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Minnesota Legislature

Office of the Revisor of Statutes

SF 3055

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to veterans; establishing a loan program; adding certain veterans to those
eligible for a program; changing an unemployment compensation provision;
appropriating money; amending Minnesota Statutes 2007 Supplement, sections
116L.17, subdivision 1; 268.047, subdivision 2; proposing coding for new law
in Minnesota Statutes, chapter 116J.


Section 1.

new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
new text end

new text begin (b) "Active service" has the meaning given in section 190.05.
new text end

new text begin (c) "Commissioner" means the commissioner of employment and economic
new text end

new text begin (d) "Eligible business" means a small business, as defined in section 645.445, that
was operating in Minnesota on the date a military reservist received orders for active
new text end

new text begin (e) "Essential employee" means a military reservist who is an owner or employee
of an eligible business and whose managerial or technical expertise is critical to the
day-to-day operation of the eligible business.
new text end

new text begin (f) "Military reservist" means a member of the reserve component of the armed
new text end

new text begin (g) "Reserve component of the armed forces" has the meaning given it in United
States Code, title 10, section 101(c).
new text end

new text begin (h) "Substantial economic injury" means an economic harm to an eligible business
that results in the inability of the eligible business to:
new text end

new text begin (1) meet its obligations as they mature;
new text end

new text begin (2) pay its ordinary and necessary operating expenses; or
new text end

new text begin (3) manufacture, produce, market, or provide a product or service ordinarily
manufactured, produced, marketed, or provided by the eligible business.
new text end

new text begin Subd. 2. new text end

new text begin Loan program. new text end

new text begin The commissioner may make onetime, interest-free loans
of up to $20,000 per borrower to eligible businesses that have sustained or are likely to
sustain substantial economic injury as a result of the call to active service for 180 days
or more of an essential employee. Loans must be made for the purpose of preventing,
remedying, or ameliorating the substantial economic injury.
new text end

new text begin Subd. 3. new text end

new text begin Revolving loan account. new text end

new text begin The commissioner shall use money appropriated
for the purpose to establish a revolving loan account. All repayments of loans made
under this section, including principal and interest, must be deposited into this account.
Interest earned on money in the account accrues to the account. Money in the account is
appropriated to the commissioner for purposes of the loan program created in this section,
including costs incurred by the commissioner to establish and administer the program.
new text end

new text begin Subd. 4. new text end

new text begin Rules. new text end

new text begin Using the expedited rulemaking procedures of section 14.389, the
commissioner shall develop and publish expedited rules for loan applications, use of
funds, needed collateral, terms of loans, and other details of military reservist economic
injury loans.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 116L.17, subdivision 1, is
amended to read:

Subdivision 1.


(a) For the purposes of this section, the following terms
have the meanings given them in this subdivision.

(b) "Commissioner" means the commissioner of employment and economic

(c) "Dislocated worker" means an individual who is a resident of Minnesota at the
time employment ceased or was working in the state at the time employment ceased and:

(1) has been permanently separated or has received a notice of permanent separation
from public or private sector employment and is eligible for or has exhausted entitlement
to unemployment benefits, and is unlikely to return to the previous industry or occupation;

(2) has been long-term unemployed and has limited opportunities for employment
or reemployment in the same or a similar occupation in the area in which the individual
resides, including older individuals who may have substantial barriers to employment by
reason of age;

(3) has been terminated or has received a notice of termination of employment as a
result of a plant closing or a substantial layoff at a plant, facility, or enterprise;

(4) has been self-employed, including farmers and ranchers, and is unemployed as a
result of general economic conditions in the community in which the individual resides
or because of natural disasters;

(5) has been permanently separated from employment in a restaurant, bar, or
lawful gambling organization from October 1, 2007, to October 1, 2009, due to the
implementation of any state law prohibiting smoking; deleted text beginordeleted text end

new text begin (6) is a veteran as defined by section 197.447, and has been discharged or released
from active duty under honorable conditions within the last 36 months, and (i) is
unemployed or (ii) is employed in a job which pays less than what the veteran could
verifiably earn; or
new text end

deleted text begin (6)deleted text end new text begin(7) new text endis a displaced homemaker. A "displaced homemaker" is an individual who
has spent a substantial number of years in the home providing homemaking service and
(i) has been dependent upon the financial support of another; and now due to divorce,
separation, death, or disability of that person, must find employment to self support; or (ii)
derived the substantial share of support from public assistance on account of dependents
in the home and no longer receives such support.

To be eligible under this clause, the support must have ceased while the worker
resided in Minnesota.

(d) "Eligible organization" means a state or local government unit, nonprofit
organization, community action agency, business organization or association, or labor

(e) "Plant closing" means the announced or actual permanent shutdown of a single
site of employment, or one or more facilities or operating units within a single site of

(f) "Substantial layoff" means a permanent reduction in the workforce, which is
not a result of a plant closing, and which results in an employment loss at a single site
of employment during any 30-day period for at least 50 employees excluding those
employees that work less than 20 hours per week.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 268.047, subdivision 2, is
amended to read:

Subd. 2.

Exceptions for all employers.

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

(1) the applicant was discharged from the employment because of aggravated
employment misconduct as determined under section 268.095. This exception applies
only to unemployment benefits paid for periods after the applicant's discharge from

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

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

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

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

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

(7) the unemployment benefits were paid by another state as a result of the
transferring of wage credits under a combined wage arrangement provided for in section

(8) the applicant stopped working because of a labor dispute at the applicant's
primary place of employment if the employer was not a party to the labor dispute;

(9) the unemployment benefits were determined overpaid unemployment benefits
under section 268.18; deleted text beginordeleted text end

(10) new text beginthe applicant was employed as a replacement worker, for a period of six months
or longer, for an employee who is in the military reserve and was called for active duty
during the time the applicant worked as a replacement, and the applicant was laid off
because the employee returned to employment after active duty; or
new text end

new text begin (11) new text endthe trust fund was reimbursed for the unemployment benefits by the federal

Sec. 4. new text beginAPPROPRIATION.
new text end

new text begin $1,000,000 is appropriated in fiscal year 2009 to the commissioner of employment
and economic development to establish the revolving loan account created under
Minnesota Statutes, section 116J.996, subdivision 3. This appropriation is available until
new text end

Sec. 5. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 2 and 3 are effective the day following final enactment.
new text end