as introduced - 83rd Legislature, 2003 1st Special Session (2003 - 2003) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to unemployment insurance; modifying 1.3 provisions to increase the solvency of the trust fund; 1.4 making policy and technical changes; amending 1.5 Minnesota Statutes 2002, sections 268.035, 1.6 subdivisions 15, 23; 268.044, subdivision 1, by adding 1.7 a subdivision; 268.051, subdivisions 1, 2, 3, 5, 6, by 1.8 adding a subdivision; 268.052, subdivision 1; 268.057, 1.9 subdivision 5; 268.067; 268.07, subdivision 2; 1.10 268.085, subdivision 3; 268.086, subdivision 2; 1.11 268.095, subdivisions 1, 2, 6, 11; 268.105, 1.12 subdivision 7; 268.18, subdivisions 1, 4; proposing 1.13 coding for new law in Minnesota Statutes, chapter 268; 1.14 repealing Minnesota Rules, part 3315.1015, subpart 4. 1.15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.16 ARTICLE 1 1.17 SOLVENCY 1.18 Section 1. Minnesota Statutes 2002, section 268.051, 1.19 subdivision 1, is amended to read: 1.20 Subdivision 1. [PAYMENTS.] (a) Taxes and any additional 1.21 assessments, fees, or surcharges shall accrue and become payable 1.22 by each employer for each calendar year that the employer paid 1.23 wages to employees in covered employment, except for: 1.24 (1) nonprofit organizations that elect to make
payments in1.25 lieu of taxesreimbursements as provided in section 268.053; and 1.26 (2) the state of Minnesota and political subdivisions that 1.27 make reimbursements, unless they elect to pay taxes as provided 1.28 in section 268.052. 1.29 Each employer shall pay taxes quarterly, at the employer's 1.30 assigned tax rate, on the taxable wages paid to each employee. 2.1 The taxes and any additional assessments, fees, or surcharges 2.2 shall be paid to the trust fund on or before the last day of the 2.3 month following the end of the calendar quarter. 2.4 (b) The taxtotal payment due may be paid in an amount to 2.5 the nearest whole dollar. 2.6 (c) When the taxtotal payment due for any calendar quarter 2.7 is less than $1, the taxit shall be disregarded. 2.8 [EFFECTIVE DATE.] This section is effective the day 2.9 following final enactment. 2.10 Sec. 2. Minnesota Statutes 2002, section 268.051, 2.11 subdivision 2, is amended to read: 2.12 Subd. 2. [COMPUTATION OF TAX RATES; ADDITIONAL 2.13 ASSESSMENTS.] (a) For each calendar year the commissioner shall 2.14 compute the tax rate of each taxpaying employer that qualifies 2.15 for an experience rating by adding the base tax rate to the 2.16 employer's experience rating. 2.17 (b) The base tax rate shall be six-tenths of one percent if2.18 the amount in the fund is less than $200,000,000 on June 30 of2.19 the prior calendar year; or five-tenths of one percent if the2.20 fund is more than $200,000,000 but less than $225,000,000; or2.21 four-tenths of one percent if the fund is more than $225,000,0002.22 but less than $250,000,000; or three-tenths of one percent if2.23 the fund is more than $250,000,000 but less than $275,000,000;2.24 or two-tenths of one percent if the fund is $275,000,000 but2.25 less than $300,000,000; or one-tenth of one percent if the fund2.26 is $300,000,000 or more.2.27 (b) The base tax rate for the calendar year and any 2.28 additional assessments under this subdivision shall be 2.29 determined based upon the amount in the trust fund on March 31 2.30 of the prior year as a percentage of total wages paid in covered 2.31 employment. The base tax rate shall be: 2.32 (1) one-tenth of one percent if the trust fund is equal to 2.33 or more than 0.75 percent; 2.34 (2) two-tenths of one percent if the trust fund is less 2.35 than 0.75 percent but equal to or more than 0.65 percent; 2.36 (3) three-tenths of one percent if the trust fund is less 3.1 than 0.65 percent but equal to or more than 0.55 percent; or 3.2 (4) four-tenths of one percent if the trust fund is less 3.3 than 0.55 percent. 3.4 (c) There shall be a "falling fund adjustment" to the base 3.5 tax rate for the calendar year if the amount in the trust fund 3.6 on March 31 of the prior year is less than 0.75 percent of total 3.7 wages paid in covered employment and: 3.8 (1) the amount in the trust fund on March 31 of the prior 3.9 year is ten percent or more below the amount in the trust fund 3.10 on March 31 of the year prior to that; or 3.11 (2) the amount in the trust fund on March 31 of the prior 3.12 year is greater than the amount in the trust fund on June 30 of 3.13 that same year. 3.14 If a "falling fund adjustment" is applicable, then the base tax 3.15 rate shall be 0.1 percent greater than otherwise provided for 3.16 under paragraph (b). 3.17 (d) In addition to the base tax rate under paragraph (b), 3.18 there shall be an additional assessment for the calendar year on 3.19 all quarterly unemployment taxes due from every taxpaying 3.20 employer if the amount in the trust fund on March 31 of the 3.21 prior year is less than .55 percent of total wages paid in 3.22 covered employment. The assessment shall be as follows: 3.23 (1) a five percent assessment if the trust fund is less 3.24 than 0.55 percent but equal to or more than 0.45 percent; 3.25 (2) a ten percent assessment if the trust fund is less than 3.26 0.45 percent but equal to or more than 0.35 percent; or 3.27 (3) a 14 percent assessment if the trust fund is less than 3.28 0.35 percent. 3.29 (c)(e) For the purposes of this subdivision the trust fund 3.30 shall not include any money borrowed from the federal 3.31 unemployment trust fund pursuant to section 268.194, subdivision 3.32 6. 3.33 (f) For the purposes of this subdivision, total wages paid 3.34 in covered employment shall be those wages paid to all employees 3.35 in covered employment during the calendar year prior to the 3.36 March 31 date used in paragraph (b). 4.1 (g) The commissioner may compute any assessment under this 4.2 subdivision, and any assessment under subdivision 8, as a 4.3 percentage of the employer's experience rating and the base tax 4.4 rate, rounded to the nearest hundredth of a percent. 4.5 On tax rate notices sent under subdivision 6, any 4.6 assessments under this subdivision may be combined with any 4.7 special assessments for interest on federal loans provided for 4.8 in subdivision 8 into a single combined assessment. 4.9 [EFFECTIVE DATE.] Paragraph (c) is effective January 1, 4.10 2005. The remainder of this section is effective the day 4.11 following final enactment. 4.12 Sec. 3. Minnesota Statutes 2002, section 268.051, 4.13 subdivision 3, is amended to read: 4.14 Subd. 3. [COMPUTATION OF A TAXPAYING EMPLOYER'S EXPERIENCE 4.15 RATING.] (a) For each calendar year, the commissioner shall 4.16 compute an experience rating for each taxpaying employer who has 4.17 been subject to this chapterpaying unemployment taxes for at 4.18 least the 12 calendar months prior to July 1 of the prior 4.19 calendar year. 4.20 (b) The experience rating shall be the ratio obtained by 4.21 dividing 125 percent of the total unemployment benefits required 4.22 under section 268.047 to be used in computing the employer's tax 4.23 rate during the 6048 calendar months ending on June 30 of the 4.24 prior calendar year, by the employer's total taxable payroll for 4.25 that same period. 4.26 (c) For purposes of paragraph (b), only that taxable 4.27 payroll upon which taxes have been paid on or before September 4.28 30 of the prior calendar year may be used in computing an 4.29 employer's experience rating. 4.30 (d) The experience rating shall be computed to the nearest 4.31 one-tenth of a percent, to a maximum of 8.9 percent. 4.32 [EFFECTIVE DATE.] This section is effective the day 4.33 following final enactment. 4.34 Sec. 4. Minnesota Statutes 2002, section 268.051, 4.35 subdivision 5, is amended to read: 4.36 Subd. 5. [TAX RATE FOR NEW EMPLOYERS.] (a) Each new 5.1 taxpaying employer that does not qualify for an experience 5.2 rating under subdivision 3, paragraph (a),except new employers 5.3 in a high experience rating industry, shall be assigned, for a 5.4 calendar year, a tax rate the higher of (1) one percent, or (2) 5.5 the state's average cost rate. For purposes of this paragraph,5.6 the state's average costtax rate shall becomputed annuallyby 5.7 dividing the total amount of unemployment benefits paid all 5.8 applicants during the 6048 calendar months prior to July 1 of5.9 eachending on June 30 of the prior calendar year by the total 5.10 taxable wages of all taxpaying employers during the same period, 5.11 plus the applicable base tax rate. This rate for new employers5.12 shall be applicable for the calendar year following the5.13 computation date.5.14 (b) Each new taxpaying employer in a high experience rating 5.15 industry that does not qualify for an experience rating under 5.16 subdivision 3, paragraph (a),shall be assigned, for a calendar 5.17 year, a tax rate of 8.0 percent, plus the applicable base tax 5.18 rate. 5.19 An employer is considered to be in a high experience rating 5.20 industry if: 5.21 (1) the employer is engaged in residential, commercial, or 5.22 industrial construction, including general contractors; 5.23 (2) the employer is engaged in sand, gravel, or limestone 5.24 mining; 5.25 (3) the employer is engaged in the manufacturing of 5.26 concrete, concrete products, or asphalt; or 5.27 (4) the employer is engaged in road building, repair, or 5.28 resurfacing, including bridge and tunnels and residential and 5.29 commercial driveways and parking lots. 5.30 [EFFECTIVE DATE.] This section is effective the day 5.31 following final enactment. 5.32 Sec. 5. Minnesota Statutes 2002, section 268.051, 5.33 subdivision 6, is amended to read: 5.34 Subd. 6. [NOTICE OF TAX RATE.] (a) The commissioner shall 5.35 notify each employer by mail or electronic transmission of the 5.36 employer's tax rate, along with any additional assessments, 6.1 fees, or surcharges, as determined for any calendar year. The 6.2 notice shall contain the tax rate and the factors used in 6.3 determining the employer's experience rating. Unless a protest 6.4 of the rate is made, the assigned rate shall be final except for 6.5 fraud and shall be the rate at which taxes shall be paid. The 6.6 tax rate shall not be subject to collateral attack by way of 6.7 claim for a credit adjustment or refund, or otherwise. 6.8 (b) If the legislature, subsequent to the sending of the 6.9 tax rate, changes any of the factors used to determine the rate, 6.10 the earlier notice shall be void. A new tax rate based on the 6.11 new factors shall be computed and sent to the employer. 6.12 (c) A review of an employer's tax rate may be obtained by 6.13 the employer filing, in a manner prescribed by the commissioner, 6.14 a protest within 30 calendar days from the date the tax rate 6.15 notice was sent to the employer. Upon receipt of the protest, 6.16 the commissioner shall review the tax rate to determine whether 6.17 or not there has been any clerical error or error in 6.18 computation. The commissioner shall either affirm or make a 6.19 redetermination of the rate and a notice of the affirmation or 6.20 redetermination shall be sent to the employer by mail or 6.21 electronic transmission. The affirmation or redetermination 6.22 shall be final unless the employer files an appeal within 30 6.23 calendar days after the date the affirmation or redetermination 6.24 was sent. Proceedings on the appeal shall be conducted in 6.25 accordance with section 268.105. 6.26 (d) The commissioner may at any time upon the 6.27 commissioner's own motion correct any error in the computation 6.28 or the assignment of an employer's tax rate. 6.29 [EFFECTIVE DATE.] This section is effective the day 6.30 following final enactment. 6.31 Sec. 6. Minnesota Statutes 2002, section 268.051, is 6.32 amended by adding a subdivision to read: 6.33 Subd. 9. [ASSESSMENTS, FEES, AND SURCHARGES; 6.34 TREATMENT.] Any assessment, fee, or surcharge imposed under the 6.35 Minnesota Unemployment Insurance Law shall be treated the same 6.36 as, and considered as, a tax. Any assessment, fee, or surcharge 7.1 shall be subject to the same collection procedures that apply to 7.2 past due taxes. 7.3 [EFFECTIVE DATE.] This section is effective the day 7.4 following final enactment. 7.5 Sec. 7. Minnesota Statutes 2002, section 268.07, 7.6 subdivision 2, is amended to read: 7.7 Subd. 2. [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY 7.8 UNEMPLOYMENT BENEFIT AMOUNT AND MAXIMUM AMOUNT OF UNEMPLOYMENT 7.9 BENEFITS.] (a) To establish a benefit account, an applicant must 7.10 have: 7.11 (1) high quarter wage credits of at least $1,000; and 7.12 (2) wage credits, in other than the high quarter, of at 7.13 least $250. 7.14 (b) If an applicant has established a benefit account, the 7.15 weekly unemployment benefit amount available during the benefit 7.16 year shall be the higher of: 7.17 (1) 50 percent of the applicant's average weekly wage 7.18 during the base period, to a maximum of 66-2/3 percent of the 7.19 state's average weekly wage; or 7.20 (2) 50 percent of the applicant's average weekly wage 7.21 during the high quarter, to a maximum of 5045 percent of the 7.22 state's average weekly wage. 7.23 The applicant's average weekly wage under clause (1) shall 7.24 be computed by dividing the total wage credits by 52. The 7.25 applicant's average weekly wage under clause (2) shall be 7.26 computed by dividing the high quarter wage credits by 13. 7.27 (c) The state's maximum weekly unemployment benefit amount 7.28 and the applicant's weekly unemployment benefit amount and 7.29 maximum amount of unemployment benefits shall be rounded down to 7.30 the next lowest whole dollar. 7.31 (d) The maximum amount of unemployment benefits available 7.32 on any benefit account shall be the lower of: 7.33 (1) 33-1/3 percent of the applicant's total wage credits; 7.34 or 7.35 (2) 26 times the applicant's weekly unemployment benefit 7.36 amount. 8.1 [EFFECTIVE DATE.] This section is effective the day 8.2 following final enactment. 8.3 Sec. 8. Minnesota Statutes 2002, section 268.085, 8.4 subdivision 3, is amended to read: 8.5 Subd. 3. [ DEDUCTIBLEPAYMENTS THAT DELAY UNEMPLOYMENT 8.6 BENEFITS.] (a) An applicant shall not be eligible to receive 8.7 unemployment benefits for any week with respect to which the 8.8 applicant is receiving, has received, or has filed for 8.9 payment in an amount equal to or in excess of the applicant's8.10 weekly unemployment benefit amountin the form of: 8.11 (1) severance pay, bonus pay, vacation pay, sick pay, and 8.12 any other money payments, except earnings under subdivision 5, 8.13 and back pay under subdivision 6, paid by an employer because 8.14 of, upon, or after separation from employment that are, but only 8.15 if the money payment is considered wages at the time of payment 8.16 under section 268.035, subdivision 29, or United States Code, 8.17 title 26, section 3121, clause (2) of the Federal Insurance 8.18 Contribution Act. This clause shall apply to all the first four8.19 weeks of payment and to one-half of the total number of any8.20 additional weeks of payment. This clauseand shall be applied 8.21 to the period immediately following the last day of employment. 8.22 The number of weeks of payment shall be determined as follows: 8.23 (i) if the payments are made periodically, the total of the 8.24 payments to be received shall be divided by the applicant's last 8.25 level of regular weekly pay from the employer; or 8.26 (ii) if the payment is made in a lump sum, that sum shall 8.27 be divided by the applicant's last level of regular weekly pay 8.28 from the employer. This clause shall not apply to vacation pay 8.29 paid by an employer upon permanent separation from employment; 8.30 (2) pension, retirement, or annuity payments from any plan 8.31 contributed to by a base period employer including the United 8.32 States government, except social security benefits which are 8.33 provided for in subdivision 4. The base period employer 8.34 contributed to the plan if the contribution is excluded from the 8.35 definition of wages under section 268.035, subdivision 29, 8.36 clause (1), or United States Code, title 26, section 3121, 9.1 clause (2), of the Federal Insurance Contribution Act. 9.2 If the applicant receives a lump sum pension payment, that 9.3 sum shall be divided by the applicant's last level of regular 9.4 weekly pay to determine the number of weeks of payment. The 9.5 number of weeks of payment shall be applied to the period 9.6 immediately following the last day of employment. An applicant 9.7 shall not be considered to have received the lump sum payment if 9.8 the applicant immediately deposits that payment in a qualified 9.9 pension plan or account; or 9.10 (3) holiday pay. 9.11 (b) If the deductiblepayment is less than the applicant's 9.12 weekly unemployment benefit amount, unemployment benefits shall 9.13 be reduced by the amount of the payment. If the computation of 9.14 reduced unemployment benefits is not a whole dollar, it shall be 9.15 rounded down to the next lowest dollar. 9.16 [EFFECTIVE DATE.] This section is effective for benefit 9.17 accounts established August 3, 2003, and thereafter. 9.18 Sec. 9. [MAXIMUM BENEFIT AMOUNT.] 9.19 Notwithstanding Minnesota Statutes, section 268.07, 9.20 subdivision 2, paragraph (b), clause (2), the maximum amount of 9.21 weekly unemployment benefits available based upon the high 9.22 quarter calculation shall not be less than $350. 9.23 [EFFECTIVE DATE.] This section is effective the day 9.24 following enactment and sunsets September 1, 2006. 9.25 ARTICLE 2 9.26 POLICY AND TECHNICAL CHANGES 9.27 Section 1. Minnesota Statutes 2002, section 268.035, 9.28 subdivision 15, is amended to read: 9.29 Subd. 15. [EMPLOYMENT.] "Employment" means service 9.30 performed by: 9.31 (1) an individual who is considered an employee under the 9.32 common law of employer-employee and not considered an 9.33 independent contractor; 9.34 (2) an officer of a corporation; 9.35 (3) a member of a limited liability company who has less 9.36 than a 25 percent ownership share and is considered an employee 10.1 under the common law of employer-employee; or 10.2 (4) an individual who performs services for a person for 10.3 compensation, as: 10.4 (i) an agent-driver or commission-driver engaged in 10.5 distributing meat products, vegetable products, fruit products, 10.6 beverages, or laundry or dry cleaning services; or 10.7 (ii) a traveling or city salesperson, other than as an 10.8 agent-driver or commission-driver, engaged full-time in the 10.9 solicitation on behalf of the person, of orders from 10.10 wholesalers, retailers, contractors, or operators of hotels, 10.11 restaurants, or other similar establishments for merchandise for 10.12 resale or supplies for use in their business operations. 10.13 This clause shall apply only if the contract of service 10.14 provides that substantially all of the services are to be 10.15 performed personally by the individual, and the services are 10.16 part of a continuing relationship with the person for whom the 10.17 services are performed, and the individual does not have a 10.18 substantial investment in facilities used in connection with the 10.19 performance of the services, other than facilities for 10.20 transportation. 10.21 Sec. 2. Minnesota Statutes 2002, section 268.035, 10.22 subdivision 23, is amended to read: 10.23 Subd. 23. [STATE'S AVERAGE ANNUAL AND AVERAGE WEEKLY 10.24 WAGE.] (a) On or before June 30 of each year, the commissioner 10.25 shall calculate the state's average annual wage and the state's 10.26 average weekly wage in the following manner: 10.27 (1) The sum of the total monthly covered employment 10.28 reported by all employers for the prior calendar year shall be 10.29 divided by 12 to calculate the average monthly covered 10.30 employment. 10.31 (2) The sum of the total wages paid for all covered 10.32 employment reported by all employers for the prior calendar year 10.33 shall be divided by the average monthly covered employment to 10.34 calculate the state's average annual wage. 10.35 (3) The state's average annual wage shall be divided by 52 10.36 to calculate the state's average weekly wage. 11.1 (b) For purposes of calculating the amount of taxable 11.2 wages, the state's average annual wage shall apply to the 11.3 calendar year following the calculation. 11.4 (c) For purposes of calculating the state's maximum weekly 11.5 unemployment benefit amount payableavailable on any benefit 11.6 account under section 268.07, subdivision 2, the state's average 11.7 weekly wage shall apply to the 12-monthone-year period 11.8 beginning the first Sunday in August 1of the calendar year of 11.9 the calculation. 11.10 [EFFECTIVE DATE.] This section is effective the day 11.11 following final enactment. 11.12 Sec. 3. Minnesota Statutes 2002, section 268.044, 11.13 subdivision 1, is amended to read: 11.14 Subdivision 1. [WAGE DETAIL REPORT.] (a) Each employer 11.15 that has employees in covered employment shall provide the11.16 commissioner withfile a quarterly wage detail report, in a 11.17 manner and format prescribed by the commissioner. The report 11.18 shall include for each employee in covered employment, the 11.19 employee's name, social security number, the total wages paid to 11.20 the employee, and total number of paid hours worked. For 11.21 employees exempt from the definition of employee in section 11.22 177.23, subdivision 7, clause (6), the employer shall report 40 11.23 hours worked for each week any duties were performed by a 11.24 full-time employee and shall report a reasonable estimate of the 11.25 hours worked for each week duties were performed by a part-time 11.26 employee. If the information required is not filed in a manner 11.27 and format prescribed by the commissioner, it shall not be 11.28 considered a wage detail report. The report is due and must be 11.29 filed on or before the last day of the month following the end 11.30 of the calendar quarter. 11.31 (b) The employer may report the wages paid to the nearest 11.32 whole dollar amount. 11.33 (c) An employer need not include the name of the employee 11.34 or other required information on the wage detail report if 11.35 disclosure is specifically exempted by federal law. 11.36 Sec. 4. Minnesota Statutes 2002, section 268.044, is 12.1 amended by adding a subdivision to read: 12.2 Subd. 1a. [ELECTRONIC TRANSMISSION OF REPORT 12.3 REQUIRED.] Each employer that has 50 or more employees to report 12.4 for a calendar quarter under subdivision 1 must file the 12.5 quarterly wage detail report by electronic transmission in a 12.6 format prescribed by the commissioner. The commissioner shall 12.7 have the discretion to accept wage detail reports by magnetic 12.8 media, in a format prescribed by the commissioner. Wage detail 12.9 reports from an employer with 50 or more employees to report for 12.10 a calendar quarter that are filed by any other means may be 12.11 returned to the employer, and reports returned shall be 12.12 considered as not filed and the penalties under subdivision 2 12.13 may be imposed. 12.14 Sec. 5. Minnesota Statutes 2002, section 268.052, 12.15 subdivision 1, is amended to read: 12.16 Subdivision 1. [PAYMENTS.] In lieu of taxes payable on a 12.17 quarterly basis, the state of Minnesota or its political 12.18 subdivisions shall pay intoreimburse the trust fund the amount 12.19 of unemployment benefits charged to its reimbursable account 12.20 under section 268.047. PaymentsReimbursements in the amount of 12.21 unemployment benefits charged to the reimbursable account during 12.22 a calendar quarter shall be made on or before the last day of 12.23 the month following the month that the notice of unemployment 12.24 benefits paid is sent pursuant to section 268.047, subdivision 12.25 5. Past due payments in lieu of taxesreimbursements shall be 12.26 subject to the same interest charges and collection procedures 12.27 that apply to past due taxes. 12.28 Sec. 6. Minnesota Statutes 2002, section 268.057, 12.29 subdivision 5, is amended to read: 12.30 Subd. 5. [INTEREST ON PAST DUE TAXES.] If any taxes or12.31 payments in lieu of taxes to the fund, reimbursements, fees, 12.32 assessments, surcharges, or any penalties under section 268.184, 12.33 are not paid on the date due the unpaid balance shall bear 12.34 interest at the rate of one and one-half percent per month or 12.35 any part thereof. Taxes orAny payments in lieu of taxes12.36 received by mail postmarked on a day following the date due 13.1 shall be considered to have been paid on the due date if there 13.2 is substantial evidence that the payment was actually deposited 13.3 in the United States mail properly addressed to the department 13.4 with postage prepaid thereon on or before the due date. 13.5 Interest collected shall be credited to the contingent account. 13.6 Interest may be waived by rules adopted by the13.7 commissionerunder section 268.067. 13.8 [EFFECTIVE DATE.] This section is effective the day 13.9 following final enactment. 13.10 Sec. 7. Minnesota Statutes 2002, section 268.067, is 13.11 amended to read: 13.12 268.067 [COMPROMISE.] 13.13 (a) The commissioner may compromise in whole or in part any 13.14 action, determination, or decision that affects only an employer 13.15 and not an applicant, and that has occurred during the prior 24 13.16 months. This paragraph may apply if it is determined by a court 13.17 of law, or a confession of judgment, that an applicant, while 13.18 employed, wrongfully took from the employer $500 or more, in 13.19 money or property. 13.20 (b) The commissioner may at any time compromise delinquent 13.21 employer taxes, payments in lieu of taxesreimbursements, 13.22 interest, penalties, and costs. 13.23 (c) Any compromise shall be by written order signed by an 13.24 attorney who is a classified employee of the department 13.25 designated by the commissioner for that purpose. 13.26 (d) Any compromise order must set out all the terms and the 13.27 reason for the order and must be in the best interest of the 13.28 state of Minnesota. 13.29 Sec. 8. Minnesota Statutes 2002, section 268.07, 13.30 subdivision 2, is amended to read: 13.31 Subd. 2. [BENEFIT ACCOUNT REQUIREMENTS AND WEEKLY 13.32 UNEMPLOYMENT BENEFIT AMOUNT AND MAXIMUM AMOUNT OF UNEMPLOYMENT 13.33 BENEFITS.] (a) To establish a benefit account, an applicant must 13.34 have: 13.35 (1) high quarter wage credits of at least $1,000; and 13.36 (2) wage credits, in other than the high quarter, of at 14.1 least $250. 14.2 (b) If an applicant has established a benefit account, the 14.3 weekly unemployment benefit amount available during the benefit 14.4 year shall be the higher of: 14.5 (1) 50 percent of the applicant's average weekly wage 14.6 during the base period, to a maximum of 66-2/3 percent of the 14.7 state's average weekly wage; or 14.8 (2) 50 percent of the applicant's average weekly wage 14.9 during the high quarter, to a maximum of 50 percent of the 14.10 state's average weekly wage. 14.11 The applicant's average weekly wage under clause (1) shall 14.12 be computed by dividing the total wage credits by 52. The 14.13 applicant's average weekly wage under clause (2) shall be 14.14 computed by dividing the high quarter wage credits by 13. 14.15 (c) The state's maximum weekly unemployment benefit amount 14.16 and thean applicant's weekly unemployment benefit amount and 14.17 maximum amount of unemployment benefits available shall be 14.18 rounded down to the next lowest whole dollar. The state's 14.19 maximum weekly benefit amount, computed in accordance with 14.20 section 268.035, subdivision 23, shall apply to a benefit 14.21 account established effective on or after the first Sunday in 14.22 August. Once established, an applicant's weekly unemployment 14.23 benefit amount shall not be affected by the first Sunday in 14.24 August change in the state's maximum weekly unemployment benefit 14.25 amount. 14.26 (d) The maximum amount of unemployment benefits available 14.27 on any benefit account shall be the lower of: 14.28 (1) 33-1/3 percent of the applicant's total wage credits; 14.29 or 14.30 (2) 26 times the applicant's weekly unemployment benefit 14.31 amount. 14.32 [EFFECTIVE DATE.] This section is effective the day 14.33 following final enactment. 14.34 Sec. 9. [268.084] [PERSONAL IDENTIFICATION NUMBER; 14.35 PRESUMPTION.] 14.36 (a) Each applicant shall be issued a personal 15.1 identification number (PIN) for the purpose of filing continued 15.2 biweekly requests for unemployment benefits, accessing 15.3 information, and engaging in other transactions with the 15.4 department. 15.5 (b) If a PIN assigned to an applicant is used in the filing 15.6 of a continued biweekly request for unemployment benefits under 15.7 section 268.086 or any other type of transaction, the applicant 15.8 shall be presumed to have been the individual using that PIN and 15.9 presumed to have received any unemployment benefit payment 15.10 issued. This presumption may be rebutted by a preponderance of 15.11 the evidence showing that the applicant assigned the PIN was not 15.12 the individual who used that PIN in the transaction. 15.13 (c) The commissioner shall notify each applicant of this 15.14 section. 15.15 Sec. 10. Minnesota Statutes 2002, section 268.086, 15.16 subdivision 2, is amended to read: 15.17 Subd. 2. [CONTINUED BIWEEKLY REQUEST FOR UNEMPLOYMENT 15.18 BENEFITS DEFINED.] A continued biweekly request for unemployment 15.19 benefits is a certification by an applicant, done on a weekly or15.20 biweekly basis as prescribed by the commissioner, onthat the 15.21 applicant'sapplicant is unemployed and meets the ongoing 15.22 eligibility requirements for unemployment benefits under section 15.23 268.085 for a specific week or two-week period. A 15.24 continued biweekly request shall include information on possible 15.25 issues of disqualification in accordance with section 268.101, 15.26 subdivision 1, paragraph (c). 15.27 Sec. 11. Minnesota Statutes 2002, section 268.095, 15.28 subdivision 1, is amended to read: 15.29 Subdivision 1. [QUIT.] An applicant who quit employment 15.30 shall be disqualified from all unemployment benefits except when: 15.31 (1) the applicant quit the employment because of a good 15.32 reason caused by the employer; 15.33 (2) the applicant quit the employment to accept other 15.34 covered employment that provided substantially better terms and 15.35 conditions of employment, but the applicant did not work long 15.36 enough at the other employment to have sufficient subsequent 16.1 earnings to satisfy the disqualification that would otherwise be 16.2 imposed; 16.3 (3) the applicant quit the employment within 30 calendar 16.4 days of beginning the employment because the employment was 16.5 unsuitable for the applicant; 16.6 (4) the employment was unsuitable for the applicant and the 16.7 applicant quit to enter reemployment assistance training; 16.8 (5) the employment was part time and the applicant had 16.9 full-time employment in the base period, that the applicant 16.10 separated from because of nondisqualifying reasons, sufficient 16.11 to meet the minimum requirements to establish a benefit account 16.12 under section 268.07; 16.13 (6) the applicant quit because the employer notified the 16.14 applicant that the applicant was going to be laid off due to 16.15 lack of work within 30 calendar days. An applicant who quit 16.16 employment within 30 calendar days of a notified date of layoff 16.17 due to lack of work shall be disqualified from unemployment 16.18 benefits through the end of the week that includes the scheduled 16.19 date of layoff; 16.20 (7) the applicant quit the employment because the 16.21 applicant's serious illness or injury made it medically 16.22 necessary that the applicant quit, provided that the applicant16.23 made reasonable efforts to remain in that employment in spite of16.24 the serious illness or injury.16.25 Reasonable efforts to remain in that employment are those a16.26 reasonable individual would make if interested in remaining with16.27 the employer and requirethat the applicant inform the employer 16.28 of the serious illness or injury and request accommodation and 16.29 no reasonable accommodation is made available. 16.30 If the applicant's serious illness is chemical dependency, 16.31 the applicant has not made reasonable efforts to remain in that16.32 employmentthis exception shall not apply if the applicant 16.33 haswas previously beendiagnosed as chemically dependent ,or 16.34 has previouslyhad treatment for chemical dependency, and since 16.35 that diagnosis or treatment has failed to make consistent 16.36 efforts to control the chemical dependency; or 17.1 (8) domestic abuse of the applicant or the applicant's 17.2 minor child, necessitated the applicant's quitting the 17.3 employment. Domestic abuse shall be shown by one or more of the 17.4 following: 17.5 (i) a court order for protection or other documentation of 17.6 equitable relief issued by a court; 17.7 (ii) a police record documenting the domestic abuse; 17.8 (iii) documentation that the perpetrator of the domestic 17.9 abuse has been convicted of the offense of domestic abuse; 17.10 (iv) medical documentation of domestic abuse; or 17.11 (v) documentation or certificationwritten statement that 17.12 the applicant or the applicant's minor child is a victim of the17.13 domestic abuse, provided by a social worker, member of the 17.14 clergy, shelter worker, attorney at law, or other professional 17.15 who has assisted the applicant in dealing with the domestic 17.16 abuse. 17.17 Domestic abuse for purposes of this clause shall be defined 17.18 under section 518B.01. 17.19 Sec. 12. Minnesota Statutes 2002, section 268.095, 17.20 subdivision 2, is amended to read: 17.21 Subd. 2. [QUIT DEFINED.] (a) A quit from employment occurs 17.22 when the decision to end the employment was, at the time the 17.23 employment ended, the employee's. 17.24 (b) An employee who has been notified that the employee 17.25 will be discharged in the future, who chooses to end the 17.26 employment while employment in any capacity is still available, 17.27 shall be considered to have quit the employment. 17.28 (c) An employee who seeks to withdraw a previously 17.29 submitted notice of quitting shall be considered to have quit 17.30 the employment if the employer does not agree that the notice 17.31 may be withdrawn. 17.32 (d) An applicant who, without good cause, fails to17.33 affirmatively request an additional job assignmentwithin five 17.34 calendar days after completion of a suitable temporary job 17.35 assignment from a staffing service employer, (1) fails without 17.36 good cause to affirmatively request an additional job 18.1 assignment, or (2) refuses without good cause an additional 18.2 suitable job assignment offered, shall be considered to have 18.3 quit employment. 18.4 This paragraph shall apply only if, at the time of 18.5 beginning of employment with the staffing service employer, the 18.6 applicant signed and was provided a copy of a separate document 18.7 written in clear and concise language that informed the 18.8 applicant of this paragraph and that unemployment benefits may 18.9 be affected. 18.10 For purposes of this paragraph, "good cause" shall be a 18.11 reason that is significant and would compel an average, 18.12 reasonable worker, who would otherwise want an additional 18.13 temporary job assignment with the staffing service employer, (1) 18.14 to fail to contact the staffing service employer, or (2) to 18.15 refuse an offered assignment. The applicant shall be considered18.16 to have good cause if the temporary job assignment just18.17 completed was not suitable employment for the applicant.18.18 For purposes of this paragraph, a "staffing service 18.19 employer" is an employer whose business involves employing 18.20 individuals directly for the purpose of furnishing temporary 18.21 helpjob assignment workers to clients of the staffing service. 18.22 Sec. 13. Minnesota Statutes 2002, section 268.095, 18.23 subdivision 6, is amended to read: 18.24 Subd. 6. [EMPLOYMENT MISCONDUCT DEFINED.] (a) Employment 18.25 misconduct means :18.26 (1)any intentional, negligent, or indifferent conduct, on 18.27 the job or off the job ,(1) that disregardsevinces a serious 18.28 violation of the standards of behavior that anthe employer has 18.29 the right to reasonably expect of the employee or disregards the18.30 employee's duties and obligations to the employer;, or (2) 18.31 negligent or indifferent conduct, on the job or off the job,18.32 that demonstrates a substantial lack of concern for the 18.33 employment. 18.34 (b)Inefficiency, inadvertence, simple unsatisfactory 18.35 conduct, a single incident that does not have a significant 18.36 adverse impact on the employer, conduct an average reasonable 19.1 employee would have engaged in under the circumstances, poor 19.2 performance because of inability or incapacity, good faith 19.3 errors in judgment if judgment was required, or absence because 19.4 of illness or injury with proper notice to the employer, are not 19.5 employment misconduct. 19.6 (c) Any conduct in violation of paragraph (a), clause (1)19.7 or (2),(b) Conduct that was a direct result of the applicant's 19.8 chemical dependency is not employment misconduct ifunless the 19.9 applicant haswas previously beendiagnosed chemically dependent 19.10 or had treatment for chemical dependency, and since that 19.11 diagnosis or treatment has failed to make consistent efforts to 19.12 control the chemical dependency. 19.13 (c) Conduct that was a result of the applicant, or the 19.14 applicant's minor child, being a victim of domestic abuse as 19.15 defined under section 518B.01, is not employment misconduct. 19.16 Domestic abuse shall be shown as provided for in section 19.17 268.095, subdivision 1, clause (8). 19.18 (d) A driving offense in violation of sections 169A.20, 19.19 169A.31, or 169A.50 to 169A.53 that interferes with or adversely 19.20 affects the employment is employment misconduct. 19.21 (e) The definition of employment misconduct provided by 19.22 this subdivision shall be exclusive. 19.23 Sec. 14. Minnesota Statutes 2002, section 268.095, 19.24 subdivision 11, is amended to read: 19.25 Subd. 11. [APPLICATION.] (a) This section shall apply to 19.26 all covered employment, full time or part time, temporary or of 19.27 limited duration, permanent or of indefinite duration, that 19.28 occurred in Minnesota during the base period, the period between 19.29 the end of the base period and the effective date of the benefit 19.30 account, or the benefit year, except as provided for in 19.31 subdivision 1, clause (5). Subdivision 8 shall only apply to 19.32 offers of suitable employment made during the applicant's 19.33 benefit year. 19.34 (b) Paragraph (a) shall also apply to employment covered 19.35 under an unemployment insurance program of any other state or 19.36 established by an act of Congress. 20.1 Sec. 15. Minnesota Statutes 2002, section 268.105, 20.2 subdivision 7, is amended to read: 20.3 Subd. 7. [JUDICIAL REVIEW.] (a) The Minnesota court of 20.4 appeals shall, by writ of certiorari to the commissioner, review 20.5 the decision of the commissioner provided a petition for the 20.6 writ is filed with the court and a copy is served upon the 20.7 commissioner and any other involved party within 30 calendar 20.8 days of the mailing of the commissioner's decision. 20.9 (b) Any employer petitioning for a writ of certiorari shall 20.10 pay to the court the required filing fee and upon the service of 20.11 the writ shall furnish a cost bond to the commissioner in 20.12 accordance with the rules of civil appellate procedure. If the 20.13 employer requests a written transcript of the testimony received 20.14 at the evidentiary hearing conducted pursuant to subdivision 1, 20.15 the employer shall pay to the commissioner the cost of preparing 20.16 the transcript. 20.17 (c) Upon issuance by the Minnesota court of appeals of a 20.18 writ of certiorari as a result of an applicant's petition, the 20.19 commissioner shall furnish to the applicant at no cost a written 20.20 transcript of the testimony received at the evidentiary hearing 20.21 conducted pursuant to subdivision 1, and, if requested, a copy 20.22 of all exhibits entered into evidence. No filing fee or cost 20.23 bond shall be required of an applicant petitioning the Minnesota 20.24 court of appeals for a writ of certiorari. 20.25 (d) The commissioner shall be considered the primary 20.26 responding party to any judicial action involving the 20.27 commissioner's decision. The commissioner may be represented by 20.28 an attorney who is a classifiedan employee of the department 20.29 designated by the commissioner for that purpose. 20.30 [EFFECTIVE DATE.] This section is effective the day 20.31 following final enactment. 20.32 Sec. 16. Minnesota Statutes 2002, section 268.18, 20.33 subdivision 1, is amended to read: 20.34 Subdivision 1. [NONFRAUD OVERPAYMENT DUE TO ERROR.] (a) 20.35 Any applicant who (1) by reason of the applicant's own mistake, 20.36 or (2) because of an error by any employee of the department, or 21.1 (3) because of a determination, redetermination, or amended 21.2 determination issued pursuant to section 268.07 or 268.101, or 21.3 (4) because of an appeal decision under section 268.105, has 21.4 received any unemployment benefits that the applicant was not 21.5 entitled to, shall promptly repay the unemployment benefits to 21.6 the trust fund. If the applicant fails to repay the21.7 unemployment benefits,The commissioner shall, as soon as the 21.8 erroneous paymentoverpayment is discovered, determine the 21.9 amount due and notify the applicant in writing to repay the 21.10 unemployment benefits. 21.11 (b) Unless the applicant files an appeal within 30 calendar 21.12 days after the mailing of the determination of overpayment to 21.13 the applicant's last known address, the determination shall 21.14 become final. Proceedings on the appeal shall be conducted in 21.15 accordance with section 268.105. An applicant may not 21.16 collaterally attack, by way of an appeal to an overpayment 21.17 determination, any prior determination issued pursuant to 21.18 section 268.07 or 268.101, or decision issued pursuant to 21.19 section 268.105, that has become final. 21.20 (c) If the applicant fails to repay the unemployment 21.21 benefits determined overpaid under this subdivision, the 21.22 commissioner may offset from any future unemployment benefits 21.23 otherwise payable the amount of the overpayment. Except when 21.24 the overpayment resulted because the applicant failed to report 21.25 deductible earnings or deductible or benefit delaying payments, 21.26 no single offset shall exceed 50 percent of the amount of the 21.27 payment from which the offset is made. The overpayment may also 21.28 be collected by the same methods as delinquent taxes. A 21.29 determination of overpayment shall state the methods of 21.30 collection the commissioner may use to recover the overpayment. 21.31 (d) If an applicant has been overpaid unemployment benefits 21.32 under the law of another state because of an error, due to a 21.33 reason other than fraud, and that state certifies that the 21.34 applicant is liable under its law to repay the unemployment 21.35 benefits and requests the commissioner to recover the 21.36 overpayment, the commissioner may offset from future 22.1 unemployment benefits otherwise payable the amount of 22.2 overpayment, except that no single offset shall exceed 50 22.3 percent of the amount of the payment from which the offset is 22.4 made. 22.5 (e) Unemployment benefits paid for weeks more than three 22.6 years prior to the discovery of erroroverpayment under this 22.7 subdivision are not overpaid unemployment benefits. 22.8 Sec. 17. Minnesota Statutes 2002, section 268.18, 22.9 subdivision 4, is amended to read: 22.10 Subd. 4. [CANCELLATION OF OVERPAYMENTS.] (a) If 22.11 unemployment benefits paid because of an errordetermined 22.12 overpaid under subdivision 1 are not repaid or offset from 22.13 subsequent unemployment benefits as provided for in subdivision 22.14 1 within six years after the date of the determination of 22.15 overpayment, the commissioner shall cancel the overpayment 22.16 balance, and no administrative or legal proceedings shall be 22.17 used to enforce collection of those amounts. 22.18 (b) If unemployment benefits paid as a result of22.19 frauddetermined overpaid under subdivision 2 including 22.20 penalties and interest are not repaid or offset from subsequent 22.21 unemployment benefits as provided for in subdivision 2 within 22.22 ten years after the date of the determination of overpayment by 22.23 fraud, the commissioner shall cancel the overpayment balance and 22.24 any penalties and interest due, and no administrative or legal 22.25 proceeding shall be used to enforce collection of those amounts. 22.26 (c) The commissioner may cancel at any time any 22.27 overpayment, including penalties and interest, that the 22.28 commissioner determines is uncollectible due to death or 22.29 bankruptcy. 22.30 Sec. 18. [GATE PILOT PROJECT.] 22.31 The commissioner of economic security may implement a pilot 22.32 project involving unemployment benefit applicants who are 22.33 participating in the Growing America Through Entrepreneurship, 22.34 (GATE) program, a joint initiative of the Small Business 22.35 Administration and the United States Department of Labor, to 22.36 help create, support, and expand small business opportunities in 23.1 diverse communities. The commissioner may waive all or part of 23.2 the ongoing eligibility requirements under Minnesota Statutes, 23.3 sections 268.085 and 268.086 for GATE participants. 23.4 A maximum of 200 unemployment benefit applicants may be 23.5 involved in this pilot project at any one time. 23.6 [EFFECTIVE DATE.] This section is effective the day 23.7 following final enactment. 23.8 Sec. 19. [SUNSET.] 23.9 Section 18 expires on June 30, 2008. 23.10 Sec. 20. [REVISOR'S INSTRUCTION.] 23.11 (a) The revisor of statutes shall change the term 23.12 "unemployment insurance benefits program" to "unemployment 23.13 insurance program" throughout Minnesota Statutes. 23.14 (b) The revisor of statutes shall change the term "payments 23.15 in lieu of taxes" to "reimbursements" in Minnesota Statutes, 23.16 sections 268.01 to 268.23. 23.17 (c) The revisor of statutes shall change the term 23.18 "continued request" to "continued biweekly request" in Minnesota 23.19 Statutes, sections 268.029 to 268.23. 23.20 (d) The revisor of statutes shall change the term 23.21 "unemployment insurance program law" to "unemployment insurance 23.22 law" in Minnesota Statutes, sections 268.029 to 268.23. 23.23 (e) The revisor of statutes shall change the term 23.24 "unemployment insurance program trust fund" to "unemployment 23.25 insurance trust fund" in Minnesota Statutes, sections 268.029 to 23.26 268.23. 23.27 (f) The revisor of statutes shall change the term 23.28 "experience rating record" to "experience rating" in Minnesota 23.29 Statutes, sections 268.029 to 268.23. 23.30 (g) The revisor of statutes shall change the term "this 23.31 subdivision shall be exclusive" to "this subdivision shall be 23.32 exclusive and no other definition shall apply" in Minnesota 23.33 Statutes, sections 268.029 to 268.23. 23.34 (h) The revisor of statutes shall change the term 23.35 "applicants" to "unemployment benefit applicants" in Minnesota 23.36 Statutes, section 268.26. 24.1 (i) The revisor of statutes shall change the term 24.2 "benefits" to "unemployment benefits" in Minnesota Statutes, 24.3 sections 268.07, subdivision 3, paragraph (b); 268.101, 24.4 subdivision 1; and 268.18, subdivision 3a. 24.5 (j) The revisor of statutes shall change the term 24.6 "disqualified from" to "ineligible for" and change the term 24.7 "disqualified" to "ineligible" in Minnesota Statutes, section 24.8 268.095, subdivision 12. 24.9 (k) The revisor of statutes shall renumber each section of 24.10 Minnesota Statutes listed in column A with the number listed in 24.11 column B. The revisor shall also make necessary cross-reference 24.12 changes consistent with the renumbering. 24.13 Column A Column B 24.14 268.095, subd. 12 268.085, subd. 13b 24.15 268.035, subd. 18 268.035, subd. 25a 24.16 (l) The revisor of statutes shall change the term "fund" to 24.17 "trust fund" in Minnesota Statutes, sections 268.029 to 268.23. 24.18 Sec. 21. [REPEALER.] 24.19 Minnesota Rules, part 3315.1015, subpart 4, is repealed.