraph even if a notified employer has not raised
the issue of ineligibility.

(b) The commissioner must determine any issue of ineligibility raised by an employer
and send to the applicant and that employer, by mail or electronic transmission, a document
titled a determination of eligibility or a determination of ineligibility as is appropriate. The
determination on an issue of ineligibility as a result of a quit or discharge of the applicant
must state the effect on the employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer before the application for unemployment
benefits;

(2) did not employ the applicant during the six calendar months before the application
for unemployment benefits; and

(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant
within ten calendar days of notification under subdivision 1, paragraph (b);

then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
weeks following the week that the issue of ineligibility as a result of a quit or discharge of
the applicant was raised by the employer.

A communication from an employer must specifically set out why the applicant should
be determined ineligible for unemployment benefits for that communication to be considered
to have raised an issue of ineligibility for purposes of this section. A statement of "protest"
or a similar term without more information does not constitute raising an issue of ineligibility
for purposes of this section.

(c) Subject to section 268.031, an issue of ineligibility is determined based upon that
information required of an applicant, any information that may be obtained from an applicant
or employer, and information from any other source.

(d) Regardless of the requirements of this subdivision, the commissioner is not required
to send to an applicant a copy of the determination where the applicant has satisfied a period
of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.

(e) The department is authorized to issue a determination on an issue of ineligibility
within 24 months from the establishment of a benefit account based upon information from
any source, even if the issue of ineligibility was not raised by the applicant or an employer.

deleted text begin If an applicant obtained unemployment benefits through misrepresentation under section
268.18, subdivision 2, the department is authorized to issue a determination of ineligibility
within 48 months of the establishment of the benefit account.
deleted text end

If the department has filed an intervention in a worker's compensation matter under
section 176.361, the department is authorized to issue a determination of ineligibility within
48 months of the establishment of the benefit account.

(f) A determination of eligibility or determination of ineligibility is final unless an appeal
is filed by the applicant or employer within 20 calendar days after sending. The determination
must contain a prominent statement indicating the consequences of not appealing.
Proceedings on the appeal are conducted in accordance with section 268.105.

(g) An issue of ineligibility required to be determined under this section includes any
question regarding the denial or allowing of unemployment benefits under this chapter
except for issues under section 268.07. An issue of ineligibility for purposes of this section
includes any question of effect on an employer under section 268.047.

Sec. 5.

Minnesota Statutes 2022, section 268.133, is amended to read:


268.133 UNEMPLOYMENT BENEFITS WHILE IN ENTREPRENEURIAL
TRAINING.

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:

(1) the deductible earnings provisions in section 268.085, subdivision 5; and

(2) the 32 hours of work limitation in section 268.085, subdivision 2, clause deleted text begin(5)deleted text endnew text begin (4)new text end. A
maximum of 500 applicants may receive a waiver at any given time.

Sec. 6.

Minnesota Statutes 2022, section 268.18, is amended to read:


268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.

Subdivision 1.

Repaying an overpayment.

(a) Any applicant who (1) because of a
determination or amended determination issued under section 268.07 or 268.101, or any
other section of this chapter, or (2) because of an unemployment law judge's decision under
section 268.105, has received any unemployment benefits that the applicant was held not
entitled to, is overpaid the benefits, and must promptly repay the benefits to the trust fund.

(b) If the applicant fails to repay the unemployment benefits overpaid, including any
penalty deleted text beginand interestdeleted text end assessed under deleted text beginsubdivisionsdeleted text endnew text begin subdivisionnew text end 2 deleted text beginand 2bdeleted text end, the total due may be
collected by the methods allowed under state and federal law.

Subd. 2.

Overpayment because of misrepresentation.

(a) An applicant has committed
misrepresentation if the applicant is overpaid unemployment benefits by making deleted text beginadeleted text endnew text begin an
intentional
new text end false statement or representation deleted text beginwithoutdeleted text endnew text begin in an effort to fraudulently collect
benefits. Overpayment because of misrepresentation does not occur where there is
unintentional mistake or
new text end a good faith belief as to the correctness of the statement or
representation.

new text begin (b) In reviewing the facts of an alleged misrepresentation, the department shall consider
any literacy, language, disability, and mental health barriers of the applicant.
new text endAfter the
discovery of facts indicating misrepresentation, the commissioner must issue a determination
of overpayment penalty assessing a penalty equal to deleted text begin40deleted text endnew text begin 15new text end percent of the amount overpaid.
deleted text begin This penalty is in addition to penalties under section 268.183.
deleted text end

deleted text begin (b)deleted text endnew text begin (c)new text end Unless the applicant files an appeal within deleted text begin20deleted text endnew text begin 60new text end calendar days after the sending
of a determination of overpayment penalty to the applicant by mail or electronic transmission,
the determination is final. Proceedings on the appeal are conducted in accordance with
section 268.105.

deleted text begin (c)deleted text endnew text begin (d)new text end A determination of overpayment penalty must state the methods of collection the
commissioner may use to recover the overpaymentdeleted text begin,deleted text endnew text begin andnew text end penaltydeleted text begin, and interestdeleted text end assessed.
Money received in repayment of overpaid unemployment benefitsdeleted text begin,deleted text endnew text begin andnew text end penaltiesdeleted text begin, and interestdeleted text end
is first applied to the benefits overpaid,new text begin andnew text end then to the penalty amount duedeleted text begin, then to any
interest due
deleted text end. 62.5 percent of the payments made toward the penalty are credited to the
contingent account and 37.5 percent credited to the trust fund.

deleted text begin (d)deleted text endnew text begin (e)new text end The department is authorized to issue a determination of overpayment penalty
under this subdivision within 48 months of the establishment of the benefit account upon
which the unemployment benefits were obtained through misrepresentation.

deleted text begin Subd. 2b. deleted text end

deleted text begin Interest. deleted text end

deleted text begin On any unemployment benefits obtained by misrepresentation, and
any penalty amounts assessed under subdivision 2, the commissioner must assess interest
on any amount that remains unpaid beginning 30 calendar days after the date of a
determination of overpayment penalty. Interest is assessed at the rate of one percent per
month or any part of a month. A determination of overpayment penalty must state that
interest will be assessed. Interest is not assessed on unpaid interest. Interest collected under
this subdivision is credited to the trust fund.
deleted text end

Subd. 3a.

Offset of unemployment benefits.

(a) The commissioner may offset from
any future unemployment benefits otherwise payable the amount of deleted text begina nonmisrepresentationdeleted text endnew text begin
an
new text end overpayment. Except when the deleted text beginnonmisrepresentationdeleted text end overpayment resulted because the
applicant failed to report deductible earnings or deductible or benefit delaying payments,
no single offset may exceed 50 percent of the amount of the payment from which the offset
is made.

(b) Overpayments of unemployment benefits under a federal program, may be recovered
by offset from future benefits otherwise payable.

(c) If an applicant has been overpaid unemployment benefits under the law of another
state, the commissioner may offset from future benefits otherwise payable the amount of
overpayment.

(d) deleted text beginNonmisrepresentationdeleted text end Unemployment benefit overpayments may be recovered by
offset from future benefits otherwise payable under a federal program.

Subd. 4.

Cancellation of overpayments.

(a) If unemployment benefits overpaid deleted text beginfor
reasons other than misrepresentation
deleted text end are not repaid or offset from subsequent benefits within
six years after the date of the determination or decision holding the applicant overpaid, the
commissioner must cancel the overpayment balance, and no administrative or legal
proceedings may be used to enforce collection of those amounts.

deleted text begin (b) If unemployment benefits overpaid because of misrepresentation including penalties
and interest are not repaid within ten years after the date of the determination of overpayment
penalty, the commissioner must cancel the overpayment balance and any penalties and
interest due, and no administrative or legal proceeding may be used to enforce collection
of those amounts.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end The commissioner may cancel at any time any overpayment, including penalties
deleted text begin and interestdeleted text end, that the commissioner determines is uncollectible because of death or
bankruptcy.

Subd. 4a.

Court fees; collection fees.

(a) If the department is required to pay any court
fees in an attempt to enforce collection of overpaid unemployment benefitsdeleted text begin,deleted text endnew text begin ornew text end penaltiesdeleted text begin,
or interest
deleted text end, the amount of the court fees may be added to the total amount due.

(b) If an applicant who has been overpaid unemployment benefits because of
misrepresentation seeks to have any portion of the debt discharged under the federal
bankruptcy code, and the department files an objection in bankruptcy court to the discharge,
the cost of any court fees may be added to the debt if the bankruptcy court does not discharge
the debt.

(c) If the Internal Revenue Service assesses the department a fee for offsetting from a
federal tax refund the amount of any overpayment, including penalties deleted text beginand interestdeleted text end, the
amount of the fee may be added to the total amount due. The offset amount must be put in
the trust fund and that amount credited to the total amount due from the applicant.

Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of
unemployment benefits, including any penalties deleted text beginand interestdeleted text end, is not an election of a method
of recovery.

(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter
under section 176.361 is not an election of a remedy and does not prevent the commissioner
from determining an applicant ineligible for unemployment benefits.

Subd. 6.

Collection of overpayments.

(a) The commissioner may not compromise the
amount of any overpaid unemployment benefits including penalties deleted text beginand interestdeleted text end.

(b) The commissioner has discretion regarding the recovery of any overpayment deleted text beginfor
reasons other than misrepresentation
deleted text end. Regardless of any law to the contrary, the commissioner
is not required to refer any overpayment deleted text beginfor reasons other than misrepresentationdeleted text end to a public
or private collection agency, including agencies of this state.

(c) Amounts overpaid deleted text beginfor reasons other than misrepresentationdeleted text end are not considered a
"debt" to the state of Minnesota for purposes of any reporting requirements to the
commissioner of management and budget.

(d) A pending appeal under section 268.105 does not suspend the assessment of deleted text begininterest,deleted text end
penaltiesdeleted text begin,deleted text end or collection of an overpayment.

(e) Section 16A.626 applies to the repayment by an applicant of any overpaymentdeleted text begin,deleted text endnew text begin ornew text end
penaltydeleted text begin, or interestdeleted text end.

Sec. 7. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2022, section 268.183, new text end new text begin is repealed.
new text end