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Minnesota Legislature

Office of the Revisor of Statutes

SF 1549

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/22/2018 03:00pm

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

Current Version - 1st Engrossment

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A bill for an act
relating to unemployment insurance; adopting recommendations of the
Unemployment Insurance Advisory Council; amending Minnesota Statutes 2016,
sections 268.031, subdivision 1; 268.035, subdivisions 15, 20, 21d, 23, 30; 268.042,
subdivision 1; 268.046, subdivision 3; 268.051, subdivisions 1, 9; 268.065,
subdivision 2; 268.07, subdivisions 2, 3a, 3b; 268.085, subdivisions 1, 6, 7, 12,
13, 13a; 268.0865, subdivision 5; 268.095, subdivisions 1, 2, 5; 268.101,
subdivision 2; 268.105, subdivision 2; 268.131; 268.18, subdivisions 2, 2b, 5;
268.182; 268.184; 268.194, subdivisions 1, 4; repealing Laws 2005, chapter 112,
article 1, section 14.

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

ARTICLE 1

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
POLICY

Section 1.

Minnesota Statutes 2016, section 268.046, subdivision 3, is amended to read:


Subd. 3.

Penalties; application.

(a) Any person that violates the requirements of this
section and any taxpaying employer that violates subdivision 1, paragraph (b), or any
nonprofit or government employer that violates subdivision 2, paragraph (b), is subject to
the penalties under section 268.184, subdivision 1a. Penalties are credited to the trust fund.

(b) Section 268.051, subdivision 4, does not apply to contracts under this section. This
section does not limit or prevent the application of section 268.051, subdivision 4, to any
other transactions or acquisitions involving the taxpaying employer. This section does not
limit or prevent the application of section 268.051, subdivision 4a.

(c) An assignment of an account upon the execution of a contract under this section and
a termination of a contract with the corresponding assignment of the account is not deleted text beginconsidereddeleted text end
a separation from employment of any worker covered by the contract. Nothing under this
subdivision causes the person to be liable for any amounts past due under this chapter from
the taxpaying employer or the nonprofit or government employer.

(d) deleted text beginThis section applies to, but is not limited to, persons registered under section 79.255,
but does not apply to persons that obtain
deleted text end An exemption from registration under section
79.255, subdivision 9new text begin, does not determine the application of this sectionnew text end.

Sec. 2.

Minnesota Statutes 2016, section 268.065, subdivision 2, is amended to read:


Subd. 2.

Employee leasing company, professional employer organization, or similar
person.

(a) A person whose work force consists of 50 percent or more of workers provided
by an employee leasing company, professional employer organization, or similar person
for a fee, is jointly and severally liable for the unpaid amounts that are due under this chapter
or section 116L.20 on the wages paid on the contract with the employee leasing company,
professional employer organization, or similar person.

(b) deleted text beginThis subdivision applies to, but is not limited to, persons registered under section
79.255, but does not apply to agreements with persons that obtain
deleted text end An exemption from
registration under section 79.255, subdivision 9new text begin, does not determine the application of this
section
new text end.

Sec. 3.

Minnesota Statutes 2016, section 268.085, subdivision 13, is amended to read:


Subd. 13.

Suspension from employment.

(a) An applicant who has been suspended
from employment without pay for 30 calendar days or less, as a result of employment
misconduct new text beginor aggravated employment misconduct new text endas defined under section 268.095,
deleted text begin subdivision 6,deleted text end
is ineligible for unemployment benefits beginning the Sunday of the week
that the applicant was suspended and continuing for the duration of the suspension.

(b) A suspension from employment without paynew text begin that is of indefinite duration or isnew text end for
more than 30 calendar days is considerednew text begin, at the time the suspension begins,new text end a discharge
from employment deleted text beginunderdeleted text endnew text begin subject tonew text end section 268.095deleted text begin, subdivision 5deleted text end.

(c) A suspension from employment with pay, regardless of duration, is not deleted text beginconsidereddeleted text end
a separation from employment and the applicant is ineligible for unemployment benefits
for the duration of the suspension with pay.

Sec. 4.

Minnesota Statutes 2016, section 268.095, subdivision 5, is amended to read:


Subd. 5.

Discharge defined.

(a) A discharge from employment occurs when any words
or actions by an employer would lead a reasonable employee to believe that the employer
will no longer allow the employee to work for the employer in any capacity. A layoff because
of lack of work is a discharge.

new text begin (b) new text end A suspension from employment without pay new text beginthat is new text endof new text beginan indefinite duration or is
for
new text endmore than 30 calendar days isnew text begin considerednew text end a dischargenew text begin at the time the suspension beginsnew text end.

deleted text begin (b)deleted text endnew text begin (c)new text end When determining if an applicant was discharged, the theory of a constructive
discharge does not apply.

deleted text begin (c)deleted text endnew text begin (d)new text end An employee who gives notice of intention to quit the employment and is not
allowed by the employer to work the entire notice period is discharged from the employment
as of the date the employer will no longer allow the employee to work. If the discharge
occurs within 30 calendar days before the intended date of quitting, then, as of the intended
date of quitting, the separation from employment is a quit from employment subject to
subdivision 1.

deleted text begin (d)deleted text endnew text begin (e)new text end The end of a job assignment with the client of a staffing service is a discharge
from employment with the staffing service unless subdivision 2, paragraph (e), applies.

Sec. 5.

Minnesota Statutes 2016, 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 deleted text begincommissioner maydeleted text endnew text begin department is authorized tonew text end 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.

If an applicant obtained unemployment benefits through deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end under
section 268.18, subdivision 2,new text begin the department is authorized to issuenew text end a determination of
ineligibility deleted text beginmay be issueddeleted text end within 48 months of the establishment of the benefit account.

new text begin 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.
new text end

(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.

ARTICLE 2

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
HOUSEKEEPING

Section 1.

Minnesota Statutes 2016, section 268.035, subdivision 20, is amended to read:


Subd. 20.

Noncovered employment.

"Noncovered employment" means:

(1) employment for the United States government or an instrumentality thereof, including
military service;

(2) employment for a state, other than Minnesota, or a political subdivision or
instrumentality thereof;

(3) employment for a foreign government;

(4) employment covered under the federal Railroad Unemployment Insurance Act;

(5) employment for a church or convention or association of churches, or a nonprofit
organization operated primarily for religious purposes that is operated, supervised, controlled,
or principally supported by a church or convention or association of churches;

new text begin (6) employment for an elementary or secondary school with a curriculum that includes
religious education that is operated by a church, a convention or association of churches,
or a nonprofit organization that is operated, supervised, controlled, or principally supported
by a church or convention or association of churches;
new text end

deleted text begin (6)deleted text endnew text begin (7)new text end employment for Minnesota or a political subdivision, or a nonprofit organization,
of a duly ordained or licensed minister of a church in the exercise of a ministry or by a
member of a religious order in the exercise of duties required by the order;

deleted text begin (7)deleted text endnew text begin (8)new text end employment for Minnesota or a political subdivision, or a nonprofit organization,
of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the
purpose of carrying out a program of rehabilitation for individuals whose earning capacity
is impaired by age or physical or mental deficiency or injury or a program providing
"sheltered" work for individuals who because of an impaired physical or mental capacity
cannot be readily absorbed in the competitive labor market. This clause applies only to
services performed in a facility certified by the Rehabilitation Services Branch of the
department or in a day training or habilitation program licensed by the Department of Human
Services;

deleted text begin (8)deleted text endnew text begin (9)new text end employment for Minnesota or a political subdivision, or a nonprofit organization,
of an individual receiving work relief or work training as part of an unemployment work
relief or work training program deleted text beginassisted ordeleted text end financed in whole or in part by any federal agency
or an agency of a state or political subdivision thereof. This clause does not apply to programs
that require unemployment benefit coverage for the participants;

deleted text begin (9)deleted text endnew text begin (10)new text end employment for Minnesota or a political subdivision, as an elected official, a
member of a legislative body, or a member of the judiciary;

deleted text begin (10)deleted text endnew text begin (11)new text end employment as a member of the Minnesota National Guard or Air National
Guard;

deleted text begin (11)deleted text endnew text begin (12)new text end employment for Minnesota or a political subdivision, or instrumentality thereof,
of an individual serving on a temporary basis in case of fire, flood, tornado, or similar
emergency;

deleted text begin (12)deleted text endnew text begin (13)new text end employment as an election official or election worker for Minnesota or a
political subdivision, if the compensation for that employment was less than $1,000 in a
calendar year;

deleted text begin (13)deleted text endnew text begin (14)new text end employment for Minnesota that is a major policy-making or advisory position
in the unclassified service;

deleted text begin (14)deleted text endnew text begin (15)new text end employment for Minnesota in an unclassified position established under section
43A.08, subdivision 1a;

deleted text begin (15)deleted text endnew text begin (16)new text end employment for a political subdivision of Minnesota that is a nontenured major
policy making or advisory position;

deleted text begin (16)deleted text endnew text begin (17)new text end domestic employment in a private household, local college club, or local chapter
of a college fraternity or sorority, if the wages paid in any calendar quarter in either the
current or prior calendar year to all individuals in domestic employment totaled less than
$1,000.

"Domestic employment" includes all service in the operation and maintenance of a
private household, for a local college club, or local chapter of a college fraternity or sorority
as distinguished from service as an employee in the pursuit of an employer's trade or business;

deleted text begin (17)deleted text endnew text begin (18)new text end employment of an individual by a son, daughter, or spouse, and employment
of a child under the age of 18 by the child's father or mother;

deleted text begin (18)deleted text endnew text begin (19)new text end employment of an inmate of a custodial or penal institution;

deleted text begin (19)deleted text endnew text begin (20)new text end employment for a school, college, or university, by a student who is enrolled
and whose primary relation to the school, college, or university is as a student. This does
not include an individual whose primary relation to the school, college, or university is as
an employee who also takes courses;

deleted text begin (20)deleted text endnew text begin (21)new text end employment of an individual who is enrolled as a student in a full-time program
at a nonprofit or public educational institution that maintains a regular faculty and curriculum
and has a regularly organized body of students in attendance at the place where its educational
activities are carried on, taken for credit at the institution, that combines academic instruction
with work experience, if the employment is an integral part of the program, and the institution
has so certified to the employer, except that this clause does not apply to employment in a
program established for or on behalf of an employer or group of employers;

deleted text begin (21)deleted text endnew text begin (22)new text end employment of university, college, or professional school students in an
internship or other training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;

deleted text begin (22)deleted text endnew text begin (23)new text end employment for a hospital by a patient of the hospital. "Hospital" means an
institution that has been licensed by the Department of Health as a hospital;

deleted text begin (23)deleted text endnew text begin (24)new text end employment as a student nurse for a hospital or a nurses' training school by
an individual who is enrolled and is regularly attending classes in an accredited nurses'
training school;

deleted text begin (24)deleted text endnew text begin (25)new text end employment as an intern for a hospital by an individual who has completed a
four-year course in an accredited medical school;

deleted text begin (25)deleted text endnew text begin (26)new text end employment as an insurance salesperson, by other than a corporate officer, if
all the wages from the employment is solely by way of commission. The word "insurance"
includes an annuity and an optional annuity;

deleted text begin (26)deleted text endnew text begin (27)new text end employment as an officer of a township mutual insurance company or farmer's
mutual insurance company under chapter 67A;

deleted text begin (27)deleted text endnew text begin (28)new text end employment of a corporate officer, if the officer directly or indirectly, including
through a subsidiary or holding company, owns 25 percent or more of the employer
corporation, and employment of a member of a limited liability company, if the member
directly or indirectly, including through a subsidiary or holding company, owns 25 percent
or more of the employer limited liability company;

deleted text begin (28)deleted text endnew text begin (29)new text end employment as a real estate salesperson, other than a corporate officer, if all
the wages from the employment is solely by way of commission;

deleted text begin (29)deleted text endnew text begin (30)new text end employment as a direct seller as defined in United States Code, title 26, section
3508;

deleted text begin (30)deleted text endnew text begin (31)new text end employment of an individual under the age of 18 in the delivery or distribution
of newspapers or shopping news, not including delivery or distribution to any point for
subsequent delivery or distribution;

deleted text begin (31)deleted text endnew text begin (32)new text end casual employment performed for an individual, other than domestic
employment under clause deleted text begin(16)deleted text endnew text begin (17)new text end, that does not promote or advance that employer's trade
or business;

deleted text begin (32)deleted text endnew text begin (33)new text end employment in "agricultural employment" unless it is "covered agricultural
employment" under subdivision 11; or

deleted text begin (33)deleted text endnew text begin (34)new text end if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period is covered employment; but if during
more than one-half of any pay period the employment was noncovered employment, then
all of the employment for the pay period is noncovered employment. "Pay period" means
a period of not more than a calendar month for which a payment or compensation is ordinarily
made to the employee by the employer.

Sec. 2.

Minnesota Statutes 2016, section 268.035, subdivision 21d, is amended to read:


Subd. 21d.

Staffing service.

A "staffing service" is an employer whose business involves
employing individuals directly for the purpose of furnishing temporary assignment workers
to deleted text beginclientsdeleted text endnew text begin support or supplement the workforce of the business that is a clientnew text end of the staffing
service.

Sec. 3.

Minnesota Statutes 2016, section 268.051, subdivision 9, is amended to read:


Subd. 9.

Assessments, fees, and surcharges; treatment.

deleted text beginAny assessment, fee, or
surcharge imposed under the Minnesota Unemployment Insurance Law is treated the same
as, and considered as, a tax.
deleted text end Any assessment, fee, or surcharge is subject to the same
collection procedures that apply to past due taxes.

Sec. 4.

Minnesota Statutes 2016, 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 within seven calendar days of the date the application is filed. An application
may be backdated only if the applicant was unemployed 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.

new text begin A benefit account may be withdrawn after the expiration of the benefit year, and the
new work requirements of subdivision 2, paragraph (b), do not apply if the applicant was
not paid any unemployment benefits on the benefit account that is being withdrawn.
new text end

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.
This paragraph applies to benefit accounts established under any federal law or the law of
any other state.

Sec. 5.

Minnesota Statutes 2016, section 268.085, subdivision 1, is amended to read:


Subdivision 1.

Eligibility conditions.

An applicant may be eligible to receive
unemployment benefits for any week if:

(1) the applicant has filed a continued request for unemployment benefits for that week
under section 268.0865;

(2) the week for which unemployment benefits are requested is in the applicant's benefit
year;

(3) the applicant was unemployed as defined in section 268.035, subdivision 26;

(4) the applicant was available for suitable employment as defined in subdivision 15.
The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the
applicant is unavailable for suitable employment. This clause does not apply to an applicant
who is in reemployment assistance training, or each day the applicant is on jury duty or
serving as an election judge;

(5) the applicant was actively seeking suitable employment as defined in subdivision
16. This clause does not apply to an applicant who is in reemployment assistance training
or who was on jury duty throughout the week;

(6) the applicant has served a nonpayable period of one week that the applicant is
otherwise eligible for some amount of unemployment benefits. This clause does not apply
if the applicant would have been eligible for federal disaster unemployment assistance
because of a disaster in Minnesota, but for the applicant's establishment of a benefit account
under section 268.07; and

(7) the applicant has been participating in reemployment assistance services, such as
development of, and adherence to, a work search plan, if the applicant has been directed to
participate by the commissioner. This clause does not apply if the applicant has good cause
for failing to participate.new text begin "Good cause" is a reason that would have prevented a reasonable
person acting with due diligence from participating.
new text end

Sec. 6.

Minnesota Statutes 2016, section 268.085, subdivision 13a, is amended to read:


Subd. 13a.

Leave of absence.

(a) An applicant on a voluntary leave of absence is
ineligible for unemployment benefits for the duration of the leave of absence. An applicant
on an involuntary leave of absence is not ineligible under this subdivision.

A leave of absence is voluntary when work that the applicant can then perform is available
with the applicant's employer but the applicant chooses not to work. A medical leave of
absence is not presumed to be voluntary.

(b) A period of vacation requested by the applicant, paid or unpaid, is deleted text beginconsidereddeleted text end a
voluntary leave of absence. A vacation period assigned by an employer under: (1) a uniform
vacation shutdown; (2) a collective bargaining agreement; or (3) an established employer
policy, is deleted text beginconsidereddeleted text end an involuntary leave of absence.

(c) new text beginA leave of absence is a temporary stopping of work that has been approved by the
employer.
new text endA voluntary leave of absence is not deleted text beginconsidereddeleted text end a quit and an involuntary leave
of absence is not deleted text beginconsidereddeleted text end a discharge from employment for purposes of section 268.095.

(d) An applicant who is on a paid leave of absence, whether the leave of absence is
voluntary or involuntary, is ineligible for unemployment benefits for the duration of the
leave.

(e) This subdivision applies to a leave of absence from a base period employer, an
employer during the period between the end of the base period and the effective date of the
benefit account, or an employer during the benefit year.

Sec. 7.

Minnesota Statutes 2016, section 268.105, subdivision 2, is amended to read:


Subd. 2.

Request for reconsideration.

(a) Any party, or the commissioner, may within
20 calendar days of the sending of the unemployment law judge's decision under subdivision
1a, file a request for reconsideration asking the judge to reconsider that decision.

(b) Upon a request for reconsideration having been filed, the chief unemployment law
judge must send a notice, by mail or electronic transmission, to all parties that a request for
reconsideration has been filed. The notice must inform the parties:

(1) that reconsideration is the procedure for the unemployment law judge to correct any
factual or legal mistake in the decision, or to order an additional hearing when appropriate;

(2) of the opportunity to provide comment on the request for reconsideration, and the
right under subdivision 5 to obtain a copy of any recorded testimony and exhibits offered
or received into evidence at the hearing;

(3) that providing specific comments as to a perceived factual or legal mistake in the
decision, or a perceived mistake in procedure during the hearing, will assist the
unemployment law judge in deciding the request for reconsideration;

(4) of the right to obtain any comments and submissions provided by any other party
regarding the request for reconsideration; and

(5) of the provisions of paragraph (c) regarding additional evidence.

This paragraph does not apply if paragraph (d) is applicable. Sending the notice does not
mean the unemployment law judge has decided the request for reconsideration was timely
filed.

(c) In deciding a request for reconsideration, the unemployment law judge must not
consider any evidence that was not submitted at the hearing, except for purposes of
determining whether to order an additional hearing.

The unemployment law judge must order an additional hearing if a party shows that
evidence which was not submitted at the hearing:

(1) would likely change the outcome of the decision and there was good cause for not
having previously submitted that evidence; or

(2) would show that the evidence that was submitted at the hearing was likely false and
that the likely false evidence had an effect on the outcome of the decision.

new text begin "Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from submitting the evidence.
new text end

(d) If the party who filed the request for reconsideration failed to participate in the
hearing, the unemployment law judge must issue an order setting aside the decision and
ordering an additional hearing if the party who failed to participate had good cause for
failing to do so. The party who failed to participate in the hearing must be informed of the
requirement to show good cause for failing to participate. If the unemployment law judge
determines that good cause for failure to participate has not been shown, the judge must
state that in the decision issued under paragraph (f).

Submission of a written statement at the hearing does not constitute participation for
purposes of this paragraph.

"Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from participating in the hearing.

(e) A request for reconsideration must be decided by the unemployment law judge who
issued the decision under subdivision 1a unless that judge:

(1) is no longer employed by the department;

(2) is on an extended or indefinite leave; or

(3) has been removed from the proceedings by the chief unemployment law judge.

(f) If a request for reconsideration is timely filed, the unemployment law judge must
issue:

(1) a decision affirming the findings of fact, reasons for decision, and decision issued
under subdivision 1a;

(2) a decision modifying the findings of fact, reasons for decision, and decision under
subdivision 1a; or

(3) an order setting aside the findings of fact, reasons for decision, and decision issued
under subdivision 1a, and ordering an additional hearing.

The unemployment law judge must issue a decision dismissing the request for
reconsideration as untimely if the judge decides the request for reconsideration was not
filed within 20 calendar days after the sending of the decision under subdivision 1a.

The unemployment law judge must send to all parties, by mail or electronic transmission,
the decision or order issued under this subdivision. A decision affirming or modifying the
previously issued findings of fact, reasons for decision, and decision, or a decision dismissing
the request for reconsideration as untimely, is the final decision on the matter and is binding
on the parties unless judicial review is sought under subdivision 7.

ARTICLE 3

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
TECHNICAL

Section 1.

Minnesota Statutes 2016, section 268.031, subdivision 1, is amended to read:


Subdivision 1.

Standard of proof.

All issues deleted text beginof factdeleted text end under the Minnesota Unemployment
Insurance Law are determined by a preponderance of the evidence.

Sec. 2.

Minnesota Statutes 2016, section 268.035, subdivision 15, is amended to read:


Subd. 15.

Employment.

(a) "Employment" means service performed by:

(1) an individual who is deleted text beginconsidereddeleted text end an employee under the common law of
employer-employee and not deleted text beginconsidereddeleted text end an independent contractor;

(2) an officer of a corporation;

(3) a member of a limited liability company who is deleted text beginconsidereddeleted text end an employee under the
common law of employer-employee;new text begin or
new text end

(4) product demonstrators in retail stores or other locations to aid in the sale of products.
The person that pays the wages is deleted text beginconsidereddeleted text end the employerdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (5) an individual who performs services for a person for compensation, as:
deleted text end

deleted text begin (i) an agent-driver or commission-driver engaged in distributing meat products, vegetable
products, fruit products, beverages, or laundry or dry cleaning services; or
deleted text end

deleted text begin (ii) a traveling or city salesperson, other than as an agent-driver or commission-driver,
engaged full-time in the solicitation on behalf of the person, of orders from wholesalers,
retailers, contractors, or operators of hotels, restaurants, or other similar establishments for
merchandise for resale or supplies for use in their business operations.
deleted text end

deleted text begin This clause applies only if the contract of service provides that substantially all of the
services are to be performed personally by the individual, and the services are part of a
continuing relationship with the person for whom the services are performed, and the
individual does not have a substantial investment in facilities used in connection with the
performance of the services, other than facilities for transportation.
deleted text end

(b) Employment does not include service as a juror.

new text begin (c) Construction industry employment is defined in subdivision 9a. Trucking and
messenger/courier industry employment is defined in subdivision 25b. Rules on determining
worker employment status are described under Minnesota Rules, chapter 3315.
new text end

Sec. 3.

Minnesota Statutes 2016, section 268.035, subdivision 23, is amended to read:


Subd. 23.

State's average annual and average weekly wage.

(a) On or before June 30
of each year, the commissioner must calculatenew text begin, from wage detail reports under section
268.044,
new text end the state's average annual wage and the state's average weekly wage in the following
manner:

(1) the sum of the total monthly covered employment reported by all employers for the
prior calendar year is divided by 12 to calculate the average monthly covered employmentdeleted text begin.deleted text endnew text begin;
new text end

(2) the sum of the total wages paid for all covered employment reported by all employers
for the prior calendar year is divided by the average monthly covered employment to calculate
the state's average annual wagedeleted text begin.deleted text endnew text begin; and
new text end

(3) the state's average annual wage is divided by 52 to calculate the state's average weekly
wage.

(b) For purposes of calculating the amount of taxable wagesnew text begin under subdivision 24new text end, the
state's average annual wage applies to the calendar year following the calculation.

(c) For purposes of calculating deleted text begin(1)deleted text end the state's maximum weekly unemployment benefit
amount available on any benefit account under section 268.07, subdivision 2a, deleted text beginand (2)deleted text endnew text begin the
state's average weekly wage applies to the one-year period beginning the last Sunday in
October of the calendar year of the calculation.
new text end

new text begin (d) For purposes of calculatingnew text end the wage credits necessary to establish a benefit account
under section 268.07, subdivision 2, the state's average weekly wage applies to the one-year
period beginning the last Sunday in October of the calendar year of the calculation.

Sec. 4.

Minnesota Statutes 2016, section 268.035, subdivision 30, is amended to read:


Subd. 30.

Wages paid.

(a) "Wages paid" means the amount of wages:

(1) that have been actually paid; or

(2) that have been credited to or set apart so that payment and disposition is under the
control of the employee.

(b) Wage payments delayed beyond the regularly scheduled pay date are deleted text beginconsidereddeleted text end
"wages paid" on the missed pay date. Back pay is deleted text beginconsidereddeleted text end "wages paid" on the date of
actual payment. Any wages earned but not paid with no scheduled date of payment deleted text beginis
considered
deleted text endnew text begin arenew text end "wages paid" on the last day of employment.

(c) Wages paid does not include wages earned but not paid except as provided for in
this subdivision.

Sec. 5.

Minnesota Statutes 2016, section 268.042, subdivision 1, is amended to read:


Subdivision 1.

Employer registration.

(a) Each employer must, upon or before the
submission of its first wage detail report under section 268.044, register with the
commissioner for a tax account or a reimbursable account, by electronic transmission in a
format prescribed by the commissioner. The employer must provide all required information
for registration, including the actual physical street and city address of the employer.

(b) Within 30 calendar days, each employer must notify the commissioner by electronic
transmission, in a format prescribed, of a change in legal entity, of the transfer, sale, or
acquisition of a business conducted in Minnesota, in whole or in part, if the transaction
results in the creation of a new or different employer or affects the establishment of employer
accounts, the assignment of tax rates, or the transfer of experience rating history.

(c) Except as provided in subdivision 3, any person that is or becomes an employer
deleted text begin subject to the Minnesota Unemployment Insurance Lawdeleted text endnew text begin with covered employmentnew text end within
any calendar year is deleted text beginconsidered to bedeleted text end subject to this chapter the entire calendar year.

(d) Within 30 calendar days of the termination of business, an employer that has been
assigned a tax account or reimbursable account must notify the commissioner by electronic
transmission, in a format prescribed by the commissioner, if that employer does not intend
or expect to pay wages to any employees in covered employment during the current or the
next calendar year. Upon notification, the employer is no longer required to file wage detail
reports under section 268.044, subdivision 1, paragraph (d), and the employer's account
must be terminated.

(e) An employer that has its account terminated regains its previous tax account under
section 268.045, with the experience rating history of that account, if the employer again
commences business and again pays wages in covered employment if:

(1) less than 14 calendar quarters have elapsed in which no wages were paid for covered
employment;

(2) the experience rating history regained contains taxable wages; and

(3) the experience rating history has not been transferred to a successor under section
268.051, subdivision 4.

Sec. 6.

Minnesota Statutes 2016, section 268.051, subdivision 1, is amended to read:


Subdivision 1.

Payments.

(a) Unemployment insurance taxes deleted text beginand any special
assessments, fees, or surcharges
deleted text end accrue and become payable by each employer for each
calendar year on the taxable wages that the employer paid to employees in covered
employment, except for:

(1) nonprofit organizations that elect to make reimbursements as provided in section
268.053; and

(2) the state of Minnesota and political subdivisions that make reimbursements, unless
they elect to pay taxes as provided in section 268.052.

Each employer must pay taxes quarterly, at the employer's assigned tax rate under
subdivision 6, on the taxable wages paid to each employee. The commissioner must compute
the tax due from the wage detail report required under section 268.044 and notify the
employer of the tax due. The taxes deleted text beginand any special assessments, fees, or surchargesdeleted text end must
be paid to the trust fund and must be received by the department on or before the last day
of the month following the end of the calendar quarter.

(b) If for any reason the wages on the wage detail report under section 268.044 are
adjusted for any quarter, the commissioner must recompute the taxes due for that quarter
and assess the employer for any amount due or credit the employer as appropriate.

Sec. 7.

Minnesota Statutes 2016, section 268.07, subdivision 2, is amended to read:


Subd. 2.

Benefit account requirements.

(a) Unless paragraph (b) applies, to establish
a benefit account an applicant must have deleted text begintotaldeleted text end wage credits deleted text beginin the applicant's four quarter
base period
deleted text end of at least 5.3 percent of the state's average annual wage rounded down to the
next lower $100.

(b) To establish a new benefit account following the expiration of the benefit year on a
prior benefit account, an applicant must have performed actual work in subsequent covered
employment and have been paid wages in one or more completed calendar quarters that
started after the effective date of the prior benefit account. The wages paid for that
employment must be at least enough to meet the requirements of paragraph (a). A benefit
account under this paragraph may not be established effective earlier than the Sunday
following the end of the most recent completed calendar quarter in which the requirements
of paragraph (a) were met. An applicant may not establish a second benefit account as a
result of one loss of employment.

Sec. 8.

Minnesota Statutes 2016, section 268.07, subdivision 3a, is amended to read:


Subd. 3a.

Right of appeal.

(a) A determination or amended determination of benefit
account is final unless an applicant or base period employer within 20 calendar days after
the sending of the determination or amended determination files an appeal. Every
determination or amended determination of benefit account must contain a prominent
statement indicating in clear language the consequences of not appealing. Proceedings on
the appeal are conducted in accordance with section 268.105.

(b) Any applicant or base period employer may appeal from a determination or amended
determination of benefit account on the issue of whether services performed constitute
employment, whether the employment is deleted text beginconsidereddeleted text end covered employment, and whether
money paid constitutes wages. deleted text beginProceedings on the appeal are conducted in accordance with
section 268.105.
deleted text end

Sec. 9.

Minnesota Statutes 2016, section 268.085, subdivision 6, is amended to read:


Subd. 6.

Receipt of back pay.

(a) Back pay received by an applicant within 24 months
of the establishment of the benefit account with respect to any week must be deducted from
unemployment benefits paid for that week, and the applicant is deleted text beginconsidered to have beendeleted text end
overpaid the unemployment benefits under section 268.18, subdivision 1.

If the back pay is not paid with respect to a specific period, the back pay must be applied
to the period immediately following the last day of employment.

(b) If the back pay is reduced by the amount of unemployment benefits that have been
paid, the amount of back pay withheld and not paid the applicant must be:

(1) paid by the taxpaying or reimbursing employer to the trust fund within 30 calendar
days and is subject to the same collection procedures that apply to past due taxes and
reimbursements; and

(2) when received by the trust fund:

(i) an overpayment of unemployment benefits must be created which, under section
268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account of any
effect; and

(ii) the back pay must then be applied to the unemployment benefit overpayment,
eliminating any effect on the applicant.

(c) The following must result when applying paragraph (b):

(1) an employer neither overpays nor underpays the employer's proper portion of the
unemployment benefit costs; and

(2) the applicant is placed in the same position as never having been paid the
unemployment benefits.

(d) This subdivision applies to payments labeled front pay, settlement pay, and other
terms describing or dealing with wage loss.

Sec. 10.

Minnesota Statutes 2016, section 268.085, subdivision 7, is amended to read:


Subd. 7.

School employeesnew text begin; between terms denialnew text end.

(a) deleted text beginNodeleted text end Wage credits deleted text beginin any amountdeleted text end
from deleted text beginanydeleted text end employment with deleted text beginanydeleted text endnew text begin annew text end educational institution or institutions deleted text beginearned in any
capacity
deleted text end may new text beginnot new text endbe used for unemployment benefit purposes for any week during the period
between two successive academic years or terms if:

(1) the applicant had employment for deleted text beginanydeleted text endnew text begin annew text end educational institution or institutions in the
prior academic year or term; and

(2) there is a reasonable assurance that the applicant will have employment for deleted text beginanydeleted text endnew text begin annew text end
educational institution or institutions in the following academic year or termdeleted text begin, unless thatdeleted text endnew text begin.
new text end

new text begin This paragraph applies to a vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period
or holiday recess. This paragraph also applies to the period between two regular but not
successive terms if there is an agreement for that schedule between the applicant and the
educational institution.
new text end

new text begin This paragraph does not apply if thenew text end subsequent employment is substantially less
favorable than the employment of the prior academic year or termnew text begin, or the employment prior
to the vacation period or holiday recess
new text end.

(b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic
year or term, had an agreement for a definite period of employment between academic years
or terms in other than an instructional, research, or principal administrative capacity and
the educational institution or institutions failed to provide that employment.

(c) If unemployment benefits are denied to any applicant under paragraph (a) who was
employed in the prior academic year or term in other than an instructional, research, or
principal administrative capacity and who was not offered an opportunity to perform the
employment in the following academic year or term, the applicant is entitled to retroactive
unemployment benefits for each week during the period between academic years or terms
that the applicant filed a timely continued request for unemployment benefits, but
unemployment benefits were denied solely because of paragraph (a).

deleted text begin (d) An educational assistant is not considered to be in an instructional, research, or
principal administrative capacity.
deleted text end

deleted text begin (e) Paragraph (a) applies to any vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period
or holiday recess.
deleted text end

deleted text begin (f)deleted text endnew text begin (d)new text end This subdivision applies to employment with an educational service agency if the
applicant performed the services at an educational institution or institutions. "Educational
service agency" means a governmental deleted text beginagency ordeleted text end entity established and operated deleted text beginexclusivelydeleted text end
for the purpose of providing services to one or more educational institutions.

new text begin (e) new text endThis subdivision deleted text beginalsodeleted text end applies to employment with Minnesota deleted text beginordeleted text endnew text begin,new text end a political
subdivision, or a nonprofit organization, if the services are provided to or on behalf of an
educational institution or institutions.

deleted text begin (g) Paragraphs (a) and (e) applydeleted text endnew text begin (f) Paragraph (a) appliesnew text end beginning the Sunday of the
week that there is a reasonable assurance of employment.

deleted text begin (h)deleted text endnew text begin (g)new text end Employment new text beginand a reasonable assurance new text endwith multiple education institutions
must be aggregated for purposes of application of this subdivision.

deleted text begin (i)deleted text endnew text begin (h)new text end If all of the applicant's employment with any educational institution or institutions
during the prior academic year or term consisted of on-call employment, and the applicant
has a reasonable assurance of any on-call employment with any educational institution or
institutions for the following academic year or term, it is not considered substantially less
favorable employment.

deleted text begin (j) Paragraph (a) also applies to the period between two regular but not successive terms.
deleted text end

deleted text begin (k)deleted text endnew text begin (i)new text end A "reasonable assurance" may be written, oral, implied, or established by custom
or practice.

deleted text begin (l)deleted text endnew text begin (j)new text end An "educational institution" is deleted text beginandeleted text endnew text begin a school, college, university, or othernew text end educational
entity operated by Minnesota deleted text beginordeleted text endnew text begin,new text end a political subdivision or deleted text beginandeleted text end instrumentality thereof, or deleted text beginan
educational
deleted text endnew text begin a nonprofitnew text end organization deleted text begindescribed in United States Code, title 26, section
501(c)(3) of the federal Internal Revenue Code, and exempt from income tax under section
501(a)
deleted text end.

new text begin (k) An "instructional, research, or principal administrative capacity" does not include
an educational assistant.
new text end

Sec. 11.

Minnesota Statutes 2016, section 268.085, subdivision 12, is amended to read:


Subd. 12.

Aliens.

(a) An alien is ineligible for unemployment benefits for any week the
alien is not authorized to work in the United States under federal law. Information from the
Bureau of Citizenship and Immigration Services is deleted text beginconsidereddeleted text end conclusive, absent specific
evidence that the information was erroneous. Under the existing agreement between the
United States and Canada, this paragraph does not apply to an applicant who is a Canadian
citizen and has returned to and is living in Canada each week unemployment benefits are
requested.

(b) deleted text beginUnemployment benefits must not be paid on the basis ofdeleted text endnew text begin An alien'snew text end wage credits
deleted text begin earned by an aliendeleted text endnew text begin may not be used for unemployment benefit purposesnew text end unless the aliennew text begin
was:
new text end

(1) deleted text beginwasdeleted text end lawfully admitted for permanent residence at the time of the employmentdeleted text begin,deleted text endnew text begin;
new text end

(2) deleted text beginwasdeleted text end lawfully present for the purposes of the employmentdeleted text begin,deleted text endnew text begin;new text end or

(3) deleted text beginwasdeleted text end permanently residing in the United States under color of law at the time of the
employment.

(c) deleted text beginAnydeleted text end Information required of applicants applying for unemployment benefits to
determine eligibility because of their alien status must be required deleted text beginfromdeleted text endnew text begin ofnew text end all applicants.

Sec. 12.

Minnesota Statutes 2016, section 268.0865, subdivision 5, is amended to read:


Subd. 5.

Good cause defined.

(a) "Good cause" for purposes of this section is a
deleted text begin compelling substantialdeleted text end reason that would have prevented a reasonable person acting with
due diligence from filing a continued request for unemployment benefits within the time
periods required.

(b) "Good cause" does not include forgetfulness, loss of the continued request form if
filing by mail, having returned to work, having an appeal pending, or inability to file a
continued request for unemployment benefits by the method designated if the applicant was
aware of the inability and did not make diligent effort to have the method of filing a continued
request changed by the commissioner. "Good cause" does not include having previously
made an attempt to file a continued request for unemployment benefits but where the
communication was not considered a continued request because the applicant failed to
submit all required information.

Sec. 13.

Minnesota Statutes 2016, section 268.095, subdivision 1, is amended to read:


Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all
unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the employer
as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that provided
equal to or better terms and conditions of employment, but the applicant did not work long
enough at the second employment to have sufficient subsequent wages paid to satisfy the
period of ineligibility that would otherwise be imposed under subdivision 10 for quitting
the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the
employment and the employment was unsuitable;

(4) the employment was unsuitable and the applicant quit to enter reemployment
assistance training;

(5) the employment was part time and the applicant also had full-time employment in
the base period, from which full-time employment the applicant separated because of reasons
for which the applicant deleted text beginisdeleted text endnew text begin wouldnew text end not new text beginbe new text endineligible, and the wage credits from the full-time
employment are sufficient to meet the minimum requirements to establish a benefit account
under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant was
going to be laid off because of lack of work within 30 calendar days. An applicant who quit
employment within 30 calendar days of a notified date of layoff because of lack of work is
ineligible for unemployment benefits through the end of the week that includes the scheduled
date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or injury
made it medically necessary that the applicant quit; or (ii) in order to provide necessary care
because of the illness, injury, or disability of an immediate family member of the applicant.
This exception only applies if the applicant informs the employer of the medical problem
and requests accommodation and no reasonable accommodation is made available.

If the applicant's serious illness is chemical dependency, this exception does not apply
if the applicant was previously diagnosed as chemically dependent or had treatment for
chemical dependency, and since that diagnosis or treatment has failed to make consistent
efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable employment
under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the applicant
to quit the employment, provided the applicant made reasonable effort to obtain other child
care and requested time off or other accommodation from the employer and no reasonable
accommodation is available.

This exception raises an issue of the applicant's being available for suitable employment
under section 268.085, subdivision 1, that the commissioner must determine;

(9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant
or an immediate family member of the applicant, necessitated the applicant's quitting the
employment.

For purposes of this subdivision:

(i) "domestic abuse" has the meaning given in section 518B.01;

(ii) "sexual assault" means an act that would constitute a violation of sections 609.342
to 609.3453 or 609.352; and

(iii) "stalking" means an act that would constitute a violation of section 609.749; or

(10) the applicant quit in order to relocate to accompany a spouse:

(1) who is in the military; or

(2) whose job was transferred by the spouse's employer to a new location making it
impractical for the applicant to commute.

Sec. 14.

Minnesota Statutes 2016, section 268.095, subdivision 2, is amended to read:


Subd. 2.

Quit defined.

(a) A quit from employment occurs when the decision to end
the employment was, at the time the employment ended, the employee's.

(b) When determining if an applicant quit, the theory of a constructive quit does not
apply.

(c) An employee who has been notified that the employee will be discharged in the
future, who chooses to end the employment while employment in any capacity is still
available, has quit the employment.

(d) new text beginA notice of quitting in the future does not constitute a quit at the time the notice is
given.
new text endAn employee who seeks to withdraw a previously submitted notice of quitting new text beginin the
future
new text endhas quit the employment, as of the intended date of quitting, if the employer does not
agree that the notice may be withdrawn.

(e) An applicant has quit employment with a staffing service if, within five calendar
days after completion of a suitable job assignment from a staffing service, the applicant:

(1) fails without good cause to affirmatively request an additional suitable job assignment;

(2) refuses without good cause an additional suitable job assignment offered; or

(3) accepts employment with the client of the staffing service. Accepting employment
with the client of the staffing service meets the requirements of the exception to ineligibility
under subdivision 1, clause (2).

This paragraph applies only if, at the time of beginning of employment with the staffing
service, the applicant signed and was provided a copy of a separate document written in
clear and concise language that informed the applicant of this paragraph and that
unemployment benefits may be affected.

For purposes of this paragraph, "good cause" is a reason that would compel an average,
reasonable worker, who would otherwise want an additional suitable job assignment with
the staffing service (1) to fail to contact the staffing service, or (2) to refuse an offered
assignment.

Sec. 15.

Minnesota Statutes 2016, section 268.131, is amended to read:


268.131 deleted text beginRECIPROCAL UNEMPLOYMENT BENEFITdeleted text endnew text begin COMBINED WAGEnew text end
ARRANGEMENTSnew text begin FOR WORK IN MULTIPLE STATESnew text end.

deleted text begin Subdivision 1. deleted text end

deleted text begin Cooperation with other states on combining wages. deleted text end

(a) In accordance
with the requirements of deleted text beginUnited States Code, title 26, section 3304(a)(9)(B),deleted text end the Federal
Unemployment Tax Act, the commissioner must participate deleted text beginin reciprocal arrangementsdeleted text end with
other states for the payment of unemployment benefits on the basis of combining an
applicant's wages from multiple states for the purposes of collecting unemployment benefits
from a single state. deleted text beginThe reciprocal agreement must include provisions for applying the base
period of a single state law to a benefit account involving the combining of an applicant's
wages and employment and avoiding the duplicate use of wages by reason of such combining.
deleted text end
The commissioner may deleted text beginnot enter into any reciprocal arrangement unless it contains provisions
for
deleted text endnew text begin only pay unemployment benefits from the trust fund under this section if:
new text end

new text begin (1) there are new text endreimbursements to the trust fund, by the other state, for unemployment
benefits paid from the trust fund deleted text beginto applicantsdeleted text end based upon wages and employment covered
under the laws of the other statedeleted text begin.deleted text endnew text begin; and
new text end

deleted text begin (b) The commissioner is authorized to pay unemployment benefits based upon an
applicant's wages paid in covered employment in another state only if
deleted text endnew text begin (2)new text end the applicant is
combining Minnesota wage credits with the wages paid in covered employment from another
state deleted text beginor statesdeleted text end.

deleted text begin (c) Section 268.23 does not apply to this subdivision.
deleted text end

deleted text begin (d) On any reciprocal arrangement,deleted text endnew text begin (b) Under this section,new text end the wages paid an applicant
from employment covered under an unemployment insurance program of another state are
considered wages from covered employment for the purpose of determining the applicant's
rights to unemployment benefits under the Minnesota Unemployment Insurance Law.

deleted text begin Subd. 2. deleted text end

deleted text begin Cooperation with foreign governments. deleted text end

deleted text begin The commissioner is authorized to
enter into or cooperate in arrangements whereby facilities and services provided under the
Minnesota Unemployment Insurance Law and facilities and services provided under the
unemployment insurance program of any foreign government, may be used for the taking
of applications for unemployment benefits and continued requests and the payment of
unemployment benefits under this law or under a similar law of a foreign government.
deleted text end

Sec. 16.

Minnesota Statutes 2016, section 268.18, subdivision 2, is amended to read:


Subd. 2.

Overpayment because of deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end.

(a) An applicant has
committed deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end if the applicant is overpaid unemployment benefits bydeleted text begin:
deleted text end

deleted text begin (1) knowingly misrepresenting, misstating, or failing to disclose any material fact; or
deleted text end

deleted text begin (2)deleted text end making a false statement or representation without a good faith belief as to the
correctness of the statement or representation.

After the discovery of facts indicating deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end, the commissioner must
issue a determination of overpayment penalty assessing a penalty equal to 40 percent of the
amount overpaid. This penalty is in addition to penalties under section 268.182.

(b) Unless the applicant files an appeal within 20 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.

(c) A determination of overpayment penalty must state the methods of collection the
commissioner may use to recover the overpayment, penalty, and interest assessed. Money
received in repayment of overpaid unemployment benefits, penalties, and interest is first
applied to the benefits overpaid, then to the penalty amount due, then to any interest due.
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.

(d) new text beginThe department is authorized to issue new text enda determination of overpayment penalty under
this subdivision deleted text beginmay be issueddeleted text end within 48 months of the establishment of the benefit account
upon which the unemployment benefits were obtained through deleted text beginfrauddeleted text endnew text begin misrepresentationnew text end.

Sec. 17.

Minnesota Statutes 2016, section 268.18, subdivision 2b, is amended to read:


Subd. 2b.

Interest.

On any unemployment benefits deleted text beginfraudulentlydeleted text end obtainednew text begin by
misrepresentation
new text end, and any penalty amounts assessed under subdivision 2, the commissioner
must assess interest at the rate of one percent per month on any amount that remains unpaid
beginning 30 calendar days after the date of a determination of overpayment penalty. A
determination of overpayment penalty must state that interest will be assessed. Interest is
assessed in the same manner as on employer debt under section 268.057, subdivision 5.
Interest payments collected under this subdivision are credited to the trust fund.

Sec. 18.

Minnesota Statutes 2016, section 268.18, subdivision 5, is amended to read:


Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of
unemployment benefits, including any penalties and interest, is not deleted text beginconsidereddeleted text end 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 deleted text beginconsidereddeleted text end an election of a remedy and does not prevent the
commissioner from determining deleted text beginanydeleted text endnew text begin an applicant ineligible fornew text end unemployment benefits
deleted text begin overpaid under subdivision 1 or 2deleted text end or taking action under section 268.182.

Sec. 19.

Minnesota Statutes 2016, section 268.182, is amended to read:


268.182 deleted text beginAPPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF
FACTS
deleted text endnew text begin FRAUDnew text end; new text beginCRIMINAL new text endPENALTY.

Subdivision 1.

Criminal penalties.

deleted text beginWhoeverdeleted text end new text beginAn individual has committed fraud and is
guilty of theft and must be sentenced under section 609.52 if the individual
new text endobtains, or
attempts to obtain, or aids or abets any new text beginother new text endindividual to obtainnew text begin,new text end by deleted text beginmeans ofdeleted text end an intentional
false statement or representation, by intentional concealment of a material fact, or by
impersonation or other fraudulent means, unemployment benefits that the individual is not
entitled deleted text beginor unemployment benefits greater than the individual is entitleddeleted text endnew text begin tonew text end under this chapter,
or under deleted text beginthedeleted text endnew text begin federalnew text end law deleted text beginof any state or of the federal government, either personally or for
any other individual, is guilty of theft and must be sentenced under section 609.52
deleted text end.

Subd. 2.

Administrative penalties.

(a) Any applicant who deleted text beginknowingly makes a false
statement or representation, who knowingly fails to disclose a material fact, or who
deleted text end makes
a false statement or representation without a good faith belief as to the correctness of the
statement or representation, in order to obtain or in an attempt to obtain unemployment
benefits may be assessed, in addition to any other penalties, an administrative penalty of
being ineligible for unemployment benefits for 13 to 104 weeks.

(b) A determination of ineligibility setting out the weeks the applicant is ineligible must
be sent to the applicant by mail or electronic transmission. new text beginThe department is authorized to
issue
new text enda determination of ineligibility under this subdivision deleted text beginmay be issueddeleted text end within 48 months
of the establishment of the benefit account upon which the unemployment benefits were
obtained, or attempted to be obtained. Unless an appeal is filed within 20 calendar days of
sending, the determination is final. Proceedings on the appeal are conducted in accordance
with section 268.105.

Sec. 20.

Minnesota Statutes 2016, section 268.184, is amended to read:


268.184 EMPLOYER deleted text beginMISCONDUCT; PENALTYdeleted text endnew text begin MISREPRESENTATION AND
MISREPORTING; ADMINISTRATIVE PENALTIES
new text end.

Subdivision 1.

new text beginMisrepresentation; new text endadministrative penalties.

(a) The commissioner
must penalize an employer if that employer or any employee, officer, or agent of that
employerdeleted text begin, is in collusion with any applicant for the purpose of assisting the applicant to
receive unemployment benefits fraudulently. The penalty is $500 or the amount of
unemployment benefits determined to be overpaid, whichever is greater.
deleted text end

deleted text begin (b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer: (1) made a false statement or representation knowing it
to be false; (2)
deleted text end made a false statement or representation without a good faith belief as to
correctness of the statement or representationdeleted text begin; (3)deleted text endnew text begin ornew text end knowingly failed to disclose a material
factdeleted text begin; or (4) made an offer of employment to an applicant when, in fact, the employer had
no employment available.
deleted text endnew text begin in order to:
new text end

new text begin (1) assist an applicant to receive unemployment benefits to which the applicant is not
entitled;
new text end

new text begin (2) prevent or reduce the payment of unemployment benefits to an applicant; or
new text end

new text begin (3) avoid or reduce any payment required from an employer under this chapter or section
116L.20.
new text end

The penalty is the greater of $500 or 50 percent of the following resulting from the employer's
action:

(i) the amount of any overpaid unemployment benefits to an applicant;

(ii) the amount of unemployment benefits not paid to an applicant that would otherwise
have been paid; or

(iii) the amount of any payment required from the employer under this chapter or section
116L.20 that was not paid.

deleted text begin (c)deleted text endnew text begin (b)new text end The commissioner must penalize an employer if that employer failed or refused
to honor a subpoena issued under section 268.188. The penalty is $500 and any costs of
enforcing the subpoena, including attorney fees.

deleted text begin (d)deleted text endnew text begin (c)new text end Penalties under this subdivision and under section 268.047, subdivision 4,
paragraph (b), are in addition to any other penalties and subject to the same collection
procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of
issuance of the determination of penalty and credited to the trust fund.

deleted text begin (e)deleted text endnew text begin (d)new text end The determination of penalty is final unless the employer files an appeal within
20 calendar days after the sending of the determination of penalty to the employer by mail
or electronic transmission. Proceedings on the appeal are conducted in accordance with
section 268.105.

Subd. 1a.

Notification and misreporting penalties.

(a) If the commissioner finds that
any employer or agent of an employer failed to meet the notification requirements of section
268.051, subdivision 4, the employer must be assessed a penalty of $5,000 or two percent
of the first full quarterly payroll acquired, whichever is higher. Payroll is wages paid as
defined in section 268.035, subdivision 30. The penalty under this paragraph must be
canceled if the commissioner determines that the failure occurred because of ignorance or
inadvertence.

(b) If the commissioner finds that any individual advised an employer to violate the
employer's notification requirements under section 268.051, subdivision 4, the individual,
and that individual's employer, must each be assessed the penalty in paragraph (a).

(c) If the commissioner finds that any person or agent of a person violated the reporting
requirements of section 268.046, the person must be assessed a penalty of $5,000 or two
percent of the quarterly payroll reported in violation of section 268.046, whichever is higher.
Payroll is wages paid as defined in section 268.035, subdivision 30.

(d) Penalties under this subdivision are in addition to any other penalties and subject to
the same collection procedures that apply to past due amounts from an employer. Penalties
must be paid within 30 calendar days after sending of the determination of penalty and
credited to the trust fund.

(e) The determination of penalty is final unless the person assessed files an appeal within
20 calendar days after sending of the determination of penalty by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

Subd. 2.

Criminal penalties.

Any employer or any officer or agent of an employer or
any other individual deleted text beginwhodeleted text endnew text begin has committed fraud and is guilty of a crime, if in order to avoid
or reduce any payment required from an employer under this chapter or section 116L.20,
or to prevent or reduce the payment of unemployment benefits to an applicant
new text end:

(1) makes a false statement or representation knowing it to be false;

(2) knowingly fails to disclose a material fact, including notification required under
section 268.051, subdivision 4; or

(3) knowingly advises or assists an employer in violating clause (1) or (2)deleted text begin, to avoid or
reduce any payment required from an employer under this chapter or section 116L.20, or
to prevent or reduce the payment of unemployment benefits to any applicant,
deleted text endnew text begin.
new text end

new text begin The individualnew text end is guilty of a gross misdemeanor deleted text beginunlessdeleted text endnew text begin ifnew text end the underpayment deleted text beginexceedsdeleted text endnew text begin isnew text end $500deleted text begin,
in that case
deleted text endnew text begin or less.new text end The individual is guilty of a felonynew text begin if the underpayment exceeds $500new text end.

Sec. 21.

Minnesota Statutes 2016, section 268.194, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

There is established as a special state trust fund, separate
and apart from all other public money or funds of this state, an unemployment insurance
trust fund, that is administered by the commissioner exclusively for the payment of
unemployment benefits. This trust fund consists of:

(1) all taxes collected;

(2) interest earned upon any money in the trust fund;

(3) reimbursements paid by nonprofit organizationsnew text begin,new text end and the state and political
subdivisions;

(4) tax rate buydown payments under section 268.051, subdivision 7;

(5) deleted text beginanydeleted text end money received as a loan from the federal unemployment trust fund in accordance
with United States Code, title 42, section 1321, of the Social Security Act;

(6) deleted text beginany otherdeleted text end money received under a deleted text beginreciprocal unemployment benefitdeleted text endnew text begin combined wagenew text end
arrangement with the federal government or any other state;

new text begin (7) money received from the federal government for unemployment benefits paid under
a federal program;
new text end

deleted text begin (7)deleted text endnew text begin (8)new text end money recovered on overpaid unemployment benefits;

deleted text begin (8)deleted text endnew text begin (9)new text end all money credited to the account under this chapter;

deleted text begin (9)deleted text endnew text begin (10)new text end all money credited to the account of Minnesota in the federal unemployment
trust fund under United States Code, title 42, section 1103, of the Social Security Act, also
known as the Reed Act; and

deleted text begin (10)deleted text endnew text begin (11)new text end all money received for the trust fund from any other source.

Sec. 22.

Minnesota Statutes 2016, section 268.194, subdivision 4, is amended to read:


Subd. 4.

Reimbursements.

The commissioner is authorized to make to other state or
federal agencies and to receive from other state or federal agencies, reimbursements from
or to the trust fund, in accordance with deleted text beginreciprocaldeleted text endnew text begin combined wagenew text end arrangements entered
into under section 268.131.

Money received under a deleted text beginreciprocal agreementdeleted text endnew text begin combined wage arrangementnew text end must be
placed directly in the unemployment benefit payment account of the trust fund.

Sec. 23. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In the following sections of Minnesota Statutes, the revisor of statutes shall delete the
term "considered": Minnesota Statutes, sections 268.035, subdivisions 21c and 26; 268.07,
subdivision 1; 268.085, subdivisions 4a, 13c, 15, and 16; 268.095, subdivision 3; 268.101,
subdivision 6; and 268.105, subdivisions 3a and 7.
new text end

Sec. 24. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin (a) In Minnesota Statutes, section 268.18, the revisor of statutes shall change the term
"fraud" to "misrepresentation" and "nonfraud" to "nonmisrepresentation."
new text end

new text begin (b) The revisor of statutes shall renumber Minnesota Statutes, section 268.184,
subdivision 2, as Minnesota Statutes, section 268.182, paragraph (b).
new text end

new text begin (c) The revisor of statutes shall renumber Minnesota Statutes, section 268.182, subdivision
2, as Minnesota Statutes, section 268.183.
new text end

new text begin (d) The revisor of statutes shall make cross-reference changes needed arising out of the
renumbering in article 2, section 1.
new text end

Sec. 25. new text begin REPEALER.
new text end

new text begin Laws 2005, chapter 112, article 1, section 14, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Session Laws: SF1549-1

Laws 2005, chapter 112, article 1, section 14 by Laws 2017, chapter 35, article 3, section 25

Sec. 14. MANDATORY FEDERAL IMPLEMENTATION REQUIREMENT.

The commissioner must implement systems and processes to detect, investigate, and enforce section 268.051, subdivisions 4 and 4a.