SF 3945

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 04/19/2018 04:34pm

A bill for an act
relating to jobs and economic development; modifying job training program
requirements; limiting use of funds in the Douglas J. Johnson economic protection
trust fund; modifying the youth skills training program; modifying accessibility
requirements for public buildings; modifying fees for manufactured home installers;
adopting recommendations of the Workers' Compensation Advisory Council;
adjusting basis for determining salary for judges of Workers' Compensation Court
of Appeals; adopting recommendations of the Unemployment Insurance Advisory
Council; appropriating money; amending Minnesota Statutes 2016, sections
116J.8747, subdivisions 2, 4; 175A.05; 176.231, subdivision 9; 268.035,
subdivisions 4, 12; 268.044, subdivisions 2, 3; 268.047, subdivision 3; 268.051,
subdivisions 2a, 3; 268.053, subdivision 1; 268.057, subdivision 5; 268.059;
268.066; 268.067; 268.069, subdivision 1; 268.085, subdivisions 3, 3a; 268.095,
subdivision 6a; 268.105, subdivision 6; 268.145, subdivision 1; 326B.106,
subdivision 9; 326B.815, subdivision 1; 327B.041; Minnesota Statutes 2017
Supplement, sections 15A.083, subdivision 7; 175.46, subdivision 13; 268.035,
subdivisions 15, 20; 268.046, subdivision 1; 268.07, subdivision 1; 268.085,
subdivision 13a; 268.095, subdivision 6; 268.18, subdivisions 2b, 5; 298.292,
subdivision 2; Laws 2017, chapter 94, article 1, sections 2, subdivisions 2, 3; 4,
subdivision 5; 9; proposing coding for new law in Minnesota Statutes, chapter
176; repealing Minnesota Statutes 2016, section 268.053, subdivisions 4, 5.

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

ARTICLE 1

JOBS AND ECONOMIC GROWTH

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the appropriations
in Laws 2017, chapter 94, or appropriated to the agencies and for the purposes specified in
this article. The appropriations are from the general fund, or another named fund, and are
available for the fiscal year indicated for each purpose. The figures "2018" and "2019" used
in this article mean that the addition to the appropriations listed under them are available
for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first year" is
fiscal year 2018. "The second year" is fiscal year 2019. Appropriations for fiscal year 2018
are effective June 1, 2018.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2018 new text end		new text begin 2019 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end new text begin new text end

new text begin $ new text end

new text begin 17,025,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin -0- new text end	new text begin 17,000,000 new text end
new text begin Workforce Development new text end	new text begin -0- new text end	new text begin 25,000 new text end

new text begin Subd. 2. new text end new text begin Business and Community Development new text end

new text begin -0- new text end

new text begin 2,000,000 new text end

new text begin $2,000,000 in fiscal year 2019 is for the
redevelopment grant and demolition loan
programs under Minnesota Statutes, sections
116J.571 to 116J.5764. This is a onetime
appropriation and is available until spent.
new text end

new text begin Subd. 3. new text end new text begin Broadband Development new text end

new text begin -0- new text end

new text begin 15,000,000 new text end

new text begin $15,000,000 in fiscal year 2019 is for deposit
in the border-to-border broadband fund
account in the special revenue fund established
under Minnesota Statutes, section 116J.396.
This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end new text begin Workforce Development new text end

new text begin -0- new text end

new text begin 25,000 new text end

new text begin $25,000 in fiscal year 2019 is from the
workforce development fund for a grant to the
Cook County Higher Education Board to
provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This is a onetime
appropriation and is in addition to other funds
previously appropriated to the board.
new text end

Sec. 3. new text begin WORKERS' COMPENSATION COURT OF APPEALS new text end

new text begin $ new text end

new text begin 0 new text end

new text begin $ new text end

new text begin 33,000 new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

ARTICLE 2

ECONOMIC DEVELOPMENT POLICY

Section 1.

Minnesota Statutes 2016, section 116J.8747, subdivision 2, is amended to read:

Subd. 2.

Qualified job training program.

To qualify for grants under this section, a
job training program must satisfy the following requirements:

(1) the program must be operated by a nonprofit corporation that qualifies under section
501(c)(3) of the Internal Revenue Code;

(2) the program must spend, on average, $15,000 or more per graduate of the program;

(3) the program must provide education and training in:

(i) basic skills, such as reading, writing, mathematics, and communications;

(ii) thinking skills, such as reasoning, creative thinking, decision making, and problem
solving; and

(iii) personal qualities, such as responsibility, self-esteem, self-management, honesty,
and integrity;

(4) the program may provide income supplements, when needed, to participants for
housing, counseling, tuition, and other basic needs;

(5) deleted text begin the program's education and training course must last for an average of at least six
months;
deleted text end

deleted text begin (6) deleted text end individuals served by the program must deleted text begin :
deleted text end

deleted text begin (i) deleted text end be 18 years of age or older deleted text begin ; deleted text end new text begin as of the date of enrollment, and
new text end

deleted text begin (ii) deleted text end have deleted text begin federal adjusted gross deleted text end new text begin household new text end income deleted text begin of no more than $12,000 per year deleted text end in
the calendar year immediately before entering the program new text begin that is 100 percent or less of the
federal poverty guideline for Minnesota, based on family size new text end ; new text begin and
new text end

deleted text begin (iii) have assets of no more than $10,000, excluding the value of a homestead; and
deleted text end

deleted text begin (iv) not have been claimed as a dependent on the federal tax return of another person in
the previous taxable year; and
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end the program must be certified by the commissioner of employment and economic
development as meeting the requirements of this subdivision.

Sec. 2.

Minnesota Statutes 2016, section 116J.8747, subdivision 4, is amended to read:

Subd. 4.

Duties of program.

(a) A program certified by the commissioner under
subdivision 2 must comply with the requirements of this subdivision.

(b) A program must maintain records for each qualified graduate. The records must
include information sufficient to verify the graduate's eligibility under this section, identify
the employer, and describe the job including its compensation rate and benefits.

(c) A program deleted text begin must report by January 1 of each year to the commissioner. The report
must include, at least, information on: deleted text end new text begin is subject to the reporting requirements under section
116L.98.
new text end

deleted text begin (1) the number of graduates placed;
deleted text end

deleted text begin (2) demographic information on the graduates;
deleted text end

deleted text begin (3) the type of position in which each graduate is placed, including compensation
information;
deleted text end

deleted text begin (4) the tenure of each graduate at the placed position or in other jobs;
deleted text end

deleted text begin (5) the amount of employer fees paid to the program;
deleted text end

deleted text begin (6) the amount of money raised by the program from other sources; and
deleted text end

deleted text begin (7) the types and sizes of employers with which graduates have been placed and retained.
deleted text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 298.292, subdivision 2, is amended
to read:

Subd. 2.

Use of money.

new text begin (a) new text end Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
with private sources of financing, but a loan to a private enterprise shall be for a principal
amount not to exceed one-half of the cost of the project for which financing is sought, and
the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
percent or an interest rate three percentage points less than a full faith and credit obligation
of the United States government of comparable maturity, at the time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section 298.2211;

(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
retrofitting heating facilities in connection with district heating systems or systems utilizing
alternative energy sources;

(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
Johnson economic protection trust fund may not exceed the amount of the largest investment
by an unrelated investor in the venture capital fund or enterprise. For purposes of this
subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
which the investment is made or to any individual who owns more than 40 percent of the
value of the entity, in any of the following relationships: spouse, parent, child, sibling,
employee, or owner of an interest in the entity that exceeds ten percent of the value of all
interests in it. For purposes of determining the limitations under this clause, the amount of
investments made by an investor other than the Douglas J. Johnson economic protection
trust fund is the sum of all investments made in the venture capital fund or enterprise during
the period beginning one year before the date of the investment by the Douglas J. Johnson
economic protection trust fund; and

(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
be held and managed as a public trust for the benefit of the area for the purposes authorized
in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
commissioner, after consultation with the advisory board. The net proceeds must be deposited
in the trust fund for the purposes and uses of this section.

new text begin (b) new text end Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

new text begin (c) Money devoted to the trust fund under this section shall not be expended, appropriated,
or transferred from the trust fund for any purpose except as provided in this section.
new text end

Sec. 4.

Laws 2017, chapter 94, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. Business and Community Development

$

46,074,000

$

40,935,000

Appropriations by Fund
General	$43,363,000	$38,424,000
Remediation	$700,000	$700,000
Workforce Development	$1,861,000	$1,811,000
Special Revenue	$150,000	-0-

(a) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until spent.

(b) $750,000 each year is for grants to the
Neighborhood Development Center for small
business programs:

(1) training, lending, and business services;

(2) model outreach and training in greater
Minnesota; and

(3) development of new business incubators.

This is a onetime appropriation.

(c) $1,175,000 each year is for a grant to the
Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services, including
services to entrepreneurs with businesses that
have the potential to create job opportunities
for unemployed and underemployed people,
with an emphasis on minority-owned
businesses. This is a onetime appropriation.

(d) $125,000 each year is for a grant to the
White Earth Nation for the White Earth Nation
Integrated Business Development System to
provide business assistance with workforce
development, outreach, technical assistance,
infrastructure and operational support,
financing, and other business development
activities. This is a onetime appropriation.

(e)(1) $12,500,000 deleted text begin each deleted text end new text begin the first new text end year deleted text begin is deleted text end new text begin and
$10,500,000 the second year are new text end for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administration and monitoring of
the program. This appropriation is available
until spent. new text begin In fiscal year 2020 and beyond,
the base amount is $12,500,000.
new text end

(2) Of the amount appropriated in fiscal year
2018, $4,000,000 is for a loan to construct and
equip a wholesale electronic component
distribution center investing a minimum of
$200,000,000 and constructing a facility at
least 700,000 square feet in size. Loan funds
may be used for purchases of materials,
supplies, and equipment for the construction
of the facility and are available from July 1,
2017, to June 30, 2021. The commissioner of
employment and economic development shall
forgive the loan after verification that the
project has satisfied performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731.

(3) Of the amount appropriated in fiscal year
2018, $700,000 is for a loan to extend an
effluent pipe that will deliver reclaimed water
to an innovative waste-to-biofuel project
investing a minimum of $150,000,000 and
constructing a facility that is designed to
process approximately 400,000 tons of waste
annually. Loan funds are available until June
30, 2021.

new text begin (4) Of the amount appropriated in fiscal year
2019, $1,000,000 is for a grant to the city of
Minnetonka for a forgivable loan to a
high-risk, high-return jobs retention and
creation initiative to be conducted by a local
business that produces lactic acid/lactate, to
help grow and expand the bioeconomy in
Minnesota. The grant under this section is not
subject to the limitations under Minnesota
Statutes, section 116J.8731, subdivision 5, or
the performance goals, contractual obligations,
and other requirements under sections
116J.8731, subdivision 7, 116J.993, and
116J.994. Grant funds are available until June
30, 2021.
new text end

new text begin (5) Of the amount appropriated in fiscal year
2019, $1,500,000 is for a loan to a paper mill
in Duluth to support the operation and
manufacture of packaging paper grades. The
company that owns the paper mill must spend
$15,000,000 on expansion activities by
December 31, 2019, in order to be eligible to
receive funds in this appropriation. This
appropriation is onetime and may be used for
the mill's equipment, materials, supplies, and
other operating expenses. The commissioner
of employment and economic development
shall forgive a portion of the loan each year
after verification that the mill has retained 195
full-time jobs over a period of five years and
has satisfied other performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731.
new text end

(f) $8,500,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended. In fiscal year 2020
and beyond, the base amount is $8,000,000.

(g) $1,647,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
spent. In fiscal year 2020 and beyond, the base
amount is $1,772,000.

(h) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

(i) $163,000 each year is for the Minnesota
Film and TV Board. The appropriation in each
year is available only upon receipt by the
board of $1 in matching contributions of
money or in-kind contributions from nonstate
sources for every $3 provided by this
appropriation, except that each year up to
$50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.

(j) $500,000 each year is from the general fund
for a grant to the Minnesota Film and TV
Board for the film production jobs program
under Minnesota Statutes, section 116U.26.
This appropriation is available until June 30,
2021.

(k) $139,000 each year is for a grant to the
Rural Policy and Development Center under
Minnesota Statutes, section 116J.421.

(l)(1) $1,300,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until spent. If the appropriation
for either year is insufficient, the appropriation
for the other year is available. In fiscal year
2020 and beyond, the base amount is
$1,787,000. Funds available under this
paragraph may be used for site preparation of
property owned and to be used by private
entities.

(2) Of the amounts appropriated, $1,600,000
in fiscal year 2018 is for a grant to the city of
Thief River Falls to support utility extensions,
roads, and other public improvements related
to the construction of a wholesale electronic
component distribution center at least 700,000
square feet in size and investing a minimum
of $200,000,000. Notwithstanding Minnesota
Statutes, section 116J.431, a local match is
not required. Grant funds are available from
July 1, 2017, to June 30, 2021.

(m) $876,000 the first year and $500,000 the
second year are for the Minnesota emerging
entrepreneur loan program under Minnesota
Statutes, section 116M.18. Funds available
under this paragraph are for transfer into the
emerging entrepreneur program special
revenue fund account created under Minnesota
Statutes, chapter 116M, and are available until
spent. Of this amount, up to four percent is for
administration and monitoring of the program.
In fiscal year 2020 and beyond, the base
amount is $1,000,000.

(n) $875,000 each year is for a grant to
Enterprise Minnesota, Inc. for the small
business growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation.

(o) $250,000 in fiscal year 2018 is for a grant
to the Minnesota Design Center at the
University of Minnesota for the greater
Minnesota community design pilot project.

(p) $275,000 in fiscal year 2018 is from the
general fund to the commissioner of
employment and economic development for
a grant to Community and Economic
Development Associates (CEDA) for an
economic development study and analysis of
the effects of current and projected economic
growth in southeast Minnesota. CEDA shall
report on the findings and recommendations
of the study to the committees of the house of
representatives and senate with jurisdiction
over economic development and workforce
issues by February 15, 2019. All results and
information gathered from the study shall be
made available for use by cities in southeast
Minnesota by March 15, 2019. This
appropriation is available until June 30, 2020.

(q) $2,000,000 in fiscal year 2018 is for a
grant to Pillsbury United Communities for
construction and renovation of a building in
north Minneapolis for use as the "North
Market" grocery store and wellness center,
focused on offering healthy food, increasing
health care access, and providing job creation
and economic opportunities in one place for
children and families living in the area. To the
extent possible, Pillsbury United Communities
shall employ individuals who reside within a
five mile radius of the grocery store and
wellness center. This appropriation is not
available until at least an equal amount of
money is committed from nonstate sources.
This appropriation is available until the project
is completed or abandoned, subject to
Minnesota Statutes, section 16A.642.

(r) $1,425,000 each year is for the business
development competitive grant program. Of
this amount, up to five percent is for
administration and monitoring of the business
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.

(s) $875,000 each year is for the host
community economic development grant
program established in Minnesota Statutes,
section 116J.548.

(t) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until spent.

(u) $161,000 each year is from the workforce
development fund for a grant to the Rural
Policy and Development Center. This is a
onetime appropriation.

(v) $300,000 each year is from the workforce
development fund for a grant to Enterprise
Minnesota, Inc. This is a onetime
appropriation.

(w) $50,000 in fiscal year 2018 is from the
workforce development fund for a grant to
Fighting Chance for behavioral intervention
programs for at-risk youth.

(x) $1,350,000 each year is from the
workforce development fund for job training
grants under Minnesota Statutes, section
116L.42.

(y)(1) $519,000 in fiscal year 2018 is for
grants to local communities to increase the
supply of quality child care providers in order
to support economic development. At least 60
percent of grant funds must go to communities
located outside of the seven-county
metropolitan area, as defined under Minnesota
Statutes, section 473.121, subdivision 2. Grant
recipients must obtain a 50 percent nonstate
match to grant funds in either cash or in-kind
contributions. Grant funds available under this
paragraph must be used to implement solutions
to reduce the child care shortage in the state
including but not limited to funding for child
care business start-ups or expansions, training,
facility modifications or improvements
required for licensing, and assistance with
licensing and other regulatory requirements.
In awarding grants, the commissioner must
give priority to communities that have
documented a shortage of child care providers
in the area.

(2) Within one year of receiving grant funds,
grant recipients must report to the
commissioner on the outcomes of the grant
program including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care slots, and the
amount of local funds invested.

(3) By January 1 of each year, starting in 2019,
the commissioner must report to the standing
committees of the legislature having
jurisdiction over child care and economic
development on the outcomes of the program
to date.

(z) $319,000 in fiscal year 2018 is from the
general fund for a grant to the East Phillips
Improvement Coalition to create the East
Phillips Neighborhood Institute (EPNI) to
expand culturally tailored resources that
address small business growth and create
green jobs. The grant shall fund the
collaborative work of Tamales y Bicicletas,
Little Earth of the United Tribes, a nonprofit
serving East Africans, and other coalition
members towards developing EPNI as a
community space to host activities including,
but not limited to, creation and expansion of
small businesses, culturally specific
entrepreneurial activities, indoor urban
farming, job training, education, and skills
development for residents of this low-income,
environmental justice designated
neighborhood. Eligible uses for grant funds
include, but are not limited to, planning and
start-up costs, staff and consultant costs,
building improvements, rent, supplies, utilities,
vehicles, marketing, and program activities.
The commissioner shall submit a report on
grant activities and quantifiable outcomes to
the committees of the house of representatives
and the senate with jurisdiction over economic
development by December 15, 2020. This
appropriation is available until June 30, 2020.

(aa) $150,000 the first year is from the
renewable development account in the special
revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, to
conduct the biomass facility closure economic
impact study.

(bb)(1)$300,000 in fiscal year 2018 is for a
grant to East Side Enterprise Center (ESEC)
to expand culturally tailored resources that
address small business growth and job
creation. This appropriation is available until
June 30, 2020. The appropriation shall fund
the work of African Economic Development
Solutions, the Asian Economic Development
Association, the Dayton's Bluff Community
Council, and the Latino Economic
Development Center in a collaborative
approach to economic development that is
effective with smaller, culturally diverse
communities that seek to increase the
productivity and success of new immigrant
and minority populations living and working
in the community. Programs shall provide
minority business growth and capacity
building that generate wealth and jobs creation
for local residents and business owners on the
East Side of St. Paul.

(2) In fiscal year 2019 ESEC shall use funds
to share its integrated service model and
evolving collaboration principles with civic
and economic development leaders in greater
Minnesota communities which have diverse
populations similar to the East Side of St. Paul.
ESEC shall submit a report of activities and
program outcomes, including quantifiable
measures of success annually to the house of
representatives and senate committees with
jurisdiction over economic development.

(cc) $150,000 in fiscal year 2018 is for a grant
to Mille Lacs County for the purpose of
reimbursement grants to small resort
businesses located in the city of Isle with less
than $350,000 in annual revenue, at least four
rental units, which are open during both
summer and winter months, and whose
business was adversely impacted by a decline
in walleye fishing on Lake Mille Lacs.

(dd)(1) $250,000 in fiscal year 2018 is for a
grant to the Small Business Development
Center hosted at Minnesota State University,
Mankato, for a collaborative initiative with
the Regional Center for Entrepreneurial
Facilitation. Funds available under this section
must be used to provide entrepreneur and
small business development direct professional
business assistance services in the following
counties in Minnesota: Blue Earth, Brown,
Faribault, Le Sueur, Martin, Nicollet, Sibley,
Watonwan, and Waseca. For the purposes of
this section, "direct professional business
assistance services" must include, but is not
limited to, pre-venture assistance for
individuals considering starting a business.
This appropriation is not available until the
commissioner determines that an equal amount
is committed from nonstate sources. Any
balance in the first year does not cancel and
is available for expenditure in the second year.

(2) Grant recipients shall report to the
commissioner by February 1 of each year and
include information on the number of
customers served in each county; the number
of businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates in each county. By April
1 of each year, the commissioner shall report
the information submitted by grant recipients
to the chairs of the standing committees of the
house of representatives and the senate having
jurisdiction over economic development
issues.

(ee) $500,000 in fiscal year 2018 is for the
central Minnesota opportunity grant program
established under Minnesota Statutes, section
116J.9922. This appropriation is available until
June 30, 2022.

Sec. 5.

Laws 2017, chapter 94, article 1, section 2, subdivision 3, is amended to read:

Subd. 3. Workforce Development

$

31,498,000

$

30,231,000

Appropriations by Fund
General	$6,239,000	$5,889,000
Workforce Development	$25,259,000	$24,342,000

(a) $500,000 each year is for the
youth-at-work competitive grant program
under Minnesota Statutes, section 116L.562.
Of this amount, up to five percent is for
administration and monitoring of the youth
workforce development competitive grant
program. All grant awards shall be for two
consecutive years. Grants shall be awarded in
the first year. In fiscal year 2020 and beyond,
the base amount is $750,000.

(b) $250,000 each year is for pilot programs
in the workforce service areas to combine
career and higher education advising.

(c) $500,000 each year is for rural career
counseling coordinator positions in the
workforce service areas and for the purposes
specified in Minnesota Statutes, section
116L.667. The commissioner of employment
and economic development, in consultation
with local workforce investment boards and
local elected officials in each of the service
areas receiving funds, shall develop a method
of distributing funds to provide equitable
services across workforce service areas.

(d) $1,000,000 each year is for a grant to the
Construction Careers Foundation for the
construction career pathway initiative to
provide year-round educational and
experiential learning opportunities for teens
and young adults under the age of 21 that lead
to careers in the construction industry. This is
a onetime appropriation. Grant funds must be
used to:

(1) increase construction industry exposure
activities for middle school and high school
youth, parents, and counselors to reach a more
diverse demographic and broader statewide
audience. This requirement includes, but is
not limited to, an expansion of programs to
provide experience in different crafts to youth
and young adults throughout the state;

(2) increase the number of high schools in
Minnesota offering construction classes during
the academic year that utilize a multicraft
curriculum;

(3) increase the number of summer internship
opportunities;

(4) enhance activities to support graduating
seniors in their efforts to obtain employment
in the construction industry;

(5) increase the number of young adults
employed in the construction industry and
ensure that they reflect Minnesota's diverse
workforce; and

(6) enhance an industrywide marketing
campaign targeted to youth and young adults
about the depth and breadth of careers within
the construction industry.

Programs and services supported by grant
funds must give priority to individuals and
groups that are economically disadvantaged
or historically underrepresented in the
construction industry, including but not limited
to women, veterans, and members of minority
and immigrant groups.

(e) $1,539,000 each year from the general fund
and $4,604,000 each year from the workforce
development fund are for the Pathways to
Prosperity adult workforce development
competitive grant program. Of this amount,
up to four percent is for administration and
monitoring of the program. When awarding
grants under this paragraph, the commissioner
of employment and economic development
may give preference to any previous grantee
with demonstrated success in job training and
placement for hard-to-train individuals. In
fiscal year 2020 and beyond, the general fund
base amount for this program is $4,039,000.

(f) $750,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
fathers, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
four percent is for administration and
monitoring of the program. In fiscal year 2020
and beyond, the base amount is $1,000,000.

(g) $500,000 each year is for the women and
high-wage, high-demand, nontraditional jobs
grant program under Minnesota Statutes,
section 116L.99. Of this amount, up to five
percent is for administration and monitoring
of the program. In fiscal year 2020 and
beyond, the base amount is $750,000.

(h) $500,000 each year is for a competitive
grant program for grants to organizations
providing services to relieve economic
disparities in the Southeast Asian community
through workforce recruitment, development,
job creation, assistance of smaller
organizations to increase capacity, and
outreach. Of this amount, up to five percent
is for administration and monitoring of the
program. In fiscal year 2020 and beyond, the
base amount is $1,000,000.

(i) $250,000 each year is for a grant to the
American Indian Opportunities and
Industrialization Center, in collaboration with
the Northwest Indian Community
Development Center, to reduce academic
disparities for American Indian students and
adults. This is a onetime appropriation. The
grant funds may be used to provide:

(1) student tutoring and testing support
services;

(2) training in information technology;

(3) assistance in obtaining a GED;

(4) remedial training leading to enrollment in
a postsecondary higher education institution;

(5) real-time work experience in information
technology fields; and

(6) contextualized adult basic education.

After notification to the legislature, the
commissioner may transfer this appropriation
to the commissioner of education.

(j) $100,000 each year is for the getting to
work grant program. This is a onetime
appropriation and is available until June 30,
2021.

(k) $525,000 each year is from the workforce
development fund for a grant to the YWCA
of Minneapolis to provide economically
challenged individuals the job skills training,
career counseling, and job placement
assistance necessary to secure a child
development associate credential and to have
a career path in early childhood education.
This is a onetime appropriation.

(l) $1,350,000 each year is from the workforce
development fund for a grant to the Minnesota
High Tech Association to support
SciTechsperience, a program that supports
science, technology, engineering, and math
(STEM) internship opportunities for two- and
four-year college students and graduate
students in their field of study. The internship
opportunities must match students with paid
internships within STEM disciplines at small,
for-profit companies located in Minnesota,
having fewer than 250 employees worldwide.
At least 300 students must be matched in the
first year and at least 350 students must be
matched in the second year. No more than 15
percent of the hires may be graduate students.
Selected hiring companies shall receive from
the grant 50 percent of the wages paid to the
intern, capped at $2,500 per intern. The
program must work toward increasing the
participation of women or other underserved
populations. This is a onetime appropriation.

(m) $450,000 each year is from the workforce
development fund for grants to Minnesota
Diversified Industries, Inc. to provide
progressive development and employment
opportunities for people with disabilities. This
is a onetime appropriation.

(n) $500,000 each year is from the workforce
development fund for a grant to Resource, Inc.
to provide low-income individuals career
education and job skills training that are fully
integrated with chemical and mental health
services. This is a onetime appropriation.

(o) $750,000 each year is from the workforce
development fund for a grant to the Minnesota
Alliance of Boys and Girls Clubs to administer
a statewide project of youth job skills and
career development. This project, which may
have career guidance components including
health and life skills, is designed to encourage,
train, and assist youth in early access to
education and job-seeking skills, work-based
learning experience including career pathways
in STEM learning, career exploration and
matching, and first job placement through
local community partnerships and on-site job
opportunities. This grant requires a 25 percent
match from nonstate resources. This is a
onetime appropriation.

(p) $215,000 each year is from the workforce
development fund for grants to Big Brothers,
Big Sisters of the Greater Twin Cities for
workforce readiness, employment exploration,
and skills development for youth ages 12 to
21. The grant must serve youth in the Twin
Cities, Central Minnesota, and Southern
Minnesota Big Brothers, Big Sisters chapters.
This is a onetime appropriation.

(q) $250,000 each year is from the workforce
development fund for a grant to YWCA St.
Paul to provide job training services and
workforce development programs and
services, including job skills training and
counseling. This is a onetime appropriation.

(r) $1,000,000 each year is from the workforce
development fund for a grant to EMERGE
Community Development, in collaboration
with community partners, for services
targeting Minnesota communities with the
highest concentrations of African and
African-American joblessness, based on the
most recent census tract data, to provide
employment readiness training, credentialed
training placement, job placement and
retention services, supportive services for
hard-to-employ individuals, and a general
education development fast track and adult
diploma program. This is a onetime
appropriation.

(s) $1,000,000 each year is from the workforce
development fund for a grant to the
Minneapolis Foundation for a strategic
intervention program designed to target and
connect program participants to meaningful,
sustainable living-wage employment. This is
a onetime appropriation.

(t) $750,000 each year is from the workforce
development fund for a grant to Latino
Communities United in Service (CLUES) to
expand culturally tailored programs that
address employment and education skill gaps
for working parents and underserved youth by
providing new job skills training to stimulate
higher wages for low-income people, family
support systems designed to reduce
intergenerational poverty, and youth
programming to promote educational
advancement and career pathways. At least
50 percent of this amount must be used for
programming targeted at greater Minnesota.
This is a onetime appropriation.

(u) $600,000 each year is from the workforce
development fund for a grant to Ujamaa Place
for job training, employment preparation,
internships, education, training in the
construction trades, housing, and
organizational capacity building. This is a
onetime appropriation.

(v) $1,297,000 in the first year and $800,000
in the second year are from the workforce
development fund for performance grants
under Minnesota Statutes, section 116J.8747,
to Twin Cities R!SE to provide training to
hard-to-train individuals. Of the amounts
appropriated, $497,000 in fiscal year 2018 is
for a grant to Twin Cities R!SE, in
collaboration with Metro Transit and Hennepin
Technical College for the Metro Transit
technician training program. This is a onetime
appropriation and funds are available until
June 30, 2020.

(w) $230,000 in fiscal year 2018 is from the
workforce development fund for a grant to the
Bois Forte Tribal Employment Rights Office
(TERO) for an American Indian workforce
development training pilot project. new text begin This is a
onetime appropriation and is available until
June 30, 2019. Funds appropriated the first
year are available for use in the second year
of the biennium.
new text end

(x) $40,000 in fiscal year 2018 is from the
workforce development fund for a grant to the
Cook County Higher Education Board to
provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This appropriation
is in addition to other funds previously
appropriated to the board.

(y) $250,000 each year is from the workforce
development fund for a grant to Bridges to
Healthcare to provide career education,
wraparound support services, and job skills
training in high-demand health care fields to
low-income parents, nonnative speakers of
English, and other hard-to-train individuals,
helping families build secure pathways out of
poverty while also addressing worker
shortages in one of Minnesota's most
innovative industries. Funds may be used for
program expenses, including, but not limited
to, hiring instructors and navigators; space
rental; and supportive services to help
participants attend classes, including assistance
with course fees, child care, transportation,
and safe and stable housing. In addition, up to
five percent of grant funds may be used for
Bridges to Healthcare's administrative costs.
This is a onetime appropriation and is
available until June 30, 2020.

(z) $500,000 each year is from the workforce
development fund for a grant to the Nonprofits
Assistance Fund to provide capacity-building
grants to small, culturally specific
organizations that primarily serve historically
underserved cultural communities. Grants may
only be awarded to nonprofit organizations
that have an annual organizational budget of
less than $500,000 and are culturally specific
organizations that primarily serve historically
underserved cultural communities. Grant funds
awarded must be used for:

(1) organizational infrastructure improvement,
including developing database management
systems and financial systems, or other
administrative needs that increase the
organization's ability to access new funding
sources;

(2) organizational workforce development,
including hiring culturally competent staff,
training and skills development, and other
methods of increasing staff capacity; or

(3) creation or expansion of partnerships with
existing organizations that have specialized
expertise in order to increase the capacity of
the grantee organization to improve services
for the community. Of this amount, up to five
percent may be used by the Nonprofits
Assistance Fund for administration costs and
providing technical assistance to potential
grantees. This is a onetime appropriation.

(aa) $4,050,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.

(bb) $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota Statutes,
sections 116L.361 to 116L.366.

(cc) $3,348,000 each year is from the
workforce development fund for the "Youth
at Work" youth workforce development
competitive grant program. Of this amount,
up to five percent is for administration and
monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.

(dd) $500,000 each year is from the workforce
development fund for the Opportunities
Industrialization Center programs.

(ee) $750,000 each year is from the workforce
development fund for a grant to Summit
Academy OIC to expand its contextualized
GED and employment placement program.
This is a onetime appropriation.

(ff) $500,000 each year is from the workforce
development fund for a grant to
Goodwill-Easter Seals Minnesota and its
partners. The grant shall be used to continue
the FATHER Project in Rochester, Park
Rapids, St. Cloud, Minneapolis, and the
surrounding areas to assist fathers in
overcoming barriers that prevent fathers from
supporting their children economically and
emotionally. This is a onetime appropriation.

(gg) $150,000 each year is from the workforce
development fund for displaced homemaker
programs under Minnesota Statutes, section
116L.96. The commissioner shall distribute
the funds to existing nonprofit and state
displaced homemaker programs. This is a
onetime appropriation.

(hh)(1) $150,000 in fiscal year 2018 is from
the workforce development fund for a grant
to Anoka County to develop and implement
a pilot program to increase competitive
employment opportunities for transition-age
youth ages 18 to 21.

(2) The competitive employment for
transition-age youth pilot program shall
include career guidance components, including
health and life skills, to encourage, train, and
assist transition-age youth in job-seeking
skills, workplace orientation, and job site
knowledge.

(3) In operating the pilot program, Anoka
County shall collaborate with schools,
disability providers, jobs and training
organizations, vocational rehabilitation
providers, and employers to build upon
opportunities and services, to prepare
transition-age youth for competitive
employment, and to enhance employer
connections that lead to employment for the
individuals served.

(4) Grant funds may be used to create an
on-the-job training incentive to encourage
employers to hire and train qualifying
individuals. A participating employer may
receive up to 50 percent of the wages paid to
the employee as a cost reimbursement for
on-the-job training provided.

(ii) $500,000 each year is from the workforce
development fund for rural career counseling
coordinator positions in the workforce service
areas and for the purposes specified in
Minnesota Statutes, section 116L.667. The
commissioner of employment and economic
development, in consultation with local
workforce investment boards and local elected
officials in each of the service areas receiving
funds, shall develop a method of distributing
funds to provide equitable services across
workforce service areas.

(jj) In calendar year 2017, the public utility
subject to Minnesota Statutes, section
116C.779, must withhold $1,000,000 from the
funds required to fulfill its financial
commitments under Minnesota Statutes,
section 116C.779, subdivision 1, and pay such
amounts to the commissioner of employment
and economic development for deposit in the
Minnesota 21st century fund under Minnesota
Statutes, section 116J.423.

(kk) $350,000 in fiscal year 2018 is for a grant
to AccessAbility Incorporated to provide job
skills training to individuals who have been
released from incarceration for a felony-level
offense and are no more than 12 months from
the date of release. AccessAbility Incorporated
shall annually report to the commissioner on
how the money was spent and the results
achieved. The report must include, at a
minimum, information and data about the
number of participants; participant
homelessness, employment, recidivism, and
child support compliance; and training
provided to program participants.

Sec. 6.

Laws 2017, chapter 94, article 1, section 9, is amended to read:

Sec. 9. PUBLIC FACILITIES AUTHORITY

$

1,800,000

$

-0-

(a) $300,000 in fiscal year 2018 is for a grant
to the city of New Trier to replace water
infrastructure under Hogan Avenue, including
related road reconstruction, and to acquire land
for predesign, design, and construction of a
storm water pond that will be colocated with
the pond of the new subdivision. This
appropriation does not require a nonstate
contribution.

(b) $600,000 in fiscal year 2018 is for a grant
to the Ramsey/Washington Recycling and
Energy Board to design, construct, and equip
capital improvements to the
Ramsey/Washington Recycling and Energy
Center in Newport.

(c) $900,000 in fiscal year 2018 is for a grant
to the Clear Lake-Clearwater Sewer Authority
to remove and replace the existing wastewater
treatment facility. This project is intended to
prevent the discharge of phosphorus into the
Mississippi River. This appropriation is not
available until the commissioner of
management and budget determines that at
least $200,000 is committed to the project
from nonstate sources and the authority has
applied for at least two grants to offset the
cost. An amount equal to any grant money
received by the authority must be returned to
the general fund. new text begin This appropriation is
available until June 30, 2019.
new text end

ARTICLE 3

LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2017 Supplement, section 175.46, subdivision 13, is amended
to read:

Subd. 13.

Grant awards.

(a) new text begin The commissioner shall award grants to local partnerships
located throughout the state, not to exceed $100,000 per local partnership grant. The
commissioner may use up to five percent of this amount for administration of the grant
program.
new text end

new text begin (b) new text end A local partnership awarded a grant under this section must use the grant award for
any of the following implementation and coordination activities:

(1) recruiting additional employers to provide on-the-job training and supervision for
student learners and providing technical assistance to those employers;

(2) recruiting students to participate in the local youth skills training program, monitoring
the progress of student learners participating in the program, and monitoring program
outcomes;

(3) coordinating youth skills training activities within participating school districts and
among participating school districts, postsecondary institutions, and employers;

(4) coordinating academic, vocational and occupational learning, school-based and
work-based learning, and secondary and postsecondary education for participants in the
local youth skills training program;

(5) coordinating transportation for student learners participating in the local youth skills
training program; and

(6) any other implementation or coordination activity that the commissioner may direct
or permit the local partnership to perform.

deleted text begin (b) deleted text end new text begin (c) new text end Grant awards may not be used to directly or indirectly pay the wages of a student
learner.

Sec. 2.

Minnesota Statutes 2016, section 326B.106, subdivision 9, is amended to read:

Subd. 9.

Accessibility.

(a) Public buildings. The code must deleted text begin provide for making deleted text end new text begin require
new new text end public buildings deleted text begin constructed or remodeled after July 1, 1963 deleted text end , new text begin and existing public
buildings when remodeled, to be new text end accessible to and usable by persons with disabilities deleted text begin ,
although this does not require the remodeling of public buildings solely to provide
accessibility and usability to persons with disabilities when remodeling would not otherwise
be undertaken deleted text end .

(b) Leased space. No agency of the state may lease space for agency operations in a
non-state-owned building unless the building satisfies the requirements of the State Building
Code for accessibility by persons with disabilities, or is eligible to display the state symbol
of accessibility. This limitation applies to leases of 30 days or more for space of at least
1,000 square feet.

(c) Meetings or conferences. Meetings or conferences for the public or for state
employees which are sponsored in whole or in part by a state agency must be held in
buildings that meet the State Building Code requirements relating to accessibility for persons
with disabilities. This subdivision does not apply to any classes, seminars, or training
programs offered by the Minnesota State Colleges and Universities or the University of
Minnesota. Meetings or conferences intended for specific individuals none of whom need
the accessibility features for persons with disabilities specified in the State Building Code
need not comply with this subdivision unless a person with a disability gives reasonable
advance notice of an intent to attend the meeting or conference. When sign language
interpreters will be provided, meetings or conference sites must be chosen which allow
participants who are deaf or hard-of-hearing to see the sign language interpreters clearly.

(d) Exemptions. The commissioner may grant an exemption from the requirements of
paragraphs (b) and (c) in advance if an agency has demonstrated that reasonable efforts
were made to secure facilities which complied with those requirements and if the selected
facilities are the best available for access for persons with disabilities. Exemptions shall be
granted using criteria developed by the commissioner in consultation with the Council on
Disability.

(e) Symbol indicating access. The wheelchair symbol adopted by Rehabilitation
International's Eleventh World Congress is the state symbol indicating buildings, facilities,
and grounds which are accessible to and usable by persons with disabilities. In the interests
of uniformity, this symbol is the sole symbol for display in or on all public or private
buildings, facilities, and grounds which qualify for its use. The secretary of state shall obtain
the symbol and keep it on file. No building, facility, or grounds may display the symbol
unless it is in compliance with the rules adopted by the commissioner under subdivision 1.
Before any rules are proposed for adoption under this paragraph, the commissioner shall
consult with the Council on Disability. Rules adopted under this paragraph must be enforced
in the same way as other accessibility rules of the State Building Code.

Sec. 3.

Minnesota Statutes 2016, section 326B.815, subdivision 1, is amended to read:

Subdivision 1.

Fees.

(a) For the purposes of calculating fees under section 326B.092,
an initial or renewed residential contractor, residential remodeler, or residential roofer license
is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured
home installers under section 327B.041 is deleted text begin $300 deleted text end new text begin $180 new text end for a three-year period.

(b) All initial and renewal licenses, except for manufactured home installer licenses,
shall be effective for two years and shall expire on March 31 of the year after the year in
which the application is made.

(c) The commissioner shall in a manner determined by the commissioner, without the
need for any rulemaking under chapter 14, phase in the renewal of residential contractor,
residential remodeler, and residential roofer licenses from one year to two years. By June
30, 2011, all renewed residential contractor, residential remodeler, and residential roofer
licenses shall be two-year licenses.

Sec. 4.

Minnesota Statutes 2016, section 327B.041, is amended to read:

327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and
the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements
of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education
requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured
home installers shall be satisfied by successful completion of a written examination
administered and developed specifically for the examination of manufactured home installers.
The examination must be administered and developed by the commissioner. The
commissioner and the state building official shall seek advice on the grading, monitoring,
and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not
charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt
from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply;
and

(6) manufactured home installers are not subject to the contractor recovery fund in
section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a
manufactured home installer for any individual who holds an unexpired license or certificate
issued by any other state or other United States jurisdiction if the licensing requirements of
that jurisdiction meet or exceed the corresponding licensing requirements of the department
and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. deleted text begin For the
purposes of calculating fees under section 326B.092, licensure as a manufactured home
installer is a business license.
deleted text end

Sec. 5.

Laws 2017, chapter 94, article 1, section 4, subdivision 5, is amended to read:

Subd. 5. General Support

6,239,000

6,539,000

Appropriations by Fund
Workforce Development Fund	200,000	500,000
Workers' Compensation	6,039,000	6,039,000

(a) Except as provided in paragraphs (b) and
(c), this appropriation is from the workers'
compensation fund.

(b) $200,000 in fiscal year 2018 is from the
workforce development fund for the
commissioner of labor and industry to convene
and collaborate with stakeholders as provided
under Minnesota Statutes, section 175.46,
subdivision 3, and to develop youth skills
training competencies for approved
occupations. This is a onetime appropriation.

(c) $500,000 in fiscal year 2019 is from the
workforce development fund to administer the
youth skills training program under Minnesota
Statutes, section 175.46. The commissioner
shall award up to five grants each year to local
partnerships located throughout the state, not
to exceed $100,000 per local partnership grant.
The commissioner may use deleted text begin a portion deleted text end new text begin up to
five percent new text end of this appropriation for
administration of the grant program. The base
amount for this program is deleted text begin $500,000 deleted text end new text begin
$1,000,000 new text end each year beginning in fiscal year
2020.

ARTICLE 4

WORKERS' COMPENSATION

Section 1.

Minnesota Statutes 2017 Supplement, section 15A.083, subdivision 7, is
amended to read:

Subd. 7.

Workers' Compensation Court of Appeals and compensation judges.

Salaries of judges of the Workers' Compensation Court of Appeals are deleted text begin 98.52 deleted text end new text begin 105 new text end percent
of the salary for deleted text begin district Court deleted text end new text begin workers' compensation new text end judges new text begin at the Office of Administrative
Hearings new text end . The salary of the chief judge of the Workers' Compensation Court of Appeals is
deleted text begin 98.52 deleted text end new text begin 107 new text end percent of the salary for deleted text begin a chief district Court judge deleted text end new text begin workers' compensation judges
at the Office of Administrative Hearings new text end . Salaries of compensation judges are 98.52 percent
of the salary of district court judges.

Sec. 2.

Minnesota Statutes 2016, section 175A.05, is amended to read:

175A.05 QUORUM.

new text begin Subdivision 1. new text end

new text begin Judges' quorum. new text end

A majority of the judges of the Workers' Compensation
Court of Appeals shall constitute a quorum for the exercise of the powers conferred and the
duties imposed on the Workers' Compensation Court of Appeals except that all appeals
shall be heard by no more than a panel of three of the five judges unless the case appealed
is determined to be of exceptional importance by the chief judge prior to assignment of the
case to a panel, or by a three-fifths vote of the judges prior to assignment of the case to a
panel or after the case has been considered by the panel but prior to the service and filing
of the decision.

new text begin Subd. 2. new text end

new text begin Vacancy. new text end

A vacancy shall not impair the ability of the remaining judges of the
Workers' Compensation Court of Appeals to exercise all the powers and perform all of the
duties of the Workers' Compensation Court of Appeals.

new text begin Subd. 3. new text end

new text begin Retired judges. new text end

new text begin If the number of Workers' Compensation Court of Appeals
judges available to hear a case is insufficient to constitute a quorum, the chief judge of the
Workers' Compensation Court of Appeals may, with the retired judge's consent, assign a
judge who is retired from the Workers' Compensation Court of Appeals or the Office of
Administrative Hearings to hear any case properly assigned to a judge of the Workers'
Compensation Court of Appeals. The retired judge assigned to the case may act on it with
the full powers of the judge of the Workers' Compensation Court of Appeals. A retired
judge performing this service shall receive pay and expenses in the amount and manner
provided by law for judges serving on the court, less the amount of retirement pay the judge
is receiving under chapter 352 or 490.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

Sec. 3.

Minnesota Statutes 2016, section 176.231, subdivision 9, is amended to read:

Subd. 9.

Uses deleted text begin which deleted text end new text begin that new text end may be made of reports.

new text begin (a) new text end Reports filed with the
commissioner under this section may be used in hearings held under this chapter, and for
the purpose of state investigations and for statistics. These reports are available to the
Department of Revenue for use in enforcing Minnesota income tax and property tax refund
laws, and the information shall be protected as provided in chapter 270B.

new text begin (b) new text end The division or Office of Administrative Hearings or Workers' Compensation Court
of Appeals may permit the examination of its file by the employer, insurer, employee, or
dependent of a deceased employee or any person who furnishes deleted text begin written deleted text end new text begin signed new text end authorization
to do so from the employer, insurer, employee, or dependent of a deceased employee.
Reports filed under this section and other information the commissioner has regarding
injuries or deaths shall be made available to the Workers' Compensation Reinsurance
Association for use by the association in carrying out its responsibilities under chapter 79.

new text begin (c) The division may provide the worker identification number assigned under section
176.275, subdivision 1, without a written authorization required under paragraph (b) to an:
new text end

new text begin (1) attorney who represents one of the persons described in paragraph (b);
new text end

new text begin (2) attorney who represents an intervenor or potential intervenor under section 176.361;
new text end

new text begin (3) intervenor; or
new text end

new text begin (4) employee's assigned qualified rehabilitation consultant under section 176.102.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

Sec. 4.

new text begin [176.2751] COORDINATION OF THE OFFICE OF ADMINISTRATIVE
HEARINGS' CASE MANAGEMENT SYSTEM AND THE WORKERS'
COMPENSATION IMAGING SYSTEM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the definitions in this
subdivision apply unless otherwise specified.
new text end

new text begin (b) "Commissioner" means the commissioner of labor and industry.
new text end

new text begin (c) "Department" means the Department of Labor and Industry.
new text end

new text begin (d) "Document" includes all data, whether in electronic or paper format, that is filed
with or issued by the office or department related to a claim-specific dispute resolution
proceeding under this section.
new text end

new text begin (e) "Office" means the Office of Administrative Hearings.
new text end

new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin This section governs coordination of the office's case management
system and the workers' compensation imaging system pending completion of the workers'
compensation modernization program. This section prevails over any conflicting provision
in this chapter, Laws 1998, chapter 366, or corresponding rules.
new text end

new text begin Subd. 3. new text end

new text begin Documents that must be filed with the office. new text end

new text begin Except as provided in
subdivision 4 and section 176.421, all documents that require action by the office under
this chapter must be filed, electronically or in paper format, with the office as required by
the chief administrative law judge. Filing a document that initiates or is filed in preparation
for a proceeding at the office satisfies any requirement under this chapter that the document
must be filed with the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Documents that must be filed with the commissioner. new text end

new text begin (a) The following
documents must be filed directly with the commissioner in the format and manner prescribed
by the commissioner:
new text end

new text begin (1) all requests for an administrative conference under section 176.106, regardless of
the amount in dispute;
new text end

new text begin (2) a motion to intervene in an administrative conference that is pending at the department;
new text end

new text begin (3) any other document related to an administrative conference that is pending at the
department;
new text end

new text begin (4) an objection to a penalty assessed by the commissioner or department;
new text end

new text begin (5) requests for medical and rehabilitation dispute certification under section 176.081,
subdivision 1, paragraph (c), including related documents; and
new text end

new text begin (6) except as provided in this subdivision or subdivision 3, any other document required
to be filed with the commissioner.
new text end

new text begin (b) The filing requirement in paragraph (a), clause (1), makes no changes to the
jurisdictional provisions in section 176.106. A claim petition that contains only medical or
rehabilitation issues, unless primary liability is disputed, is considered to be a request for
an administrative conference and must be filed with the commissioner.
new text end

new text begin (c) The commissioner must refer a timely, unresolved objection to a penalty under
paragraph (a), clause (4), to the office within 60 calendar days.
new text end

new text begin Subd. 5. new text end

new text begin Form revision. new text end

new text begin The commissioner must revise dispute resolution forms, in
consultation with the chief administrative law judge, to reflect the filing requirements in
this section.
new text end

new text begin Subd. 6. new text end

new text begin Data privacy. new text end

new text begin (a) All documents filed with or issued by the department or
office under this chapter are private data on individuals and nonpublic data pursuant to
chapter 13, except that the documents are available to the following:
new text end

new text begin (1) the office;
new text end

new text begin (2) the department;
new text end

new text begin (3) the employer;
new text end

new text begin (4) the insurer;
new text end

new text begin (5) the employee;
new text end

new text begin (6) the dependent of a deceased employee;
new text end

new text begin (7) an intervenor in the dispute;
new text end

new text begin (8) the attorney to a party in the dispute;
new text end

new text begin (9) a person who furnishes written authorization from the employer, insurer, employee,
or dependent of a deceased employee; and
new text end

new text begin (10) a person, agency, or other entity allowed access to the documents under this chapter
or other law.
new text end

new text begin (b) The office and department may post notice of scheduled proceedings on the agencies'
Web sites and at their principal places of business in any manner that protects the employee's
identifying information.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

ARTICLE 5

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; POLICY

Section 1.

Minnesota Statutes 2016, section 268.035, subdivision 12, is amended to read:

Subd. 12.

Covered employment.

(a) "Covered employment" means deleted text begin the following unless
excluded as "noncovered employment" under subdivision 20:
deleted text end

deleted text begin (1) deleted text end an employee's entire employment during the calendar quarter if:

deleted text begin (i) deleted text end new text begin (1) 50 percent or more of new text end the employment during the quarter is performed deleted text begin primarily deleted text end
in Minnesota;

deleted text begin (ii) deleted text end new text begin (2) 50 percent or more of new text end the employment during the quarter is not performed
deleted text begin primarily deleted text end in Minnesota or any other state new text begin , or Canada, new text end but some of the employment is
performed in Minnesota and the deleted text begin base of operations or the place from which the employment
is directed or controlled is in Minnesota; or
deleted text end

deleted text begin (iii) the employment during the quarter is not performed primarily in Minnesota or any
other state and the base of operations or place from which the employment is directed or
controlled is not in any state where part of the employment is performed, but the deleted text end employee's
residence is in Minnesota new text begin during 50 percent or more of the calendar quarter new text end ;

deleted text begin (2) an employee's entire employment during the calendar quarter performed within the
United States or Canada, if:
deleted text end

deleted text begin (i) the employment is not covered employment under the unemployment insurance
program of any other state, federal law, or the law of Canada; and
deleted text end

deleted text begin (ii) the place from which the employment is directed or controlled is in Minnesota;
deleted text end

(3) the employment during the deleted text begin calendar deleted text end quarter deleted text begin , deleted text end new text begin is new text end performed deleted text begin entirely deleted text end outside the United
States and Canada, by an employee who is a United States citizen in the employ of an
American employer new text begin , new text end if the employer's principal place of business in the United States is
located in Minnesota. new text begin For the purposes of this clause, new text end an "American employer deleted text begin , deleted text end " deleted text begin for the
purposes of this clause, means a corporation organized under the laws of any state, an
individual who is a resident of the United States, or a partnership if two-thirds or more of
the partners are residents of the United States, or a trust, if all of the trustees are residents
of the United States deleted text end new text begin is as defined under the Federal Unemployment Tax Act, United States
Code title 26, chapter 23, section 3306, subsection (j)(3) new text end ; and

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

(b) "Covered employment" includes covered agricultural employment under subdivision
11.

(c) For the purposes of section 268.095, "covered employment" includes employment
covered under an unemployment insurance program:

(1) of any other state; deleted text begin or
deleted text end

(2) established by an act of Congress deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) the law of Canada.
new text end

new text begin (d) The percentage of employment performed under paragraph (a) is determined by the
amount of hours worked.
new text end

new text begin (e) Covered employment does not include any employment defined as "noncovered
employment" under subdivision 20.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 268.035, subdivision 20, is amended
to read:

Subd. 20.

Noncovered employment.

"Noncovered employment" means:

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

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

(3) employment for a foreign government;

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

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

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

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

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

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

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

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

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

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

(14) employment for Minnesota that is a major policy-making or advisory position in
the unclassified service;

(15) employment for Minnesota in an unclassified position established under section
43A.08, subdivision 1a;

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

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

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

(18) employment of an individual by a son, daughter, or spouse, and employment of a
child under the age of 18 by the child's father or mother;

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

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

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

new text begin (22) employment of a foreign college or university student who works on a seasonal or
temporary basis under the J-1 visa summer work travel program described in Code of Federal
Regulations, title 22, section 62.32;
new text end

deleted text begin (22) deleted text end new text begin (23) new text end employment of university, college, or professional school students in an
internship or other training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;

deleted text begin (23) deleted text end new text begin (24) new text end employment for a hospital by a patient of the hospital. "Hospital" means an
institution that has been licensed by the Department of Health as a hospital;

deleted text begin (24) deleted text end new text begin (25) new text end employment as a student nurse for a hospital or a nurses' training school by
an individual who is enrolled and is regularly attending classes in an accredited nurses'
training school;

deleted text begin (25) deleted text end new text begin (26) new text end employment as an intern for a hospital by an individual who has completed a
four-year course in an accredited medical school;

deleted text begin (26) deleted text end new text begin (27) new text end employment as an insurance salesperson, by other than a corporate officer, if
all the wages from the employment is solely by way of commission. The word "insurance"
includes an annuity and an optional annuity;

deleted text begin (27) deleted text end new text begin (28) new text end employment as an officer of a township mutual insurance company or farmer's
mutual insurance company under chapter 67A;

deleted text begin (28) deleted text end new text begin (29) new text end employment of a corporate officer, if the officer directly or indirectly, including
through a subsidiary or holding company, owns 25 percent or more of the employer
corporation, and employment of a member of a limited liability company, if the member
directly or indirectly, including through a subsidiary or holding company, owns 25 percent
or more of the employer limited liability company;

deleted text begin (29) deleted text end new text begin (30) new text end employment as a real estate salesperson, other than a corporate officer, if all
the wages from the employment is solely by way of commission;

deleted text begin (30) deleted text end new text begin (31) new text end employment as a direct seller as defined in United States Code, title 26, section
3508;

deleted text begin (31) deleted text end new text begin (32) new text end employment of an individual under the age of 18 in the delivery or distribution
of newspapers or shopping news, not including delivery or distribution to any point for
subsequent delivery or distribution;

deleted text begin (32) deleted text end new text begin (33) new text end casual employment performed for an individual, other than domestic
employment under clause (17), that does not promote or advance that employer's trade or
business;

deleted text begin (33) deleted text end new text begin (34) new text end employment in "agricultural employment" unless it is "covered agricultural
employment" under subdivision 11; or

deleted text begin (34) deleted text end new text begin (35) new text end if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period is covered employment; but if during
more than one-half of any pay period the employment was noncovered employment, then
all of the employment for the pay period is noncovered employment. "Pay period" means
a period of not more than a calendar month for which a payment or compensation is ordinarily
made to the employee by the employer.

Sec. 3.

Minnesota Statutes 2016, section 268.051, subdivision 2a, is amended to read:

Subd. 2a.

Unemployment insurance tax deleted text begin limits deleted text end new text begin reduction new text end .

(a) If the balance in the trust
fund on December 31 of any calendar year is four percent or more above the amount equal
to an average high cost multiple of 1.0, future unemployment taxes payable must be reduced
by all amounts above 1.0. The amount of tax reduction for any taxpaying employer is the
same percentage of the total amount above 1.0 as the percentage of taxes paid by the
employer during the calendar year is of the total amount of taxes that were paid by all
deleted text begin nonmaximum experience rated deleted text end employers during the year new text begin except taxes paid by employers
assigned a tax rate equal to the maximum experience rating plus the applicable base tax
rate new text end .

(b) For purposes of this subdivision, "average high cost multiple" has the meaning given
in Code of Federal Regulations, title 20, section 606.3, as amended through December 31,
2015. An amount equal to an average high cost multiple of 1.0 is a federal measure of
adequate reserves in relation to the state's current economy. The commissioner must calculate
and publish, as soon as possible following December 31 of any calendar year, the trust fund
balance on December 31 along with the amount an average high cost multiple of 1.0 equals.
Actual wages paid must be used in the calculation and estimates may not be used.

(c) new text begin The unemployment tax reduction under new text end this subdivision does not apply to employers
that were deleted text begin at deleted text end new text begin assigned a tax rate equal to new text end the maximum experience rating new text begin plus the applicable
base tax rate new text end for the year deleted text begin , nor to high experience rating industry employers under subdivision
5, paragraph (b) deleted text end . Computations under paragraph (a) are not subject to the rounding
requirement of section 268.034. The refund provisions of section 268.057, subdivision 7,
do not apply.

(d) The unemployment tax reduction under this subdivision applies to taxes deleted text begin paid deleted text end new text begin payable new text end
between March 1 and December 15 of the year following the December 31 computation
under paragraph (a).

(e) deleted text begin The amount equal to the average high cost multiple of 1.0 on December 31, 2012,
must be used for the calculation under paragraph (a) but only for the calculation made on
December 31, 2015. Notwithstanding paragraph (d), the tax reduction resulting from the
application of this paragraph applies to unemployment taxes paid between July 1, 2016,
and June 30, 2017. deleted text end new text begin If there was an experience rating history transfer under subdivision 4,
the successor employer must receive that portion of the predecessor employer's tax reduction
equal to that portion of the experience rating history transferred. The predecessor employer
retains that portion of tax reduction not transferred to the successor. This paragraph applies
to that portion of the tax reduction that remains unused at the time notice of acquisition is
provided under subdivision 4, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

ARTICLE 6

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; INTEREST

Section 1.

Minnesota Statutes 2016, section 268.057, subdivision 5, is amended to read:

Subd. 5.

Interest on amounts past due.

If any amounts due from an employer under
this chapter or section 116L.20, except late fees under section 268.044, are not received on
the date due deleted text begin the unpaid balance bears deleted text end new text begin the commissioner must assess interest on any amount
that remains unpaid. new text end Interest new text begin is assessed new text end at the rate of one percent per month or any part of
a month. new text begin Interest is not assessed on unpaid interest. new text end Interest collected under this subdivision
is credited to the contingent account.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2019.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 268.18, subdivision 2b, is amended
to read:

Subd. 2b.

Interest.

On any unemployment benefits obtained by misrepresentation, and
any penalty amounts assessed under subdivision 2, the commissioner must assess interest
deleted text begin at the rate of one percent per month deleted text end on any amount that remains unpaid beginning 30 calendar
days after the date of a determination of overpayment penalty. new text begin Interest is assessed at the
rate of one percent per month or any part of a month. new text end A determination of overpayment
penalty must state that interest will be assessed. Interest is new text begin not new text end assessed deleted text begin in the same manner
as on employer debt under section 268.057, subdivision 5 deleted text end new text begin on unpaid interest new text end . Interest
deleted text begin payments deleted text end collected under this subdivision deleted text begin are deleted text end new text begin is new text end credited to the trust fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2019.
new text end

ARTICLE 7

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; BASE PERIODS

Section 1.

Minnesota Statutes 2016, section 268.035, subdivision 4, is amended to read:

Subd. 4.

Base period.

(a) "Base period," unless otherwise provided in this subdivision,
means the most recent four completed calendar quarters before the effective date of an
applicant's application for unemployment benefits if the application has an effective date
occurring after the month following the most recent completed calendar quarter. The base
period under this paragraph is as follows:

	If the application for unemployment benefits is effective on or between these dates:		The base period is the prior:
	February 1 - March 31		January 1 - December 31
	May 1 - June 30		April 1 - March 31
	August 1 - September 30		July 1 - June 30
	November 1 - December 31		October 1 - September 30

(b) If an application for unemployment benefits has an effective date that is during the
month following the most recent completed calendar quarter, then the base period is the
first four of the most recent five completed calendar quarters before the effective date of
an applicant's application for unemployment benefits. The base period under this paragraph
is as follows:

	If the application for unemployment benefits is effective on or between these dates:		The base period is the prior:
	January 1 - January 31		October 1 - September 30
	April 1 - April 30		January 1 - December 31
	July 1 - July 31		April 1 - March 31
	October 1 - October 31		July 1 - June 30

(c) Regardless of paragraph (a), a base period of the first four of the most recent five
completed calendar quarters must be used if the applicant would have more wage credits
under that base period than under a base period of the four most recent completed calendar
quarters.

deleted text begin (d) If the applicant under paragraph (b) has insufficient wage credits to establish a benefit
account, then a base period of the most recent four completed calendar quarters before the
effective date of the applicant's application for unemployment benefits must be used.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end If the applicant has insufficient wage credits to establish a benefit account under
a base period of the four most recent completed calendar quarters, or a base period of the
first four of the most recent five completed calendar quarters, but during either base period
the applicant received workers' compensation for temporary disability under chapter 176
or a similar federal law or similar law of another state, or if the applicant whose own serious
illness caused a loss of work for which the applicant received compensation for loss of
wages from some other source, the applicant may request a base period as follows:

(1) if an applicant was compensated for a loss of work of seven to 13 weeks deleted text begin , deleted text end new text begin during a
base period referred to in paragraph (a) or (b), then new text end the base period is the first four of the
most recent six completed calendar quarters before the effective date of the application for
unemployment benefits;

(2) if an applicant was compensated for a loss of work of 14 to 26 weeks deleted text begin , deleted text end new text begin during a base
period referred to in paragraph (a) or (b), then new text end the base period is the first four of the most
recent seven completed calendar quarters before the effective date of the application for
unemployment benefits;

(3) if an applicant was compensated for a loss of work of 27 to 39 weeks deleted text begin , deleted text end new text begin during a base
period referred to in paragraph (a) or (b), then new text end the base period is the first four of the most
recent eight completed calendar quarters before the effective date of the application for
unemployment benefits; and

(4) if an applicant was compensated for a loss of work of 40 to 52 weeks deleted text begin , deleted text end new text begin during a base
period referred to in paragraph (a) or (b), then new text end the base period is the first four of the most
recent nine completed calendar quarters before the effective date of the application for
unemployment benefits.

deleted text begin (f) deleted text end new text begin (e) new text end No base period under this subdivision may include wage credits upon which a
prior benefit account was established.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 268.07, subdivision 1, is amended
to read:

Subdivision 1.

Application for unemployment benefits; determination of benefit
account.

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

(b) The commissioner must examine each application for unemployment benefits to
determine the base period and the benefit year, and based upon all the covered employment
in the base period the commissioner must determine the weekly unemployment benefit
amount available, if any, and the maximum amount of unemployment benefits available,
if any. The determination, which is a document separate and distinct from a document titled
a determination of eligibility or determination of ineligibility issued under section 268.101,
must be titled determination of benefit account. A determination of benefit account must
be sent to the applicant and all base period employers, by mail or electronic transmission.

(c) If a base period employer did not provide wage detail information for the applicant
as required under section 268.044, deleted text begin or provided erroneous information, or wage detail is not
yet due and the applicant is using a base period under section 268.035, subdivision 4,
paragraph (d), deleted text end the commissioner may accept an applicant certification of wage credits, based
upon the applicant's records, and issue a determination of benefit account.

deleted text begin (d) An employer must provide wage detail information on an applicant within five
calendar days of request by the commissioner, in a manner and format requested, when:
deleted text end

deleted text begin (1) the applicant is using a base period under section 268.035, subdivision 4, paragraph
(d); and
deleted text end

deleted text begin (2) wage detail under section 268.044 is not yet required to have been filed by the
employer.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end The commissioner may, at any time within 24 months from the establishment of
a benefit account, reconsider any determination of benefit account and make an amended
determination if the commissioner finds that the wage credits listed in the determination
were incorrect for any reason. An amended determination of benefit account must be
promptly sent to the applicant and all base period employers, by mail or electronic
transmission. This subdivision does not apply to documents titled determinations of eligibility
or determinations of ineligibility issued under section 268.101.

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

ARTICLE 8

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; HOUSEKEEPING

Section 1.

Minnesota Statutes 2017 Supplement, section 268.035, subdivision 15, is
amended to read:

Subd. 15.

Employment.

(a) "Employment" means service performed by:

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

(2) an officer of a corporation;

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

new text begin (4) an individual who is an employee under the Federal Insurance Contributions Act,
United States Code, title 26, chapter 21, sections 3121 (d)(3)(A) and 3121 (d)(3)(D); or
new text end

deleted text begin (4) deleted text end new text begin (5) new text end product demonstrators in retail stores or other locations to aid in the sale of
products. The person that pays the wages is the employer.

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

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

Sec. 2.

Minnesota Statutes 2016, section 268.044, subdivision 2, is amended to read:

Subd. 2.

Failure to timely file report; late fees.

(a) Any employer that fails to submit
the quarterly wage detail report when due must pay a late fee of $10 per employee, computed
based upon the highest of:

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

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

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

The late fee is canceled if the wage detail report is received within 30 calendar days
after a demand for the report is sent to the employer by mail or electronic transmission. A
late fee assessed an employer may not be canceled more than twice each 12 months. The
amount of the late fee assessed may not be less than $250.

(b) If the wage detail report is not received in a manner and format prescribed by the
commissioner within 30 calendar days after demand is sent under paragraph (a), the late
fee assessed under paragraph (a) doubles and a renewed demand notice and notice of the
increased late fee will be sent to the employer by mail or electronic transmission.

(c) Late fees due under this subdivision may be canceled, in whole or in part, under
section deleted text begin 268.066 where good cause for late submission is found by the commissioner deleted text end new text begin 268.067 new text end .

Sec. 3.

Minnesota Statutes 2016, section 268.047, subdivision 3, is amended to read:

Subd. 3.

Exceptions for taxpaying employers.

Unemployment benefits paid will not
be used in computing the future tax rate of a taxpaying base period employer when:

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

(2) the applicant quit the employment, unless it was determined under section 268.095,
to have been because of a good reason caused by the employer or because the employer
notified the applicant of discharge within 30 calendar days. This exception applies deleted text begin only deleted text end to
unemployment benefits paid for periods after the applicant's quitting the employment new text begin and,
if the applicant is rehired by the employer, continues only until the beginning of the week
the applicant is rehired new text end ; or

(3) the employer discharged the applicant from employment because of employment
misconduct as determined under section 268.095. This exception applies deleted text begin only deleted text end to
unemployment benefits paid for periods after the applicant's discharge from employment new text begin
and, if the applicant is rehired by the employer, continues only until the beginning of the
week the applicant is rehired new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2019.
new text end

Sec. 4.

Minnesota Statutes 2016, section 268.059, is amended to read:

268.059 GARNISHMENT FOR DELINQUENT TAXES AND UNEMPLOYMENT
BENEFIT OVERPAYMENTS.

Subdivision 1.

deleted text begin Notice deleted text end new text begin Authority new text end .

deleted text begin The commissioner may give notice to any employer
that an employee owes any amounts due under this chapter or section 116L.20, and that the
obligation should be withheld from the employee's wages. The commissioner may proceed
only if the amount due is uncontested or if the time for any appeal has expired. deleted text end new text begin The
commissioner may garnish an employee's wages to collect amounts due under this chapter
or section 116L.20, as set forth in this section. Chapter 571 does not apply, except as
referenced in this section.
new text end

new text begin Subd. 1a. new text end

new text begin Notice. new text end

The commissioner may not proceed new text begin with a garnishment new text end until 30
calendar days after sending to the debtor employee, by mail or electronic transmission, a
notice of intent to garnish wages and exemption notice. That notice must deleted text begin list deleted text end new text begin include new text end :

(1) the amount due from the debtor;

(2) demand for immediate payment; and

(3) the intention to serve a garnishment notice on the debtor's employer.

The notice expires 180 calendar days after it has been sent to the debtor provided that
the notice may be renewed by sending a new notice that is in accordance with this section.
The renewed notice has the effect of reinstating the priority of the original notice. deleted text begin The
exemption notice must be in substantially the same form as in section 571.72. deleted text end The new text begin exemption
new text end notice must inform the debtor of the right to claim exemptions contained in section 550.37,
subdivision 14. deleted text begin If no claim of exemption is received by the commissioner within 30 calendar
days after sending of the notice, the commissioner may proceed with the garnishment. The
notice to the debtor's employer may be served by mail or electronic transmission and must
be in substantially the same form as in section 571.75.
deleted text end

Subd. 2.

Employer action.

(a) new text begin Thirty calendar days after sending the notice of intent to
garnish, the commissioner may send to the debtor's employer, by mail or electronic
transmission, a notice of garnishment, including a worksheet for determining the amount
to be withheld from wages each pay period. The amount to be withheld from wages is
subject to the limitations in section 571.922. new text end Upon receipt of the garnishment notice, the
employer must withhold from the deleted text begin earnings deleted text end new text begin wages new text end due or to become due to the employee,
the amount deleted text begin shown on the notice plus accrued interest, subject to section 571.922 deleted text end new text begin determined
by the employer plus accrued interest new text end . The employer must continue to withhold each pay
period the amount deleted text begin shown on the notice deleted text end new text begin determined by the employer new text end plus accrued interest
until the garnishment notice is released by the commissioner. Upon receipt of notice by the
employer, the claim of the commissioner has priority over any subsequent garnishments or
wage assignments. The commissioner may deleted text begin arrange between the employer and employee
for withholding a portion of the total amount due the employee each pay period, deleted text end new text begin agree to
accept a withholding amount that is less than the amount determined by the employer on
the worksheet new text end until the total amount deleted text begin shown on the notice deleted text end new text begin due new text end plus accrued interest has been
withheld.

new text begin (b) new text end deleted text begin The "earnings due" any employee deleted text end new text begin For the purposes of this section, "wages" new text end is as
defined in section deleted text begin 571.921 deleted text end new text begin 268.035, subdivision 29 new text end .

deleted text begin (b) deleted text end new text begin (c) new text end The maximum garnishment allowed for any one pay period must be decreased
by any amounts payable under any other garnishment action served before the garnishment
notice, and any amounts covered by any irrevocable and previously effective assignment
of wages deleted text begin ; deleted text end new text begin . new text end The employer must give notice to the commissioner of the amounts and the facts
relating to the new text begin other garnishment or new text end assignment deleted text begin within ten calendar days after the service
of the garnishment notice deleted text end on the deleted text begin form deleted text end new text begin worksheet new text end provided by the commissioner.

deleted text begin (c) deleted text end new text begin (d) new text end Within ten calendar days after the expiration of the pay period, the employer must
remit to the commissioner, on a form and in the manner prescribed by the commissioner,
the amount withheld during each pay period.

Subd. 3.

Discharge or discipline prohibited.

(a) If the employee ceases to be employed
by the employer before the full amount deleted text begin set forth on the garnishment notice deleted text end new text begin due new text end plus accrued
interest has been withheld, the employer must immediately notify the commissioner in
writing or by electronic transmission, as prescribed by the commissioner, of the termination
date of the employee and the total amount withheld. No employer may discharge or discipline
any employee because the commissioner has proceeded under this section. If an employer
discharges an employee in violation of this section, the employee has the same remedy as
provided in section 571.927, subdivision 2.

(b) This section applies if the employer is the state of Minnesota or any political
subdivision.

(c) The commissioner must refund to the employee any excess amounts withheld from
the employee.

(d) An employer that fails or refuses to comply with this section is jointly and severally
liable for the total amount due from the employee. Any amount due from the employer
under this paragraph may be collected in the same manner as any other amounts due from
an employer under this chapter.

Sec. 5.

Minnesota Statutes 2016, section 268.085, subdivision 3, is amended to read:

Subd. 3.

new text begin Vacation and sick new text end payments that delay unemployment benefits.

(a) An
applicant is not eligible to receive unemployment benefits for any week the applicant is
receiving, has received, or will receive vacation pay, sick pay, or personal time off pay, also
known as "PTO."

This paragraph deleted text begin only applies upon temporary, indefinite, or seasonal separation and deleted text end does
not apply:

(1) upon a permanent separation from employment; or

(2) to payments from a vacation fund administered by a union or a third party not under
the control of the employer.

Payments under this deleted text begin paragraph deleted text end new text begin subdivision new text end are applied to the period immediately
following the deleted text begin temporary, indefinite, or seasonal separation. deleted text end new text begin later of the date of separation
from employment or the date the applicant first becomes aware that the employer will be
making a payment. The date the payment is actually made or received, or that an applicant
must agree to a release of claims, does not affect the application of this paragraph.
new text end

new text begin (b) This subdivision applies to all the weeks of payment. The weeks of payment is
determined as follows:
new text end

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

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

new text begin The "last level of regular weekly pay" includes commissions, bonuses, and overtime
pay if that is part of the applicant's ongoing regular compensation.
new text end

new text begin (c) Under this subdivision, if the payment with respect to a week is equal to or more
than the applicant's weekly unemployment benefit amount, the applicant is ineligible for
benefits for that week. If the payment with respect to a week is less than the applicant's
weekly unemployment benefit amount, unemployment benefits are reduced by the amount
of the payment.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end An applicant is not eligible to receive unemployment benefits for any week the
applicant is receiving, has received, or will receive severance pay, bonus pay, or any other
payments paid by an employer because of, upon, or after separation from employment.

This paragraph only applies if the payment is:

(1) considered wages under section 268.035, subdivision 29; or

(2) subject to the Federal Insurance Contributions Act (FICA) tax imposed to fund Social
Security and Medicare.

Payments under this paragraph are applied to the period immediately following the later
of the date of separation from employment or the date the applicant first becomes aware
that the employer will be making a payment. The date the payment is actually made or
received, or that an applicant must agree to a release of claims, does not affect the application
of this paragraph.

This paragraph does not apply to earnings under subdivision 5, back pay under
subdivision 6, or vacation pay, sick pay, or personal time off pay under paragraph (a).

new text begin (e) Paragraph (a) applies to all the weeks of payment. The weeks of payment is determined
in accordance with subdivision 3, paragraph (b).
new text end

new text begin (f) Under this subdivision, if the payment with respect to a week is equal to or more than
the applicant's weekly unemployment benefit amount, the applicant is ineligible for benefits
for that week. If the payment with respect to a week is less than the applicant's weekly
unemployment benefit amount, unemployment benefits are reduced by the amount of the
payment.
new text end

deleted text begin (c) deleted text end new text begin (g) new text end An applicant is not eligible to receive unemployment benefits for any week the
applicant is receiving, has received, will receive, or has applied for pension, retirement, or
annuity payments from any plan contributed to by a base period employer including the
United States government. The base period employer is considered to have contributed to
the plan if the contribution is excluded from the definition of wages under section 268.035,
subdivision 29. If the pension, retirement, or annuity payment is paid in a lump sum, an
applicant is not considered to have received a payment if:

(1) the applicant immediately deposits that payment in a qualified pension plan or
account; or

(2) that payment is an early distribution for which the applicant paid an early distribution
penalty under the Internal Revenue Code, United States Code, title 26, section 72(t)(1).

This paragraph does not apply to Social Security benefits under subdivision 4 or 4a.

deleted text begin (d) deleted text end new text begin (h) new text end This subdivision applies to all the weeks of payment. deleted text begin The number of weeks of
payment is determined as follows:
deleted text end

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

deleted text begin (2) deleted text end If the payment is made in a lump sum, that sum is divided by the applicant's last
level of regular weekly pay from the employer new text begin to determine the weeks of payment new text end .

For purposes of this deleted text begin paragraph deleted text end new text begin subdivision new text end , new text begin the new text end "last level of regular weekly pay" includes
commissions, bonuses, and overtime pay if that is part of the applicant's ongoing regular
compensation.

deleted text begin (e) deleted text end new text begin (i) new text end Under this subdivision, if the payment with respect to a week is equal to or more
than the applicant's weekly unemployment benefit amount, the applicant is ineligible for
benefits for that week. If the payment with respect to a week is less than the applicant's
weekly unemployment benefit amount, unemployment benefits are reduced by the amount
of the payment.

Sec. 6.

Minnesota Statutes 2016, section 268.085, subdivision 3a, is amended to read:

Subd. 3a.

Workers' compensation and disability insurance offset.

(a) An applicant
is not eligible to receive unemployment benefits for any week in which the applicant is
receiving or has received compensation for loss of wages equal to or in excess of the
applicant's weekly unemployment benefit amount under:

(1) the workers' compensation law of this state;

(2) the workers' compensation law of any other state or similar federal law; or

(3) any insurance or trust fund paid in whole or in part by an employer.

(b) This subdivision does not apply to an applicant who has a claim pending for loss of
wages under paragraph (a); however, before unemployment benefits may be paid when a
claim is pending, the issue of the applicant being available for suitable employment, as
required under subdivision 1, clause (4), deleted text begin is deleted text end new text begin must be new text end determined under section 268.101,
subdivision 2. If the applicant later receives compensation as a result of the pending claim,
the applicant is subject to deleted text begin the provisions of deleted text end paragraph (a) and the unemployment benefits
paid are deleted text begin subject to recoupment by the commissioner to the extent that the compensation
constitutes deleted text end overpaid unemployment benefits new text begin under section 268.18, subdivision 1 new text end .

(c) If the amount of compensation described under paragraph (a) for any week is less
than the applicant's weekly unemployment benefit amount, unemployment benefits requested
for that week are reduced by the amount of that compensation payment.

Sec. 7.

Minnesota Statutes 2017 Supplement, section 268.085, subdivision 13a, is amended
to read:

Subd. 13a.

Leave of absence.

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

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

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

(c) A leave of absence is a temporary stopping of work that has been approved by the
employer. A deleted text begin voluntary deleted text end leave of absence is not a quit deleted text begin and an involuntary leave of absence deleted text end
deleted text begin is not deleted text end new text begin or new text end a discharge from employment deleted text begin for purposes of deleted text end new text begin . new text end Section 268.095 new text begin does not apply to
a leave of absence new text end .

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

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

Sec. 8.

Minnesota Statutes 2017 Supplement, section 268.095, subdivision 6, is amended
to read:

Subd. 6.

Employment misconduct defined.

(a) Employment misconduct means any
intentional, negligent, or indifferent conduct, on the job or off the job new text begin , new text end that deleted text begin displays clearly:
deleted text end

deleted text begin (1) deleted text end new text begin is new text end a serious violation of the standards of behavior the employer has the right to
reasonably expect of the employee deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (2) a substantial lack of concern for the employment.
deleted text end

(b) Regardless of paragraph (a), the following is not employment misconduct:

(1) conduct that was a consequence of the applicant's mental illness or impairment;

(2) conduct that was a consequence of the applicant's inefficiency or inadvertence;

(3) simple unsatisfactory conduct;

(4) conduct an average reasonable employee would have engaged in under the
circumstances;

(5) conduct that was a consequence of the applicant's inability or incapacity;

(6) good faith errors in judgment if judgment was required;

(7) absence because of illness or injury of the applicant, with proper notice to the
employer;

(8) absence, with proper notice to the employer, in order to provide necessary care
because of the illness, injury, or disability of an immediate family member of the applicant;

(9) conduct that was a consequence of the applicant's chemical dependency, unless the
applicant was previously diagnosed chemically dependent or had treatment for chemical
dependency, and since that diagnosis or treatment has failed to make consistent efforts to
control the chemical dependency; or

(10) conduct that was a consequence of the applicant, or an immediate family member
of the applicant, being a victim of domestic abuse, sexual assault, or stalking. For the
purposes of this subdivision, "domestic abuse," "sexual assault," and "stalking" have the
meanings given them in subdivision 1.

(c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20,
169A.31, 169A.50 to 169A.53, or 171.177 that deleted text begin interferes with or deleted text end adversely affects the
employment is employment misconduct.

(d) If the conduct for which the applicant was discharged involved only a single incident,
that is an important fact that must be considered in deciding whether the conduct rises to
the level of employment misconduct under paragraph (a). This paragraph does not require
that a determination under section 268.101 or decision under section 268.105 contain a
specific acknowledgment or explanation that this paragraph was considered.

(e) The definition of employment misconduct provided by this subdivision is exclusive
and no other definition applies.

Sec. 9.

Minnesota Statutes 2016, section 268.095, subdivision 6a, is amended to read:

Subd. 6a.

Aggravated employment misconduct defined.

(a) deleted text begin For the purpose of this
section, "aggravated employment misconduct" means:
deleted text end

deleted text begin (1) deleted text end The commission of any act, on the job or off the job, that would amount to a gross
misdemeanor or felony new text begin is aggravated employment misconduct new text end if the act deleted text begin substantially
interfered with the employment or deleted text end had a significant adverse effect on the employment deleted text begin ; or deleted text end new text begin .
new text end

new text begin A criminal charge or conviction is not necessary to determine aggravated employment
misconduct under this paragraph. If an applicant is convicted of a gross misdemeanor or
felony, the applicant is presumed to have committed the act.
new text end

deleted text begin (2) deleted text end new text begin (b) new text end For an employee of a facility as defined in section 626.5572, aggravated
employment misconduct includes an act of patient or resident abuse, financial exploitation,
or recurring or serious neglect, as defined in section 626.5572 and applicable rules.

deleted text begin (b) If an applicant is convicted of a gross misdemeanor or felony for the same act for
which the applicant was discharged, it is aggravated employment misconduct if the act
substantially interfered with the employment or had a significant adverse effect on the
employment.
deleted text end

(c) The definition of aggravated employment misconduct provided by this subdivision
is exclusive and no other definition applies.

ARTICLE 9

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; TECHNICAL

Section 1.

Minnesota Statutes 2016, section 268.044, subdivision 3, is amended to read:

Subd. 3.

Missing or erroneous information.

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

(b) Any employer that submits the wage detail report, but fails to include an employee,
is subject to an administrative service fee equal to two percent of the total wages for each
employee for whom the information is completely missing.

(c) An administrative service fee under this subdivision must be canceled new text begin under section
268.067 new text end if the commissioner determines that the failure or error by the employer occurred
because of ignorance or inadvertence.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 268.046, subdivision 1, is amended
to read:

Subdivision 1.

Tax accounts assigned.

(a) Any person that contracts with a taxpaying
employer to have that person obtain the taxpaying employer's workforce and provide workers
to the taxpaying employer for a fee is, as of the effective date of the contract, assigned for
the duration of the contract the taxpaying employer's account under section 268.045. That
tax account must be maintained by the person separate and distinct from every other tax
account held by the person and identified in a manner prescribed by the commissioner. The
tax account is, for the duration of the contract, considered that person's account for all
purposes of this chapter. The workers obtained from the taxpaying employer and any other
workers provided by that person to the taxpaying employer, including officers of the
taxpaying employer as defined in section 268.035, subdivision 20, clause deleted text begin (28) deleted text end new text begin (29) new text end , whose
wages paid by the person are considered paid in covered employment under section 268.035,
subdivision 24, for the duration of the contract between the taxpaying employer and the
person, must, under section 268.044, be reported on the wage detail report under that tax
account, and that person must pay any taxes due at the tax rate computed for that account
under section 268.051, subdivision 2.

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

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

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

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

Sec. 3.

Minnesota Statutes 2016, section 268.051, subdivision 3, is amended to read:

Subd. 3.

Computation of a taxpaying employer's experience rating.

(a) On or before
each December 15, the commissioner must compute an experience rating for each taxpaying
employer who has deleted text begin been required to file deleted text end new text begin filed new text end wage detail reports for the deleted text begin 12 deleted text end new text begin four new text end calendar
deleted text begin months deleted text end new text begin quarters new text end ending on the prior June 30. The experience rating computed is applicable
for the following calendar year.

The experience rating is the ratio obtained by dividing 125 percent of the total
unemployment benefits required under section 268.047 to be used in computing the
employer's tax rate during the deleted text begin 48 deleted text end new text begin 16 new text end calendar deleted text begin months deleted text end new text begin quarters new text end ending on the prior June 30,
by the employer's total taxable payroll for that same period.

(b) The experience rating is computed to the nearest one-hundredth of a percent, to a
maximum of 8.90 percent.

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

Sec. 4.

Minnesota Statutes 2016, section 268.053, subdivision 1, is amended to read:

Subdivision 1.

Election.

(a) Any nonprofit organization that has employees in covered
employment must pay taxes on a quarterly basis in accordance with section 268.051 unless
it elects to make reimbursements to the trust fund the amount of unemployment benefits
charged to its reimbursable account under section 268.047.

The organization may elect to make reimbursements for a period of not less than 24
calendar months beginning with the date that the organization was determined to be an
employer with covered employment by filing a notice of election not later than 30 calendar
days after the date of the determination.

(b) Any nonprofit organization that makes an election will continue to be liable for
reimbursements until it files a notice terminating its election before the beginning of the
calendar quarter the termination is to be effective.

A nonprofit organization that has been making reimbursements that files a notice of
termination of election must be assigned the new employer tax rate under section 268.051,
subdivision 5, until it qualifies for an experience rating under section 268.051, subdivision
3.

(c) Any nonprofit organization that has been paying taxes may elect to make
reimbursements by filing a notice of election. The election is effective at the beginning of
the next calendar quarter. The election is not terminable by the organization for 24 calendar
months.

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

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

Sec. 5.

Minnesota Statutes 2016, section 268.066, is amended to read:

268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.

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

(b) The commissioner may cancel at any time as uncollectible any amount due, or any
portion of an amount due, from an employer under this chapter or section 116L.20, that (1)
are uncollectible due to death or bankruptcy, or (2) the Collection Division of the Department
of Revenue under section 16D.04 was unable to collect.

deleted text begin (c) The commissioner may cancel at any time any interest, penalties, or fees due from
an employer, or any portions due, if the commissioner determines that it is not in the public
interest to pursue collection of the amount due. This paragraph does not apply to
unemployment insurance taxes or reimbursements due.
deleted text end

Sec. 6.

Minnesota Statutes 2016, section 268.067, is amended to read:

268.067 COMPROMISE.

(a) The commissioner may compromise in whole or in part any action, determination,
or decision that affects only an employer and not an applicant. This paragraph applies if it
is determined by a court of law, or a confession of judgment, that an applicant, while
employed, wrongfully took from the employer $500 or more in money or property.

(b) The commissioner may at any time compromise any unemployment insurance tax
deleted text begin or deleted text end new text begin , new text end reimbursement new text begin , interest, penalty, fee, costs, or any other amount new text end due from an employer
under this chapter or section 116L.20.

(c) Any compromise involving an amount over $10,000 must be authorized by an attorney
licensed to practice law in Minnesota who is an employee of the department designated by
the commissioner for that purpose.

(d) Any compromise must be in the best interest of the state of Minnesota.

Sec. 7.

Minnesota Statutes 2016, section 268.069, subdivision 1, is amended to read:

Subdivision 1.

Requirements.

The commissioner must pay unemployment benefits
from the trust fund to an applicant who has met each of the following requirements:

(1) the applicant has filed an application for unemployment benefits and established a
benefit account in accordance with section 268.07;

(2) the applicant has not been held ineligible for unemployment benefits under section
268.095 because of a quit or discharge;

(3) the applicant has met all of the ongoing eligibility requirements under section 268.085;

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

(5) the applicant has not been held ineligible for unemployment benefits under section
deleted text begin 268.182 because of a false representation or concealment of facts deleted text end new text begin 268.183 new text end .

Sec. 8.

Minnesota Statutes 2016, section 268.105, subdivision 6, is amended to read:

Subd. 6.

Representation; fees.

(a) In any proceeding under subdivision 1 or 2, an
applicant or employer may be represented by any authorized representative.

Except for services provided by an attorney-at-law, no person may charge an applicant
a fee of any kind for advising, assisting, or representing an applicant in a hearing deleted text begin or deleted text end new text begin , new text end on
reconsideration new text begin , or in a proceeding under subdivision 7 new text end .

(b) An applicant may not be charged fees, costs, or disbursements of any kind in a
proceeding before an unemployment law judge, the Minnesota Court of Appeals, or the
Supreme Court of Minnesota.

(c) No attorney fees may be awarded new text begin , or costs or disbursements assessed, new text end against the
department as a result of any proceedings under this section.

Sec. 9.

Minnesota Statutes 2016, section 268.145, subdivision 1, is amended to read:

Subdivision 1.

Notification.

(a) Upon filing an application for unemployment benefits,
the applicant must be informed that:

(1) unemployment benefits are subject to federal and state income tax;

(2) there are requirements for filing estimated tax payments;

(3) the applicant may elect to have federal income tax withheld from unemployment
benefits;

(4) if the applicant elects to have federal income tax withheld, the applicant may, in
addition, elect to have Minnesota state income tax withheld; and

(5) at any time during the benefit year the applicant may change a prior election.

(b) If an applicant elects to have federal income tax withheld, the commissioner must
deduct ten percent for federal income tax. If an applicant also elects to have Minnesota state
income tax withheld, the commissioner must make an additional five percent deduction for
state income tax. Any deleted text begin amounts deleted text end new text begin amount new text end deducted deleted text begin or offset deleted text end under deleted text begin sections 268.155, 268.18,
and 268.184 have deleted text end new text begin section 268.085 has new text end priority over any amounts deducted under this section.
Federal income tax withholding has priority over state income tax withholding.

(c) An election to have income tax withheld may not be retroactive and only applies to
unemployment benefits paid after the election.

Sec. 10.

Minnesota Statutes 2017 Supplement, section 268.18, subdivision 5, is amended
to read:

Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of
unemployment benefits, including any penalties and interest, is not an election of a method
of recovery.

(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter
under section 176.361 is not an election of a remedy and does not prevent the commissioner
from determining an applicant ineligible for unemployment benefits deleted text begin or taking action under
section 268.183 deleted text end .

Sec. 11. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes is instructed to make the following changes in Minnesota Statutes:
new text end

new text begin (1) change the term "fraud" to "misrepresentation" in sections 268.085, subdivision 2,
and 268.186, subdivision 1;
new text end

new text begin (2) delete the term "bona fide" wherever it appears in section 268.035;
new text end

new text begin (3) replace the term "under" with "subject to" in section 268.047, subdivision 2, clause
(8);
new text end

new text begin (4) replace the term "displays clearly" with "shows" in chapter 268;
new text end

new text begin (5) replace the term "entire" with "hearing" in section 268.105;
new text end

new text begin (6) replace "24 calendar months" with "eight calendar quarters" in section 268.052,
subdivision 2.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 268.053, subdivisions 4 and 5, new text end new text begin are repealed.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, articles 5 to 9 are effective September 16, 2018.
new text end

APPENDIX

Repealed Minnesota Statutes: S3945-1

268.053 PAYMENT TO TRUST FUND BY NONPROFIT ORGANIZATIONS.

Subd. 4.

Application.

For purposes of this section, a nonprofit organization is an organization, or group of organizations, described in United States Code, title 26, section 501(c)(3) of the Internal Revenue Code that is exempt from income tax under section 501(a).

Subd. 5.

Compromise.

The compromise authority set out in section 268.067 applies to this section.