1.1 	A bill for an act
1.2 	relating to unemployment insurance; making various policy, housekeeping, and 
1.3 	style changes to the Minnesota Unemployment Insurance Law; incorporating 
1.4 	certain administrative rules into Minnesota Statutes; modifying fraud penalties; 
1.5 	amending Minnesota Statutes 2006, sections 268.001; 268.03, subdivisions 1, 
1.6 	2; 268.035, subdivisions 1, 4, 9, 10, 11, 12, 13, 14, 15, 17, 20, 21a, 23, 23a, 24, 
1.7 	26, 29, 30, by adding a subdivision; 268.042, subdivisions 1, 3, 4; 268.043; 
1.8 	268.0435; 268.044, subdivisions 1, 1a, 2, 3, 4; 268.045, subdivision 1; 268.046; 
1.9 	268.047, subdivisions 1, 2, 3, 5; 268.051, subdivisions 1, 1a, 2, 3, 4, 4a, 5, 6, 
1.10 	7, 8, 9; 268.052, subdivisions 1, 2, 3, 4, 5; 268.0525; 268.053, subdivisions 1, 
1.11 	2, 3; 268.057, subdivisions 1, 2, 3, 4, 5, 6, 7, 10; 268.058; 268.059; 268.0625, 
1.12 	subdivisions 4, 5; 268.063; 268.064; 268.065, subdivisions 1, 3; 268.066; 
1.13 	268.067; 268.0675; 268.068; 268.069, subdivisions 1, 2, 3; 268.07, subdivisions 
1.14 	1, 2, 3a, 3b; 268.084; 268.085, subdivisions 1, 2, 3, 3a, 4, 5, 6, 7, 8, 9, 11, 12, 13, 
1.15 	13a, 13b, 13c, 16; 268.086, subdivisions 1, 2, 3, 5, 6, 7, 8, 9; 268.087; 268.095, 
1.16 	subdivisions 1, 2, 3, 4, 5, 6, 6a, 7, 10, 11; 268.101; 268.103, subdivisions 1, 2; 
1.17 	268.105, subdivisions 1, 2, 3, 3a, 4, 5, 6, 7; 268.115; 268.125, subdivisions 3, 
1.18 	4, 5; 268.131, subdivision 1; 268.135; 268.145, subdivisions 1, 2, 3; 268.155; 
1.19 	268.18, subdivisions 1, 2, 2b, 4, 5, 6; 268.182, subdivisions 1, 2; 268.184, 
1.20 	subdivisions 1, 1a; 268.186; 268.188; 268.19, subdivisions 1, 1a, 2; 268.192; 
1.21 	268.194, subdivisions 1, 2, 3, 4, 5, 6; 268.196, subdivisions 1, 3; 268.20; 268.21; 
1.22 	268.22; 268.23; proposing coding for new law in Minnesota Statutes, chapter 
1.23 	268; repealing Minnesota Statutes 2006, sections 268.0435; 268.0511; 268.085, 
1.24 	subdivision 10; 268.103, subdivision 4; Minnesota Rules, parts 3315.0210; 
1.25 	3315.0220; 3315.0515; 3315.0520; 3315.0525; 3315.0530, subparts 2, 3, 4, 5, 
1.26 	6; 3315.0540; 3315.0550; 3315.0910, subparts 1, 2, 3, 4, 5, 6, 7, 8; 3315.1005, 
1.27 	subparts 1, 3; 3315.1315, subpart 4; 3315.2010; 3315.2810, subparts 2, 4.
1.28 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.29 	ARTICLE 1
1.30 	POLICY CHANGES

1.31 	Section 1. Minnesota Statutes 2006, section 268.035, subdivision 4, is amended to read:
1.32 		Subd. 4.Base period. "Base period" means:
2.1 	(1) the first four of the last five completed calendar quarters prior to before the 
2.2 	effective date of an applicant's benefit account application for unemployment benefits
2.3 	as set forth below:

2.4
2.5
2.6
2.7		If the benefit accountapplication 
for unemployment benefits is 
effective on or between these 
dates:
		The base period is the 
prior:
	
2.8		January 1 - March 31
		October 1 - September 30
	
2.9		April 1 - June 30
		January 1 - December 31
	
2.10		July 1 - September 30
		April 1 - March 31
	
2.11		October 1 - December 31
		July 1 - June 30
	
2.12 	(2) if the applicant has insufficient wage credits to establish a benefit account under 
2.13 	clauses (1) and (3), and during the base period under clause (1) an applicant received 
2.14 	workers' compensation for temporary disability under chapter 176 or a similar federal law 
2.15 	or similar law of another state, or if an applicant whose own serious illness caused a loss 
2.16 	of work for which the applicant received compensation for loss of wages from some other 
2.17 	source, the applicant may request a an extended base period as follows:
2.18 	(i) if an applicant was compensated for a loss of work of seven to 13 weeks, the base 
2.19 	period shall be is the first four of the last six completed calendar quarters prior to before
2.20 	the effective date of the benefit account application for unemployment benefits;
2.21 	(ii) if an applicant was compensated for a loss of work of 14 to 26 weeks, the base 
2.22 	period shall be is the first four of the last seven completed calendar quarters prior to before
2.23 	the effective date of the benefit account application for unemployment benefits;
2.24 	(iii) if an applicant was compensated for a loss of work of 27 to 39 weeks, the base 
2.25 	period shall be is the first four of the last eight completed calendar quarters prior to before
2.26 	the effective date of the benefit account application for unemployment benefits; and
2.27 	(iv) if an applicant was compensated for a loss of work of 40 to 52 weeks, the base 
2.28 	period shall be is the first four of the last nine completed calendar quarters prior to before
2.29 	the effective date of the benefit account application for unemployment benefits;
2.30 	(3) if the applicant qualifies for a base period under clause (2), but has insufficient 
2.31 	wage credits to establish a benefit account, the applicant may request a  under clause (1), 
2.32 	an alternate base period of the last four completed calendar quarters prior to before the 
2.33 	date the applicant's benefit account application for unemployment benefits is effective will 
2.34 	be used. This base period may can be used only once during any five-calendar-year period
2.35 	30 calendar days or more after the end of the last completed quarter, when a wage detail 
2.36 	report has been, or should have been, filed for that quarter under section 268.044; and
2.37 	(4) no base period under clause (1), (2), or (3) shall may include wage credits upon 
2.38 	which a prior benefit account was established.

3.1 	EFFECTIVE DATE. This section applies to applications for unemployment 
3.2 	benefits filed effective on or after September 30, 2007.

3.3 	Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 17, is amended to read:
3.4 		Subd. 17.Filing; filed. "Filing" or "filed" means the delivery of any document to 
3.5 	the commissioner or any of the commissioner's agents, or the depositing of the document 
3.6 	in the United States mail properly addressed to the department with postage prepaid, 
3.7 	in which case the document shall be is considered filed on the day indicated by the 
3.8 	cancellation mark of the United States Postal Service.
3.9 	If, where allowed, an application, protest, appeal, or other required action is made 
3.10 	by electronic transmission, it shall be is considered filed on the day received by the 
3.11 	department.

3.12 	EFFECTIVE DATE. This section is effective September 30, 2007.

3.13 	Sec. 3. Minnesota Statutes 2006, section 268.043, is amended to read:
3.14 	268.043 DETERMINATIONS OF COVERAGE.
3.15 	(a) The commissioner, upon the commissioner's own motion or upon application 
3.16 	of a person, shall determine if that organization or person is an employer or whether 
3.17 	services performed for it constitute employment and covered employment, or whether 
3.18 	the compensation for services constitutes wages, and shall notify the person of the 
3.19 	determination. The determination shall be is final unless the organization or person, within 
3.20 	30 20 calendar days after sending of the determination by mail or electronic transmission, 
3.21 	files a protest. Upon receipt of a protest, the commissioner shall review all available 
3.22 	evidence and determine whether an error has been made. The commissioner shall send 
3.23 	to the person, by mail or electronic transmission, an affirmation or redetermination. The 
3.24 	affirmation or redetermination shall be final unless, within 30 calendar days after sending 
3.25 	of the affirmation or redetermination to the person by mail or electronic transmission, an 
3.26 	appeal is filed. Proceedings on the appeal shall be are conducted in accordance with 
3.27 	section 268.105.
3.28 	(b) No person shall may be initially determined an employer, or that services 
3.29 	performed for it were in employment or covered employment, for periods more than four 
3.30 	years prior to before the year in which the determination is made, unless the commissioner 
3.31 	finds that there was fraudulent action to avoid liability under this chapter.

3.32 	EFFECTIVE DATE. This section applies to determinations issued on or after 
3.33 	September 30, 2007.

4.1 	Sec. 4. Minnesota Statutes 2006, section 268.047, subdivision 2, is amended to read:
4.2 		Subd. 2.Exceptions for all employers. Unemployment benefits paid shall will not 
4.3 	be used in computing the future tax rate of a taxpaying base period employer or charged 
4.4 	to the reimbursable account of a base period nonprofit or government employer that has 
4.5 	elected to be liable for reimbursements when:
4.6 	(1) the applicant was discharged from the employment because of aggravated 
4.7 	employment misconduct as determined under section  268.095. This exception shall apply
4.8 	applies only to unemployment benefits paid for periods after the applicant's discharge 
4.9 	from employment; 
4.10 	(2) an applicant's discharge from that employment occurred because a law required 
4.11 	removal of the applicant from the position the applicant held;
4.12 	(3) the employer is in the tourist or recreation industry and is in active operation of 
4.13 	business less than 15 calendar weeks each year and the applicant's wage credits from the 
4.14 	employer are less than 600 times the applicable state or federal minimum wage;
4.15 	(4) the employer provided regularly scheduled part-time employment to the 
4.16 	applicant during the applicant's base period and continues to provide the applicant with 
4.17 	regularly scheduled part-time employment during the benefit year of at least 90 percent 
4.18 	of the part-time employment provided in the base period, and is an involved employer 
4.19 	because of the applicant's loss of other employment. This exception shall terminate
4.20 	terminates effective the first week that the employer fails to meet the benefit year 
4.21 	employment requirements. This exception shall apply applies to educational institutions 
4.22 	without consideration of the period between academic years or terms;
4.23 	(4) (5) the employer is a fire department or firefighting corporation or operator 
4.24 	of a life-support transportation service, and continues to provide employment for the 
4.25 	applicant as a volunteer firefighter or a volunteer ambulance service personnel during the 
4.26 	benefit year on the same basis that employment was provided in the base period. This 
4.27 	exception shall terminate terminates effective the first week that the employer fails to meet 
4.28 	the benefit year employment requirements;
4.29 	(5) (6) the applicant's unemployment from this employer was a direct result of 
4.30 	the condemnation of property by a governmental agency, a fire, flood, or act of nature, 
4.31 	where 25 percent or more of the employees employed at the affected location, including 
4.32 	the applicant, became unemployed as a result. This exception shall does not apply where 
4.33 	the unemployment was a direct result of the intentional act of the employer or a person 
4.34 	acting on behalf of the employer;
5.1 	(6) (7) the unemployment benefits were paid by another state as a result of the 
5.2 	transferring of wage credits under a combined wage arrangement provided for in section  
5.3 	268.131; 
5.4 	(7) (8) the applicant stopped working because of a labor dispute at the applicant's 
5.5 	primary place of employment if the employer was not a party to the labor dispute;
5.6 	(8) (9) the unemployment benefits were determined overpaid unemployment benefits 
5.7 	under section  268.18; or 
5.8 	(9) (10) the trust fund was reimbursed for the unemployment benefits by the federal 
5.9 	government.

5.10 	EFFECTIVE DATE. This section applies to benefits paid on benefit accounts filed 
5.11 	effective on or after September 30, 2007.

5.12 	Sec. 5. Minnesota Statutes 2006, section 268.047, subdivision 5, is amended to read:
5.13 		Subd. 5.Notice of unemployment benefits paid. (a) The commissioner shall notify 
5.14 	each employer at least quarterly by mail or electronic transmission of the unemployment 
5.15 	benefits paid each applicant that will be used in computing the future tax rate of a 
5.16 	taxpaying employer, or that have been charged to the reimbursable account of a nonprofit 
5.17 	or government employer that has elected to be liable for reimbursements.
5.18 	(b) A notice under this subdivision shall is not be subject to protest or appeal. The 
5.19 	commissioner may at any time upon the commissioner's own motion correct any error that 
5.20 	resulted in an incorrect notice under paragraph (a) and issue a corrected notice.

5.21 	EFFECTIVE DATE. This section is effective September 30, 2007.

5.22 	Sec. 6. Minnesota Statutes 2006, section 268.051, subdivision 1, is amended to read:
5.23 		Subdivision 1.Payments. (a) Unemployment insurance taxes and any additional 
5.24 	assessments, fees, or surcharges shall accrue and become payable by each employer for 
5.25 	each calendar year on the taxable wages that the employer paid to employees in covered 
5.26 	employment, except for:
5.27 	(1) nonprofit organizations that elect to make reimbursements as provided in section 
5.28 	268.053; and
5.29 	(2) the state of Minnesota and political subdivisions that make reimbursements, 
5.30 	unless they elect to pay taxes as provided in section 268.052.
5.31 	Except as allowed under section 268.0511, Each employer shall must pay taxes 
5.32 	quarterly, at the employer's assigned tax rate under subdivision 6, on the taxable wages 
5.33 	paid to each employee. The commissioner shall compute the tax due from the wage 
6.1 	detail report required under section 268.044 and notify the employer of the tax due. The 
6.2 	taxes and any additional special assessments, fees, or surcharges shall must be paid to the 
6.3 	trust fund and must be received by the department on or before the last day of the month 
6.4 	following the end of the calendar quarter.
6.5 	(b) The tax amount computed, if not a whole dollar, shall be is rounded down to the 
6.6 	next lower whole dollar.
6.7 	(c) If for any reason the wages on the wage detail report under section 268.044 are 
6.8 	adjusted for any quarter, the commissioner shall recompute the taxes due for that quarter 
6.9 	and assess the employer for any amount due or credit the employer as appropriate.

6.10 	EFFECTIVE DATE. This section is effective January 1, 2008.

6.11 	Sec. 7. Minnesota Statutes 2006, section 268.051, subdivision 5, is amended to read:
6.12 		Subd. 5.Tax rate for new employers. (a) Each new taxpaying employer that does 
6.13 	not qualify for an experience rating under subdivision 3, except new employers in a high 
6.14 	experience rating industry, shall must be assigned, for a calendar year, a tax rate the higher 
6.15 	of (1) one percent, or (2) the tax rate computed, to the nearest one-hundredth of a percent, 
6.16 	by dividing the total amount of unemployment benefits paid all applicants during the 48 
6.17 	calendar months ending on June 30 of the prior calendar year by the total taxable wages of 
6.18 	all taxpaying employers during the same period, plus the applicable base tax rate and any 
6.19 	additional assessments under subdivision 2, paragraph (d).
6.20 	(b) Each new taxpaying employer in a high experience rating industry that does not 
6.21 	qualify for an experience rating under subdivision 3, shall must be assigned, for a calendar 
6.22 	year, a tax rate of  8.00 percent, plus the applicable base tax rate and any additional 
6.23 	assessments under subdivision 2, paragraph (d). 
6.24 	An employer is considered to be in a high experience rating industry if:
6.25 	(1) the employer is engaged in residential, commercial, or industrial construction, 
6.26 	including general contractors;
6.27 	(2) the employer is engaged in sand, gravel, or limestone mining;
6.28 	(3) the employer is engaged in the manufacturing of concrete, concrete products, 
6.29 	or asphalt; or
6.30 	(4) the employer is engaged in road building, repair, or resurfacing, including bridge 
6.31 	and tunnels and residential and commercial driveways and parking lots.
6.32 	(c) The commissioner shall send to the new employer, by mail or electronic 
6.33 	transmission, notice of the tax rate assigned. An employer may protest appeal the 
6.34 	assignment of a tax rate in accordance with the procedures in subdivision 6, paragraph (c).

7.1 	EFFECTIVE DATE. This section applies to tax rate notices issued on or after 
7.2 	September 30, 2007.

7.3 	Sec. 8. Minnesota Statutes 2006, section 268.051, subdivision 6, is amended to read:
7.4 		Subd. 6.Notice of tax rate. (a) On or before each December 15, the commissioner 
7.5 	shall notify each employer by mail or electronic transmission of the employer's tax rate, 
7.6 	along with any additional assessments, fees, or surcharges, for the following calendar 
7.7 	year. The notice shall must contain the base tax rate and the factors used in determining 
7.8 	the employer's experience rating. Unless a protest an appeal of the tax rate is made, 
7.9 	the computed tax rate shall be is final, except for fraud or recomputation required 
7.10 	under subdivision 4 or 4a, and shall be is the rate at which taxes shall must be paid. A 
7.11 	recomputed tax rate under subdivision 4 or 4a shall be is the rate applicable for the quarter 
7.12 	that includes the date of acquisition and any quarter thereafter during the calendar year in 
7.13 	which the acquisition occurred. The tax rate shall is not be subject to collateral attack by 
7.14 	way of claim for a credit adjustment or refund, or otherwise.
7.15 	(b) If the legislature, subsequent to after the sending of the tax rate, changes any of 
7.16 	the factors used to determine the rate, a new tax rate based on the new factors shall must
7.17 	be computed and sent to the employer.
7.18 	(c) A review of an employer's tax rate may be obtained by the employer filing a 
7.19 	protest an appeal within 30 20 calendar days from the date the tax rate notice was sent 
7.20 	to the employer. Upon receipt of the protest, the commissioner shall review the tax rate 
7.21 	to determine whether or not there has been any error in computation or assignment of 
7.22 	the tax rate. The commissioner shall either affirm or make a redetermination of the 
7.23 	rate and a notice of the affirmation or redetermination shall be sent to the employer by 
7.24 	mail or electronic transmission. The affirmation or redetermination shall be final unless 
7.25 	the employer files an appeal within 30 calendar days after the date the affirmation or 
7.26 	redetermination was sent. Proceedings on the appeal shall be are conducted in accordance 
7.27 	with section 268.105.
7.28 	(d) The commissioner may at any time upon the commissioner's own motion correct 
7.29 	any error in the computation or the assignment of an employer's tax rate.

7.30 	EFFECTIVE DATE. This section is effective for determinations issued on or 
7.31 	after September 30, 2007. 

7.32 	Sec. 9. Minnesota Statutes 2006, section 268.053, subdivision 2, is amended to read:
7.33 		Subd. 2.Determination, protest, and appeal. The commissioner shall notify each 
7.34 	nonprofit organization by mail or electronic transmission of any determination of its 
8.1 	status as an employer with covered employment and of the effective date of any election 
8.2 	or termination of election. The determinations shall be final unless a protest is filed 
8.3 	within 30 calendar days after sending of the determination. Upon receipt of a protest, the 
8.4 	commissioner shall review all available evidence and determine whether an error has been 
8.5 	made. The commissioner shall send to the nonprofit organization, by mail or electronic 
8.6 	transmission, an affirmation or redetermination. The affirmation or redetermination shall 
8.7 	be determination is final unless an appeal is filed within 30 20 calendar days of sending 
8.8 	the affirmation or redetermination determination. Proceedings on the appeal shall be are
8.9 	conducted in accordance with section  268.105. 

8.10 	EFFECTIVE DATE. This section is effective for determinations issued on or 
8.11 	after September 30, 2007.

8.12 	Sec. 10. Minnesota Statutes 2006, section 268.057, subdivision 7, is amended to read:
8.13 		Subd. 7.Credit adjustments, refunds. (a) If an employer makes an application 
8.14 	for a credit adjustment of any amount paid under this chapter or section 116L.20 within 
8.15 	four years of the date that the payment was due, in a manner and format prescribed by 
8.16 	the commissioner, and the commissioner determines that the payment or any portion was 
8.17 	erroneous, the commissioner shall make an adjustment and issue a credit without interest. 
8.18 	If a credit cannot be used, the commissioner shall refund, without interest, the amount 
8.19 	erroneously paid. The commissioner, on the commissioner's own motion, may make a 
8.20 	credit adjustment or refund under this subdivision.
8.21 	Any refund returned to the commissioner shall be is considered unclaimed property 
8.22 	under chapter 345.
8.23 	(b) If a credit adjustment or refund is denied in whole or in part, a notice of denial 
8.24 	shall must be sent to the employer by mail or electronic transmission. Within 30 calendar 
8.25 	days after sending of The notice of denial, the employer may protest.
8.26 	Upon receipt of a timely protest, the commissioner shall review the denial and 
8.27 	either affirm the denial or redetermine the credit adjustment or refund. The affirmation of 
8.28 	denial or redetermination of the credit adjustment or refund, sent by mail or electronic 
8.29 	transmission, shall be is final unless an employer files an appeal within 30 20 calendar 
8.30 	days after sending. Proceedings on the appeal shall be are conducted in accordance with 
8.31 	section 268.105.

8.32 	EFFECTIVE DATE. This section is effective for all denials issued on or after 
8.33 	September 30, 2007.

9.1 	Sec. 11. Minnesota Statutes 2006, section 268.063, is amended to read:
9.2 	268.063 PERSONAL LIABILITY.
9.3 	(a) Any officer, director, or employee of a corporation or any manager, governor, 
9.4 	member, or employee of a limited liability company who
9.5 	(1) either individually or jointly with others, have or should have had control 
9.6 	of, supervision over, or responsibility for paying the amounts due under this chapter 
9.7 	or section  116L.20, and 
9.8 	(2) knowingly fails to pay the amounts due, shall be is personally liable for the 
9.9 	amount due in the event the employer does not pay.
9.10 	For purposes of this section, "knowingly" means that the facts demonstrate that the 
9.11 	responsible individual used or allowed the use of corporate or company assets to pay other 
9.12 	creditors knowing that the amounts due under this chapter were unpaid. An evil motive or 
9.13 	intent to defraud is not necessary.
9.14 	(b) Any partner of a limited liability partnership, or professional limited liability 
9.15 	partnership, shall be is jointly and severally liable for any amount due under this chapter 
9.16 	or section  116L.20 in the event the employer does not pay. 
9.17 	(c) Any personal representative of the estate of a decedent or fiduciary who 
9.18 	voluntarily distributes the assets without reserving a sufficient amount to pay the amount 
9.19 	due shall be is personally liable for the deficiency.
9.20 	(d) The personal liability of any individual shall survive survives dissolution, 
9.21 	reorganization, receivership, or assignment for the benefit of creditors. For the purposes 
9.22 	of this section, all wages paid by the employer shall be are considered earned from the 
9.23 	individual determined to be personally liable.
9.24 	(e) The commissioner shall make a determination as to personal liability. The 
9.25 	determination shall be is final unless the individual found to be personally liable, 
9.26 	within 30 20 calendar days after sending, by mail or electronic transmission, a notice 
9.27 	of determination, files a protest. Upon receipt of the protest, the commissioner shall 
9.28 	reexamine the personal liability determination and either affirm or redetermine the 
9.29 	assessment of personal liability and a notice of the affirmation or redetermination 
9.30 	shall be sent to the individual by mail or electronic transmission. The affirmation or 
9.31 	redetermination shall become final unless an appeal is filed within 30 calendar days after 
9.32 	the date of sending. Proceedings on the appeal shall be are conducted in accordance 
9.33 	with section  268.105. 

9.34 	EFFECTIVE DATE. This section is effective for determinations issued on or 
9.35 	after September 30, 2007.

10.1 	Sec. 12. Minnesota Statutes 2006, section 268.07, subdivision 2, is amended to read:
10.2 		Subd. 2.Benefit account requirements and weekly unemployment benefit 
10.3 	amount and maximum amount of unemployment benefits. (a) To establish a benefit 
10.4 	account, an applicant must have:
10.5 	(1) high quarter wage credits of at least $1,000 or more; and
10.6 	(2) wage credits, in other than the high quarter, of at least $250 or more.
10.7 	(b) If an applicant has established a benefit account, the weekly unemployment 
10.8 	benefit amount available during the benefit year shall be is the higher of:
10.9 	(1) 50 percent of the applicant's average weekly wage during the base period, to a 
10.10 	maximum of 66-2/3 percent of the state's average weekly wage; or
10.11 	(2) 50 percent of the applicant's average weekly wage during the high quarter, to a 
10.12 	maximum of 45 43 percent of the state's average weekly wage.
10.13 	The applicant's average weekly wage under clause (1) shall be is computed by 
10.14 	dividing the total wage credits by 52. The applicant's average weekly wage under clause 
10.15 	(2) shall be is computed by dividing the high quarter wage credits by 13.
10.16 	(c) The state's maximum weekly unemployment benefit amount and an applicant's 
10.17 	weekly unemployment benefit amount and maximum amount of unemployment benefits 
10.18 	available shall be is rounded down to the next lower whole dollar. The state's maximum 
10.19 	weekly benefit amount, computed in accordance with section  268.035, subdivision 23, 
10.20 	shall apply applies to a benefit account established effective on or after the first last
10.21 	Sunday in August October. Once established, an applicant's weekly unemployment benefit 
10.22 	amount shall is not be affected by the first last Sunday in August October change in the 
10.23 	state's maximum weekly unemployment benefit amount. 
10.24 	(d) The maximum amount of unemployment benefits available on any benefit 
10.25 	account shall be is the lower of:
10.26 	(1) 33-1/3 percent of the applicant's total wage credits; or
10.27 	(2) 26 times the applicant's weekly unemployment benefit amount.

10.28 	EFFECTIVE DATE. This section is effective December 1, 2007.

10.29 	Sec. 13. Minnesota Statutes 2006, section 268.085, subdivision 2, is amended to read:
10.30 		Subd. 2.Not eligible. An applicant shall not be eligible to receive is ineligible for
10.31 	unemployment benefits for any week:
10.32 	(1) that occurs before the effective date of a benefit account;
10.33 	(2) that the applicant, at the beginning of the week, has an outstanding fraud 
10.34 	overpayment balance under section 268.18, subdivision 2, including any penalties and 
10.35 	interest;
11.1 	(3) that occurs in a period when the applicant is a student in attendance at, or on 
11.2 	vacation from a secondary school including the period between academic years or terms;
11.3 	(3) (4) that the applicant is incarcerated or performing court ordered community 
11.4 	service. The applicant's weekly unemployment benefit amount shall be is reduced by 
11.5 	one-fifth for each day the applicant is incarcerated or performing court ordered community 
11.6 	service. If the computation of the reduced unemployment benefits is not a whole dollar, it 
11.7 	shall be is rounded down to the next lower whole dollar;
11.8 	(4) (5) that the applicant fails or refuses to provide information on an issue of 
11.9 	eligibility ineligibility required under section 268.101or an issue of disqualification 
11.10 	required under section 268.101;
11.11 	(5) (6) that the applicant is performing services 32 hours or more, in employment, 
11.12 	covered employment, noncovered employment, volunteer work, or self-employment 
11.13 	regardless of the amount of any earnings; or
11.14 	(6) (7) with respect to which the applicant is receiving, has received, or has filed 
11.15 	an application for unemployment benefits under any federal law or the law of any other 
11.16 	state. If the appropriate agency finally determines that the applicant is not entitled to the 
11.17 	unemployment benefits, this clause shall does not apply.

11.18 	EFFECTIVE DATE. This section is effective and applies to all outstanding fraud 
11.19 	overpayment balances, including penalty and interest, as of September 30, 2007.

11.20 	Sec. 14. Minnesota Statutes 2006, section 268.085, subdivision 3, is amended to read:
11.21 		Subd. 3.Payments that delay unemployment benefits. (a) An applicant shall is
11.22 	not be eligible to receive unemployment benefits for any week with respect to which the 
11.23 	applicant is receiving, has received, or has filed for payment, equal to or in excess of the 
11.24 	applicant's weekly unemployment benefit amount, in the form of:
11.25 	(1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause 
11.26 	shall does not apply to vacation pay paid upon a permanent separation from employment;
11.27 	(2) severance pay, bonus pay, sick pay, and any other money payments, except 
11.28 	earnings under subdivision 5, and back pay under subdivision 6, paid by an employer 
11.29 	because of, upon, or after separation from employment, but only if the money payment is 
11.30 	considered wages at the time of payment under section 268.035, subdivision 29, or United 
11.31 	States Code, title 26, section 3121, clause (2), of the Federal Insurance Contribution Act; or
11.32 	(3) pension, retirement, or annuity payments from any plan contributed to by a base 
11.33 	period employer including the United States government, except Social Security benefits 
11.34 	which that are provided for in subdivision 4. The base period employer is considered to 
11.35 	have contributed to the plan if the contribution is excluded from the definition of wages 
12.1 	under section 268.035, subdivision 29, clause (1), or United States Code, title 26, section 
12.2 	3121, clause (2), of the Federal Insurance Contribution Act.
12.3 	An applicant shall is not be considered to have received the lump sum payment if the 
12.4 	applicant immediately deposits that payment in a qualified pension plan or account; or.
12.5 	(4) holiday pay.
12.6 	(b) This subdivision shall apply applies to all the weeks of payment and shall be. 
12.7 	Payments under paragraph (a), clauses (1) and (2), are applied to the period immediately 
12.8 	following the last day of employment.and the number of weeks of payment shall be, for 
12.9 	purposes of those clauses, is determined as follows:
12.10 	(1) if the payments are made periodically, the total of the payments to be received 
12.11 	shall be is divided by the applicant's last level of regular weekly pay from the employer; or
12.12 	(2) if the payment is made in a lump sum, that sum shall be is divided by the 
12.13 	applicant's last level of regular weekly pay from the employer.
12.14 	(c) If the payment is less than the applicant's weekly unemployment benefit 
12.15 	amount, unemployment benefits shall be are reduced by the amount of the payment. If 
12.16 	the computation of reduced unemployment benefits is not a whole dollar, it shall be is
12.17 	rounded down to the next lower whole dollar.

12.18 	EFFECTIVE DATE. This section is effective for unemployment benefits paid on 
12.19 	or after September 30, 2007, regardless of when the continued request was filed or the 
12.20 	week for which the unemployment benefits are paid.

12.21 	Sec. 15. Minnesota Statutes 2006, section 268.095, subdivision 1, is amended to read:
12.22 		Subdivision 1.Quit. An applicant who quit employment shall be disqualified from
12.23 	is ineligible for all unemployment benefits according to subdivision 10 except when:
12.24 	(1) the applicant quit the employment because of a good reason caused by the 
12.25 	employer as defined in subdivision 3;
12.26 	(2) the applicant quit the employment to accept other covered employment that 
12.27 	provided substantially better terms and conditions of employment, but the applicant did 
12.28 	not work long enough at the second employment to have sufficient subsequent earnings to 
12.29 	satisfy the disqualification period of ineligibility that would otherwise be imposed under 
12.30 	subdivision 10 for quitting the first employment;
12.31 	(3) the applicant quit the employment within 30 calendar days of beginning the 
12.32 	employment because the employment was unsuitable for the applicant;
12.33 	(4) the employment was unsuitable for the applicant and the applicant quit to enter 
12.34 	reemployment assistance training;
13.1 	(5) the employment was part time and the applicant also had full-time employment 
13.2 	in the base period, from which full-time employment the applicant separated because 
13.3 	of nondisqualifying reasons for which the applicant was held not to be ineligible, and 
13.4 	the wage credits from the full-time employment are sufficient to meet the minimum 
13.5 	requirements to establish a benefit account under section 268.07;
13.6 	(6) the applicant quit because the employer notified the applicant that the applicant 
13.7 	was going to be laid off due to because of lack of work within 30 calendar days. An 
13.8 	applicant who quit employment within 30 calendar days of a notified date of layoff due to
13.9 	because of lack of work shall be disqualified from is ineligible for unemployment benefits 
13.10 	through the end of the week that includes the scheduled date of layoff;
13.11 	(7) the applicant quit the employment because the applicant's serious illness or 
13.12 	injury made it medically necessary that the applicant quit, provided that the applicant 
13.13 	inform the employer of the serious illness or injury and request accommodation and no 
13.14 	reasonable accommodation is made available.
13.15 	If the applicant's serious illness is chemical dependency, this exception shall does
13.16 	not apply if the applicant was previously diagnosed as chemically dependent or had 
13.17 	treatment for chemical dependency, and since that diagnosis or treatment has failed to 
13.18 	make consistent efforts to control the chemical dependency; or.
13.19 	This exception raises an issue of the applicant's being able to work under section 
13.20 	268.085, subdivision 1, that the commissioner shall determine;
13.21 	(8) the applicant's loss of child care for the applicant's minor child caused the 
13.22 	applicant to quit the employment, provided the applicant made reasonable effort to obtain 
13.23 	other child care and requested time off or other accommodation from the employer and no 
13.24 	reasonable accommodation is available.
13.25 	This exception raises an issue of the applicant's availability for suitable employment 
13.26 	under section 268.085, subdivision 1, that the commissioner shall determine; or
13.27 	(9) domestic abuse of the applicant or the applicant's minor child, necessitated 
13.28 	the applicant's quitting the employment. Domestic abuse shall must be shown by one 
13.29 	or more of the following:
13.30 	(i) a district court order for protection or other documentation of equitable relief 
13.31 	issued by a court;
13.32 	(ii) a police record documenting the domestic abuse;
13.33 	(iii) documentation that the perpetrator of the domestic abuse has been convicted 
13.34 	of the offense of domestic abuse;
13.35 	(iv) medical documentation of domestic abuse; or
14.1 	(v) written statement that the applicant or the applicant's minor child is a victim 
14.2 	of domestic abuse, provided by a social worker, member of the clergy, shelter worker, 
14.3 	attorney at law, or other professional who has assisted the applicant in dealing with the 
14.4 	domestic abuse.
14.5 	Domestic abuse for purposes of this clause shall be is defined under section 518B.01.

14.6 	EFFECTIVE DATE. This section is effective and applies to all determinations and 
14.7 	decisions issued on or after September 30, 2007.

14.8 	Sec. 16. Minnesota Statutes 2006, section 268.095, subdivision 6, is amended to read:
14.9 		Subd. 6.Employment misconduct defined. (a) Employment misconduct means 
14.10 	any intentional, negligent, or indifferent conduct, on the job or off the job (1) that displays 
14.11 	clearly a serious violation of the standards of behavior the employer has the right to 
14.12 	reasonably expect of the employee, or (2) that displays clearly a substantial lack of 
14.13 	concern for the employment.
14.14 	Inefficiency, inadvertence, simple unsatisfactory conduct, a single incident that does 
14.15 	not have a significant adverse impact on the employer, conduct an average reasonable 
14.16 	employee would have engaged in under the circumstances, poor performance because of 
14.17 	inability or incapacity, good faith errors in judgment if judgment was required, or absence 
14.18 	because of illness or injury with proper notice to the employer, are not employment 
14.19 	misconduct.
14.20 	(b) Conduct that was a direct result of the applicant's chemical dependency is not 
14.21 	employment misconduct unless the applicant was previously diagnosed chemically 
14.22 	dependent or had treatment for chemical dependency, and since that diagnosis or treatment 
14.23 	has failed to make consistent efforts to control the chemical dependency.
14.24 	(c) Conduct that was a result of the applicant, or the applicant's minor child, 
14.25 	being a victim of domestic abuse as defined under section  518B.01, is not employment 
14.26 	misconduct. Domestic abuse shall must be shown as provided for in section  268.095, 
14.27 	subdivision 1, clause (8) (9). 
14.28 	(d) A driving offense in violation of sections  169A.20,  169A.31, or  169A.50
14.29 	to  169A.53 that interferes with or adversely affects the employment is employment 
14.30 	misconduct. 
14.31 	(e) The definition of employment misconduct provided by this subdivision shall be
14.32 	is exclusive and no other definition shall apply applies.

14.33 	EFFECTIVE DATE. This section is effective and applies to all determinations and 
14.34 	decisions issued on or after September 30, 2007.

15.1 	Sec. 17. Minnesota Statutes 2006, section 268.105, subdivision 1, is amended to read:
15.2 		Subdivision 1.Evidentiary hearing by an unemployment law judge. (a) Upon 
15.3 	a timely appeal having been filed, the department shall must send, by mail or electronic 
15.4 	transmission, a notice of appeal to all involved parties that an appeal has been filed, that 
15.5 	a de novo due process evidentiary hearing will be scheduled, and that the parties have 
15.6 	certain rights and responsibilities regarding the hearing. The department shall must set a 
15.7 	time and place for a de novo due process evidentiary hearing and send notice to any 
15.8 	involved applicant and any involved employer, by mail or electronic transmission, not less 
15.9 	than ten calendar days prior to before the date of the hearing.
15.10 	(b) The evidentiary hearing shall be is conducted by an unemployment law judge 
15.11 	without regard to any common law burden of proof as an evidence gathering inquiry and 
15.12 	not an adversarial proceeding. The unemployment law judge shall must ensure that all 
15.13 	relevant facts are clearly and fully developed. The department shall may adopt rules on 
15.14 	evidentiary hearings. The rules need not conform to common law or statutory rules of 
15.15 	evidence and other technical rules of procedure. The department shall have has discretion 
15.16 	regarding the method by which the evidentiary hearing is conducted. A report of any 
15.17 	employee of the department, except a determination, made in the regular course of the 
15.18 	employee's duties, shall be is competent evidence of the facts contained in it.
15.19 	(c) After the conclusion of the hearing, upon the evidence obtained, the 
15.20 	unemployment law judge shall must make findings of fact and decision and send those, 
15.21 	by mail or electronic transmission, to all involved parties. When the credibility of an 
15.22 	involved party or witness testifying in an evidentiary hearing has a significant effect on the 
15.23 	outcome of a decision, the unemployment law judge must set out the reason for crediting 
15.24 	or discrediting that testimony. The unemployment law judge's decision is final unless a 
15.25 	request for reconsideration is filed pursuant to under subdivision 2.
15.26 	(d) Regardless of paragraph (c), if the appealing party fails to participate in the 
15.27 	evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal 
15.28 	by summary order. By failing to participate, the appealing party is considered to have 
15.29 	failed to exhaust available administrative remedies unless the appealing party files a 
15.30 	request for reconsideration under subdivision 2 and establishes good cause for failing to 
15.31 	participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission 
15.32 	of a written statement does not constitute participation. The applicant must participate 
15.33 	personally and appearance solely by a representative does not constitute participation.
15.34 	(e) Only employees of the department who are attorneys shall licensed to practice 
15.35 	law in Minnesota may serve as unemployment law judges. The commissioner may transfer 
16.1 	to another unemployment law judge any proceedings pending before an unemployment 
16.2 	law judge.

16.3 	EFFECTIVE DATE. This section applies to evidentiary hearings conducted on or 
16.4 	after 30 days following the date of final enactment.

16.5 	Sec. 18. Minnesota Statutes 2006, section 268.18, subdivision 2, is amended to read:
16.6 		Subd. 2.Overpayment due tobecause of fraud. (a) Any applicant who receives 
16.7 	unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose 
16.8 	any material fact, or who makes a false statement or representation without a good faith 
16.9 	belief as to the correctness of the statement or representation, has committed fraud. After 
16.10 	the discovery of facts indicating fraud, the commissioner shall make a determination 
16.11 	that the applicant obtained unemployment benefits by fraud and that the applicant must 
16.12 	promptly repay the unemployment benefits to the trust fund. In addition, the commissioner 
16.13 	shall assess a penalty equal to 25 percent of the amount fraudulently obtained. If the 
16.14 	applicant had a prior overpayment due to fraud, the commissioner shall, on the present 
16.15 	overpayment, assess a penalty equal to 50 40 percent of the amount fraudulently obtained. 
16.16 	This penalty is in addition to penalties under section 268.182.
16.17 	(b) Unless the applicant files an appeal within 30 20 calendar days after the sending 
16.18 	of the determination of overpayment by fraud to the applicant by mail or electronic 
16.19 	transmission, the determination shall become is final. Proceedings on the appeal shall be
16.20 	are conducted in accordance with section 268.105.
16.21 	(c) If the applicant fails to repay the unemployment benefits, penalty, and interest 
16.22 	assessed, the commissioner shall offset from future unemployment benefits otherwise 
16.23 	payable the total amount due. The total due may also be collected by the same methods 
16.24 	as delinquent payments from an employer. A determination of overpayment by fraud 
16.25 	shall must state the methods of collection the commissioner may use to recover the 
16.26 	overpayment. Money received in repayment of fraudulently obtained unemployment 
16.27 	benefits, penalties, and interest shall is first be applied to the unemployment benefits 
16.28 	overpaid, then to the penalty amount due, then to any interest due. 62.5 percent of the 
16.29 	payments made toward the penalty shall be are credited to the contingent account and 
16.30 	37.5 percent credited to the administration account for deterring, detecting, or collecting 
16.31 	overpayments.
16.32 	(d) If an applicant has been overpaid unemployment benefits under the law of 
16.33 	another state because of fraud and that state certifies that the applicant is liable to repay 
16.34 	the unemployment benefits and requests the commissioner to recover the overpayment, 
17.1 	the commissioner may offset from future unemployment benefits otherwise payable the 
17.2 	amount of overpayment.
17.3 	(e) Unemployment benefits paid for weeks more than four years prior to before the 
17.4 	date of a determination of overpayment by fraud issued under this subdivision shall are
17.5 	not be considered overpaid unemployment benefits.

17.6 	EFFECTIVE DATE. This section is effective for all determinations of overpayment 
17.7 	by fraud issued on or after September 30, 2007.

17.8 	Sec. 19. Minnesota Statutes 2006, section 268.194, subdivision 1, is amended to read:
17.9 		Subdivision 1.Establishment. There is hereby established as a special state 
17.10 	trust fund, separate and apart from all other public money or funds of this state, an 
17.11 	unemployment insurance trust fund, that shall be is administered by the commissioner 
17.12 	exclusively for the payment of unemployment benefits. This trust fund shall consist
17.13 	consists of:
17.14 	(1) all taxes collected;
17.15 	(2) interest earned upon any money in the trust fund;
17.16 	(3) reimbursements paid by nonprofit organizations and the state and political 
17.17 	subdivisions;
17.18 	(4) voluntary tax rate buydown payments under section  268.051, subdivision 7; 
17.19 	(5) any money received as a loan from the federal unemployment trust fund in 
17.20 	accordance with United States Code, title 42, section 1321, of the Social Security Act;
17.21 	(6) any other money received pursuant to under a reciprocal unemployment benefit 
17.22 	arrangement with the federal government or any other state;
17.23 	(7) all money recovered on overpaid unemployment benefits except, if allowed by 
17.24 	federal law, five percent of any recovered amount is credited to the administration account;
17.25 	(8) all money recovered on losses sustained by the trust fund;
17.26 	(9) all money received from the contingent account under section  268.196, 
17.27 	subdivision 3; 
17.28 	(10) all money credited to the account of Minnesota in the federal unemployment 
17.29 	trust fund pursuant to under United States Code, title 42, section 1103, of the Social 
17.30 	Security Act, also known as the Reed Act; and
17.31 	(11) all money received for the trust fund from any other source.

17.32 	EFFECTIVE DATE. This section is effective September 30, 2007.

17.33 	Sec. 20. Minnesota Statutes 2006, section 268.196, subdivision 1, is amended to read:
18.1 		Subdivision 1.Administration account. (a) There is hereby created in the state 
18.2 	treasury a special account to be known as the administration account. All money that is 
18.3 	deposited or paid into this account shall be is continuously available to the commissioner 
18.4 	for expenditure to administer the Minnesota unemployment insurance program, and shall
18.5 	does not lapse at any time. The administration account shall consist consists of:
18.6 	(1) all money received from the federal government to administer the Minnesota 
18.7 	unemployment insurance program;
18.8 	(2) five percent of any money recovered on overpaid unemployment benefits as 
18.9 	provided for in section 268.194, subdivision 1, clause (7), which must be used for 
18.10 	deterring, detecting, and collecting overpaid unemployment benefits;
18.11 	(3) any money received as compensation for services or facilities supplied to the 
18.12 	federal government or any other state;
18.13 	(3) (4) any amounts received for losses sustained by this account or by reason of 
18.14 	damage to equipment or supplies; and
18.15 	(4) (5) any proceeds from the sale or disposition of any equipment or supplies that 
18.16 	may no longer be necessary for the proper administration of those sections.
18.17 	(b) All money in this account shall must be deposited, administered, and disbursed 
18.18 	in the same manner and under the same conditions and requirements as are provided by 
18.19 	law for the other special accounts in the state treasury. The commissioner of finance, as 
18.20 	treasurer and custodian of this account, shall be is liable for the faithful performance 
18.21 	of duties in connection with this account.
18.22 	(c) All money in this account shall must be spent solely for the purposes and in the 
18.23 	amounts found necessary by the United States Secretary of Labor for the proper and 
18.24 	efficient administration of the Minnesota unemployment insurance program.

18.25 	EFFECTIVE DATE. This section is effective September 30, 2007.

18.26 	Sec. 21. MAXIMUM WEEKLY BENEFIT AMOUNT.
 18.27 	Notwithstanding Minnesota Statutes, section 268.07, subdivision 2, paragraph (b), 
18.28 	clause (2), the maximum amount of weekly unemployment benefits available based upon 
18.29 	the high quarter calculation is $351.

18.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
18.31 	and sunsets November 1, 2008.

18.32 	Sec. 22.  REPEALER.
 19.1 	(a) Minnesota Statutes 2006, sections 268.0435; and 268.0511, are repealed effective 
19.2 	January 1, 2008.
19.3 	(b) Minnesota Statutes 2006, sections 268.085, subdivision 10; and 268.103, 
19.4 	subdivision 4, are repealed effective September 30, 2007.

19.5 	ARTICLE 2
19.6 	POLICY AND TECHNICAL CHANGES

19.7 	Section 1. Minnesota Statutes 2006, section 268.035, subdivision 23, is amended to 
19.8 	read:
19.9 		Subd. 23.State's average annual and average weekly wage. (a) On or before 
19.10 	June 30 of each year, the commissioner shall calculate the state's average annual wage and 
19.11 	the state's average weekly wage in the following manner:
19.12 	(1) The sum of the total monthly covered employment reported by all employers 
19.13 	for the prior calendar year shall be is divided by 12 to calculate the average monthly 
19.14 	covered employment.
19.15 	(2) The sum of the total wages paid for all covered employment reported by all 
19.16 	employers for the prior calendar year shall be is divided by the average monthly covered 
19.17 	employment to calculate the state's average annual wage.
19.18 	(3) The state's average annual wage shall be is divided by 52 to calculate the state's 
19.19 	average weekly wage.
19.20 	(b) For purposes of calculating the amount of taxable wages, the state's average 
19.21 	annual wage shall apply applies to the calendar year following the calculation.
19.22 	(c) For purposes of calculating the state's maximum weekly unemployment benefit 
19.23 	amount available on any benefit account under section    268.07, subdivision 2, the state's 
19.24 	average weekly wage shall apply applies to the one-year period beginning the first last
19.25 	Sunday in August October of the calendar year of the calculation. 

19.26 	EFFECTIVE DATE. This section is effective September 30, 2007.

19.27 	Sec. 2. Minnesota Statutes 2006, section 268.051, subdivision 1a, is amended to read:
19.28 		Subd. 1a.Payments by electronic payment required. (a) Every employer that 
19.29 	reports 500 50 or more employees in any calendar quarter on the wage detail report 
19.30 	required under section  268.044shall must make any payments due under this chapter and 
19.31 	section  116L.20 by electronic payment. 
20.1 	(b) All third-party processors, paying quarterly taxes on behalf of a client company, 
20.2 	shall must make any payments due under this chapter and section  116L.20 by electronic 
20.3 	payment. 
20.4 	(c) Regardless of paragraph (a) or (b), the commissioner shall have has the discretion 
20.5 	to accept payment by other means.

20.6 	EFFECTIVE DATE. This section is effective January 1, 2008.

20.7 	Sec. 3. Minnesota Statutes 2006, section 268.0625, subdivision 4, is amended to read:
20.8 		Subd. 4.Notice and right to hearing. At least 30 calendar days before the 
20.9 	commissioner notifies a licensing authority, a notice of action under this section shall must
20.10 	be sent to the licensee by mail or electronic transmission. If the licensee disputes the 
20.11 	action, the licensee must appeal within 30 20 calendar days after the sending of the notice 
20.12 	to the licensee. The only issue on any appeal is whether the commissioner has complied 
20.13 	with the requirements of this section. Proceedings on the appeal shall be are conducted in 
20.14 	accordance with section  268.105. 

20.15 	EFFECTIVE DATE. This section is effective for notices sent on or after September 
20.16 	30, 2007.

20.17 	Sec. 4. Minnesota Statutes 2006, section 268.065, subdivision 3, is amended to read:
20.18 		Subd. 3.Determination of liability. The commissioner shall make a determination 
20.19 	as to the liability under this section. The determination shall be is final unless the 
20.20 	contractor or person found to be liable files an appeal within 30 20 calendar days after 
20.21 	being sent the determination by mail or electronic transmission. Proceedings on the appeal 
20.22 	shall be are conducted in accordance with section  268.105. 

20.23 	EFFECTIVE DATE. This section applies to determinations issued on or after 
20.24 	September 30, 2007.

20.25 	Sec. 5. Minnesota Statutes 2006, section 268.07, subdivision 1, is amended to read:
20.26 		Subdivision 1.Application for unemployment benefits; determination of benefit 
20.27 	account. (a) An application for unemployment benefits may be filed in person, by mail, or 
20.28 	by electronic transmission as the commissioner shall may require. The applicant must be 
20.29 	unemployed at the time the application is filed and must provide all requested information 
20.30 	in the manner required. If the applicant is not unemployed at the time of the application or 
20.31 	fails to provide all requested information, the communication shall is not be considered 
20.32 	an application for unemployment benefits.
21.1 	(b) The commissioner shall examine each application for unemployment benefits to 
21.2 	determine the base period and the benefit year, and based upon all the covered employment 
21.3 	in the base period the commissioner shall determine the weekly unemployment benefit 
21.4 	amount available, if any, and the maximum amount of unemployment benefits available, 
21.5 	if any. The determination shall be is known as the determination of benefit account. A 
21.6 	determination of benefit account shall must be sent to the applicant and all base period 
21.7 	employers, by mail or electronic transmission.
21.8 	(c) If a base period employer did not provide wage information for the applicant as 
21.9 	provided for in section  268.044, or provided erroneous information, the commissioner 
21.10 	may accept an applicant certification as to wage credits, based upon the applicant's records, 
21.11 	and issue a determination of benefit account. 
21.12 	(d) The commissioner may, at any time within 24 months from the establishment of 
21.13 	a benefit account, reconsider any determination of benefit account and make an amended 
21.14 	determination if the commissioner finds that the determination was incorrect for any 
21.15 	reason. An amended determination shall must be promptly sent to the applicant and all 
21.16 	base period employers, by mail or electronic transmission.
21.17 	(e) If an amended determination of benefit account reduces the weekly 
21.18 	unemployment benefit amount or maximum amount of unemployment benefits available, 
21.19 	any unemployment benefits that have been paid greater than the applicant was entitled is 
21.20 	considered an overpayment of unemployment benefits under section  268.18, subdivision 
21.21 	1. A determination or amended determination issued under this section that results in an 
21.22 	overpayment of unemployment benefits must set out the amount of the overpayment and 
21.23 	the requirement under section 268.18, subdivision 1, that the overpaid unemployment 
21.24 	benefits must be repaid.

21.25 	EFFECTIVE DATE. This section applies to all determinations issued on or after 
21.26 	September 30, 2007.

21.27 	Sec. 6. Minnesota Statutes 2006, section 268.07, subdivision 3a, is amended to read:
21.28 		Subd. 3a.Right of appeal. (a) A determination or amended determination of benefit 
21.29 	account shall be is final unless an applicant or base period employer within 30 20 calendar 
21.30 	days after the sending of the determination or amended determination files an appeal. 
21.31 	Every determination or amended determination of benefit account shall must contain a 
21.32 	prominent statement indicating in clear language the consequences of not appealing. 
21.33 	Proceedings on the appeal shall be are conducted in accordance with section  268.105. 
21.34 	(b) Any applicant or base period employer may appeal from a determination or 
21.35 	amended determination of benefit account on the issue of whether services performed 
22.1 	constitute employment and covered employment. Proceedings on the appeal shall be are
22.2 	conducted in accordance with section  268.105. 

22.3 	EFFECTIVE DATE. This section applies to determinations issued on or after 
22.4 	September 30, 2007.

22.5 	Sec. 7. Minnesota Statutes 2006, section 268.085, subdivision 5, is amended to read:
22.6 		Subd. 5.Deductible earnings. (a) If the applicant has earnings, including 
22.7 	holiday pay, with respect to any week, from employment, covered employment, 
22.8 	noncovered employment, self-employment, or volunteer work, equal to or in excess of 
22.9 	the applicant's weekly unemployment benefit amount, the applicant shall be is ineligible 
22.10 	for unemployment benefits for that week.
22.11 	(b) If the applicant has earnings, with respect to any week, that is less than 
22.12 	the applicant's weekly unemployment benefit amount, from employment, covered 
22.13 	employment, noncovered employment, self-employment, or volunteer work, that amount 
22.14 	over the following shall be 55 percent of the earnings are deducted from the weekly 
22.15 	unemployment benefit amount:.
22.16 	(1) 25 percent of earnings or $50, whichever is higher; and
22.17 	(2) $200 for earnings from service in the National Guard or a United States military 
22.18 	reserve unit.
22.19 	The resulting unemployment benefit, if not a whole dollar, shall be is rounded down 
22.20 	to the next lower whole dollar.
22.21 	(c) No deduction shall be is made from an applicant's weekly unemployment benefit 
22.22 	amount for earnings from service in the National Guard or a United States military reserve 
22.23 	unit or from direct service as a volunteer firefighter or volunteer ambulance service 
22.24 	personnel. This exception to paragraphs (a) and (b) does not apply to on-call or standby 
22.25 	pay provided to a volunteer firefighter or volunteer ambulance service personnel. No 
22.26 	deduction shall be is made for jury duty pay or for pay as an election judge.
22.27 	(d) The applicant may report deductible earnings on continued biweekly requests for 
22.28 	unemployment benefits at the next lower whole dollar amount.
22.29 	(e) Deductible earnings shall does not include any money considered a deductible 
22.30 	payment under subdivision 3, but shall include includes all other money compensation
22.31 	considered wages under section 268.035, subdivision 29, and any other money
22.32 	compensation considered earned income under state and federal law for income tax 
22.33 	purposes.

23.1 	EFFECTIVE DATE. The striking of paragraph (b), clause (2), and the insertion 
23.2 	of "service in the National Guard or a United States military reserve unit or from" in 
23.3 	paragraph (c) are effective the Sunday following final enactment. The remainder of 
23.4 	the section is effective for all unemployment benefits paid on or after September 30, 
23.5 	2007, regardless of when the continued request was filed or the week for which the 
23.6 	unemployment benefits are paid.

23.7 	Sec. 8. Minnesota Statutes 2006, section 268.101, subdivision 6, is amended to read:
23.8 		Subd. 6.Overpayment. A determination or amended determination that holds an 
23.9 	applicant disqualified or ineligible for unemployment benefits for periods an applicant 
23.10 	has been paid benefits is considered an overpayment of those unemployment benefits 
23.11 	under section  268.18, subdivision 1. A determination or amended determination issued 
23.12 	under this section that results in an overpayment of unemployment benefits must set out 
23.13 	the amount of the overpayment and the requirement under section 268.18, subdivision 1, 
23.14 	that the overpaid unemployment benefits must be repaid.

23.15 	EFFECTIVE DATE. This section applies to determinations issued on or after 
23.16 	September 30, 2007.

23.17 	Sec. 9. Minnesota Statutes 2006, section 268.105, subdivision 2, is amended to read:
23.18 		Subd. 2.Request for reconsideration. (a) Any involved applicant, involved 
23.19 	employer, or the commissioner may, within 30 20 calendar days of the sending of the 
23.20 	unemployment law judge's decision under subdivision 1, file a request for reconsideration 
23.21 	asking the unemployment law judge to reconsider that decision. Section 268.103shall 
23.22 	apply applies to a request for reconsideration. If a request for reconsideration is timely 
23.23 	filed, the unemployment law judge shall must issue an order:
23.24 	(1) modifying the findings of fact and decision issued under subdivision 1;
23.25 	(2) setting aside the findings of fact and decision issued under subdivision 1 and 
23.26 	directing that an additional evidentiary hearing be conducted under subdivision 1; or
23.27 	(3) affirming the findings of fact and decision issued under subdivision 1.
23.28 	(b) Upon a timely request for reconsideration having been filed, the department shall
23.29 	must send a notice, by mail or electronic transmission, to all involved parties that a request 
23.30 	for reconsideration has been filed. The notice shall must inform the involved parties:
23.31 	(1) of the opportunity to provide comment on the request for reconsideration, and 
23.32 	the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits 
23.33 	offered or received into evidence at the evidentiary hearing;
24.1 	(2) that providing specific comments as to a perceived factual or legal error in the 
24.2 	decision, or a perceived error in procedure during the evidentiary hearing, will assist the 
24.3 	unemployment law judge in deciding the request for reconsideration;
24.4 	(3) of the right to obtain any comments and submissions provided by the other 
24.5 	involved party regarding the request for reconsideration; and
24.6 	(4) of the provisions of paragraph (c) regarding additional evidence.
24.7 	This paragraph shall does not apply if paragraph (d) is applicable.
24.8 	(c) In deciding a request for reconsideration, the unemployment law judge shall must
24.9 	not, except for purposes of determining whether to order an additional evidentiary hearing, 
24.10 	consider any evidence that was not submitted at the evidentiary hearing conducted under 
24.11 	subdivision 1.
24.12 	The unemployment law judge must order an additional evidentiary hearing if an 
24.13 	involved party shows that evidence which was not submitted at the evidentiary hearing: 
24.14 	(1) would likely change the outcome of the decision and there was good cause for not 
24.15 	having previously submitted that evidence; or (2) would show that the evidence that was 
24.16 	submitted at the evidentiary hearing was likely false and that the likely false evidence had 
24.17 	an effect on the outcome of the decision.
24.18 	(d) If the involved applicant or involved employer who filed the request for 
24.19 	reconsideration failed to participate in the evidentiary hearing conducted under 
24.20 	subdivision 1, an order setting aside the findings of fact and decision and directing that 
24.21 	an additional evidentiary hearing be conducted must be issued if the party who failed to 
24.22 	participate had good cause for failing to do so. In the notice of the that a request for 
24.23 	reconsideration has been filed, the party who failed to participate shall must be informed 
24.24 	of the requirement, and provided the opportunity, to show good cause for failing to 
24.25 	participate. If the unemployment law judge determines that good cause for failure to 
24.26 	participate has not been shown, the unemployment law judge must state that in the order 
24.27 	issued under paragraph (a).
24.28 	Submission of a written statement at the evidentiary hearing under subdivision 1 
24.29 	shall does not constitute participation for purposes of this paragraph.
24.30 	All involved parties must be informed of this paragraph with the notice of appeal 
24.31 	and notice of hearing provided for in subdivision 1.
24.32 	"Good cause" for purposes of this paragraph is a reason that would have prevented a 
24.33 	reasonable person acting with due diligence from participating at the evidentiary hearing.
24.34 	(e) A request for reconsideration shall must be decided by the unemployment 
24.35 	law judge who issued the findings of fact and decision under subdivision 1 unless that 
24.36 	unemployment law judge: (1) is no longer employed by the department; (2) is on an 
25.1 	extended or indefinite leave; (3) has been disqualified from the proceedings on the judge's 
25.2 	own motion; or (4) has been removed from the proceedings as provided for under 
25.3 	subdivision 1 or applicable rule.
25.4 	(f) The unemployment law judge shall must send to any involved applicant or 
25.5 	involved employer, by mail or electronic transmission, the order issued under this 
25.6 	subdivision. An order modifying the previously issued findings of fact and decision or 
25.7 	an order affirming the previously issued findings of fact and decision shall be is the final 
25.8 	department decision on the matter and shall be is final and binding on the involved 
25.9 	applicant and involved employer unless judicial review is sought under subdivision 7.

25.10 	EFFECTIVE DATE. This section applies to decisions issued on or after September 
25.11 	30, 2007.

25.12 	Sec. 10. Minnesota Statutes 2006, section 268.105, subdivision 3a, is amended to read:
25.13 		Subd. 3a.Decisions. (a) If an unemployment law judge's decision or order allows 
25.14 	unemployment benefits to an applicant, the unemployment benefits shall must be paid 
25.15 	regardless of any request for reconsideration or any appeal to the Minnesota Court of 
25.16 	Appeals having been filed.
25.17 	(b) If an unemployment law judge's decision or order modifies or reverses a 
25.18 	determination, or prior decision of the unemployment law judge, allowing unemployment 
25.19 	benefits to an applicant, any benefits paid pursuant to in accordance with the determination, 
25.20 	or prior decision of the unemployment law judge, is considered an overpayment of those 
25.21 	unemployment benefits under section 268.18, subdivision 1. A decision or order issued 
25.22 	under this section that results in an overpayment of unemployment benefits must set out 
25.23 	the amount of the overpayment and the requirement under section 268.18, subdivision 1, 
25.24 	that the overpaid unemployment benefits must be repaid.
25.25 	(c) If an unemployment law judge's order under subdivision 2 allows unemployment 
25.26 	benefits to an applicant under section 268.095 because of a quit or discharge and the 
25.27 	unemployment law judge's decision is reversed by the Minnesota Court of Appeals or the 
25.28 	Supreme Court of Minnesota, any unemployment benefits paid the applicant shall is not 
25.29 	be considered an overpayment of those unemployment benefits under section 268.18, 
25.30 	subdivision 1.
25.31 	(d) If an unemployment law judge, pursuant to under subdivision 2, orders the taking 
25.32 	of additional evidence, the unemployment law judge's prior decision shall must continue 
25.33 	to be enforced until new findings of fact and decision are made by the unemployment 
25.34 	law judge.

26.1 	EFFECTIVE DATE. This section applies to decisions issued on or after September 
26.2 	30, 2007.

26.3 	Sec. 11. Minnesota Statutes 2006, section 268.131, subdivision 1, is amended to read:
26.4 		Subdivision 1.Cooperation with other state and federal government states on 
26.5 	combining wages. (a) In accordance with the requirements of United States Code, title 
26.6 	26, section 3304(a)(9)(B), the Federal Unemployment Tax Act, the commissioner shall 
26.7 	participate in reciprocal arrangements with other states and the federal government, or 
26.8 	both, for the payment of unemployment benefits on the basis of combining an applicant's 
26.9 	wages and employment covered under this law with wages and employment covered 
26.10 	under the unemployment insurance programs of other states or the federal government that
26.11 	from multiple states for the purposes of collecting unemployment benefits from a single 
26.12 	state. The reciprocal agreement must include provisions for applying the base period of a 
26.13 	single state law to an a benefit account involving the combining of an applicant's wages 
26.14 	and employment and avoiding the duplicate use of wages by reason of such combining. 
26.15 	NoThe commissioner may not enter into any reciprocal arrangement shall be entered 
26.16 	into unless it contains provisions for reimbursements to the trust fund, by the other 
26.17 	state or the federal government, for unemployment benefits paid from the trust fund to 
26.18 	applicants based upon wages and employment covered under the laws of the other state or 
26.19 	the federal government.
26.20 	(b) The commissioner is authorized to pay unemployment benefits based upon 
26.21 	an applicant's wages paid in covered employment in another state only if the applicant 
26.22 	is combining Minnesota wage credits with the wages paid in covered employment from 
26.23 	another state or states. 
26.24 	(c) Section 268.23 does not apply to this subdivision.
26.25 	(d) On any reciprocal arrangement, the wages paid an applicant from employment 
26.26 	covered under an unemployment insurance program of another state or of the federal 
26.27 	government, shall beare considered wages from covered employment for the purpose 
26.28 	of determining the applicant's rights to unemployment benefits under the Minnesota 
26.29 	Unemployment Insurance Law.

26.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.31 	Sec. 12. Minnesota Statutes 2006, section 268.18, subdivision 1, is amended to read:
26.32 		Subdivision 1.Nonfraud overpayment. (a) Any applicant who (1) by reason of the 
26.33 	applicant's own mistake, or (2) because of an error by any employee of the department, or 
26.34 	(3) because of a determination or amended determination issued pursuant to under section 
27.1 	268.07 or 268.101, or any other section of this chapter, or (4) (2) because of an appeal 
27.2 	decision or order under section 268.105, has received any unemployment benefits that the 
27.3 	applicant was held not entitled to, shall must promptly repay the unemployment benefits 
27.4 	to the trust fund. The commissioner shall, as soon as the overpayment is discovered, 
27.5 	determine the amount due and notify the applicant to repay the unemployment benefits.
27.6 	(b) Unless the applicant files an appeal within 30 calendar days after the sending 
27.7 	of the determination of overpayment to the applicant by mail or electronic transmission, 
27.8 	the determination shall become final. Proceedings on the appeal shall be conducted in 
27.9 	accordance with section 268.105. An applicant may not collaterally attack, by way of an 
27.10 	appeal to an overpayment determination, any prior determination issued pursuant to section 
27.11 	268.07 or 268.101, or decision issued pursuant to section 268.105, that has become final.
27.12 	(c) If the applicant fails to repay the unemployment benefits determined overpaid 
27.13 	under this subdivision, the commissioner may offset from any future unemployment 
27.14 	benefits otherwise payable the amount of the overpayment. Except when the overpayment 
27.15 	resulted because the applicant failed to report deductible earnings or deductible or 
27.16 	benefit delaying payments, no single offset shall may exceed 50 percent of the amount 
27.17 	of the payment from which the offset is made. The overpayment may also be collected 
27.18 	by the same methods as delinquent payments from an employer. A determination of 
27.19 	overpayment shall state the methods of collection the commissioner may use to recover 
27.20 	the overpayment.
27.21 	(d) (c) If an applicant has been overpaid unemployment benefits under the law of 
27.22 	another state, due to because of a reason other than fraud, and that state certifies that the 
27.23 	applicant is liable under its law to repay the unemployment benefits and requests the 
27.24 	commissioner to recover the overpayment, the commissioner may offset from future 
27.25 	unemployment benefits otherwise payable the amount of overpayment, except that no 
27.26 	single offset shall may exceed 50 percent of the amount of the payment from which the 
27.27 	offset is made.
27.28 	(e) (d) If under paragraph (b) or (c) or (d) the reduced unemployment benefits as 
27.29 	a result of a 50 percent offset is not a whole dollar amount, it shall be is rounded down 
27.30 	to the next lower whole dollar.
27.31 	(f) Unemployment benefits paid for weeks more than three years prior to the date 
27.32 	of a determination of overpayment issued under this subdivision shall not be considered 
27.33 	overpaid unemployment benefits.

27.34 	EFFECTIVE DATE. This section is effective September 30, 2007.

27.35 	Sec. 13. Minnesota Statutes 2006, section 268.18, subdivision 2b, is amended to read:
28.1 		Subd. 2b.Interest. (a) On any unemployment benefits fraudulently obtained, 
28.2 	and any penalty amounts assessed under subdivision 2, the commissioner may shall
28.3 	assess interest at the rate of 1-1/2 percent per month on any amount that remains unpaid
28.4 	beginning 30 calendar days after the date of the determination of overpayment by fraud. A 
28.5 	determination of overpayment by fraud shall must state that interest shall will be assessed.
28.6 	(b) If this subdivision became effective after the date of the determination, or the 
28.7 	determination did not state that interest shall will be assessed, interest shall be is assessed 
28.8 	beginning 30 calendar days after notification, by mail or electronic transmission, to the 
28.9 	applicant that interest is now assessed.
28.10 	(c) Interest payments under this section shall be are credited to the administration 
28.11 	account.

28.12 	EFFECTIVE DATE. This section is effective September 30, 2007, and applies to 
28.13 	all outstanding fraud overpayment balances as of that date.

28.14 	Sec. 14. Minnesota Statutes 2006, section 268.18, subdivision 4, is amended to read:
28.15 		Subd. 4.Cancellation of overpayments. (a) If unemployment benefits determined
28.16 	overpaid under subdivision 1 are not repaid or offset from subsequent unemployment 
28.17 	benefits as provided for in subdivision 1 within six years after the date of the determination 
28.18 	of overpayment or decision holding the applicant overpaid, the commissioner shall cancel 
28.19 	the overpayment balance, and no administrative or legal proceedings shall may be used to 
28.20 	enforce collection of those amounts.
28.21 	(b) If unemployment benefits determined overpaid under subdivision 2 including 
28.22 	penalties and interest are not repaid or offset from subsequent unemployment benefits as 
28.23 	provided for in subdivision 2 within ten 15 years after the date of the determination of 
28.24 	overpayment by fraud, the commissioner shall cancel the overpayment balance and any 
28.25 	penalties and interest due, and no administrative or legal proceeding shall may be used to 
28.26 	enforce collection of those amounts.
28.27 	(c) The commissioner may cancel at any time any overpayment, including penalties 
28.28 	and interest, that the commissioner determines is uncollectible due to because of death 
28.29 	or bankruptcy.

28.30 	EFFECTIVE DATE. This section is effective September 30, 2007, and applies to 
28.31 	all overpayments existing as of that date.

28.32 	Sec. 15. Minnesota Statutes 2006, section 268.182, subdivision 2, is amended to read:
29.1 		Subd. 2.Administrative penalties. Any applicant who knowingly makes a false 
29.2 	statement or representation, who knowingly fails to disclose a material fact, or who makes 
29.3 	a false statement or representation without a good faith belief as to the correctness of the 
29.4 	statement or representation, in order to obtain or in an attempt to obtain unemployment 
29.5 	benefits may be assessed, in addition to any other penalties, an administrative penalty of 
29.6 	being ineligible for unemployment benefits for 13 to 104 weeks. A determination of 
29.7 	ineligibility setting out the weeks the applicant shall beis ineligible shallmust be sent to 
29.8 	the applicant by mail or electronic transmission. Unless an appeal is filed within 30 20
29.9 	calendar days of sending, the determination shall beis final. ProceedingProceedings on 
29.10 	the appeal shall be are conducted in accordance with section 268.105.

29.11 	EFFECTIVE DATE. This section applies to determinations issued on or after 
29.12 	September 30, 2007.

29.13 	Sec. 16. Minnesota Statutes 2006, section 268.184, subdivision 1, is amended to read:
29.14 		Subdivision 1.Administrative penalties. (a) If The commissioner findsshall 
29.15 	penalize an employer if that any employer or any employee, officer, or agent of anythat 
29.16 	employer, is in collusion with any applicant for the purpose of assisting the applicant to 
29.17 	receive unemployment benefits fraudulently, the employer shall be penalized. The penalty 
29.18 	is  $500 or the amount of unemployment benefits determined to be overpaid, whichever 
29.19 	is greater.
29.20 	(b) If The commissioner findsshall penalize an employer if that any employer or 
29.21 	any employee, officer, or agent of anthat employer has(1) made (1) a false statement or 
29.22 	representation knowing it to be false, including reporting employees on a wage detail 
29.23 	report under section 268.044 knowing the employees actually are employed by a different 
29.24 	employer, or, (2) has made a false statement or representation without a good faith belief 
29.25 	as to correctness of the statement or representation, or (3) who knowingly failsfailed to 
29.26 	disclose a material fact,; but only if the employer's action:
29.27 	(i) was taken to prevent or reduce the payment of unemployment benefits to any 
29.28 	applicant or;
29.29 	(ii) was taken  to reduce or avoid any payment required from an employer under this 
29.30 	chapter or section 116L.20, the employer shall be penalized; or
29.31 	(iii) caused an overpayment of unemployment benefits to an applicant.
29.32 	The penalty is $500, or 50 percent of the overpaid or reduced unemployment benefits 
29.33 	or payment required, whichever is greater.
29.34 	(c) If The commissioner findsshall penalize an employer if that an employer failed 
29.35 	or refused to honor a subpoena issued under section 268.105, subdivision 4, or section 
30.1 	268.188, the employer shall be penalized. The penalty is  $500 and any costs of enforcing 
30.2 	the subpoena, including attorney fees.
30.3 	(d) Penalties under this subdivision shall beare in addition to any other penalties 
30.4 	and subject to the same collection procedures that apply to past due taxes. Penalties shall
30.5 	must be paid to the department within 30 calendar days of assessment and credited to 
30.6 	the contingent account.
30.7 	(e) The assessment of the penalty shall beis final unless the employer files an appeal 
30.8 	within 3020 calendar days after the sending of notice of the penalty to the employer by 
30.9 	mail or electronic transmission. Proceedings on the appeal shall beare conducted in 
30.10 	accordance with section 268.105.

30.11 	EFFECTIVE DATE. This section is effective for notices of penalties sent on or 
30.12 	after September 30, 2007.

30.13 	Sec. 17. Minnesota Statutes 2006, section 268.184, subdivision 1a, is amended to read:
30.14 		Subd. 1a.Notification and misreporting penalties. (a) If the commissioner finds 
30.15 	that any employer or agent of an employer failed to meet the notification requirements 
30.16 	of section 268.051, subdivision 4, the employer shallmust be assessed a penalty of 
30.17 	$5,000 or two percent of the first full quarterly payroll acquired, whichever is higher. 
30.18 	Payroll is wages paid as defined in section 268.035, subdivision 30. The penalty under 
30.19 	this paragraph shallmust be canceled if the commissioner determines that the failure 
30.20 	occurred because of ignorance or inadvertence.
30.21 	(b) If the commissioner finds that any individual advised an employer to violate the 
30.22 	employer's notification requirements under section 268.051, subdivision 4, the individual, 
30.23 	and that individual's employer, shallmust each be assessed the penalty in paragraph (a).
30.24 	(c) If the commissioner finds that any person or agent of a person violated the 
30.25 	reporting requirements of section 268.0435 or 268.046, the person shallmust be assessed 
30.26 	a penalty of $5,000 or two percent of the quarterly payroll reported in violation of section 
30.27 	268.0435 or 268.046, whichever is higher. Payroll is wages paid as defined in section 
30.28 	268.035, subdivision 30.
30.29 	(d) Penalties under this subdivision shall beare in addition to any other penalties and 
30.30 	subject to the same collection procedures that apply to past due amounts from an employer. 
30.31 	Penalties must be paid within 30 calendar days after sending of the notice of penalty.
30.32 	(e) The assessment of a penalty shall beis final unless the person assessed files an 
30.33 	appeal within 30 20 calendar days after sending of the notice of the penalty by mail or 
30.34 	electronic transmission. Proceedings on the appeal shall beare conducted in accordance 
30.35 	with section 268.105.

31.1 	EFFECTIVE DATE. This section applies to assessments done on or after 
31.2 	September 30, 2007.

31.3 	Sec. 18. [268.215] DAY OF THE WEEK AND DATE REQUIREMENT.
31.4 	(a) Every determination issued under this chapter that is subject to an appeal to an 
31.5 	unemployment law judge must indicate the day of the week and the date, for example, 
31.6 	Tuesday, August 1, 2006, that the determination is final and no longer subject to an appeal.
31.7 	(b) Every decision issued by an unemployment law judge under section 268.105, 
31.8 	subdivision 1, must indicate the day of the week and the date, for example, Tuesday, 
31.9 	August 1, 2006, that the decision is final and no longer subject to reconsideration.

31.10 	EFFECTIVE DATE. This section is effective September 30, 2007.

31.11 	ARTICLE 3
31.12 	HOUSEKEEPING PROVISIONS

31.13 	Section 1. Minnesota Statutes 2006, section 268.035, subdivision 1, is amended to read:
31.14 		Subdivision 1.Scope. Unless the language or context clearly indicates that a 
31.15 	different meaning is intended, The words, terms, and phrases in this section shall, for the 
31.16 	purposes of the Minnesota Unemployment Insurance Law, have the meaning stated.

31.17 	Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 14, is amended to read:
31.18 		Subd. 14.Employer. "Employer" means any person which that has had one or more 
31.19 	employees during the current or the prior calendar year including any person that has 
31.20 	elected, under section 268.042, to be subject to the Minnesota Unemployment Insurance 
31.21 	Law and a joint venture composed of one or more employers.
31.22 	An employee leasing company, professional employer organization, or similar 
31.23 	person that has been assigned a tax or reimbursable account under section 268.046 is 
31.24 	an employer for purposes of this chapter.

31.25 	Sec. 3. Minnesota Statutes 2006, section 268.035, subdivision 24, is amended to read:
31.26 		Subd. 24.Taxable wages. (a) "Taxable wages" means those wages paid to an 
31.27 	employee in covered employment each calendar year up to an amount equal to 60 percent 
31.28 	of the state's average annual wage, rounded to the nearest $1,000.
31.29 	(b) Taxable wages includes the amount of wages paid for covered employment by 
31.30 	the employer's predecessor when there has been an experience rating history transfer 
31.31 	under section 268.051, subdivision 4. 

32.1 	Sec. 4. Minnesota Statutes 2006, section 268.044, subdivision 1, is amended to read:
32.2 		Subdivision 1.Wage detail report. (a) Each employer that has employees in 
32.3 	covered employment shall must submit, under the account provided for in section 
32.4 	268.045 or 268.046, a quarterly wage detail report by electronic transmission, in a format 
32.5 	prescribed by the commissioner. The report shall must include for each employee in 
32.6 	covered employment during the calendar quarter, the employee's name, Social Security 
32.7 	number, the total wages paid to the employee, and total number of paid hours worked. 
32.8 	For employees exempt from the definition of employee in section 177.23, subdivision 7, 
32.9 	clause (6), the employer shall must report 40 hours worked for each week any duties were 
32.10 	performed by a full-time employee and shall must report a reasonable estimate of the 
32.11 	hours worked for each week duties were performed by a part-time employee. In addition, 
32.12 	the wage detail report shall must include the number of employees employed onduring 
32.13 	the payroll period that includes the 12th day of each calendar month and, if required by the 
32.14 	commissioner, the report shall must  be broken down by business location and, if section 
32.15 	268.046, subdivision 1, paragraph (b), or subdivision 2, paragraph (b), applies, by separate 
32.16 	unit. If the information required is not submitted in a manner and format prescribed by the 
32.17 	commissioner, it shall not be considered a wage detail report. The report is due and must 
32.18 	be received by the commissioner on or before the last day of the month following the end 
32.19 	of the calendar quarter. The commissioner may delay the due date on a specific calendar 
32.20 	quarter in the event the department is unable to accept wage detail reports electronically.
32.21 	(b) The employer may report the wages paid to the next lower whole dollar amount.
32.22 	(c) An employer need not include the name of the employee or other required 
32.23 	information on the wage detail report if disclosure is specifically exempted from being 
32.24 	reported by federal law.
32.25 	(d) A wage detail report must be submitted for each calendar quarter even though 
32.26 	no wages were paid, unless the employer has notified the commissioner, under section 
32.27 	268.042, subdivision 1, paragraph (c), of termination of business.

32.28 	Sec. 5. Minnesota Statutes 2006, section 268.044, subdivision 3, is amended to read:
32.29 		Subd. 3.Missing or erroneous information. (a) Any employer that submits the 
32.30 	wage detail report, but fails to include all employee information or enters erroneous 
32.31 	information, shall be is subject to an administrative service fee of $25 for each employee 
32.32 	for whom the information is partially missing or erroneous.
32.33 	(b) Any employer that submits the wage detail report, but fails to include an 
32.34 	employee, shall be is subject to an administrative service penalty fee equal to two percent 
32.35 	of the total wages for each employee for whom the information is completely missing.
33.1 	(c) An administrative service fee or penalty under this subdivision shall must be 
33.2 	canceled if the commissioner determines that the failure or error by the employer occurred 
33.3 	because of ignorance or inadvertence.

33.4 	Sec. 6. Minnesota Statutes 2006, section 268.051, subdivision 2, is amended to read:
33.5 		Subd. 2.Computation of tax rates; additional assessments. (a) For each calendar 
33.6 	year the commissioner shall compute the tax rate of each taxpaying employer that qualifies 
33.7 	for an experience rating by adding the base tax rate to the employer's experience rating
33.8 	along with assigning any appropriate additional assessment under paragraph (d).
33.9 	(b) The base tax rate for the calendar year and any additional assessments under this 
33.10 	subdivision shall be are determined based upon the amount in the trust fund on March 
33.11 	31 of the prior year as a percentage of total wages paid in covered employment. The 
33.12 	base tax rate shall be is:
33.13 	(1) one-tenth of one percent if the trust fund is equal to or more than 0.75 percent;
33.14 	(2) two-tenths of one percent if the trust fund is less than 0.75 percent but equal to or 
33.15 	more than 0.65 percent;
33.16 	(3) three-tenths of one percent if the trust fund is less than 0.65 percent but equal 
33.17 	to or more than 0.55 percent; or
33.18 	(4) four-tenths of one percent if the trust fund is less than 0.55 percent.
33.19 	(c) There shall be is a "falling trust fund adjustment" to the base tax rate for the 
33.20 	calendar year if the amount in the trust fund on March 31 of the prior year is less than 0.75 
33.21 	percent of total wages paid in covered employment and:
33.22 	(1) the amount in the trust fund on March 31 of the prior year is ten percent or more 
33.23 	below the amount in the trust fund on March 31 of the year prior to before that; or
33.24 	(2) the amount in the trust fund on March 31 of the prior year is greater than the 
33.25 	amount in the trust fund on June 30 of that same year.
33.26 	If a "falling trust fund adjustment" is applicable, then the base tax rate shall be 0.1 is 
33.27 	one-tenth of one percent greater than otherwise provided for under paragraph (b).
33.28 	(d) In addition to the base tax rate under paragraph (b), there shall be is an additional 
33.29 	assessment for the calendar year on all the quarterly unemployment taxes due from every 
33.30 	taxpaying employer if the amount in the trust fund on March 31 of the prior year is less 
33.31 	than .55 0.55 percent of total wages paid in covered employment. The assessment shall be
33.32 	is as follows:
33.33 	(1) a five percent assessment if the trust fund is less than 0.55 percent but equal to or 
33.34 	more than 0.45 percent;
34.1 	(2) a ten percent assessment if the trust fund is less than 0.45 percent but equal 
34.2 	to or more than 0.35 percent; or
34.3 	(3) a 14 percent assessment if the trust fund is less than 0.35 percent.
34.4 	(e) For the purposes of this subdivision, the trust fund shall does not include any 
34.5 	money borrowed from the federal unemployment trust fund pursuant to provided for in
34.6 	section  268.194, subdivision 6. 
34.7 	(f) For the purposes of this subdivision, total wages paid in covered employment 
34.8 	shall be are those wages paid to all employees in covered employment during the calendar 
34.9 	year prior to before the March 31 date used in paragraph (b).
34.10 	(g) The commissioner may compute any assessment under this subdivision, and any 
34.11 	assessment under subdivision 8, as a percentage of the employer's experience rating and 
34.12 	the base tax rate, rounded to the nearest hundredth of a percent.
34.13 	On tax rate notices sent under subdivision 6, any assessments under this subdivision 
34.14 	may be combined with any special assessments for interest on federal loans provided for 
34.15 	in subdivision 8 into a single combined assessment.
34.16 	(g) The base tax rate and any additional assessments are assessed on all taxpaying 
34.17 	employers to cover a portion of the costs to the trust fund for unemployment benefits paid 
34.18 	that do not affect any single employer's future experience rating because:
34.19 	(1) the employer's experience rating is limited by the maximum under subdivision 3, 
34.20 	paragraph (b);
34.21 	(2) the employer has ceased doing business; or
34.22 	(3) the unemployment benefits paid have been determined not to be used in 
34.23 	computing the employer's experience rating under section 268.047, subdivision 2 or 3.

34.24 	Sec. 7. Minnesota Statutes 2006, section 268.051, subdivision 3, is amended to read:
34.25 		Subd. 3.Computation of a taxpaying employer's experience rating. (a) On 
34.26 	or before each December 15, the commissioner shall compute an experience rating for 
34.27 	each taxpaying employer who has been subject required to paying unemployment taxes
34.28 	file wage detail reports for the 12 calendar months ending on the prior June 30. The 
34.29 	experience rating computed shall be is  applicable for the following calendar year.
34.30 	The experience rating shall be is the ratio obtained by dividing 125 percent of the 
34.31 	total unemployment benefits required under section  268.047 to be used in computing the 
34.32 	employer's tax rate during the 48 calendar months ending on the prior June 30, by the 
34.33 	employer's total taxable payroll for that same period. 
34.34 	(b) The experience rating shall be is computed to the nearest one-hundredth of a 
34.35 	percent, to a maximum of  8.90 percent. 
35.1 	(c) The use of 125 percent of unemployment benefits paid under paragraph (a), rather 
35.2 	than 100 percent of the amount of unemployment benefits paid, is done in order for the 
35.3 	trust fund to recover from all taxpaying employers a portion of the costs of unemployment 
35.4 	benefits paid that do not affect any individual employer's future experience rating because 
35.5 	of the reasons set out in subdivision 2, paragraph (g).

35.6 	Sec. 8. Minnesota Statutes 2006, section 268.051, subdivision 4, is amended to read:
35.7 		Subd. 4.Experience rating history transfer. (a) When:
35.8 	(1) a taxpaying employer acquires all of the organization, trade or business, or 
35.9 	workforce of another taxpaying employer; and
35.10 	(2) there is 25 percent or more common ownership or there is substantially common 
35.11 	management or control between the predecessor and successor, the experience rating 
35.12 	history of the predecessor employer shall be is transferred as of the date of acquisition to 
35.13 	the successor employer.
35.14 	(b) When:
35.15 	(1) a taxpaying employer acquires a portion, but less than all, of the organization, 
35.16 	trade or business, or workforce of another taxpaying employer; and
35.17 	(2) there is 25 percent or more common ownership or there is substantially 
35.18 	common management or control between the predecessor and successor, the successor 
35.19 	employer shall acquire acquires, as of the date of acquisition, the experience rating 
35.20 	history attributable to the portion it acquired, and the predecessor employer shall retain
35.21 	retains the experience rating history attributable to the portion that it has retained. If the 
35.22 	commissioner determines that sufficient information is not available to substantiate that a 
35.23 	distinct severable portion was acquired and to assign the appropriate distinct severable 
35.24 	portion of the experience rating history, the commissioner shall assign the successor 
35.25 	employer that percentage of the predecessor employer's experience rating history equal to 
35.26 	that percentage of the employment positions it has obtained, and the predecessor employer 
35.27 	shall retain retains that percentage of the experience rating history equal to the percentage 
35.28 	of the employment positions it has retained.
35.29 	(c) The term "common ownership" for purposes of this subdivision includes 
35.30 	ownership by a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle, 
35.31 	niece, nephew, or first cousin, by birth or by marriage.
35.32 	(d) Each successor employer that is subject to paragraph (a) or (b) must notify the 
35.33 	commissioner of the acquisition by electronic transmission, in a format prescribed by the 
35.34 	commissioner, within 30 calendar days of the date of acquisition. Any successor employer 
35.35 	that fails to notify the commissioner is subject to the penalties under section 268.184, 
36.1 	subdivision 1a, if the successor's experience rating was lower than the predecessor's 
36.2 	experience rating at the time of the acquisition. Payments made toward the penalties 
36.3 	shall be are credited to the administration account to be used to ensure integrity in the 
36.4 	unemployment insurance program.
36.5 	(e) If the successor employer under paragraphs (a) and (b) had an experience rating 
36.6 	at the time of the acquisition, the transferred experience rating history of the predecessor 
36.7 	shall be is combined with the successor's experience rating history, as of the date of 
36.8 	acquisition, for purposes of recomputing a tax rate.
36.9 	(f) If there has been a transfer of an experience rating history under paragraph (a) 
36.10 	or (b), employment with a predecessor employer shall is not be considered to have been 
36.11 	terminated if similar employment is offered by the successor employer and accepted by 
36.12 	the employee.
36.13 	(g) The commissioner, upon notification of an employer, or upon the commissioner's 
36.14 	own motion if the employer fails to provide the required notification, shall determine if an 
36.15 	employer is a successor within the meaning of this subdivision. The commissioner shall, 
36.16 	after determining the issue of succession or nonsuccession, recompute the tax rate under 
36.17 	subdivision 6 of all employers affected. The commissioner shall send the recomputed 
36.18 	tax rate to all affected employers by mail or electronic transmission. Any affected 
36.19 	employer may protest appeal the recomputed tax rate in accordance with the procedures 
36.20 	in subdivision 6, paragraph (c).
36.21 	(h) The "experience rating history" for purposes of this subdivision and subdivision 
36.22 	4a means those factors set out in subdivision 3, paragraph (b), that make up an experience 
36.23 	rating the amount of unemployment benefits paid and the taxable wages that are being 
36.24 	used and would be used in computing the current and any future experience rating.
36.25 	For purposes of this chapter, an "acquisition" means anything that results in the 
36.26 	obtaining by the successor employer, in any way or manner, of the organization, trade or 
36.27 	business, or workforce of the predecessor employer.
36.28 	A "distinct severable portion" in paragraph (b) means a location or unit separately 
36.29 	identifiable within the employer's wage detail report under section 268.044.
36.30 	(i) Regardless of the ownership, management, or control requirements of paragraph 
36.31 	(a), if there is an acquisition or merger of a publicly held corporation by or with another 
36.32 	publicly held corporation the experience rating histories of the corporations shall be are
36.33 	combined as of the date of acquisition or merger for the purpose of recomputing a tax rate.

36.34 	Sec. 9. Minnesota Statutes 2006, section 268.051, subdivision 7, is amended to read:
37.1 		Subd. 7.Tax rate buydown. (a) Any taxpaying employer who that has been 
37.2 	assigned a tax rate based upon an experience rating, and has no amounts past due under 
37.3 	this chapter, may, upon the voluntary payment of an amount equivalent to any portion or 
37.4 	all of the unemployment benefits used in computing the experience rating plus a surcharge 
37.5 	of 25 percent, obtain a cancellation of unemployment benefits used equal to the payment 
37.6 	made, less the surcharge. Upon the payment, the commissioner shall compute a new 
37.7 	experience rating for the employer, and compute a new tax rate.
37.8 	(b) Voluntary Payments for a tax rate buydown may be made only by electronic 
37.9 	payment and must be received within 120 calendar days from the beginning of the 
37.10 	calendar year for which the tax rate is effective.

37.11 	Sec. 10. Minnesota Statutes 2006, section 268.051, subdivision 8, is amended to read:
37.12 		Subd. 8.Special assessment for interest on federal loan. (a) If on October 31 of 
37.13 	any year, the commissioner, in consultation with the commissioner of finance, determines 
37.14 	that an interest payment will be due during the following calendar year on any loan from 
37.15 	the federal unemployment trust fund under section  268.194, subdivision 6, a special 
37.16 	assessment on taxpaying employers will be in effect for the following calendar year. The 
37.17 	legislature authorizes the commissioner, in consultation with the commissioner of finance, 
37.18 	to determine the appropriate level of the assessment, from two percent to eight percent of 
37.19 	the total quarterly unemployment taxes due based upon determined rates and assigned 
37.20 	assessments under subdivision 2, that will be necessary to pay the interest due on the loan. 
37.21 	(b) The special assessment shall must be placed into a special account from which 
37.22 	the commissioner shall pay any interest that has accrued on any loan from the federal 
37.23 	unemployment trust fund provided for under section  268.194, subdivision 6. If, at the 
37.24 	end of each calendar quarter, the commissioner, in consultation with the commissioner 
37.25 	of finance, determines that the balance in this special account, including interest earned 
37.26 	on the special account, is more than is necessary to pay the interest which that has 
37.27 	accrued on any loan as of that date, or will accrue over the following calendar quarter, 
37.28 	the commissioner shall immediately pay to the trust fund the amount in excess of that 
37.29 	necessary to pay the interest on any loan. 

37.30 	Sec. 11. Minnesota Statutes 2006, section 268.066, is amended to read:
37.31 	268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.
37.32 	(a) The commissioner shall cancel as uncollectible any amounts due from an 
37.33 	employer under this chapter or section  116L.20, which that remain unpaid six years after 
37.34 	the amounts have been first determined due, except where the delinquent amounts are 
38.1 	secured by a notice of lien, a judgment, are in the process of garnishment, or are under a 
38.2 	payment plan. 
38.3 	(b) The commissioner may cancel at any time as uncollectible any amount due, or 
38.4 	any portion of an amount due, from an employer under this chapter or section  116L.20, 
38.5 	that (1) are uncollectible due to death or bankruptcy, (2) the Minnesota Collection 
38.6 	Enterprise Division of the Department of Revenue under section  16D.04 was unable to 
38.7 	collect, or (3) the commissioner determines that it is not in the public interest to pursue 
38.8 	collection of the amount due. 

38.9 	Sec. 12. Minnesota Statutes 2006, section 268.07, subdivision 3b, is amended to read:
38.10 		Subd. 3b.Limitations on applications and benefit accounts. (a) A benefit 
38.11 	account shall be established An application for unemployment benefits is effective the 
38.12 	Sunday of the calendar week that the application for unemployment benefits was filed. 
38.13 	Upon specific request of an applicant, an application for unemployment benefits may be 
38.14 	backdated one calendar week prior to before the Sunday of the week the application 
38.15 	was actually filed. An application shall may be backdated only if the applicant was 
38.16 	unemployed throughout the period of the backdating. If an individual attempted to file 
38.17 	an application for unemployment benefits, but was prevented from filing an application 
38.18 	by the department, the benefit account shall be application is effective the Sunday of the 
38.19 	calendar week the individual first attempted to file an application.
38.20 	(b) A benefit account established under subdivision 2 is effective the date the 
38.21 	application for unemployment benefits was effective. 
38.22 	(c) A benefit account, once established, may later be withdrawn only if:
38.23 	(1) a new application for unemployment benefits is filed and a new benefit account is 
38.24 	established at the time of the withdrawal; and
38.25 	(2) the applicant has not served a the nonpayable waiting week under section 
38.26 	268.085, subdivision 1, clause (5).
38.27 	A determination or amended determination pursuant to under section 268.101, that 
38.28 	was issued before the withdrawal of the benefit account, shall remain remains in effect 
38.29 	and shall is not be voided by the withdrawal of the benefit account. A determination of 
38.30 	disqualification ineligibility requiring subsequent earnings to satisfy the disqualification
38.31 	period of ineligibility under section 268.095, subdivision 10, shall apply applies to the 
38.32 	weekly unemployment benefit amount on the new benefit account.
38.33 	(c) (d) An application for unemployment benefits shall is not be allowed prior to
38.34 	before the Sunday following the expiration of the benefit year on a prior benefit account. 
39.1 	Except as allowed under paragraph (b), a an applicant may establish only one benefit 
39.2 	account each 52 calendar weeks.

39.3 	Sec. 13. Minnesota Statutes 2006, section 268.085, subdivision 1, is amended to read:
39.4 		Subdivision 1.Eligibility conditions. An applicant shall may be eligible to receive 
39.5 	unemployment benefits for any week if:
39.6 	(1) the applicant has an active benefit account and has filed a continued biweekly
39.7 	request for unemployment benefits for that week pursuant to under section 268.086;
39.8 	(2) the week for which unemployment benefits are requested is in the applicant's 
39.9 	benefit year;
39.10 	(3) the applicant was unemployed as defined in section 268.035, subdivision 26;
39.11 	(4) the applicant was able to work and was available for suitable employment, and 
39.12 	was actively seeking suitable employment. The applicant's weekly unemployment benefit 
39.13 	amount shall be is reduced one-fifth for each day the applicant is unable to work or is 
39.14 	unavailable for suitable employment. If the computation of the reduced unemployment 
39.15 	benefits is not a whole dollar, it shall be is rounded down to the next lower whole dollar.
39.16 	This clause shall does not apply to an applicant who is in reemployment assistance 
39.17 	training, or each day the applicant is on jury duty or serving as an election judge;
39.18 	(5) the applicant has served a nonpayable waiting period of one week that the 
39.19 	applicant is otherwise entitled to some amount of unemployment benefits. This clause 
39.20 	shall does not apply if the applicant would have been entitled to federal disaster 
39.21 	unemployment assistance because of a disaster in Minnesota, but for the applicant's 
39.22 	establishment of a benefit account under section 268.07; and
39.23 	(6) the applicant has been participating in reemployment assistance services, such as 
39.24 	job search and resume writing classes, if the applicant has been determined in need of 
39.25 	reemployment assistance services by the commissioner, unless there is the applicant has
39.26 	good cause for the applicant's failure failing to participate.

39.27 	Sec. 14. Minnesota Statutes 2006, section 268.085, subdivision 9, is amended to read:
39.28 		Subd. 9.Business owners. Wage credits from an employer may not be used for 
39.29 	unemployment benefit purposes by any applicant who:
39.30 	(1) individually, jointly, or in combination with the applicant's spouse, parent, or 
39.31 	child owns or controls directly or indirectly 25 percent or more interest in the employer, or 
39.32 	is the spouse, parent, or minor child of any individual who owns or controls directly or 
39.33 	indirectly 25 percent or more interest in the employer; and
40.1 	(2) is temporarily, seasonally, or indefinitely unemployed and not permanently 
40.2 	separated from the employment.
40.3 	This subdivision is effective when the applicant has been paid four times the 
40.4 	applicant's weekly unemployment benefit amount in the current benefit year.

40.5 	Sec. 15. Minnesota Statutes 2006, section 268.085, subdivision 13c, is amended to 
40.6 	read:
40.7 		Subd. 13c.Offers of suitable employment. (a) An applicant shall be is ineligible 
40.8 	for all unemployment benefits for eight calendar weeks if the applicant, without good 
40.9 	cause:
40.10 	(1) failed to apply for available, suitable employment of which the applicant was 
40.11 	advised by the commissioner or an employer;
40.12 	(2) failed to accept suitable employment when offered; or
40.13 	(3) avoided an offer of suitable employment.
40.14 	(b) "Good cause" is a reason that would cause a reasonable individual who wants 
40.15 	suitable employment to fail to apply for, accept, or avoid suitable employment. Good 
40.16 	cause includes:
40.17 	(1) the applicant is employed in other suitable employment;
40.18 	(2) the applicant is in reemployment assistance training;
40.19 	(3) the applicant formerly worked for the employer and the loss of employment 
40.20 	occurred prior to the commencement of a labor dispute, was permanent or for an indefinite 
40.21 	period, and the applicant failed to apply for or accept the employment because a labor 
40.22 	dispute was in progress at the establishment; or
40.23 	(4) the applicant formerly worked for the employer and quit that employment 
40.24 	because of a good reason caused by the employer.
40.25 	(c) This subdivision only applies to offers of suitable employment with a new or a 
40.26 	former employer and does not apply to any type of job transfers, position reassignments, 
40.27 	or changes in job duties or responsibilities during the course of employment with an 
40.28 	employer.
40.29 	(d) The period of ineligibility under this subdivision and section 268.095 shall begin
40.30 	begins the Sunday of the week the applicant failed to apply for, failed to accept, or avoided 
40.31 	suitable employment without good cause.
40.32 	(e) This subdivision and section 268.095 shall apply applies to offers of suitable 
40.33 	employment that occur prior to before the effective date of the benefit account and that 
40.34 	occur during the benefit year.
41.1 	(f) This subdivision and section 268.095 shall only apply applies to offers of suitable 
41.2 	employment that are considered covered employment under section 268.035, subdivision 
41.3 	12.

41.4 	Sec. 16. Minnesota Statutes 2006, section 268.086, subdivision 2, is amended to read:
41.5 		Subd. 2.Continued biweekly request for unemployment benefits defined. A 
41.6 	continued biweekly request for unemployment benefits is a certification by an applicant, 
41.7 	done on a weekly or biweekly basis as the commissioner designates, that the applicant is 
41.8 	unemployed and meets the ongoing eligibility requirements for unemployment benefits 
41.9 	under section 268.085 for a specific week or two-week period. A continued biweekly
41.10 	request shall must include information on possible issues of eligibility and disqualification
41.11 	ineligibility in accordance with section 268.101, subdivision 1, paragraph (c).

41.12 	Sec. 17. Minnesota Statutes 2006, section 268.086, subdivision 7, is amended to read:
41.13 		Subd. 7.In-person continued biweekly request for unemployment benefits. The 
41.14 	commissioner may require any applicant who has been designated to make a continued 
41.15 	biweekly request for unemployment benefits by telephone, by electronic transmission, or 
41.16 	by mail to appear for a personal interview at a place, time, and date designated, during 
41.17 	which a written continued biweekly request for unemployment benefits form shall must be 
41.18 	completed and submitted by the applicant.
41.19 	An applicant shall be is ineligible for unemployment benefits for the week or 
41.20 	biweekly period covered by a continued biweekly request and the benefit account shall 
41.21 	be is considered inactive if the applicant fails, without good cause, to comply with the 
41.22 	requirement that the applicant appear for a personal interview and at that time complete 
41.23 	and submit a written continued biweekly request form.

41.24 	Sec. 18. Minnesota Statutes 2006, section 268.105, subdivision 4, is amended to read:
41.25 		Subd. 4.Testimonial powers Oaths; subpoenas. An unemployment law judge may
41.26 	has authority to administer oaths and affirmations, take depositions, and issue subpoenas 
41.27 	to compel the attendance of witnesses and the production of documents and other personal 
41.28 	property considered necessary as evidence in connection with the subject matter of 
41.29 	an evidentiary hearing. The subpoenas shall be are enforceable through the district 
41.30 	court in the district that the subpoena is issued Ramsey County. Witnesses subpoenaed, 
41.31 	other than an involved applicant or involved employer or officers and employees of an 
41.32 	involved employer, shall must be paid by the department the same witness fees as in a 
41.33 	civil action in district court.

42.1 	Sec. 19. Minnesota Statutes 2006, section 268.188, is amended to read:
42.2 	268.188 SUBPOENAS; OATHS.
42.3 	(a) The commissioner shall have power has authority to administer oaths and 
42.4 	affirmations, take depositions, certify to official acts, and issue subpoenas to compel 
42.5 	the attendance of individuals and the production of documents and other personal 
42.6 	property necessary in connection with the administration of the Minnesota unemployment 
42.7 	insurance program.
42.8 	(b) Individuals subpoenaed, other than applicants or officers and employees of an 
42.9 	employer that is the subject of the inquiry, shall be allowed are paid witness fees the same 
42.10 	as witness fees in civil actions in district court. The fees need not be paid in advance.
42.11 	(c) The subpoena shall be is enforceable through the district court in the district that 
42.12 	the subpoena is issued Ramsey County.

42.13 	Sec. 20. Minnesota Statutes 2006, section 268.19, subdivision 1, is amended to read:
42.14 		Subdivision 1.Use of data. (a) Except as otherwise provided by this section, 
42.15 	data gathered from any person pursuant to under the administration of the Minnesota 
42.16 	Unemployment Insurance Law are private data on individuals or nonpublic data not on 
42.17 	individuals as defined in section 13.02, subdivisions 9 and 12, and may not be disclosed 
42.18 	except pursuant according to a district court order or section 13.05. A subpoena shall is
42.19 	not be considered a district court order. These data may be disseminated to and used by 
42.20 	the following agencies without the consent of the subject of the data:
42.21 	(1) state and federal agencies specifically authorized access to the data by state 
42.22 	or federal law;
42.23 	(2) any agency of any other state or any federal agency charged with the 
42.24 	administration of an unemployment insurance program;
42.25 	(3) any agency responsible for the maintenance of a system of public employment 
42.26 	offices for the purpose of assisting individuals in obtaining employment;
42.27 	(4) the public authority responsible for child support in Minnesota or any other 
42.28 	state in accordance with section 256.978;
42.29 	(4) (5) human rights agencies within Minnesota that have enforcement powers;
42.30 	(5) (6) the Department of Revenue only to the extent necessary for its duties under 
42.31 	Minnesota laws;
42.32 	(6) (7) public and private agencies responsible for administering publicly financed 
42.33 	assistance programs for the purpose of monitoring the eligibility of the program's 
42.34 	recipients;
43.1 	(7) (8) the Department of Labor and Industry and the Division of Insurance 
43.2 	Fraud Prevention in the Department of Commerce on an interchangeable basis with the 
43.3 	department for uses consistent with the administration of their duties under Minnesota law;
43.4 	(8) (9) local and state welfare agencies for monitoring the eligibility of the data 
43.5 	subject for assistance programs, or for any employment or training program administered 
43.6 	by those agencies, whether alone, in combination with another welfare agency, or in 
43.7 	conjunction with the department or to monitor and evaluate the statewide Minnesota 
43.8 	family investment program by providing data on recipients and former recipients of food 
43.9 	stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care 
43.10 	assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
43.11 	(9) (10) local and state welfare agencies for the purpose of identifying employment, 
43.12 	wages, and other information to assist in the collection of an overpayment debt in an 
43.13 	assistance program;
43.14 	(10) (11) local, state, and federal law enforcement agencies for the sole purpose of 
43.15 	ascertaining the last known address and employment location of a person an individual
43.16 	who is the subject of a criminal investigation;
43.17 	(11) (12) the federal Bureau of Citizenship and Immigration and Naturalization 
43.18 	Service shall have Services has access to data on specific individuals and specific 
43.19 	employers provided the specific individual or specific employer is the subject of an 
43.20 	investigation by that agency; and
43.21 	(12) (13) the Department of Health solely for the purposes of epidemiologic 
43.22 	investigations.
43.23 	(b) Data on individuals and employers that are collected, maintained, or used by 
43.24 	the department in an investigation pursuant to under section 268.182 are confidential 
43.25 	as to data on individuals and protected nonpublic data not on individuals as defined in 
43.26 	section 13.02, subdivisions 3 and 13, and must not be disclosed except pursuant to under
43.27 	statute or district court order or to a party named in a criminal proceeding, administrative 
43.28 	or judicial, for preparation of a defense.
43.29 	(c) Data gathered by the department pursuant to in the administration of the 
43.30 	Minnesota unemployment insurance program must not be made the subject or the basis for 
43.31 	any suit in any civil proceedings, administrative or judicial, unless the action is initiated 
43.32 	by the department.

43.33 	Sec. 21. Minnesota Statutes 2006, section 268.194, subdivision 2, is amended to read:
43.34 		Subd. 2.Commissioner of finance to be custodian; separate accounts. (a) The 
43.35 	commissioner of finance shall be is the treasurer and custodian of the trust fund, and shall 
44.1 	administer the trust fund in accordance with the directions of the commissioner, and 
44.2 	issue warrants upon it. The commissioner of finance shall maintain within the trust fund 
44.3 	three separate accounts:
44.4 	(1) a clearing account;
44.5 	(2) an unemployment trust fund account; and
44.6 	(3) an unemployment benefit payment account.
44.7 	All money payable to the trust fund, upon receipt by the commissioner, shall must be 
44.8 	forwarded to the commissioner of finance who shall immediately deposit the money in 
44.9 	the clearing account. All money in the clearing account, after clearance, shall must be 
44.10 	deposited to the credit of Minnesota's account in the federal unemployment trust fund. Tax 
44.11 	refunds payable pursuant to under section  268.057 may be paid from the clearing account 
44.12 	or the unemployment benefit payment account. 
44.13 	(b) The unemployment benefit payment account shall consist consists of all money 
44.14 	requisitioned from Minnesota's account in the federal unemployment trust fund for the 
44.15 	payment of unemployment benefits. Money in the clearing and unemployment benefit 
44.16 	payment accounts may be deposited by the commissioner of finance, under the direction 
44.17 	of the commissioner, in any depository bank that general funds of Minnesota may be 
44.18 	deposited, but no public deposit insurance charge or premium shall may be paid out of 
44.19 	the trust fund. Money in the clearing and unemployment benefit payment accounts shall
44.20 	must be maintained in separate accounts on the books of the depository bank. This money 
44.21 	shall must be secured by the depository bank to the same extent and in the same manner 
44.22 	as required by the general depository law of Minnesota.

44.23 	Sec. 22. Minnesota Statutes 2006, section 268.194, subdivision 3, is amended to read:
44.24 		Subd. 3.Exclusive use. (a) Money requisitioned from Minnesota's account in 
44.25 	the federal unemployment trust fund shall must be used exclusively for the payment of 
44.26 	unemployment benefits and for tax refunds pursuant to under section  268.057, except that 
44.27 	money credited to Minnesota's account pursuant to under United States Code, title 42, 
44.28 	section 1103 of the Social Security Act, also known as the Reed Act, may be used for 
44.29 	the payment of expenses of administration. The commissioner shall from time to time
44.30 	may requisition from the federal unemployment trust fund the amounts necessary for the 
44.31 	payment of unemployment benefits and tax refunds for a reasonable future period. Upon 
44.32 	receipt the commissioner of finance shall deposit the money in the unemployment benefit 
44.33 	payment account and issue warrants for the payment of unemployment benefits solely 
44.34 	from the unemployment benefit payment account. 
45.1 	(b) Expenditures of money in the unemployment benefit payment account and 
45.2 	tax refunds from the clearing account shall are not be subject to any provisions of law 
45.3 	requiring specific appropriations or other formal release by state officers.
45.4 	(c) All warrants issued for the payment of unemployment benefits and tax refunds 
45.5 	shall bear the signature of the commissioner of finance and the counter signature of the 
45.6 	commissioner.

45.7 	Sec. 23. Minnesota Statutes 2006, section 268.196, subdivision 3, is amended to read:
45.8 		Subd. 3.Contingent account. (a) There is hereby created in the state treasury a 
45.9 	special account, to be known as the contingent account, that shall does not lapse nor 
45.10 	revert to any other trust fund or account. This account shall consist consists of all money 
45.11 	appropriated therefor by the legislature, all money in the form of interest and penalties
45.12 	collected pursuant to sections  268.057,  268.18, and  268.184, all money received in the 
45.13 	form of voluntary contributions to this account under this chapter that is required to be 
45.14 	placed in this account, and any interest earned on the account. All money in this account 
45.15 	shall be is supplemental to all federal money available to the commissioner. Money in 
45.16 	this account is hereby appropriated to the commissioner and shall be is available to the 
45.17 	commissioner for those expenditures the commissioner considers necessary in connection 
45.18 	with the administration of the Minnesota unemployment insurance program. 
45.19 	(b) Whenever the commissioner spends money from the contingent account for the 
45.20 	administration of the Minnesota unemployment insurance program for which money will 
45.21 	later be made available by the federal government, the contingent account shall, when 
45.22 	money is available, be reimbursed from the administration account. The commissioner 
45.23 	shall certify to the commissioner of finance the amount of the reimbursement and the 
45.24 	commissioner of finance shall transfer that amount from the administration account to 
45.25 	the contingent account.
45.26 	(c) All money in this account shall must be deposited, administered, and disbursed 
45.27 	in the same manner and under the same conditions and requirements as is provided by law 
45.28 	for the other special accounts in the state treasury. On June 30 of each year, all amounts in 
45.29 	excess of $300,000 in this account shall must be paid over to the unemployment insurance
45.30 	trust fund.

45.31 	Sec. 24. REVISOR'S INSTRUCTION.
 45.32 	(a) The revisor of statutes shall change the word "attorney" to "attorney licensed 
45.33 	to practice law in Minnesota" in Minnesota Statutes, sections 268.067 and 268.105, 
45.34 	subdivision 7.
46.1 	(b) The revisor of statutes shall change the term "common law burden of proof" to 
46.2 	"burden of proof" in Minnesota Statutes, section 268.069.
46.3 	(c) The revisor of statutes shall change the term "continued biweekly request" to 
46.4 	"continued request" in Minnesota Statutes, chapter 268.
46.5 	(d) The revisor of statutes shall change the term "14 days" to "14 calendar days" in 
46.6 	Minnesota Statutes, section 268.086.
46.7 	(e) The revisor of statutes shall change the term "electronic mail address" to 
46.8 	"electronic mail address or telephone number" in Minnesota Statutes, section 268.086. 

46.9 	Sec. 25. EFFECTIVE DATE.
 46.10 	Sections 1 to 7 and 9 to 24 are effective September 30, 2007, except for section 24, 
46.11 	paragraph (e), which is effective the day following final enactment. Section 8 is effective 
46.12 	the day following final enactment.

46.13 	ARTICLE 4
46.14 	ADMINISTRATIVE RULES INCORPORATED INTO STATUTES

46.15 	Section 1. STATEMENT OF INTENT.
 46.16 	This article incorporates long-standing administrative rules into the statute. This 
46.17 	incorporation is not intended to effect the application or interpretation of any provision.

46.18 	Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 15, is amended to read:
46.19 		Subd. 15.Employment. (a) "Employment" means service performed by:
46.20 	(1) an individual who is considered an employee under the common law of 
46.21 	employer-employee and not considered an independent contractor;
46.22 	(2) an officer of a corporation;
46.23 	(3) a member of a limited liability company who is considered an employee under 
46.24 	the common law of employer-employee; or
46.25 	(4) product demonstrators in retail stores or other locations to aid in the sale of 
46.26 	products. The person that pays the wages is considered the employer; or
46.27 	(5) an individual who performs services for a person for compensation, as:
46.28 	(i) an agent-driver or commission-driver engaged in distributing meat products, 
46.29 	vegetable products, fruit products, beverages, or laundry or dry cleaning services; or
46.30 	(ii) a traveling or city salesperson, other than as an agent-driver or commission-driver, 
46.31 	engaged full-time in the solicitation on behalf of the person, of orders from wholesalers, 
46.32 	retailers, contractors, or operators of hotels, restaurants, or other similar establishments for 
46.33 	merchandise for resale or supplies for use in their business operations.
47.1 	This clause shall apply applies only if the contract of service provides that 
47.2 	substantially all of the services are to be performed personally by the individual, and the 
47.3 	services are part of a continuing relationship with the person for whom the services are 
47.4 	performed, and the individual does not have a substantial investment in facilities used in 
47.5 	connection with the performance of the services, other than facilities for transportation.
47.6 	(b) Employment does not include service as a juror.

47.7 	Sec. 3. Minnesota Statutes 2006, section 268.035, is amended by adding a subdivision 
47.8 	to read:
47.9 		Subd. 25b.Trucking industry/independent contractors. In the trucking industry, 
47.10 	an owner-operator of a vehicle that is licensed and registered as a truck, tractor, or 
47.11 	truck-tractor by a governmental motor vehicle regulatory agency is an independent 
47.12 	contractor, and is not considered an employee, while performing services in the operation 
47.13 	of the truck only if each of the following factors is present:
47.14 	(1) the individual owns the equipment or holds it under a bona fide lease arrangement;
47.15 	(2) the individual is responsible for the maintenance of the equipment;
47.16 	(3) the individual bears the principal burdens of the operating costs, including fuel, 
47.17 	repairs, supplies, vehicle insurance, and personal expenses while on the road;
47.18 	(4) the individual is responsible for supplying the necessary personal services 
47.19 	to operate the equipment;
47.20 	(5) the individual's compensation is based on factors related to the work performed, 
47.21 	such as a percentage of any schedule of rates, and not on the basis of the hours or time 
47.22 	expended; and
47.23 	(6) the individual enters into a written contract that specifies the relationship to be 
47.24 	that of an independent contractor and not that of an employee.

47.25 	Sec. 4. Minnesota Statutes 2006, section 268.035, subdivision 29, is amended to read:
47.26 		Subd. 29.Wages. (a) "Wages" means all compensation for services, including 
47.27 	commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and 
47.28 	holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by 
47.29 	a customer of an employer and accounted for by the employee to the employer; sickness 
47.30 	and accident disability payments, except as otherwise provided in this subdivision; and the 
47.31 	cash value of all compensation in any medium other than cash housing, utilities, meals, 
47.32 	exchanges of services, and any other goods and services provided to compensate for 
47.33 	an employee's services, except:
48.1 	(1) the amount of any payment made to, or on behalf of, an employee under a plan 
48.2 	established by an employer that makes provision for employees generally or for a class 
48.3 	or classes of employees, including any amount paid by an employer for insurance or 
48.4 	annuities, or into a plan, to provide for a payment, on account of (i) retirement or (ii) 
48.5 	medical and hospitalization expenses in connection with sickness or accident disability, 
48.6 	or (iii) death;
48.7 	(2) the payment by an employer of the tax imposed upon an employee under United 
48.8 	States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect 
48.9 	to compensation paid to an employee for domestic employment in a private household of 
48.10 	the employer or for agricultural employment;
48.11 	(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or 
48.12 	to a trust described in United States Code, title 26, section 401(a) of the federal Internal 
48.13 	Revenue Code, that is exempt from tax under section 501(a) at the time of the payment 
48.14 	unless the payment is made to an employee of the trust as compensation for services as an 
48.15 	employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at 
48.16 	the time of the payment, is a plan described in section 403(a);
48.17 	(4) the value of any special discount or markdown allowed to an employee on goods 
48.18 	purchased from or services supplied by the employer where the purchases are optional and 
48.19 	do not constitute regular or systematic payment for services;
48.20 	(5) customary and reasonable directors' fees paid to individuals who are not 
48.21 	otherwise employed by the corporation of which they are directors;
48.22 	(6) the payment to employees for reimbursement of meal expenses when employees 
48.23 	are required to perform work after their regular hours;
48.24 	(7) the payment into a trust or plan for purposes of providing legal or dental services 
48.25 	if provided for all employees generally or for a class or classes of employees;
48.26 	(8) the value of parking facilities provided or paid for by an employer, in whole or in 
48.27 	part, if provided for all employees generally or for a class or classes of employees;
48.28 	(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, 
48.29 	or other right;
48.30 	(10) advances or reimbursements for traveling or other bona fide ordinary and 
48.31 	necessary expenses incurred or reasonably expected to be incurred in the business of the 
48.32 	employer. Traveling and other reimbursed expenses must be identified either by making 
48.33 	separate payments or by specifically indicating the separate amounts where both wages 
48.34 	and expense allowances are combined in a single payment;
49.1 	(11) residual payments to radio, television, and similar artists that accrue after 
49.2 	the production of television commercials, musical jingles, spot announcements, radio 
49.3 	transcriptions, film sound tracks, and similar activities;
49.4 	(12) supplemental unemployment benefits paid under a plan established by an 
49.5 	employer, that makes provisions for employees generally or for a class or classes of 
49.6 	employees for the supplementing of unemployment benefits under the written terms 
49.7 	of an agreement, contract, trust arrangement, or other instrument if the plan provides 
49.8 	benefits that are only supplemental to, and does not replace or duplicate any state or 
49.9 	federal unemployment benefits. The plan must provide that funds are paid solely for the 
49.10 	supplementing of state or federal unemployment benefits. The plan must provide that any 
49.11 	supplemental benefits are payable only if the applicant has applied for all unemployment 
49.12 	benefits available. The plan must provide that supplemental benefits, when combined with 
49.13 	the applicant's weekly unemployment benefits available, may not exceed the applicant's 
49.14 	regular weekly pay. The plan must not allow the assignment of supplemental benefits or 
49.15 	payment upon the employee's withdrawal from the plan, or quitting of employment or the 
49.16 	termination of the plan. The plan must not require any consideration from the applicant 
49.17 	and must not be designed for the purpose of avoiding the payment of Social Security 
49.18 	obligations, or unemployment taxes on money disbursed from the plan;
49.19 	(13) sickness or accident disability payments made by the employer after the 
49.20 	expiration of six calendar months following the last calendar month that the individual 
49.21 	worked for the employer;
49.22 	(5) (14) disability payments made under the provisions of any workers' compensation 
49.23 	law;
49.24 	(6) (15) sickness or accident disability payments made by a third party payer such as 
49.25 	an insurance company; or
49.26 	(7) (16) payments made into a trust fund, or for the purchase of insurance or an 
49.27 	annuity, to provide for sickness or accident disability payments to employees pursuant 
49.28 	to under a plan or system established by the employer that provides for the employer's 
49.29 	employees generally or for a class or classes of employees; or.
49.30 	(8) (b) Nothing in this subdivision shall exclude excludes from the term "wages" any 
49.31 	payment made under any type of salary reduction agreement, including payments made 
49.32 	under a cash or deferred arrangement and cafeteria plan, as defined in United States Code, 
49.33 	title 26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that 
49.34 	the employee has the option to receive the payment in cash.
49.35 	(c) Wages includes payments made for services as a caretaker. Unless there is a 
49.36 	contract or other proof to the contrary, compensation is considered as being equally 
50.1 	received by a married couple where the employer makes payment to only one spouse, or 
50.2 	by all tenants of a household who perform services where two or more individuals share 
50.3 	the same dwelling and the employer makes payment to only one individual.
50.4 	(d) Wages includes payments made for services by a migrant family. Where services 
50.5 	are performed by a married couple or a family and an employer makes payment to only 
50.6 	one individual, each worker is considered as having received an equal share of the 
50.7 	compensation unless there is a contract or other proof to the contrary.
50.8 	(e) Wages includes advances or draws against future earnings, when paid, unless 
50.9 	the payments are designated as a loan or return of capital on the books of the employer 
50.10 	at the time of payment.
50.11 	(f) Wages includes payments made by a subchapter "S" corporation, as organized 
50.12 	under the Internal Revenue Code, to or on behalf of officers and shareholders that are 
50.13 	reasonable compensation for services performed for the corporation.
50.14 	For a subchapter "S" corporation, wages does not include:
50.15 	(1) a loan for business purposes to an officer or shareholder evidenced by a 
50.16 	promissory note signed by an officer before the payment of the loan proceeds and recorded 
50.17 	on the books and records of the corporation as a loan to an officer or shareholder;
50.18 	(2) a repayment of a loan or payment of interest on a loan made by an officer to the 
50.19 	corporation and recorded on the books and records of the corporation as a liability;
50.20 	(3) a reimbursement of reasonable corporation expenses incurred by an officer and 
50.21 	documented by a written expense voucher and recorded on the books and records of 
50.22 	the corporation as corporate expenses; and
50.23 	(4) a reasonable lease or rental payment to an officer who owns property that is 
50.24 	leased or rented to the corporation.

50.25 	Sec. 5. Minnesota Statutes 2006, section 268.042, subdivision 1, is amended to read:
50.26 		Subdivision 1.Employer registration. (a) Each employer shall must, upon or 
50.27 	before the submission of its first wage detail report under section 268.044, register with 
50.28 	the commissioner for a tax account or a reimbursable account, by electronic transmission 
50.29 	in a format prescribed by the commissioner. The employer must provide all required 
50.30 	information for registration, including the actual physical street and city address of the 
50.31 	employer.
50.32 	(b) Within 30 calendar days, each employer must notify the commissioner by 
50.33 	electronic transmission, in a format prescribed, of a change in legal entity, of the 
50.34 	transfer, sale, or acquisition of a business conducted in Minnesota, in whole or in part, 
50.35 	if the transaction results in the creation of a new or different employer or affects the 
51.1 	establishment of employer accounts, the assignment of tax rates, or the transfer of 
51.2 	experience rating history.
51.3 	(c) Except as provided in subdivision 3, any person that is or becomes an employer 
51.4 	subject to the Minnesota Unemployment Insurance Law because of the application of 
51.5 	section 268.035, subdivision 20, clause (14), (17), or (33), within any calendar year shall 
51.6 	be is considered to be subject to this chapter the entire calendar year.
51.7 	(c) Upon (d) Within 30 calendar days of the termination of business, an employer 
51.8 	that has been assigned a tax account or reimbursable account shall must notify the 
51.9 	commissioner by electronic transmission, in a format prescribed by the commissioner, 
51.10 	that the employer no longer has employees and does not intend or expect to pay wages 
51.11 	to any employees in the next calendar year and into the foreseeable future. Upon such
51.12 	notification, the commissioner shall not require the employer is no longer required to file 
51.13 	wage detail reports under section 268.044, subdivision 1, paragraph (d).
51.14 	(e) An employer that has terminated business regains its previous tax account under 
51.15 	section 268.045, with the experience rating history of that account, if the employer again 
51.16 	commences business and if:
51.17 	(1) less than 14 calendar quarters have elapsed in which no wages were paid for 
51.18 	covered employment;
51.19 	(2) the experience rating history regained contains taxable wages; and
51.20 	(3) the experience rating history has not been transferred to a successor under 
51.21 	section 268.051, subdivision 4.

51.22 	Sec. 6.  REPEALER.
 51.23 	Minnesota Rules, parts 3315.0210; 3315.0220; 3315.0515; 3315.0520; 3315.0525; 
51.24 	3315.0530, subparts 2, 3, 4, 5, and 6; 3315.0540; 3315.0550; 3315.0910, subparts 1, 2, 
51.25 	3, 4, 5, 6, 7, and 8; 3315.1005, subparts 1 and 3; 3315.1315, subpart 4; 3315.2010; and 
51.26 	3315.2810, subparts 2 and 4, are repealed.

51.27 	Sec. 7. EFFECTIVE DATE.
 51.28 	Sections 1 to 6 are effective September 30, 2007.

51.29 	ARTICLE 5
51.30 	TERMINOLOGY CHANGE

51.31 	Section 1. STATEMENT OF INTENT.
 51.32 	This article substitutes the term "disqualify" or similar terms with the term 
51.33 	"ineligible" or similar terms in Minnesota Statutes, chapter 268. Both terms are currently 
52.1 	used throughout the unemployment insurance law. This substitution is not intended as 
52.2 	a substantive change. It is done for simplification, to achieve consistency and avoid 
52.3 	confusion, as the terms have the same common meaning and the same effect under the 
52.4 	statute.

52.5 	Sec. 2. Minnesota Statutes 2006, section 268.035, subdivision 12, is amended to read:
52.6 		Subd. 12.Covered employment. "Covered employment" means the following 
52.7 	unless excluded as "noncovered employment" under subdivision 20:
52.8 	(1) an employee's entire employment during the calendar quarter if:
52.9 	(i) the employment is performed entirely in Minnesota;
52.10 	(ii) the employment is performed primarily in Minnesota, and the employment 
52.11 	performed outside Minnesota is incidental to the employment in Minnesota; or
52.12 	(iii) the employment is not performed primarily in any one state but some of the 
52.13 	employment is performed in Minnesota and the base of operations or the place from which 
52.14 	the employment is directed or controlled is in Minnesota; or the base of operations or 
52.15 	place from which the employment is directed or controlled is not in any state in which
52.16 	where part of the employment is performed, but the employee's residence is in Minnesota;
52.17 	(2) an employee's employment during the calendar quarter wherever performed 
52.18 	within the United States or Canada, if:
52.19 	(i) the employment is not covered under the unemployment insurance program of 
52.20 	any other state or Canada; and
52.21 	(ii) the place from which the employment is directed or controlled is in Minnesota;
52.22 	(3) the employment during the calendar quarter of an employee who is a citizen of 
52.23 	the United States, performed outside the United States, except in Canada, in the employ of 
52.24 	an American employer if:
52.25 	(i) the employer's principal place of business in the United States is located in 
52.26 	Minnesota;
52.27 	(ii) the employer has no place of business in the United States, but the employer 
52.28 	is an individual who is a resident of Minnesota, or the employer is a corporation that is 
52.29 	organized under the laws of Minnesota, or the employer is a partnership or a trust and the 
52.30 	number of partners or trustees who are residents of Minnesota is greater than the number 
52.31 	who are residents of any one other state;
52.32 	(iii) none of the criteria of subclauses (i) and (ii) is met but the employer has elected 
52.33 	coverage in Minnesota, or the employer having failed to elect coverage in any state, 
52.34 	an applicant has made an application for unemployment benefits under section    268.07, 
52.35 	based on the employment; 
53.1 	(iv) an "American employer," for the purposes of this subdivision, means an 
53.2 	individual who is a resident of the United States, or a partnership if two-thirds or more 
53.3 	of the partners are residents of the United States, or a trust, if all of the trustees are 
53.4 	residents of the United States, or a corporation organized under the laws of the United 
53.5 	States, or of any state; or
53.6 	(v) as used in this subdivision, the term "United States" includes the states, the 
53.7 	District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands;
53.8 	(4) all employment during the calendar quarter performed by an officer or member 
53.9 	of the crew of an American vessel on or in connection with the vessel, if the operating 
53.10 	office from which the operations of the vessel operating on navigable waters within, or 
53.11 	within and without, the United States are ordinarily and regularly supervised, managed, 
53.12 	directed, and controlled is in Minnesota; and
53.13 	(5) for the purposes of satisfying disqualifications the period of ineligibility under 
53.14 	section    268.095, subdivision 10, "covered employment" shall include includes covered 
53.15 	employment under an unemployment insurance program of any other state or employment 
53.16 	covered under an unemployment insurance program established by an act of Congress. 

53.17 	Sec. 3. Minnesota Statutes 2006, section 268.069, subdivision 1, is amended to read:
53.18 		Subdivision 1.Requirements. The commissioner shall pay unemployment benefits 
53.19 	from the trust fund to an applicant who has met each of the following requirements:
53.20 	(1) the applicant has filed an application for unemployment benefits and established 
53.21 	a benefit account in accordance with section 268.07;
53.22 	(2) the applicant is has not subject to a disqualification from been held ineligible for
53.23 	unemployment benefits under section 268.095 because of a quit or discharge;
53.24 	(3) the applicant has met all of the ongoing eligibility requirements under sections 
53.25 	268.085 and 268.086;
53.26 	(4) the applicant does not have an outstanding overpayment of unemployment 
53.27 	benefits, including any penalties or interest; and
53.28 	(5) the applicant is has not been held ineligible for unemployment benefits under 
53.29 	section 268.182 because of a false representation or concealment of facts.

53.30 	Sec. 4. Minnesota Statutes 2006, section 268.095, subdivision 4, is amended to read:
53.31 		Subd. 4.Discharge. An applicant who was discharged from employment by an 
53.32 	employer shall be disqualified from is ineligible for all unemployment benefits according 
53.33 	to subdivision 10 only if:
54.1 	(1) the applicant was discharged because of employment misconduct as defined 
54.2 	in subdivision 6; or
54.3 	(2) the applicant was discharged because of aggravated employment misconduct as 
54.4 	defined in subdivision 6a.

54.5 	Sec. 5. Minnesota Statutes 2006, section 268.095, subdivision 7, is amended to read:
54.6 		Subd. 7.Act or omissions after separation. An applicant shall may not be 
54.7 	disqualified from held ineligible for unemployment benefits under section 268.085, 
54.8 	subdivision 13c, and this section for any acts or omissions occurring after the applicant's 
54.9 	separation from employment with the employer. A layoff due to because of lack of work 
54.10 	is considered a separation from employment.

54.11 	Sec. 6. Minnesota Statutes 2006, section 268.095, subdivision 10, is amended to read:
54.12 		Subd. 10.Disqualification Ineligibility duration. (a) A disqualification
54.13 	Ineligibility from the payment of all unemployment benefits under subdivisions 1 and 
54.14 	4 shall be is for the duration of the applicant's unemployment and until the end of the 
54.15 	calendar week that the applicant had total earnings in subsequent covered employment of 
54.16 	eight times the applicant's weekly unemployment benefit amount.
54.17 	(b) Any disqualification Ineligibility imposed under subdivisions 1 and 4 shall begin
54.18 	begins on the Sunday of the week that the applicant became separated from employment.
54.19 	(c) In addition to paragraph (a), if the applicant was discharged from employment 
54.20 	because of aggravated employment misconduct, wage credits from that employment 
54.21 	shall be are canceled.

54.22 	Sec. 7. Minnesota Statutes 2006, section 268.101, is amended to read:
54.23 	268.101 DETERMINATIONS ON ISSUES OF DISQUALIFICATION AND 
54.24 	ELIGIBILITY INELIGIBILITY.
54.25 		Subdivision 1.Notification. (a) In an application for unemployment benefits, 
54.26 	each applicant shall must report the name and the reason for no longer working for the 
54.27 	applicant's most recent employer, as well as the names of all employers and the reasons 
54.28 	for no longer working for all employers during the six calendar months prior to before
54.29 	the date of the application. If the reason reported for no longer working for any of those 
54.30 	employers is other than a layoff due to because of lack of work, that shall raise raises
54.31 	an issue of disqualification ineligibility that the department shall must determine. An 
54.32 	applicant shall must report any offers of employment refused during the eight calendar 
54.33 	weeks prior to before the date of the application for unemployment benefits and the name 
55.1 	of the employer that made the offer. An applicant's failure to report the name of an 
55.2 	employer, or giving an incorrect reason for no longer working for an employer, or failing 
55.3 	to disclose an offer of employment that was refused, shall be considered is a violation of 
55.4 	section 268.182, subdivision 2.
55.5 	In an application, the applicant shall must  also provide all information necessary to 
55.6 	determine the applicant's eligibility for unemployment benefits under section 268.085 this 
55.7 	chapter. If the applicant fails or refuses to provide information necessary to determine 
55.8 	the applicant's eligibility for unemployment benefits under section 268.085, the applicant 
55.9 	shall be is ineligible for unemployment benefits under section 268.085, subdivision 2, until 
55.10 	the applicant provides this required information.
55.11 	(b) Upon establishment of a benefit account under section 268.07, subdivision 2, the 
55.12 	commissioner shall notify, by mail or electronic transmission, all employers the applicant 
55.13 	was required to report on the application and all base period employers and determined 
55.14 	successors to those employers under section 268.051, subdivision 4, in order to provide the 
55.15 	employer an opportunity to raise, in a manner and format prescribed by the commissioner, 
55.16 	any issue of disqualification or any issue of eligibility ineligibility. An employer shall
55.17 	must be informed of the effect that failure to raise an issue of disqualification ineligibility 
55.18 	as a result of a quit or discharge of the applicant, within ten calendar days after sending of 
55.19 	the notice, as provided for under subdivision 2, paragraph (b), may have on the employer 
55.20 	under section 268.047.
55.21 	(c) Each applicant shall must report any employment, and loss of employment, and 
55.22 	offers of employment refused, during those weeks the applicant filed continued biweekly
55.23 	requests for unemployment benefits pursuant to under section 268.086. Each applicant 
55.24 	who stops filing continued biweekly requests during the benefit year and later begins 
55.25 	filing continued biweekly requests during that same benefit year shall must report the 
55.26 	name of any employer the applicant worked for during the period between the filing 
55.27 	of continued biweekly requests and the reason the applicant stopped working for the 
55.28 	employer. The applicant shall must report any offers of employment refused during the 
55.29 	period between the filing of continued biweekly requests for unemployment benefits. 
55.30 	Those employers from which the applicant has reported a loss of employment pursuant 
55.31 	to under this paragraph shall must be notified by mail or electronic transmission and 
55.32 	provided an opportunity to raise, in a manner prescribed by the commissioner, any issue 
55.33 	of disqualification or any issue of eligibility ineligibility. An employer shall must be 
55.34 	informed of the effect that failure to raise an issue of ineligibility as a result of a quit or a 
55.35 	discharge of the applicant may have on the employer under section 268.047.
56.1 	(d) The purpose for requiring the applicant to report the name of employers and the 
56.2 	reason for no longer working for those employers, or offers of employment refused, under 
56.3 	paragraphs (a) and (c) is for the commissioner to obtain information from an applicant 
56.4 	raising all issues that may have the potential of disqualifying result in the applicant from
56.5 	being ineligible for unemployment benefits under section 268.095, because of a quit or 
56.6 	discharge, or the applicant being ineligible for unemployment benefits under section 
56.7 	268.085, subdivision 13c. If the reason given by the applicant for no longer working for 
56.8 	an employer is other than a layoff due to because of lack of work, that shall raise raises
56.9 	an issue of disqualification ineligibility and the applicant shall be is required, as part 
56.10 	of the determination process under subdivision 2, paragraph (a), to state all the facts 
56.11 	about the cause for no longer working for the employer, if known. If the applicant fails 
56.12 	or refuses to provide any required information, the applicant shall be is ineligible for 
56.13 	unemployment benefits under section 268.085, subdivision 2, until the applicant provides 
56.14 	this required information.
56.15 		Subd. 2.Disqualification Determination. (a) The commissioner shall determine 
56.16 	any issue of disqualification ineligibility raised by information required from an applicant 
56.17 	under subdivision 1, paragraph (a) or (c), and send to the applicant and any involved 
56.18 	employer, by mail or electronic transmission, a determination of disqualification eligibility
56.19 	or a determination of nondisqualification ineligibility, as is appropriate. The determination 
56.20 	shall on an issue of ineligibility as a result of a quit or a discharge of the applicant must
56.21 	state the effect on the employer under section 268.047. A determination shall must be 
56.22 	made pursuant to in accordance with this paragraph even if a notified employer has not 
56.23 	raised the issue of disqualification ineligibility.
56.24 	(b) The commissioner shall determine any issue of disqualification ineligibility
56.25 	raised by an employer and send to the applicant and that employer, by mail or electronic 
56.26 	transmission, a determination of disqualification eligibility or a determination of 
56.27 	nondisqualification ineligibility as is appropriate. The determination shall on an issue of 
56.28 	ineligibility as a result of a quit or discharge of the applicant must state the effect on the 
56.29 	employer under section 268.047.
56.30 	If a base period employer:
56.31 	(1) was not the applicant's most recent employer prior to before the application for 
56.32 	unemployment benefits;
56.33 	(2) did not employ the applicant during the six calendar months prior to before the 
56.34 	application for unemployment benefits; and
57.1 	(3) did not raise an issue of disqualification ineligibility as a result of a quit or 
57.2 	discharge of the applicant within ten calendar days of notification under subdivision 1, 
57.3 	paragraph (b);
57.4 	then any exception under section 268.047, subdivisions 2 and 3, shall begin begins the 
57.5 	Sunday two weeks following the week that the issue of disqualification ineligibility as a 
57.6 	result of a quit or discharge of the applicant was raised by the employer.
57.7 	A communication from an employer must specifically set out why the applicant 
57.8 	should be determined ineligible for unemployment benefits for that communication to be 
57.9 	considered to have raised an issue of ineligibility for purposes of this section. A statement 
57.10 	of "protest" or a similar term without more information does not constitute raising an issue 
57.11 	of ineligibility for purposes of this section.
57.12 	(c) If any time within 24 months from the establishment of a benefit account 
57.13 	the commissioner finds that an applicant failed to report any employment, or loss of 
57.14 	employment that was required to be provided by the applicant under this section, the 
57.15 	commissioner shall determine any issue of disqualification on that loss of employment 
57.16 	and send to the applicant and involved employer, by mail or electronic transmission, 
57.17 	a determination of disqualification or a determination of nondisqualification, as is 
57.18 	appropriate. The determination shall state the effect on the employer under section 
57.19 	268.047.
57.20 	This paragraph shall not prevent the imposition of any penalty under section 268.18, 
57.21 	subdivision 2, or 268.182.
57.22 	(d) (c) An issue of disqualification shall be ineligibility is determined based upon 
57.23 	that information required of an applicant, any information that may be obtained from an 
57.24 	applicant or employer, and information from any other source, without regard to any 
57.25 	common law burden of proof.
57.26 	(e) A determination of disqualification or a determination of nondisqualification shall 
57.27 	be final unless an appeal is filed by the applicant or notified employer within 30 calendar 
57.28 	days after sending. The determination shall contain a prominent statement indicating 
57.29 	the consequences of not appealing. Proceedings on the appeal shall be conducted in 
57.30 	accordance with section 268.105.
57.31 	(f) An issue of disqualification for purposes of this section shall include any reason 
57.32 	for no longer working for an employer other than a layoff due to lack of work, any 
57.33 	question of a disqualification from unemployment benefits under section 268.095, any 
57.34 	question of an exception to disqualification under section 268.095, any question of effect 
57.35 	on an employer under section 268.047, and any question of an otherwise imposed 
57.36 	disqualification that an applicant has satisfied under section 268.095, subdivision 10.
58.1 	(g) (d) Regardless of the requirements of this subdivision, the commissioner is not 
58.2 	required to send to an applicant a copy of the determination where the applicant has 
58.3 	satisfied any otherwise potential disqualification period of ineligibility because of a quit or 
58.4 	a discharge under section 268.095, subdivision 10.
58.5 	(e) The commissioner may issue a determination on an issue of ineligibility at any 
58.6 	time within 24 months from the establishment of a benefit account based upon information 
58.7 	from any source, even if the issue of ineligibility was not raised by the applicant or an 
58.8 	employer.
58.9 	This paragraph does not prevent the imposition of a penalty under section  268.18, 
58.10 	subdivision 2, or  268.182. 
58.11 	(f) A determination of eligibility or determination of ineligibility is final unless an 
58.12 	appeal is filed by the applicant or notified employer within 20 calendar days after sending. 
58.13 	The determination must contain a prominent statement indicating the consequences of not 
58.14 	appealing. Proceedings on the appeal are conducted in accordance with section  268.105. 
58.15 	(g) An issue of ineligibility required to be determined under this section includes 
58.16 	any question regarding the denial or allowing of unemployment benefits under this chapter 
58.17 	except for issues under section 268.07. An issue of ineligibility for purposes of this section 
58.18 	includes any question of effect on an employer under section 268.047. 
58.19 	(h) Except for issues of ineligibility as a result of a quit or discharge of the applicant, 
58.20 	the employer will be (1) sent a copy of the determination of eligibility or a determination 
58.21 	of ineligibility, or (2) considered an involved employer for purposes of an appeal under 
58.22 	section  268.105, only if the employer raised the issue of ineligibility. 
58.23 		Subd. 3.Eligibility determination. (a) The commissioner shall determine any 
58.24 	issue of eligibility raised by an employer, and send to the applicant and that employer, 
58.25 	by mail or electronic transmission, a determination of eligibility or a determination 
58.26 	of ineligibility, as is appropriate.
58.27 	(b) The commissioner shall determine any issue of eligibility raised by information 
58.28 	obtained from an applicant and send to the applicant, by mail or electronic transmission, 
58.29 	a determination of eligibility or a determination of ineligibility, as is appropriate. A 
58.30 	determination shall be made pursuant to this paragraph even if a notified employer has 
58.31 	not raised the issue of eligibility.
58.32 	(c) If any time within 24 months from the establishment of a benefit account the 
58.33 	commissioner finds the applicant failed to provide, on an application for unemployment 
58.34 	benefits or on a continued biweekly request for unemployment benefits, requested 
58.35 	information on an issue of eligibility, the commissioner shall determine the issue of 
59.1 	eligibility and send to the applicant, by mail or electronic transmission, a determination of 
59.2 	eligibility or a determination of ineligibility, as is appropriate.
59.3 	This paragraph shall not prevent the imposition of a penalty under section 268.18, 
59.4 	subdivision 2, or 268.182. 
59.5 	(d) A determination of eligibility or determination of ineligibility shall be final 
59.6 	unless an appeal is filed by the applicant or notified employer within 30 calendar 
59.7 	days after sending. The determination shall contain a prominent statement indicating 
59.8 	the consequences of not appealing. Proceedings on the appeal shall be conducted in 
59.9 	accordance with section 268.105. 
59.10 	(e) An issue of eligibility for purposes of this section shall include any question 
59.11 	regarding the denial or allowing of unemployment benefits under sections 268.085, 
59.12 	268.086, 268.115, 268.125, 268.135, and 268.155. 
59.13 	(f) Only if an employer raised the issue of eligibility shall the employer be: (1) sent 
59.14 	the determination of eligibility or a determination of ineligibility, or (2) considered an 
59.15 	involved employer for purposes of an appeal under section 268.105. 
59.16 		Subd. 3a.Direct hearing. Regardless of any provision of the Minnesota 
59.17 	Unemployment Insurance Law, the commissioner or an unemployment law judge 
59.18 	may, prior to before a determination being made under this chapter, refer any issue of 
59.19 	disqualification, any issue of eligibility ineligibility, or any other issue under this chapter, 
59.20 	directly for hearing in accordance with section 268.105, subdivision 1. The status of the 
59.21 	issue shall be is the same as if a determination had been made and an appeal filed.
59.22 		Subd. 4.Amended determination. Unless an appeal has been filed, the 
59.23 	commissioner, on the commissioner's own motion, may reconsider a determination of 
59.24 	disqualification or nondisqualification or a determination of eligibility or ineligibility that 
59.25 	has not become final and issue an amended determination. Any amended determination 
59.26 	shall must be sent to the applicant and any involved employer by mail or electronic 
59.27 	transmission. Any amended determination shall be is final unless an appeal is filed by the 
59.28 	applicant or notified employer within 30 20 calendar days after sending. Proceedings on 
59.29 	the appeal shall be are conducted in accordance with section 268.105. 
59.30 		Subd. 5.Unemployment benefit payment. If a determination or amended 
59.31 	determination allows unemployment benefits to an applicant, the unemployment benefits 
59.32 	shall must be paid regardless of any appeal period or any appeal having been filed.
59.33 		Subd. 6.Overpayment. A determination or amended determination that holds an 
59.34 	applicant disqualified or ineligible for unemployment benefits for periods an applicant 
59.35 	has been paid benefits is considered an overpayment of those unemployment benefits 
59.36 	under section 268.18, subdivision 1. 

60.1 	Sec. 8. Minnesota Statutes 2006, section 268.125, subdivision 3, is amended to read:
60.2 		Subd. 3.Eligibility conditions. An applicant is eligible to receive additional 
60.3 	unemployment benefits for any week during the applicant's benefit year if:
60.4 	(1) the applicant was laid off from employment as a result of a reduction under 
60.5 	subdivision 1 or was laid off due to because of lack of work from that employer during the 
60.6 	three-month period before, or the three-month period after, the month of the reduction 
60.7 	under subdivision 1;
60.8 	(2) the applicant meets the eligibility requirements under section  268.085; 
60.9 	(3) the applicant is not subject to a disqualification ineligible under section  268.095
60.10 	because of a quit or a discharge; for the purpose of this subdivision, the disqualifying 
60.11 	conditions in section  268.095, and the requalifying requirements, apply to the receipt of 
60.12 	additional unemployment benefits;
60.13 	(4) the applicant has exhausted regular unemployment benefits under section  268.07, 
60.14 	is not entitled to receive extended unemployment benefits under section  268.115, and 
60.15 	is not entitled to receive unemployment benefits under any other state or federal law 
60.16 	for that week; and 
60.17 	(5) a majority of the applicant's wage credits were from the employer that had a 
60.18 	reduction in operations under subdivision 1.

60.19 	Sec. 9. REVISOR'S INSTRUCTION.
 60.20 	In the headnote of Minnesota Statutes, section 268.095, the revisor of statutes shall 
60.21 	change the term "DISQUALIFICATION" to "INELIGIBILITY."

60.22 	Sec. 10. EFFECTIVE DATE.
 60.23 	This article applies to all department determinations, appeal decisions, and other 
60.24 	actions done on or after September 30, 2007.

60.25 	ARTICLE 6
60.26 	STYLE CHANGES

60.27 	Section 1. STATEMENT OF INTENT.
 60.28 	This article makes style changes that conform to preferred modern statutory drafting 
60.29 	conventions for the use of clear, concise, and plain language.

60.30 	Sec. 2. Minnesota Statutes 2006, section 268.001, is amended to read:
60.31 	268.001 CITATION; MINNESOTA UNEMPLOYMENT INSURANCE LAW.
61.1 	This chapter shall will be known and may be cited as the "Minnesota Unemployment 
61.2 	Insurance Law."

61.3 	Sec. 3. Minnesota Statutes 2006, section 268.03, subdivision 1, is amended to read:
61.4 		Subdivision 1.Statement. The public purpose of this chapter is: Economic 
61.5 	insecurity due to because of involuntary unemployment of workers in Minnesota is a 
61.6 	subject of general concern that requires appropriate action by the legislature. The public 
61.7 	good will beis promoted by providing workers who are unemployed through no fault 
61.8 	of their own a temporary partial wage replacement to assist the unemployed worker to 
61.9 	become reemployed. This program will be known asis the "Minnesota unemployment 
61.10 	insurance program."

61.11 	Sec. 4. Minnesota Statutes 2006, section 268.03, subdivision 2, is amended to read:
61.12 		Subd. 2.Standard of proof. All issues of fact under the Minnesota Unemployment 
61.13 	Insurance Law shall be are determined by a preponderance of the evidence. Preponderance 
61.14 	of the evidence means evidence in substantiation of a fact that, when weighed against the 
61.15 	evidence opposing the fact, is more convincing and has a greater probability of truth.

61.16 	Sec. 5. Minnesota Statutes 2006, section 268.035, subdivision 9, is amended to read:
61.17 		Subd. 9.Construction/independent contractor. A worker doing commercial 
61.18 	or residential building construction or improvement, in the public or private sector, 
61.19 	performing services in the course of the trade, business, profession, or occupation of the 
61.20 	employer, shall be is considered an employee and not an "independent contractor" unless 
61.21 	the worker meets all the following conditions:
61.22 	(1) maintains a separate business with the independent contractor's own office, 
61.23 	equipment, materials, and other facilities;
61.24 	(2) holds or has applied for a federal employer identification number or has filed 
61.25 	business or self-employment income tax returns with the federal Internal Revenue Service 
61.26 	based on that work or service in the previous year;
61.27 	(3) operates under contracts to perform specific services or work for specific amounts 
61.28 	of money under which the independent contractor controls the means of performing the 
61.29 	services or work;
61.30 	(4) incurs the main expenses related to the service or work that the independent 
61.31 	contractor performs under contract;
62.1 	(5) is responsible for the satisfactory completion of work or services that the 
62.2 	independent contractor contracts to perform and is liable for a failure to complete the 
62.3 	work or service;
62.4 	(6) receives compensation for work or service performed under a contract on a 
62.5 	commission or per job or competitive bid basis and not on any other basis;
62.6 	(7) may realize a profit or suffer a loss under contracts to perform work or service;
62.7 	(8) has continuing or recurring business liabilities or obligations; and
62.8 	(9) the success or failure of the independent contractor's business depends on the 
62.9 	relationship of business receipts to expenditures.

62.10 	Sec. 6. Minnesota Statutes 2006, section 268.035, subdivision 10, is amended to read:
62.11 		Subd. 10.Corporation. "Corporation" includes associations, joint-stock 
62.12 	companies, and insurance companies. This definition shallis not be exclusive.

62.13 	Sec. 7. Minnesota Statutes 2006, section 268.035, subdivision 11, is amended to read:
62.14 		Subd. 11.Covered agricultural employment. "Covered agricultural employment" 
62.15 	means agricultural employment where:
62.16 	(1) The employment is performed for a person who:
62.17 	(i) during any calendar quarter in either the current or the prior calendar year paid 
62.18 	wages of $20,000 or more to employees in agricultural employment; or
62.19 	(ii) for some portion of a day in each of 20 different calendar weeks, whether or 
62.20 	not the weeks were consecutive, in either the current or prior calendar year employed 
62.21 	in agricultural employment four or more employees, regardless of whether they were 
62.22 	employed at the same time.
62.23 	(2) Any employee who is a member of a crew furnished by a crew leader to be 
62.24 	employed in agricultural employment for any other person shall be is treated as an 
62.25 	employee of the crew leader:
62.26 	(i) if the crew leader holds a valid certificate of registration under United States 
62.27 	Code, title 29, section 1802, the Migrant and Seasonal Agricultural Worker Protection 
62.28 	Act; or substantially all of the members of the crew operate or maintain tractors, 
62.29 	mechanized harvesting or crop dusting equipment, or any other mechanized equipment, 
62.30 	that is provided by the crew leader; and
62.31 	(ii) if the employee is not an employee of another person.
62.32 	(3) Any employee who is furnished by a crew leader to be employed in agricultural 
62.33 	employment for any other person and who is not treated as an employee of the crew 
62.34 	leader under clause (2):
63.1 	(i) the other person and not the crew leader shall be is treated as the employer of 
63.2 	the employee; and
63.3 	(ii) the other person shall be is treated as having paid wages to the employee in an 
63.4 	amount equal to the amount of wages paid to the employee by the crew leader (either on 
63.5 	the crew leader's behalf or on behalf of the other person) for the agricultural employment 
63.6 	performed for the other person.
63.7 	(4) The term "crew leader" means an individual who:
63.8 	(i) furnishes employees to be employed in agricultural employment for any other 
63.9 	person;
63.10 	(ii) pays (either on the crew leader's own behalf or on behalf of the other person) 
63.11 	the employees furnished by the crew leader for the agricultural employment performed 
63.12 	by them; and
63.13 	(iii) has not entered into a written agreement with the other person under which the 
63.14 	furnished employee is designated as an employee of the other person.
63.15 	(5) Employment of an officer or shareholder of a family farm corporation shall be is 
63.16 	excluded from covered agricultural employment unless the corporation is an employer 
63.17 	under United States Code, title 26, section 3306(a)(2) of the Federal Unemployment 
63.18 	Tax Act.
63.19 	(6) Employment of an individual 16 years of age or under shall be is excluded from 
63.20 	covered agricultural employment unless the employer is an employer under United States 
63.21 	Code, title 26, section 3306(a)(2) of the Federal Unemployment Tax Act.

63.22 	Sec. 8. Minnesota Statutes 2006, section 268.035, subdivision 13, is amended to read:
63.23 		Subd. 13.Employee. "Employee" means:
63.24 	(1) every individual who is performing or has performed services for an employer 
63.25 	in employment; or
63.26 	(2) each individual employed to perform or assist in performing the work of any 
63.27 	agent or employee of the employer shall be is considered to be an employee of that 
63.28 	employer whether the individual was hired or paid directly by that employer or by the agent 
63.29 	or employee, provided the employer had actual or constructive knowledge of the work.

63.30 	Sec. 9. Minnesota Statutes 2006, section 268.035, subdivision 20, is amended to read:
63.31 		Subd. 20.Noncovered employment. "Noncovered employment" means:
63.32 	(1) employment for the United States government or an instrumentality thereof, 
63.33 	including military service;
64.1 	(2) employment for a state, other than Minnesota, or a political subdivision or 
64.2 	instrumentality thereof;
64.3 	(3) employment for a foreign government;
64.4 	(4) employment for an instrumentality wholly owned by a foreign government, 
64.5 	if the employment is of a character similar to that performed in foreign countries by 
64.6 	employees of the United States government or an instrumentality thereof and the United 
64.7 	States Secretary of State has certified that the foreign government grants an equivalent 
64.8 	exemption to similar employment performed in the foreign country by employees of the 
64.9 	United States government and instrumentalities thereof;
64.10 	(5) employment covered under United States Code, title 45, section 351, the 
64.11 	Railroad Unemployment Insurance Act;
64.12 	(6) employment covered by a reciprocal arrangement between the commissioner 
64.13 	and another state or the federal government which that provides that all employment 
64.14 	performed by an individual for an employer during the period covered by the reciprocal 
64.15 	arrangement is considered performed entirely within another state;
64.16 	(7) employment for a church or convention or association of churches, or an 
64.17 	organization operated primarily for religious purposes that is operated, supervised, 
64.18 	controlled, or principally supported by a church or convention or association of churches 
64.19 	described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue 
64.20 	Code and exempt from income tax under section 501(a);
64.21 	(8) employment of a duly ordained or licensed minister of a church in the exercise of 
64.22 	a ministry or by a member of a religious order in the exercise of duties required by the 
64.23 	order, for Minnesota or a political subdivision or an organization described in United 
64.24 	States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt 
64.25 	from income tax under section 501(a);
64.26 	(9) employment of an individual receiving rehabilitation of "sheltered" work in 
64.27 	a facility conducted for the purpose of carrying out a program of rehabilitation for 
64.28 	individuals whose earning capacity is impaired by age or physical or mental deficiency 
64.29 	or injury or a program providing "sheltered" work for individuals who because of an 
64.30 	impaired physical or mental capacity cannot be readily absorbed in the competitive labor 
64.31 	market. This clause applies only to services performed for Minnesota or a political 
64.32 	subdivision or an organization described in United States Code, title 26, section 501(c)(3) 
64.33 	of the federal Internal Revenue Code and exempt from income tax under section 501(a) 
64.34 	in a facility certified by the Rehabilitation Services Branch of the department or in a day 
64.35 	training or habilitation program licensed by the Department of Human Services;
65.1 	(10) employment of an individual receiving work relief or work training as part of 
65.2 	an unemployment work relief or work training program assisted or financed in whole or 
65.3 	in part by any federal agency or an agency of a state or political subdivision thereof. 
65.4 	This clause applies only to employment for Minnesota or a political subdivision or an 
65.5 	organization described in United States Code, title 26, section 501(c)(3) of the federal 
65.6 	Internal Revenue Code and exempt from income tax under section 501(a). This clause 
65.7 	shall does not apply to programs that require unemployment benefit coverage for the 
65.8 	participants;
65.9 	(11) employment for Minnesota or a political subdivision as an elected official, a 
65.10 	member of a legislative body, or a member of the judiciary;
65.11 	(12) employment as a member of the Minnesota National Guard or Air National 
65.12 	Guard;
65.13 	(13) employment for Minnesota, a political subdivision, or instrumentality thereof, 
65.14 	as an employee serving only on a temporary basis in case of fire, flood, tornado, or 
65.15 	similar emergency;
65.16 	(14) employment as an election official or election worker for Minnesota or a 
65.17 	political subdivision, but only if the compensation for that employment was less than 
65.18 	$1,000 in a calendar year;
65.19 	(15) employment for Minnesota that is a major policy making or advisory position 
65.20 	in the unclassified service, including those positions established pursuant to under section 
65.21 	43A.08, subdivision 1a;
65.22 	(16) employment for a political subdivision of Minnesota that is a nontenured major 
65.23 	policy making or advisory position;
65.24 	(17) domestic employment in a private household, local college club, or local 
65.25 	chapter of a college fraternity or sorority performed for a person, only if the wages paid in 
65.26 	any calendar quarter in either the current or precedingprior calendar year to all individuals 
65.27 	in domestic employment totaled less than $1,000.
65.28 	"Domestic employment" includes all service in the operation and maintenance of a 
65.29 	private household, for a local college club, or local chapter of a college fraternity or 
65.30 	sorority as distinguished from service as an employee in the pursuit of an employer's 
65.31 	trade or business;
65.32 	(18) employment of an individual by a son, daughter, or spouse, and employment of 
65.33 	a child under the age of 18 by the child's father or mother;
65.34 	(19) employment of an inmate of a custodial or penal institution;
65.35 	(20) employment for a school, college, or university by a student who is enrolled 
65.36 	and is regularly attending classes at the school, college, or university;
66.1 	(21) employment of an individual who is enrolled as a student in a full-time program 
66.2 	at a nonprofit or public educational institution that maintains a regular faculty and 
66.3 	curriculum and has a regularly organized body of students in attendance at the place where 
66.4 	its educational activities are carried on, taken for credit at the institution, that combines 
66.5 	academic instruction with work experience, if the employment is an integral part of the 
66.6 	program, and the institution has so certified to the employer, except that this clause shall
66.7 	does not apply to employment in a program established for or on behalf of an employer 
66.8 	or group of employers;
66.9 	(22) employment of university, college, or professional school students in an 
66.10 	internship or other training program with the city of St. Paul or the city of Minneapolis 
66.11 	pursuant to under Laws 1990, chapter 570, article 6, section 3;
66.12 	(23) employment for a hospital by a patient of the hospital. "Hospital" means an 
66.13 	institution that has been licensed by the Department of Health as a hospital;
66.14 	(24) employment as a student nurse for a hospital or a nurses' training school by 
66.15 	an individual who is enrolled and is regularly attending classes in an accredited nurses' 
66.16 	training school;
66.17 	(25) employment as an intern for a hospital by an individual who has completed a 
66.18 	four-year course in an accredited medical school;
66.19 	(26) employment as an insurance salesperson, by other than a corporate officer, if all 
66.20 	the wages from the employment is solely by way of commission. The word "insurance" 
66.21 	shall include includes an annuity and an optional annuity;
66.22 	(27) employment as an officer of a township mutual insurance company or farmer's 
66.23 	mutual insurance company operating pursuant to under chapter 67A;
66.24 	(28) employment of a corporate officer, if the officer owns 25 percent or more of the 
66.25 	employer corporation, and employment of a member of a limited liability company, if the 
66.26 	member owns 25 percent or more of the employer limited liability company;
66.27 	(29) employment as a real estate salesperson, by other than a corporate officer, if all 
66.28 	the wages from the employment is solely by way of commission;
66.29 	(30) employment as a direct seller as defined in United States Code, title 26, section 
66.30 	3508;
66.31 	(31) employment of an individual under the age of 18 in the delivery or distribution 
66.32 	of newspapers or shopping news, not including delivery or distribution to any point for 
66.33 	subsequent delivery or distribution;
66.34 	(32) casual employment performed for an individual, other than domestic 
66.35 	employment under clause (17), that does not promote or advance that employer's trade or 
66.36 	business;
67.1 	(33) employment in "agricultural employment" unless considered "covered 
67.2 	agricultural employment" under subdivision 11; or
67.3 	(34) if employment during one-half or more of any pay period was covered 
67.4 	employment, all the employment for the pay period shall be is considered covered 
67.5 	employment; but if during more than one-half of any pay period the employment was 
67.6 	noncovered employment, then all of the employment for the pay period shall be is
67.7 	considered noncovered employment. "Pay period" means a period of not more than a 
67.8 	calendar month for which a payment or compensation is ordinarily made to the employee 
67.9 	by the employer.

67.10 	Sec. 10. Minnesota Statutes 2006, section 268.035, subdivision 21a, is amended to 
67.11 	read:
67.12 		Subd. 21a.Reemployment assistance training. (a) An applicant is in 
67.13 	"reemployment assistance training" when:
67.14 	(1) reasonable and suitable employment for the applicant does not exist in the labor 
67.15 	market area and it is necessary that the applicant receive training in order to obtain 
67.16 	suitable employment;
67.17 	(2) the curriculum, facilities, staff, and other essentials are adequate to achieve the 
67.18 	training objective;
67.19 	(3) the training is vocational in nature or short term academic training vocationally 
67.20 	directed to an occupation or skill for which there are reasonable employment opportunities 
67.21 	available to the applicant;
67.22 	(4) the training course is considered full time by the training provider; and
67.23 	(5) the applicant is making satisfactory progress in the training.
67.24 	(b) Full-time training provided through the dislocated worker program, the Trade 
67.25 	Act of 1974, as amended, or the North American Free Trade Agreement shall be is
67.26 	considered "reemployment assistance training," if that training course is in accordance 
67.27 	with the requirements of that program.
67.28 	(c) An applicant will be is considered in reemployment assistance training only if 
67.29 	the training course has actually started or is scheduled to start within 30 calendar days.

67.30 	Sec. 11. Minnesota Statutes 2006, section 268.035, subdivision 23a, is amended to read:
67.31 		Subd. 23a.Suitable employment. (a) Suitable employment means employment in 
67.32 	the applicant's labor market area that is reasonably related to the applicant's qualifications. 
67.33 	In determining whether any employment is suitable for an applicant, the degree of risk 
67.34 	involved to the health and safety, physical fitness, prior training, experience, length 
68.1 	of unemployment, prospects for securing employment in the applicant's customary 
68.2 	occupation, and the distance of the employment from the applicant's residence shall be
68.3 	is considered.
68.4 	(b) In determining what is suitable employment, primary consideration shall be is
68.5 	given to the temporary or permanent nature of the applicant's separation from employment 
68.6 	and whether the applicant has favorable prospects of finding employment in the applicant's 
68.7 	usual or customary occupation at the applicant's past wage level within a reasonable 
68.8 	period of time.
68.9 	If prospects are unfavorable, employment at lower skill or wage levels is suitable 
68.10 	if the applicant is reasonably suited for the employment considering the applicant's 
68.11 	education, training, work experience, and current physical and mental ability.
68.12 	The total compensation must be considered, including the wage rate, hours of 
68.13 	employment, method of payment, overtime practices, bonuses, incentive payments, and 
68.14 	fringe benefits.
68.15 	(c) When potential employment is at a rate of pay lower than the applicant's former 
68.16 	rate, consideration must be given to the length of the applicant's unemployment and the 
68.17 	proportion of difference in the rates. Employment that may not be suitable because of 
68.18 	lower wages during the early weeks of the applicant's unemployment may become suitable 
68.19 	as the duration of unemployment lengthens.
68.20 	(d) For an applicant seasonally unemployed, suitable employment includes 
68.21 	temporary work in a lower skilled occupation that pays average gross weekly wages equal 
68.22 	to or more than 150 percent of the applicant's weekly unemployment benefit amount.
68.23 	(e) If a majority of the applicant's wage credits were earned from part-time 
68.24 	employment, part-time employment in a position with comparable skills and comparable 
68.25 	hours that pays average gross weekly wages equal to or more than 150 percent of 
68.26 	the applicant's weekly unemployment benefit amount shall be is considered suitable 
68.27 	employment.
68.28 	(f) To determine suitability of employment in terms of shifts, the arrangement of 
68.29 	hours in addition to the total number of hours is to be considered. Employment on a 
68.30 	second, third, rotating, or split shift is suitable employment if it is customary in the 
68.31 	occupation in the labor market area.
68.32 	(g) Employment shall is not be considered suitable if:
68.33 	(1) the position offered is vacant because of a labor dispute;
68.34 	(2) the wages, hours, or other conditions of employment are substantially less 
68.35 	favorable than those prevailing for similar employment in the labor market area; or
69.1 	(3) as a condition of becoming employed, the applicant would be required to join a 
69.2 	company union or to resign from or refrain from joining any bona fide labor organization.

69.3 	Sec. 12. Minnesota Statutes 2006, section 268.035, subdivision 26, is amended to read:
69.4 		Subd. 26.Unemployed. An applicant shall be is considered "unemployed" (1) in 
69.5 	any week that the applicant performs less than 32 hours of service in employment, covered 
69.6 	employment, noncovered employment, self-employment, or volunteer work; and (2) any 
69.7 	earnings with respect to that week are less than the applicant's weekly unemployment 
69.8 	benefit amount.

69.9 	Sec. 13. Minnesota Statutes 2006, section 268.035, subdivision 30, is amended to read:
69.10 		Subd. 30.Wages paid. (a) "Wages paid" means the amount of wages that have been 
69.11 	actually paid or that have been credited to or set apart so that payment and disposition 
69.12 	is under the control of the employee. Wage payments delayed beyond the regularly 
69.13 	scheduled pay date are considered "wages paid" on the missed pay date. Back pay shall 
69.14 	be is considered "wages paid" on the date of actual payment. Any wages earned but 
69.15 	not paid with no scheduled date of payment shall be is considered "wages paid" on the 
69.16 	last day of employment.
69.17 	(b) Wages paid shall does not include wages earned but not paid except as provided 
69.18 	for in this subdivision.

69.19 	Sec. 14. Minnesota Statutes 2006, section 268.042, subdivision 3, is amended to read:
69.20 		Subd. 3.Election to have noncovered employment considered covered 
69.21 	employment. (a) Any employer that has employment performed for it that is noncovered 
69.22 	employment under section  268.035, subdivision 20, may file with the commissioner, by 
69.23 	electronic transmission in a format prescribed by the commissioner, an election that all 
69.24 	such employment, in one or more distinct establishments or places of business, shall be is
69.25 	considered covered employment for not less than two calendar years. The commissioner 
69.26 	shall have has discretion on the approval of any election. Upon the approval of the 
69.27 	commissioner, sent by mail or electronic transmission, the employment shall constitute
69.28 	constitutes covered employment beginning the calendar quarter after the date of approval 
69.29 	or beginning a later calendar quarter if requested by the employer. The employment 
69.30 	shall cease ceases to be considered covered employment as of the first day of January of 
69.31 	any calendar year only if at least 30 calendar days prior to before the first day of January 
69.32 	the employer has filed with the commissioner, by electronic transmission in a format 
69.33 	prescribed by the commissioner, a notice to that effect. 
70.1 	(b) The commissioner must terminate any election agreement under this subdivision 
70.2 	upon 30 calendar days' notice sent by mail or electronic transmission, if the employer is 
70.3 	delinquent on any taxes due or reimbursements due the trust fund.

70.4 	Sec. 15. Minnesota Statutes 2006, section 268.042, subdivision 4, is amended to read:
70.5 		Subd. 4.Authorization. The commissioner is authorized to enter into reciprocal 
70.6 	arrangements with other states and the federal government, or both, whereby employment 
70.7 	by an employee or employees for a single employer that is customarily performed in more 
70.8 	than one state shall be is considered performed entirely within any one of the states:
70.9 	(1) where any part of the employee's employment is performed, or
70.10 	(2) where the employee has a residence, or
70.11 	(3) where the employer maintains a place of business; provided, there is in effect, 
70.12 	as to the employment, an election, approved by the state, pursuant to under which all 
70.13 	the employment by the employee or employees for the employer is considered to be 
70.14 	performed entirely within that state.

70.15 	Sec. 16. Minnesota Statutes 2006, section 268.0435, is amended to read:
70.16 	268.0435 SINGLE MEMBER LIMITED LIABILITY COMPANIES.
70.17 	If the only member of a limited liability company is a corporation, and the limited 
70.18 	liability company is disregarded for purposes of filing federal corporate income tax, all 
70.19 	the workers performing services for the limited liability company must be reported on 
70.20 	the corporation's wage detail report under section 268.044. A corporation that violates 
70.21 	this section shall be is subject to the penalties under section 268.184, subdivision 1a. 
70.22 	Penalties shall be are credited to the administration account to be used to ensure integrity 
70.23 	in the unemployment insurance program.

70.24 	Sec. 17. Minnesota Statutes 2006, section 268.044, subdivision 1a, is amended to read:
70.25 		Subd. 1a.Electronic transmission of report required. Each employer must submit 
70.26 	the quarterly wage detail report by electronic transmission in a format prescribed by the 
70.27 	commissioner. The commissioner shall have has the discretion to accept wage detail 
70.28 	reports that are submitted by any other means or the commissioner may return the report 
70.29 	submitted by other than electronic transmission to the employer, and reports returned shall 
70.30 	be are considered as not submitted and the late fees under subdivision 2 may be imposed.

70.31 	Sec. 18. Minnesota Statutes 2006, section 268.044, subdivision 2, is amended to read:
71.1 		Subd. 2.Failure to timely file report; late fees. (a) Any employer that fails to 
71.2 	submit the quarterly wage detail report when due shall must pay a late fee of $10 per 
71.3 	employee, computed based upon the highest of:
71.4 	(1) the number of employees reported on the last wage detail report submitted;
71.5 	(2) the number of employees reported in the corresponding quarter of the prior 
71.6 	calendar year; or
71.7 	(3) if no wage detail report has ever been submitted, the number of employees 
71.8 	listed at the time of employer registration.
71.9 	The late fee shall be is waived if the wage detail report is received within 30 
71.10 	calendar days after a demand for the report is sent to the employer by mail or electronic 
71.11 	transmission. A late fee assessed an employer may not be waived more than twice each 12 
71.12 	months. The amount of the late fee assessed shall may not be less than $250.
71.13 	(b) If the wage detail report is not received in a manner and format prescribed by 
71.14 	the commissioner within 30 calendar days after demand is sent under paragraph (a), 
71.15 	the late fee assessed under paragraph (a) shall double doubles and a renewed demand 
71.16 	notice and notice of the increased late fee shall will be sent to the employer by mail or 
71.17 	electronic transmission.
71.18 	(c) Late fees due under this subdivision may be compromised under section 268.067
71.19 	where good cause for late submission is found by the commissioner.

71.20 	Sec. 19. Minnesota Statutes 2006, section 268.044, subdivision 4, is amended to read:
71.21 		Subd. 4.Fees. The fees provided for in subdivisions 2 and 3 are in addition to 
71.22 	interest and other penalties imposed by this chapter and shall be are collected in the same 
71.23 	manner as delinquent taxes and shall be credited to the contingent account.

71.24 	Sec. 20. Minnesota Statutes 2006, section 268.045, subdivision 1, is amended to read:
71.25 		Subdivision 1.Account for each employer. The commissioner shall maintain 
71.26 	(1) a tax account for each taxpaying employer and (2) a reimbursable account for each 
71.27 	nonprofit or government employer that has elected under section 268.052 or 268.053 to 
71.28 	be liable for reimbursements, except as provided in section 268.046. The commissioner 
71.29 	shall assess the tax account for all the taxes due under section 268.051 and credit the tax 
71.30 	account with all taxes paid. The commissioner shall charge the reimbursable account for 
71.31 	any unemployment benefits determined chargeable under section 268.047 and shall credit 
71.32 	the reimbursable account with the payments made.

72.1 	Sec. 21. Minnesota Statutes 2006, section 268.046, is amended to read:
72.2 	268.046 TAX AND REIMBURSABLE ACCOUNTS ASSIGNED TO 
72.3 	EMPLOYEE LEASING COMPANIES, PROFESSIONAL EMPLOYER 
72.4 	ORGANIZATIONS, OR SIMILAR PERSON.
72.5 		Subdivision 1.Tax accounts assigned. (a) Any person that contracts with a 
72.6 	taxpaying employer to have that person obtain the taxpaying employer's workforce and 
72.7 	provide workers to the taxpaying employer for a fee shall is, as of the effective date 
72.8 	of the contract, be assigned for the duration of the contract the taxpaying employer's 
72.9 	account under section 268.045. That tax account must be maintained by the person 
72.10 	separate and distinct from every other tax account held by the person and identified in a 
72.11 	manner prescribed by the commissioner. The tax account shall is, for the duration of the 
72.12 	contract, be considered that person's account for all purposes of this chapter. The workers 
72.13 	obtained from the taxpaying employer and any other workers provided by that person to 
72.14 	the taxpaying employer must, under section 268.044, be reported on the wage detail 
72.15 	report under that tax account, and that person shall must pay any taxes due at the tax rate 
72.16 	computed for that account under section 268.051, subdivision 2.
72.17 	(b) Any workers of the taxpaying employer who are not covered by the contract 
72.18 	under paragraph (a) must be reported by the taxpaying employer as a separate unit on the 
72.19 	wage detail report under the tax account assigned under paragraph (a). Taxes and any 
72.20 	other amounts due on the wages reported by the taxpaying employer under this paragraph 
72.21 	may be paid directly by the taxpaying employer.
72.22 	(c) If the taxpaying employer that contracts with a person under paragraph (a) does 
72.23 	not have a tax account at the time of the execution of the contract, an account must be 
72.24 	registered for the taxpaying employer under section 268.042 and the new employer tax 
72.25 	rate under section 268.051, subdivision 5, must be assigned. The tax account shall is then 
72.26 	be assigned to the person as provided for in paragraph (a).
72.27 	(d) A person that contracts with a taxpaying employer under paragraph (a) 
72.28 	must, within 30 calendar days of the execution or termination of a contract, notify the 
72.29 	commissioner by electronic transmission, in a format prescribed by the commissioner, 
72.30 	of that execution or termination. The taxpaying employer's name, the account number 
72.31 	assigned, and any other information required by the commissioner must be provided 
72.32 	by that person.
72.33 	(e) Any contract subject to paragraph (a) must specifically inform the taxpaying 
72.34 	employer of the assignment of the tax account under this section and the taxpaying 
72.35 	employer's obligation under paragraph (b). If there is a termination of the contract, the tax 
73.1 	account shall is, as of the date of termination, immediately be assigned to the taxpaying 
73.2 	employer.
73.3 		Subd. 2.Nonprofit and government reimbursable accounts assigned. (a) Any 
73.4 	person that contracts with a nonprofit or government employer that is a reimbursing 
73.5 	employer to have that person obtain the nonprofit or government employer's workforce 
73.6 	and provide workers to the nonprofit or government employer for a fee, shall is, as of the 
73.7 	effective date of the contract, be assigned for the duration of the contract the nonprofit or 
73.8 	government employer's account under section 268.045. That reimbursable account must 
73.9 	be maintained by the person separate and distinct from every other account held by the 
73.10 	person and identified in a manner prescribed by the commissioner. That reimbursable 
73.11 	account shall is, for the duration of the contract, be considered that person's account for 
73.12 	all purposes of this chapter. The workers obtained from the nonprofit or government 
73.13 	employer and any other workers provided by that person to the nonprofit or government 
73.14 	employer must, under section 268.044, be reported on the wage detail report under that 
73.15 	reimbursable account, and that person shall must pay any reimbursements due.
73.16 	(b) Any workers of the nonprofit or government employer who are not covered 
73.17 	by the contract under paragraph (a) must be reported by the nonprofit or government 
73.18 	employer as a separate unit on the wage detail report under the reimbursable account 
73.19 	assigned under paragraph (a). Reimbursements and any other amounts due on the wages 
73.20 	reported by the nonprofit or government employer under this paragraph may be paid 
73.21 	directly by the nonprofit or government employer.
73.22 	(c) If the nonprofit or government employer that contracts with a person under 
73.23 	paragraph (a) does not have an account at the time of the execution of the contract, an 
73.24 	account must be registered for the nonprofit or government employer under section 
73.25 	268.042. The reimbursable account shall is then be assigned to the person as provided 
73.26 	for in paragraph (a).
73.27 	(d) A person that contracts with a nonprofit or government employer under 
73.28 	paragraph (a) must, within 30 calendar days of the execution or termination of a contract, 
73.29 	notify the commissioner of that execution or termination by electronic transmission, in a 
73.30 	format prescribed by the commissioner. The nonprofit or government employer's name, 
73.31 	the account number assigned, and any other information required by the commissioner 
73.32 	must be provided by that person.
73.33 	(e) Any contract subject to paragraph (a) must specifically inform the nonprofit or 
73.34 	government employer of the assignment of the reimbursable account under this section 
73.35 	and the nonprofit or government employer's obligation under paragraph (b). If there is a 
74.1 	termination of the contract, the reimbursable account shall is, as of the date of termination, 
74.2 	immediately be assigned to the nonprofit or government employer.
74.3 		Subd. 3.Penalties; application. (a) Any person that violates the requirements of 
74.4 	this section and any taxpaying employer that violates subdivision 1, paragraph (b), or any 
74.5 	nonprofit or government employer that violates subdivision 2, paragraph (b), shall be is
74.6 	subject to the penalties under section 268.184, subdivision 1a. Penalties shall be are
74.7 	credited to the administration account to be used to ensure integrity in the unemployment 
74.8 	insurance program.
74.9 	(b) Section 268.051, subdivision 4, does not apply to contracts under this section. 
74.10 	This section shall does not limit or prevent the application of section 268.051, subdivision 
74.11 	4, to any other transactions or acquisitions involving the taxpaying employer. This section 
74.12 	shall does not limit or prevent the application of section 268.051, subdivision 4a.
74.13 	(c) An assignment of an account upon the execution of a contract under this section 
74.14 	and a termination of a contract with the corresponding assignment of the account shall is
74.15 	not be considered a separation from employment of any worker covered by the contract. 
74.16 	Nothing under this subdivision shall cause causes the person to be liable for any amounts 
74.17 	past due under this chapter from the taxpaying employer or the nonprofit or government 
74.18 	employer.
74.19 	(d) This section applies to, but is not limited to, persons registered under section 
74.20 	79.255, but does not apply to persons that obtain an exemption from registration under 
74.21 	section 79.255, subdivision 9.

74.22 	Sec. 22. Minnesota Statutes 2006, section 268.047, subdivision 1, is amended to read:
74.23 		Subdivision 1.General rule. Unemployment benefits paid to an applicant, 
74.24 	including extended, additional, and shared work benefits, shallwill be used in computing 
74.25 	the future tax rate of a taxpaying base period employer or charged to the reimbursable 
74.26 	account of a base period nonprofit or government employer that has elected to be liable for 
74.27 	reimbursements except as provided in subdivisions 2 and 3. The amount of unemployment 
74.28 	benefits used in computing the future tax rate of taxpaying employers or charged to the 
74.29 	reimbursable account of a nonprofit or government employer that has elected to be liable 
74.30 	for reimbursements shall beis the same percentage of the total amount of unemployment 
74.31 	benefits paid as the percentage of wage credits from the employer is of the total amount of 
74.32 	wage credits from all the applicant's base period employers.
74.33 	In making computations under this subdivision, the amount of wage credits, if not a 
74.34 	whole dollar, shallmust be computed to the nearest whole dollar.

75.1 	Sec. 23. Minnesota Statutes 2006, section 268.047, subdivision 3, is amended to read:
75.2 		Subd. 3.Exceptions for taxpaying employers. Unemployment benefits paid shall
75.3 	will not be used in computing the future tax rate of a taxpaying base period employer when:
75.4 	(1) the applicant's wage credits from that employer are less than $500;
75.5 	(2) the applicant quit the employment, unless it was determined under section  
75.6 	268.095, to have been because of a good reason caused by the employer or because the 
75.7 	employer notified the applicant of discharge within 30 calendar days. This exception 
75.8 	shall applyapplies only to unemployment benefits paid for periods after the applicant's 
75.9 	quitting the employment; or 
75.10 	(3) the employer discharged the applicant from employment because of employment 
75.11 	misconduct as determined under section  268.095. This exception shall applyapplies 
75.12 	only to unemployment benefits paid for periods after the applicant's discharge from 
75.13 	employment. 

75.14 	Sec. 24. Minnesota Statutes 2006, section 268.051, subdivision 4a, is amended to read:
75.15 		Subd. 4a.Actions that avoid taxes. (a) If the commissioner determines that any 
75.16 	action was done, in whole or in part, to avoid:
75.17 	(1) an experience rating history;
75.18 	(2) the transfer of an experience rating history; or
75.19 	(3) the assignment of a tax rate for new employers under subdivision 5, paragraph 
75.20 	(a) or (b), the commissioner, to insure that the trust fund receives all the taxes that would 
75.21 	have been received had the action not occurred, may, effective the date of the action, 
75.22 	transfer all or part of an experience rating history and recompute the tax rate or assign the 
75.23 	appropriate new employer tax rate.
75.24 	(b) This subdivision shall apply applies to any action between persons regardless 
75.25 	of whether there is any commonality of ownership, management, or control between the 
75.26 	persons. The authority granted to the commissioner under this subdivision is in addition to 
75.27 	any other authority granted to the commissioner.

75.28 	Sec. 25. Minnesota Statutes 2006, section 268.051, subdivision 9, is amended to read:
75.29 		Subd. 9.Assessments, fees, and surcharges; treatment. Any assessment, fee, or 
75.30 	surcharge imposed under the Minnesota Unemployment Insurance Law shall be is treated 
75.31 	the same as, and considered as, a tax. Any assessment, fee, or surcharge shall be is subject 
75.32 	to the same collection procedures that apply to past due taxes.

75.33 	Sec. 26. Minnesota Statutes 2006, section 268.052, subdivision 1, is amended to read:
76.1 		Subdivision 1.Payments. In lieu of taxes payable on a quarterly basis, the state 
76.2 	of Minnesota or its political subdivisions shall must reimburse the trust fund the amount 
76.3 	of unemployment benefits charged to its reimbursable account under section  268.047. 
76.4 	Reimbursements in the amount of unemployment benefits charged to the reimbursable 
76.5 	account during a calendar quarter must be received by the department on or before the last 
76.6 	day of the month following the month that the notice of unemployment benefits paid is sent 
76.7 	pursuant to under section  268.047, subdivision 5. Past due reimbursements shall be are
76.8 	subject to the same interest charges and collection procedures that apply to past due taxes. 

76.9 	Sec. 27. Minnesota Statutes 2006, section 268.052, subdivision 2, is amended to read:
76.10 		Subd. 2.Election by state or political subdivision to be a taxpaying employer.
 76.11 	(a) The state or political subdivision may elect to be a taxpaying employer for any calendar 
76.12 	year if a notice of election is filed within 30 calendar days following January 1 of that 
76.13 	calendar year. Upon election, the state or political subdivision shall must be assigned the 
76.14 	new employer tax rate under section 268.051, subdivision 5, for the calendar year of the 
76.15 	election and until it qualifies for an experience rating under section 268.051, subdivision 3.
76.16 	(b) An election shall be is for a minimum period of two calendar years following the 
76.17 	effective date of the election and continue unless a notice terminating the election is filed 
76.18 	not later than 30 calendar days before the beginning of the calendar year. The termination 
76.19 	shall be is effective at the beginning of the next calendar year. Upon election, the 
76.20 	commissioner shall establish a reimbursable account for the state or political subdivision. 
76.21 	A termination of election shall be is allowed only if the state or political subdivision has, 
76.22 	since the beginning of the experience rating period under section 268.051, subdivision 
76.23 	3, paid taxes equal to or more than 125 percent of the unemployment benefits used 
76.24 	in computing the experience rating. In addition, any unemployment benefits paid after 
76.25 	the experience rating period shall be are transferred to the new reimbursable account of 
76.26 	the state or political subdivision. If the amount of taxes paid since the beginning of the 
76.27 	experience rating period exceeds 125 percent of the amount of unemployment benefits 
76.28 	paid during the experience rating period, that amount in excess shall be is applied against 
76.29 	any unemployment benefits paid after the experience rating period.
76.30 	(c) The method of payments to the trust fund under subdivisions 3 and 4 shall apply
76.31 	applies to all taxes paid by or due from the state or political subdivision that elects to be 
76.32 	taxpaying employers under this subdivision.
76.33 	(d) A notice of election or a notice terminating election shall must be filed by 
76.34 	electronic transmission in a format prescribed by the commissioner.

77.1 	Sec. 28. Minnesota Statutes 2006, section 268.052, subdivision 3, is amended to read:
77.2 		Subd. 3.Method of payment by state. To discharge its liability, the state and its 
77.3 	wholly owned instrumentalities shall must pay the trust fund as follows:
77.4 	(1) Every self-sustaining department, institution and wholly owned instrumentality 
77.5 	shall must pay the trust fund in accordance with subdivision 1. For the purposes of this 
77.6 	clause a "self-sustaining department, institution or wholly owned instrumentality" is one 
77.7 	where the dedicated income and revenue substantially offsets its cost of operation.
77.8 	(2) Every partially self-sustaining department, institution and wholly owned 
77.9 	instrumentality shall must pay the trust fund that same proportion of the amount that has 
77.10 	been charged to its employer account as the proportion of the total of its income and 
77.11 	revenue is to its annual cost of operation.
77.12 	(3) Every department, institution or wholly owned instrumentality that is not 
77.13 	self-sustaining shall must pay the trust fund to the extent funds are available from 
77.14 	appropriated funds.
77.15 	(4) The departments, institutions and wholly owned instrumentalities, including 
77.16 	the University of Minnesota, that have money available shall must pay the trust fund in 
77.17 	accordance with subdivision 1. If an applicant was paid during the base period from 
77.18 	a special account provided by law, the payment to the trust fund shall must be made 
77.19 	from the special account with the approval of the Department of Administration and the 
77.20 	amounts are hereby appropriated.
77.21 	(5) For those departments, institutions and wholly owned instrumentalities that 
77.22 	cannot pay the trust fund, the commissioner shall certify on November 1 of each calendar 
77.23 	year to the commissioner of finance the unpaid balances. Upon receipt of the certification, 
77.24 	the commissioner of finance shall include the unpaid balances in the biennial budget 
77.25 	submitted to the legislature.

77.26 	Sec. 29. Minnesota Statutes 2006, section 268.052, subdivision 4, is amended to read:
77.27 		Subd. 4.Method of payment by political subdivision. A political subdivision or 
77.28 	instrumentality thereof is authorized and directed to pay its liabilities by money collected 
77.29 	from taxes or other revenues. Every political subdivision authorized to levy taxes except 
77.30 	school districts may include in its tax levy the amount necessary to pay its liabilities. 
77.31 	School districts may levy according to section  126C.43, subdivision 2. If the taxes 
77.32 	authorized to be levied cause the total amount of taxes levied to exceed any limitation 
77.33 	upon the power of a political subdivision to levy taxes, the political subdivision may 
77.34 	levy taxes in excess of the limitations in the amounts necessary to meet its liability. The 
77.35 	expenditures authorized shall must not be included in computing the cost of government 
78.1 	as defined in any home rule charter. The governing body of a municipality, for the purpose 
78.2 	of meeting its liabilities, in the event of a deficit, may issue its obligations payable in not 
78.3 	more than two years, in an amount that may cause its indebtedness to exceed any statutory 
78.4 	or charter limitations, without an election, and may levy taxes in the manner provided 
78.5 	in section  475.61. 

78.6 	Sec. 30. Minnesota Statutes 2006, section 268.052, subdivision 5, is amended to read:
78.7 		Subd. 5.Considered an election. If the state of Minnesota or its political 
78.8 	subdivisions choose not to be a taxpaying employer under subdivision 2, the state or its 
78.9 	political subdivision shall be are considered, for purposes of the Minnesota unemployment 
78.10 	insurance program, to have elected to be liable for reimbursements under subdivision 1.

78.11 	Sec. 31. Minnesota Statutes 2006, section 268.0525, is amended to read:
78.12 	268.0525 INDIAN TRIBES.
78.13 	(a) An Indian tribe, as defined under United States Code, title 25, section 450b(e) 
78.14 	of the Indian Self-Determination and Education Assistance Act, and any subdivision, 
78.15 	subsidiary, or business enterprise owned by the Indian tribe, shall must be treated the same 
78.16 	as the state of Minnesota, or a political subdivision of the state, for all purposes of the 
78.17 	Minnesota Unemployment Insurance Law.
78.18 	(b) The Indian tribe may make separate elections under section  268.052, subdivision 
78.19 	2, for itself and each subdivision, subsidiary, or business enterprise wholly owned by 
78.20 	the Indian tribe. 
78.21 	(c) If an Indian tribe, subdivision, subsidiary, or business enterprise wholly owned 
78.22 	by the tribe, which has elected to be liable for reimbursements, fails to make the required 
78.23 	payments within 90 calendar days of the notice of delinquency, the commissioner shall 
78.24 	terminate the election to make reimbursements as of the beginning of the next calendar 
78.25 	year, unless all past due reimbursements, and any interest and penalties, have been paid 
78.26 	before the beginning of the next calendar year.
78.27 	An Indian tribe, subdivision, subsidiary, or business enterprise wholly owned by the 
78.28 	tribe that has its election terminated under this paragraph shall must become a taxpaying 
78.29 	employer and assigned the new employer tax rate under section  268.051, subdivision 5, 
78.30 	until the tribe, subdivision, subsidiary, or business enterprise wholly owned by the Indian 
78.31 	tribe qualifies for an experience rating under section  268.051, subdivision 3. 

78.32 	Sec. 32. Minnesota Statutes 2006, section 268.053, subdivision 1, is amended to read:
79.1 		Subdivision 1.Election. (a) Any nonprofit organization that has employees in 
79.2 	covered employment shall must pay taxes on a quarterly basis pursuant to in accordance 
79.3 	with section 268.051 unless it elects to make reimbursements to the trust fund the amount 
79.4 	of unemployment benefits charged to its reimbursable account under section 268.047.
79.5 	The organization may elect to make reimbursements for a period of not less than 
79.6 	two calendar years beginning with the date that the organization was determined to be an 
79.7 	employer with covered employment by filing a notice of election not later than 30 calendar 
79.8 	days after the date of the determination.
79.9 	(b) Any nonprofit organization that makes an election will continue to be liable for 
79.10 	reimbursements until it files a notice terminating its election not later than 30 calendar 
79.11 	days before the beginning of the calendar year the termination is to be effective.
79.12 	(c) A nonprofit organization that has been making reimbursements that files a notice 
79.13 	of termination of election shall must be assigned the new employer tax rate under section 
79.14 	268.051, subdivision 5, for the calendar year of the termination of election and until it 
79.15 	qualifies for an experience rating under section 268.051, subdivision 3.
79.16 	(d) Any nonprofit organization that has been paying taxes may elect to make 
79.17 	reimbursements by filing no less than 30 calendar days before January 1 of any calendar 
79.18 	year a notice of election. Upon election, the commissioner shall establish a reimbursable 
79.19 	account for the nonprofit organization. An election shall be is allowed only if the nonprofit 
79.20 	organization has, since the beginning of the experience rating period under section 
79.21 	268.051, subdivision 3, paid taxes equal to or more than 125 percent of the unemployment 
79.22 	benefits used in computing the experience rating. In addition, any unemployment benefits 
79.23 	paid after the experience rating period shall be are transferred to the new reimbursable 
79.24 	account of the nonprofit organization. If the amount of taxes paid since the beginning of 
79.25 	the experience rating period exceeds 125 percent of the amount of unemployment benefits 
79.26 	paid during the experience rating period, that amount in excess shall be is applied against 
79.27 	any unemployment benefits paid after the experience rating period. The election shall is
79.28 	not be terminable by the organization for that and the next calendar year.
79.29 	(e) The commissioner may for good cause extend the period that a notice of election, 
79.30 	or a notice of termination, must be filed and may permit an election to be retroactive.
79.31 	(f) A notice of election or notice terminating election shall must be filed by electronic 
79.32 	transmission in a format prescribed by the commissioner.

79.33 	Sec. 33. Minnesota Statutes 2006, section 268.053, subdivision 3, is amended to read:
79.34 		Subd. 3.Payments. (a) Reimbursements, in the amount of unemployment benefits 
79.35 	charged to the reimbursable account, during a calendar quarter, must be received by the 
80.1 	department on or before the last day of the month following the month that the notice of 
80.2 	unemployment benefits paid is sent pursuant to under section  268.047, subdivision 5. 
80.3 	(b) Past due reimbursements shall be are subject to the same interest charges and 
80.4 	collection procedures that apply to past due taxes.
80.5 	(c) If any nonprofit organization is delinquent in making reimbursements, the 
80.6 	commissioner may terminate the organization's election to make reimbursements as of 
80.7 	the beginning of the next calendar year, and the termination shall be is effective for that 
80.8 	and the following calendar year. A nonprofit organization that has its election terminated 
80.9 	under this paragraph shall must be assigned the new employer tax rate under section  
80.10 	268.051, subdivision 5, until the organization qualifies for an experience rating under 
80.11 	section  268.051, subdivision 3. 

80.12 	Sec. 34. Minnesota Statutes 2006, section 268.057, subdivision 1, is amended to read:
80.13 		Subdivision 1.Amount computed presumed correct. Any amount due from 
80.14 	an employer, as computed by the commissioner, shall be is presumed to be correctly 
80.15 	determined and assessed, and the burden shall be is upon the employer to show its 
80.16 	incorrectness. A statement by the commissioner of the amount due shall be is admissible 
80.17 	in evidence in any court or administrative proceeding and shall be is prima facie evidence 
80.18 	of the facts in the statement.

80.19 	Sec. 35. Minnesota Statutes 2006, section 268.057, subdivision 2, is amended to read:
80.20 		Subd. 2.Priority of payments. (a) Any payment received from a taxpaying 
80.21 	employer shall must be applied in the following order:
80.22 	(1) unemployment insurance taxes; then
80.23 	(2) special assessment for interest on any federal loan; then
80.24 	(3) workforce development fee; then
80.25 	(4) interest on past due taxes; then
80.26 	(5) penalties, late fees, administrative service fees, and costs.
80.27 	(b) Paragraph (a) shall be is the priority used for all payments received from a 
80.28 	taxpaying employer, regardless of how the employer may designate the payment to be 
80.29 	applied, except when:
80.30 	(1) there is an outstanding lien and the employer designates that the payment made 
80.31 	should be applied to satisfy the lien;
80.32 	(2) the payment is for back pay withheld from an applicant pursuant to under section  
80.33 	268.085, subdivision 6, paragraph (b); 
81.1 	(3) the payment is specifically designated by the employer to be applied to an 
81.2 	outstanding overpayment of unemployment benefits of an applicant;
81.3 	(4) a court or administrative order directs that the payment be applied to a specific 
81.4 	obligation;
81.5 	(5) a preexisting payment plan provides for the application of payment; or
81.6 	(6) the commissioner, under the compromise authority of section  268.067, agrees to 
81.7 	apply the payment to a different priority. 

81.8 	Sec. 36. Minnesota Statutes 2006, section 268.057, subdivision 3, is amended to read:
81.9 		Subd. 3.Estimating the tax due. Only if an employer fails to make all necessary 
81.10 	records available for an audit pursuant to under section  268.186, paragraph (b), and the 
81.11 	commissioner has reason to believe the employer has not reported all the required wages 
81.12 	on the quarterly wage detail reports under section  268.044, may the commissioner then 
81.13 	estimate the amount of tax due and assess the employer the estimated amount due. 

81.14 	Sec. 37. Minnesota Statutes 2006, section 268.057, subdivision 4, is amended to read:
81.15 		Subd. 4.Costs. Any person that fails to pay any amount when due under this 
81.16 	chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral 
81.17 	to any public or private collection agency, or litigation costs, including attorney fees, 
81.18 	incurred in the collection of the amounts due.
81.19 	If any tendered payment of any amount due, is not honored when presented to 
81.20 	a financial institution for payment, any costs assessed the department by the financial 
81.21 	institution and a fee of $25 shall must be assessed to the person.
81.22 	Costs and fees collected under this subdivision shall be are credited to the 
81.23 	administration account to be used by the commissioner to ensure integrity in the 
81.24 	administration of the unemployment insurance program.

81.25 	Sec. 38. Minnesota Statutes 2006, section 268.057, subdivision 5, is amended to read:
81.26 		Subd. 5.Interest on amounts past due. If any amounts due from an employer 
81.27 	under this chapter or section  116L.20, except late fees under section  268.044, are not 
81.28 	received on the date due the unpaid balance shall bear bears interest at the rate of one and 
81.29 	one-half percent per month or any part thereof. Interest assessed, if not a whole dollar 
81.30 	amount, shall be is rounded down to the next lower whole dollar. Interest collected shall be
81.31 	is credited to the contingent account. Interest may be compromised under section  268.067. 

81.32 	Sec. 39. Minnesota Statutes 2006, section 268.057, subdivision 6, is amended to read:
82.1 		Subd. 6.Interest on judgments. Regardless of section  549.09, if judgment is 
82.2 	entered upon any past due amounts from an employer under this chapter or section  
82.3 	116L.20, the unpaid judgment shall bear bears interest at the rate specified in subdivision 
82.4 	5 until the date of payment. 

82.5 	Sec. 40. Minnesota Statutes 2006, section 268.057, subdivision 10, is amended to read:
82.6 		Subd. 10.Priorities under legal dissolutions or distributions. In the event of any 
82.7 	distribution of an employer's assets pursuant according to an order of any court, including 
82.8 	any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar 
82.9 	proceeding, taxes then or thereafter due shall must be paid in full prior to before all other 
82.10 	claims except claims for wages of not more than $1,000 per former employee, earned 
82.11 	within six months of the commencement of the proceedings. In the event of an employer's 
82.12 	adjudication in bankruptcy under federal law, taxes then or thereafter due shall be are
82.13 	entitled to the priority provided in that law for taxes due any state.

82.14 	Sec. 41. Minnesota Statutes 2006, section 268.058, is amended to read:
82.15 	268.058 LIEN, LEVY, SETOFF, AND CIVIL ACTION.
82.16 		Subdivision 1.Lien. (a) Any amount due under this chapter or section  116L.20, 
82.17 	from an applicant or an employer, shall become becomes a lien upon all the property, 
82.18 	within this state, both real and personal, of the person liable, from the date of assessment. 
82.19 	The term "date of assessment" means the date the obligation was due. 
82.20 	(b) The lien is not enforceable against any purchaser, mortgagee, pledgee, holder of 
82.21 	a Uniform Commercial Code security interest, mechanic's lien, or judgment lien creditor, 
82.22 	until a notice of lien has been filed with the county recorder of the county where the 
82.23 	property is situated, or in the case of personal property belonging to a nonresident person 
82.24 	in the Office of the Secretary of State. When the notice of lien is filed with the county 
82.25 	recorder, the fee for filing and indexing shall be is as provided in sections  272.483 and  
82.26 	272.484. 
82.27 	(c) Notices of liens, lien renewals, and lien releases, in a form prescribed by the 
82.28 	commissioner, may be filed with the county recorder or the secretary of state by mail, 
82.29 	personal delivery, or by electronic transmission into the computerized filing system of the 
82.30 	secretary of state. The secretary of state shall, on any notice filed with that office, transmit 
82.31 	the notice electronically to the appropriate county recorder. The filing officer, whether the 
82.32 	county recorder or the secretary of state, shall endorse and index a printout of the notice as 
82.33 	if the notice had been mailed or delivered.
83.1 	(d) County recorders and the secretary of state shall enter information on lien 
83.2 	notices, renewals, and releases into the central database of the secretary of state. For 
83.3 	notices filed electronically with the county recorders, the date and time of receipt of the 
83.4 	notice and county recorder's file number, and for notices filed electronically with the 
83.5 	secretary of state, the secretary of state's recording information, must be entered into the 
83.6 	central database before the close of the working day following the day of the original 
83.7 	data entry by the commissioner.
83.8 	(e) The lien imposed on personal property, even though properly filed, is not 
83.9 	enforceable against a purchaser of tangible personal property purchased at retail or 
83.10 	personal property listed as exempt in sections  550.37,  550.38, and  550.39. 
83.11 	(f) A notice of lien filed has priority over any security interest arising under chapter 
83.12 	336, article 9, that is perfected prior in time to the lien imposed by this subdivision, but 
83.13 	only if:
83.14 	(1) the perfected security interest secures property not in existence at the time the 
83.15 	notice of lien is filed; and
83.16 	(2) the property comes into existence after the 45th calendar day following the day 
83.17 	the notice of lien is filed, or after the secured party has actual notice or knowledge of the 
83.18 	lien filing, whichever is earlier.
83.19 	(g) The lien shall be is enforceable from the time the lien arises and for ten years 
83.20 	from the date of filing the notice of lien. A notice of lien may be renewed before expiration 
83.21 	for an additional ten years.
83.22 	(h) The lien shall be is enforceable by levy under subdivision 2 or by judgment lien 
83.23 	foreclosure under chapter 550.
83.24 	(i) The lien may be imposed upon property defined as homestead property in chapter 
83.25 	510 but may be enforced only upon the sale, transfer, or conveyance of the homestead 
83.26 	property.
83.27 	(j) The commissioner may sell and assign to a third party the commissioner's right of 
83.28 	redemption in specific real property for liens filed under this subdivision. The assignee 
83.29 	shall be is limited to the same rights of redemption as the commissioner, except that in 
83.30 	a bankruptcy proceeding, the assignee does not obtain the commissioner's priority. Any 
83.31 	proceeds from the sale of the right of redemption shall be are credited to the contingent 
83.32 	account.
83.33 		Subd. 2.Levy. (a) If any amount due under this chapter or section  116L.20, from 
83.34 	an applicant or an employer, is not paid when due, the amount may be collected by the 
83.35 	commissioner by direct levy upon all property and rights of property of the person liable 
84.1 	for the amount due except that exempt from execution under section  550.37. The term 
84.2 	"levy" includes the power of distraint and seizure by any means. 
84.3 	(b) In addition to a direct levy, the commissioner may issue a warrant to the sheriff 
84.4 	of any county who shall proceed within 60 calendar days to levy upon the property or 
84.5 	rights to property of the delinquent person within the county, except that exempt under 
84.6 	section  550.37. The sheriff shall sell that property necessary to satisfy the total amount 
84.7 	due, together with the commissioner's and sheriff's costs. The sales shall be are governed 
84.8 	by the law applicable to sales of like property on execution of a judgment. 
84.9 	(c) Notice and demand for payment of the total amount due shall must be mailed 
84.10 	to the delinquent person at least ten calendar days prior to before action being taken 
84.11 	under paragraphs (a) and (b).
84.12 	(d) If the commissioner has reason to believe that collection of the amount due is in 
84.13 	jeopardy, notice and demand for immediate payment may be made. If the total amount 
84.14 	due is not paid, the commissioner may proceed to collect by direct levy or issue a warrant 
84.15 	without regard to the ten calendar day period.
84.16 	(e) In executing the levy, the commissioner shall have all of the powers provided 
84.17 	in chapter 550 or any other law that provides for execution against property in this state. 
84.18 	The sale of property levied upon and the time and manner of redemption shall be is as 
84.19 	provided in chapter 550. The seal of the court shall is not be required. The levy may be 
84.20 	made whether or not the commissioner has commenced a legal action for collection.
84.21 	(f) Where any assessment has been made by the commissioner, the property seized 
84.22 	for collection of the total amount due shall must not be sold until any determination of 
84.23 	liability has become final. No sale shall may be made unless a portion of the amount due 
84.24 	remains unpaid for a period of more than 30 calendar days after the determination of 
84.25 	liability becomes final. Seized property may be sold at any time if:
84.26 	(1) the delinquent person consents in writing to the sale; or
84.27 	(2) the commissioner determines that the property is perishable or may become 
84.28 	greatly reduced in price or value by keeping, or that the property cannot be kept without 
84.29 	great expense.
84.30 	(g) Where a levy has been made to collect the amount due and the property seized 
84.31 	is properly included in a formal proceeding commenced under sections  524.3-401 to  
84.32 	524.3-505 and maintained under full supervision of the court, the property shall may not 
84.33 	be sold until the probate proceedings are completed or until the court orders. 
84.34 	(h) The property seized shall must be returned if the owner:
84.35 	(1) gives a surety bond equal to the appraised value of the owner's interest in the 
84.36 	property, as determined by the commissioner, or
85.1 	(2) deposits with the commissioner security in a form and amount the commissioner 
85.2 	considers necessary to insure payment of the liability.
85.3 	(i) If a levy or sale would irreparably injure rights in property that the court 
85.4 	determines superior to rights of the state, the court may grant an injunction to prohibit the 
85.5 	enforcement of the levy or to prohibit the sale.
85.6 	(j) Any person who fails or refuses to surrender without reasonable cause any 
85.7 	property or rights to property subject to levy shall be is personally liable in an amount equal 
85.8 	to the value of the property or rights not so surrendered, but not exceeding the amount due.
85.9 	(k) If the commissioner has seized the property of any individual, that individual 
85.10 	may, upon giving 48 hours notice to the commissioner and to the court, bring a claim for 
85.11 	equitable relief before the district court for the release of the property upon terms and 
85.12 	conditions the court considers equitable.
85.13 	(l) Any person in control or possession of property or rights to property upon which 
85.14 	a levy has been made who surrenders the property or rights to property, or who pays the 
85.15 	amount due shall be is discharged from any obligation or liability to the person liable for 
85.16 	the amount due with respect to the property or rights to property.
85.17 	(m) The notice of any levy may be served personally or by mail.
85.18 	(n) The commissioner may release the levy upon all or part of the property or rights 
85.19 	to property levied upon if the commissioner determines that the release will facilitate the 
85.20 	collection of the liability, but the release shall does not prevent any subsequent levy. 
85.21 	If the commissioner determines that property has been wrongfully levied upon, the 
85.22 	commissioner shall return:
85.23 	(1) the specific property levied upon, at any time; or
85.24 	(2) an amount of money equal to the amount of money levied upon, at any time 
85.25 	before the expiration of nine months from the date of levy.
85.26 	(o) Regardless of section  52.12, a levy upon a person's funds on deposit in a financial 
85.27 	institution located in this state, shall have has priority over any unexercised right of setoff 
85.28 	of the financial institution to apply the levied funds toward the balance of an outstanding 
85.29 	loan or loans owed by the person to the financial institution. A claim by the financial 
85.30 	institution that it exercised its right to setoff prior to before the levy must be substantiated 
85.31 	by evidence of the date of the setoff, and verified by an affidavit from a corporate officer 
85.32 	of the financial institution. For purposes of determining the priority of any levy under this 
85.33 	subdivision, the levy shall be is treated as if it were an execution under chapter 550. 
85.34 		Subd. 3.Right of setoff. (a) Upon certification by the commissioner to the 
85.35 	commissioner of finance, or to any state agency that disburses its own funds, that a person, 
85.36 	applicant, or employer has a liability under this chapter or section  116L.20, and that 
86.1 	the state has purchased personal services, supplies, contract services, or property from 
86.2 	that person, the commissioner of finance or the state agency shall set off and pay to the 
86.3 	commissioner an amount sufficient to satisfy the unpaid liability from funds appropriated 
86.4 	for payment of the obligation of the state otherwise due the person. No amount shall may
86.5 	be set off from any funds exempt under section  550.37 or funds due an individual who 
86.6 	receives assistance under chapter 256. 
86.7 	(b) All funds, whether general or dedicated, shall be are subject to setoff.
86.8 	Regardless of any law to the contrary, the commissioner shall have has first priority 
86.9 	to setoff from any funds otherwise due from the department to a delinquent person.
86.10 		Subd. 4.Collection by civil action. (a) Any amount due under this chapter or 
86.11 	section  116L.20, from an applicant or employer, may be collected by civil action in the 
86.12 	name of the state of Minnesota. Civil actions brought under this subdivision shall must be 
86.13 	heard as provided under section  16D.14. In any action, judgment shall must be entered in 
86.14 	default for the relief demanded in the complaint without proof, together with costs and 
86.15 	disbursements, upon the filing of an affidavit of default. 
86.16 	(b) Any person that is not a resident of this state and any resident person removed 
86.17 	from this state, shall be is considered to appoint the secretary of state as its agent for the 
86.18 	acceptance of process in any civil action. The commissioner shall file process with the 
86.19 	secretary of state, together with a payment of a fee of $15 and that service shall be is
86.20 	considered sufficient service and shall have has the same force and validity as if served 
86.21 	personally within this state. Notice of the service of process, together with a copy of 
86.22 	the process, shall must be sent by certified mail to the person's last known address. An 
86.23 	affidavit of compliance with this subdivision, and a copy of the notice of service shall must
86.24 	be appended to the original of the process and filed in the court.
86.25 	(c) No court filing fees, docketing fees, or release of judgment fees may be assessed 
86.26 	against the state for actions pursuant to under this subdivision.
86.27 		Subd. 5.Injunction forbidden. No injunction or other legal action to prevent the 
86.28 	determination, assessment, or collection of any amounts due under this chapter or section  
86.29 	116L.20, from an applicant or employer, shall be are allowed. 

86.30 	Sec. 42. Minnesota Statutes 2006, section 268.059, is amended to read:
86.31 	268.059 GARNISHMENT FOR DELINQUENT TAXES AND 
86.32 	UNEMPLOYMENT BENEFIT OVERPAYMENTS.
86.33 		Subdivision 1.Notice. The commissioner may give notice to any employer that 
86.34 	an employee owes any amounts due under this chapter or section  116L.20, and that 
86.35 	the obligation should be withheld from the employee's wages. The commissioner may 
87.1 	proceed only if the amount due is uncontested or if the time for any appeal has expired. 
87.2 	The commissioner shall may not proceed until 30 calendar days after sending to the debtor 
87.3 	employee, by mail or electronic transmission, a notice of intent to garnish wages and 
87.4 	exemption notice. That notice shall must list: 
87.5 	(1) the amount due from the debtor;
87.6 	(2) demand for immediate payment; and
87.7 	(3) the intention to serve a garnishment notice on the debtor's employer.
87.8 	The notice shall expire expires 180 calendar days after it has been sent to the debtor 
87.9 	provided that the notice may be renewed by sending a new notice that is in accordance 
87.10 	with this section. The renewed notice shall have has the effect of reinstating the priority 
87.11 	of the original notice. The exemption notice shall must be in substantially the same 
87.12 	form as in section  571.72. The notice shall must inform the debtor of the right to claim 
87.13 	exemptions contained in section  550.37, subdivision 14. If no claim of exemption is 
87.14 	received by the commissioner within 30 calendar days after sending of the notice, the 
87.15 	commissioner may proceed with the garnishment. The notice to the debtor's employer 
87.16 	may be served by mail or electronic transmission and shall must be in substantially the 
87.17 	same form as in section  571.75. 
87.18 		Subd. 2.Employer action. (a) Upon receipt of the garnishment notice, the 
87.19 	employer shall must withhold from the earnings due or to become due to the employee, 
87.20 	the amount shown on the notice plus accrued interest, subject to section  571.922. The 
87.21 	employer shall must continue to withhold each pay period the amount shown on the notice 
87.22 	plus accrued interest until the garnishment notice is released by the commissioner. Upon 
87.23 	receipt of notice by the employer, the claim of the commissioner shall have has priority 
87.24 	over any subsequent garnishments or wage assignments. The commissioner may arrange 
87.25 	between the employer and employee for withholding a portion of the total amount due 
87.26 	the employee each pay period, until the total amount shown on the notice plus accrued 
87.27 	interest has been withheld. 
87.28 	The "earnings due" any employee is as defined in section  571.921. 
87.29 	(b) The maximum garnishment allowed for any one pay period shall be decreased by 
87.30 	any amounts payable pursuant to under any other garnishment action served prior to before
87.31 	the garnishment notice, and any amounts covered by any irrevocable and previously 
87.32 	effective assignment of wages; the employer shall must give notice to the commissioner 
87.33 	of the amounts and the facts relating to the assignment within ten calendar days after the 
87.34 	service of the garnishment notice on the form provided by the commissioner.
88.1 	(c) Within ten calendar days after the expiration of the pay period, the employer 
88.2 	shall must remit to the commissioner, on a form and in the manner prescribed by the 
88.3 	commissioner, the amount withheld during each pay period.
88.4 		Subd. 3.Discharge or discipline prohibited. (a) If the employee ceases to be 
88.5 	employed by the employer before the full amount set forth on the garnishment notice 
88.6 	plus accrued interest has been withheld, the employer shall must immediately notify the 
88.7 	commissioner in writing or by electronic transmission, as prescribed by the commissioner, 
88.8 	of the termination date of the employee and the total amount withheld. No employer may 
88.9 	discharge or discipline any employee because the commissioner has proceeded under this 
88.10 	section. If an employer discharges an employee in violation of this section, the employee 
88.11 	shall have has the same remedy as provided in section  571.927, subdivision 2. 
88.12 	(b) This section shall applyapplies if the employer is the state of Minnesota or 
88.13 	any political subdivision.
88.14 	(c) The commissioner shall refund to the employee any excess amounts withheld 
88.15 	from the employee.
88.16 	(d) An employer that fails or refuses to comply with this section shall be is jointly 
88.17 	and severally liable for the total amount due from the employee. Any amount due from the 
88.18 	employer under this paragraph may be collected in the same manner as any other amounts 
88.19 	due from an employer under this chapter.

88.20 	Sec. 43. Minnesota Statutes 2006, section 268.0625, subdivision 5, is amended to read:
88.21 		Subd. 5.Licensing authority; duties. Upon request, the licensing authority shall
88.22 	must provide the commissioner with a list of all licensees, including the name, address, 
88.23 	business name and address, Social Security number, and business identification number. 
88.24 	The commissioner may request a list of the licensees no more than once each calendar 
88.25 	year. Regardless of section  268.19, the commissioner may release information necessary 
88.26 	to accomplish this section. 

88.27 	Sec. 44. Minnesota Statutes 2006, section 268.064, is amended to read:
88.28 	268.064 LIABILITY FOR DEBTS UPON ACQUISITION.
88.29 		Subdivision 1.Acquisition of organization, trade, business, or assets. Any person 
88.30 	who acquires all or part of the organization, trade, business or assets from an employer, is 
88.31 	jointly and severally liable, in an amount not to exceed the reasonable value of that part of 
88.32 	the organization, trade, business or assets acquired, for any amounts due and unpaid by the 
88.33 	employer. The amount of liability shall is, in addition, be a lien against the property or 
89.1 	assets acquired and shall be prior tois before all other unrecorded liens. This section does 
89.2 	not apply to sales in the normal course of the employer's business.
89.3 		Subd. 2.Reasonable value. The commissioner, upon the commissioner's own 
89.4 	motion or upon application of the acquiring person, shall determine the reasonable value 
89.5 	of the organization, trade, business or assets acquired based on available information. The 
89.6 	determination shall be is final unless the acquiring person, within 30 20 calendar days 
89.7 	after being sent the determination by mail or electronic transmission, files an appeal. 
89.8 	Proceedings on the appeal shall be are conducted in accordance with section  268.105. 
89.9 		Subd. 3.Statement of amount due. Prior to Before the date of acquisition, the 
89.10 	commissioner shall must furnish the acquiring person with a statement of the amounts 
89.11 	due and unpaid under this chapter or section  116L.20 upon the request of the potential 
89.12 	acquiring person and the release of the obligor. No release is required after the date of 
89.13 	acquisition. 

89.14 	Sec. 45. Minnesota Statutes 2006, section 268.065, subdivision 1, is amended to read:
89.15 		Subdivision 1.Subcontractors. A contractor who contracts with any subcontractor 
89.16 	shall must guarantee the payment of all amounts that are due or become due from the 
89.17 	subcontractor with respect to taxable wages paid on the contract by:
89.18 	(1) withholding sufficient money on the contract; or
89.19 	(2) requiring the subcontractor to provide a sufficient bond guaranteeing the payment 
89.20 	of all amounts that may become due.
89.21 	The contractor may make a request for verification that the subcontractor has 
89.22 	paid the taxes due 60 calendar days after the due date for filing the wage detail report 
89.23 	that includes the final wages paid for employment performed under the contract. If 
89.24 	the subcontractor has paid the amounts due for the period covered by the contract, the 
89.25 	commissioner may release the contractor from its liability.
89.26 	The words "contractor" and "subcontractor" include individuals, partnerships, firms, 
89.27 	or corporations, or other association of persons engaged in the construction industry.

89.28 	Sec. 46. Minnesota Statutes 2006, section 268.067, is amended to read:
89.29 	268.067 COMPROMISE.
89.30 	(a) The commissioner may compromise in whole or in part any action, determination, 
89.31 	or decision that affects only an employer and not an applicant, and that has occurred 
89.32 	during the prior 24 months. This paragraph may apply if it is determined by a court of law, 
89.33 	or a confession of judgment, that an applicant, while employed, wrongfully took from the 
89.34 	employer $500 or more in money or property.
90.1 	(b) The commissioner may at any time compromise any amount due from an 
90.2 	employer under this chapter or section  116L.20. 
90.3 	(c) Any compromise involving an amount over $2,500 shall must be authorized by 
90.4 	an attorney who is an employee of the department designated by the commissioner for 
90.5 	that purpose.
90.6 	(d) Any compromise must be in the best interest of the state of Minnesota.

90.7 	Sec. 47. Minnesota Statutes 2006, section 268.0675, is amended to read:
90.8 	268.0675 NO ELECTION OF REMEDY.
90.9 	Use of any remedy under this chapter for the collection of any amount due from an 
90.10 	employer or an applicant shall does not constitute an election of remedy to the exclusion 
90.11 	of any other available remedy.

90.12 	Sec. 48. Minnesota Statutes 2006, section 268.068, is amended to read:
90.13 	268.068 NOTICE TO WORKERS.
90.14 	Each employer shall must post and maintain printed statements of an individual's 
90.15 	right to apply for unemployment benefits in places readily accessible to workers in the 
90.16 	employer's service. The printed statements shall must be supplied by the commissioner at 
90.17 	no cost to an employer.

90.18 	Sec. 49. Minnesota Statutes 2006, section 268.069, subdivision 2, is amended to read:
90.19 		Subd. 2.Unemployment benefits paid from state funds. Unemployment benefits 
90.20 	are paid from state funds and shall are not be considered paid from any special insurance 
90.21 	plan, nor as paid by an employer. An application for unemployment benefits shall is
90.22 	not be considered a claim against an employer but shall be is considered a request for 
90.23 	unemployment benefits from the trust fund. The commissioner has the responsibility 
90.24 	for the proper payment of unemployment benefits regardless of the level of interest 
90.25 	or participation by an applicant or an employer in any determination or appeal. An 
90.26 	applicant's entitlement to unemployment benefits shall must be determined based upon 
90.27 	that information available without regard to any common law burden of proof, and 
90.28 	any agreement between an applicant and an employer shall is not be binding on the 
90.29 	commissioner in determining an applicant's entitlement. There shall be is no presumption 
90.30 	of entitlement or nonentitlement to unemployment benefits.

90.31 	Sec. 50. Minnesota Statutes 2006, section 268.069, subdivision 3, is amended to read:
91.1 		Subd. 3.Common law. There shall be is no equitable or common law denial or 
91.2 	allowance of unemployment benefits.

91.3 	Sec. 51. Minnesota Statutes 2006, section 268.084, is amended to read:
91.4 	268.084 PERSONAL IDENTIFICATION NUMBER; PRESUMPTION.
91.5 	(a) Each applicant shall must be issued a personal identification number (PIN) for 
91.6 	the purpose of filing continued biweekly requests for unemployment benefits, accessing 
91.7 	information, and engaging in other transactions with the department.
91.8 	(b) If a PIN assigned to an applicant is used in the filing of a continued biweekly 
91.9 	request for unemployment benefits under section  268.086 or any other type of transaction, 
91.10 	the applicant shall be is presumed to have been the individual using that PIN and presumed 
91.11 	to have received any unemployment benefit payment issued. This presumption may be 
91.12 	rebutted by a preponderance of the evidence showing that the applicant assigned the PIN 
91.13 	was not the individual who used that PIN in the transaction. 
91.14 	(c) The commissioner shall notify each applicant of this section.

91.15 	Sec. 52. Minnesota Statutes 2006, section 268.085, subdivision 3a, is amended to read:
91.16 		Subd. 3a.Workers' compensation and disability insurance offset. (a) An 
91.17 	applicant is not eligible to receive unemployment benefits for any week in which the 
91.18 	applicant is receiving or has received compensation for loss of wages equal to or in excess 
91.19 	of the applicant's weekly unemployment benefit amount under:
91.20 	(1) the workers' compensation law of this state;
91.21 	(2) the workers' compensation law of any other state or similar federal law; or
91.22 	(3) any insurance or trust fund paid in whole or in part by an employer.
91.23 	(b) This subdivision shall does not apply to an applicant who has a claim pending for 
91.24 	loss of wages under paragraph (a); however, before unemployment benefits may be paid 
91.25 	when a claim is pending, the issue of the applicant being able to work, as required under 
91.26 	subdivision 1, clause (2), shall be is determined under section  268.101, subdivision 3. If 
91.27 	the applicant later receives compensation as a result of the pending claim, the applicant is 
91.28 	subject to the provisions of paragraph (a) and the unemployment benefits paid shall be are
91.29 	subject to recoupment by the commissioner to the extent that the compensation constitutes 
91.30 	overpaid unemployment benefits. 
91.31 	(c) If the amount of compensation described under paragraph (a) for any week is 
91.32 	less than the applicant's weekly unemployment benefit amount, unemployment benefits 
91.33 	requested for that week shall be are reduced by the amount of that compensation payment.

92.1 	Sec. 53. Minnesota Statutes 2006, section 268.085, subdivision 4, is amended to read:
92.2 		Subd. 4.Social Security benefits. (a) Any applicant aged 62 or over shall be is
92.3 	required to state when filing an application for unemployment benefits and when filing 
92.4 	continued biweekly requests for unemployment benefits whether if the applicant is 
92.5 	receiving, has filed for, or intends to file for, primary Social Security old age benefits for 
92.6 	any week during the benefit year.
92.7 	There shall must be deducted from an applicant's weekly unemployment benefit 
92.8 	amount 50 percent of the weekly equivalent of the primary Social Security old age benefit 
92.9 	the applicant has received, has filed for, or intends to file for, with respect to that week.
92.10 	(b) An applicant who is receiving, has received, or has filed for primary Social 
92.11 	Security disability benefits
92.12 	for any week during the benefit year shall must be determined unable to work and 
92.13 	unavailable for suitable employment for that week, unless:
92.14 	(1) the Social Security Administration approved the collecting of primary Social 
92.15 	Security disability benefits each month the applicant was employed during the base 
92.16 	period; or
92.17 	(2) the applicant provides a statement from an appropriate health care professional 
92.18 	who is aware of the applicant's Social Security disability claim and the basis for that claim, 
92.19 	certifying that the applicant is able to work and available for suitable employment.
92.20 	If an applicant meets the requirements of clause (1) or (2), then there shall must
92.21 	be deducted from the applicant's weekly unemployment benefit amount 50 percent of 
92.22 	the weekly equivalent of the primary Social Security disability benefits the applicant is 
92.23 	receiving, has received, or has filed for, with respect to that week; provided, however, 
92.24 	that if the Social Security Administration determines that an individual is not entitled to 
92.25 	receive primary Social Security disability benefits for any week the applicant has applied 
92.26 	for those benefits, the 50 percent deduction shall does not apply to that week.
92.27 	(c) Information from the Social Security Administration shall be is considered 
92.28 	conclusive, absent specific evidence showing that the information was erroneous.
92.29 	(d) If the computation of the reduced unemployment benefits is not a whole dollar, it 
92.30 	shall be is rounded down to the next lower whole dollar.
92.31 	(e) This subdivision does not apply to Social Security survivor benefits.

92.32 	Sec. 54. Minnesota Statutes 2006, section 268.085, subdivision 6, is amended to read:
92.33 		Subd. 6.Receipt of back pay. (a) Back pay received by an applicant with respect to 
92.34 	any week occurring in the 104 weeks prior to before the payment of the back pay shall
92.35 	must be deducted from unemployment benefits paid for that week.
93.1 	If the back pay is not paid with respect to a specific period, the back pay shall must
93.2 	be applied to the period immediately following the last day of employment.
93.3 	(b) If the back pay is reduced by the amount of unemployment benefits that have 
93.4 	been paid, the amount of back pay withheld shall must be:
93.5 	(1) paid by the employer to the trust fund within 30 calendar days and subject to the 
93.6 	same collection procedures that apply to past due taxes;
93.7 	(2) applied to unemployment benefit overpayments resulting from the payment of 
93.8 	the back pay; and
93.9 	(3) credited to the maximum amount of unemployment benefits available to the 
93.10 	applicant in a benefit year that includes the weeks for which back pay was deducted.
93.11 	(c) Unemployment benefits paid the applicant shall must be removed from the 
93.12 	computation of the tax rate for taxpaying employers and removed from the reimbursable 
93.13 	account for nonprofit and government employers that have elected to be liable for 
93.14 	reimbursements in the calendar quarter the trust fund receives payment.
93.15 	(d) Payments to the trust fund under this subdivision shall be are considered as 
93.16 	made by the applicant.

93.17 	Sec. 55. Minnesota Statutes 2006, section 268.085, subdivision 7, is amended to read:
93.18 		Subd. 7.School employees. (a) No wage credits in any amount from any 
93.19 	employment with any educational institution or institutions earned in any capacity may 
93.20 	be used for unemployment benefit purposes for any week during the period between 
93.21 	two successive academic years or terms if:
93.22 	(1) the applicant had employment for any educational institution or institutions in 
93.23 	the prior academic year or term; and
93.24 	(2) there is a reasonable assurance that the applicant will have employment for 
93.25 	any educational institution or institutions in the following academic year or term, unless 
93.26 	that subsequent employment is substantially less favorable than the employment of the 
93.27 	prior academic year or term.
93.28 	(b) Paragraph (a) shall does not apply to an applicant who, at the end of the prior 
93.29 	academic year or term, had an agreement for a definite period of employment between 
93.30 	academic years or terms in other than an instructional, research, or principal administrative 
93.31 	capacity and the educational institution or institutions failed to provide that employment.
93.32 	(c) If unemployment benefits are denied to any applicant under paragraph (a) 
93.33 	who was employed in the prior academic year or term in other than an instructional, 
93.34 	research, or principal administrative capacity and who was not offered an opportunity to 
93.35 	perform the employment in the following academic year or term, the applicant shall be is
94.1 	entitled to retroactive unemployment benefits for each week during the period between 
94.2 	academic years or terms that the applicant filed a timely continued biweekly request 
94.3 	for unemployment benefits, but unemployment benefits were denied solely because of 
94.4 	paragraph (a).
94.5 	(d) An educational assistant shall is not be considered to be in an instructional, 
94.6 	research, or principal administrative capacity.
94.7 	(e) Paragraph (a) shall apply applies to any vacation period or holiday recess if the 
94.8 	applicant was employed immediately before the vacation period or holiday recess, and 
94.9 	there is a reasonable assurance that the applicant will be employed immediately following 
94.10 	the vacation period or holiday recess.
94.11 	(f) This subdivision shall apply applies to employment with an educational service 
94.12 	agency if the applicant performed the services at an educational institution or institutions. 
94.13 	"Educational service agency" means a governmental agency or entity established and 
94.14 	operated exclusively for the purpose of providing services to one or more educational 
94.15 	institutions. This subdivision shall also apply applies to employment with Minnesota or 
94.16 	a political subdivision, or a nonprofit organization, if the services are provided to or on 
94.17 	behalf of an educational institution or institutions.
94.18 	(g) Paragraphs (a) and (e) shall apply beginning the Sunday of the week that there 
94.19 	is a reasonable assurance of employment.
94.20 	(h) Employment with multiple education institutions shall must be aggregated for 
94.21 	purposes of application of this subdivision.
94.22 	(i) If all of the applicant's employment with any educational institution or institutions 
94.23 	during the prior academic year or term consisted of on-call employment, and the applicant 
94.24 	has a reasonable assurance of any on-call employment with any educational institution 
94.25 	or institutions for the following academic year or term, it shall is not be considered 
94.26 	substantially less favorable employment.
94.27 	(j) Paragraph (a) shall also apply applies to the period between two regular but 
94.28 	not successive terms.
94.29 	(k) A "reasonable assurance" may be written, oral, implied, or established by 
94.30 	custom or practice.
94.31 	(l) An "educational institution" is an educational entity operated by Minnesota 
94.32 	or a political subdivision or an instrumentality thereof, or an educational organization 
94.33 	described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue 
94.34 	Code, and exempt from income tax under section 501(a).

94.35 	Sec. 56. Minnesota Statutes 2006, section 268.085, subdivision 8, is amended to read:
95.1 		Subd. 8.Services for school contractors. (a) Wage credits from an employer 
95.2 	are subject to subdivision 7, if:
95.3 	(1) the employment was provided pursuant to under a contract between the employer 
95.4 	and an elementary or secondary school; and
95.5 	(2) the contract was for services that the elementary or secondary school could have 
95.6 	had performed by its employees.
95.7 	(b) Wage credits from an employer are not subject to subdivision 7 if:
95.8 	(1) those wage credits were earned by an employee of a private employer performing 
95.9 	work pursuant to under a contract between the employer and an elementary or secondary 
95.10 	school; and
95.11 	(2) the employment was related to food services provided to the school by the 
95.12 	employer.

95.13 	Sec. 57. Minnesota Statutes 2006, section 268.085, subdivision 11, is amended to read:
95.14 		Subd. 11.Athletes and coaches. Unemployment benefits shall must not be paid to 
95.15 	an applicant on the basis of any wage credits from employment that consists of coaching 
95.16 	or participating in sports or athletic events or training or preparing to participate for any 
95.17 	week during the period between two successive sport seasons, or similar periods, if:
95.18 	(1) the applicant was so employed in the prior season or similar period, and
95.19 	(2) there is a reasonable assurance that the applicant will be so employed in the 
95.20 	following season or similar period.

95.21 	Sec. 58. Minnesota Statutes 2006, section 268.085, subdivision 12, is amended to read:
95.22 		Subd. 12.Aliens. (a) An alien shall be is ineligible for unemployment benefits 
95.23 	for any week the alien is not authorized to work in the United States under federal 
95.24 	law. Information from the Bureau of Citizenship and Immigration Services shall be
95.25 	is considered conclusive, absent specific evidence that the information was erroneous. 
95.26 	Pursuant to Under the existing agreement between the United States and Canada, this 
95.27 	paragraph shall does not apply to an applicant who is a Canadian citizen and has returned 
95.28 	to and is living in Canada each week unemployment benefits are requested.
95.29 	(b) Unemployment benefits shall must not be paid on the basis of wage credits 
95.30 	earned by an alien unless the alien (1) was lawfully admitted for permanent residence at 
95.31 	the time of the employment, (2) was lawfully present for the purposes of the employment, 
95.32 	or (3) was permanently residing in the United States under color of law at the time of the 
95.33 	employment.
96.1 	(c) Any information required of applicants applying for unemployment benefits to 
96.2 	determine eligibility because of their alien status shall must be required from all applicants.

96.3 	Sec. 59. Minnesota Statutes 2006, section 268.085, subdivision 13, is amended to read:
96.4 		Subd. 13.Suspension from employment. (a) An applicant who has been 
96.5 	suspended from employment without pay for 30 calendar days or less, as a result of 
96.6 	employment misconduct as defined under section  268.095, subdivision 6, shall be is
96.7 	ineligible for unemployment benefits beginning the Sunday of the week that the applicant 
96.8 	was suspended and continuing for the duration of the suspension. 
96.9 	(b) A suspension from employment without pay for more than 30 calendar days 
96.10 	shall be is considered a discharge from employment under section  268.095, subdivision 5. 
96.11 	(c) A suspension from employment with pay, regardless of duration, shall is not be
96.12 	considered a separation from employment and the applicant shall be is ineligible for 
96.13 	unemployment benefits for the duration of the suspension with pay.

96.14 	Sec. 60. Minnesota Statutes 2006, section 268.085, subdivision 13a, is amended to 
96.15 	read:
96.16 		Subd. 13a.Leave of absence. (a) An applicant on a voluntary leave of absence 
96.17 	shall be is ineligible for unemployment benefits for the duration of the leave of absence. 
96.18 	An applicant on an involuntary leave of absence shall is not be ineligible under this 
96.19 	subdivision.
96.20 	A leave of absence is voluntary when work that the applicant can then perform is 
96.21 	available with the applicant's employer but the applicant chooses not to work. A medical 
96.22 	leave of absence shall is not be presumed to be voluntary.
96.23 	(b) A period of vacation requested by the applicant, paid or unpaid, shall be is
96.24 	considered a voluntary leave of absence. A vacation period assigned by an employer 
96.25 	under: (1) a uniform vacation shutdown; (2) a collective bargaining agreement; or (3) an 
96.26 	established employer policy, shall be is considered an involuntary leave of absence.
96.27 	(c) A voluntary leave of absence shall is not be considered a quit and an involuntary 
96.28 	leave of absence shall is not be considered a discharge from employment for purposes 
96.29 	of section  268.095. 
96.30 	(d) An applicant who is on a paid leave of absence, whether the leave of absence 
96.31 	is voluntary or involuntary, shall be is ineligible for unemployment benefits for the 
96.32 	duration of the leave.
97.1 	(e) This subdivision shall apply applies to a leave of absence from a base period 
97.2 	employer, an employer during the period between the end of the base period and the 
97.3 	effective date of the benefit account, or an employer during the benefit year.

97.4 	Sec. 61. Minnesota Statutes 2006, section 268.085, subdivision 13b, is amended to 
97.5 	read:
97.6 		Subd. 13b.Labor dispute. (a) An applicant who has stopped working because of a 
97.7 	labor dispute at the establishment where the applicant is employed shall be is ineligible for 
97.8 	unemployment benefits:
97.9 	(1) until the end of the calendar week that the labor dispute was in active progress if 
97.10 	the applicant is participating in or directly interested in the labor dispute; or
97.11 	(2) until the end of the calendar week that the labor dispute began if the applicant is 
97.12 	not participating in or directly interested in the labor dispute.
97.13 	Participation includes any failure or refusal by an applicant, voluntarily or 
97.14 	involuntarily, to accept and perform available and customary work at the establishment.
97.15 	(b) An applicant who has stopped working because of a jurisdictional controversy 
97.16 	between two or more labor organizations at the establishment where the applicant is 
97.17 	employed shall be is ineligible for unemployment benefits until the end of the calendar 
97.18 	week that the jurisdictional controversy was in progress.
97.19 	(c) An applicant shall is not be ineligible for unemployment benefits under this 
97.20 	subdivision if:
97.21 	(1) the applicant stops working because of an employer's intentional failure to 
97.22 	observe the terms of the safety and health section of a union contract or failure to comply 
97.23 	with an official citation for a violation of federal or state laws involving occupational 
97.24 	safety and health;
97.25 	(2) the applicant stops working because of a lockout; or
97.26 	(3) the applicant is discharged prior to before the beginning of a labor dispute.
97.27 	(d) A quit from employment by the applicant during the time that the labor dispute is 
97.28 	in active progress at the establishment shall does not terminate the applicant's participation 
97.29 	in or direct interest in the labor dispute for purposes of this subdivision.
97.30 	(e) For the purpose of this subdivision, the term "labor dispute" shall have has the 
97.31 	same definition as provided in section  179.01, subdivision 7. 

97.32 	Sec. 62. Minnesota Statutes 2006, section 268.085, subdivision 16, is amended to read:
97.33 		Subd. 16.Actively seeking suitable employment defined. (a) "Actively seeking 
97.34 	suitable employment" means those reasonable, diligent efforts an individual in similar 
98.1 	circumstances would make if genuinely interested in obtaining suitable employment under 
98.2 	the existing conditions in the labor market area. Limiting the search to positions that are 
98.3 	not available or are above the applicant's training, experience, and qualifications is not 
98.4 	"actively seeking suitable employment."
98.5 	(b) To be considered "actively seeking suitable employment" an applicant shall
98.6 	must, when reasonable, contact those employers from whom the applicant was laid off 
98.7 	due to because of lack of work and request suitable employment.
98.8 	(c) If reasonable prospects of suitable employment in the applicant's usual or 
98.9 	customary occupation do not exist, the applicant must actively seek other suitable 
98.10 	employment to be considered "actively seeking suitable employment." This applies to an 
98.11 	applicant who is seasonally unemployed.
98.12 	(d) An applicant who is seeking employment only through a union is not actively 
98.13 	seeking suitable employment unless the applicant is in an occupation where it is required 
98.14 	by union rule that all the hiring in that locality is done through the union. The applicant 
98.15 	must be a union member in good standing, registered with the union for employment, 
98.16 	and in compliance with other union rules to be considered "actively seeking suitable 
98.17 	employment."

98.18 	Sec. 63. Minnesota Statutes 2006, section 268.086, subdivision 1, is amended to read:
98.19 		Subdivision 1.Active benefit account. (a) A benefit account shall be is considered 
98.20 	active only when an applicant files continued biweekly requests for unemployment 
98.21 	benefits in the manner and within the time periods prescribed. A benefit account shall be
98.22 	is considered inactive if an applicant stops filing a continued biweekly request or fails to 
98.23 	file a continued biweekly request within the time period required. The benefit account 
98.24 	shall be is considered inactive as of the Sunday following the last week or biweekly period 
98.25 	for which a continued biweekly request has been timely filed.
98.26 	(b) A benefit account that is inactive shall be is reactivated the Sunday of the week 
98.27 	that the applicant makes a contact with the department to do so, in the manner prescribed 
98.28 	by the commissioner for reactivating that applicant's benefit account. Upon specific 
98.29 	request of an applicant, a benefit account may be reactivated effective up to two weeks 
98.30 	prior to before the week the applicant made contact with the department to reactivate.

98.31 	Sec. 64. Minnesota Statutes 2006, section 268.086, subdivision 3, is amended to read:
98.32 		Subd. 3.Methods for filing continued biweekly requests for unemployment 
98.33 	benefits. (a) The commissioner shall designate to each applicant one of the following 
98.34 	methods for filing a continued biweekly request:
99.1 	(1) by electronic transmission under subdivision 5;
99.2 	(2) by mail under subdivision 6; or
99.3 	(3) by in-person interview under subdivision 7.
99.4 	(b) The method designated by the commissioner shall be is the only method allowed 
99.5 	for filing a continued biweekly request by that applicant. An applicant may ask that 
99.6 	one of the other allowed methods be designated and the commissioner shall consider 
99.7 	inconvenience to the applicant as well as administrative capacity in determining whether 
99.8 	to allow an applicant to change the designated method for filing a continued biweekly 
99.9 	request for unemployment benefits.

99.10 	Sec. 65. Minnesota Statutes 2006, section 268.086, subdivision 5, is amended to read:
99.11 		Subd. 5.Continued biweekly request for unemployment benefits by electronic 
99.12 	transmission. (a) A continued biweekly request for unemployment benefits by electronic 
99.13 	transmission shall must be filed to that electronic mail address or Internet address 
99.14 	prescribed by the commissioner for that applicant. In order to constitute a continued 
99.15 	biweekly request, all information asked for, including information authenticating that the 
99.16 	applicant is sending the transmission, must be provided in the format required. If all of 
99.17 	the information asked for is not provided, the communication shall does not constitute a 
99.18 	continued biweekly request for unemployment benefits.
99.19 	The electronic transmission communication must be filed on the date required for 
99.20 	the applicant for filing a continued biweekly request by electronic transmission.
99.21 	(b) If the electronic transmission continued biweekly request is not filed on the date 
99.22 	required, a continued biweekly request by electronic transmission shall must be accepted 
99.23 	if the applicant files the continued biweekly request by electronic transmission within 14 
99.24 	days following the week in which the date required occurred. If the continued biweekly 
99.25 	request by electronic transmission is not filed within 14 days following the week in which 
99.26 	the date required occurred, the electronic continued biweekly request shall must not be 
99.27 	accepted and the applicant shall be is ineligible for unemployment benefits for the period 
99.28 	covered by the continued biweekly request and the benefit account shall be is considered 
99.29 	inactive, unless the applicant shows good cause for failing to file the continued biweekly 
99.30 	request by electronic transmission within the time period required.

99.31 	Sec. 66. Minnesota Statutes 2006, section 268.086, subdivision 6, is amended to read:
99.32 		Subd. 6.Continued biweekly request for unemployment benefits by mail. (a) A 
99.33 	continued biweekly request for unemployment benefits by mail shall must be on a form 
100.1 	prescribed by the commissioner. The form, in order to constitute a continued biweekly 
100.2 	request, must be totally completed and signed by the applicant.
100.3 	The form must be filed on the date required for the applicant for filing a continued 
100.4 	biweekly request by mail, in an envelope with postage prepaid thereon, and sent to the 
100.5 	address required by the commissioner for that applicant.
100.6 	(b) If the mail continued biweekly request for unemployment benefits is not filed on 
100.7 	the date required, a continued biweekly request shall must be accepted if the form is filed 
100.8 	by mail within 14 days following the week in which the date required occurred. If the form 
100.9 	is not filed within 14 days following the week in which the date required occurred, the 
100.10 	form shall will not be accepted and the applicant shall be is ineligible for unemployment 
100.11 	benefits for the period covered by the continued biweekly request for unemployment 
100.12 	benefits and the benefit account shall be is considered inactive, unless the applicant shows 
100.13 	good cause for failing to file the form by mail within the time period required.
100.14 	(c) If the applicant has been designated to file a continued biweekly request 
100.15 	for unemployment benefits by mail, an applicant may submit the form by facsimile 
100.16 	transmission on the day otherwise required for mailing, or within 14 days following the 
100.17 	week in which the date required occurred. A form submitted by facsimile transmission 
100.18 	shall must be sent only to the telephone number assigned for that purpose.
100.19 	(d) An applicant who has been designated to file a continued biweekly request by 
100.20 	mail may personally deliver a continued biweekly request form only to the location to 
100.21 	which the form was otherwise required to be mailed.

100.22 	Sec. 67. Minnesota Statutes 2006, section 268.086, subdivision 8, is amended to read:
100.23 		Subd. 8.Good cause. A continued biweekly request for unemployment benefits 
100.24 	that is not filed within the time periods required by this section shall may be accepted only 
100.25 	for those weeks that the applicant has "good cause" for not filing within the time periods 
100.26 	required.

100.27 	Sec. 68. Minnesota Statutes 2006, section 268.086, subdivision 9, is amended to read:
100.28 		Subd. 9.Good cause defined. "Good cause" for purposes of this section is a 
100.29 	compelling substantial reason that would have prevented a reasonable person acting with 
100.30 	due diligence from filing a continued biweekly request for unemployment benefits within 
100.31 	the time periods required.
100.32 	"Good cause" shall does not include forgetfulness, loss of the continued biweekly 
100.33 	request form, having returned to work, or inability to file a continued biweekly request 
100.34 	for unemployment benefits by the method designated if the applicant was aware of 
101.1 	the inability and did not make diligent effort to have the method of filing a continued 
101.2 	biweekly request changed by the commissioner. "Good cause" shall does not include 
101.3 	having previously made an attempt to file a continued biweekly request for unemployment 
101.4 	benefits but where the communication was not considered a continued biweekly request 
101.5 	because the applicant failed to submit all required information.

101.6 	Sec. 69. Minnesota Statutes 2006, section 268.087, is amended to read:
101.7 	268.087 UNEMPLOYMENT BENEFITS DUE DECEASED PERSONS.
101.8 	If unemployment benefits are due and payable at the time of an applicant's death, 
101.9 	those benefits may must, upon application, be paid to the personal representative of the 
101.10 	estate of the deceased. In the event that no personal representative is appointed, the 
101.11 	unemployment benefits may must, upon application be paid in the following order: (1) the 
101.12 	surviving spouse, (2) the surviving child or children, or (3) the surviving parent or parents.
101.13 	An individual seeking payment shall must complete an application prescribed by the 
101.14 	commissioner and the payment of unemployment benefits shall discharge discharges the 
101.15 	obligations to the applicant and no other individual shall may claim or assert any right 
101.16 	to those unemployment benefits.

101.17 	Sec. 70. Minnesota Statutes 2006, section 268.095, subdivision 2, is amended to read:
101.18 		Subd. 2.Quit defined. (a) A quit from employment occurs when the decision to end 
101.19 	the employment was, at the time the employment ended, the employee's.
101.20 	(b) An employee who has been notified that the employee will be discharged in the 
101.21 	future, who chooses to end the employment while employment in any capacity is still 
101.22 	available, shall be is considered to have quit the employment.
101.23 	(c) An employee who seeks to withdraw a previously submitted notice of quitting 
101.24 	shall be is considered to have quit the employment if the employer does not agree that the 
101.25 	notice may be withdrawn.
101.26 	(d) An applicant who, within five calendar days after completion of a suitable 
101.27 	temporary job assignment from a staffing service employer, (1) fails without good cause to 
101.28 	affirmatively request an additional job assignment, or (2) refuses without good cause an 
101.29 	additional suitable job assignment offered, shall be is considered to have quit employment.
101.30 	This paragraph shall apply applies only if, at the time of beginning of employment 
101.31 	with the staffing service employer, the applicant signed and was provided a copy of a 
101.32 	separate document written in clear and concise language that informed the applicant of 
101.33 	this paragraph and that unemployment benefits may be affected.
102.1 	For purposes of this paragraph, "good cause" shall be is a reason that is significant 
102.2 	and would compel an average, reasonable worker, who would otherwise want an 
102.3 	additional temporary job assignment with the staffing service employer, (1) to fail to 
102.4 	contact the staffing service employer, or (2) to refuse an offered assignment.
102.5 	For purposes of this paragraph, a "staffing service employer" is an employer whose 
102.6 	business involves employing individuals directly for the purpose of furnishing temporary 
102.7 	job assignment workers to clients of the staffing service.

102.8 	Sec. 71. Minnesota Statutes 2006, section 268.095, subdivision 3, is amended to read:
102.9 		Subd. 3.Good reason caused by the employer defined. (a) A good reason caused 
102.10 	by the employer for quitting is a reason:
102.11 	(1) that is directly related to the employment and for which the employer is 
102.12 	responsible;
102.13 	(2) that is adverse to the worker; and
102.14 	(3) that would compel an average, reasonable worker to quit and become 
102.15 	unemployed rather than remaining in the employment.
102.16 	(b) The analysis required in paragraph (a) must be applied to the specific facts 
102.17 	of each case.
102.18 	(c) If an applicant was subjected to adverse working conditions by the employer, the 
102.19 	applicant must complain to the employer and give the employer a reasonable opportunity 
102.20 	to correct the adverse working conditions before that may be considered a good reason 
102.21 	caused by the employer for quitting.
102.22 	(d) A reason for quitting employment shall is not be considered a good reason 
102.23 	caused by the employer for quitting if the reason for quitting occurred because of the 
102.24 	applicant's employment misconduct.
102.25 	(e) Notification of discharge in the future, including a layoff due to because of lack 
102.26 	of work, shall is not be considered a good reason caused by the employer for quitting.
102.27 	(f) An applicant has a good reason caused by the employer for quitting if it results 
102.28 	from sexual harassment of which the employer was aware, or should have been aware, 
102.29 	and the employer failed to take timely and appropriate action. Sexual harassment means 
102.30 	unwelcome sexual advances, requests for sexual favors, sexually motivated physical 
102.31 	contact or other conduct or communication of a sexual nature when:
102.32 	(1) the applicant's submission to the conduct or communication is made a term 
102.33 	or condition of the employment;
102.34 	(2) the applicant's submission to or rejection of the conduct or communication is the 
102.35 	basis for decisions affecting employment; or
103.1 	(3) the conduct or communication has the purpose or effect of substantially 
103.2 	interfering with an applicant's work performance or creating an intimidating, hostile, or 
103.3 	offensive working environment.
103.4 	(g) The definition of a good reason caused by the employer for quitting employment 
103.5 	provided by this subdivision shall be is exclusive and no other definition shall apply
103.6 	applies.

103.7 	Sec. 72. Minnesota Statutes 2006, section 268.095, subdivision 5, is amended to read:
103.8 		Subd. 5.Discharge defined. (a) A discharge from employment occurs when any 
103.9 	words or actions by an employer would lead a reasonable employee to believe that the 
103.10 	employer will no longer allow the employee to work for the employer in any capacity. A 
103.11 	layoff due to because of lack of work shall be is considered a discharge. A suspension from 
103.12 	employment without pay of more than 30 calendar days shall be is considered a discharge.
103.13 	(b) An employee who gives notice of intention to quit the employment and is not 
103.14 	allowed by the employer to work the entire notice period shall be is considered discharged 
103.15 	from the employment as of the date the employer will no longer allow the employee to 
103.16 	work. If the discharge occurs within 30 calendar days prior to before the intended date of 
103.17 	quitting, then, as of the intended date of quitting, the separation from employment shall be
103.18 	is considered a quit from employment subject to subdivision 1.

103.19 	Sec. 73. Minnesota Statutes 2006, section 268.095, subdivision 6a, is amended to read:
103.20 		Subd. 6a.Aggravated employment misconduct defined. (a) For the purpose of 
103.21 	this section, "aggravated employment misconduct" means:
103.22 	(1) the commission of any act, on the job or off the job, that would amount to a gross 
103.23 	misdemeanor or felony if the act substantially interfered with the employment or had a 
103.24 	significant adverse effect on the employment; or
103.25 	(2) for an employee of a facility as defined in section  626.5572, aggravated 
103.26 	employment misconduct includes an act of patient or resident abuse, financial exploitation, 
103.27 	or recurring or serious neglect, as defined in section  626.5572 and applicable rules. 
103.28 	(b) If an applicant is convicted of a gross misdemeanor or felony for the same act for 
103.29 	which the applicant was discharged, it is aggravated employment misconduct if the act 
103.30 	substantially interfered with the employment or had a significant adverse effect on the 
103.31 	employment.
103.32 	(c) The definition of aggravated employment misconduct provided by this 
103.33 	subdivision shall be is exclusive and no other definition shall apply applies.

104.1 	Sec. 74. Minnesota Statutes 2006, section 268.095, subdivision 11, is amended to read:
104.2 		Subd. 11.Application. (a) Section 268.085, subdivision 13c, and this section shall 
104.3 	apply applies to all covered employment, full time or part time, temporary or of limited 
104.4 	duration, permanent or of indefinite duration, that occurred in Minnesota during the base 
104.5 	period, the period between the end of the base period and the effective date of the benefit 
104.6 	account, or the benefit year, except as provided for in subdivision 1, clause (5).
104.7 	(b) Paragraph (a) shall also apply applies to employment covered under an 
104.8 	unemployment insurance program of any other state or established by an act of Congress.

104.9 	Sec. 75. Minnesota Statutes 2006, section 268.103, subdivision 1, is amended to read:
104.10 		Subdivision 1.In commissioner's discretion. The commissioner shall have the 
104.11 	discretion to allow an appeal to be filed by electronic transmission. If the commissioner 
104.12 	allows an appeal to be filed by electronic transmission, that shall must be clearly set out on 
104.13 	the determination or decision subject to appeal.
104.14 	The commissioner may restrict the manner, format, and conditions under which 
104.15 	an appeal by electronic transmission may be filed. Any restrictions as to days, hours, 
104.16 	telephone number, electronic address, or other conditions, shall must be clearly set out on 
104.17 	the determination or decision subject to appeal.
104.18 	All information requested by the commissioner when an appeal is filed by electronic 
104.19 	transmission must be supplied or the communication shall does not constitute an appeal.

104.20 	Sec. 76. Minnesota Statutes 2006, section 268.103, subdivision 2, is amended to read:
104.21 		Subd. 2.Applicant's appeal by mail. (a) The commissioner must allow an 
104.22 	applicant to file an appeal by mail even if an appeal by electronic transmission is allowed.
104.23 	(b) A written statement delivered or mailed to the department that could reasonably 
104.24 	be interpreted to mean that an involved applicant is in disagreement with a specific 
104.25 	determination or decision shall be is considered an appeal. No specific words need be used 
104.26 	for the written statement to be considered an appeal.

104.27 	Sec. 77. Minnesota Statutes 2006, section 268.105, subdivision 3, is amended to read:
104.28 		Subd. 3.Withdrawal of appeal. (a) Any appeal that is pending before an 
104.29 	unemployment law judge may be withdrawn by the appealing person, or an authorized 
104.30 	representative of that person, upon filing of a notice of withdrawal.
104.31 	(b) The appeal shall must, by order, be dismissed if a notice of withdrawal is filed, 
104.32 	unless an unemployment law judge directs that further adjudication is required for a 
104.33 	proper result.
105.1 	(c) A notice of withdrawal may be filed by mail or by electronic transmission.

105.2 	Sec. 78. Minnesota Statutes 2006, section 268.105, subdivision 5, is amended to read:
105.3 		Subd. 5.Use of evidence; data privacy. (a) All testimony at any evidentiary 
105.4 	hearing conducted pursuant tounder subdivision 1 shallmust be recorded. A copy of any 
105.5 	recorded testimony and exhibits offered or received into evidence at the hearing shall
105.6 	must, upon request, be furnished to a party at no cost during the time period for filing a 
105.7 	request for reconsideration or while a request for reconsideration is pending.
105.8 	(b) Regardless of any provision of law to the contrary, if recorded testimony and 
105.9 	exhibits received into evidence at the evidentiary hearing are not requested during the time 
105.10 	period for filing a request for reconsideration, or while a request for reconsideration is 
105.11 	pending, that testimony and other evidence shallmay later be made available only pursuant 
105.12 	tounder a district court order. A subpoena shallis not be considered a district court order.
105.13 	(c) Testimony obtained under subdivision 1, may not be used or considered for any 
105.14 	purpose, including impeachment, in any civil, administrative, or contractual proceeding, 
105.15 	except by a local, state, or federal human rights agency with enforcement powers, unless 
105.16 	the proceeding is initiated by the department.

105.17 	Sec. 79. Minnesota Statutes 2006, section 268.105, subdivision 6, is amended to read:
105.18 		Subd. 6.Representation; fees. (a) In any proceeding under subdivision 1 or 2, an 
105.19 	applicant or involved employer may be represented by any agent.
105.20 	(b) Except for services provided by an attorney-at-law, an applicant shallmay not be 
105.21 	charged fees, costs, or disbursements of any kind in a proceeding before an unemployment 
105.22 	law judge, the Minnesota Court of Appeals, or the Supreme Court of Minnesota.

105.23 	Sec. 80. Minnesota Statutes 2006, section 268.105, subdivision 7, is amended to read:
105.24 		Subd. 7.Judicial review. (a) The Minnesota Court of Appeals shall, by writ of 
105.25 	certiorari to the department, review the unemployment law judge's decision, provided a 
105.26 	petition for the writ is filed with the court and a copy is served upon the unemployment 
105.27 	law judge or the commissioner and any other involved party within 30 calendar days of 
105.28 	the sending of the unemployment law judge's order under subdivision 2.
105.29 	(b) Any employer petitioning for a writ of certiorari shallmust pay to the court the 
105.30 	required filing fee and upon the service of the writ shallmust furnish a cost bond to the 
105.31 	department in accordance with the Rules of Civil Appellate Procedure. If the employer 
105.32 	requests a written transcript of the testimony received at the evidentiary hearing conducted 
106.1 	pursuant tounder subdivision 1, the employer shallmust pay to the department the cost of 
106.2 	preparing the transcript. That money shall beis credited to the administration account.
106.3 	(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a 
106.4 	result of an applicant's petition, the department shallmust furnish to the applicant at no 
106.5 	cost a written transcript of any testimony received at the evidentiary hearing conducted 
106.6 	pursuant tounder subdivision 1, and, if requested, a copy of all exhibits entered into 
106.7 	evidence. No filing fee or cost bond shall beis required of an applicant petitioning the 
106.8 	Minnesota Court of Appeals for a writ of certiorari.
106.9 	(d) The Minnesota Court of Appeals may affirm the decision of the unemployment 
106.10 	law judge or remand the case for further proceedings; or it may reverse or modify the 
106.11 	decision if the substantial rights of the petitioner may have been prejudiced because the 
106.12 	findings, inferences, conclusion, or decision are:
106.13 	(1) in violation of constitutional provisions;
106.14 	(2) in excess of the statutory authority or jurisdiction of the department;
106.15 	(3) made upon unlawful procedure;
106.16 	(4) affected by other error of law;
106.17 	(5) unsupported by substantial evidence in view of the entire record as submitted; or
106.18 	(6) arbitrary or capricious.
106.19 	(e) The department shall beis considered the primary responding party to any 
106.20 	judicial action involving an unemployment law judge's decision. The department may be 
106.21 	represented by an attorney who is an employee of the department.

106.22 	Sec. 81. Minnesota Statutes 2006, section 268.115, is amended to read:
106.23 	268.115 EXTENDED UNEMPLOYMENT BENEFITS.
106.24 		Subdivision 1.Definitions. The terms used in this section shall have the following 
106.25 	meaning:
106.26 	(1) "Extended unemployment benefit period" means a period that lasts for a 
106.27 	minimum of 13 weeks and that:
106.28 	(i) Begins with the third week after there is a state "on" indicator; and
106.29 	(ii) Ends with the third week after there is a state "off" indicator.
106.30 	No extended unemployment benefit period may begin before the 14th week 
106.31 	following the end of a prior extended unemployment benefit period.
106.32 	(2) There is a "state 'on' indicator" for a week if:
106.33 	(i) for that week and the prior 12 weeks, the rate of insured unemployment:
107.1 	(a) equaled or exceeded 120 percent of the average of the rates for the corresponding 
107.2 	13-week period ending in each of the prior two calendar years, and was five percent or 
107.3 	more; or
107.4 	(b) equaled or exceeded six percent; or
107.5 	(ii) The United States Secretary of Labor determines that the average rate of 
107.6 	seasonally adjusted total unemployment in Minnesota for the most recent three months 
107.7 	for which data is published equals or exceeds 6.5 percent and this rate equals or exceeds 
107.8 	110 percent of the rate of the corresponding three-month period in either of the prior 
107.9 	two calendar years.
107.10 	(3) There is a "state 'off' indicator" for a week if:
107.11 	(i) under clause (2)(i), for that week and the prior 12 weeks, the requirements for a 
107.12 	"state 'on' indicator" are not satisfied; or
107.13 	(ii) under clause (2)(ii) the requirements for a "state 'on' indicator" are not satisfied.
107.14 	(4) "Rate of insured unemployment," means the percentage derived by dividing 
107.15 	the average weekly number of applicants filing continued biweekly requests for regular 
107.16 	unemployment benefits in the most recent 13-week period by the average monthly covered 
107.17 	employment for the first four of the last six completed calendar quarters before the end 
107.18 	of that 13-week period.
107.19 	(5) "Regular unemployment benefits" means unemployment benefits available to 
107.20 	an applicant other than extended unemployment benefits and additional unemployment 
107.21 	benefits.
107.22 	(6) "Eligibility period" for an applicant means the period consisting of the weeks 
107.23 	remaining in the applicant's benefit year within the extended unemployment benefit period 
107.24 	and, if the benefit year ends within the extended unemployment benefit period, any weeks 
107.25 	in the extended unemployment benefit period.
107.26 	(7) "Exhaustee" means an applicant who, in the eligibility period:
107.27 	(a) (i) the benefit year having not expired has received the maximum amount of 
107.28 	regular unemployment benefits that were available under section  268.07; or
107.29 	(b) (ii) the benefit year having expired, has insufficient wage credits to establish a 
107.30 	new benefit account; and 
107.31 	(c) has no right to any type of unemployment benefits under the law of any other state 
107.32 	or under federal laws and is not receiving unemployment benefits under the law of Canada.
107.33 		Subd. 3.Requirements for extended unemployment benefits. If an extended 
107.34 	unemployment benefit period is in effect, an applicant shall be is paid extended 
107.35 	unemployment benefits from the trust fund for any week in the applicant's eligibility 
107.36 	period if the applicant:
108.1 	(1) is an "exhaustee";
108.2 	(2) has satisfied the same requirements as those for regular unemployment benefits 
108.3 	under section  268.069; 
108.4 	(3) has wage credits of not less than 40 times the weekly unemployment benefit 
108.5 	amount; and
108.6 	(4) is not subject to a denial of extended unemployment benefits under subdivision 9.
108.7 		Subd. 4.Weekly extended unemployment benefit amount. The weekly extended 
108.8 	unemployment benefit amount shall be is the same as the weekly unemployment benefit 
108.9 	amount of regular unemployment benefits.
108.10 		Subd. 5.Maximum amount of extended unemployment benefits. The maximum 
108.11 	amount of extended unemployment benefits available to an applicant shall be is 50 
108.12 	percent of the maximum amount of regular unemployment benefits available in the benefit 
108.13 	year, rounded down to the next lower whole dollar. If the total rate of unemployment 
108.14 	computed under subdivision 1, clause (2)(ii), equaled or exceeded eight percent, the 
108.15 	maximum amount of extended unemployment benefits available shall be is 80 percent of 
108.16 	the maximum amount of regular unemployment benefits available in the benefit year.
108.17 		Subd. 6.Public announcement. Whenever an extended unemployment benefit 
108.18 	period is to begin as a result of a state "on" indicator, or an extended unemployment 
108.19 	benefit period is to end as a result of a state "off" indicator the commissioner shall make an 
108.20 	appropriate public announcement.
108.21 		Subd. 7.Federal law. This section is enacted to conform to the requirements of 
108.22 	United States Code, title 26, section 3304, the Federal-State Extended Unemployment 
108.23 	Compensation Act of 1970 as amended and the applicable federal regulations.
108.24 		Subd. 8.Interstate applicants. An applicant residing in a state other than 
108.25 	Minnesota shall be eligible for only the first two weeks of extended unemployment 
108.26 	benefits if the applicant's benefit account was established pursuant to under the interstate 
108.27 	benefit payment plan and no extended unemployment benefit period is in effect for the 
108.28 	week in that state.
108.29 		Subd. 9.Denial provisions. (a) An applicant shall be is denied extended 
108.30 	unemployment benefits for any week in the applicant's eligibility period if during that 
108.31 	week the applicant failed to accept any offer of suitable employment, failed to apply 
108.32 	for any suitable employment that the applicant was referred to by the commissioner, or 
108.33 	failed to actively seek suitable employment.
108.34 	The denial shall continue continues until the applicant has been employed in covered 
108.35 	employment in each of four subsequent weeks, whether or not consecutive, and had 
109.1 	earnings from that covered employment of not less than four times the applicant's weekly 
109.2 	unemployment benefit amount.
109.3 	(b) For the purpose of this subdivision "suitable employment" means any 
109.4 	employment that is within the applicant's capabilities and that has a gross average weekly 
109.5 	wage that exceeds the applicant's weekly unemployment benefit amount. The employment 
109.6 	must pay wages not less than the higher of the federal minimum wage without regard to 
109.7 	any exemption, or the applicable state minimum wage.
109.8 	(c) No applicant shall may be denied extended unemployment benefits for failure to 
109.9 	accept an offer of or apply for any suitable employment if:
109.10 	(1) the position was not offered to the applicant in writing;
109.11 	(2) the position was not listed with the job service; or
109.12 	(3) the applicant furnishes satisfactory evidence that prospects for obtaining 
109.13 	employment in the applicant's customary occupation within a reasonably short period 
109.14 	are good. If the evidence is satisfactory, the determination of whether any employment 
109.15 	is suitable shall be is made in accordance with the definition of suitable employment in 
109.16 	section  268.035, subdivision 23a. 
109.17 	(d) For the purpose of this subdivision an applicant is "actively seeking suitable 
109.18 	employment" only if the applicant has engaged in a systematic and sustained effort to 
109.19 	obtain employment, and the applicant furnishes tangible evidence of that effort.
109.20 		Subd. 10.Job service referral. The job service shall must refer any applicant 
109.21 	who is filing continued biweekly requests for extended unemployment benefits to any 
109.22 	employment that is suitable under subdivision 9.

109.23 	Sec. 82. Minnesota Statutes 2006, section 268.125, subdivision 4, is amended to read:
109.24 		Subd. 4.Weekly unemployment benefit amount. An applicant's weekly 
109.25 	additional unemployment benefit amount shall be is the same as the applicant's weekly 
109.26 	unemployment benefit amount during the current benefit year under section  268.07. 

109.27 	Sec. 83. Minnesota Statutes 2006, section 268.125, subdivision 5, is amended to read:
109.28 		Subd. 5.Maximum amount of unemployment benefits. The maximum amount 
109.29 	of additional unemployment benefits available in the applicant's benefit year shall be is
109.30 	one-half of the applicant's maximum amount of regular unemployment benefits available 
109.31 	under section  268.07, subdivision 2, rounded down to the next lower whole dollar. 
109.32 	Extended unemployment benefits paid and unemployment benefits paid under any federal 
109.33 	law other than regular unemployment benefits shall must be deducted from the maximum 
109.34 	amount of additional unemployment benefits available. 

110.1 	Sec. 84. Minnesota Statutes 2006, section 268.135, is amended to read:
110.2 	268.135 SHARED WORK PLAN.
110.3 		Subdivision 1.Definitions. For purposes of this section:
110.4 	(1) "Affected employee" means an employee who was continuously employed as 
110.5 	a member of the affected group, for at least six months, on a full-time basis, prior to
110.6 	before submission of the shared work plan.
110.7 	(2) "Affected group" means five or more employees designated by the employer to 
110.8 	participate in a shared work plan.
110.9 	(3) "Shared work plan" or "plan" means an employer's plan, submitted in a manner 
110.10 	and format prescribed by the commissioner, under which a group of employees whose 
110.11 	normal weekly hours of work are reduced, in order to prevent employees from being 
110.12 	laid off due tobecause of lack of work.
110.13 	(4) "Normal weekly hours of work" means the number of hours in a week that the 
110.14 	employee normally would work for the shared work employer or 40 hours, whichever is 
110.15 	less.
110.16 		Subd. 2.Participation. (a) An employer wishing to participate in the shared work 
110.17 	benefit program shallmust submit a shared work plan to the commissioner in a manner 
110.18 	and format prescribed for approval. The commissioner may approve a shared work plan 
110.19 	only if it:
110.20 	(1) specifies the employees in the affected group;
110.21 	(2) applies to only one affected group;
110.22 	(3) includes a certified statement by the employer that each employee specified in 
110.23 	the affected group is an affected employee;
110.24 	(4) includes a certified statement by the employer that for the duration of the plan 
110.25 	the reduction in normal weekly hours of work of the employees in the affected group is 
110.26 	instead of layoffs that otherwise would result in at least as large a reduction in the total 
110.27 	normal weekly hours of work;
110.28 	(5) specifies an expiration date that is no more than one year from the date the 
110.29 	employer submits the plan for approval;
110.30 	(6) specifies that fringe benefits, such as health and retirement, available to the 
110.31 	employees in the affected group are not reduced beyond the percentage of reduction in 
110.32 	hours of work; and
110.33 	(7) is approved in writing by the collective bargaining agent for each collective 
110.34 	bargaining agreement that covers any employee in the affected group.
110.35 	(b) The commissioner shall set the beginning and ending dates of an approved 
110.36 	shared work plan.
111.1 	(c) The commissioner shall send to the employer a determination, by mail or 
111.2 	electronic transmission, approving or disapproving the plan within 15 calendar days of its 
111.3 	receipt. Determinations are final.
111.4 	(d) Disapproval of a plan may be reconsidered at the discretion of the commissioner. 
111.5 	Approval of a shared work plan may be revoked if the approval was based, in whole or in 
111.6 	part, upon information that was false or misleading.
111.7 		Subd. 3.Eligibility. (a) Regardless of any other provision, an applicant is eligible to 
111.8 	receive shared work benefits with respect to any week if:
111.9 	(1) during the week the applicant is employed as a member of an affected group in a 
111.10 	plan that was approved prior tobefore the week and is in effect for the week; and
111.11 	(2) during the week the normal weekly hours of work were reduced, in accordance 
111.12 	with the plan, at least 20 percent but not more than 40 percent, with a corresponding 
111.13 	reduction in wages.
111.14 	(b) Shared work benefits shallmay not be paid to an applicant beyond one benefit 
111.15 	year.
111.16 	(c) The total amount of regular unemployment benefits and shared work benefits 
111.17 	paid to an applicant in a benefit year shall may  not exceed the maximum amount of regular 
111.18 	unemployment benefits available.
111.19 	(d) An otherwise eligible applicant shall may not be denied shared work benefits 
111.20 	because of the application of any provision relating to availability for employment, active 
111.21 	search for employment, or refusal to apply for or accept suitable employment from other 
111.22 	than the applicant's shared work employer.
111.23 		Subd. 4.Weekly benefit amount. (a) An applicant who is eligible for shared work 
111.24 	benefits shallbe is paid an amount equal to the regular weekly unemployment benefit 
111.25 	amount multiplied by the nearest full percentage of reduction of the applicant's regular 
111.26 	weekly hours of work as set in the plan. The benefit payment, if not a whole dollar shall
111.27 	must be rounded down to the next lower whole dollar.
111.28 	(b) The deductible earnings provisions of section  268.085, subdivision 5, shall
111.29 	must not apply to earnings from the shared work employer of an applicant eligible for 
111.30 	shared work benefits unless the resulting amount would be less than the regular weekly 
111.31 	unemployment benefit amount the applicant would otherwise be eligible for without 
111.32 	regard to shared work benefits. 
111.33 	(c) An applicant shallis not be eligible for shared work benefits for any week that 
111.34 	employment is performed for the shared work employer in excess of the reduced hours 
111.35 	set forth in the plan.

112.1 	Sec. 85. Minnesota Statutes 2006, section 268.145, subdivision 1, is amended to read:
112.2 		Subdivision 1.Notification. (a) Upon filing an application for unemployment 
112.3 	benefits, the applicant shallmust be informed that:
112.4 	(1) unemployment benefits are subject to federal and state income tax;
112.5 	(2) there are requirements for filing estimated tax payments;
112.6 	(3) the applicant may elect to have federal income tax withheld from unemployment 
112.7 	benefits;
112.8 	(4) if the applicant elects to have federal income tax withheld, the applicant may, in 
112.9 	addition, elect to have Minnesota state income tax withheld; and
112.10 	(5) at any time during the benefit year the applicant may change a prior election.
112.11 	(b) If an applicant elects to have federal income tax withheld, the commissioner shall 
112.12 	deduct ten percent for federal income tax, rounded down to the next lower whole dollar. If 
112.13 	an applicant also elects to have Minnesota state income tax withheld, the commissioner 
112.14 	shall make an additional five percent deduction for state income tax, rounded down to 
112.15 	the next lower whole dollar. Any amounts deducted or offset pursuant tounder sections 
112.16 	268.155, 268.18, and 268.184 have priority over any amounts deducted under this section. 
112.17 	Federal income tax withholding has priority over state income tax withholding.
112.18 	(c) An election to have income tax withheld shallmay not be retroactive and shall
112.19 	only applyapplies to unemployment benefits paid after the election.

112.20 	Sec. 86. Minnesota Statutes 2006, section 268.145, subdivision 2, is amended to read:
112.21 		Subd. 2.Transfer of funds. The amount of any unemployment benefits deducted 
112.22 	under this section shall remainremains in the trust fund until transferred to the federal 
112.23 	Internal Revenue Service, or the Department of Revenue, as an income tax payment on 
112.24 	behalf of the applicant.

112.25 	Sec. 87. Minnesota Statutes 2006, section 268.145, subdivision 3, is amended to read:
112.26 		Subd. 3.Correction of errors. Any error that resulted in underwithholding or 
112.27 	overwithholding under this section shallwill not be corrected retroactively.

112.28 	Sec. 88. Minnesota Statutes 2006, section 268.155, is amended to read:
112.29 	268.155 CHILD SUPPORT DEDUCTED FROM UNEMPLOYMENT 
112.30 	BENEFITS.
112.31 		Subdivision 1.Definitions. As used in this section:
112.32 	(1) "Child support obligations" means obligations that are being enforced by a child 
112.33 	support agency pursuant to in accordance with a plan described in United States Code, 
113.1 	title 42, section 454, of the Social Security Act that has been approved by the secretary of 
113.2 	health and human services under part D of title IV of the Social Security Act. This shall
113.3 	does not include any type of spousal maintenance or foster care payments; and
113.4 	(2) "Child support agency" means the public agency responsible for child support 
113.5 	enforcement.
113.6 		Subd. 2.Notice upon application. In an application for unemployment benefits, the 
113.7 	applicant shall must disclose if child support obligations are owed and, if so, in what state 
113.8 	and county. If child support obligations are owed, the commissioner shall, if the applicant 
113.9 	establishes a benefit account, notify the child support agency.
113.10 		Subd. 3.Withholding of unemployment benefits. The commissioner shall deduct 
113.11 	and withhold from any unemployment benefits payable to an applicant who owes child 
113.12 	support obligations:
113.13 	(1) the amount required pursuant to under a proper order of a court or administrative 
113.14 	agency; or
113.15 	(2) if clause (1) is not applicable, the amount determined pursuant to under an 
113.16 	agreement under United States Code, title 42, section 454 (20) (B) (i), of the Social 
113.17 	Security Act; or
113.18 	(3) if clause (1) or (2) is not applicable, the amount specified by the applicant.
113.19 		Subd. 4.Payment. Any amount deducted and withheld shall must be paid to the 
113.20 	child support agency, but shall will for all purposes be treated as if it were paid to the 
113.21 	applicant as unemployment benefits and paid by the applicant to the child support agency 
113.22 	in satisfaction of the applicant's child support obligations.
113.23 		Subd. 5.Payment of costs. The child support agency shall must pay the costs 
113.24 	incurred by the commissioner in the implementation and administration of this section and 
113.25 	sections 518A.50 and 518A.53. 

113.26 	Sec. 89. Minnesota Statutes 2006, section 268.18, subdivision 5, is amended to read:
113.27 		Subd. 5.Remedies. (a) Any method undertaken to recover an overpayment of 
113.28 	unemployment benefits, including any penalties and interest, shall is not be considered an 
113.29 	election of a method of recovery.
113.30 	(b) Intervention or lack thereof, in whole or in part, in a workers' compensation 
113.31 	matter under section  176.361shall is not be considered an election of a remedy and shall
113.32 	does not prevent the commissioner from determining any unemployment benefits overpaid 
113.33 	under subdivision 1 or 2 or taking action under section  268.182. 

113.34 	Sec. 90. Minnesota Statutes 2006, section 268.18, subdivision 6, is amended to read:
114.1 		Subd. 6.Collection of overpayments. (a) The commissioner may not compromise 
114.2 	the amount that has been determined overpaid under this section including penalties 
114.3 	and interest.
114.4 	(b) The commissioner shall havehas discretion regarding the recovery of any 
114.5 	overpayment under subdivision 1. Regardless of any law to the contrary, the commissioner 
114.6 	shallis not be required to refer any amount determined overpaid under subdivision 1 to a 
114.7 	public or private collection agency, including agencies of this state.
114.8 	(c) Amounts determined overpaid under subdivision 1 shallare not be considered 
114.9 	a "debt" to the state of Minnesota for purposes of any reporting requirements to the 
114.10 	commissioner of finance.
114.11 	(d) A pending appeal under section  268.105shalldoes not suspend the assessment 
114.12 	of interest, penalties, or collection of an overpayment under this section. 
114.13 	(e) Section  16A.626 applies to the repayment by an applicant of any overpayment, 
114.14 	penalty, or interest under this section. 

114.15 	Sec. 91. Minnesota Statutes 2006, section 268.182, subdivision 1, is amended to read:
114.16 		Subdivision 1.Criminal penalties. Whoever obtains, or attempts to obtain, or 
114.17 	aids or abets any individual to obtain by means of an intentional false statement or 
114.18 	representation, by intentional concealment of a material fact, or by impersonation or 
114.19 	other fraudulent means, unemployment benefits that the individual is not entitled or 
114.20 	unemployment benefits greater than the individual is entitled under this chapter, or under 
114.21 	the law of any state or of the federal government, either personally or for any other 
114.22 	individual, is guilty of theft and shallmust be sentenced pursuant tounder section  609.52. 

114.23 	Sec. 92. Minnesota Statutes 2006, section 268.186, is amended to read:
114.24 	268.186 RECORDS; AUDITS.
114.25 	(a) Each employer shallmust keep true and accurate records for the periods of time 
114.26 	and containing the information the commissioner may require by rule. For the purpose of 
114.27 	administering this chapter, the commissioner has the power to audit, examine, or cause to 
114.28 	be supplied or copied, any books, correspondence, papers, records, or memoranda that 
114.29 	are relevant, whether the books, correspondence, papers, records, or memoranda are the 
114.30 	property of or in the possession of the employer or any other person at any reasonable 
114.31 	time and as often as may be necessary.
114.32 	(b) Any employer that refuses to allow an audit of its records by the department, 
114.33 	or that fails to make all necessary records available for audit in Minnesota upon request 
114.34 	of the commissioner, may be assessed an administrative penalty of $500. The penalty 
115.1 	collected shall beis credited to the administration account to be used by the commissioner 
115.2 	to ensure integrity in the administration of the unemployment insurance program.
115.3 	(c) The commissioner may make summaries, compilations, photographs, 
115.4 	duplications, or reproductions of any records, or reports that the commissioner considers 
115.5 	advisable for the preservation of the information contained therein. Any summaries, 
115.6 	compilations, photographs, duplications, or reproductions shall beis admissible in 
115.7 	any proceeding under this chapter. The commissioner may duplicate records, reports, 
115.8 	summaries, compilations, instructions, determinations, or any other written or recorded 
115.9 	matter pertaining to the administration of this chapter.
115.10 	(d) Regardless of any law to the contrary, the commissioner may provide for the 
115.11 	destruction of any records, reports, or reproductions thereof, or other papers that are no 
115.12 	longer necessary for the administration of this chapter, including any required audit. In 
115.13 	addition, the commissioner may provide for the destruction or disposition of any record, 
115.14 	report, or other paper from which the information has been electronically captured and 
115.15 	stored, or that has been photographed, duplicated, or reproduced.

115.16 	Sec. 93. Minnesota Statutes 2006, section 268.19, subdivision 1a, is amended to read:
115.17 		Subd. 1a.Wage detail data. (a) Wage and employment data gathered pursuant 
115.18 	to under section  268.044 may be disseminated to and used, without the consent of the 
115.19 	subject of the data, by an agency of another state that is designated as the performance 
115.20 	accountability and consumer information agency for that state pursuant to under Code of 
115.21 	Federal Regulations, volume 20, part 663.510(c), in order to carry out the requirements 
115.22 	of the Workforce Investment Act of 1998, United States Code, title 29, sections 2842 
115.23 	and 2871. 
115.24 	(b) The commissioner may enter into a data exchange agreement with an employment 
115.25 	and training service provider under section  116L.17, or the Workforce Investment Act 
115.26 	of 1998, United States Code, title 29, section 2864, under which the commissioner, with 
115.27 	the consent of the subject of the data, may furnish data on the quarterly wages paid and 
115.28 	number of hours worked on those individuals who have received employment and training 
115.29 	services from the provider. With the initial consent of the subject of the data, this data may 
115.30 	be shared for up to three years after termination of the employment and training services 
115.31 	provided to the individual without execution of an additional consent. This data shall be
115.32 	is furnished solely for the purpose of evaluating the employment and training services 
115.33 	provided. The data subject's ability to receive service is not affected by a refusal to give 
115.34 	consent under this paragraph. The consent form must state this fact. 

116.1 	Sec. 94. Minnesota Statutes 2006, section 268.19, subdivision 2, is amended to read:
116.2 		Subd. 2.Employer information; absolute privilege. (a) Regardless of any 
116.3 	provision of law to the contrary, an employer may provide the commissioner with 
116.4 	information on an applicant so that the commissioner can determine an applicant's 
116.5 	entitlement to unemployment benefits under the Minnesota Unemployment Insurance Law.
116.6 	(b) The commissioner may disseminate an employer's name and address and the 
116.7 	name and address of any employer's unemployment insurance processing agent in order to 
116.8 	administer the Minnesota unemployment insurance program.
116.9 	(c) Information obtained pursuant to under the Minnesota Unemployment Insurance 
116.10 	Law, in order to determine an applicant's entitlement to unemployment benefits, shall be
116.11 	are absolutely privileged and shall may not be made the subject matter or the basis for any 
116.12 	civil proceeding, administrative, or judicial.

116.13 	Sec. 95. Minnesota Statutes 2006, section 268.192, is amended to read:
116.14 	268.192 PROTECTION OF RIGHTS.
116.15 		Subdivision 1.Waiver of rights void. Any agreement by an individual to waive, 
116.16 	release, or commute rights to unemployment benefits or any other rights under the 
116.17 	Minnesota Unemployment Insurance Law shall be is void. Any agreement by an employee 
116.18 	to pay all or any portion of an employer's taxes, shall be is void. No employer shall may
116.19 	directly or indirectly make or require or accept any deduction from wages to pay the 
116.20 	employer's taxes, require or accept any waiver of any right or in any manner obstruct or 
116.21 	impede an application or continued biweekly request for unemployment benefits. Any 
116.22 	employer or officer or agent of any employer who violates any portion of this subdivision 
116.23 	shall is, for each offense, be guilty of a misdemeanor.
116.24 		Subd. 2.No assignment of unemployment benefits; exemptions. Any assignment, 
116.25 	pledge, or encumbrance of unemployment benefits shall be is void. Unemployment 
116.26 	benefits shall be are exempt from levy, execution, attachment, or any other remedy 
116.27 	provided for the collection of debt. Any waiver of this subdivision shall be is void.

116.28 	Sec. 96. Minnesota Statutes 2006, section 268.194, subdivision 4, is amended to read:
116.29 		Subd. 4.Reimbursements. The commissioner is authorized to make to other state 
116.30 	or federal agencies and to receive from other state or federal agencies, reimbursements 
116.31 	from or to the trust fund, in accordance with reciprocal arrangements entered into pursuant 
116.32 	tounder section  268.131. 
116.33 	Money received pursuant tounder a reciprocal agreement shallmust be placed 
116.34 	directly in the unemployment benefit payment account of the trust fund.

117.1 	Sec. 97. Minnesota Statutes 2006, section 268.194, subdivision 5, is amended to read:
117.2 		Subd. 5.Reed Act money. (a) Money credited to the account of Minnesota in the 
117.3 	federal unemployment trust fund pursuant tounder United States Code, title 42, section 
117.4 	1103, of the Social Security Act, also known as the Reed Act, may be requisitioned and 
117.5 	used for (1) the payment of unemployment benefits, or (2) expenses incurred for the 
117.6 	administration of the Minnesota unemployment insurance program pursuantaccording 
117.7 	to a specific appropriation by the legislature. Any money used for the payment of 
117.8 	unemployment benefits may be restored for appropriation and use for administrative 
117.9 	expenses upon request of the governor to the United States Secretary of Labor.
117.10 	(b) Reed Act money may be used for expenses in the administration of the Minnesota 
117.11 	unemployment insurance program provided that the expenses are incurred and the money 
117.12 	is requisitioned after the enactment of an appropriation law that:
117.13 	(1) specifies the amounts and the purposes for which the money is appropriated;
117.14 	(2) limits the period within which the money may be obligated to a period ending 
117.15 	not more than two years after the date of the enactment of the appropriation law; and
117.16 	(3) limits the amount that may be obligated to an amount that does not exceed the 
117.17 	amount by which the aggregate of the amounts transferred to the account of Minnesota 
117.18 	pursuant tounder the Reed Act exceeds the aggregate of the amounts used pursuant to
117.19 	under this subdivision and charged against the amounts transferred to the account of 
117.20 	Minnesota. For the purposes of this subdivision, amounts used for administration shall be
117.21 	are chargeable against the transferred amounts at the time of the obligation.
117.22 	(c) Reed Act money requisitioned for the payment of expenses of administration 
117.23 	shall remain a part of the unemployment insurance trust fund. The commissioner shall 
117.24 	account for the use of this money in accordance with the standards established by the 
117.25 	United States Secretary of Labor. If any money is not spent for the purpose for which it 
117.26 	was appropriated, or, if it remains unspent at the end of the period specified by the law 
117.27 	appropriating the money, it shallmust be returned for credit to Minnesota's account in the 
117.28 	federal unemployment trust fund.

117.29 	Sec. 98. Minnesota Statutes 2006, section 268.194, subdivision 6, is amended to read:
117.30 		Subd. 6.Borrowing federal funds. (a) The governor is hereby authorized, if 
117.31 	necessary, to borrow funds from the federal unemployment trust fund in accordance 
117.32 	with United States Code, title 42, section 1321 of the Social Security Act in order to pay 
117.33 	unemployment benefits.
118.1 	(b) Any amount transferred to the trust fund under the terms of any loan shallmust 
118.2 	be repayable as provided in United States Code, title 42, sections 1101(d)(1), 1103(b)(2), 
118.3 	and 1322 of the Social Security Act.
118.4 	(c) Interest payable on any loan shall beis paid in accordance with section  268.051, 
118.5 	subdivision 8, paragraph (b). 

118.6 	Sec. 99. Minnesota Statutes 2006, section 268.20, is amended to read:
118.7 	268.20 REPRESENTATION IN COURT.
118.8 	In any civil action to enforce the provisions of the Minnesota Unemployment 
118.9 	Insurance Law, the commissioner shall may be represented by the attorney general.

118.10 	Sec. 100. Minnesota Statutes 2006, section 268.21, is amended to read:
118.11 	268.21 NONLIABILITY OF STATE.
118.12 	(a) Unemployment benefits shall be are payable only to the extent provided in this 
118.13 	chapter and to the extent that money is available in the trust fund and neither the state nor 
118.14 	the commissioner shall be is liable for any amount in excess of the money available in 
118.15 	the trust fund.
118.16 	(b) No person shall may make any demand, bring any suit, or other proceeding to 
118.17 	recover from the state or the commissioner any sum alleged to be due on a benefit account 
118.18 	after the expiration of two years from the effective date of the benefit account.

118.19 	Sec. 101. Minnesota Statutes 2006, section 268.22, is amended to read:
118.20 	268.22 SAVING CLAUSE.
118.21 	The legislature reserves the right to amend or repeal all or any part of the Minnesota 
118.22 	Unemployment Insurance Law at any time; and there shall be is no vested private right 
118.23 	of any kind against such amendment or repeal. All the rights, privileges, or immunities 
118.24 	conferred thereby, or by acts done pursuant thereto, shall exist subject to the power of the 
118.25 	legislature to amend or repeal these sections at any time.

118.26 	Sec. 102. Minnesota Statutes 2006, section 268.23, is amended to read:
118.27 	268.23 SEVERABLE.
118.28 	In the event that the United States Department of Labor determines that any 
118.29 	provision of the Minnesota Unemployment Insurance Law, or any other provision of 
118.30 	Minnesota Statutes relating to the unemployment insurance program, is not in conformity 
118.31 	with the requirements of federal law, the provision shall have has no force or effect; but if 
119.1 	only a portion of the provision, or the application to any person or circumstances, is held 
119.2 	not in conformity, the remainder of the provision and the application of the provision to 
119.3 	other persons or circumstances shall are not be affected.

119.4 	Sec. 103. EFFECTIVE DATE.
 119.5 	Sections 1 to 102 are effective September 30, 2007.