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Minnesota Legislature

Office of the Revisor of Statutes

SF 167

4th Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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

Current Version - 4th Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31
1.32 1.33
1.34 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 3.1 3.2
3.3 3.4
3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
3.14
3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33
4.1 4.2
4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11
5.12 5.13
5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22
5.23
5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12
6.13
6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 7.1 7.2 7.3
7.4 7.5
7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32
7.33 7.34
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12
8.13 8.14
8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34
9.1 9.2
9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35
10.1 10.2
10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29
10.30
10.31 10.32 10.33 10.34 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20
11.21 11.22
11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21
12.22 12.23 12.24
12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26
13.27 13.28
13.29 13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11
15.12 15.13
15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 16.1 16.2 16.3 16.4 16.5
16.6 16.7
16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 16.35 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9
17.10 17.11
17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11
18.12 18.13
18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 19.1 19.2 19.3 19.4
19.5
19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30
19.31
19.32 20.1 20.2 20.3
20.4 20.5
20.6 20.7 20.8 20.9 20.10
20.11 20.12
20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31
20.32
21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10
21.11
21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19
21.20 21.21
21.22 21.23 21.24 21.25 21.26 21.27
21.28 21.29
21.30 21.31 21.32 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29
22.30 22.31
22.32 22.33 22.34 22.35 23.1 23.2 23.3 23.4 23.5 23.6 23.7
23.8 23.9
23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 24.1 24.2 24.3
24.4 24.5 24.6 24.7 24.8 24.9
24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17
24.18 24.19
24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 25.36 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12
26.13 26.14
26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 27.1 27.2
27.3 27.4
27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31
27.32
27.33 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 28.36
29.1
29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13
29.14 29.15
29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31
29.32 29.33
30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11
30.12 30.13
30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12
31.13 31.14
31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 31.35 32.1 32.2
32.3 32.4
32.5 32.6 32.7 32.8 32.9 32.10 32.11
32.12
32.13 32.14
32.15 32.16 32.17 32.18
32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26
32.27 32.28 32.29 32.30 33.1 33.2 33.3
33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30
33.31 33.32 33.33 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8
34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27
35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9
36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 38.1 38.2
38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13
38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32
39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13
39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 40.1 40.2 40.3 40.4 40.5 40.6
40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30
40.31 40.32 40.33 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8
41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 42.1 42.2 42.3 42.4 42.5 42.6
42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14
42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26
42.27 42.28 42.29 42.30 42.31 42.32 42.33 43.1 43.2 43.3
43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15
43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35
45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25
45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 45.35 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8
46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32
46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11
47.12 47.13 47.14 47.15
47.16 47.17
47.18 47.19 47.20
47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10
48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28
48.29 48.30 48.31 48.32 48.33 48.34 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 50.36 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26
51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23
52.24 52.25 52.26 52.27 52.28
52.29 52.30
52.31 52.32
52.33 53.1 53.2 53.3 53.4 53.5 53.6
53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18
54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31
54.32 55.1 55.2 55.3 55.4 55.5 55.6 55.7
55.8 55.9 55.10 55.11 55.12 55.13
55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24
55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 56.36 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 57.36 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 58.36 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35 60.36
61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18
61.19 61.20 61.21
61.22 61.23 61.24
61.25 61.26
61.27 61.28 61.29
61.30 61.31 62.1 62.2
62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10
62.11 62.12 62.13 62.14 62.15
62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9
63.10 63.11 63.12
63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21
64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29
64.30 64.31 64.32 64.33 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 66.36 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35 67.36 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9
68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29
68.30 68.31 68.32 68.33 68.34 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 70.1 70.2
70.3 70.4 70.5 70.6 70.7 70.8
70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18
70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 71.1 71.2 71.3
71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14
71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23
71.24 71.25 71.26 71.27 71.28 71.29 71.30
71.31 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19
72.20 72.21 72.22 72.23
72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32
73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21
75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34
76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13
76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27
76.28 76.29 76.30 76.31 76.32
76.33 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8
77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34
78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25
78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 78.35 79.1 79.2 79.3 79.4 79.5
79.6 79.7 79.8 79.9 79.10
79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31
79.32 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32
80.33 80.34 80.35 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11
81.12 81.13 81.14 81.15 81.16 81.17 81.18
81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 82.1 82.2 82.3 82.4 82.5 82.6 82.7
82.8 82.9 82.10 82.11 82.12 82.13
82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24
82.25 82.26 82.27 82.28 82.29 82.30 82.31
82.32 83.1 83.2 83.3 83.4
83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13
83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 84.35 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 85.34 85.35 85.36 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 86.36 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29
87.30 87.31 87.32 87.33 87.34 87.35 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19
89.20 89.21 89.22 89.23 89.24 89.25 89.26
89.27 89.28 89.29 89.30 89.31 89.32 89.33 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13
90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27
90.28 90.29 90.30 90.31 90.32 90.33 90.34 91.1 91.2 91.3 91.4 91.5 91.6
91.7 91.8 91.9 91.10 91.11
91.12 91.13 91.14 91.15 91.16 91.17
91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30
91.31 92.1 92.2
92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14
92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33
93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20
93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35 94.36 95.1 95.2
95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15
95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23
95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 96.1 96.2 96.3 96.4 96.5
96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16
96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 97.1 97.2 97.3 97.4 97.5 97.6
97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34
98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21
98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 98.34
99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13
99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34
100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24
100.25 100.26 100.27 100.28 100.29
100.30 100.31 100.32 100.33 100.34 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8
101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19
101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9
102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8
103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20
103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 104.1 104.2
104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10
104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21
104.22 104.23 104.24 104.25 104.26 104.27 104.28
104.29 104.30 104.31 104.32 105.1 105.2 105.3 105.4
105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19
105.20 105.21 105.22 105.23 105.24 105.25
105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23
106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 107.35 107.36 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34 108.35 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22
109.23 109.24 109.25 109.26
109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34
110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34 110.35 110.36 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35
112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19
112.20 112.21 112.22 112.23 112.24
112.25 112.26 112.27
112.28 112.29 112.30 112.31 112.32 112.33 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25
113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33
113.34 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14
114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22
114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15
115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34
116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12
116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27
116.28 116.29 116.30 116.31 116.32 116.33 116.34
117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28
117.29 117.30 117.31 117.32 117.33 118.1 118.2 118.3 118.4 118.5
118.6 118.7 118.8 118.9
118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18
118.19 118.20 118.21 118.22 118.23 118.24 118.25
118.26 118.27 118.28 118.29 118.30 118.31 119.1 119.2 119.3
119.4 119.5
119.6 119.7
119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 119.34 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32
120.33 120.34
121.1 121.2
121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15
121.16

A bill for an act
relating to unemployment insurance; making various policy, housekeeping, and
style changes to the Minnesota Unemployment Insurance Law; incorporating
certain administrative rules into Minnesota Statutes; modifying fraud penalties;
providing extra benefits for certain workers laid off from Ainsworth Lumber
Company; providing a waiver from certain filing requirements for certain
Northwest Airlines workers; amending Minnesota Statutes 2006, sections
268.001; 268.03, subdivisions 1, 2; 268.035, subdivisions 1, 4, 9, 10, 11, 12, 13,
14, 15, 17, 20, 21a, 23, 23a, 24, 26, 29, 30, by adding a subdivision; 268.042,
subdivisions 1, 3, 4; 268.043; 268.0435; 268.044, subdivisions 1, 1a, 2, 3, 4;
268.045, subdivision 1; 268.046; 268.047, subdivisions 1, 2, 3, 5; 268.051,
subdivisions 1, 1a, 2, 3, 4, 4a, 5, 6, 7, 8, 9; 268.052, subdivisions 1, 2, 3, 4, 5;
268.0525; 268.053, subdivisions 1, 2, 3; 268.057, subdivisions 1, 2, 3, 4, 5, 6, 7,
10; 268.058; 268.059; 268.0625, subdivisions 4, 5; 268.063; 268.064; 268.065,
subdivisions 1, 3; 268.066; 268.067; 268.0675; 268.068; 268.069, subdivisions
1, 2, 3; 268.07, subdivisions 1, 2, 3a, 3b; 268.084; 268.085, subdivisions 1, 2,
3, 3a, 4, 5, 6, 7, 8, 9, 11, 12, 13, 13a, 13b, 13c, 16; 268.086, subdivisions 1, 2,
3, 5, 6, 7, 8, 9; 268.087; 268.095, subdivisions 1, 2, 3, 4, 5, 6, 6a, 7, 10, 11;
268.101; 268.103, subdivisions 1, 2; 268.105, subdivisions 1, 2, 3, 3a, 4, 5,
6, 7; 268.115; 268.125, subdivisions 3, 4, 5; 268.131, subdivision 1; 268.135;
268.145, subdivisions 1, 2, 3; 268.155; 268.18, subdivisions 1, 2, 2b, 4, 5,
6; 268.182, subdivisions 1, 2; 268.184, subdivisions 1, 1a; 268.186; 268.188;
268.19, subdivisions 1, 1a, 2; 268.192; 268.194, subdivisions 1, 2, 3, 4, 5, 6;
268.196, subdivisions 1, 3; 268.20; 268.21; 268.22; 268.23; proposing coding for
new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes 2006,
sections 268.0435; 268.0511; 268.085, subdivision 10; 268.103, subdivision
4; Minnesota Rules, parts 3315.0210; 3315.0220; 3315.0515; 3315.0520;
3315.0525; 3315.0530, subparts 2, 3, 4, 5, 6; 3315.0540; 3315.0550; 3315.0910,
subparts 1, 2, 3, 4, 5, 6, 7, 8; 3315.1005, subparts 1, 3; 3315.1315, subpart 4;
3315.2010; 3315.2810, subparts 2, 4.

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

ARTICLE 1

POLICY CHANGES

Section 1.

Minnesota Statutes 2006, section 268.035, subdivision 4, is amended to read:


Subd. 4.

Base period.

"Base period" means:

(1) the first four of the last five completed calendar quarters deleted text beginprior todeleted text endnew text begin beforenew text end the
effective date of an applicant's deleted text beginbenefit accountdeleted text endnew text begin application for unemployment benefitsnew text end
as set forth below:

If the deleted text beginbenefit accountdeleted text endnew text beginapplication
for unemployment benefits
new text end is
effective on or between these
dates:
The base period is the
prior:
January 1 - March 31
October 1 - September 30
April 1 - June 30
January 1 - December 31
July 1 - September 30
April 1 - March 31
October 1 - December 31
July 1 - June 30

(2) ifnew text begin the applicant has insufficient wage credits to establish a benefit account under
clauses (1) and (3), and
new text end during the base period under clause (1) an applicant received
workers' compensation for temporary disability under chapter 176 or a similar federal law
or similar law of another state, or if an applicant whose own serious illness caused a loss
of work for which the applicant received compensation for loss of wages from some other
source, the applicant may request deleted text begina deleted text endnew text beginan extended new text endbase period as follows:

(i) if an applicant was compensated for a loss of work of seven to 13 weeks, the base
period deleted text beginshall bedeleted text endnew text begin isnew text end the first four of the last six completed calendar quarters deleted text beginprior todeleted text endnew text begin beforenew text end
the effective date of the deleted text beginbenefit accountdeleted text endnew text begin application for unemployment benefitsnew text end;

(ii) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base
period deleted text beginshall bedeleted text endnew text begin isnew text end the first four of the last seven completed calendar quarters deleted text beginprior todeleted text endnew text begin beforenew text end
the effective date of the deleted text beginbenefit accountdeleted text endnew text begin application for unemployment benefitsnew text end;

(iii) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base
period deleted text beginshall bedeleted text endnew text begin isnew text end the first four of the last eight completed calendar quarters deleted text beginprior todeleted text endnew text begin beforenew text end
the effective date of the deleted text beginbenefit accountdeleted text endnew text begin application for unemployment benefitsnew text end; and

(iv) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base
period deleted text beginshall bedeleted text endnew text begin isnew text end the first four of the last nine completed calendar quarters deleted text beginprior todeleted text endnew text begin beforenew text end
the effective date of the deleted text beginbenefit accountdeleted text endnew text begin application for unemployment benefitsnew text end;

(3) if the applicant deleted text beginqualifies for a base period under clause (2), butdeleted text end has insufficient
wage credits to establish a benefit accountdeleted text begin, the applicant may request a deleted text endnew text begin under clause (1),
an alternate
new text endbase period of the last four completed calendar quarters deleted text beginprior todeleted text endnew text begin beforenew text end the
date the applicant's deleted text beginbenefit accountdeleted text endnew text begin application for unemployment benefitsnew text end is effectivenew text begin will
be used
new text end. This base period deleted text beginmaydeleted text endnew text begin cannew text end be used only deleted text beginonce during any five-calendar-year perioddeleted text endnew text begin
30 calendar days or more after the end of the last completed quarter, when a wage detail
report has been, or should have been, filed for that quarter under section 268.044
new text end; and

(4) no base period under clause (1), (2), or (3) deleted text beginshalldeleted text endnew text begin maynew text end include wage credits upon
which a prior benefit account was established.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to applications for unemployment
benefits filed effective on or after September 30, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, section 268.035, subdivision 17, is amended to read:


Subd. 17.

Filing; filed.

"Filing" or "filed" means the delivery of any document to
the commissioner or any of the commissioner's agents, or the depositing of the document
in the United States mail properly addressed to the department with postage prepaid,
in which case the document deleted text beginshall bedeleted text endnew text begin isnew text end considered filed on the day indicated by the
cancellation mark of the United States Postal Service.

If, where allowed, an application, deleted text beginprotest,deleted text end appeal, or other required action is made
by electronic transmission, it deleted text beginshall bedeleted text endnew text begin isnew text end considered filed on the day received by the
department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 268.043, is amended to read:


268.043 DETERMINATIONS OF COVERAGE.

(a) The commissioner, upon the commissioner's own motion or upon application
of a person, shall determine if that deleted text beginorganization ordeleted text end person is an employer or whether
services performed for it constitute employment and covered employment, or whether
the compensation for services constitutes wages, and deleted text beginshalldeleted text end notify the person of the
determination. The determination deleted text beginshall bedeleted text endnew text begin isnew text end final unless the deleted text beginorganization ordeleted text end person, within
deleted text begin 30deleted text endnew text begin 20new text end calendar days after sending of the determination by mail or electronic transmission,
files deleted text begina protest. Upon receipt of a protest, the commissioner shall review all available
evidence and determine whether an error has been made. The commissioner shall send
to the person, by mail or electronic transmission, an affirmation or redetermination. The
affirmation or redetermination shall be final unless, within 30 calendar days after sending
of the affirmation or redetermination to the person by mail or electronic transmission,
deleted text end an
appeal deleted text beginis fileddeleted text end. Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end conducted in accordance with
section 268.105.

(b) No person deleted text beginshalldeleted text endnew text begin maynew text end be initially determined an employer, or that services
performed for it were in employment or covered employment, for periods more than four
years deleted text beginprior todeleted text endnew text begin beforenew text end the year in which the determination is made, unless the commissioner
finds that there was fraudulent action to avoid liability under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to determinations issued on or after
September 30, 2007.
new text end

Sec. 4.

Minnesota Statutes 2006, section 268.047, subdivision 2, is amended to read:


Subd. 2.

Exceptions for all employers.

Unemployment benefits paid deleted text beginshalldeleted text endnew text begin willnew text end not
be used in computing the future tax rate of a taxpaying base period employer or charged
to the reimbursable account of a base period nonprofit or government employer that has
elected to be liable for reimbursements when:

(1) the applicant was discharged from the employment because of aggravated
employment misconduct as determined under section 268.095. This exception deleted text beginshall applydeleted text endnew text begin
applies
new text end only to unemployment benefits paid for periods after the applicant's discharge
from employment;

(2) an applicant's discharge from that employment occurred because a law required
removal of the applicant from the position the applicant held;

(3)new text begin the employer is in the tourist or recreation industry and is in active operation of
business less than 15 calendar weeks each year and the applicant's wage credits from the
employer are less than 600 times the applicable state or federal minimum wage;
new text end

new text begin (4)new text end the employer provided regularly scheduled part-time employment to the
applicant during the applicant's base period and continues to provide the applicant with
regularly scheduled part-time employment during the benefit year of at least 90 percent
of the part-time employment provided in the base period, and is an involved employer
because of the applicant's loss of other employment. This exception deleted text beginshall terminatedeleted text endnew text begin
terminates
new text end effective the first week that the employer fails to meet the benefit year
employment requirements. This exception deleted text beginshall applydeleted text endnew text begin appliesnew text end to educational institutions
without consideration of the period between academic years or terms;

deleted text begin (4)deleted text endnew text begin (5)new text end the employer is a fire department or firefighting corporation or operator
of a life-support transportation service, and continues to provide employment for the
applicant as a volunteer firefighter or a volunteer ambulance service personnel during the
benefit year on the same basis that employment was provided in the base period. This
exception deleted text beginshall terminatedeleted text endnew text begin terminatesnew text end effective the first week that the employer fails to meet
the benefit year employment requirements;

deleted text begin (5)deleted text endnew text begin (6)new text end the applicant's unemployment from this employer was a direct result of
the condemnation of property by a governmental agency, a fire, flood, or act of nature,
where 25 percent or more of the employees employed at the affected location, including
the applicant, became unemployed as a result. This exception deleted text beginshalldeleted text endnew text begin doesnew text end not apply where
the unemployment was a direct result of the intentional act of the employer or a person
acting on behalf of the employer;

deleted text begin (6)deleted text endnew text begin (7)new text end the unemployment benefits were paid by another state as a result of the
transferring of wage credits under a combined wage arrangement provided for in section
268.131;

deleted text begin (7)deleted text endnew text begin (8)new text end the applicant stopped working because of a labor dispute at the applicant's
primary place of employment if the employer was not a party to the labor dispute;

deleted text begin (8)deleted text endnew text begin (9)new text end the unemployment benefits were determined overpaid unemployment benefits
under section 268.18; or

deleted text begin (9)deleted text endnew text begin (10)new text end the trust fund was reimbursed for the unemployment benefits by the federal
government.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to benefits paid on benefit accounts filed
effective on or after September 30, 2007.
new text end

Sec. 5.

Minnesota Statutes 2006, section 268.047, subdivision 5, is amended to read:


Subd. 5.

Notice of unemployment benefits paid.

(a) The commissioner shall notify
each employer at least quarterly by mail or electronic transmission of the unemployment
benefits paid each applicant that will be used in computing the future tax rate of a
taxpaying employer, or that have been charged to the reimbursable account of a nonprofit
or government employer that has elected to be liable for reimbursements.

(b) A notice under this subdivision deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end subject to deleted text beginprotest ordeleted text end appeal. The
commissioner may at any time upon the commissioner's own motion correct any error that
resulted in an incorrect notice under paragraph (a) and issue a corrected notice.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2007.
new text end

Sec. 6.

Minnesota Statutes 2006, section 268.051, subdivision 1, is amended to read:


Subdivision 1.

Payments.

(a) Unemployment insurance taxes and any additional
assessments, fees, or surcharges deleted text beginshalldeleted 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.

deleted text begin Except as allowed under section 268.0511,deleted text end Each employer deleted text beginshalldeleted text endnew text begin mustnew text end pay taxes
quarterly, at the employer's assigned tax rate under subdivision 6, on the taxable wages
paid to each employee. The commissioner shall compute the tax due from the wage
detail report required under section 268.044 and notify the employer of the tax due. The
taxes and any deleted text beginadditionaldeleted text endnew text begin specialnew text end assessments, fees, or surcharges deleted text beginshalldeleted text endnew text begin mustnew text end 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) The tax amount computed, if not a whole dollar, deleted text beginshall bedeleted text endnew text begin isnew text end rounded down to the
next lower whole dollar.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 268.051, subdivision 5, is amended to read:


Subd. 5.

Tax rate for new employers.

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

(b) Each new taxpaying employer in a high experience rating industry that does not
qualify for an experience rating under subdivision 3, deleted text beginshalldeleted text endnew text begin mustnew text end be assigned, for a calendar
year, a tax rate of 8.00 percent, plus the applicable base tax rate and any additional
assessments under subdivision 2, paragraph (d).

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

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

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

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

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

(c) The commissioner shall send to the new employer, by mail or electronic
transmission, notice of the tax rate assigned. An employer may deleted text beginprotestdeleted text endnew text begin appealnew text end the
assignment of a tax rate in accordance with the procedures in subdivision 6, paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to tax rate notices issued on or after
September 30, 2007.
new text end

Sec. 8.

Minnesota Statutes 2006, section 268.051, subdivision 6, is amended to read:


Subd. 6.

Notice of tax rate.

(a) On or before each December 15, the commissioner
shall notify each employer by mail or electronic transmission of the employer's tax rate,
along with any additional assessments, fees, or surcharges, for the following calendar
year. The notice deleted text beginshalldeleted text endnew text begin mustnew text end contain the base tax rate and the factors used in determining
the employer's experience rating. Unless deleted text begina protestdeleted text endnew text begin an appealnew text end of the tax rate is made,
the computed tax rate deleted text beginshall bedeleted text endnew text begin isnew text end final, except for fraud or recomputation required
under subdivision 4 or 4a, and deleted text beginshall bedeleted text endnew text begin isnew text end the rate at which taxes deleted text beginshalldeleted text endnew text begin mustnew text end be paid. A
recomputed tax rate under subdivision 4 or 4a deleted text beginshall bedeleted text endnew text begin isnew text end the rate applicable for the quarter
that includes the date of acquisition and any quarter thereafter during the calendar year in
which the acquisition occurred. The tax rate deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end subject to collateral attack by
way of claim for a credit adjustment or refund, or otherwise.

(b) If the legislature, deleted text beginsubsequent todeleted text endnew text begin afternew text end the sending of the tax rate, changes any of
the factors used to determine the rate, a new tax rate based on the new factors deleted text beginshalldeleted text endnew text begin mustnew text end
be computed and sent to the employer.

(c) A review of an employer's tax rate may be obtained by the employer filing deleted text begina
protest
deleted text endnew text begin an appealnew text end within deleted text begin30deleted text endnew text begin 20new text end calendar days from the date the tax rate notice was sent
to the employer. deleted text beginUpon receipt of the protest, the commissioner shall review the tax rate
to determine whether or not there has been any error in computation or assignment of
the tax rate. The commissioner shall either affirm or make a redetermination of the
rate and a notice of the affirmation or redetermination shall be sent to the employer by
mail or electronic transmission. The affirmation or redetermination shall be final unless
the employer files an appeal within 30 calendar days after the date the affirmation or
redetermination was sent.
deleted text end Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end conducted in accordance
with section 268.105.

(d) The commissioner may at any time upon the commissioner's own motion correct
any error in the deleted text begincomputation or the assignment of andeleted text end employer's tax rate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for determinations issued on or
after September 30, 2007.
new text end

Sec. 9.

Minnesota Statutes 2006, section 268.053, subdivision 2, is amended to read:


Subd. 2.

Determinationdeleted text begin, protest,deleted text end and appeal.

The commissioner shall notify each
nonprofit organization by mail or electronic transmission of any determination of its
status as an employer with covered employment and of the effective date of any election
or termination of election. The deleted text begindeterminations shall be final unless a protest is filed
within 30 calendar days after sending of the determination. Upon receipt of a protest, the
commissioner shall review all available evidence and determine whether an error has been
made. The commissioner shall send to the nonprofit organization, by mail or electronic
transmission, an affirmation or redetermination. The affirmation or redetermination shall
be
deleted text endnew text begin determination isnew text end final unless an appeal is filed within deleted text begin30deleted text endnew text begin 20new text end calendar days of sending
the deleted text beginaffirmation or redeterminationdeleted text endnew text begin determinationnew text end. Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end
conducted in accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for determinations issued on or
after September 30, 2007.
new text end

Sec. 10.

Minnesota Statutes 2006, section 268.057, subdivision 7, is amended to read:


Subd. 7.

Credit adjustments, refunds.

(a) If an employer makes an application
for a credit adjustment of any amount paid under this chapter or section 116L.20 within
four years of the date that the payment was due, in a manner and format prescribed by
the commissioner, and the commissioner determines that the payment or any portion was
erroneous, the commissioner shall make an adjustment and issue a credit without interest.
If a credit cannot be used, the commissioner shall refund, without interest, the amount
erroneously paid. The commissioner, on the commissioner's own motion, may make a
credit adjustment or refund under this subdivision.

Any refund returned to the commissioner deleted text beginshall bedeleted text endnew text begin isnew text end considered unclaimed property
under chapter 345.

(b) If a credit adjustment or refund is denied in whole or in part, a notice of denial
deleted text begin shalldeleted text endnew text begin mustnew text end be sent to the employer by mail or electronic transmission. deleted text beginWithin 30 calendar
days after sending of
deleted text end The notice of denialdeleted text begin, the employer may protest.
deleted text end

deleted text begin Upon receipt of a timely protest, the commissioner shall review the denial and
either affirm the denial or redetermine the credit adjustment or refund. The affirmation of
denial or redetermination of the credit adjustment or refund, sent by mail or electronic
transmission, shall be
deleted text endnew text begin isnew text end final unless an employer files an appeal within deleted text begin30deleted text endnew text begin 20new text end calendar
days after sending. Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end conducted in accordance with
section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all denials issued on or after
September 30, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 268.063, is amended to read:


268.063 PERSONAL LIABILITY.

(a) Any officer, director, or employee of a corporation or any manager, governor,
member, or employee of a limited liability company who

(1) either individually or jointly with others, have or should have had control
of, supervision over, or responsibility for paying the amounts due under this chapter
or section 116L.20, and

(2) knowingly fails to pay the amounts due, deleted text beginshall bedeleted text endnew text begin isnew text end personally liable for the
amount due in the event the employer does not pay.

For purposes of this section, "knowingly" means that the facts demonstrate that the
responsible individual used or allowed the use of corporate or company assets to pay other
creditors knowing that the amounts due under this chapter were unpaid. An evil motive or
intent to defraud is not necessary.

(b) Any partner of a limited liability partnership, or professional limited liability
partnership, deleted text beginshall bedeleted text endnew text begin isnew text end jointly and severally liable for any amount due under this chapter
or section 116L.20 in the event the employer does not pay.

(c) Any personal representative of the estate of a decedent or fiduciary who
voluntarily distributes the assets without reserving a sufficient amount to pay the amount
due deleted text beginshall bedeleted text endnew text begin isnew text end personally liable for the deficiency.

(d) The personal liability of any individual deleted text beginshall survivedeleted text endnew text begin survivesnew text end dissolution,
reorganization, receivership, or assignment for the benefit of creditors. For the purposes
of this section, all wages paid by the employer deleted text beginshall bedeleted text endnew text begin arenew text end considered earned from the
individual determined to be personally liable.

(e) The commissioner shall make a determination as to personal liability. The
determination deleted text beginshall bedeleted text endnew text begin isnew text end final unless the individual found to be personally liable,
within deleted text begin30deleted text endnew text begin 20new text end calendar days after sending, by mail or electronic transmission, a notice
of determination, files deleted text begina protest. Upon receipt of the protest, the commissioner shall
reexamine the personal liability determination and either affirm or redetermine the
assessment of personal liability and a notice of the affirmation or redetermination
shall be sent to the individual by mail or electronic transmission. The affirmation or
redetermination shall become final unless
deleted text end an appeal deleted text beginis filed within 30 calendar days after
the date of sending
deleted text end. Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end conducted in accordance
with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for determinations issued on or
after September 30, 2007.
new text end

Sec. 12.

Minnesota Statutes 2006, section 268.07, subdivision 2, is amended to read:


Subd. 2.

Benefit account requirements and weekly unemployment benefit
amount and maximum amount of unemployment benefits.

(a) To establish a benefit
account, an applicant must have:

(1) high quarter wage credits of deleted text beginat leastdeleted text end $1,000new text begin or morenew text end; and

(2) wage credits, in other than the high quarter, of deleted text beginat leastdeleted text end $250new text begin or morenew text end.

(b) If an applicant has established a benefit account, the weekly unemployment
benefit amount available during the benefit year deleted text beginshall bedeleted text endnew text begin isnew text end the higher of:

(1) 50 percent of the applicant's average weekly wage during the base period, to a
maximum of 66-2/3 percent of the state's average weekly wage; or

(2) 50 percent of the applicant's average weekly wage during the high quarter, to a
maximum of deleted text begin45deleted text endnew text begin 43new text end percent of the state's average weekly wage.

The applicant's average weekly wage under clause (1) deleted text beginshall bedeleted text endnew text begin isnew text end computed by
dividing the total wage credits by 52. The applicant's average weekly wage under clause
(2) deleted text beginshall bedeleted text endnew text begin isnew text end computed by dividing the high quarter wage credits by 13.

(c) The state's maximum weekly unemployment benefit amount and an applicant's
weekly unemployment benefit amount and maximum amount of unemployment benefits
available deleted text beginshall bedeleted text endnew text begin isnew text end rounded down to the next lower whole dollar. The state's maximum
weekly benefit amount, computed in accordance with section 268.035, subdivision 23,
deleted text begin shall applydeleted text endnew text begin appliesnew text end to a benefit account established effective on or after the deleted text beginfirstdeleted text endnew text begin lastnew text end
Sunday in deleted text beginAugustdeleted text endnew text begin Octobernew text end. Once established, an applicant's weekly unemployment benefit
amount deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end affected by the deleted text beginfirstdeleted text endnew text begin lastnew text end Sunday in deleted text beginAugustdeleted text endnew text begin Octobernew text end change in the
state's maximum weekly unemployment benefit amount.

(d) The maximum amount of unemployment benefits available on any benefit
account deleted text beginshall bedeleted text endnew text begin isnew text end the lower of:

(1) 33-1/3 percent of the applicant's total wage credits; or

(2) 26 times the applicant's weekly unemployment benefit amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 1, 2007.
new text end

Sec. 13.

Minnesota Statutes 2006, section 268.085, subdivision 2, is amended to read:


Subd. 2.

Not eligible.

An applicant deleted text beginshall not be eligible to receivedeleted text endnew text begin is ineligible fornew text end
unemployment benefits for any week:

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

(2) new text beginthat the applicant, at the beginning of the week, has an outstanding fraud
overpayment balance under section 268.18, subdivision 2, including any penalties and
interest;
new text end

new text begin (3) new text endthat occurs in a period when the applicant is a student in attendance at, or on
vacation from a secondary school including the period between academic years or terms;

deleted text begin (3)deleted text endnew text begin (4)new text end that the applicant is incarcerated or performing court ordered community
service. The applicant's weekly unemployment benefit amount deleted text beginshall bedeleted text endnew text begin isnew text end reduced by
one-fifth for each day the applicant is incarcerated or performing court ordered community
service. If the computation of the reduced unemployment benefits is not a whole dollar, it
deleted text begin shall bedeleted text endnew text begin isnew text end rounded down to the next lower whole dollar;

deleted text begin (4)deleted text endnew text begin (5)new text end that the applicant fails or refuses to provide information on an issue of
deleted text begin eligibilitydeleted text endnew text begin ineligibilitynew text end required under section 268.101 deleted text beginor an issue of disqualification
required under section 268.101
deleted text end;

deleted text begin (5)deleted text endnew text begin (6)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 (7)new text end with respect to which the applicant is receiving, has received, or 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 the
unemployment benefits, this clause deleted text beginshalldeleted text endnew text begin doesnew text end not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective and applies to all outstanding fraud
overpayment balances, including penalty and interest, as of September 30, 2007.
new text end

Sec. 14.

Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:


Subd. 3.

Payments that delay unemployment benefits.

(a) An applicant deleted text beginshalldeleted text endnew text begin isnew text end
not deleted text beginbedeleted text end eligible to receive unemployment benefits for any week with respect to which the
applicant is receiving, has received, or has filed for payment, equal to or in excess of the
applicant's weekly unemployment benefit amount, in the form of:

(1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
deleted text begin shalldeleted text endnew text begin doesnew text end not apply to vacation pay paid upon a permanent separation from employment;

(2) severance pay, bonus pay, sick pay, and any other deleted text beginmoneydeleted text end payments, except
earnings under subdivision 5, and back pay under subdivision 6, paid by an employer
because of, upon, or after separation from employment, but only if the deleted text beginmoneydeleted text end payment is
considered wages at the time of payment under section 268.035, subdivision 29deleted text begin, or United
States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act
deleted text end;new text begin or
new text end

(3) pension, retirement, or annuity payments from any plan contributed to by a base
period employer including the United States government, except Social Security benefits
deleted text begin whichdeleted text endnew text begin thatnew text end are provided for in subdivision 4. The base period employer new text beginis considered to
have
new text endcontributed to the plan if the contribution is excluded from the definition of wages
under section 268.035, subdivision 29, clause (1)deleted text begin, or United States Code, title 26, section
3121, clause (2), of the Federal Insurance Contribution Act
deleted text end.

An applicant deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered to have received the lump sum payment if the
applicant immediately deposits that payment in a qualified pension plan or accountdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (4) holiday pay.
deleted text end

(b) This subdivision deleted text beginshall applydeleted text endnew text begin appliesnew text end to all the weeks of payment deleted text beginand shall bedeleted text endnew text begin.
Payments under paragraph (a), clauses (1) and (2), are
new text end applied to the period immediately
following the last day of employmentdeleted text begin.deleted text end new text beginand new text endthe number of weeks of payment deleted text beginshall bedeleted text endnew text begin, for
purposes of those clauses, is
new text end determined as follows:

(1) if the payments are made periodically, the total of the payments to be received
deleted text begin shall bedeleted text endnew text begin isnew text end divided by the applicant's last level of regular weekly pay from the employer; or

(2) if the payment is made in a lump sum, that sum deleted text beginshall bedeleted text endnew text begin isnew text end divided by the
applicant's last level of regular weekly pay from the employer.

(c) If the payment is less than the applicant's weekly unemployment benefit
amount, unemployment benefits deleted text beginshall bedeleted text endnew text begin arenew text end reduced by the amount of the payment. If
the computation of reduced unemployment benefits is not a whole dollar, it deleted text beginshall bedeleted text endnew text begin isnew text end
rounded down to the next lower whole dollar.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for unemployment benefits paid on
or after September 30, 2007, regardless of when the continued request was filed or the
week for which the unemployment benefits are paid.
new text end

Sec. 15.

Minnesota Statutes 2006, section 268.085, subdivision 4, is amended to read:


Subd. 4.

Social Security benefits.

(a) Any applicant aged 62 or over deleted text beginshall bedeleted text endnew text begin isnew text end
required to state when filing an application for unemployment benefits and when filing
continued deleted text beginbiweeklydeleted text end requests for unemployment benefits deleted text beginwhetherdeleted text endnew text begin ifnew text end the applicant is
receiving, has filed for, or intends to file for, primary Social Security old age benefits for
any week during the benefit year.

new text begin If the effective date of the applicant's Social Security claim for old age benefits
is, or will be, after the start of the base period,
new text endthere deleted text beginshalldeleted text endnew text begin mustnew text end be deducted from an
applicant's weekly unemployment benefit amount 50 percent of the weekly equivalent of
the primary Social Security old age benefit the applicant has received, has filed for, or
intends to file for, with respect to that week.

new text begin If the effective date of the applicant's Social Security claim for old age benefits is
before the start of the base period, there is no deduction from the applicant's weekly
unemployment benefit amount.
new text end

(b) An applicant who is receiving, has received, or has filed for primary Social
Security disability benefits for any week during the benefit year deleted text beginshalldeleted text endnew text begin mustnew text end be determined
unable to work and unavailable for suitable employment for that week, unless:

(1) the Social Security Administration approved the collecting of primary Social
Security disability benefits each month the applicant was employed during the base
period; or

(2) the applicant provides a statement from an appropriate health care professional
who is aware of the applicant's Social Security disability claim and the basis for that claim,
certifying that the applicant is able to work and available for suitable employment.

If an applicant meets the requirements of clause (1) deleted text beginordeleted text endnew text begin there is no deduction from
the applicant's weekly benefit amount for any Social Security disability benefits. If
only clause
new text end (2)new text begin appliesnew text end, then there deleted text beginshalldeleted text endnew text begin mustnew text end be deducted from the applicant's weekly
unemployment benefit amount 50 percent of the weekly equivalent of the primary Social
Security disability benefits the applicant is receiving, has received, or has filed for, with
respect to that week; provided, however, that if the Social Security Administration
determines that an individual is not entitled to receive primary Social Security disability
benefits for any week the applicant has applied for those benefits, the 50 percent deduction
deleted text begin shalldeleted text endnew text begin doesnew text end not apply to that week.

(c) Information from the Social Security Administration deleted text beginshall bedeleted text endnew text begin isnew text end considered
conclusive, absent specific evidence showing that the information was erroneous.

(d) If the computation of the reduced unemployment benefits is not a whole dollar, it
deleted text begin shall bedeleted text endnew text begin isnew text end rounded down to the next lower whole dollar.

(e) This subdivision does not apply to Social Security survivor benefits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for unemployment insurance benefit
accounts filed effective on or after September 30, 2007.
new text end

Sec. 16.

Minnesota Statutes 2006, section 268.095, subdivision 1, is amended to read:


Subdivision 1.

Quit.

An applicant who quit employment deleted text beginshall be disqualified fromdeleted text endnew text begin
is ineligible for
new text end 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 substantially better terms and conditions of employment, but the applicant did
not work long enough at the second employment to have sufficient subsequent earnings to
satisfy the deleted text begindisqualificationdeleted text endnew text begin period of ineligibilitynew text end 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 because the employment was unsuitable for the applicant;

(4) the employment was unsuitable for the applicant 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 deleted text beginnondisqualifyingdeleted text end reasonsnew text begin for which the applicant was held not to be ineligiblenew text end, 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 deleted text begindue todeleted text endnew text begin because ofnew text end lack of work within 30 calendar days. An
applicant who quit employment within 30 calendar days of a notified date of layoff deleted text begindue todeleted text endnew text begin
because of
new text end lack of work deleted text beginshall be disqualified fromdeleted text endnew text begin is ineligible fornew text end unemployment benefits
through the end of the week that includes the scheduled date of layoff;

(7) the applicant quit the employment because the applicant's serious illness or
injury made it medically necessary that the applicant quit, provided that the applicant
inform the employer of the serious illness or injury and request accommodation and no
reasonable accommodation is made available.

If the applicant's serious illness is chemical dependency, this exception deleted text beginshalldeleted text endnew text begin doesnew text end
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 dependencydeleted text begin; ordeleted text endnew text begin.
new text end

new text begin This exception raises an issue of the applicant's being able to work under section
268.085, subdivision 1, that the commissioner shall determine;
new text end

(8) new text beginthe 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.
new text end

new text begin This exception raises an issue of the applicant's availability for suitable employment
under section 268.085, subdivision 1, that the commissioner shall determine; or
new text end

new text begin (9) new text enddomestic abuse of the applicant or the applicant's minor child, necessitated
the applicant's quitting the employment. Domestic abuse deleted text beginshalldeleted text endnew text begin mustnew text end be shown by one
or more of the following:

(i) a district court order for protection or other documentation of equitable relief
issued by a court;

(ii) a police record documenting the domestic abuse;

(iii) documentation that the perpetrator of the domestic abuse has been convicted
of the offense of domestic abuse;

(iv) medical documentation of domestic abuse; or

(v) written statement that the applicant or the applicant's minor child is a victim
of domestic abuse, provided by a social worker, member of the clergy, shelter worker,
attorney at law, or other professional who has assisted the applicant in dealing with the
domestic abuse.

Domestic abuse for purposes of this clause deleted text beginshall bedeleted text endnew text begin isnew text end defined under section 518B.01.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective and applies to all determinations and
decisions issued on or after September 30, 2007.
new text end

Sec. 17.

Minnesota Statutes 2006, section 268.095, subdivision 6, is amended to read:


Subd. 6.

Employment misconduct defined.

(a) Employment misconduct means
any intentional, negligent, or indifferent conduct, on the job or off the job (1) that displays
clearly a serious violation of the standards of behavior the employer has the right to
reasonably expect of the employee, or (2) that displays clearly a substantial lack of
concern for the employment.

Inefficiency, inadvertence, simple unsatisfactory conduct, a single incident that does
not have a significant adverse impact on the employer, conduct an average reasonable
employee would have engaged in under the circumstances, poor performance because of
inability or incapacity, good faith errors in judgment if judgment was required, or absence
because of illness or injury with proper notice to the employer, are not employment
misconduct.

(b) Conduct that was a direct result of the applicant's chemical dependency is not
employment misconduct unless the applicant was previously diagnosed 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.

(c) Conduct that was a result of the applicant, or the applicant's minor child,
being a victim of domestic abuse as defined under section 518B.01, is not employment
misconduct. Domestic abuse deleted text beginshalldeleted text endnew text begin mustnew text end be shown as provided for in section 268.095,
subdivision 1
, clause deleted text begin(8)deleted text endnew text begin (9)new text end.

(d) A driving offense in violation of sections 169A.20, 169A.31, or 169A.50
to 169A.53 that interferes with or adversely affects the employment is employment
misconduct.

(e) The definition of employment misconduct provided by this subdivision deleted text beginshall bedeleted text endnew text begin
is
new text end exclusive and no other definition deleted text beginshall applydeleted text endnew text begin appliesnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective and applies to all determinations and
decisions issued on or after September 30, 2007.
new text end

Sec. 18.

Minnesota Statutes 2006, section 268.105, subdivision 1, is amended to read:


Subdivision 1.

Evidentiary hearing by an unemployment law judge.

(a) Upon
a timely appeal having been filed, the department deleted text beginshalldeleted text endnew text begin mustnew text end send, by mail or electronic
transmission, a notice of appeal to all involved parties that an appeal has been filed, that
a de novo due process evidentiary hearing will be scheduled, and that the parties have
certain rights and responsibilities regarding the hearing. The department deleted text beginshalldeleted text endnew text begin mustnew text end set a
time and place for a de novo due process evidentiary hearing and send notice to any
involved applicant and any involved employer, by mail or electronic transmission, not less
than ten calendar days deleted text beginprior todeleted text endnew text begin beforenew text end the date of the hearing.

(b) The evidentiary hearing deleted text beginshall bedeleted text endnew text begin isnew text end conducted by an unemployment law judge
without regard to any deleted text begincommon lawdeleted text end burden of proof as an evidence gathering inquiry and
not an adversarial proceeding. The unemployment law judge deleted text beginshalldeleted text endnew text begin mustnew text end ensure that all
relevant facts are clearly and fully developed. The department deleted text beginshalldeleted text endnew text begin maynew text end adopt rules on
evidentiary hearings. The rules need not conform to common law or statutory rules of
evidence and other technical rules of procedure. The department deleted text beginshall havedeleted text endnew text begin hasnew text end discretion
regarding the method by which the evidentiary hearing is conducted. A report of any
employee of the department, except a determination, made in the regular course of the
employee's duties, deleted text beginshall bedeleted text endnew text begin isnew text end competent evidence of the facts contained in it.

(c) After the conclusion of the hearing, upon the evidence obtained, the
unemployment law judge deleted text beginshalldeleted text endnew text begin mustnew text end make findings of fact and decision and send those,
by mail or electronic transmission, to all involved parties. When the credibility of an
involved party or witness testifying in an evidentiary hearing has a significant effect on the
outcome of a decision, the unemployment law judge must set out the reason for crediting
or discrediting that testimony. The unemployment law judge's decision is final unless a
request for reconsideration is filed deleted text beginpursuant todeleted text endnew text begin undernew text end subdivision 2.

(d) new text beginRegardless of paragraph (c), if the appealing party fails to participate in the
evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal
by summary order. By failing to participate, the appealing party is considered to have
failed to exhaust available administrative remedies unless the appealing party files a
request for reconsideration under subdivision 2 and establishes good cause for failing to
participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission
of a written statement does not constitute participation. The applicant must participate
personally and appearance solely by a representative does not constitute participation.
new text end

new text begin (e) new text endOnly employees of the department who are attorneys deleted text beginshalldeleted text endnew text begin licensed to practice
law in Minnesota may
new text end serve as unemployment law judges. The commissioner may transfer
to another unemployment law judge any proceedings pending before an unemployment
law judge.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to evidentiary hearings conducted on or
after 30 days following the date of final enactment.
new text end

Sec. 19.

Minnesota Statutes 2006, section 268.18, subdivision 2, is amended to read:


Subd. 2.

Overpayment deleted text begindue todeleted text end new text beginbecause of new text endfraud.

(a) Any applicant who receives
unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose
any material fact, or who makes a false statement or representation without a good faith
belief as to the correctness of the statement or representation, has committed fraud. After
the discovery of facts indicating fraud, the commissioner shall make a determination
that the applicant obtained unemployment benefits by fraud and that the applicant must
promptly repay the unemployment benefits to the trust fund. In addition, the commissioner
shall assess a penalty equal to deleted text begin25 percent of the amount fraudulently obtained. If the
applicant had a prior overpayment due to fraud, the commissioner shall, on the present
overpayment, assess a penalty equal to 50
deleted text endnew text begin 40new text end percent of the amount fraudulently obtained.
This penalty is in addition to penalties under section 268.182.

(b) Unless the applicant files an appeal within deleted text begin30deleted text endnew text begin 20new text end calendar days after the sending
of the determination of overpayment by fraud to the applicant by mail or electronic
transmission, the determination deleted text beginshall becomedeleted text endnew text begin isnew text end final. Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin
are
new text end conducted in accordance with section 268.105.

(c) If the applicant fails to repay the unemployment benefits, penalty, and interest
assessed, deleted text beginthe commissioner shall offset from future unemployment benefits otherwise
deleted text enddeleted text beginpayable the total amount duedeleted text enddeleted text begin.deleted text end the total due may deleted text beginalsodeleted text end be collected by the same methods
as delinquent payments from an employer. A determination of overpayment by fraud
deleted text begin shalldeleted text endnew text begin mustnew text end state the methods of collection the commissioner may use to recover the
overpayment. Money received in repayment of fraudulently obtained unemployment
benefits, penalties, and interest deleted text beginshalldeleted text endnew text begin isnew text end first deleted text beginbedeleted text end applied to the unemployment benefits
overpaid, then to the penalty amount due, then to any interest due. new text begin62.5 percent of the
new text endpayments made toward the penalty deleted text beginshall bedeleted text endnew text begin arenew text end credited to the contingent accountnew text begin and
37.5 percent credited to the administration account for deterring, detecting, or collecting
overpayments
new text end.

(d) If an applicant has been overpaid unemployment benefits under the law of
another state because of fraud and that state certifies that the applicant is liable to repay
the unemployment benefits and requests the commissioner to recover the overpayment,
the commissioner may offset from future unemployment benefits otherwise payable the
amount of overpayment.

(e) Unemployment benefits paid for weeks more than four years deleted text beginprior todeleted text endnew text begin beforenew text end the
date of a determination of overpayment by fraud issued under this subdivision deleted text beginshalldeleted text endnew text begin arenew text end
not deleted text beginbedeleted text end considered overpaid unemployment benefits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all determinations of overpayment
by fraud issued on or after September 30, 2007.
new text end

Sec. 20.

Minnesota Statutes 2006, section 268.194, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

There is deleted text beginherebydeleted text end 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 deleted text beginshall bedeleted text endnew text begin isnew text end administered by the commissioner
exclusively for the payment of unemployment benefits. This trust fund deleted text beginshall consistdeleted text endnew text begin
consists
new text end of:

(1) all taxes collected;

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

(3) reimbursements paid by nonprofit organizations and the state and political
subdivisions;

(4) deleted text beginvoluntarydeleted text endnew text begin tax rate buydownnew text end payments under section 268.051, subdivision 7;

(5) any 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) any other money received deleted text beginpursuant todeleted text endnew text begin undernew text end a reciprocal unemployment benefit
arrangement with the federal government or any other state;

(7) deleted text beginalldeleted text end money recovered on overpaid unemployment benefitsnew text begin except, if allowed by
federal law, five percent of any recovered amount is credited to the administration account
new text end;

(8) all money recovered on losses sustained by the trust fund;

(9) all money received from the contingent account under section 268.196,
subdivision 3
;

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

(11) all money received for the trust fund from any other source.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2007.
new text end

Sec. 21.

Minnesota Statutes 2006, section 268.196, subdivision 1, is amended to read:


Subdivision 1.

Administration account.

(a) There is deleted text beginherebydeleted text end created in the state
treasury a special account to be known as the administration account. All money that is
deposited or paid into this account deleted text beginshall bedeleted text endnew text begin isnew text end continuously available to the commissioner
for expenditure to administer the Minnesota unemployment insurance program, and deleted text beginshalldeleted text endnew text begin
does
new text end not lapse at any time. The administration account deleted text beginshall consistdeleted text endnew text begin consistsnew text end of:

(1) all money received from the federal government to administer the Minnesota
unemployment insurance program;

(2) new text beginfive percent of any money recovered on overpaid unemployment benefits as
provided for in section 268.194, subdivision 1, clause (7), which must be used for
deterring, detecting, and collecting overpaid unemployment benefits;
new text end

new text begin (3) new text endany money received as compensation for services or facilities supplied to the
federal government or any other state;

deleted text begin (3)deleted text endnew text begin (4)new text end any amounts received for losses sustained by this account or by reason of
damage to equipment or supplies; and

deleted text begin (4)deleted text endnew text begin (5)new text end any proceeds from the sale or disposition of any equipment or supplies that
may no longer be necessary for the proper administration of those sections.

(b) All money in this account deleted text beginshalldeleted text endnew text begin mustnew text end be deposited, administered, and disbursed
in the same manner and under the same conditions and requirements as are provided by
law for the other special accounts in the state treasury. The commissioner of finance, as
treasurer and custodian of this account, deleted text beginshall bedeleted text endnew text begin isnew text end liable for the faithful performance
of duties in connection with this account.

(c) All money in this account deleted text beginshalldeleted text endnew text begin mustnew text end be spent deleted text beginsolelydeleted text end for the purposes and in the
amounts found necessary by the United States Secretary of Labor for the proper and
efficient administration of the Minnesota unemployment insurance program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2007.
new text end

Sec. 22. new text beginMAXIMUM WEEKLY BENEFIT AMOUNT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 268.07, subdivision 2, paragraph (b),
clause (2), the maximum amount of weekly unemployment benefits available based upon
the high quarter calculation is $351.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and sunsets November 1, 2008.
new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2006, sections 268.0435; and 268.0511, new text end new text begin are repealed effective
January 1, 2008.
new text end

new text begin (b) Minnesota Statutes 2006, sections 268.085, subdivision 10; and 268.103,
subdivision 4,
new text end new text begin are repealed effective September 30, 2007.
new text end

ARTICLE 2

POLICY AND TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2006, 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 shall calculate 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 deleted text beginshall bedeleted text endnew text begin isnew text end divided by 12 to calculate the average monthly
covered employment.

(2) The sum of the total wages paid for all covered employment reported by all
employers for the prior calendar year deleted text beginshall bedeleted text endnew text begin isnew text end divided by the average monthly covered
employment to calculate the state's average annual wage.

(3) The state's average annual wage deleted text beginshall bedeleted text endnew text begin isnew text end divided by 52 to calculate the state's
average weekly wage.

(b) For purposes of calculating the amount of taxable wages, the state's average
annual wage deleted text beginshall applydeleted text endnew text begin appliesnew text end to the calendar year following the calculation.

(c) For purposes of calculating the state's maximum weekly unemployment benefit
amount available on any benefit account under section 268.07, subdivision 2, the state's
average weekly wage deleted text beginshall applydeleted text endnew text begin appliesnew text end to the one-year period beginning the deleted text beginfirstdeleted text endnew text begin lastnew text end
Sunday in deleted text beginAugustdeleted text endnew text begin Octobernew text end of the calendar year of the calculation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 1, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, section 268.051, subdivision 1a, is amended to read:


Subd. 1a.

Payments by electronic payment required.

(a) Every employer that
reports deleted text begin500deleted text endnew text begin 50new text end or more employees in any calendar quarter on the wage detail report
required under section 268.044 deleted text beginshalldeleted text endnew text begin mustnew text end make any payments due under this chapter and
section 116L.20 by electronic payment.

(b) All third-party processors, paying deleted text beginquarterly taxesdeleted text end on behalf of a client company,
deleted text begin shalldeleted text endnew text begin mustnew text end make any payments due under this chapter and section 116L.20 by electronic
payment.

(c) Regardless of paragraph (a) or (b), the commissioner deleted text beginshall havedeleted text endnew text begin has thenew text end discretion
to accept payment by other means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 268.0625, subdivision 4, is amended to read:


Subd. 4.

Notice and right to hearing.

At least 30 calendar days before the
commissioner notifies a licensing authority, a notice of action under this section deleted text beginshalldeleted text endnew text begin mustnew text end
be sent to the licensee by mail or electronic transmission. If the licensee disputes the
action, the licensee must appeal within deleted text begin30deleted text endnew text begin 20new text end calendar days after the sending of the notice
to the licensee. The only issue on any appeal is whether the commissioner has complied
with the requirements of this section. Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end conducted in
accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices sent on or after September
30, 2007.
new text end

Sec. 4.

Minnesota Statutes 2006, section 268.065, subdivision 3, is amended to read:


Subd. 3.

Determination of liability.

The commissioner shall make a determination
as to the liability under this section. The determination deleted text beginshall bedeleted text endnew text begin isnew text end final unless the
contractor or person found to be liable files an appeal within deleted text begin30deleted text endnew text begin 20new text end calendar days after
being sent the determination by mail or electronic transmission. Proceedings on the appeal
deleted text begin shall bedeleted text endnew text begin arenew text end conducted in accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to determinations issued on or after
September 30, 2007.
new text end

Sec. 5.

Minnesota Statutes 2006, section 268.07, subdivision 1, is amended to read:


Subdivision 1.

Application for unemployment benefits; determination of benefit
account.

(a) An application for unemployment benefits may be filed in person, by mail, or
by electronic transmission as the commissioner deleted text beginshalldeleted text endnew text begin maynew text end require. The applicant must be
unemployed at the time the application is filed and must provide all requested information
in the manner required. If the applicant is not unemployed at the time of the application or
fails to provide all requested information, the communication deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered
an application for unemployment benefits.

(b) The commissioner shall examine each application for unemployment benefits to
determine the base period and the benefit year, and based upon all the covered employment
in the base period the commissioner shall determine the weekly unemployment benefit
amount available, if any, and the maximum amount of unemployment benefits available,
if any. The determination deleted text beginshall bedeleted text endnew text begin isnew text end known as the determination of benefit account. A
determination of benefit account deleted text beginshalldeleted text endnew text begin mustnew text end be sent to the applicant and all base period
employers, by mail or electronic transmission.

(c) If a base period employer did not provide wage information for the applicant as
provided for in section 268.044, or provided erroneous information, the commissioner
may accept an applicant certification as to wage credits, based upon the applicant's records,
and issue a determination of benefit account.

(d) The commissioner may, at any time within 24 months from the establishment of
a benefit account, reconsider any determination of benefit account and make an amended
determination if the commissioner finds that the determination was incorrect for any
reason. An amended determination deleted text beginshalldeleted text endnew text begin mustnew text end be promptly sent to the applicant and all
base period employers, by mail or electronic transmission.

new text begin (e) new text endIf an amended determination of benefit account reduces the weekly
unemployment benefit amount or maximum amount of unemployment benefits available,
any unemployment benefits that have been paid greater than the applicant was entitled is
considered an overpayment of unemployment benefits deleted text beginunder section 268.18, subdivision
1
deleted text end.new text begin A determination or amended determination issued under this section that results in an
overpayment of unemployment benefits must set out the amount of the overpayment and
the requirement under section 268.18, subdivision 1, that the overpaid unemployment
benefits must be repaid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to all determinations issued on or after
September 30, 2007.
new text end

Sec. 6.

Minnesota Statutes 2006, section 268.07, subdivision 3a, is amended to read:


Subd. 3a.

Right of appeal.

(a) A determination or amended determination of benefit
account deleted text beginshall bedeleted text endnew text begin isnew text end final unless an applicant or base period employer within deleted text begin30 deleted text endnew text begin20 new text endcalendar
days after the sending of the determination or amended determination files an appeal.
Every determination or amended determination of benefit account deleted text beginshalldeleted text endnew text begin mustnew text end contain a
prominent statement indicating in clear language the consequences of not appealing.
Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end 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 and covered employment. Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end
conducted in accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to determinations issued on or after
September 30, 2007.
new text end

Sec. 7.

Minnesota Statutes 2006, section 268.085, subdivision 5, is amended to read:


Subd. 5.

Deductible earnings.

(a) If the applicant has earningsnew text begin, including
holiday pay,
new text end with respect to any week, from employment, covered employment,
noncovered employment, self-employment, or volunteer work, equal to or in excess of
the applicant's weekly unemployment benefit amount, the applicant deleted text beginshall bedeleted text endnew text begin isnew text end ineligible
for unemployment benefits for that week.

(b) If the applicant has earnings, with respect to any week, that is less than
the applicant's weekly unemployment benefit amount, from employment, covered
employment, noncovered employment, self-employment, or volunteer work, deleted text beginthat amount
over the following shall be
deleted text endnew text begin 55 percent of the earnings arenew text end deducted from the weekly
unemployment benefit amountdeleted text begin:deleted text endnew text begin.
new text end

deleted text begin (1) 25 percent of earnings or $50, whichever is higher; and
deleted text end

deleted text begin (2) $200 for earnings from service in the National Guard or a United States military
reserve unit.
deleted text end

The resulting unemployment benefit, if not a whole dollar, deleted text beginshall bedeleted text endnew text begin isnew text end rounded down
to the next lower whole dollar.

(c) No deduction deleted text beginshall bedeleted text endnew text begin isnew text end made from an applicant's weekly unemployment benefit
amount for earnings from new text beginservice in the National Guard or a United States military reserve
unit or from
new text enddirect service as a volunteer firefighter or volunteer ambulance service
personnel. This exception to paragraphs (a) and (b) does not apply to on-call or standby
pay provided to a volunteer firefighter or volunteer ambulance service personnel. No
deduction deleted text beginshall bedeleted text endnew text begin isnew text end made for jury duty pay or for pay as an election judge.

(d) The applicant may report deductible earnings on continued deleted text beginbiweeklydeleted text end requests for
unemployment benefits at the next lower whole dollar amount.

(e) Deductible earnings deleted text beginshalldeleted text endnew text begin doesnew text end not include any money considered a deductible
payment under subdivision 3, but deleted text beginshall includedeleted text endnew text begin includesnew text end all deleted text beginother moneydeleted text endnew text begin compensationnew text end
considered wagesnew text begin under section 268.035, subdivision 29,new text end and any other deleted text beginmoneydeleted text endnew text begin
compensation
new text end considered earned income under state and federal law for income tax
purposes.

new text begin EFFECTIVE DATE. new text end

new text begin The striking of paragraph (b), clause (2), and the insertion
of "service in the National Guard or a United States military reserve unit or from" in
paragraph (c) are effective the Sunday following final enactment. The remainder of
the section is effective for all unemployment benefits paid on or after September 30,
2007, regardless of when the continued request was filed or the week for which the
unemployment benefits are paid.
new text end

Sec. 8.

Minnesota Statutes 2006, section 268.101, subdivision 6, is amended to read:


Subd. 6.

Overpayment.

A determination or amended determination that holds an
applicant deleted text begindisqualified ordeleted text end ineligible for unemployment benefits for periods an applicant
has been paid benefits is considered an overpayment of those unemployment benefits
deleted text begin under section 268.18, subdivision 1deleted text end. new text beginA determination or amended determination issued
under this section that results in an overpayment of unemployment benefits must set out
the amount of the overpayment and the requirement under section 268.18, subdivision 1,
that the overpaid unemployment benefits must be repaid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to determinations issued on or after
September 30, 2007.
new text end

Sec. 9.

Minnesota Statutes 2006, section 268.105, subdivision 2, is amended to read:


Subd. 2.

Request for reconsideration.

(a) Any involved applicant, involved
employer, or the commissioner may, within deleted text begin30deleted text endnew text begin 20new text end calendar days of the sending of the
unemployment law judge's decision under subdivision 1, file a request for reconsideration
asking the unemployment law judge to reconsider that decision. Section 268.103 deleted text beginshall
apply
deleted text endnew text begin appliesnew text end to a request for reconsideration. If a request for reconsideration is timely
filed, the unemployment law judge deleted text beginshalldeleted text endnew text begin mustnew text end issue an order:

(1) modifying the findings of fact and decision issued under subdivision 1;

(2) setting aside the findings of fact and decision issued under subdivision 1 and
directing that an additional evidentiary hearing be conducted under subdivision 1; or

(3) affirming the findings of fact and decision issued under subdivision 1.

(b) Upon a timely request for reconsideration having been filed, the department deleted text beginshalldeleted text endnew text begin
must
new text end send a notice, by mail or electronic transmission, to all involved parties that a request
for reconsideration has been filed. The notice deleted text beginshalldeleted text endnew text begin mustnew text end inform the involved parties:

(1) 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 evidentiary hearing;

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

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

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

This paragraph deleted text beginshalldeleted text endnew text begin doesnew text end not apply if paragraph (d) is applicable.

(c) In deciding a request for reconsideration, the unemployment law judge deleted text beginshalldeleted text endnew text begin mustnew text end
not, except for purposes of determining whether to order an additional evidentiary hearing,
consider any evidence that was not submitted at the evidentiary hearing conducted under
subdivision 1.

The unemployment law judge must order an additional evidentiary hearing if an
involved party shows that evidence which was not submitted at the evidentiary 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 evidentiary hearing was likely false and that the likely false evidence had
an effect on the outcome of the decision.

(d) If the involved applicant or involved employer who filed the request for
reconsideration failed to participate in the evidentiary hearing conducted under
subdivision 1, an order setting aside the findings of fact and decision and directing that
an additional evidentiary hearing be conducted must be issued if the party who failed to
participate had good cause for failing to do so. In the notice deleted text beginof thedeleted text endnew text begin that anew text end request for
reconsiderationnew text begin has been filednew text end, the party who failed to participate deleted text beginshalldeleted text endnew text begin mustnew text end be informed
of the requirement, and provided the opportunity, 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 unemployment law judge must state that in the order
issued under paragraph (a).

Submission of a written statement at the evidentiary hearing under subdivision 1
deleted text begin shalldeleted text endnew text begin doesnew text end not constitute participation for purposes of this paragraph.

All involved parties must be informed of this paragraph with the notice of appeal
and notice of hearing provided for in subdivision 1.

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

(e) A request for reconsideration deleted text beginshalldeleted text endnew text begin mustnew text end be decided by the unemployment
law judge who issued the findings of fact and decision under subdivision 1 unless that
unemployment law judge: (1) is no longer employed by the department; (2) is on an
extended or indefinite leave; (3) has been disqualified from the proceedings on the judge's
own motion; or (4) has been removed from the proceedings as provided for under
subdivision 1 or applicable rule.

(f) The unemployment law judge deleted text beginshalldeleted text endnew text begin mustnew text end send to any involved applicant or
involved employer, by mail or electronic transmission, the order issued under this
subdivision. An order modifying the previously issued findings of fact and decision or
an order affirming the previously issued findings of fact and decision deleted text beginshall bedeleted text endnew text begin isnew text end the final
department decision on the matter and deleted text beginshall bedeleted text endnew text begin isnew text end final and binding on the involved
applicant and involved employer unless judicial review is sought under subdivision 7.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to decisions issued on or after September
30, 2007.
new text end

Sec. 10.

Minnesota Statutes 2006, section 268.105, subdivision 3a, is amended to read:


Subd. 3a.

Decisions.

(a) If an unemployment law judge's decision or order allows
unemployment benefits to an applicant, the unemployment benefits deleted text beginshalldeleted text endnew text begin mustnew text end be paid
regardless of any request for reconsideration or any appeal to the Minnesota Court of
Appeals having been filed.

(b) If an unemployment law judge's decision or order modifies or reverses a
determination, or prior decision of the unemployment law judge, allowing unemployment
benefits to an applicant, any benefits paid deleted text beginpursuant todeleted text endnew text begin in accordance withnew text end the determination,
or prior decision of the unemployment law judge, is considered an overpayment of those
unemployment benefits deleted text beginunder section 268.18, subdivision 1deleted text end.new text begin A decision or order issued
under this section that results in an overpayment of unemployment benefits must set out
the amount of the overpayment and the requirement under section 268.18, subdivision 1,
that the overpaid unemployment benefits must be repaid.
new text end

(c) If an unemployment law judge's order under subdivision 2 allows unemployment
benefits to an applicant under section 268.095 because of a quit or discharge and the
unemployment law judge's decision is reversed by the Minnesota Court of Appeals or the
Supreme Court of Minnesota, any unemployment benefits paid the applicant deleted text beginshalldeleted text endnew text begin isnew text end not
deleted text begin bedeleted text end considered an overpayment of those unemployment benefits under section 268.18,
subdivision 1
.

(d) If an unemployment law judge, deleted text beginpursuant todeleted text endnew text begin undernew text end subdivision 2, orders the taking
of additional evidence, the unemployment law judge's prior decision deleted text beginshalldeleted text endnew text begin mustnew text end continue
to be enforced until new findings of fact and decision are made by the unemployment
law judge.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to decisions issued on or after September
30, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 268.131, subdivision 1, is amended to read:


Subdivision 1.

Cooperation with other deleted text beginstate and federal governmentdeleted text endnew text begin states on
combining wages
new text end.

(a) new text beginIn accordance with the requirements of United States Code, title
26, section 3304(a)(9)(B), the Federal Unemployment Tax Act,
new text endthe commissioner shall
participate in reciprocal arrangements with other states deleted text beginand the federal government, or
both,
deleted text end for the payment of unemployment benefits on the basis of combining an applicant's
wages deleted text beginand employment covered under this law with wages and employment covered
under the unemployment insurance programs of other states or the federal government that
deleted text end
new text begin from multiple states for the purposes of collecting unemployment benefits from a single
state. The reciprocal agreement must
new text endinclude provisions for applying the base period of a
single state law to deleted text beginandeleted text endnew text begin a benefitnew text end 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 begin Nodeleted text end new text beginThe commissioner may not enter into any new text endreciprocal arrangement deleted text beginshall be entered
into
deleted text end unless it contains provisions for reimbursements to the trust fund, by the other
statedeleted text begin or the federal governmentdeleted text end, for unemployment benefits paid from the trust fund to
applicants based upon wages and employment covered under the laws of the other statedeleted text begin or
the federal government
deleted text end.

(b) new text beginThe commissioner is authorized to pay unemployment benefits based upon
an applicant's wages paid in covered employment in another state only if the applicant
is combining Minnesota wage credits with the wages paid in covered employment from
another state or states.
new text end

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

new text begin (d) new text endOn any reciprocal arrangement, the wages paid an applicant from employment
covered under an unemployment insurance program of another state deleted text beginor of the federal
government, shall be
deleted text end new text beginare new text endconsidered wages from covered employment for the purpose
of determining the applicant's rights to unemployment benefits under the Minnesota
Unemployment Insurance Law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2006, section 268.18, subdivision 1, is amended to read:


Subdivision 1.

Nonfraud overpayment.

(a) Any applicant who (1) deleted text beginby reason of the
applicant's own mistake, or (2) because of an error by any employee of the department, or
(3)
deleted text end because of a determination or amended determination issued deleted text beginpursuant todeleted text endnew text begin undernew text end section
268.07 or 268.101, new text beginor any other section of this chapter, new text endor deleted text begin(4)deleted text endnew text begin (2)new text end because of an appeal
decisionnew text begin or ordernew text end under section 268.105, has received any unemployment benefits that the
applicant was new text beginheld new text endnot entitled to, deleted text beginshalldeleted text endnew text begin mustnew text end promptly repay the unemployment benefits
to the trust fund. deleted text beginThe commissioner shall, as soon as the overpayment is discovered,
determine the amount due and notify the applicant to repay the unemployment benefits.
deleted text end

(b) deleted text beginUnless the applicant files an appeal within 30 calendar days after the sending
of the determination of overpayment to the applicant by mail or electronic transmission,
the determination shall become final. Proceedings on the appeal shall be conducted in
accordance with section 268.105. An applicant may not collaterally attack, by way of an
appeal to an overpayment determination, any prior determination issued pursuant to section
268.07 or 268.101, or decision issued pursuant to section 268.105, that has become final.
deleted text end

deleted text begin (c)deleted text end If the applicant fails to repay the unemployment benefits deleted text begindetermineddeleted text end overpaid
deleted text begin under this subdivisiondeleted text end, the commissioner may offset from any future unemployment
benefits otherwise payable the amount of the overpayment. Except when the overpayment
resulted because the applicant failed to report deductible earnings or deductible or
benefit delaying payments, no single offset deleted text beginshalldeleted text endnew text begin maynew text end exceed 50 percent of the amount
of the payment from which the offset is made. The overpayment may also be collected
by the same methods as delinquent payments from an employer. deleted text beginA determination of
overpayment shall state the methods of collection the commissioner may use to recover
the overpayment.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end If an applicant has been overpaid unemployment benefits under the law of
another state, deleted text begindue todeleted text endnew text begin because ofnew text end a reason other than fraud, and that state certifies that the
applicant is liable under its law to repay the unemployment benefits and requests the
commissioner to recover the overpayment, the commissioner may offset from future
unemployment benefits otherwise payable the amount of overpayment, except that no
single offset deleted text beginshalldeleted text endnew text begin maynew text end exceed 50 percent of the amount of the payment from which the
offset is made.

deleted text begin (e)deleted text endnew text begin (d)new text end If under paragraph new text begin(b) or new text end(c) deleted text beginor (d)deleted text end the reduced unemployment benefits as
a result of a 50 percent offset is not a whole dollar amount, it deleted text beginshall bedeleted text endnew text begin isnew text end rounded down
to the next lower whole dollar.

deleted text begin (f) Unemployment benefits paid for weeks more than three years prior to the date
of a determination of overpayment issued under this subdivision shall not be considered
overpaid unemployment benefits.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2007.
new text end

Sec. 13.

Minnesota Statutes 2006, section 268.18, subdivision 2b, is amended to read:


Subd. 2b.

Interest.

(a) On any unemployment benefits fraudulently obtained,
and any penalty amounts assessed under subdivision 2, the commissioner deleted text beginmaydeleted text endnew text begin shallnew text end
assess interest at the rate of 1-1/2 percent per month on any amount that remains unpaidnew text begin
beginning
new text end 30 calendar days after the date of the determination of overpayment by fraud. A
determination of overpayment by fraud deleted text beginshalldeleted text endnew text begin mustnew text end state that interest deleted text beginshalldeleted text endnew text begin willnew text end be assessed.

(b) If deleted text beginthis subdivision became effective after the date of the determination, ordeleted text end the
determination did not state that interest deleted text beginshalldeleted text endnew text begin willnew text end be assessed, interest deleted text beginshall bedeleted text endnew text begin isnew text end assessed
beginning 30 calendar days after notification, by mail or electronic transmission, to the
applicantnew text begin that interest is now assessednew text end.

(c) Interest payments under this section deleted text beginshall bedeleted text endnew text begin arenew text end credited to the administration
account.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2007, and applies to
all outstanding fraud overpayment balances as of that date.
new text end

Sec. 14.

Minnesota Statutes 2006, section 268.18, subdivision 4, is amended to read:


Subd. 4.

Cancellation of overpayments.

(a) If unemployment benefits deleted text begindetermineddeleted text end
overpaid under subdivision 1 are not repaid or offset from subsequent unemployment
benefits as provided for in subdivision 1 within six years after the date of the determination
deleted text begin of overpaymentdeleted text endnew text begin or decision holding the applicant overpaidnew text end, the commissioner shall cancel
the overpayment balance, and no administrative or legal proceedings deleted text beginshalldeleted text endnew text begin maynew text end be used to
enforce collection of those amounts.

(b) If unemployment benefits determined overpaid under subdivision 2 including
penalties and interest are not repaid deleted text beginor offset from subsequent unemployment benefits as
provided for in subdivision 2
deleted text end within deleted text begintendeleted text endnew text begin 15new text end years after the date of the determination of
overpayment by fraud, the commissioner shall cancel the overpayment balance and any
penalties and interest due, and no administrative or legal proceeding deleted text beginshalldeleted text endnew text begin maynew text end be used to
enforce collection of those amounts.

(c) The commissioner may cancel at any time any overpayment, including penalties
and interest, that the commissioner determines is uncollectible deleted text begindue todeleted text endnew text begin because ofnew text end death
or bankruptcy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2007, and applies to
all overpayments existing as of that date.
new text end

Sec. 15.

Minnesota Statutes 2006, section 268.182, subdivision 2, is amended to read:


Subd. 2.

Administrative penalties.

Any applicant who knowingly makes a false
statement or representation, who knowingly fails to disclose a material fact, or who 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. A determination of
ineligibility setting out the weeks the applicant deleted text beginshall bedeleted text end new text beginis new text endineligible deleted text beginshalldeleted text end new text beginmust new text endbe sent to
the applicant by mail or electronic transmission. Unless an appeal is filed within deleted text begin30deleted text endnew text begin 20new text end
calendar days of sending, the determination deleted text beginshall bedeleted text end new text beginis new text endfinal. deleted text beginProceedingdeleted text end new text beginProceedings new text endon
the appeal deleted text beginshall bedeleted text endnew text begin arenew text end conducted in accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to determinations issued on or after
September 30, 2007.
new text end

Sec. 16.

Minnesota Statutes 2006, section 268.184, subdivision 1, is amended to read:


Subdivision 1.

Administrative penalties.

(a) deleted text beginIfdeleted text end The commissioner deleted text beginfindsdeleted text end new text beginshall
penalize an employer if
new text endthat deleted text beginanydeleted text end employer or any employee, officer, or agent of deleted text beginanydeleted text end new text beginthat
new text endemployer, is in collusion with any applicant for the purpose of assisting the applicant to
receive unemployment benefits fraudulentlydeleted text begin, the employer shall be penalizeddeleted text endnew text begin. The penalty
is
new text end $500 or the amount of unemployment benefits determined to be overpaid, whichever
is greater.

(b) deleted text beginIfdeleted text end The commissioner deleted text beginfindsdeleted text end new text beginshall penalize an employer if new text endthat deleted text beginanydeleted text end employer or
any employee, officer, or agent of deleted text beginandeleted text end new text beginthat new text endemployer deleted text beginhasdeleted text end new text begin(1) new text endmade deleted text begin(1)deleted text end a false statement or
representation knowing it to be false, deleted text beginincluding reporting employees on a wage detail
report under section 268.044 knowing the employees actually are employed by a different
employer, or
deleted text endnew text begin,new text end (2) deleted text beginhasdeleted text end made a false statement or representation without a good faith belief
as to correctness of the statement or representation, or (3) deleted text beginwhodeleted text end knowingly deleted text beginfailsdeleted text end new text beginfailed new text endto
disclose a material factdeleted text begin,deleted text endnew text begin; but only if the employer's action:
new text end

new text begin(i) was taken new text endto prevent or reduce the payment of unemployment benefits to any
applicant deleted text beginordeleted text endnew text begin;
new text end

new text begin (ii) was taken new text end to reduce or avoid any payment required from an employer under this
chapter or section 116L.20deleted text begin, the employer shall be penalizeddeleted text endnew text begin; ornew text end

new text begin (iii) caused an overpayment of unemployment benefits to an applicant.
new text end

new text begin The penalty is new text end$500, or 50 percent of the new text beginoverpaid or new text endreduced unemployment benefits
or payment required, whichever is greater.

(c) deleted text beginIfdeleted text end The commissioner deleted text beginfindsdeleted text end new text beginshall penalize an employer if new text endthat deleted text beginandeleted text end employer failed
or refused to honor a subpoena issued under section 268.105, subdivision 4, or section
268.188deleted text begin, the employer shall be penalizeddeleted text endnew text begin. The penalty is new text end $500 and any costs of enforcing
the subpoena, including attorney fees.

(d) Penalties under this subdivision deleted text beginshall bedeleted text end new text beginare new text endin addition to any other penalties
and subject to the same collection procedures that apply to past due taxes. Penalties deleted text beginshalldeleted text end
new text begin must new text endbe paid deleted text beginto the departmentdeleted text end within 30 calendar days of assessment and credited to
the contingent account.

(e) The assessment of the penalty deleted text beginshall bedeleted text end new text beginis new text endfinal unless the employer files an appeal
within deleted text begin30deleted text end new text begin20 new text endcalendar days after the sending of notice of the penalty to the employer by
mail or electronic transmission. Proceedings on the appeal deleted text beginshall bedeleted text end new text beginare new text endconducted in
accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices of penalties sent on or
after September 30, 2007.
new text end

Sec. 17.

Minnesota Statutes 2006, section 268.184, subdivision 1a, is amended to read:


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 deleted text beginshalldeleted text end new text beginmust new text endbe 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 deleted text beginshalldeleted text end new text beginmust new text endbe 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, deleted text beginshalldeleted text end new text beginmust new text endeach 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 268.0435 or 268.046, the person deleted text beginshalldeleted text end new text beginmust new text endbe assessed
a penalty of $5,000 or two percent of the quarterly payroll reported in violation of section
268.0435 or 268.046, whichever is higher. Payroll is wages paid as defined in section
268.035, subdivision 30.

(d) Penalties under this subdivision deleted text beginshall bedeleted text end new text beginare new text endin 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 notice of penalty.

(e) The assessment of a penalty deleted text beginshall bedeleted text end new text beginis new text endfinal unless the person assessed files an
appeal within deleted text begin30deleted text endnew text begin 20new text end calendar days after sending of the notice of the penalty by mail or
electronic transmission. Proceedings on the appeal deleted text beginshall bedeleted text end new text beginare new text endconducted in accordance
with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to assessments done on or after
September 30, 2007.
new text end

Sec. 18.

new text begin [268.215] DAY OF THE WEEK AND DATE REQUIREMENT.
new text end

new text begin (a) Every determination issued under this chapter that is subject to an appeal to an
unemployment law judge must indicate the day of the week and the date, for example,
Tuesday, August 1, 2006, that the determination is final and no longer subject to an appeal.
new text end

new text begin (b) Every decision issued by an unemployment law judge under section 268.105,
subdivision 1, must indicate the day of the week and the date, for example, Tuesday,
August 1, 2006, that the decision is final and no longer subject to reconsideration.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2007.
new text end

ARTICLE 3

HOUSEKEEPING PROVISIONS

Section 1.

Minnesota Statutes 2006, section 268.035, subdivision 1, is amended to read:


Subdivision 1.

Scope.

deleted text beginUnless the language or context clearly indicates that a
different meaning is intended,
deleted text end The words, terms, and phrases in this section deleted text beginshalldeleted text end, for the
purposes of the Minnesota Unemployment Insurance Law, have the meaning stated.

Sec. 2.

Minnesota Statutes 2006, section 268.035, subdivision 14, is amended to read:


Subd. 14.

Employer.

"Employer" means any person deleted text beginwhichdeleted text endnew text begin thatnew text end has had one or more
employees during the current or the prior calendar year including any person that has
elected, under section 268.042, to be subject to the Minnesota Unemployment Insurance
Law and a joint venture composed of one or more employers.

An employee leasing company, professional employer organization, or similar
person that has been assigned a tax deleted text beginor reimbursabledeleted text end account under section 268.046 is
an employer for purposes of this chapter.

Sec. 3.

Minnesota Statutes 2006, section 268.035, subdivision 24, is amended to read:


Subd. 24.

Taxable wages.

(a) "Taxable wages" means those wages paid to an
employee in covered employment each calendar year up to an amount equal to 60 percent
of the state's average annual wage, rounded to the nearest $1,000.

(b) Taxable wages includes the amount of wages paid for covered employment by
the employer's predecessor when there has been an experience rating new text beginhistory new text endtransfer
under section 268.051, subdivision 4.

Sec. 4.

Minnesota Statutes 2006, section 268.044, subdivision 1, is amended to read:


Subdivision 1.

Wage detail report.

(a) Each employer deleted text beginthat has employees in
covered employment shall
deleted text endnew text begin mustnew text end submit, under the account provided for in section
268.045 or 268.046, a quarterly wage detail report by electronic transmission, in a format
prescribed by the commissioner. The report deleted text beginshalldeleted text endnew text begin mustnew text end include for each employee in
covered employmentnew text begin during the calendar quarternew text end, the employee's name, Social Security
number, the total wages paid to the employee, and total number of paid hours worked.
For employees exempt from the definition of employee in section 177.23, subdivision 7,
clause (6), the employer deleted text beginshalldeleted text endnew text begin mustnew text end report 40 hours worked for each week any duties were
performed by a full-time employee and deleted text beginshalldeleted text endnew text begin mustnew text end report a reasonable estimate of the
hours worked for each week duties were performed by a part-time employee. In addition,
the wage detail report deleted text beginshalldeleted text endnew text begin mustnew text end include the number of employees employed deleted text beginondeleted text end new text beginduring
the payroll period that includes
new text end the 12th day of each calendar month and, if required by the
commissioner, the report deleted text beginshalldeleted text endnew text begin must new text end be broken down by business location and, if section
268.046, subdivision 1, paragraph (b), or subdivision 2, paragraph (b), applies, by separate
unit. deleted text beginIf the information required is not submitted in a manner and format prescribed by the
commissioner, it shall not be considered a wage detail report.
deleted text end The report is due and must
be received by the commissioner on or before the last day of the month following the end
of the calendar quarter. The commissioner may delay the due date on a specific calendar
quarter in the event the department is unable to accept wage detail reports electronically.

(b) The employer may report the wages paid to the next lower whole dollar amount.

(c) An employer need not include the name of the employee or other required
information on the wage detail report if disclosure is specifically exempted from being
reported by federal law.

(d) A wage detail report must be submitted for each calendar quarter even though
no wages were paid, unless the employer has notified the commissioner, under section
268.042, subdivision 1, paragraph (c), of termination of business.

Sec. 5.

Minnesota Statutes 2006, section 268.044, subdivision 3, is amended to read:


Subd. 3.

Missing or erroneous information.

(a) Any employer that submits the
wage detail report, but fails to include all employee information or enters erroneous
information, deleted text beginshall bedeleted text endnew text begin isnew text end subject to an administrative service fee of $25 for each employee
for whom the information is partially missing or erroneous.

(b) Any employer that submits the wage detail report, but fails to include an
employee, deleted text beginshall bedeleted text endnew text begin isnew text end subject to an administrative service deleted text beginpenaltydeleted text endnew text begin feenew text end equal to two percent
of the total wages for each employee for whom the information is completely missing.

(c) An administrative service fee deleted text beginor penaltydeleted text end under this subdivision deleted text beginshalldeleted text endnew text begin mustnew text end be
canceled if the commissioner determines that the failure or error by the employer occurred
because of ignorance or inadvertence.

Sec. 6.

Minnesota Statutes 2006, section 268.051, subdivision 2, is amended to read:


Subd. 2.

Computation of tax rates; additional assessments.

(a) For each calendar
year the commissioner shall compute the tax rate of each taxpaying employer that qualifies
for an experience rating by adding the base tax rate to the employer's experience ratingnew text begin
along with assigning any appropriate additional assessment under paragraph (d)
new text end.

(b) The base tax rate for the calendar year and any additional assessments under this
subdivision deleted text beginshall bedeleted text endnew text begin arenew text end determined based upon the amount in the trust fund on March
31 of the prior year as a percentage of total wages paid in covered employment. The
base tax rate deleted text beginshall bedeleted text endnew text begin isnew text end:

(1) one-tenth of one percent if the trust fund is equal to or more than 0.75 percent;

(2) two-tenths of one percent if the trust fund is less than 0.75 percent but equal to or
more than 0.65 percent;

(3) three-tenths of one percent if the trust fund is less than 0.65 percent but equal
to or more than 0.55 percent; or

(4) four-tenths of one percent if the trust fund is less than 0.55 percent.

(c) There deleted text beginshall bedeleted text endnew text begin isnew text end a "falling trust fund adjustment" to the base tax rate for the
calendar year if the amount in the trust fund on March 31 of the prior year is less than 0.75
percent of total wages paid in covered employment and:

(1) the amount in the trust fund on March 31 of the prior year is ten percent or more
below the amount in the trust fund on March 31 of the year deleted text beginprior todeleted text endnew text begin beforenew text end that; or

(2) the amount in the trust fund on March 31 of the prior year is greater than the
amount in the trust fund on June 30 of that same year.

If a "falling trust fund adjustment" is applicable, then the base tax rate deleted text beginshall be 0.1deleted text endnew text begin is
one-tenth of one
new text end percent greater than otherwise provided for under paragraph (b).

(d) In addition to the base tax rate deleted text beginunder paragraph (b)deleted text end, there deleted text beginshall bedeleted text endnew text begin isnew text end an additional
assessment for the calendar year on deleted text beginalldeleted text endnew text begin thenew text end quarterly unemployment taxes due from every
taxpaying employer if the amount in the trust fund on March 31 of the prior year is less
than deleted text begin.55deleted text endnew text begin 0.55new text end percent of total wages paid in covered employment. The assessment deleted text beginshall bedeleted text endnew text begin
is
new text end as follows:

(1) a five percent assessment if the trust fund is less than 0.55 percent but equal to or
more than 0.45 percent;

(2) a ten percent assessment if the trust fund is less than 0.45 percent but equal
to or more than 0.35 percent; or

(3) a 14 percent assessment if the trust fund is less than 0.35 percent.

(e) For the purposes of this subdivision, the trust fund deleted text beginshalldeleted text endnew text begin doesnew text end not include any
money borrowed from the federal unemployment trust fund deleted text beginpursuant todeleted text endnew text begin provided for innew text end
section 268.194, subdivision 6.

(f) For the purposes of this subdivision, total wages paid in covered employment
deleted text begin shall bedeleted text endnew text begin arenew text end those wages paid to all employees in covered employment during the calendar
year deleted text beginprior todeleted text endnew text begin beforenew text end the March 31 date used in paragraph (b).

deleted text begin (g) The commissioner may compute any assessment under this subdivision, and any
assessment under subdivision 8, as a percentage of the employer's experience rating and
the base tax rate, rounded to the nearest hundredth of a percent.
deleted text end

deleted text begin On tax rate notices sent under subdivision 6, any assessments under this subdivision
may be combined with any special assessments for interest on federal loans provided for
in subdivision 8 into a single combined assessment.
deleted text end

new text begin (g) The base tax rate and any additional assessments are assessed on all taxpaying
employers to cover a portion of the costs to the trust fund for unemployment benefits paid
that do not affect any single employer's future experience rating because:
new text end

new text begin (1) the employer's experience rating is limited by the maximum under subdivision 3,
paragraph (b);
new text end

new text begin (2) the employer has ceased doing business; or
new text end

new text begin (3) the unemployment benefits paid have been determined not to be used in
computing the employer's experience rating under section 268.047, subdivision 2 or 3.
new text end

Sec. 7.

Minnesota Statutes 2006, section 268.051, subdivision 3, is amended to read:


Subd. 3.

Computation of a taxpaying employer's experience rating.

(a) On
or before each December 15, the commissioner shall compute an experience rating for
each taxpaying employer who has been deleted text beginsubjectdeleted text endnew text begin requirednew text end to deleted text beginpaying unemployment taxesdeleted text endnew text begin
file wage detail reports
new text end for the 12 calendar months ending on the prior June 30. The
experience rating computed deleted text beginshall bedeleted text endnew text begin is new text end applicable for the following calendar year.

The experience rating deleted text beginshall bedeleted text endnew text begin isnew text end the ratio obtained by dividing 125 percent of the
total unemployment benefits required under section 268.047 to be used in computing the
employer's tax rate during the 48 calendar months ending on the prior June 30, by the
employer's total taxable payroll for that same period.

(b) The experience rating deleted text beginshall bedeleted text endnew text begin isnew text end computed to the nearest one-hundredth of a
percent, to a maximum of 8.90 percent.

new text begin (c) The use of 125 percent of unemployment benefits paid under paragraph (a), rather
than 100 percent of the amount of unemployment benefits paid, is done in order for the
trust fund to recover from all taxpaying employers a portion of the costs of unemployment
benefits paid that do not affect any individual employer's future experience rating because
of the reasons set out in subdivision 2, paragraph (g).
new text end

Sec. 8.

Minnesota Statutes 2006, section 268.051, subdivision 4, is amended to read:


Subd. 4.

Experience rating history transfer.

(a) When:

(1) a taxpaying employer acquires all of the organization, trade or business, or
workforce of another taxpaying employer; and

(2) there is 25 percent or more common ownership or there is substantially common
management or control between the predecessor and successor, the experience rating
history of the predecessor employer deleted text beginshall bedeleted text endnew text begin isnew text end transferred deleted text beginas of the date of acquisitiondeleted text end to
the successor employer.

(b) When:

(1) a taxpaying employer acquires a portion, but less than all, of the organization,
trade or business, or workforce of another taxpaying employer; and

(2) there is 25 percent or more common ownership or there is substantially
common management or control between the predecessor and successor, the successor
employer deleted text beginshall acquiredeleted text endnew text begin acquiresnew text end, as of the date of acquisition, the experience rating
history attributable to the portion it acquired, and the predecessor employer deleted text beginshall retaindeleted text endnew text begin
retains
new text end the experience rating history attributable to the portion that it has retained. If the
commissioner determines that sufficient information is not available to substantiate that a
distinct severable portion was acquired and to assign the appropriate distinct severable
portion of the experience rating history, the commissioner shall assign the successor
employer that percentage of the predecessor employer's experience rating history equal to
that percentage of the employment positions it has obtained, and the predecessor employer
deleted text begin shall retaindeleted text endnew text begin retainsnew text end that percentage of the experience rating history equal to the percentage
of the employment positions it has retained.

(c) The term "common ownership" for purposes of this subdivision includes
ownership by a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle,
niece, nephew, or first cousin, by birth or by marriage.

(d) Each successor employer that is subject to paragraph (a) or (b) must notify the
commissioner of the acquisition by electronic transmission, in a format prescribed by the
commissioner, within 30 calendar days of the date of acquisition. Any successor employer
that fails to notify the commissioner is subject to the penalties under section 268.184,
subdivision 1a
, if the successor's experience rating was lower than the predecessor's
experience rating at the time of the acquisition. new text beginPayments made toward the new text endpenalties
deleted text begin shall bedeleted text endnew text begin arenew text end credited to the administration account to be used to ensure integrity in the
unemployment insurance program.

(e) If the successor employer under paragraphs (a) and (b) had an experience rating
at the time of the acquisition, the transferred experience rating history of the predecessor
deleted text begin shall bedeleted text endnew text begin isnew text end combined with the successor's experience rating historydeleted text begin, as of the date of
acquisition,
deleted text end for purposes of recomputing a tax rate.

(f) If there has been a transfer of an experience rating history under paragraph (a)
or (b), employment with a predecessor employer deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered to have been
terminated if similar employment is offered by the successor employer and accepted by
the employee.

(g) The commissioner, upon notification of an employer, or upon the commissioner's
own motion if the employer fails to provide the required notification, shall determine if an
employer is a successor within the meaning of this subdivision. The commissioner shall,
after determining the issue of succession or nonsuccession, recompute the tax rate under
subdivision 6 of all employers affected. The commissioner shall send the recomputed
tax rate to all affected employers by mail or electronic transmission. Any affected
employer may deleted text beginprotestdeleted text endnew text begin appealnew text end the recomputed tax rate in accordance with the procedures
in subdivision 6, paragraph (c).

(h) The "experience rating history" for purposes of this subdivision and subdivision
4a meansdeleted text begin those factors set out in subdivision 3, paragraph (b), that make up an experience
rating
deleted text endnew text begin the amount of unemployment benefits paid and the taxable wages that are being
used and would be used in computing the current and any future experience rating
new text end.

For purposes of this chapter, an "acquisition" means anything that results in the
obtaining by the successor employer, in any way or manner, of the organization, trade or
business, or workforce of the predecessor employer.

A "distinct severable portion" in paragraph (b) means a location or unit separately
identifiable within the employer's wage detail report under section 268.044.

(i) Regardless of the ownership, management, or control requirements of paragraph
(a), if there is an acquisition or merger of a publicly held corporation by or with another
publicly held corporation the experience rating histories of the corporations deleted text beginshall bedeleted text endnew text begin arenew text end
combined as of the date of acquisition or merger for the purpose of recomputing a tax rate.

Sec. 9.

Minnesota Statutes 2006, section 268.051, subdivision 7, is amended to read:


Subd. 7.

Tax rate buydown.

(a) Any taxpaying employerdeleted text begin whodeleted text endnew text begin thatnew text end has been
assigned a tax rate based upon an experience rating, and has no amounts past due under
this chapter, may, upon the deleted text beginvoluntarydeleted text end payment of an amount equivalent to any portion or
all of the unemployment benefits used in computing the experience rating plus a surcharge
of 25 percent, obtain a cancellation of unemployment benefits used equal to the payment
made, less the surcharge. Upon the payment, the commissioner shall compute a new
experience rating for the employer, and compute a new tax rate.

(b) deleted text beginVoluntarydeleted text end Payments new text beginfor a tax rate buydown new text endmay be made only by electronic
payment and must be received within 120 calendar days from the beginning of the
calendar year for which the tax rate is effective.

Sec. 10.

Minnesota Statutes 2006, section 268.051, subdivision 8, is amended to read:


Subd. 8.

Special assessment for interest on federal loan.

(a) If on October 31 of
any year, the commissioner, in consultation with the commissioner of finance, determines
that an interest payment will be due during the following calendar year on any loan from
the federal unemployment trust fund under section 268.194, subdivision 6, a special
assessment on taxpaying employers will be in effect for the following calendar year. The
legislature authorizes the commissioner, in consultation with the commissioner of finance,
to determine the appropriate level of the assessment, from two percent to eight percent of
the new text begintotal new text endquarterly unemployment taxes duenew text begin based upon determined rates and assigned
assessments under subdivision 2
new text end, that will be necessary to pay the interest due on the loan.

(b) The special assessment deleted text beginshalldeleted text endnew text begin mustnew text end be placed into a special account from which
the commissioner shall pay any interest that has accrued on any loan from the federal
unemployment trust fund provided for under section 268.194, subdivision 6. If, at the
end of each calendar quarter, the commissioner, in consultation with the commissioner
of finance, determines that the balance in this special account, including interest earned
on the special account, is more than is necessary to pay the interest deleted text beginwhichdeleted text endnew text begin thatnew text end has
accrued on any loan as of that date, or will accrue over the following calendar quarter,
the commissioner shall immediately pay to the trust fund the amount in excess of that
necessary to pay the interest on any loan.

Sec. 11.

Minnesota Statutes 2006, section 268.066, is amended to read:


268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.

(a) The commissioner shall cancel as uncollectible any amounts due from an
employer under this chapter or section 116L.20, deleted text beginwhichdeleted text endnew text begin thatnew text end remain unpaid six years after
the amounts have been first determined due, except where the delinquent amounts are
secured by a notice of lien, a judgment, are in the process of garnishment, or are under a
payment plan.

(b) The commissioner may cancel at any time as uncollectible any amount due, or
any portion of an amount due, from an employer under this chapter or section 116L.20,
that (1) are uncollectible due to death or bankruptcy, (2) the deleted text beginMinnesotadeleted text end Collection
deleted text begin Enterprisedeleted text endnew text begin Division of the Department of Revenuenew text end under section 16D.04 was unable to
collect, or (3) the commissioner determines that it is not in the public interest to pursue
collection of the amount due.

Sec. 12.

Minnesota Statutes 2006, section 268.07, subdivision 3b, is amended to read:


Subd. 3b.

Limitationsnew text begin on applications and benefit accountsnew text end.

(a) deleted text beginA benefit
account shall be established
deleted text endnew text begin An application for unemployment benefits isnew text end effective the
Sunday of the calendar week that the application deleted text beginfor unemployment benefitsdeleted text end was filed.
Upon specific request of an applicant, an application for unemployment benefits may be
backdated one calendar week deleted text beginprior todeleted text endnew text begin beforenew text end the Sunday of the week the application
was actually filed. An application deleted text beginshalldeleted text endnew text begin maynew text end be backdated only if the applicant was
unemployed throughout 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 deleted text beginbenefit account shall bedeleted text endnew text begin application isnew text end effective the Sunday of the
calendar week the individual first attempted to file an application.

(b) new text beginA benefit account established under subdivision 2 is effective the date the
application for unemployment benefits was effective.
new text end

new text begin (c) new text endA benefit account, once established, may later be withdrawn only if:

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

(2) the applicant has not served deleted text beginadeleted text endnew text begin the nonpayablenew text end waiting week under section
268.085, subdivision 1, clause (5).

A determination or amended determination deleted text beginpursuant todeleted text endnew text begin undernew text end section 268.101, that
was issued before the withdrawal of the benefit account, deleted text beginshall remaindeleted text endnew text begin remainsnew text end in effect
and deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end voided by the withdrawal of the benefit account. A determination of
deleted text begin disqualificationdeleted text endnew text begin ineligibilitynew text end requiring subsequent earnings to satisfy the deleted text begindisqualificationdeleted text endnew text begin
period of ineligibility
new text end under section 268.095, subdivision 10, deleted text beginshall applydeleted text endnew text begin appliesnew text end to the
weekly unemployment benefit amount on the new benefit account.

deleted text begin (c)deleted text endnew text begin (d)new text end An application for unemployment benefits deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end allowed deleted text beginprior todeleted text endnew text begin
before
new text end the Sunday following the expiration of the benefit year on a prior benefit account.
Except as allowed under paragraph (b), deleted text beginadeleted text endnew text begin annew text end applicant may establish only one benefit
account each 52 calendar weeks.

Sec. 13.

Minnesota Statutes 2006, section 268.085, subdivision 1, is amended to read:


Subdivision 1.

Eligibility conditions.

An applicant deleted text beginshalldeleted text endnew text begin maynew text end be eligible to receive
unemployment benefits for any week if:

(1) the applicant has an active benefit account and has filed a continued deleted text beginbiweeklydeleted text end
request for unemployment benefits for that week deleted text beginpursuant todeleted text endnew text begin undernew text end section 268.086;

(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 able to work and was available for suitable employment, and
was actively seeking suitable employment. The applicant's weekly unemployment benefit
amount deleted text beginshall bedeleted text endnew text begin isnew text end reduced one-fifth for each day the applicant is unable to work or is
unavailable for suitable employment. If the computation of the reduced unemployment
benefits is not a whole dollar, it deleted text beginshall bedeleted text endnew text begin isnew text end rounded down to the next lower whole dollar.

This clause deleted text beginshalldeleted text endnew text begin doesnew text end 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 has served a new text beginnonpayable new text endwaiting period of one week that the
applicant is otherwise entitled to some amount of unemployment benefits. This clause
deleted text begin shalldeleted text endnew text begin doesnew text end not apply if the applicant would have been entitled to 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

(6) the applicant has been participating in reemployment assistance services, such as
job search and resume writing classes, if the applicant has been determined in need of
reemployment assistance services by the commissioner, unless deleted text beginthere isdeleted text endnew text begin the applicant hasnew text end
good cause for deleted text beginthe applicant's failuredeleted text endnew text begin failingnew text end to participate.

Sec. 14.

Minnesota Statutes 2006, section 268.085, subdivision 9, is amended to read:


Subd. 9.

Business owners.

Wage credits from an employer may not be used for
unemployment benefit purposes by any applicant who:

(1) individually, jointly, or in combination with the applicant's spouse, parent, or
child owns or controls directly or indirectly 25 percent or more interest in the employer, or
is the spouse, parent, or minor child of any individual who owns or controls directly or
indirectly 25 percent or more interest in the employer; and

(2) is new text begintemporarily, seasonally, or indefinitely unemployed and new text endnot permanently
separated from new text beginthe new text endemployment.

This subdivision is effective when the applicant has been paid four times the
applicant's weekly unemployment benefit amount in the current benefit year.

Sec. 15.

Minnesota Statutes 2006, section 268.085, subdivision 13c, is amended to
read:


Subd. 13c.

Offers of suitable employment.

(a) An applicant deleted text beginshall bedeleted text endnew text begin isnew text end ineligible
for all unemployment benefits for eight calendar weeks if the applicant, without good
cause:

(1) failed to apply for available, suitable employment of which the applicant was
advised by the commissioner or an employer;

(2) failed to accept suitable employment when offered; or

(3) avoided an offer of suitable employment.

(b) "Good cause" is a reason that would cause a reasonable individual who wants
suitable employment to fail to apply for, accept, or avoid suitable employment. Good
cause includes:

(1) the applicant is employed in other suitable employment;

(2) the applicant is in reemployment assistance training;

(3) the applicant formerly worked for the employer and the loss of employment
occurred prior to the commencement of a labor dispute, was permanent or for an indefinite
period, and the applicant failed to apply for or accept the employment because a labor
dispute was in progress at the establishment; or

(4) the applicant formerly worked for the employer and quit that employment
because of a good reason caused by the employer.

(c) This subdivision only applies to offers of suitable employment with a new or a
former employer and does not apply to any type of job transfers, position reassignments,
or changes in job duties or responsibilities during the course of employment with an
employer.

(d) The period of ineligibility under this subdivision deleted text beginand section 268.095 shall begindeleted text endnew text begin
begins
new text end the Sunday of the week the applicant failed to apply for, new text beginfailed to new text endaccept, or avoided
suitable employment without good cause.

(e) This subdivision deleted text beginand section 268.095 shall applydeleted text endnew text begin appliesnew text end to offers of suitable
employment that occur deleted text beginprior todeleted text endnew text begin beforenew text end the effective date of the benefit account and that
occur during the benefit year.

(f) This subdivision deleted text beginand section 268.095 shalldeleted text end only deleted text beginapplydeleted text endnew text begin appliesnew text end to offers of suitable
employment that are considered covered employment under section 268.035, subdivision
12
.

Sec. 16.

Minnesota Statutes 2006, section 268.086, subdivision 2, is amended to read:


Subd. 2.

Continued deleted text beginbiweeklydeleted text end request for unemployment benefits defined.

A
continued deleted text beginbiweeklydeleted text end request for unemployment benefits is a certification by an applicant,
done on a new text beginweekly or new text endbiweekly basisnew text begin as the commissioner designatesnew text end, that the applicant is
unemployed and meets the ongoing eligibility requirements for unemployment benefits
under section 268.085 for a specific week or two-week period. A continued deleted text beginbiweeklydeleted text end
request deleted text beginshalldeleted text endnew text begin mustnew text end include information on possible issues of deleted text begineligibility and disqualificationdeleted text endnew text begin
ineligibility
new text end in accordance with section 268.101, subdivision 1, paragraph (c).

Sec. 17.

Minnesota Statutes 2006, section 268.086, subdivision 7, is amended to read:


Subd. 7.

In-person continued deleted text beginbiweeklydeleted text end request for unemployment benefits.

The
commissioner may require any applicant who has been designated to make a continued
deleted text begin biweeklydeleted text end request for unemployment benefits by deleted text begintelephone, bydeleted text end electronic transmissiondeleted text begin,deleted text end or
by mail to appear for a personal interview at a place, time, and date designated, during
which a written continued deleted text beginbiweeklydeleted text end request for unemployment benefits form deleted text beginshalldeleted text endnew text begin mustnew text end be
completed and submitted by the applicant.

An applicant deleted text beginshall bedeleted text endnew text begin isnew text end ineligible for unemployment benefits for the week or
biweekly period covered by a continued deleted text beginbiweeklydeleted text end request and the benefit account deleted text beginshall
be
deleted text endnew text begin isnew text end considered inactive if the applicant fails, without good cause, to comply with the
requirement that the applicant appear for a personal interview and at that time complete
and submit a written continued deleted text beginbiweeklydeleted text end request form.

Sec. 18.

Minnesota Statutes 2006, section 268.105, subdivision 4, is amended to read:


Subd. 4.

deleted text beginTestimonial powersdeleted text endnew text begin Oaths; subpoenasnew text end.

An unemployment law judge deleted text beginmaydeleted text endnew text begin
has authority to
new text end administer oaths and affirmations, take depositions, and issue subpoenas
to compel the attendance of witnesses and the production of documents and other personal
property considered necessary as evidence in connection with the subject matter of
an evidentiary hearing. The subpoenas deleted text beginshall bedeleted text endnew text begin arenew text end enforceable through the district
court in deleted text beginthe district that the subpoena is issueddeleted text endnew text begin Ramsey Countynew text end. Witnesses subpoenaed,
other than an involved applicant or involved employer or officers and employees of an
involved employer, deleted text beginshalldeleted text endnew text begin mustnew text end be paid by the department the same witness fees as in a
civil action in district court.

Sec. 19.

Minnesota Statutes 2006, section 268.188, is amended to read:


268.188 SUBPOENAS; OATHS.

(a) The commissioner deleted text beginshall have powerdeleted text endnew text begin has authoritynew text end to administer oaths and
affirmations, take depositions, certify to official acts, and issue subpoenas to compel
the attendance of individuals and the production of documents and other personal
property necessary in connection with the administration of the Minnesota unemployment
insurance program.

(b) Individuals subpoenaed, other than applicants or officers and employees of an
employer that is the subject of the inquiry, deleted text beginshall be alloweddeleted text endnew text begin are paid witnessnew text end fees the same
as witness fees in civil actions in district court. The fees need not be paid in advance.

(c) The subpoena deleted text beginshall bedeleted text endnew text begin isnew text end enforceable through the district court in deleted text beginthe district that
the subpoena is issued
deleted text endnew text begin Ramsey Countynew text end.

Sec. 20.

Minnesota Statutes 2006, section 268.19, subdivision 1, is amended to read:


Subdivision 1.

Use of data.

(a) Except as deleted text beginotherwisedeleted text end provided by this section,
data gathered from any person deleted text beginpursuant todeleted text endnew text begin undernew text end the administration of the Minnesota
Unemployment Insurance Law are private data on individuals or nonpublic data not on
individuals as defined in section 13.02, subdivisions 9 and 12, and may not be disclosed
except deleted text beginpursuantdeleted text endnew text begin accordingnew text end to a district court order or section 13.05. A subpoena deleted text beginshalldeleted text endnew text begin isnew text end
not deleted text beginbedeleted text end considered a district court order. These data may be disseminated to and used by
the following agencies without the consent of the subject of the data:

(1) state and federal agencies specifically authorized access to the data by state
or federal law;

(2) any agency of any other state or any federal agency charged with the
administration of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;

new text begin (4) the public authority responsible for child support in Minnesota or any other
state in accordance with section 256.978;
new text end

deleted text begin (4)deleted text endnew text begin (5)new text end human rights agencies within Minnesota that have enforcement powers;

deleted text begin (5)deleted text endnew text begin (6)new text end the Department of Revenue deleted text beginonlydeleted text end to the extent necessary for its duties under
Minnesota laws;

deleted text begin (6)deleted text endnew text begin (7)new text end public and private agencies responsible for administering publicly financed
assistance programs for the purpose of monitoring the eligibility of the program's
recipients;

deleted text begin (7)deleted text endnew text begin (8)new text end the Department of Labor and Industry and the Division of Insurance
Fraud Prevention in the Department of Commerce deleted text beginon an interchangeable basis with the
department
deleted text end for uses consistent with the administration of their duties under Minnesota law;

deleted text begin (8)deleted text endnew text begin (9)new text end local and state welfare agencies for monitoring the eligibility of the data
subject for assistance programs, or for any employment or training program administered
by those agencies, whether alone, in combination with another welfare agency, or in
conjunction with the department or to monitor and evaluate the statewide Minnesota
family investment program by providing data on recipients and former recipients of food
stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care
assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

deleted text begin (9)deleted text endnew text begin (10)new text end local and state welfare agencies for the purpose of identifying employment,
wages, and other information to assist in the collection of an overpayment debt in an
assistance program;

deleted text begin (10)deleted text endnew text begin (11)new text end local, state, and federal law enforcement agencies for the deleted text beginsoledeleted text end purpose of
ascertaining the last known address and employment location of deleted text begina persondeleted text endnew text begin an individualnew text end
who is the subject of a criminal investigation;

deleted text begin (11)deleted text endnew text begin (12)new text end the federal new text beginBureau of Citizenship and new text endImmigration deleted text beginand Naturalization
Service shall have
deleted text endnew text begin Services hasnew text end access to data on specific individuals and specific
employers provided the specific individual or specific employer is the subject of an
investigation by that agency; and

deleted text begin (12)deleted text endnew text begin (13)new text end the Department of Health deleted text beginsolelydeleted text end for the purposes of epidemiologic
investigations.

(b) Data on individuals and employers that are collected, maintained, or used by
the department in an investigation deleted text beginpursuant todeleted text endnew text begin undernew text end section 268.182 are confidential
as to data on individuals and protected nonpublic data not on individuals as defined in
section 13.02, subdivisions 3 and 13, and must not be disclosed except deleted text beginpursuant todeleted text endnew text begin undernew text end
statute or district court order or to a party named in a criminal proceeding, administrative
or judicial, for preparation of a defense.

(c) Data gathered by the department deleted text beginpursuant todeleted text endnew text begin innew text end the administration of the
Minnesota unemployment insurance program must not be made the subject or the basis for
any suit in any civil proceedings, administrative or judicial, unless the action is initiated
by the department.

Sec. 21.

Minnesota Statutes 2006, section 268.194, subdivision 2, is amended to read:


Subd. 2.

Commissioner of finance to be custodian; separate accounts.

(a) The
commissioner of finance deleted text beginshall bedeleted text endnew text begin isnew text end the treasurer and custodian of the trust fund, new text beginand shall
new text endadminister the trust fund in accordance with the directions of the commissionerdeleted text begin, and
issue warrants upon it
deleted text end. The commissioner of finance shall maintain within the trust fund
three separate accounts:

(1) a clearing account;

(2) an unemployment trust fund account; and

(3) an unemployment benefit payment account.

All money payable to the trust fund, upon receipt by the commissioner, deleted text beginshalldeleted text endnew text begin mustnew text end be
forwarded to the commissioner of finance who shall immediately deposit the money in
the clearing account. All money in the clearing account, after clearance, deleted text beginshalldeleted text endnew text begin mustnew text end be
deposited to the credit of Minnesota's account in the federal unemployment trust fund. Tax
refunds payable deleted text beginpursuant todeleted text endnew text begin undernew text end section 268.057 may be paid from the clearing account
or the unemployment benefit payment account.

(b) The unemployment benefit payment account deleted text beginshall consistdeleted text endnew text begin consistsnew text end of all money
requisitioned from Minnesota's account in the federal unemployment trust fund for the
payment of unemployment benefits. Money in the clearing and unemployment benefit
payment accounts may be deposited by the commissioner of finance, under the direction
of the commissioner, in any depository bank that general funds of Minnesota may be
deposited, but no public deposit insurance charge or premium deleted text beginshalldeleted text endnew text begin maynew text end be paid out of
the trust fund. Money in the clearing and unemployment benefit payment accounts deleted text beginshalldeleted text endnew text begin
must
new text end be maintained in separate accounts on the books of the depository bank. This money
deleted text begin shalldeleted text endnew text begin mustnew text end be secured by the depository bank to the same extent and in the same manner
as required by the general depository law of Minnesota.

Sec. 22.

Minnesota Statutes 2006, section 268.194, subdivision 3, is amended to read:


Subd. 3.

Exclusive use.

(a) Money requisitioned from Minnesota's account in
the federal unemployment trust fund deleted text beginshalldeleted text endnew text begin mustnew text end be used exclusively for the payment of
unemployment benefits and for tax refunds deleted text beginpursuant todeleted text endnew text begin undernew text end section 268.057, except that
money credited to Minnesota's account deleted text beginpursuant todeleted text endnew text begin undernew text end United States Code, title 42,
section 1103 of the Social Security Act, also known as the Reed Act, may be used for
the payment of expenses of administration. The commissioner deleted text beginshall from time to timedeleted text endnew text begin
may
new text end requisition from the federal unemployment trust fund the amounts necessary for the
payment of unemployment benefits and tax refunds for a reasonable future period. Upon
receipt the commissioner of finance shall deposit the money in the unemployment benefit
payment account deleted text beginand issue warrants for the payment of unemployment benefits solely
from the unemployment benefit payment account
deleted text end.

(b) Expenditures of money in the unemployment benefit payment account and
tax refunds from the clearing account deleted text beginshalldeleted text endnew text begin arenew text end not deleted text beginbedeleted text end subject to any provisions of law
requiring specific appropriations or other formal release by state officers.

deleted text begin (c) All warrants issued for the payment of unemployment benefits and tax refunds
shall bear the signature of the commissioner of finance and the counter signature of the
commissioner.
deleted text end

Sec. 23.

Minnesota Statutes 2006, section 268.196, subdivision 3, is amended to read:


Subd. 3.

Contingent account.

(a) There is deleted text beginherebydeleted text end created in the state treasury a
special account, to be known as the contingent account, that deleted text beginshalldeleted text endnew text begin doesnew text end not lapse nor
revert to any other deleted text begintrustdeleted text end fundnew text begin or accountnew text end. This account deleted text beginshall consistdeleted text endnew text begin consistsnew text end of all money
appropriated deleted text begintherefordeleted text end by the legislature, all money deleted text beginin the form of interest and penaltiesdeleted text end
collected deleted text beginpursuant to sections 268.057, 268.18, and 268.184, all money received in the
form of voluntary contributions to this account
deleted text endnew text begin under this chapter that is required to be
placed in this account
new text end, and any interest earned on the account. All money in this account
deleted text begin shall bedeleted text endnew text begin isnew text end supplemental to all federal money available to the commissioner. Money in
this account is deleted text beginherebydeleted text end appropriated to the commissioner and deleted text beginshall bedeleted text endnew text begin isnew text end available to the
commissioner for deleted text beginthose expenditures the commissioner considers necessary in connection
with the
deleted text end administration of the Minnesota unemployment insurance program.

(b) deleted text beginWhenever the commissioner spends money from the contingent account for the
administration of the Minnesota unemployment insurance program for which money will
later be made available by the federal government, the contingent account shall, when
money is available, be reimbursed from the administration account. The commissioner
shall certify to the commissioner of finance the amount of the reimbursement and the
commissioner of finance shall transfer that amount from the administration account to
the contingent account.
deleted text end

deleted text begin (c)deleted text end All money in this account deleted text beginshalldeleted text endnew text begin mustnew text end be deposited, administered, and disbursed
in the same manner and under the same conditions and requirements as is provided by law
for the other special accounts in the state treasury. On June 30 of each year, all amounts in
excess of $300,000 in this account deleted text beginshalldeleted text endnew text begin mustnew text end be paid over to the deleted text beginunemployment insurancedeleted text end
trust fund.

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

new text begin (a) The revisor of statutes shall change the word "attorney" to "attorney licensed
to practice law in Minnesota" in Minnesota Statutes, sections 268.067 and 268.105,
subdivision 7.
new text end

new text begin (b) The revisor of statutes shall change the term "common law burden of proof" to
"burden of proof" in Minnesota Statutes, section 268.069.
new text end

new text begin (c) The revisor of statutes shall change the term "continued biweekly request" to
"continued request" in Minnesota Statutes, chapter 268.
new text end

new text begin (d) The revisor of statutes shall change the term "14 days" to "14 calendar days" in
Minnesota Statutes, section 268.086.
new text end

new text begin (e) The revisor of statutes shall change the term "electronic mail address" to
"electronic mail address or telephone number" in Minnesota Statutes, section 268.086.
new text end

Sec. 25. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 7 and 9 to 24 are effective September 30, 2007, except for section 24,
paragraph (e), which is effective the day following final enactment. Section 8 is effective
the day following final enactment.
new text end

ARTICLE 4

ADMINISTRATIVE RULES INCORPORATED INTO STATUTES

Section 1. new text beginSTATEMENT OF INTENT.
new text end

new text begin This article incorporates long-standing administrative rules into the statute. This
incorporation is not intended to affect the application or interpretation of any provision.
new text end

Sec. 2.

Minnesota Statutes 2006, section 268.035, subdivision 15, is amended to read:


Subd. 15.

Employment.

new text begin(a) new text end"Employment" means service performed by:

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

(2) an officer of a corporation;

(3) a member of a limited liability company who is considered an employee under
the common law of employer-employee; deleted text beginor
deleted text end

(4) new text beginproduct demonstrators in retail stores or other locations to aid in the sale of
products. The person that pays the wages is considered the employer; or
new text end

new text begin (5) new text endan individual who performs services for a person for compensation, as:

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

(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.

This clause deleted text beginshall applydeleted text endnew text begin appliesnew text end 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.

new text begin (b) Employment does not include service as a juror.
new text end

Sec. 3.

Minnesota Statutes 2006, section 268.035, is amended by adding a subdivision
to read:


new text begin Subd. 25b. new text end

new text begin Trucking industry/independent contractors. new text end

new text begin In the trucking industry,
an owner-operator of a vehicle that is licensed and registered as a truck, tractor, or
truck-tractor by a governmental motor vehicle regulatory agency is an independent
contractor, and is not considered an employee, while performing services in the operation
of the truck only if each of the following factors is present:
new text end

new text begin (1) the individual owns the equipment or holds it under a bona fide lease arrangement;
new text end

new text begin (2) the individual is responsible for the maintenance of the equipment;
new text end

new text begin (3) the individual bears the principal burdens of the operating costs, including fuel,
repairs, supplies, vehicle insurance, and personal expenses while on the road;
new text end

new text begin (4) the individual is responsible for supplying the necessary personal services
to operate the equipment;
new text end

new text begin (5) the individual's compensation is based on factors related to the work performed,
such as a percentage of any schedule of rates, and not on the basis of the hours or time
expended; and
new text end

new text begin (6) the individual enters into a written contract that specifies the relationship to be
that of an independent contractor and not that of an employee.
new text end

Sec. 4.

Minnesota Statutes 2006, section 268.035, subdivision 29, is amended to read:


Subd. 29.

Wages.

new text begin(a) new text end"Wages" means all compensation for services, including
commissions; bonusesnew text begin, awards, and prizesnew text end; severance payments;new text begin standby pay;new text end vacation and
holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by
a customer of an employer and accounted for by the employee to the employer; sickness
and accident disability payments, except as otherwise provided in this subdivision; and the
cash value of deleted text beginall compensation in any medium other than cashdeleted text endnew text begin housing, utilities, meals,
exchanges of services, and any other goods and services provided to compensate for
an employee's services
new text end, except:

(1) the amount of any payment made to, or on behalf of, an employee under a plan
established by an employer that makes provision for employees generally or for a class
or classes of employees, including any amount paid by an employer for insurance or
annuities, or into a plan, to provide for a payment, on account of (i) retirement or (ii)
medical and hospitalization expenses in connection with sickness or accident disability,
or (iii) death;

(2) the payment by an employer of the tax imposed upon an employee under United
States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect
to compensation paid to an employee for domestic employment in a private household of
the employer or for agricultural employment;

(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or
to a trust described in United States Code, title 26, section 401(a) of the federal Internal
Revenue Code, that is exempt from tax under section 501(a) at the time of the payment
unless the payment is made to an employee of the trust as compensation for services as an
employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at
the time of the payment, is a plan described in section 403(a);

(4)new text begin the value of any special discount or markdown allowed to an employee on goods
purchased from or services supplied by the employer where the purchases are optional and
do not constitute regular or systematic payment for services;
new text end

new text begin (5) customary and reasonable directors' fees paid to individuals who are not
otherwise employed by the corporation of which they are directors;
new text end

new text begin (6) the payment to employees for reimbursement of meal expenses when employees
are required to perform work after their regular hours;
new text end

new text begin (7) the payment into a trust or plan for purposes of providing legal or dental services
if provided for all employees generally or for a class or classes of employees;
new text end

new text begin (8) the value of parking facilities provided or paid for by an employer, in whole or in
part, if provided for all employees generally or for a class or classes of employees;
new text end

new text begin (9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral,
or other right;
new text end

new text begin (10) advances or reimbursements for traveling or other bona fide ordinary and
necessary expenses incurred or reasonably expected to be incurred in the business of the
employer. Traveling and other reimbursed expenses must be identified either by making
separate payments or by specifically indicating the separate amounts where both wages
and expense allowances are combined in a single payment;
new text end

new text begin (11) residual payments to radio, television, and similar artists that accrue after
the production of television commercials, musical jingles, spot announcements, radio
transcriptions, film sound tracks, and similar activities;
new text end

new text begin (12) supplemental unemployment benefits paid under a plan established by an
employer, that makes provisions for employees generally or for a class or classes of
employees for the supplementing of unemployment benefits under the written terms
of an agreement, contract, trust arrangement, or other instrument if the plan provides
benefits that are only supplemental to, and does not replace or duplicate any state or
federal unemployment benefits. The plan must provide that funds are paid solely for the
supplementing of state or federal unemployment benefits. The plan must provide that any
supplemental benefits are payable only if the applicant has applied for all unemployment
benefits available. The plan must provide that supplemental benefits, when combined with
the applicant's weekly unemployment benefits available, may not exceed the applicant's
regular weekly pay. The plan must not allow the assignment of supplemental benefits or
payment upon the employee's withdrawal from the plan, or quitting of employment or the
termination of the plan. The plan must not require any consideration from the applicant
and must not be designed for the purpose of avoiding the payment of Social Security
obligations, or unemployment taxes on money disbursed from the plan;
new text end

new text begin (13)new text end sickness or accident disability payments made by the employer after the
expiration of six calendar months following the last calendar month that the individual
worked for the employer;

deleted text begin (5)deleted text endnew text begin (14)new text end disability payments made under the provisions of any workers' compensation
law;

deleted text begin (6)deleted text endnew text begin (15)new text end sickness or accident disability payments made by a third party payer such as
an insurance company;new text begin or
new text end

deleted text begin (7)deleted text endnew text begin (16)new text end payments made into a trust fund, or for the purchase of insurance or an
annuity, to provide for sickness or accident disability payments to employeesdeleted text begin pursuant
to
deleted text endnew text begin undernew text end a plan or system established by the employer that provides for the employer's
employees generally or for a class or classes of employeesdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (8)deleted text endnew text begin (b)new text end Nothing in this subdivision deleted text beginshall excludedeleted text endnew text begin excludesnew text end from the term "wages" any
payment made under any type of salary reduction agreement, including payments made
under a cash or deferred arrangement and cafeteria plan, as defined in United States Code,
title 26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that
the employee has the option to receive the payment in cash.

new text begin (c) Wages includes payments made for services as a caretaker. Unless there is a
contract or other proof to the contrary, compensation is considered as being equally
received by a married couple where the employer makes payment to only one spouse, or
by all tenants of a household who perform services where two or more individuals share
the same dwelling and the employer makes payment to only one individual.
new text end

new text begin (d) Wages includes payments made for services by a migrant family. Where services
are performed by a married couple or a family and an employer makes payment to only
one individual, each worker is considered as having received an equal share of the
compensation unless there is a contract or other proof to the contrary.
new text end

new text begin (e) Wages includes advances or draws against future earnings, when paid, unless
the payments are designated as a loan or return of capital on the books of the employer
at the time of payment.
new text end

new text begin (f) Wages includes payments made by a subchapter "S" corporation, as organized
under the Internal Revenue Code, to or on behalf of officers and shareholders that are
reasonable compensation for services performed for the corporation.
new text end

new text begin For a subchapter "S" corporation, wages does not include:
new text end

new text begin (1) a loan for business purposes to an officer or shareholder evidenced by a
promissory note signed by an officer before the payment of the loan proceeds and recorded
on the books and records of the corporation as a loan to an officer or shareholder;
new text end

new text begin (2) a repayment of a loan or payment of interest on a loan made by an officer to the
corporation and recorded on the books and records of the corporation as a liability;
new text end

new text begin (3) a reimbursement of reasonable corporation expenses incurred by an officer and
documented by a written expense voucher and recorded on the books and records of
the corporation as corporate expenses; and
new text end

new text begin (4) a reasonable lease or rental payment to an officer who owns property that is
leased or rented to the corporation.
new text end

Sec. 5.

Minnesota Statutes 2006, section 268.042, subdivision 1, is amended to read:


Subdivision 1.

Employer registration.

(a) Each employer deleted text beginshalldeleted text endnew text begin mustnew text end, 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 registrationnew text begin, including the actual physical street and city address of the
employer
new text end.

(b)new text begin 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.
new text end

new text begin (c)new text end Except as provided in subdivision 3, any person that is or becomes an employer
subject to the Minnesota Unemployment Insurance Law new text beginbecause of the application of
section 268.035, subdivision 20, clause (14), (17), or (33),
new text endwithin any calendar year deleted text beginshall
be
deleted text endnew text begin isnew text end considered to be subject to this chapter the entire calendar year.

deleted text begin (c) Upondeleted text endnew text begin (d) Within 30 calendar days ofnew text end the termination of business, an employer
that has been assigned a tax account or reimbursable account deleted text beginshalldeleted text endnew text begin mustnew text end notify the
commissioner by electronic transmission, in a format prescribed by the commissioner,
that the employer no longer has employees and does not intend or expect to pay wages
to any employees in the next calendar year and into the foreseeable future. Upon deleted text beginsuchdeleted text end
notification, deleted text beginthe commissioner shall not requiredeleted text end the employernew text begin is no longer requirednew text end to file
wage detail reports under section 268.044, subdivision 1, paragraph (d).

new text begin (e) An employer that has terminated business regains its previous tax account under
section 268.045, with the experience rating history of that account, if the employer again
commences business and if:
new text end

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

new text begin (2) the experience rating history regained contains taxable wages; and
new text end

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

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 3315.0210; 3315.0220; 3315.0515; 3315.0520; 3315.0525;
3315.0530, subparts 2, 3, 4, 5, and 6; 3315.0540; 3315.0550; 3315.0910, subparts 1, 2,
3, 4, 5, 6, 7, and 8; 3315.1005, subparts 1 and 3; 3315.1315, subpart 4; 3315.2010; and
3315.2810, subparts 2 and 4,
new text end new text begin are repealed.
new text end

Sec. 7. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective September 30, 2007.
new text end

ARTICLE 5

TERMINOLOGY CHANGE

Section 1. new text beginSTATEMENT OF INTENT.
new text end

new text begin This article substitutes the term "disqualify" or similar terms with the term
"ineligible" or similar terms in Minnesota Statutes, chapter 268. Both terms are currently
used throughout the unemployment insurance law. This substitution is not intended as
a substantive change. It is done for simplification, to achieve consistency and avoid
confusion, as the terms have the same common meaning and the same effect under the
statute.
new text end

Sec. 2.

Minnesota Statutes 2006, section 268.035, subdivision 12, is amended to read:


Subd. 12.

Covered employment.

"Covered employment" means the following
unless excluded as "noncovered employment" under subdivision 20:

(1) an employee's entire employmentnew text begin during the calendar quarternew text end if:

(i) the employment is performed entirely in Minnesota;

(ii) the employment is performed primarily in Minnesota, and the employment
performed outside Minnesota is incidental to the employment in Minnesota; or

(iii) the employment is not performed primarily in any one state but some of the
employment is performed in Minnesota and the base of operations or the place from which
the employment is directed or controlled is in Minnesota; or the base of operations or
place from which the employment is directed or controlled is not in any state deleted text beginin whichdeleted text endnew text begin
where
new text end part of the employment is performed, but the employee's residence is in Minnesota;

(2) an employee's employmentnew text begin during the calendar quarternew text end wherever performed
within the United States or Canada, if:

(i) the employment is not covered under the unemployment insurance program of
any other state or Canada; and

(ii) the place from which the employment is directed or controlled is in Minnesota;

(3) the employmentnew text begin during the calendar quarternew text end of an employee who is a citizen of
the United States, performed outside the United States, except in Canada, in the employ of
an American employer if:

(i) the employer's principal place of business in the United States is located in
Minnesota;

(ii) the employer has no place of business in the United States, but the employer
is an individual who is a resident of Minnesota, or the employer is a corporation that is
organized under the laws of Minnesota, or the employer is a partnership or a trust and the
number of partners or trustees who are residents of Minnesota is greater than the number
who are residents of any one other state;

(iii) none of the criteria of subclauses (i) and (ii) is met but the employer has elected
coverage in Minnesota, or the employer having failed to elect coverage in any state,
an applicant has made an application for unemployment benefits under section 268.07,
based on the employment;

(iv) an "American employer," for the purposes of this subdivision, means an
individual who is a resident of the United States, or a partnership if two-thirds or more
of the partners are residents of the United States, or a trust, if all of the trustees are
residents of the United States, or a corporation organized under the laws of the United
States, or of any state; or

(v) as used in this subdivision, the term "United States" includes the states, the
District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands;

(4) all employmentnew text begin during the calendar quarternew text end performed by an officer or member
of the crew of an American vessel on or in connection with the vessel, if the operating
office from which the operations of the vessel operating on navigable waters within, or
within and without, the United States are ordinarily and regularly supervised, managed,
directed, and controlled is in Minnesota; and

(5) for the purposes of satisfying deleted text begindisqualificationsdeleted text endnew text begin the period of ineligibilitynew text end under
section 268.095, subdivision 10, "covered employment" deleted text beginshall includedeleted text endnew text begin includesnew text end covered
employment under an unemployment insurance program of any other state or employment
covered under an unemployment insurance program established by an act of Congress.

Sec. 3.

Minnesota Statutes 2006, section 268.069, subdivision 1, is amended to read:


Subdivision 1.

Requirements.

The commissioner shall 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 deleted text beginisdeleted text endnew text begin hasnew text end not deleted text beginsubject to a disqualification fromdeleted text endnew text begin been held ineligible fornew text end
unemployment benefits under section 268.095 because of a quit or discharge;

(3) the applicant has met all of the ongoing eligibility requirements under sections
268.085 and 268.086;

(4) the applicant does not have an outstanding overpayment of unemployment
benefits, including any penalties or interest; and

(5) the applicant deleted text beginisdeleted text endnew text begin hasnew text end not new text beginbeen held new text endineligible for unemployment benefits under
section 268.182 because of a false representation or concealment of facts.

Sec. 4.

Minnesota Statutes 2006, section 268.095, subdivision 4, is amended to read:


Subd. 4.

Discharge.

An applicant who was discharged from employment by an
employer deleted text beginshall be disqualified fromdeleted text endnew text begin is ineligible fornew text end all unemployment benefits according
to subdivision 10 only if:

(1) the applicant was discharged because of employment misconduct as defined
in subdivision 6; or

(2) the applicant was discharged because of aggravated employment misconduct as
defined in subdivision 6a.

Sec. 5.

Minnesota Statutes 2006, section 268.095, subdivision 7, is amended to read:


Subd. 7.

Act or omissions after separation.

An applicant deleted text beginshalldeleted text endnew text begin maynew text end not be
deleted text begin disqualified fromdeleted text endnew text begin held ineligible fornew text end unemployment benefits under deleted text beginsection 268.085,
subdivision 13c
, and
deleted text end this section for any acts or omissions occurring after the applicant's
separation from employment with the employer. A layoff deleted text begindue todeleted text endnew text begin because ofnew text end lack of work
is considered a separation from employment.

Sec. 6.

Minnesota Statutes 2006, section 268.095, subdivision 10, is amended to read:


Subd. 10.

deleted text beginDisqualificationdeleted text endnew text begin Ineligibilitynew text end duration.

(a) deleted text beginA disqualificationdeleted text endnew text begin
Ineligibility
new text end from the payment of all unemployment benefits under subdivisions 1 and
4 deleted text beginshall bedeleted text endnew text begin isnew text end for the duration of the applicant's unemployment and until the end of the
calendar week that the applicant had total earnings in subsequent covered employment of
eight times the applicant's weekly unemployment benefit amount.

(b) deleted text beginAny disqualificationdeleted text endnew text begin Ineligibilitynew text end imposed under subdivisions 1 and 4 deleted text beginshall begindeleted text endnew text begin
begins
new text end on the Sunday of the week that the applicant became separated from employment.

(c) In addition to paragraph (a), if the applicant was discharged from employment
because of aggravated employment misconduct, wage credits from that employment
deleted text begin shall bedeleted text endnew text begin arenew text end canceled.

Sec. 7.

Minnesota Statutes 2006, section 268.101, is amended to read:


268.101 DETERMINATIONS ON ISSUES OF deleted text beginDISQUALIFICATION AND
ELIGIBILITY
deleted text endnew text begin INELIGIBILITYnew text end.

Subdivision 1.

Notification.

(a) In an application for unemployment benefits,
each applicant deleted text beginshalldeleted text endnew text begin mustnew text end 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 deleted text beginprior todeleted text endnew text begin beforenew text end
the date of the application. If the reason reported for no longer working for any of those
employers is other than a layoff deleted text begindue todeleted text endnew text begin because ofnew text end lack of work, that deleted text beginshall raisedeleted text endnew text begin raisesnew text end
an issue of deleted text begindisqualificationdeleted text endnew text begin ineligibilitynew text end that the department deleted text beginshalldeleted text endnew text begin mustnew text end determine. An
applicant deleted text beginshalldeleted text endnew text begin mustnew text end report any offers of employment refused during the eight calendar
weeks deleted text beginprior todeleted text endnew text begin beforenew text end 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, deleted text beginshall be considereddeleted text endnew text begin isnew text end a violation of
section 268.182, subdivision 2.

In an application, the applicant deleted text beginshalldeleted text endnew text begin must new text end also provide all information necessary to
determine the applicant's eligibility for unemployment benefits under deleted text beginsection 268.085deleted text endnew text begin this
chapter
new text end. If the applicant fails or refuses to provide information necessary to determine
the applicant's eligibility for unemployment benefits deleted text beginunder section 268.085deleted text end, the applicant
deleted text begin shall bedeleted text endnew text begin isnew text end ineligible for unemployment benefits under section 268.085, subdivision 2, until
the applicant provides this required information.

(b) Upon establishment of a benefit accountnew text begin under section 268.07, subdivision 2new text end, the
commissioner shall 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 new text beginand format new text endprescribed by the commissioner,
any issue of deleted text begindisqualification or any issue of eligibilitydeleted text endnew text begin ineligibilitynew text end. An employer deleted text beginshalldeleted text endnew text begin
must
new text end be informed of the effect that failure to raise an issue of deleted text begindisqualificationdeleted text endnew text begin ineligibility
as a result of a quit or discharge of the applicant,
new text end within ten calendar days after sending of
the notice, as provided for under subdivision 2, paragraph (b), may have on the employer
under section 268.047.

(c) Each applicant deleted text beginshalldeleted text endnew text begin mustnew text end report any employment, new text beginand new text endloss of employment, and
offers of employment refused, during those weeks the applicant filed continued deleted text beginbiweeklydeleted text end
requests for unemployment benefits deleted text beginpursuant todeleted text endnew text begin undernew text end section 268.086. Each applicant
who stops filing continued deleted text beginbiweeklydeleted text end requests during the benefit year and later begins
filing continued deleted text beginbiweeklydeleted text end requests during that same benefit year deleted text beginshalldeleted text endnew text begin mustnew text end report the
name of any employer the applicant worked for during the period between the filing
of continued deleted text beginbiweeklydeleted text end requests and the reason the applicant stopped working for the
employer. The applicant deleted text beginshalldeleted text endnew text begin mustnew text end report any offers of employment refused during the
period between the filing of continued deleted text beginbiweeklydeleted text end requests for unemployment benefits.
Those employers from which the applicant has reported a loss of employment deleted text beginpursuant
to
deleted text endnew text begin undernew text end this paragraph deleted text beginshalldeleted text endnew text begin mustnew text end be notified by mail or electronic transmission and
provided an opportunity to raise, in a manner prescribed by the commissioner, any issue
of deleted text begindisqualification or any issue of eligibilitydeleted text endnew text begin ineligibilitynew text end. An employer deleted text beginshalldeleted text endnew text begin mustnew text end be
informed of the effect that failure to raise an issue new text beginof ineligibility as a result of a quit or a
discharge of the applicant
new text endmay 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 deleted text beginhave the potential of disqualifyingdeleted text endnew text begin result innew text end the applicant deleted text beginfromdeleted text endnew text begin
being ineligible for
new text end unemployment benefits under section 268.095, new text beginbecause of a quit or
discharge,
new text endor 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 deleted text begindue todeleted text endnew text begin because ofnew text end lack of work, that deleted text beginshall raisedeleted text endnew text begin raisesnew text end
an issue of deleted text begindisqualificationdeleted text endnew text begin ineligibilitynew text end and the applicant deleted text beginshall bedeleted text endnew text begin isnew text end 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 deleted text beginshall bedeleted text endnew text begin isnew text end ineligible for
unemployment benefits under section 268.085, subdivision 2, until the applicant provides
this required information.

Subd. 2.

deleted text beginDisqualificationdeleted text end Determination.

(a) The commissioner shall determine
any issue of deleted text begindisqualificationdeleted text endnew text begin ineligibilitynew text end raised by information required from an applicant
under subdivision 1, paragraph (a) or (c), and send to the applicant and new text beginany involved
new text endemployer, by mail or electronic transmission, a determination of deleted text begindisqualificationdeleted text endnew text begin eligibilitynew text end
or a determination of deleted text beginnondisqualificationdeleted text endnew text begin ineligibilitynew text end, as is appropriate. The determination
deleted text begin shalldeleted text endnew text begin on an issue of ineligibility as a result of a quit or a discharge of the applicant mustnew text end
state the effect on the employer under section 268.047. A determination deleted text beginshalldeleted text endnew text begin mustnew text end be
made deleted text beginpursuant todeleted text endnew text begin in accordance withnew text end this paragraph even if a notified employer has not
raised the issue of deleted text begindisqualificationdeleted text endnew text begin ineligibilitynew text end.

(b) The commissioner shall determine any issue of deleted text begindisqualificationdeleted text endnew text begin ineligibilitynew text end
raised by an employer and send to the applicant and that employer, by mail or electronic
transmission, a determination of deleted text begindisqualificationdeleted text endnew text begin eligibilitynew text end or a determination of
deleted text begin nondisqualificationdeleted text endnew text begin ineligibilitynew text end as is appropriate. The determination deleted text beginshalldeleted text endnew text begin on an issue of
ineligibility as a result of a quit or discharge of the applicant must
new text end state the effect on the
employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer deleted text beginprior todeleted text endnew text begin beforenew text end the application for
unemployment benefits;

(2) did not employ the applicant during the six calendar months deleted text beginprior todeleted text endnew text begin beforenew text end the
application for unemployment benefits; and

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

then any exception under section 268.047, subdivisions 2 and 3, deleted text beginshall begindeleted text endnew text begin beginsnew text end the
Sunday two weeks following the week that the issue of deleted text begindisqualificationdeleted text endnew text begin ineligibility as a
result of a quit or discharge of the applicant
new text end was raised by the employer.

new text begin 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.
new text end

deleted text begin (c) If any time within 24 months from the establishment of a benefit account
the commissioner finds that an applicant failed to report any employment, or loss of
employment that was required to be provided by the applicant under this section, the
commissioner shall determine any issue of disqualification on that loss of employment
and send to the applicant and involved employer, by mail or electronic transmission,
a determination of disqualification or a determination of nondisqualification, as is
appropriate. The determination shall state the effect on the employer under section
deleted text begin268.047deleted text end.
deleted text end

deleted text begin This paragraph shall not prevent the imposition of any penalty under section deleted text begin268.18,
subdivision 2
deleted text end
, or deleted text begin268.182deleted text end.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end An issue of deleted text begindisqualification shall bedeleted text endnew text begin ineligibility isnew text end 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, without regard to any
deleted text begin common lawdeleted text end burden of proof.

deleted text begin (e) A determination of disqualification or a determination of nondisqualification shall
be final unless an appeal is filed by the applicant or notified employer within 30 calendar
days after sending. The determination shall contain a prominent statement indicating
the consequences of not appealing. Proceedings on the appeal shall be conducted in
accordance with section deleted text begin268.105deleted text end.
deleted text end

deleted text begin (f) An issue of disqualification for purposes of this section shall include any reason
for no longer working for an employer other than a layoff due to lack of work, any
question of a disqualification from unemployment benefits under section deleted text begin268.095deleted text end, any
question of an exception to disqualification under section deleted text begin268.095deleted text end, any question of effect
on an employer under section deleted text begin268.047deleted text end, and any question of an otherwise imposed
disqualification that an applicant has satisfied under section deleted text begin268.095, subdivision 10deleted text end.
deleted text end

deleted text begin (g)deleted text endnew text begin (d)new text end Regardless of the requirements of this subdivision, the commissioner is not
required to send to an applicant a new text begincopy of the new text enddetermination where the applicant has
satisfied any otherwise deleted text beginpotential disqualificationdeleted text endnew text begin period of ineligibility because of a quit or
a discharge
new text end under section 268.095, subdivision 10.

new text begin (e) The commissioner may issue a determination on an issue of ineligibility at any
time 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.
new text end

new text begin This paragraph does not prevent the imposition of a penalty under section new text begin268.18,
subdivision 2
new text end
, or new text begin268.182new text end.
new text end

new text begin (f) A determination of eligibility or determination of ineligibility is final unless an
appeal is filed by the applicant or notified 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 new text begin268.105new text end.
new text end

new text begin (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.
new text end

new text begin (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant,
the employer will be (1) sent a copy of the determination of eligibility or a determination
of ineligibility, or (2) considered an involved employer for purposes of an appeal under
section new text begin268.105, only if the employer raised the issue of ineligibilitynew text end.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Eligibility determination. deleted text end

deleted text begin (a) The commissioner shall determine any
issue of eligibility raised by an employer, and send to the applicant and that employer,
by mail or electronic transmission, a determination of eligibility or a determination
of ineligibility, as is appropriate.
deleted text end

deleted text begin (b) The commissioner shall determine any issue of eligibility raised by information
obtained from an applicant and send to the applicant, by mail or electronic transmission,
a determination of eligibility or a determination of ineligibility, as is appropriate. A
determination shall be made pursuant to this paragraph even if a notified employer has
not raised the issue of eligibility.
deleted text end

deleted text begin (c) If any time within 24 months from the establishment of a benefit account the
commissioner finds the applicant failed to provide, on an application for unemployment
benefits or on a continued biweekly request for unemployment benefits, requested
information on an issue of eligibility, the commissioner shall determine the issue of
eligibility and send to the applicant, by mail or electronic transmission, a determination of
eligibility or a determination of ineligibility, as is appropriate.
deleted text end

deleted text begin This paragraph shall not prevent the imposition of a penalty under section deleted text begin268.18,
subdivision 2
deleted text end
, or deleted text begin268.182deleted text end.
deleted text end

deleted text begin (d) A determination of eligibility or determination of ineligibility shall be final
unless an appeal is filed by the applicant or notified employer within 30 calendar
days after sending. The determination shall contain a prominent statement indicating
the consequences of not appealing. Proceedings on the appeal shall be conducted in
accordance with section deleted text begin268.105deleted text end.
deleted text end

deleted text begin (e) An issue of eligibility for purposes of this section shall include any question
regarding the denial or allowing of unemployment benefits under sections deleted text begin268.085deleted text end,
deleted text begin268.086deleted text end, deleted text begin268.115deleted text end, deleted text begin268.125deleted text end, deleted text begin268.135deleted text end, and deleted text begin268.155deleted text end.
deleted text end

deleted text begin (f) Only if an employer raised the issue of eligibility shall the employer be: (1) sent
the determination of eligibility or a determination of ineligibility, or (2) considered an
involved employer for purposes of an appeal under section deleted text begin268.105deleted text end.
deleted text end

Subd. 3a.

Direct hearing.

Regardless of any provision of the Minnesota
Unemployment Insurance Law, the commissioner or an unemployment law judge
may, deleted text beginprior todeleted text endnew text begin beforenew text end a determination being made under this chapter, refer deleted text beginany issue of
disqualification,
deleted text end any issue of deleted text begineligibilitydeleted text endnew text begin ineligibilitynew text end, or any other issue under this chapter,
directly for hearing in accordance with section 268.105, subdivision 1. The status of the
issue deleted text beginshall bedeleted text endnew text begin isnew text end the same as if a determination had been made and an appeal filed.

Subd. 4.

Amended determination.

Unless an appeal has been filed, the
commissioner, on the commissioner's own motion, may reconsider a determination deleted text beginof
disqualification or nondisqualification or a determination
deleted text end of eligibility or ineligibility that
has not become final and issue an amended determination. Any amended determination
deleted text begin shalldeleted text endnew text begin mustnew text end be sent to the applicant and any involved employer by mail or electronic
transmission. Any amended determination deleted text beginshall bedeleted text endnew text begin isnew text end final unless an appeal is filed by the
applicant or notified employer within deleted text begin30deleted text endnew text begin 20new text end calendar days after sending. Proceedings on
the appeal deleted text beginshall bedeleted text endnew text begin arenew text end conducted in accordance with section 268.105.

Subd. 5.

Unemployment benefit payment.

If a determination or amended
determination allows unemployment benefits to an applicant, the unemployment benefits
deleted text begin shalldeleted text endnew text begin mustnew text end be paid regardless of any appeal period or any appeal having been filed.

Subd. 6.

Overpayment.

A determination or amended determination that holds an
applicant deleted text begindisqualified ordeleted text end ineligible for unemployment benefits for periods an applicant
has been paid benefits is considered an overpayment of those unemployment benefits
under section 268.18, subdivision 1.

Sec. 8.

Minnesota Statutes 2006, section 268.125, subdivision 3, is amended to read:


Subd. 3.

Eligibility conditions.

An applicant is eligible to receive additional
unemployment benefits for any week during the applicant's benefit year if:

(1) the applicant was laid off from employment as a result of a reduction under
subdivision 1 or was laid off deleted text begindue todeleted text endnew text begin because ofnew text end lack of work from that employer during the
three-month period before, or the three-month period after, the month of the reduction
under subdivision 1;

(2) the applicant meets the eligibility requirements under section 268.085;

(3) the applicant is not deleted text beginsubject to a disqualificationdeleted text endnew text begin ineligiblenew text end under section 268.095new text begin
because of a quit or a discharge
new text end
; deleted text beginfor the purpose of this subdivision, the disqualifying
conditions in section 268.095, and the requalifying requirements, apply to the receipt of
additional unemployment benefits;
deleted text end

(4) the applicant has exhausted regular unemployment benefits under section 268.07,
is not entitled to receive extended unemployment benefits under section 268.115, and
is not entitled to receive unemployment benefits under any other state or federal law
for that week; new text beginand
new text end

(5) a majority of the applicant's wage credits were from the employer that had a
reduction in operations under subdivision 1.

Sec. 9. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In the headnote of Minnesota Statutes, section 268.095, the revisor of statutes shall
change the term "DISQUALIFICATION" to "INELIGIBILITY."
new text end

Sec. 10. new text beginEFFECTIVE DATE.
new text end

new text begin This article applies to all department determinations, appeal decisions, and other
actions done on or after September 30, 2007.
new text end

ARTICLE 6

STYLE CHANGES

Section 1. new text beginSTATEMENT OF INTENT.
new text end

new text begin This article makes style changes that conform to preferred modern statutory drafting
conventions for the use of clear, concise, and plain language.
new text end

Sec. 2.

Minnesota Statutes 2006, section 268.001, is amended to read:


268.001 CITATION; MINNESOTA UNEMPLOYMENT INSURANCE LAW.

This chapter deleted text beginshalldeleted text endnew text begin willnew text end be known and may be cited as the "Minnesota Unemployment
Insurance Law."

Sec. 3.

Minnesota Statutes 2006, section 268.03, subdivision 1, is amended to read:


Subdivision 1.

Statement.

The public purpose of this chapter is: Economic
insecurity deleted text begindue todeleted text endnew text begin because ofnew text end involuntary unemployment of workers in Minnesota is a
subject of general concern that requires appropriate action by the legislature. The public
good deleted text beginwill bedeleted text end new text beginis new text endpromoted by providing workers who are unemployed through no fault
of their own a temporary partial wage replacement to assist the unemployed worker to
become reemployed. This program deleted text beginwill be known asdeleted text end new text beginis new text endthe "Minnesota unemployment
insurance program."

Sec. 4.

Minnesota Statutes 2006, section 268.03, subdivision 2, is amended to read:


Subd. 2.

Standard of proof.

All issues of fact under the Minnesota Unemployment
Insurance Law deleted text beginshall bedeleted text endnew text begin arenew text end determined by a preponderance of the evidence. Preponderance
of the evidence means evidence in substantiation of a fact that, when weighed against the
evidence opposing the fact, is more convincing and has a greater probability of truth.

Sec. 5.

Minnesota Statutes 2006, section 268.035, subdivision 9, is amended to read:


Subd. 9.

Construction/independent contractor.

A worker doing commercial
or residential building construction or improvement, in the public or private sector,
performing services in the course of the trade, business, profession, or occupation of the
employer, deleted text beginshall bedeleted text endnew text begin isnew text end considered an employee and not an "independent contractor" unless
the worker meets all the following conditions:

(1) maintains a separate business with the independent contractor's own office,
equipment, materials, and other facilities;

(2) holds or has applied for a federal employer identification number or has filed
business or self-employment income tax returns with the federal Internal Revenue Service
based on that work or service in the previous year;

(3) operates under contracts to perform specific services or work for specific amounts
of money under which the independent contractor controls the means of performing the
services or work;

(4) incurs the main expenses related to the service or work that the independent
contractor performs under contract;

(5) is responsible for the satisfactory completion of work or services that the
independent contractor contracts to perform and is liable for a failure to complete the
work or service;

(6) receives compensation for work or service performed under a contract on a
commission or per job or competitive bid basis and not on any other basis;

(7) may realize a profit or suffer a loss under contracts to perform work or service;

(8) has continuing or recurring business liabilities or obligations; and

(9) the success or failure of the independent contractor's business depends on the
relationship of business receipts to expenditures.

Sec. 6.

Minnesota Statutes 2006, section 268.035, subdivision 10, is amended to read:


Subd. 10.

Corporation.

"Corporation" includes associations, joint-stock
companies, and insurance companies. This definition deleted text beginshalldeleted text end new text beginis new text endnot deleted text beginbedeleted text end exclusive.

Sec. 7.

Minnesota Statutes 2006, section 268.035, subdivision 11, is amended to read:


Subd. 11.

Covered agricultural employment.

"Covered agricultural employment"
means agricultural employment where:

(1) The employment is performed for a person who:

(i) during any calendar quarter in either the current or the prior calendar year paid
wages of $20,000 or more to employees in agricultural employment; or

(ii) for some portion of a day in each of 20 different calendar weeks, whether or
not the weeks were consecutive, in either the current or prior calendar year employed
in agricultural employment four or more employees, regardless of whether they were
employed at the same time.

(2) Any employee who is a member of a crew furnished by a crew leader to be
employed in agricultural employment for any other person deleted text beginshall bedeleted text endnew text begin isnew text end treated as an
employee of the crew leader:

(i) if the crew leader holds a valid certificate of registration under United States
Code, title 29, section 1802, the Migrant and Seasonal Agricultural Worker Protection
Act; or substantially all of the members of the crew operate or maintain tractors,
mechanized harvesting or crop dusting equipment, or any other mechanized equipment,
that is provided by the crew leader; and

(ii) if the employee is not an employee of another person.

(3) Any employee who is furnished by a crew leader to be employed in agricultural
employment for any other person and who is not treated as an employee of the crew
leader under clause (2):

(i) the other person and not the crew leader deleted text beginshall bedeleted text endnew text begin isnew text end treated as the employer of
the employee; and

(ii) the other person deleted text beginshall bedeleted text endnew text begin isnew text end treated as having paid wages to the employee in an
amount equal to the amount of wages paid to the employee by the crew leader (either on
the crew leader's behalf or on behalf of the other person) for the agricultural employment
performed for the other person.

(4) The term "crew leader" means an individual who:

(i) furnishes employees to be employed in agricultural employment for any other
person;

(ii) pays (either on the crew leader's own behalf or on behalf of the other person)
the employees furnished by the crew leader for the agricultural employment performed
by them; and

(iii) has not entered into a written agreement with the other person under which the
furnished employee is designated as an employee of the other person.

(5) Employment of an officer or shareholder of a family farm corporation deleted text beginshall be deleted text endnew text beginis
new text endexcluded from covered agricultural employment unless the corporation is an employer
under United States Code, title 26, section 3306(a)(2) of the Federal Unemployment
Tax Act.

(6) Employment of an individual 16 years of age or under deleted text beginshall bedeleted text endnew text begin isnew text end excluded from
covered agricultural employment unless the employer is an employer under United States
Code, title 26, section 3306(a)(2) of the Federal Unemployment Tax Act.

Sec. 8.

Minnesota Statutes 2006, section 268.035, subdivision 13, is amended to read:


Subd. 13.

Employee.

"Employee" means:

(1) every individual who is performing or has performed services for an employer
in employment; or

(2) each individual employed to perform or assist in performing the work of any
agent or employee of the employer deleted text beginshall bedeleted text endnew text begin isnew text end considered to be an employee of that
employer whether the individual was hired or paid directly by that employer or by the agent
or employee, provided the employer had actual or constructive knowledge of the work.

Sec. 9.

Minnesota Statutes 2006, 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 for an instrumentality wholly owned by a foreign government,
if the employment is of a character similar to that performed in foreign countries by
employees of the United States government or an instrumentality thereof and the United
States Secretary of State has certified that the foreign government grants an equivalent
exemption to similar employment performed in the foreign country by employees of the
United States government and instrumentalities thereof;

(5) employment covered under United States Code, title 45, section 351, the
Railroad Unemployment Insurance Act;

(6) employment covered by a reciprocal arrangement between the commissioner
and another state or the federal government deleted text beginwhichdeleted text endnew text begin thatnew text end provides that all employment
performed by an individual for an employer during the period covered by the reciprocal
arrangement is considered performed entirely within another state;

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

(8) employment 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, for Minnesota or a political subdivision or an organization described 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);

(9) employment 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 for Minnesota or a political
subdivision or an organization described 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)
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;

(10) employment of an individual receiving work relief or work training as part of
an unemployment work relief or work training program assisted or financed in whole or
in part by any federal agency or an agency of a state or political subdivision thereof.
This clause applies only to employment for Minnesota or a political subdivision or an
organization described 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). This clause
deleted text begin shalldeleted text endnew text begin doesnew text end not apply to programs that require unemployment benefit coverage for the
participants;

(11) employment for Minnesota or a political subdivision as an elected official, a
member of a legislative body, or a member of the judiciary;

(12) employment as a member of the Minnesota National Guard or Air National
Guard;

(13) employment for Minnesota, a political subdivision, or instrumentality thereof,
as an employee serving only on a temporary basis in case of fire, flood, tornado, or
similar emergency;

(14) employment as an election official or election worker for Minnesota or a
political subdivision, but only if the compensation for that employment was less than
$1,000 in a calendar year;

(15) employment for Minnesota that is a major policy making or advisory position
in the unclassified service, including those positions established deleted text beginpursuant todeleted text endnew text begin undernew text end section
43A.08, subdivision 1a;

(16) employment for a political subdivision of Minnesota that is a nontenured major
policy making or advisory position;

(17) domestic employment in a private household, local college club, or local
chapter of a college fraternity or sorority performed for a person, only if the wages paid in
any calendar quarter in either the current or deleted text beginprecedingdeleted text end new text beginpriornew text end 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;

(18) 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;

(19) employment of an inmate of a custodial or penal institution;

(20) employment for a school, college, or university by a student who is enrolled
and is regularly attending classes at the school, college, or university;

(21) 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 deleted text beginshalldeleted text endnew text begin
does
new text end not apply to employment in a program established for or on behalf of an employer
or group of employers;

(22) 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
deleted text begin pursuant todeleted text endnew text begin undernew text end Laws 1990, chapter 570, article 6, section 3;

(23) 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;

(24) 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;

(25) employment as an intern for a hospital by an individual who has completed a
four-year course in an accredited medical school;

(26) 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"
deleted text begin shall includedeleted text endnew text begin includesnew text end an annuity and an optional annuity;

(27) employment as an officer of a township mutual insurance company or farmer's
mutual insurance company operating deleted text beginpursuant todeleted text endnew text begin undernew text end chapter 67A;

(28) employment of a corporate officer, if the officer owns 25 percent or more of the
employer corporation, and employment of a member of a limited liability company, if the
member owns 25 percent or more of the employer limited liability company;

(29) employment as a real estate salesperson, by other than a corporate officer, if all
the wages from the employment is solely by way of commission;

(30) employment as a direct seller as defined in United States Code, title 26, section
3508;

(31) 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;

(32) casual employment performed for an individual, other than domestic
employment under clause (17), that does not promote or advance that employer's trade or
business;

(33) employment in "agricultural employment" unless considered "covered
agricultural employment" under subdivision 11; or

(34) if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period deleted text beginshall bedeleted text endnew text begin isnew text end considered 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 deleted text beginshall bedeleted text endnew text begin isnew text end
considered 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. 10.

Minnesota Statutes 2006, section 268.035, subdivision 21a, is amended to
read:


Subd. 21a.

Reemployment assistance training.

(a) An applicant is in
"reemployment assistance training" when:

(1) reasonable and suitable employment for the applicant does not exist in the labor
market area and it is necessary that the applicant receive training in order to obtain
suitable employment;

(2) the curriculum, facilities, staff, and other essentials are adequate to achieve the
training objective;

(3) the training is vocational in nature or short term academic training vocationally
directed to an occupation or skill for which there are reasonable employment opportunities
available to the applicant;

(4) the training course is considered full time by the training provider; and

(5) the applicant is making satisfactory progress in the training.

(b) Full-time training provided through the dislocated worker program, the Trade
Act of 1974, as amended, or the North American Free Trade Agreement deleted text beginshall bedeleted text endnew text begin isnew text end
considered "reemployment assistance training," if that training course is in accordance
with the requirements of that program.

(c) An applicant deleted text beginwill bedeleted text endnew text begin isnew text end considered in reemployment assistance training only if
the training course has actually started or is scheduled to start within 30 calendar days.

Sec. 11.

Minnesota Statutes 2006, section 268.035, subdivision 23a, is amended to read:


Subd. 23a.

Suitable employment.

(a) Suitable employment means employment in
the applicant's labor market area that is reasonably related to the applicant's qualifications.
In determining whether any employment is suitable for an applicant, the degree of risk
involved to the health and safety, physical fitness, prior training, experience, length
of unemployment, prospects for securing employment in the applicant's customary
occupation, and the distance of the employment from the applicant's residence deleted text beginshall bedeleted text endnew text begin
is
new text end considered.

(b) In determining what is suitable employment, primary consideration deleted text beginshall bedeleted text endnew text begin isnew text end
given to the temporary or permanent nature of the applicant's separation from employment
and whether the applicant has favorable prospects of finding employment in the applicant's
usual or customary occupation at the applicant's past wage level within a reasonable
period of time.

If prospects are unfavorable, employment at lower skill or wage levels is suitable
if the applicant is reasonably suited for the employment considering the applicant's
education, training, work experience, and current physical and mental ability.

The total compensation must be considered, including the wage rate, hours of
employment, method of payment, overtime practices, bonuses, incentive payments, and
fringe benefits.

(c) When potential employment is at a rate of pay lower than the applicant's former
rate, consideration must be given to the length of the applicant's unemployment and the
proportion of difference in the rates. Employment that may not be suitable because of
lower wages during the early weeks of the applicant's unemployment may become suitable
as the duration of unemployment lengthens.

(d) For an applicant seasonally unemployed, suitable employment includes
temporary work in a lower skilled occupation that pays average gross weekly wages equal
to or more than 150 percent of the applicant's weekly unemployment benefit amount.

(e) If a majority of the applicant's wage credits were earned from part-time
employment, part-time employment in a position with comparable skills and comparable
hours that pays average gross weekly wages equal to or more than 150 percent of
the applicant's weekly unemployment benefit amount deleted text beginshall bedeleted text endnew text begin isnew text end considered suitable
employment.

(f) To determine suitability of employment in terms of shifts, the arrangement of
hours in addition to the total number of hours is to be considered. Employment on a
second, third, rotating, or split shift is suitable employment if it is customary in the
occupation in the labor market area.

(g) Employment deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered suitable if:

(1) the position offered is vacant because of a labor dispute;

(2) the wages, hours, or other conditions of employment are substantially less
favorable than those prevailing for similar employment in the labor market area; or

(3) as a condition of becoming employed, the applicant would be required to join a
company union or to resign from or refrain from joining any bona fide labor organization.

Sec. 12.

Minnesota Statutes 2006, section 268.035, subdivision 26, is amended to read:


Subd. 26.

Unemployed.

An applicant deleted text beginshall bedeleted text endnew text begin isnew text end considered "unemployed" (1) in
any week that the applicant performs less than 32 hours of service in employment, covered
employment, noncovered employment, self-employment, or volunteer work; and (2) any
earnings with respect to that week are less than the applicant's weekly unemployment
benefit amount.

Sec. 13.

Minnesota Statutes 2006, section 268.035, subdivision 30, is amended to read:


Subd. 30.

Wages paid.

(a) "Wages paid" means the amount of wages that have been
actually paid or that have been credited to or set apart so that payment and disposition
is under the control of the employee. Wage payments delayed beyond the regularly
scheduled pay date are considered "wages paid" on the missed pay date. Back pay deleted text beginshall
be
deleted text endnew text begin isnew text end considered "wages paid" on the date of actual payment. Any wages earned but
not paid with no scheduled date of payment deleted text beginshall bedeleted text endnew text begin isnew text end considered "wages paid" on the
last day of employment.

(b) Wages paid deleted text beginshalldeleted text endnew text begin doesnew text end not include wages earned but not paid except as provided
for in this subdivision.

Sec. 14.

Minnesota Statutes 2006, section 268.042, subdivision 3, is amended to read:


Subd. 3.

Election to have noncovered employment considered covered
employment.

(a) Any employer that has employment performed for it that is noncovered
employment under section 268.035, subdivision 20, may file with the commissioner, by
electronic transmission in a format prescribed by the commissioner, an election that all
deleted text begin suchdeleted text end employment, in one or more distinct establishments or places of business, deleted text beginshall bedeleted text endnew text begin isnew text end
considered covered employment for not less than two calendar years. The commissioner
deleted text begin shall havedeleted text endnew text begin hasnew text end discretion on the approval of any election. Upon the approval of the
commissioner, sent by mail or electronic transmission, the employment deleted text beginshall constitutedeleted text endnew text begin
constitutes
new text end covered employment beginning the calendar quarter after the date of approval
or beginning a later calendar quarter if requested by the employer. The employment
deleted text begin shall ceasedeleted text endnew text begin ceasesnew text end to be considered covered employment as of the first day of January of
any calendar year only if at least 30 calendar days deleted text beginprior todeleted text endnew text begin beforenew text end the first day of January
the employer has filed with the commissioner, by electronic transmission in a format
prescribed by the commissioner, a notice to that effect.

(b) The commissioner must terminate any election agreement under this subdivision
upon 30 calendar days' notice sent by mail or electronic transmission, if the employer is
delinquent on any taxes due or reimbursements due the trust fund.

Sec. 15.

Minnesota Statutes 2006, section 268.042, subdivision 4, is amended to read:


Subd. 4.

Authorization.

The commissioner is authorized to enter into reciprocal
arrangements with other states and the federal government, or both, whereby employment
by an employee or employees for a single employer that is customarily performed in more
than one state deleted text beginshall bedeleted text endnew text begin isnew text end considered performed entirely within any one of the states:

(1) where any part of the employee's employment is performed, or

(2) where the employee has a residence, or

(3) where the employer maintains a place of business; provided, there is in effect,
as to the employment, an election, approved by the state, deleted text beginpursuant todeleted text endnew text begin undernew text end which all
the employment by the employee or employees for the employer is considered to be
performed entirely within that state.

Sec. 16.

Minnesota Statutes 2006, section 268.0435, is amended to read:


268.0435 SINGLE MEMBER LIMITED LIABILITY COMPANIES.

If the only member of a limited liability company is a corporation, and the limited
liability company is disregarded for purposes of filing federal corporate income tax, all
the workers performing services for the limited liability company must be reported on
the corporation's wage detail report under section 268.044. A corporation that violates
this section deleted text beginshall bedeleted text endnew text begin isnew text end subject to the penalties under section 268.184, subdivision 1a.
Penalties deleted text beginshall bedeleted text endnew text begin arenew text end credited to the administration account to be used to ensure integrity
in the unemployment insurance program.

Sec. 17.

Minnesota Statutes 2006, section 268.044, subdivision 1a, is amended to read:


Subd. 1a.

Electronic transmission of report required.

Each employer must submit
the quarterly wage detail report by electronic transmission in a format prescribed by the
commissioner. The commissioner deleted text beginshall havedeleted text endnew text begin hasnew text end the discretion to accept wage detail
reports that are submitted by any other means or the commissioner may return the report
submitted by other than electronic transmission to the employer, and reports returned deleted text beginshall
be
deleted text endnew text begin arenew text end considered as not submitted and the late fees under subdivision 2 may be imposed.

Sec. 18.

Minnesota Statutes 2006, section 268.044, subdivision 2, is amended to read:


Subd. 2.

Failure to timely file report; late fees.

(a) Any employer that fails to
submit the quarterly wage detail report when due deleted text beginshalldeleted text endnew text begin mustnew text end pay a late fee of $10 per
employee, computed based upon the highest of:

(1) the number of employees reported on the last wage detail report submitted;

(2) the number of employees reported in the corresponding quarter of the prior
calendar year; or

(3) if no wage detail report has ever been submitted, the number of employees
listed at the time of employer registration.

The late fee deleted text beginshall bedeleted text endnew text begin isnew text end waived if the wage detail report is received within 30
calendar days after a demand for the report is sent to the employer by mail or electronic
transmission. A late fee assessed an employer may not be waived more than twice each 12
months. The amount of the late fee assessed deleted text beginshalldeleted text endnew text begin maynew text end not be less than $250.

(b) If the wage detail report is not received in a manner and format prescribed by
the commissioner within 30 calendar days after demand is sent under paragraph (a),
the late fee assessed under paragraph (a) deleted text beginshall doubledeleted text endnew text begin doublesnew text end and a renewed demand
notice and notice of the increased late fee deleted text beginshalldeleted text endnew text begin willnew text end be sent to the employer by mail or
electronic transmission.

(c) Late fees due under this subdivision may be compromised under section 268.067
where good cause for late submission is found by the commissioner.

Sec. 19.

Minnesota Statutes 2006, section 268.044, subdivision 4, is amended to read:


Subd. 4.

Fees.

The fees provided for in subdivisions 2 and 3 are in addition to
interest and other penalties imposed by this chapter and deleted text beginshall bedeleted text endnew text begin arenew text end collected in the same
manner as delinquent taxes and deleted text beginshall bedeleted text end credited to the contingent account.

Sec. 20.

Minnesota Statutes 2006, section 268.045, subdivision 1, is amended to read:


Subdivision 1.

Account for each employer.

The commissioner shall maintain
(1) a tax account for each taxpaying employer and (2) a reimbursable account for each
nonprofit or government employer that has elected under section 268.052 or 268.053 to
be liable for reimbursements, except as provided in section 268.046. The commissioner
shall assess the tax account for all the taxes due under section 268.051 and credit the tax
account with all taxes paid. The commissioner shall charge the reimbursable account for
any unemployment benefits determined chargeable under section 268.047 and deleted text beginshalldeleted text end credit
the reimbursable account with the payments made.

Sec. 21.

Minnesota Statutes 2006, section 268.046, is amended to read:


268.046 TAX AND REIMBURSABLE ACCOUNTS ASSIGNED TO
EMPLOYEE LEASING COMPANIES, PROFESSIONAL EMPLOYER
ORGANIZATIONS, OR SIMILAR PERSON.

Subdivision 1.

Tax accounts assigned.

(a) Any person that contracts with a
taxpaying employer to have that person obtain the taxpaying employer's workforce and
provide workers to the taxpaying employer for a fee deleted text beginshalldeleted text endnew text begin isnew text end, as of the effective date
of the contract, deleted text beginbedeleted text end assigned for the duration of the contract the taxpaying employer's
account under section 268.045. That tax account must be maintained by the person
separate and distinct from every other tax account held by the person and identified in a
manner prescribed by the commissioner. The tax account deleted text beginshalldeleted text endnew text begin isnew text end, for the duration of the
contract, deleted text beginbedeleted text end considered that person's account for all purposes of this chapter. The workers
obtained from the taxpaying employer and any other workers provided by that person to
the taxpaying employer must, under section 268.044, be reported on the wage detail
report under that tax account, and that person deleted text beginshalldeleted text endnew text begin mustnew text end pay any taxes due at the tax rate
computed for that account under section 268.051, subdivision 2.

(b) Any workers of the taxpaying employer who are not covered by the contract
under paragraph (a) must be reported by the taxpaying employer as a separate unit on the
wage detail report under the tax account assigned under paragraph (a). Taxes and any
other amounts due on the wages reported by the taxpaying employer under this paragraph
may be paid directly by the taxpaying employer.

(c) If the taxpaying employer that contracts with a person under paragraph (a) does
not have a tax account at the time of the execution of the contract, an account must be
registered for the taxpaying employer under section 268.042 and the new employer tax
rate under section 268.051, subdivision 5, must be assigned. The tax account deleted text beginshalldeleted text endnew text begin isnew text end then
deleted text begin bedeleted text end assigned to the person as provided for in paragraph (a).

(d) A person that contracts with a taxpaying employer under paragraph (a)
must, within 30 calendar days of the execution or termination of a contract, notify the
commissioner by electronic transmission, in a format prescribed by the commissioner,
of that execution or termination. The taxpaying employer's name, the account number
assigned, and any other information required by the commissioner must be provided
by that person.

(e) Any contract subject to paragraph (a) must specifically inform the taxpaying
employer of the assignment of the tax account under this section and the taxpaying
employer's obligation under paragraph (b). If there is a termination of the contract, the tax
account deleted text beginshalldeleted text endnew text begin isnew text end, as of the date of termination, immediately deleted text beginbedeleted text end assigned to the taxpaying
employer.

Subd. 2.

Nonprofit and government reimbursable accounts assigned.

(a) Any
person that contracts with a nonprofit or government employer that is a reimbursing
employer to have that person obtain the nonprofit or government employer's workforce
and provide workers to the nonprofit or government employer for a fee, deleted text beginshalldeleted text endnew text begin isnew text end, as of the
effective date of the contract, deleted text beginbedeleted text end assigned for the duration of the contract the nonprofit or
government employer's account under section 268.045. That reimbursable account must
be maintained by the person separate and distinct from every other account held by the
person and identified in a manner prescribed by the commissioner. That reimbursable
account deleted text beginshalldeleted text endnew text begin isnew text end, for the duration of the contract, deleted text beginbedeleted text end considered that person's account for
all purposes of this chapter. The workers obtained from the nonprofit or government
employer and any other workers provided by that person to the nonprofit or government
employer must, under section 268.044, be reported on the wage detail report under that
reimbursable account, and that person deleted text beginshalldeleted text endnew text begin mustnew text end pay any reimbursements due.

(b) Any workers of the nonprofit or government employer who are not covered
by the contract under paragraph (a) must be reported by the nonprofit or government
employer as a separate unit on the wage detail report under the reimbursable account
assigned under paragraph (a). Reimbursements and any other amounts due on the wages
reported by the nonprofit or government employer under this paragraph may be paid
directly by the nonprofit or government employer.

(c) If the nonprofit or government employer that contracts with a person under
paragraph (a) does not have an account at the time of the execution of the contract, an
account must be registered for the nonprofit or government employer under section
268.042. The reimbursable account deleted text beginshalldeleted text endnew text begin isnew text end then deleted text beginbedeleted text end assigned to the person as provided
for in paragraph (a).

(d) A person that contracts with a nonprofit or government employer under
paragraph (a) must, within 30 calendar days of the execution or termination of a contract,
notify the commissioner of that execution or termination by electronic transmission, in a
format prescribed by the commissioner. The nonprofit or government employer's name,
the account number assigned, and any other information required by the commissioner
must be provided by that person.

(e) Any contract subject to paragraph (a) must specifically inform the nonprofit or
government employer of the assignment of the reimbursable account under this section
and the nonprofit or government employer's obligation under paragraph (b). If there is a
termination of the contract, the reimbursable account deleted text beginshalldeleted text endnew text begin isnew text end, as of the date of termination,
immediately deleted text beginbedeleted text end assigned to the nonprofit or government employer.

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), deleted text beginshall bedeleted text endnew text begin isnew text end
subject to the penalties under section 268.184, subdivision 1a. Penalties deleted text beginshall bedeleted text endnew text begin arenew text end
credited to the administration account to be used to ensure integrity in the unemployment
insurance program.

(b) Section 268.051, subdivision 4, does not apply to contracts under this section.
This section deleted text beginshalldeleted text endnew text begin doesnew text end not limit or prevent the application of section 268.051, subdivision
4
, to any other transactions or acquisitions involving the taxpaying employer. This section
deleted text begin shalldeleted text endnew text begin doesnew text end 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 deleted text beginshalldeleted text endnew text begin isnew text end
not deleted text beginbedeleted text end considered a separation from employment of any worker covered by the contract.
Nothing under this subdivision deleted text beginshall causedeleted text endnew text begin causesnew text end the person to be liable for any amounts
past due under this chapter from the taxpaying employer or the nonprofit or government
employer.

(d) This section applies to, but is not limited to, persons registered under section
79.255, but does not apply to persons that obtain an exemption from registration under
section 79.255, subdivision 9.

Sec. 22.

Minnesota Statutes 2006, section 268.047, subdivision 1, is amended to read:


Subdivision 1.

General rule.

Unemployment benefits paid to an applicant,
including extended, additional, and shared work benefits, deleted text beginshalldeleted text end new text beginwill new text endbe used in computing
the future tax rate of a taxpaying base period employer or charged to the reimbursable
account of a base period nonprofit or government employer that has elected to be liable for
reimbursements except as provided in subdivisions 2 and 3. The amount of unemployment
benefits used in computing the future tax rate of taxpaying employers or charged to the
reimbursable account of a nonprofit or government employer that has elected to be liable
for reimbursements deleted text beginshall bedeleted text end new text beginis new text endthe same percentage of the total amount of unemployment
benefits paid as the percentage of wage credits from the employer is of the total amount of
wage credits from all the applicant's base period employers.

In making computations under this subdivision, the amount of wage credits, if not a
whole dollar, deleted text beginshalldeleted text end new text beginmust new text endbe computed to the nearest whole dollar.

Sec. 23.

Minnesota Statutes 2006, section 268.047, subdivision 3, is amended to read:


Subd. 3.

Exceptions for taxpaying employers.

Unemployment benefits paid deleted text beginshalldeleted text end
new text begin will new text endnot be used in computing the future tax rate of a taxpaying base period employer when:

(1) the applicant's wage credits from that employer are less than $500;

(2) the applicant quit the employment, unless it was determined under section
268.095, to have been because of a good reason caused by the employer or because the
employer notified the applicant of discharge within 30 calendar days. This exception
deleted text begin shall applydeleted text end new text beginapplies new text endonly to unemployment benefits paid for periods after the applicant's
quitting the employment; or

(3) the employer discharged the applicant from employment because of employment
misconduct as determined under section 268.095. This exception deleted text beginshall applydeleted text end new text beginapplies
new text endonly to unemployment benefits paid for periods after the applicant's discharge from
employment.

Sec. 24.

Minnesota Statutes 2006, section 268.051, subdivision 4a, is amended to read:


Subd. 4a.

Actions that avoid taxes.

(a) If the commissioner determines that any
action was done, in whole or in part, to avoid:

(1) an experience rating history;

(2) the transfer of an experience rating history; or

(3) the assignment of a tax rate for new employers under subdivision 5, paragraph
(a) or (b), the commissioner, to insure that the trust fund receives all the taxes that would
have been received had the action not occurred, may, effective the date of the action,
transfer all or part of an experience rating history and recompute the tax rate or assign the
appropriate new employer tax rate.

(b) This subdivision deleted text beginshall applydeleted text endnew text begin appliesnew text end to any action between persons regardless
of whether there is any commonality of ownership, management, or control between the
persons. The authority granted to the commissioner under this subdivision is in addition to
any other authority granted to the commissioner.

Sec. 25.

Minnesota Statutes 2006, section 268.051, subdivision 9, is amended to read:


Subd. 9.

Assessments, fees, and surcharges; treatment.

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

Sec. 26.

Minnesota Statutes 2006, section 268.052, subdivision 1, is amended to read:


Subdivision 1.

Payments.

In lieu of taxes payable on a quarterly basis, the state
of Minnesota or its political subdivisions deleted text beginshalldeleted text endnew text begin mustnew text end reimburse the trust fund the amount
of unemployment benefits charged to its reimbursable account under section 268.047.
Reimbursements in the amount of unemployment benefits charged to the reimbursable
account during a calendar quarter must be received by the department on or before the last
day of the month following the month that the notice of unemployment benefits paid is sent
deleted text begin pursuant todeleted text endnew text begin undernew text end section 268.047, subdivision 5. Past due reimbursements deleted text beginshall bedeleted text endnew text begin arenew text end
subject to the same interest charges and collection procedures that apply to past due taxes.

Sec. 27.

Minnesota Statutes 2006, section 268.052, subdivision 2, is amended to read:


Subd. 2.

Election by state or political subdivision to be a taxpaying employer.

(a) The state or political subdivision may elect to be a taxpaying employer for any calendar
year if a notice of election is filed within 30 calendar days following January 1 of that
calendar year. Upon election, the state or political subdivision deleted text beginshalldeleted text endnew text begin mustnew text end be assigned the
new employer tax rate under section 268.051, subdivision 5, for the calendar year of the
election and until it qualifies for an experience rating under section 268.051, subdivision 3.

(b) An election deleted text beginshall bedeleted text endnew text begin isnew text end for a minimum period of two calendar years following the
effective date of the election and continue unless a notice terminating the election is filed
not later than 30 calendar days before the beginning of the calendar year. The termination
deleted text begin shall bedeleted text endnew text begin isnew text end effective at the beginning of the next calendar year. Upon election, the
commissioner shall establish a reimbursable account for the state or political subdivision.
A termination of election deleted text beginshall bedeleted text endnew text begin isnew text end allowed only if the state or political subdivision has,
since the beginning of the experience rating period under section 268.051, subdivision
3
, paid taxes equal to or more than 125 percent of the unemployment benefits used
in computing the experience rating. In addition, any unemployment benefits paid after
the experience rating period deleted text beginshall bedeleted text endnew text begin arenew text end transferred to the new reimbursable account of
the state or political subdivision. If the amount of taxes paid since the beginning of the
experience rating period exceeds 125 percent of the amount of unemployment benefits
paid during the experience rating period, that amount in excess deleted text beginshall bedeleted text endnew text begin isnew text end applied against
any unemployment benefits paid after the experience rating period.

(c) The method of payments to the trust fund under subdivisions 3 and 4 deleted text beginshall applydeleted text endnew text begin
applies
new text end to all taxes paid by or due from the state or political subdivision that elects to be
taxpaying employers under this subdivision.

(d) A notice of election or a notice terminating election deleted text beginshalldeleted text endnew text begin mustnew text end be filed by
electronic transmission in a format prescribed by the commissioner.

Sec. 28.

Minnesota Statutes 2006, section 268.052, subdivision 3, is amended to read:


Subd. 3.

Method of payment by state.

To discharge its liability, the state and its
wholly owned instrumentalities deleted text beginshalldeleted text endnew text begin mustnew text end pay the trust fund as follows:

(1) Every self-sustaining department, institution and wholly owned instrumentality
deleted text begin shalldeleted text endnew text begin mustnew text end pay the trust fund in accordance with subdivision 1. For the purposes of this
clause a "self-sustaining department, institution or wholly owned instrumentality" is one
where the dedicated income and revenue substantially offsets its cost of operation.

(2) Every partially self-sustaining department, institution and wholly owned
instrumentality deleted text beginshalldeleted text endnew text begin mustnew text end pay the trust fund that same proportion of the amount that has
been charged to its employer account as the proportion of the total of its income and
revenue is to its annual cost of operation.

(3) Every department, institution or wholly owned instrumentality that is not
self-sustaining deleted text beginshalldeleted text endnew text begin mustnew text end pay the trust fund to the extent funds are available from
appropriated funds.

(4) The departments, institutions and wholly owned instrumentalities, including
the University of Minnesota, that have money available deleted text beginshalldeleted text endnew text begin mustnew text end pay the trust fund in
accordance with subdivision 1. If an applicant was paid during the base period from
a special account provided by law, the payment to the trust fund deleted text beginshalldeleted text endnew text begin mustnew text end be made
from the special account with the approval of the Department of Administration and the
amounts are deleted text beginherebydeleted text end appropriated.

(5) For those departments, institutions and wholly owned instrumentalities that
cannot pay the trust fund, the commissioner shall certify on November 1 of each calendar
year to the commissioner of finance the unpaid balances. Upon receipt of the certification,
the commissioner of finance shall include the unpaid balances in the biennial budget
submitted to the legislature.

Sec. 29.

Minnesota Statutes 2006, section 268.052, subdivision 4, is amended to read:


Subd. 4.

Method of payment by political subdivision.

A political subdivision or
instrumentality thereof is authorized and directed to pay its liabilities by money collected
from taxes or other revenues. Every political subdivision authorized to levy taxes except
school districts may include in its tax levy the amount necessary to pay its liabilities.
School districts may levy according to section 126C.43, subdivision 2. If the taxes
authorized to be levied cause the total amount of taxes levied to exceed any limitation
upon the power of a political subdivision to levy taxes, the political subdivision may
levy taxes in excess of the limitations in the amounts necessary to meet its liability. The
expenditures authorized deleted text beginshalldeleted text endnew text begin mustnew text end not be included in computing the cost of government
as defined in any home rule charter. The governing body of a municipality, for the purpose
of meeting its liabilities, in the event of a deficit, may issue its obligations payable in not
more than two years, in an amount that may cause its indebtedness to exceed any statutory
or charter limitations, without an election, and may levy taxes in the manner provided
in section 475.61.

Sec. 30.

Minnesota Statutes 2006, section 268.052, subdivision 5, is amended to read:


Subd. 5.

Considered an election.

If the state of Minnesota or its political
subdivisions choose not to be a taxpaying employer under subdivision 2, the state or its
political subdivision deleted text beginshall bedeleted text endnew text begin arenew text end considered, for purposes of the Minnesota unemployment
insurance program, to have elected to be liable for reimbursements under subdivision 1.

Sec. 31.

Minnesota Statutes 2006, section 268.0525, is amended to read:


268.0525 INDIAN TRIBES.

(a) An Indian tribe, as defined under United States Code, title 25, section 450b(e)
of the Indian Self-Determination and Education Assistance Act, and any subdivision,
subsidiary, or business enterprise owned by the Indian tribe, deleted text beginshalldeleted text endnew text begin mustnew text end be treated the same
as the state of Minnesota, or a political subdivision of the state, for all purposes of the
Minnesota Unemployment Insurance Law.

(b) The Indian tribe may make separate elections under section 268.052, subdivision
2
, for itself and each subdivision, subsidiary, or business enterprise wholly owned by
the Indian tribe.

(c) If an Indian tribe, subdivision, subsidiary, or business enterprise wholly owned
by the tribe, which has elected to be liable for reimbursements, fails to make the required
payments within 90 new text begincalendar new text enddays of the notice of delinquency, the commissioner shall
terminate the election to make reimbursements as of the beginning of the next calendar
year, unless all past due reimbursements, and any interest and penalties, have been paid
before the beginning of the next calendar year.

An Indian tribe, subdivision, subsidiary, or business enterprise wholly owned by the
tribe that has its election terminated under this paragraph deleted text beginshalldeleted text endnew text begin mustnew text end become a taxpaying
employer and assigned the new employer tax rate under section 268.051, subdivision 5,
until the tribe, subdivision, subsidiary, or business enterprise wholly owned by the Indian
tribe qualifies for an experience rating under section 268.051, subdivision 3.

Sec. 32.

Minnesota Statutes 2006, section 268.053, subdivision 1, is amended to read:


Subdivision 1.

Election.

(a) Any nonprofit organization that has employees in
covered employment deleted text beginshalldeleted text endnew text begin mustnew text end pay taxes on a quarterly basis deleted text beginpursuant todeleted text endnew text begin in accordance
with
new text end section 268.051 unless it elects to make reimbursements to the trust fund the amount
of unemployment benefits charged to its reimbursable account under section 268.047.

The organization may elect to make reimbursements for a period of not less than
two calendar years beginning with the date that the organization was determined to be an
employer with covered employment by filing a notice of election not later than 30 calendar
days after the date of the determination.

(b) Any nonprofit organization that makes an election will continue to be liable for
reimbursements until it files a notice terminating its election not later than 30 calendar
days before the beginning of the calendar year the termination is to be effective.

(c) A nonprofit organization that has been making reimbursements that files a notice
of termination of election deleted text beginshalldeleted text endnew text begin mustnew text end be assigned the new employer tax rate under section
268.051, subdivision 5, for the calendar year of the termination of election and until it
qualifies for an experience rating under section 268.051, subdivision 3.

(d) Any nonprofit organization that has been paying taxes may elect to make
reimbursements by filing no less than 30 calendar days before January 1 of any calendar
year a notice of election. Upon election, the commissioner shall establish a reimbursable
account for the nonprofit organization. An election deleted text beginshall bedeleted text endnew text begin isnew text end allowed only if the nonprofit
organization has, since the beginning of the experience rating period under section
268.051, subdivision 3, paid taxes equal to or more than 125 percent of the unemployment
benefits used in computing the experience rating. In addition, any unemployment benefits
paid after the experience rating period deleted text beginshall bedeleted text endnew text begin arenew text end transferred to the new reimbursable
account of the nonprofit organization. If the amount of taxes paid since the beginning of
the experience rating period exceeds 125 percent of the amount of unemployment benefits
paid during the experience rating period, that amount in excess deleted text beginshall bedeleted text endnew text begin isnew text end applied against
any unemployment benefits paid after the experience rating period. The election deleted text beginshalldeleted text endnew text begin isnew text end
not deleted text beginbedeleted text end terminable by the organization for that and the next calendar year.

(e) The commissioner may for good cause extend the period that a notice of election,
or a notice of termination, must be filed and may permit an election to be retroactive.

(f) A notice of election or notice terminating election deleted text beginshalldeleted text endnew text begin mustnew text end be filed by electronic
transmission in a format prescribed by the commissioner.

Sec. 33.

Minnesota Statutes 2006, section 268.053, subdivision 3, is amended to read:


Subd. 3.

Payments.

(a) Reimbursements, in the amount of unemployment benefits
charged to the reimbursable account, during a calendar quarter, must be received by the
department on or before the last day of the month following the month that the notice of
unemployment benefits paid is sent deleted text beginpursuant todeleted text endnew text begin undernew text end section 268.047, subdivision 5.

(b) Past due reimbursements deleted text beginshall bedeleted text endnew text begin arenew text end subject to the same interest charges and
collection procedures that apply to past due taxes.

(c) If any nonprofit organization is delinquent in making reimbursements, the
commissioner may terminate the organization's election to make reimbursements as of
the beginning of the next calendar year, and the termination deleted text beginshall bedeleted text endnew text begin isnew text end effective for that
and the following calendar year. A nonprofit organization that has its election terminated
under this paragraph deleted text beginshalldeleted text endnew text begin mustnew text end be assigned the new employer tax rate under section
268.051, subdivision 5, until the organization qualifies for an experience rating under
section 268.051, subdivision 3.

Sec. 34.

Minnesota Statutes 2006, section 268.057, subdivision 1, is amended to read:


Subdivision 1.

Amount computed presumed correct.

Any amount due from
an employer, as computed by the commissioner, deleted text beginshall bedeleted text endnew text begin isnew text end presumed to be correctly
determined and assessed, and the burden deleted text beginshall bedeleted text endnew text begin isnew text end upon the employer to show its
incorrectness. A statement by the commissioner of the amount due deleted text beginshall bedeleted text endnew text begin isnew text end admissible
in evidence in any court or administrative proceeding and deleted text beginshall bedeleted text endnew text begin isnew text end prima facie evidence
of the facts in the statement.

Sec. 35.

Minnesota Statutes 2006, section 268.057, subdivision 2, is amended to read:


Subd. 2.

Priority of payments.

(a) Any payment received from a taxpaying
employer deleted text beginshalldeleted text endnew text begin mustnew text end be applied in the following order:

(1) unemployment insurance taxes; then

(2) special assessment for interest on any federal loan; then

(3) workforce development fee; then

(4) interest on past due taxes; then

(5) penalties, late fees, administrative service fees, and costs.

(b) Paragraph (a) deleted text beginshall bedeleted text endnew text begin isnew text end the priority used for all payments received from a
taxpaying employer, regardless of how the employer may designate the payment to be
applied, except when:

(1) there is an outstanding lien and the employer designates that the payment made
should be applied to satisfy the lien;

(2) the payment is for back pay withheld from an applicant deleted text beginpursuant todeleted text endnew text begin undernew text end section
268.085, subdivision 6, paragraph (b);

(3) the payment is specifically designated by the employer to be applied to an
outstanding overpayment of unemployment benefits of an applicant;

(4) a court or administrative order directs that the payment be applied to a specific
obligation;

(5) a preexisting payment plan provides for the application of payment; or

(6) the commissioner, under the compromise authority of section 268.067, agrees to
apply the payment to a different priority.

Sec. 36.

Minnesota Statutes 2006, section 268.057, subdivision 3, is amended to read:


Subd. 3.

Estimating the tax due.

Only if an employer fails to make all necessary
records available for an audit deleted text beginpursuant todeleted text endnew text begin undernew text end section 268.186, paragraph (b), and the
commissioner has reason to believe the employer has not reported all the required wages
on the quarterly wage detail reports under section 268.044, may the commissioner then
estimate the amount of tax due and assess the employer the estimated amount due.

Sec. 37.

Minnesota Statutes 2006, section 268.057, subdivision 4, is amended to read:


Subd. 4.

Costs.

Any person that fails to pay any amount when due under this
chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral
to any public or private collection agency, or litigation costs, including attorney fees,
incurred in the collection of the amounts due.

If any tendered payment of any amount duedeleted text begin,deleted text end is not honored when presented to
a financial institution for payment, new text beginany costs assessed the department by the financial
institution and
new text enda fee of $25 deleted text beginshalldeleted text endnew text begin mustnew text end be assessednew text begin to the personnew text end.

Costs and fees collected under this subdivision deleted text beginshall bedeleted text endnew text begin arenew text end credited to the
administration account to be used by the commissioner to ensure integrity in the
administration of the unemployment insurance program.

Sec. 38.

Minnesota Statutes 2006, section 268.057, subdivision 5, is amended to read:


Subd. 5.

Interest on amounts past due.

If any amounts due from an employer
under this chapter or section 116L.20, except late fees under section 268.044, are not
received on the date due the unpaid balance deleted text beginshall beardeleted text endnew text begin bearsnew text end interest at the rate of one and
one-half percent per month or any part thereof. Interest assessed, if not a whole dollar
amount, deleted text beginshall bedeleted text endnew text begin isnew text end rounded down to the next lower whole dollar. Interest collected deleted text beginshall bedeleted text endnew text begin
is
new text end credited to the contingent account. Interest may be compromised under section 268.067.

Sec. 39.

Minnesota Statutes 2006, section 268.057, subdivision 6, is amended to read:


Subd. 6.

Interest on judgments.

Regardless of section 549.09, if judgment is
entered upon any past due amounts from an employer under this chapter or section
116L.20, the unpaid judgment deleted text beginshall beardeleted text endnew text begin bearsnew text end interest at the rate specified in subdivision
5 until the date of payment.

Sec. 40.

Minnesota Statutes 2006, section 268.057, subdivision 10, is amended to read:


Subd. 10.

Priorities under legal dissolutions or distributions.

In the event of any
distribution of an employer's assets deleted text beginpursuantdeleted text endnew text begin accordingnew text end to an order of any court, including
any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar
proceeding, taxes then or thereafter due deleted text beginshalldeleted text endnew text begin mustnew text end be paid in full deleted text beginprior todeleted text endnew text begin beforenew text end all other
claims except claims for wages of not more than $1,000 per former employee, earned
within six months of the commencement of the proceedings. In the event of an employer's
adjudication in bankruptcy under federal law, taxes then or thereafter due deleted text beginshall bedeleted text endnew text begin arenew text end
entitled to the priority provided in that law for taxes due any state.

Sec. 41.

Minnesota Statutes 2006, section 268.058, is amended to read:


268.058 LIEN, LEVY, SETOFF, AND CIVIL ACTION.

Subdivision 1.

Lien.

(a) Any amount due under this chapter or section 116L.20,
from an applicant or an employer, deleted text beginshall becomedeleted text endnew text begin becomesnew text end a lien upon all the property,
within this state, both real and personal, of the person liable, from the date of assessment.
The term "date of assessment" means the date the obligation was due.

(b) The lien is not enforceable against any purchaser, mortgagee, pledgee, holder of
a Uniform Commercial Code security interest, mechanic's lien, or judgment lien creditor,
until a notice of lien has been filed with the county recorder of the county where the
property is situated, or in the case of personal property belonging to a nonresident person
in the Office of the Secretary of State. When the notice of lien is filed with the county
recorder, the fee for filing and indexing deleted text beginshall bedeleted text endnew text begin isnew text end as provided in sections 272.483 and
272.484.

(c) Notices of liens, lien renewals, and lien releases, in a form prescribed by the
commissioner, may be filed with the county recorder or the secretary of state by mail,
personal delivery, or by electronic transmission into the computerized filing system of the
secretary of state. The secretary of state shall, on any notice filed with that office, transmit
the notice electronically to the appropriate county recorder. The filing officer, whether the
county recorder or the secretary of state, shall endorse and index a printout of the notice as
if the notice had been mailed or delivered.

(d) County recorders and the secretary of state shall enter information on lien
notices, renewals, and releases into the central database of the secretary of state. For
notices filed electronically with the county recorders, the date and time of receipt of the
notice and county recorder's file number, and for notices filed electronically with the
secretary of state, the secretary of state's recording information, must be entered into the
central database before the close of the working day following the day of the original
data entry by the commissioner.

(e) The lien imposed on personal property, even though properly filed, is not
enforceable against a purchaser of tangible personal property purchased at retail or
personal property listed as exempt in sections 550.37, 550.38, and 550.39.

(f) A notice of lien filed has priority over any security interest arising under chapter
336, article 9, that is perfected prior in time to the lien imposed by this subdivision, but
only if:

(1) the perfected security interest secures property not in existence at the time the
notice of lien is filed; and

(2) the property comes into existence after the 45th calendar day following the day
the notice of lien is filed, or after the secured party has actual notice or knowledge of the
lien filing, whichever is earlier.

(g) The lien deleted text beginshall bedeleted text endnew text begin isnew text end enforceable from the time the lien arises and for ten years
from the date of filing the notice of lien. A notice of lien may be renewed before expiration
for an additional ten years.

(h) The lien deleted text beginshall bedeleted text endnew text begin isnew text end enforceable by levy under subdivision 2 or by judgment lien
foreclosure under chapter 550.

(i) The lien may be imposed upon property defined as homestead property in chapter
510 but may be enforced only upon the sale, transfer, or conveyance of the homestead
property.

(j) The commissioner may sell and assign to a third party the commissioner's right of
redemption in specific real property for liens filed under this subdivision. The assignee
deleted text begin shall bedeleted text endnew text begin isnew text end limited to the same rights of redemption as the commissioner, except that in
a bankruptcy proceeding, the assignee does not obtain the commissioner's priority. Any
proceeds from the sale of the right of redemption deleted text beginshall bedeleted text endnew text begin arenew text end credited to the contingent
account.

Subd. 2.

Levy.

(a) If any amount due under this chapter or section 116L.20, from
an applicant or an employer, is not paid when due, the amount may be collected by the
commissioner by direct levy upon all property and rights of property of the person liable
for the amount due except that exempt from execution under section 550.37. The term
"levy" includes the power of distraint and seizure by any means.

(b) In addition to a direct levy, the commissioner may issue a warrant to the sheriff
of any county who shall proceed within 60 calendar days to levy upon the property or
rights to property of the delinquent person within the county, except that exempt under
section 550.37. The sheriff shall sell that property necessary to satisfy the total amount
due, together with the commissioner's and sheriff's costs. The sales deleted text beginshall bedeleted text endnew text begin arenew text end governed
by the law applicable to sales of like property on execution of a judgment.

(c) Notice and demand for payment of the total amount due deleted text beginshalldeleted text endnew text begin mustnew text end be mailed
to the delinquent person at least ten calendar days deleted text beginprior todeleted text endnew text begin beforenew text end action being taken
under paragraphs (a) and (b).

(d) If the commissioner has reason to believe that collection of the amount due is in
jeopardy, notice and demand for immediate payment may be made. If the total amount
due is not paid, the commissioner may proceed to collect by direct levy or issue a warrant
without regard to the ten calendar day period.

(e) In executing the levy, the commissioner shall have all of the powers provided
in chapter 550 or any other law that provides for execution against property in this state.
The sale of property levied upon and the time and manner of redemption deleted text beginshall bedeleted text endnew text begin isnew text end as
provided in chapter 550. The seal of the court deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end required. The levy may be
made whether or not the commissioner has commenced a legal action for collection.

(f) Where any assessment has been made by the commissioner, the property seized
for collection of the total amount due deleted text beginshalldeleted text endnew text begin mustnew text end not be sold until any determination of
liability has become final. No sale deleted text beginshalldeleted text endnew text begin maynew text end be made unless a portion of the amount due
remains unpaid for a period of more than 30 calendar days after the determination of
liability becomes final. Seized property may be sold at any time if:

(1) the delinquent person consents in writing to the sale; or

(2) the commissioner determines that the property is perishable or may become
greatly reduced in price or value by keeping, or that the property cannot be kept without
great expense.

(g) Where a levy has been made to collect the amount due and the property seized
is properly included in a formal proceeding commenced under sections 524.3-401 to
524.3-505 and maintained under full supervision of the court, the property deleted text beginshalldeleted text endnew text begin maynew text end not
be sold until the probate proceedings are completed or until the court orders.

(h) The property seized deleted text beginshalldeleted text endnew text begin mustnew text end be returned if the owner:

(1) gives a surety bond equal to the appraised value of the owner's interest in the
property, as determined by the commissioner, or

(2) deposits with the commissioner security in a form and amount the commissioner
considers necessary to insure payment of the liability.

(i) If a levy or sale would irreparably injure rights in property that the court
determines superior to rights of the state, the court may grant an injunction to prohibit the
enforcement of the levy or to prohibit the sale.

(j) Any person who fails or refuses to surrender without reasonable cause any
property or rights to property subject to levy deleted text beginshall bedeleted text endnew text begin isnew text end personally liable in an amount equal
to the value of the property or rights not so surrendered, but not exceeding the amount due.

(k) If the commissioner has seized the property of any individual, that individual
may, upon giving 48 hours notice to the commissioner and to the court, bring a claim for
equitable relief before the district court for the release of the property upon terms and
conditions the court considers equitable.

(l) Any person in control or possession of property or rights to property upon which
a levy has been made who surrenders the property or rights to property, or who pays the
amount due deleted text beginshall bedeleted text endnew text begin isnew text end discharged from any obligation or liability to the person liable for
the amount due with respect to the property or rights to property.

(m) The notice of any levy may be served personally or by mail.

(n) The commissioner may release the levy upon all or part of the property or rights
to property levied upon if the commissioner determines that the release will facilitate the
collection of the liability, but the release deleted text beginshalldeleted text endnew text begin doesnew text end not prevent any subsequent levy.
If the commissioner determines that property has been wrongfully levied upon, the
commissioner shall return:

(1) the specific property levied upon, at any time; or

(2) an amount of money equal to the amount of money levied upon, at any time
before the expiration of nine months from the date of levy.

(o) Regardless of section 52.12, a levy upon a person's funds on deposit in a financial
institution located in this state, deleted text beginshall havedeleted text endnew text begin hasnew text end priority over any unexercised right of setoff
of the financial institution to apply the levied funds toward the balance of an outstanding
loan or loans owed by the person to the financial institution. A claim by the financial
institution that it exercised its right to setoff deleted text beginprior todeleted text endnew text begin beforenew text end the levy must be substantiated
by evidence of the date of the setoff, and verified by an affidavit from a corporate officer
of the financial institution. For purposes of determining the priority of any levy under this
subdivision, the levy deleted text beginshall bedeleted text endnew text begin isnew text end treated as if it were an execution under chapter 550.

Subd. 3.

Right of setoff.

(a) Upon certification by the commissioner to the
commissioner of finance, or to any state agency that disburses its own funds, that a person,
applicant, or employer has a liability under this chapter or section 116L.20, and that
the state has purchased personal services, supplies, contract services, or property from
that person, the commissioner of finance or the state agency shall set off and pay to the
commissioner an amount sufficient to satisfy the unpaid liability from funds appropriated
for payment of the obligation of the state otherwise due the person. No amount deleted text beginshalldeleted text endnew text begin maynew text end
be set off from any funds exempt under section 550.37 or funds due an individual who
receives assistance under chapter 256.

(b) All funds, whether general or dedicated, deleted text beginshall bedeleted text endnew text begin arenew text end subject to setoff.

Regardless of any law to the contrary, the commissioner deleted text beginshall havedeleted text endnew text begin hasnew text end first priority
to setoff from any funds otherwise due from the department to a delinquent person.

Subd. 4.

Collection by civil action.

(a) Any amount due under this chapter or
section 116L.20, from an applicant or employer, may be collected by civil action in the
name of the state of Minnesota. Civil actions brought under this subdivision deleted text beginshalldeleted text endnew text begin mustnew text end be
heard as provided under section 16D.14. In any action, judgment deleted text beginshalldeleted text endnew text begin mustnew text end be entered in
default for the relief demanded in the complaint without proof, together with costs and
disbursements, upon the filing of an affidavit of default.

(b) Any person that is not a resident of this state and any resident person removed
from this state, deleted text beginshall bedeleted text endnew text begin isnew text end considered to appoint the secretary of state as its agent for the
acceptance of process in any civil action. The commissioner shall file process with the
secretary of state, together with a payment of a fee of $15 and that service deleted text beginshall bedeleted text endnew text begin isnew text end
considered sufficient service and deleted text beginshall havedeleted text endnew text begin hasnew text end the same force and validity as if served
personally within this state. Notice of the service of process, together with a copy of
the process, deleted text beginshalldeleted text endnew text begin mustnew text end be sent by certified mail to the person's last known address. An
affidavit of compliance with this subdivision, and a copy of the notice of service deleted text beginshalldeleted text endnew text begin mustnew text end
be appended to the original of the process and filed in the court.

(c) No court filing fees, docketing fees, or release of judgment fees may be assessed
against the state for actions deleted text beginpursuant todeleted text endnew text begin undernew text end this subdivision.

Subd. 5.

Injunction forbidden.

No injunction or other legal action to prevent the
determination, assessment, or collection of any amounts due under this chapter or section
116L.20, from an applicant or employer, deleted text beginshall bedeleted text endnew text begin arenew text end allowed.

Sec. 42.

Minnesota Statutes 2006, section 268.059, is amended to read:


268.059 GARNISHMENT FOR DELINQUENT TAXES AND
UNEMPLOYMENT BENEFIT OVERPAYMENTS.

Subdivision 1.

Notice.

The commissioner may give notice to any employer that
an employee owes any amounts due under this chapter or section 116L.20, and that
the obligation should be withheld from the employee's wages. The commissioner may
proceed only if the amount due is uncontested or if the time for any appeal has expired.
The commissioner deleted text beginshalldeleted text endnew text begin maynew text end not proceed until 30 calendar days after sending to the debtor
employee, by mail or electronic transmission, a notice of intent to garnish wages and
exemption notice. That notice deleted text beginshalldeleted text endnew text begin mustnew text end list:

(1) the amount due from the debtor;

(2) demand for immediate payment; and

(3) the intention to serve a garnishment notice on the debtor's employer.

The notice deleted text beginshall expiredeleted text endnew text begin expiresnew text end 180 calendar days after it has been sent to the debtor
provided that the notice may be renewed by sending a new notice that is in accordance
with this section. The renewed notice deleted text beginshall havedeleted text endnew text begin hasnew text end the effect of reinstating the priority
of the original notice. The exemption notice deleted text beginshalldeleted text endnew text begin mustnew text end be in substantially the same
form as in section 571.72. The notice deleted text beginshalldeleted text endnew text begin mustnew text end inform the debtor of the right to claim
exemptions contained in section 550.37, subdivision 14. If no claim of exemption is
received by the commissioner within 30 calendar days after sending of the notice, the
commissioner may proceed with the garnishment. The notice to the debtor's employer
may be served by mail or electronic transmission and deleted text beginshalldeleted text endnew text begin mustnew text end be in substantially the
same form as in section 571.75.

Subd. 2.

Employer action.

(a) Upon receipt of the garnishment notice, the
employer deleted text beginshalldeleted text endnew text begin mustnew text end withhold from the earnings due or to become due to the employee,
the amount shown on the notice plus accrued interest, subject to section 571.922. The
employer deleted text beginshalldeleted text endnew text begin mustnew text end continue to withhold each pay period the amount shown on the notice
plus accrued interest until the garnishment notice is released by the commissioner. Upon
receipt of notice by the employer, the claim of the commissioner deleted text beginshall havedeleted text endnew text begin hasnew text end priority
over any subsequent garnishments or wage assignments. The commissioner may arrange
between the employer and employee for withholding a portion of the total amount due
the employee each pay period, until the total amount shown on the notice plus accrued
interest has been withheld.

The "earnings due" any employee is as defined in section 571.921.

(b) The maximum garnishment allowed for any one pay period shall be decreased by
any amounts payable deleted text beginpursuant todeleted text endnew text begin undernew text end any other garnishment action served deleted text beginprior todeleted text endnew text begin beforenew text end
the garnishment notice, and any amounts covered by any irrevocable and previously
effective assignment of wages; the employer deleted text beginshalldeleted text endnew text begin mustnew text end give notice to the commissioner
of the amounts and the facts relating to the assignment within ten new text begincalendar new text enddays after the
service of the garnishment notice on the form provided by the commissioner.

(c) Within ten calendar days after the expiration of the pay period, the employer
deleted text begin shalldeleted text endnew text begin mustnew text end remit to the commissioner, on a form and in the manner prescribed by the
commissioner, the amount withheld during each pay period.

Subd. 3.

Discharge or discipline prohibited.

(a) If the employee ceases to be
employed by the employer before the full amount set forth on the garnishment notice
plus accrued interest has been withheld, the employer deleted text beginshalldeleted text endnew text begin mustnew text end immediately notify the
commissioner in writing or by electronic transmission, as prescribed by the commissioner,
of the termination date of the employee and the total amount withheld. No employer may
discharge or discipline any employee because the commissioner has proceeded under this
section. If an employer discharges an employee in violation of this section, the employee
deleted text begin shall havedeleted text endnew text begin hasnew text end the same remedy as provided in section 571.927, subdivision 2.

(b) This section deleted text beginshall applydeleted text end new text beginapplies new text endif the employer is the state of Minnesota or
any political subdivision.

(c) The commissioner shall refund to the employee any excess amounts withheld
from the employee.

(d) An employer that fails or refuses to comply with this section deleted text beginshall bedeleted text endnew text begin isnew text end jointly
and severally liable for the total amount due from the employee. Any amount due from the
employer under this paragraph may be collected in the same manner as any other amounts
due from an employer under this chapter.

Sec. 43.

Minnesota Statutes 2006, section 268.0625, subdivision 5, is amended to read:


Subd. 5.

Licensing authority; duties.

Upon request, the licensing authority deleted text beginshalldeleted text endnew text begin
must
new text end provide the commissioner with a list of all licensees, including the name, address,
business name and address, Social Security number, and business identification number.
The commissioner may request a list of the licensees no more than once each calendar
year. Regardless of section 268.19, the commissioner may release information necessary
to accomplish this section.

Sec. 44.

Minnesota Statutes 2006, section 268.064, is amended to read:


268.064 LIABILITY FOR DEBTS UPON ACQUISITION.

Subdivision 1.

Acquisition of organization, trade, business, or assets.

Any person
who acquires all or part of the organization, trade, business or assets from an employer, is
jointly and severally liable, in an amount not to exceed the reasonable value of that part of
the organization, trade, business or assets acquired, for any amounts due and unpaid by the
employer. The amount of liability deleted text beginshalldeleted text endnew text begin isnew text end, in addition, deleted text beginbedeleted text end a lien against the property or
assets acquired and deleted text beginshall be prior todeleted text end new text beginis before new text endall other unrecorded liens. This section does
not apply to sales in the normal course of the employer's business.

Subd. 2.

Reasonable value.

The commissioner, upon the commissioner's own
motion or upon application of the acquiring person, shall determine the reasonable value
of the organization, trade, business or assets acquired based on available information. The
determination deleted text beginshall bedeleted text endnew text begin isnew text end final unless the acquiring person, within deleted text begin30deleted text endnew text begin 20new text end calendar days
after being sent the determination by mail or electronic transmission, files an appeal.
Proceedings on the appeal deleted text beginshall bedeleted text endnew text begin arenew text end conducted in accordance with section 268.105.

Subd. 3.

Statement of amount due.

deleted text beginPrior todeleted text endnew text begin Beforenew text end the date of acquisition, the
commissioner deleted text beginshalldeleted text endnew text begin mustnew text end furnish the acquiring person with a statement of the amounts
due and unpaid under this chapter or section 116L.20 upon the request of the potential
acquiring person and the release of the obligor. No release is required after the date of
acquisition.

Sec. 45.

Minnesota Statutes 2006, section 268.065, subdivision 1, is amended to read:


Subdivision 1.

Subcontractors.

A contractor who contracts with any subcontractor
deleted text begin shalldeleted text endnew text begin mustnew text end guarantee the payment of all amounts that are due or become due from the
subcontractor with respect to taxable wages paid on the contract by:

(1) withholding sufficient money on the contract; or

(2) requiring the subcontractor to provide a sufficient bond guaranteeing the payment
of all amounts that may become due.

The contractor may make a request for verification that the subcontractor has
paid the taxes due 60 calendar days after the due date for filing the wage detail report
that includes the final wages paid for employment performed under the contract. If
the subcontractor has paid the amounts due for the period covered by the contract, the
commissioner may release the contractor from its liability.

The words "contractor" and "subcontractor" include individuals, partnerships, firms,
or corporations, or other association of persons engaged in the construction industry.

Sec. 46.

Minnesota Statutes 2006, section 268.067, is amended to read:


268.067 COMPROMISE.

(a) The commissioner may compromise in whole or in part any action, determination,
or decision that affects only an employer and not an applicant, and that has occurred
during the prior 24 months. This paragraph may apply if it is determined by a court of law,
or a confession of judgment, that an applicant, while employed, wrongfully took from the
employer $500 or more in money or property.

(b) The commissioner may at any time compromise any amount due from an
employer under this chapter or section 116L.20.

(c) Any compromise involving an amount over $2,500 deleted text beginshalldeleted text endnew text begin mustnew text end be authorized by
an attorney who is an employee of the department designated by the commissioner for
that purpose.

(d) Any compromise must be in the best interest of the state of Minnesota.

Sec. 47.

Minnesota Statutes 2006, section 268.0675, is amended to read:


268.0675 NO ELECTION OF REMEDY.

Use of any remedy under this chapter for the collection of any amount due from an
employer or an applicant deleted text beginshalldeleted text endnew text begin doesnew text end not constitute an election of remedy to the exclusion
of any other available remedy.

Sec. 48.

Minnesota Statutes 2006, section 268.068, is amended to read:


268.068 NOTICE TO WORKERS.

Each employer deleted text beginshalldeleted text endnew text begin mustnew text end post and maintain printed statements of an individual's
right to apply for unemployment benefits in places readily accessible to workers in the
employer's service. The printed statements deleted text beginshalldeleted text endnew text begin mustnew text end be supplied by the commissioner at
no cost to an employer.

Sec. 49.

Minnesota Statutes 2006, section 268.069, subdivision 2, is amended to read:


Subd. 2.

Unemployment benefits paid from state funds.

Unemployment benefits
are paid from state funds and deleted text beginshalldeleted text endnew text begin arenew text end not deleted text beginbedeleted text end considered paid from any special insurance
plan, nor as paid by an employer. An application for unemployment benefits deleted text beginshalldeleted text endnew text begin isnew text end
not deleted text beginbedeleted text end considered a claim against an employer but deleted text beginshall bedeleted text endnew text begin isnew text end considered a request for
unemployment benefits from the trust fund. The commissioner has the responsibility
for the proper payment of unemployment benefits regardless of the level of interest
or participation by an applicant or an employer in any determination or appeal. An
applicant's entitlement to unemployment benefits deleted text beginshalldeleted text endnew text begin mustnew text end be determined based upon
that information available without regard to any common law burden of proof, and
any agreement between an applicant and an employer deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end binding on the
commissioner in determining an applicant's entitlement. There deleted text beginshall bedeleted text endnew text begin isnew text end no presumption
of entitlement or nonentitlement to unemployment benefits.

Sec. 50.

Minnesota Statutes 2006, section 268.069, subdivision 3, is amended to read:


Subd. 3.

Common law.

There deleted text beginshall bedeleted text endnew text begin isnew text end no equitable or common law denial or
allowance of unemployment benefits.

Sec. 51.

Minnesota Statutes 2006, section 268.084, is amended to read:


268.084 PERSONAL IDENTIFICATION NUMBER; PRESUMPTION.

(a) Each applicant deleted text beginshalldeleted text endnew text begin mustnew text end be issued a personal identification number (PIN) for
the purpose of filing continued biweekly requests for unemployment benefits, accessing
information, and engaging in other transactions with the department.

(b) If a PIN assigned to an applicant is used in the filing of a continued biweekly
request for unemployment benefits under section 268.086 or any other type of transaction,
the applicant deleted text beginshall bedeleted text endnew text begin isnew text end presumed to have been the individual using that PIN and presumed
to have received any unemployment benefit payment issued. This presumption may be
rebutted by a preponderance of the evidence showing that the applicant assigned the PIN
was not the individual who used that PIN in the transaction.

(c) The commissioner shall notify each applicant of this section.

Sec. 52.

Minnesota Statutes 2006, section 268.085, subdivision 3a, is amended to read:


Subd. 3a.

Workers' compensation and disability insurance offset.

(a) An
applicant is not eligible to receive unemployment benefits for any week in which the
applicant is receiving or has received compensation for loss of wages equal to or in excess
of the applicant's weekly unemployment benefit amount under:

(1) the workers' compensation law of this state;

(2) the workers' compensation law of any other state or similar federal law; or

(3) any insurance or trust fund paid in whole or in part by an employer.

(b) This subdivision deleted text beginshalldeleted text endnew text begin doesnew text end not apply to an applicant who has a claim pending for
loss of wages under paragraph (a); however, before unemployment benefits may be paid
when a claim is pending, the issue of the applicant being able to work, as required under
subdivision 1, clause (2), deleted text beginshall bedeleted text endnew text begin isnew text end determined under section 268.101, subdivision 3. If
the applicant later receives compensation as a result of the pending claim, the applicant is
subject to the provisions of paragraph (a) and the unemployment benefits paid deleted text beginshall bedeleted text endnew text begin arenew text end
subject to recoupment by the commissioner to the extent that the compensation constitutes
overpaid unemployment benefits.

(c) If the amount of compensation described under paragraph (a) for any week is
less than the applicant's weekly unemployment benefit amount, unemployment benefits
requested for that week deleted text beginshall bedeleted text endnew text begin arenew text end reduced by the amount of that compensation payment.

Sec. 53.

Minnesota Statutes 2006, section 268.085, subdivision 6, is amended to read:


Subd. 6.

Receipt of back pay.

(a) Back pay received by an applicant with respect to
any week occurring in the 104 weeks deleted text beginprior todeleted text endnew text begin beforenew text end the payment of the back pay deleted text beginshalldeleted text endnew text begin
must
new text end be deducted from unemployment benefits paid for that week.

If the back pay is not paid with respect to a specific period, the back pay deleted text beginshalldeleted text endnew text begin mustnew text end
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 deleted text beginshalldeleted text endnew text begin mustnew text end be:

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

(2) applied to unemployment benefit overpayments resulting from the payment of
the back pay; and

(3) credited to the maximum amount of unemployment benefits available to the
applicant in a benefit year that includes the weeks for which back pay was deducted.

(c) Unemployment benefits paid the applicant deleted text beginshalldeleted text endnew text begin mustnew text end be removed from the
computation of the tax rate for taxpaying employers and removed from the reimbursable
account for nonprofit and government employers that have elected to be liable for
reimbursements in the calendar quarter the trust fund receives payment.

(d) Payments to the trust fund under this subdivision deleted text beginshall bedeleted text endnew text begin arenew text end considered as
made by the applicant.

Sec. 54.

Minnesota Statutes 2006, section 268.085, subdivision 7, is amended to read:


Subd. 7.

School employees.

(a) No wage credits in any amount from any
employment with any educational institution or institutions earned in any capacity may
be 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 any 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
any educational institution or institutions in the following academic year or term, unless
that subsequent employment is substantially less favorable than the employment of the
prior academic year or term.

(b) Paragraph (a) deleted text beginshalldeleted text endnew text begin doesnew text end 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 deleted text beginshall bedeleted text endnew text begin isnew text end
entitled to retroactive unemployment benefits for each week during the period between
academic years or terms that the applicant filed a timely continued biweekly request
for unemployment benefits, but unemployment benefits were denied solely because of
paragraph (a).

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

(e) Paragraph (a) deleted text beginshall applydeleted text endnew text begin appliesnew text end 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.

(f) This subdivision deleted text beginshall applydeleted text endnew text begin appliesnew text end 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 agency or entity established and
operated exclusively for the purpose of providing services to one or more educational
institutions. This subdivision deleted text beginshalldeleted text end also deleted text beginapplydeleted text endnew text begin appliesnew text end to employment with Minnesota or
a political subdivision, or a nonprofit organization, if the services are provided to or on
behalf of an educational institution or institutions.

(g) Paragraphs (a) and (e) deleted text beginshalldeleted text end apply beginning the Sunday of the week that there
is a reasonable assurance of employment.

(h) Employment with multiple education institutions deleted text beginshalldeleted text endnew text begin mustnew text end be aggregated for
purposes of application of this subdivision.

(i) 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 deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered
substantially less favorable employment.

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

(k) A "reasonable assurance" may be written, oral, implied, or established by
custom or practice.

(l) An "educational institution" is an educational entity operated by Minnesota
or a political subdivision or an instrumentality thereof, or an educational organization
described 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).

Sec. 55.

Minnesota Statutes 2006, section 268.085, subdivision 8, is amended to read:


Subd. 8.

Services for school contractors.

(a) Wage credits from an employer
are subject to subdivision 7, if:

(1) the employment was provideddeleted text begin pursuant todeleted text endnew text begin undernew text end a contract between the employer
and an elementary or secondary school; and

(2) the contract was for services that the elementary or secondary school could have
had performed by its employees.

(b) Wage credits from an employer are not subject to subdivision 7 if:

(1) those wage credits were earned by an employee of a private employer performing
work deleted text beginpursuant todeleted text endnew text begin undernew text end a contract between the employer and an elementary or secondary
school; and

(2) the employment was related to food services provided to the school by the
employer.

Sec. 56.

Minnesota Statutes 2006, section 268.085, subdivision 11, is amended to read:


Subd. 11.

Athletes and coaches.

Unemployment benefits deleted text beginshalldeleted text endnew text begin mustnew text end not be paid to
an applicant on the basis of any wage credits from employment that consists of coaching
or participating in sports or athletic events or training or preparing to participate for any
week during the period between two successive sport seasons, or similar periods, if:

(1) the applicant was so employed in the prior season or similar period, and

(2) there is a reasonable assurance that the applicant will be so employed in the
following season or similar period.

Sec. 57.

Minnesota Statutes 2006, section 268.085, subdivision 12, is amended to read:


Subd. 12.

Aliens.

(a) An alien deleted text beginshall bedeleted text endnew text begin isnew text end 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 deleted text beginshall bedeleted text endnew text begin
is
new text end considered conclusive, absent specific evidence that the information was erroneous.
deleted text begin Pursuant todeleted text endnew text begin Undernew text end the existing agreement between the United States and Canada, this
paragraph deleted text beginshalldeleted text endnew text begin doesnew text end 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) Unemployment benefits deleted text beginshalldeleted text endnew text begin mustnew text end not be paid on the basis of wage credits
earned by an alien unless the alien (1) was lawfully admitted for permanent residence at
the time of the employment, (2) was lawfully present for the purposes of the employment,
or (3) was permanently residing in the United States under color of law at the time of the
employment.

(c) Any information required of applicants applying for unemployment benefits to
determine eligibility because of their alien status deleted text beginshalldeleted text endnew text begin mustnew text end be required from all applicants.

Sec. 58.

Minnesota Statutes 2006, 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 as defined under section 268.095, subdivision 6, deleted text beginshall bedeleted text endnew text begin isnew text end
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 pay for more than 30 calendar days
deleted text begin shall bedeleted text endnew text begin isnew text end considered a discharge from employment under section 268.095, subdivision 5.

(c) A suspension from employment with pay, regardless of duration, deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end
considered a separation from employment and the applicant deleted text beginshall bedeleted text endnew text begin isnew text end ineligible for
unemployment benefits for the duration of the suspension with pay.

Sec. 59.

Minnesota Statutes 2006, section 268.085, subdivision 13a, is amended to
read:


Subd. 13a.

Leave of absence.

(a) An applicant on a voluntary leave of absence
deleted text begin shall bedeleted text endnew text begin isnew text end ineligible for unemployment benefits for the duration of the leave of absence.
An applicant on an involuntary leave of absence deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end 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 deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end presumed to be voluntary.

(b) A period of vacation requested by the applicant, paid or unpaid, deleted text beginshall bedeleted text endnew text begin isnew text end
considered 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, deleted text beginshall bedeleted text endnew text begin isnew text end considered an involuntary leave of absence.

(c) A voluntary leave of absence deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered a quit and an involuntary
leave of absence deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered 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, deleted text beginshall bedeleted text endnew text begin isnew text end ineligible for unemployment benefits for the
duration of the leave.

(e) This subdivision deleted text beginshall applydeleted text endnew text begin appliesnew text end 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. 60.

Minnesota Statutes 2006, section 268.085, subdivision 13b, is amended to
read:


Subd. 13b.

Labor dispute.

(a) An applicant who has stopped working because of a
labor dispute at the establishment where the applicant is employed deleted text beginshall bedeleted text endnew text begin isnew text end ineligible for
unemployment benefits:

(1) until the end of the calendar week that the labor dispute was in active progress if
the applicant is participating in or directly interested in the labor dispute; or

(2) until the end of the calendar week that the labor dispute began if the applicant is
not participating in or directly interested in the labor dispute.

Participation includes any failure or refusal by an applicant, voluntarily or
involuntarily, to accept and perform available and customary work at the establishment.

(b) An applicant who has stopped working because of a jurisdictional controversy
between two or more labor organizations at the establishment where the applicant is
employed deleted text beginshall bedeleted text endnew text begin isnew text end ineligible for unemployment benefits until the end of the calendar
week that the jurisdictional controversy was in progress.

(c) An applicant deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end ineligible for unemployment benefits under this
subdivision if:

(1) the applicant stops working because of an employer's intentional failure to
observe the terms of the safety and health section of a union contract or failure to comply
with an official citation for a violation of federal or state laws involving occupational
safety and health;

(2) the applicant stops working because of a lockout; or

(3) the applicant is discharged deleted text beginprior todeleted text endnew text begin beforenew text end the beginning of a labor dispute.

(d) A quit from employment by the applicant during the time that the labor dispute is
in active progress at the establishment deleted text beginshalldeleted text endnew text begin doesnew text end not terminate the applicant's participation
in or direct interest in the labor dispute for purposes of this subdivision.

(e) For the purpose of this subdivision, the term "labor dispute" deleted text beginshall havedeleted text endnew text begin hasnew text end the
same definition as provided in section 179.01, subdivision 7.

Sec. 61.

Minnesota Statutes 2006, section 268.085, subdivision 16, is amended to read:


Subd. 16.

Actively seeking suitable employment defined.

(a) "Actively seeking
suitable employment" means those reasonable, diligent efforts an individual in similar
circumstances would make if genuinely interested in obtaining suitable employment under
the existing conditions in the labor market area. Limiting the search to positions that are
not available or are above the applicant's training, experience, and qualifications is not
"actively seeking suitable employment."

(b) To be considered "actively seeking suitable employment" an applicant deleted text beginshalldeleted text endnew text begin
must
new text end, when reasonable, contact those employers from whom the applicant was laid off
deleted text begin due todeleted text endnew text begin because ofnew text end lack of work and request suitable employment.

(c) If reasonable prospects of suitable employment in the applicant's usual or
customary occupation do not exist, the applicant must actively seek other suitable
employment to be considered "actively seeking suitable employment." This applies to an
applicant who is seasonally unemployed.

(d) An applicant who is seeking employment only through a union is not actively
seeking suitable employment unless the applicant is in an occupation where it is required
by union rule that all the hiring in that locality is done through the union new text beginor that all
members are restricted to obtaining employment among signatory contractors in the
construction industry
new text end. The applicant must be a union member in good standing, registered
with the union for employment, and in compliance with other union rules to be considered
"actively seeking suitable employment."

Sec. 62.

Minnesota Statutes 2006, section 268.086, subdivision 1, is amended to read:


Subdivision 1.

Active benefit account.

(a) A benefit account deleted text beginshall bedeleted text endnew text begin isnew text end considered
active only when an applicant files continued biweekly requests for unemployment
benefits in the manner and within the time periods prescribed. A benefit account deleted text beginshall bedeleted text endnew text begin
is
new text end considered inactive if an applicant stops filing a continued biweekly request or fails to
file a continued biweekly request within the time period required. The benefit account
deleted text begin shall bedeleted text endnew text begin isnew text end considered inactive as of the Sunday following the last week or biweekly period
for which a continued biweekly request has been timely filed.

(b) A benefit account that is inactive deleted text beginshall bedeleted text endnew text begin isnew text end reactivated the Sunday of the week
that the applicant makes a contact with the department to do so, in the manner prescribed
by the commissioner for reactivating that applicant's benefit account. Upon specific
request of an applicant, a benefit account may be reactivated effective up to two weeks
deleted text begin prior todeleted text endnew text begin beforenew text end the week the applicant made contact with the department to reactivate.

Sec. 63.

Minnesota Statutes 2006, section 268.086, subdivision 3, is amended to read:


Subd. 3.

Methods for filing continued biweekly requests for unemployment
benefits.

(a) The commissioner shall designate to each applicant one of the following
methods for filing a continued biweekly request:

(1) by electronic transmission under subdivision 5;

(2) by mail under subdivision 6; or

(3) by in-person interview under subdivision 7.

(b) The method designated by the commissioner deleted text beginshall bedeleted text endnew text begin isnew text end the only method allowed
for filing a continued biweekly request by that applicant. An applicant may ask that
one of the other allowed methods be designated and the commissioner shall consider
inconvenience to the applicant as well as administrative capacity in determining whether
to allow an applicant to change the designated method for filing a continued biweekly
request for unemployment benefits.

Sec. 64.

Minnesota Statutes 2006, section 268.086, subdivision 5, is amended to read:


Subd. 5.

Continued biweekly request for unemployment benefits by electronic
transmission.

(a) A continued biweekly request for unemployment benefits by electronic
transmission deleted text beginshalldeleted text endnew text begin mustnew text end be filed to that electronic mail address or Internet address
prescribed by the commissioner for that applicant. In order to constitute a continued
biweekly request, all information asked for, including information authenticating that the
applicant is sending the transmission, must be provided in the format required. If all of
the information asked for is not provided, the communication deleted text beginshalldeleted text endnew text begin doesnew text end not constitute a
continued biweekly request for unemployment benefits.

The electronic transmission communication must be filed on the date required for
the applicant for filing a continued biweekly request by electronic transmission.

(b) If the electronic transmission continued biweekly request is not filed on the date
required, a continued biweekly request by electronic transmission deleted text beginshalldeleted text endnew text begin mustnew text end be accepted
if the applicant files the continued biweekly request by electronic transmission within 14
days following the week in which the date required occurred. If the continued biweekly
request by electronic transmission is not filed within 14 days following the week in which
the date required occurred, the electronic continued biweekly request deleted text beginshalldeleted text endnew text begin mustnew text end not be
accepted and the applicant deleted text beginshall bedeleted text endnew text begin isnew text end ineligible for unemployment benefits for the period
covered by the continued biweekly request and the benefit account deleted text beginshall bedeleted text endnew text begin isnew text end considered
inactive, unless the applicant shows good cause for failing to file the continued biweekly
request by electronic transmission within the time period required.

Sec. 65.

Minnesota Statutes 2006, section 268.086, subdivision 6, is amended to read:


Subd. 6.

Continued biweekly request for unemployment benefits by mail.

(a) A
continued biweekly request for unemployment benefits by mail deleted text beginshalldeleted text endnew text begin mustnew text end be on a form
prescribed by the commissioner. The form, in order to constitute a continued biweekly
request, must be totally completed and signed by the applicant.

The form must be filed on the date required for the applicant for filing a continued
biweekly request by mail, in an envelope with postage prepaid thereon, and sent to the
address required by the commissioner for that applicant.

(b) If the mail continued biweekly request for unemployment benefits is not filed on
the date required, a continued biweekly request deleted text beginshalldeleted text endnew text begin mustnew text end be accepted if the form is filed
by mail within 14 days following the week in which the date required occurred. If the form
is not filed within 14 days following the week in which the date required occurred, the
form deleted text beginshalldeleted text endnew text begin willnew text end not be accepted and the applicant deleted text beginshall bedeleted text endnew text begin isnew text end ineligible for unemployment
benefits for the period covered by the continued biweekly request for unemployment
benefits and the benefit account deleted text beginshall bedeleted text endnew text begin isnew text end considered inactive, unless the applicant shows
good cause for failing to file the form by mail within the time period required.

(c) If the applicant has been designated to file a continued biweekly request
for unemployment benefits by mail, an applicant may submit the form by facsimile
transmission on the day otherwise required for mailing, or within 14 days following the
week in which the date required occurred. A form submitted by facsimile transmission
deleted text begin shalldeleted text endnew text begin mustnew text end be sent only to the telephone number assigned for that purpose.

(d) An applicant who has been designated to file a continued biweekly request by
mail may personally deliver a continued biweekly request form only to the location to
which the form was otherwise required to be mailed.

Sec. 66.

Minnesota Statutes 2006, section 268.086, subdivision 8, is amended to read:


Subd. 8.

Good cause.

A continued biweekly request for unemployment benefits
that is not filed within the time periods required by this section deleted text beginshalldeleted text endnew text begin maynew text end be accepted only
for those weeks that the applicant has "good cause" for not filing within the time periods
required.

Sec. 67.

Minnesota Statutes 2006, section 268.086, subdivision 9, is amended to read:


Subd. 9.

Good cause defined.

"Good cause" for purposes of this section is a
compelling substantial reason that would have prevented a reasonable person acting with
due diligence from filing a continued biweekly request for unemployment benefits within
the time periods required.

"Good cause" deleted text beginshalldeleted text endnew text begin doesnew text end not include forgetfulness, loss of the continued biweekly
request form, having returned to work, or inability to file a continued biweekly 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
biweekly request changed by the commissioner. "Good cause" deleted text beginshalldeleted text endnew text begin doesnew text end not include
having previously made an attempt to file a continued biweekly request for unemployment
benefits but where the communication was not considered a continued biweekly request
because the applicant failed to submit all required information.

Sec. 68.

Minnesota Statutes 2006, section 268.087, is amended to read:


268.087 UNEMPLOYMENT BENEFITS DUE DECEASED PERSONS.

If unemployment benefits are due and payable at the time of an applicant's death,
those benefits deleted text beginmaydeleted text endnew text begin mustnew text end, upon application, be paid to the personal representative of the
estate of the deceased. In the event that no personal representative is appointed, the
unemployment benefits deleted text beginmaydeleted text endnew text begin mustnew text end, upon application be paid in the following order: (1) the
surviving spouse, (2) the surviving child or children, or (3) the surviving parent or parents.

An individual seeking payment deleted text beginshalldeleted text endnew text begin mustnew text end complete an application prescribed by the
commissioner and the payment of unemployment benefits deleted text beginshall dischargedeleted text endnew text begin dischargesnew text end the
obligations to the applicant and no other individual deleted text beginshalldeleted text endnew text begin maynew text end claim or assert any right
to those unemployment benefits.

Sec. 69.

Minnesota Statutes 2006, 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) 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, deleted text beginshall bedeleted text endnew text begin isnew text end considered to have quit the employment.

(c) An employee who seeks to withdraw a previously submitted notice of quitting
deleted text begin shall bedeleted text endnew text begin isnew text end considered to have quit the employment if the employer does not agree that the
notice may be withdrawn.

(d) An applicant who, within five calendar days after completion of a suitable
temporary job assignment from a staffing service employer, (1) fails without good cause to
affirmatively request an additional job assignment, or (2) refuses without good cause an
additional suitable job assignment offered, deleted text beginshall bedeleted text endnew text begin isnew text end considered to have quit employment.

This paragraph deleted text beginshall applydeleted text endnew text begin appliesnew text end only if, at the time of beginning of employment
with the staffing service employer, 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" deleted text beginshall bedeleted text endnew text begin isnew text end a reason that is significant
and would compel an average, reasonable worker, who would otherwise want an
additional temporary job assignment with the staffing service employer, (1) to fail to
contact the staffing service employer, or (2) to refuse an offered assignment.

For purposes of this paragraph, a "staffing service employer" is an employer whose
business involves employing individuals directly for the purpose of furnishing temporary
job assignment workers to clients of the staffing service.

Sec. 70.

Minnesota Statutes 2006, section 268.095, subdivision 3, is amended to read:


Subd. 3.

Good reason caused by the employer defined.

(a) A good reason caused
by the employer for quitting is a reason:

(1) that is directly related to the employment and for which the employer is
responsible;

(2) that is adverse to the worker; and

(3) that would compel an average, reasonable worker to quit and become
unemployed rather than remaining in the employment.

(b) The analysis required in paragraph (a) must be applied to the specific facts
of each case.

(c) If an applicant was subjected to adverse working conditions by the employer, the
applicant must complain to the employer and give the employer a reasonable opportunity
to correct the adverse working conditions before that may be considered a good reason
caused by the employer for quitting.

(d) A reason for quitting employment deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered a good reason
caused by the employer for quitting if the reason for quitting occurred because of the
applicant's employment misconduct.

(e) Notification of discharge in the future, including a layoff deleted text begindue todeleted text endnew text begin because ofnew text end lack
of work, deleted text beginshalldeleted text endnew text begin isnew text end not deleted text beginbedeleted text end considered a good reason caused by the employer for quitting.

(f) An applicant has a good reason caused by the employer for quitting if it results
from sexual harassment of which the employer was aware, or should have been aware,
and the employer failed to take timely and appropriate action. Sexual harassment means
unwelcome sexual advances, requests for sexual favors, sexually motivated physical
contact or other conduct or communication of a sexual nature when:

(1) the applicant's submission to the conduct or communication is made a term
or condition of the employment;

(2) the applicant's submission to or rejection of the conduct or communication is the
basis for decisions affecting employment; or

(3) the conduct or communication has the purpose or effect of substantially
interfering with an applicant's work performance or creating an intimidating, hostile, or
offensive working environment.

(g) The definition of a good reason caused by the employer for quitting employment
provided by this subdivision deleted text beginshall bedeleted text endnew text begin isnew text end exclusive and no other definition deleted text beginshall applydeleted text endnew text begin
applies
new text end.

Sec. 71.

Minnesota Statutes 2006, 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 deleted text begindue todeleted text endnew text begin because ofnew text end lack of work deleted text beginshall bedeleted text endnew text begin isnew text end considered a discharge. A suspension from
employment without pay of more than 30 calendar days deleted text beginshall bedeleted text endnew text begin isnew text end considered a discharge.

(b) An employee who gives notice of intention to quit the employment and is not
allowed by the employer to work the entire notice period deleted text beginshall bedeleted text endnew text begin isnew text end considered 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 deleted text beginprior todeleted text endnew text begin beforenew text end the intended date of
quitting, then, as of the intended date of quitting, the separation from employment deleted text beginshall bedeleted text endnew text begin
is
new text end considered a quit from employment subject to subdivision 1.

Sec. 72.

Minnesota Statutes 2006, section 268.095, subdivision 6a, is amended to read:


Subd. 6a.

Aggravated employment misconduct defined.

(a) For the purpose of
this section, "aggravated employment misconduct" means:

(1) the commission of any act, on the job or off the job, that would amount to a gross
misdemeanor or felony if the act substantially interfered with the employment or had a
significant adverse effect on the employment; or

(2) for an employee of a facility as defined in section 626.5572, aggravated
employment misconduct includes an act of patient or resident abuse, financial exploitation,
or recurring or serious neglect, as defined in section 626.5572 and applicable rules.

(b) If an applicant is convicted of a gross misdemeanor or felony for the same act for
which the applicant was discharged, it is aggravated employment misconduct if the act
substantially interfered with the employment or had a significant adverse effect on the
employment.

(c) The definition of aggravated employment misconduct provided by this
subdivision deleted text beginshall bedeleted text endnew text begin isnew text end exclusive and no other definition deleted text beginshall applydeleted text endnew text begin appliesnew text end.

Sec. 73.

Minnesota Statutes 2006, section 268.095, subdivision 11, is amended to read:


Subd. 11.

Application.

(a) Section 268.085, subdivision 13c, and this section deleted text beginshall
apply
deleted text endnew text begin appliesnew text end to all covered employment, full time or part time, temporary or of limited
duration, permanent or of indefinite duration, that occurred in Minnesota during the base
period, the period between the end of the base period and the effective date of the benefit
account, or the benefit year, except as provided for in subdivision 1, clause (5).

(b) Paragraph (a) deleted text beginshalldeleted text end also deleted text beginapplydeleted text endnew text begin appliesnew text end to employment covered under an
unemployment insurance program of any other state or established by an act of Congress.

Sec. 74.

Minnesota Statutes 2006, section 268.103, subdivision 1, is amended to read:


Subdivision 1.

In commissioner's discretion.

The commissioner shall have the
discretion to allow an appeal to be filed by electronic transmission. If the commissioner
allows an appeal to be filed by electronic transmission, that deleted text beginshalldeleted text endnew text begin mustnew text end be clearly set out on
the determination or decision subject to appeal.

The commissioner may restrict the manner, format, and conditions under which
an appeal by electronic transmission may be filed. Any restrictions as to days, hours,
telephone number, electronic address, or other conditions, deleted text beginshalldeleted text endnew text begin mustnew text end be clearly set out on
the determination or decision subject to appeal.

All information requested by the commissioner when an appeal is filed by electronic
transmission must be supplied or the communication deleted text beginshalldeleted text endnew text begin doesnew text end not constitute an appeal.

Sec. 75.

Minnesota Statutes 2006, section 268.103, subdivision 2, is amended to read:


Subd. 2.

Applicant's appeal by mail.

(a) The commissioner must allow an
applicant to file an appeal by mail even if an appeal by electronic transmission is allowed.

(b) A written statement delivered or mailed to the department that could reasonably
be interpreted to mean that an involved applicant is in disagreement with a specific
determination or decision deleted text beginshall bedeleted text endnew text begin isnew text end considered an appeal. No specific words need be used
for the written statement to be considered an appeal.

Sec. 76.

Minnesota Statutes 2006, section 268.105, subdivision 3, is amended to read:


Subd. 3.

Withdrawal of appeal.

(a) Any appeal that is pending before an
unemployment law judge may be withdrawn by the appealing person, or an authorized
representative of that person, upon filing of a notice of withdrawal.

(b) The appeal deleted text beginshalldeleted text endnew text begin mustnew text end, by order, be dismissed if a notice of withdrawal is filed,
unless an unemployment law judge directs that further adjudication is required for a
proper result.

(c) A notice of withdrawal may be filed by mail or by electronic transmission.

Sec. 77.

Minnesota Statutes 2006, section 268.105, subdivision 5, is amended to read:


Subd. 5.

Use of evidence; data privacy.

(a) All testimony at any evidentiary
hearing conducted deleted text beginpursuant todeleted text end new text beginunder new text endsubdivision 1 deleted text beginshalldeleted text end new text beginmust new text endbe recorded. A copy of any
recorded testimony and exhibits offered or received into evidence at the hearing deleted text beginshalldeleted text endnew text begin
must
new text end, upon request, be furnished to a party at no cost during the time period for filing a
request for reconsideration or while a request for reconsideration is pending.

(b) Regardless of any provision of law to the contrary, if recorded testimony and
exhibits received into evidence at the evidentiary hearing are not requested during the time
period for filing a request for reconsideration, or while a request for reconsideration is
pending, that testimony and other evidence deleted text beginshalldeleted text end new text beginmay new text endlater be made available only deleted text beginpursuant
to
deleted text end new text beginunder new text enda district court order. A subpoena deleted text beginshalldeleted text end new text beginis new text endnot deleted text beginbedeleted text end considered a district court order.

(c) Testimony obtained under subdivision 1, may not be used or considered for any
purpose, including impeachment, in any civil, administrative, or contractual proceeding,
except by a local, state, or federal human rights agency with enforcement powers, unless
the proceeding is initiated by the department.

Sec. 78.

Minnesota Statutes 2006, section 268.105, subdivision 6, is amended to read:


Subd. 6.

Representation; fees.

(a) In any proceeding under subdivision 1 or 2, an
applicant or involved employer may be represented by any agent.

(b) Except for services provided by an attorney-at-law, an applicant deleted text beginshalldeleted text end new text beginmay new text endnot be
charged fees, costs, or disbursements of any kind in a proceeding before an unemployment
law judge, the Minnesota Court of Appeals, or the Supreme Court of Minnesota.

Sec. 79.

Minnesota Statutes 2006, section 268.105, subdivision 7, is amended to read:


Subd. 7.

Judicial review.

(a) The Minnesota Court of Appeals shall, by writ of
certiorari to the department, review the unemployment law judge's decision, provided a
petition for the writ is filed with the court and a copy is served upon the unemployment
law judge or the commissioner and any other involved party within 30 calendar days of
the sending of the unemployment law judge's order under subdivision 2.

(b) Any employer petitioning for a writ of certiorari deleted text beginshalldeleted text end new text beginmust new text endpay to the court the
required filing fee and upon the service of the writ deleted text beginshalldeleted text end new text beginmust new text endfurnish a cost bond to the
department in accordance with the Rules of Civil Appellate Procedure. If the employer
requests a written transcript of the testimony received at the evidentiary hearing conducted
deleted text begin pursuant todeleted text end new text beginunder new text endsubdivision 1, the employer deleted text beginshalldeleted text end new text beginmust new text endpay to the department the cost of
preparing the transcript. That money deleted text beginshall bedeleted text end new text beginis new text endcredited to the administration account.

(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a
result of an applicant's petition, the department deleted text beginshalldeleted text end new text beginmust new text endfurnish to the applicant at no
cost a written transcript of any testimony received at the evidentiary hearing conducted
deleted text begin pursuant todeleted text end new text beginunder new text endsubdivision 1, and, if requested, a copy of all exhibits entered into
evidence. No filing fee or cost bond deleted text beginshall bedeleted text end new text beginis new text endrequired of an applicant petitioning the
Minnesota Court of Appeals for a writ of certiorari.

(d) The Minnesota Court of Appeals may affirm the decision of the unemployment
law judge or remand the case for further proceedings; or it may reverse or modify the
decision if the substantial rights of the petitioner may have been prejudiced because the
findings, inferences, conclusion, or decision are:

(1) in violation of constitutional provisions;

(2) in excess of the statutory authority or jurisdiction of the department;

(3) made upon unlawful procedure;

(4) affected by other error of law;

(5) unsupported by substantial evidence in view of the entire record as submitted; or

(6) arbitrary or capricious.

(e) The department deleted text beginshall bedeleted text end new text beginis new text endconsidered the primary responding party to any
judicial action involving an unemployment law judge's decision. The department may be
represented by an attorney who is an employee of the department.

Sec. 80.

Minnesota Statutes 2006, section 268.115, is amended to read:


268.115 EXTENDED UNEMPLOYMENT BENEFITS.

Subdivision 1.

Definitions.

The terms used in this section deleted text beginshalldeleted text end have the following
meaning:

(1) "Extended unemployment benefit period" means a period that lasts for a
minimum of 13 weeks and that:

(i) Begins with the third week after there is a state "on" indicator; and

(ii) Ends with the third week after there is a state "off" indicator.

No extended unemployment benefit period may begin before the 14th week
following the end of a prior extended unemployment benefit period.

(2) There is a "state 'on' indicator" for a week if:

(i) for that week and the prior 12 weeks, the rate of insured unemployment:

(a) equaled or exceeded 120 percent of the average of the rates for the corresponding
13-week period ending in each of the prior two calendar years, and was five percent or
more; or

(b) equaled or exceeded six percent; or

(ii) The United States Secretary of Labor determines that the average rate of
seasonally adjusted total unemployment in Minnesota for the most recent three months
for which data is published equals or exceeds 6.5 percent and this rate equals or exceeds
110 percent of the rate of the corresponding three-month period in either of the prior
two calendar years.

(3) There is a "state 'off' indicator" for a week if:

(i) under clause (2)(i), for that week and the prior 12 weeks, the requirements for a
"state 'on' indicator" are not satisfied; or

(ii) under clause (2)(ii) the requirements for a "state 'on' indicator" are not satisfied.

(4) "Rate of insured unemployment," means the percentage derived by dividing
the average weekly number of applicants filing continued biweekly requests for regular
unemployment benefits in the most recent 13-week period by the average monthly covered
employment for the first four of the last six completed calendar quarters before the end
of that 13-week period.

(5) "Regular unemployment benefits" means unemployment benefits available to
an applicant other than extended unemployment benefits and additional unemployment
benefits.

(6) "Eligibility period" for an applicant means the period consisting of the weeks
remaining in the applicant's benefit year within the extended unemployment benefit period
and, if the benefit year ends within the extended unemployment benefit period, any weeks
in the extended unemployment benefit period.

(7) "Exhaustee" means an applicant who, in the eligibility period:

deleted text begin (a)deleted text endnew text begin (i)new text end the benefit year having not expired has received the maximum amount of
regular unemployment benefits that were available under section 268.07;new text begin ornew text end

deleted text begin (b)deleted text endnew text begin (ii)new text end the benefit year having expired, has insufficient wage credits to establish a
new benefit account; and

deleted text begin (c)deleted text end has no right to any type of unemployment benefits under deleted text beginthe law ofdeleted text end any other state
or deleted text beginunderdeleted text end federal laws and is not receiving unemployment benefits under the law of Canada.

Subd. 3.

Requirements for extended unemployment benefits.

If an extended
unemployment benefit period is in effect, an applicant deleted text beginshall bedeleted text endnew text begin isnew text end paid extended
unemployment benefits from the trust fund for any week in the applicant's eligibility
period if the applicant:

(1) is an "exhaustee";

(2) has satisfied the same requirements as those for regular unemployment benefits
under section 268.069;

(3) has wage credits of not less than 40 times the weekly unemployment benefit
amount; and

(4) is not subject to a denial of extended unemployment benefits under subdivision 9.

Subd. 4.

Weekly extended unemployment benefit amount.

The weekly extended
unemployment benefit amount deleted text beginshall bedeleted text endnew text begin isnew text end the same as the weekly unemployment benefit
amount of regular unemployment benefits.

Subd. 5.

Maximum amount of extended unemployment benefits.

The maximum
amount of extended unemployment benefits available to an applicant deleted text beginshall bedeleted text endnew text begin isnew text end 50
percent of the maximum amount of regular unemployment benefits available in the benefit
year, rounded down to the next lower whole dollar. If the total rate of unemployment
computed under subdivision 1, clause (2)(ii), equaled or exceeded eight percent, the
maximum amount of extended unemployment benefits available deleted text beginshall bedeleted text endnew text begin isnew text end 80 percent of
the maximum amount of regular unemployment benefits available in the benefit year.

Subd. 6.

Public announcement.

Whenever an extended unemployment benefit
period is to begin as a result of a state "on" indicator, or an extended unemployment
benefit period is to end as a result of a state "off" indicator the commissioner shall make an
appropriate public announcement.

Subd. 7.

Federal law.

This section is enacted to conform to the requirements of
United States Code, title 26, section 3304, the Federal-State Extended Unemployment
Compensation Act of 1970 as amended and the applicable federal regulations.

Subd. 8.

Interstate applicants.

An applicant residing in a state other than
Minnesota shall be eligible for only the first two weeks of extended unemployment
benefits if the applicant's benefit account was established deleted text beginpursuant todeleted text endnew text begin undernew text end the interstate
benefit payment plan and no extended unemployment benefit period is in effect for the
week in that state.

Subd. 9.

Denial provisions.

(a) An applicant deleted text beginshall bedeleted text endnew text begin isnew text end denied extended
unemployment benefits for any week in the applicant's eligibility period if during that
week the applicant failed to accept any offer of suitable employment, failed to apply
for any suitable employment that the applicant was referred to by the commissioner, or
failed to actively seek suitable employment.

The denial deleted text beginshall continuedeleted text endnew text begin continuesnew text end until the applicant has been employed in covered
employment in each of four subsequent weeks, whether or not consecutive, and had
earnings from that covered employment of not less than four times the applicant's weekly
unemployment benefit amount.

(b) For the purpose of this subdivision "suitable employment" means any
employment that is within the applicant's capabilities and that has a gross average weekly
wage that exceeds the applicant's weekly unemployment benefit amount. The employment
must pay wages not less than the higher of the federal minimum wage without regard to
any exemption, or the applicable state minimum wage.

(c) No applicant deleted text beginshalldeleted text endnew text begin maynew text end be denied extended unemployment benefits for failure to
accept an offer of or apply for any suitable employment if:

(1) the position was not offered to the applicant in writing;

(2) the position was not listed with the job service; or

(3) the applicant furnishes satisfactory evidence that prospects for obtaining
employment in the applicant's customary occupation within a reasonably short period
are good. If the evidence is satisfactory, the determination of whether any employment
is suitable deleted text beginshall bedeleted text endnew text begin isnew text end made in accordance with the definition of suitable employment in
section 268.035, subdivision 23a.

(d) For the purpose of this subdivision an applicant is "actively seeking suitable
employment" only if the applicant has engaged in a systematic and sustained effort to
obtain employment, and the applicant furnishes tangible evidence of that effort.

Subd. 10.

Job service referral.

The job service deleted text beginshalldeleted text endnew text begin mustnew text end refer any applicant
who is filing continued biweekly requests for extended unemployment benefits to any
employment that is suitable under subdivision 9.

Sec. 81.

Minnesota Statutes 2006, section 268.125, subdivision 4, is amended to read:


Subd. 4.

Weekly unemployment benefit amount.

An applicant's weekly
additional unemployment benefit amount deleted text beginshall bedeleted text endnew text begin isnew text end the same as the applicant's weekly
unemployment benefit amount during the current benefit year under section 268.07.

Sec. 82.

Minnesota Statutes 2006, section 268.125, subdivision 5, is amended to read:


Subd. 5.

Maximum amount of unemployment benefits.

The maximum amount
of additional unemployment benefits available in the applicant's benefit year deleted text beginshall bedeleted text endnew text begin isnew text end
one-half of the applicant's maximum amount of regular unemployment benefits available
under section 268.07, subdivision 2, rounded down to the next lower whole dollar.
Extended unemployment benefits paid and unemployment benefits paid under any federal
law other than regular unemployment benefits deleted text beginshalldeleted text endnew text begin mustnew text end be deducted from the maximum
amount of additional unemployment benefits available.

Sec. 83.

Minnesota Statutes 2006, section 268.135, is amended to read:


268.135 SHARED WORK PLAN.

Subdivision 1.

Definitions.

For purposes of this section:

(1) "Affected employee" means an employee who was continuously employed as
a member of the affected group, for at least six months, on a full-time basis, deleted text beginprior todeleted text end
new text begin before new text endsubmission of the shared work plan.

(2) "Affected group" means five or more employees designated by the employer to
participate in a shared work plan.

(3) "Shared work plan" or "plan" means an employer's plan, submitted in a manner
and format prescribed by the commissioner, under which a group of employees whose
normal weekly hours of work are reduced, in order to prevent employees from being
laid off deleted text begindue todeleted text end new text beginbecause of new text endlack of work.

(4) "Normal weekly hours of work" means the number of hours in a week that the
employee normally would work for the shared work employer or 40 hours, whichever is
less.

Subd. 2.

Participation.

(a) An employer wishing to participate in the shared work
benefit program deleted text beginshalldeleted text end new text beginmust new text endsubmit a shared work plan to the commissioner in a manner
and format prescribed for approval. The commissioner may approve a shared work plan
only if it:

(1) specifies the employees in the affected group;

(2) applies to only one affected group;

(3) includes a certified statement by the employer that each employee specified in
the affected group is an affected employee;

(4) includes a certified statement by the employer that for the duration of the plan
the reduction in normal weekly hours of work of the employees in the affected group is
instead of layoffs that otherwise would result in at least as large a reduction in the total
normal weekly hours of work;

(5) specifies an expiration date that is no more than one year from the date the
employer submits the plan for approval;

(6) specifies that fringe benefits, such as health and retirement, available to the
employees in the affected group are not reduced beyond the percentage of reduction in
hours of work; and

(7) is approved in writing by the collective bargaining agent for each collective
bargaining agreement that covers any employee in the affected group.

(b) The commissioner shall set the beginning and ending dates of an approved
shared work plan.

(c) The commissioner shall send to the employer a determination, by mail or
electronic transmission, approving or disapproving the plan within 15 calendar days of its
receipt. Determinations are final.

(d) Disapproval of a plan may be reconsidered at the discretion of the commissioner.
Approval of a shared work plan may be revoked if the approval was based, in whole or in
part, upon information that was false or misleading.

Subd. 3.

Eligibility.

(a) Regardless of any other provision, an applicant is eligible to
receive shared work benefits with respect to any week if:

(1) during the week the applicant is employed as a member of an affected group in a
plan that was approved deleted text beginprior todeleted text end new text beginbefore new text endthe week and is in effect for the week; and

(2) during the week the normal weekly hours of work were reduced, in accordance
with the plan, at least 20 percent but not more than 40 percent, with a corresponding
reduction in wages.

(b) Shared work benefits deleted text beginshalldeleted text end new text beginmay new text endnot be paid to an applicant beyond one benefit
year.

(c) The total amount of regular unemployment benefits and shared work benefits
paid to an applicant in a benefit year deleted text beginshalldeleted text endnew text begin may new text end not exceed the maximum amount of regular
unemployment benefits available.

(d) An otherwise eligible applicant deleted text beginshalldeleted text end new text begin may new text endnot be denied shared work benefits
because of the application of any provision relating to availability for employment, active
search for employment, or refusal to apply for or accept suitable employment from other
than the applicant's shared work employer.

Subd. 4.

Weekly benefit amount.

(a) An applicant who is eligible for shared work
benefits deleted text beginshalldeleted text end new text beginnew text enddeleted text beginbedeleted text endnew text begin isnew text end paid an amount equal to the regular weekly unemployment benefit
amount multiplied by the nearest full percentage of reduction of the applicant's regular
weekly hours of work as set in the plan. The benefit payment, if not a whole dollar deleted text beginshalldeleted text end
new text begin must new text endbe rounded down to the next lower whole dollar.

(b) The deductible earnings provisions of section 268.085, subdivision 5, deleted text beginshalldeleted text end
new text begin must new text endnot apply to earnings from the shared work employer of an applicant eligible for
shared work benefits unless the resulting amount would be less than the regular weekly
unemployment benefit amount the applicant would otherwise be eligible for without
regard to shared work benefits.

(c) An applicant deleted text beginshalldeleted text end new text beginis new text endnot deleted text beginbedeleted text end eligible for shared work benefits for any week that
employment is performed for the shared work employer in excess of the reduced hours
set forth in the plan.

Sec. 84.

Minnesota Statutes 2006, section 268.145, subdivision 1, is amended to read:


Subdivision 1.

Notification.

(a) Upon filing an application for unemployment
benefits, the applicant deleted text beginshalldeleted text end new text beginmust new text endbe informed that:

(1) unemployment benefits are subject to federal and state income tax;

(2) there are requirements for filing estimated tax payments;

(3) the applicant may elect to have federal income tax withheld from unemployment
benefits;

(4) if the applicant elects to have federal income tax withheld, the applicant may, in
addition, elect to have Minnesota state income tax withheld; and

(5) at any time during the benefit year the applicant may change a prior election.

(b) If an applicant elects to have federal income tax withheld, the commissioner shall
deduct ten percent for federal income tax, rounded down to the next lower whole dollar. If
an applicant also elects to have Minnesota state income tax withheld, the commissioner
shall make an additional five percent deduction for state income tax, rounded down to
the next lower whole dollar. Any amounts deducted or offset deleted text beginpursuant todeleted text end new text beginunder new text endsections
268.155, 268.18, and 268.184 have priority over any amounts deducted under this section.
Federal income tax withholding has priority over state income tax withholding.

(c) An election to have income tax withheld deleted text beginshalldeleted text end new text beginmay new text endnot be retroactive and deleted text beginshalldeleted text end
only deleted text beginapplydeleted text end new text beginapplies new text endto unemployment benefits paid after the election.

Sec. 85.

Minnesota Statutes 2006, section 268.145, subdivision 2, is amended to read:


Subd. 2.

Transfer of funds.

The amount of any unemployment benefits deducted
under this section deleted text beginshall remaindeleted text end new text beginremains new text endin the trust fund until transferred to the federal
Internal Revenue Service, or the Department of Revenue, as an income tax payment on
behalf of the applicant.

Sec. 86.

Minnesota Statutes 2006, section 268.145, subdivision 3, is amended to read:


Subd. 3.

Correction of errors.

Any error that resulted in underwithholding or
overwithholding under this section deleted text beginshalldeleted text end new text beginwill new text endnot be corrected retroactively.

Sec. 87.

Minnesota Statutes 2006, section 268.155, is amended to read:


268.155 CHILD SUPPORT DEDUCTED FROM UNEMPLOYMENT
BENEFITS.

Subdivision 1.

Definitions.

As used in this section:

(1) "Child support obligations" means obligations that are being enforced by a child
support agency deleted text beginpursuant todeleted text endnew text begin in accordance withnew text end a plan described in United States Code,
title 42, section 454, of the Social Security Act that has been approved by the secretary of
health and human services under part D of title IV of the Social Security Act. This deleted text beginshalldeleted text endnew text begin
does
new text end not include any type of spousal maintenance or foster care payments; and

(2) "Child support agency" means the public agency responsible for child support
enforcement.

Subd. 2.

Notice upon application.

In an application for unemployment benefits, the
applicant deleted text begin