SF 542

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:13am

A bill for an act
relating to economic development; extending MFIP assistance; modifying
unemployment compensation; augmenting foreclosure provisions; establishing a
jobs creation program; limiting certain layoffs; appropriating money; amending
Minnesota Statutes 2008, sections 256J.42, by adding a subdivision; 268.035,
subdivisions 4, 21a; 268.07, subdivision 1; 268.085, subdivision 15; 504B.151;
proposing coding for new law in Minnesota Statutes, chapter 582.

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

Section 1.

Minnesota Statutes 2008, section 256J.42, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Temporary 60-month time limit extension. new text end

new text begin For assistance units that
have reached the 60-month time limit under subdivision 1 or assistance units that will
reach the 60-month time limit under subdivision 1 before the sunset of this subdivision,
MFIP benefits are extended to eligible assistance units until the sunset of this subdivision.
This subdivision sunsets July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2008, section 268.035, subdivision 4, is amended to read:

Subd. 4.

Base period.

new text begin (a) new text end "Base period new text begin , new text end " new text begin unless otherwise provided in this
subdivision, new text end means new text begin the last 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 last completed calendar quarter. The base
period under this paragraph is as follows new text end :

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

deleted text begin (1) deleted text end new text begin (b) If an application for unemployment benefits has an effective date that is
during the month following the last completed calendar quarter, then the base period is
new text end the first four of the last five completed calendar quarters before the effective date of an
applicant's application for unemployment benefits new text begin . The base period under this paragraph
is new text end as deleted text begin set forth below deleted text end new text begin follows new text end :

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

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

deleted text begin (i) deleted text end new text begin (1) new text end if an applicant was compensated for a loss of work of seven to 13 weeks, the
base period is the first four of the last six completed calendar quarters before the effective
date of the application for unemployment benefits;

deleted text begin (ii) deleted text end new text begin (2) new text end if an applicant was compensated for a loss of work of 14 to 26 weeks, the
base period is the first four of the last seven completed calendar quarters before the
effective date of the application for unemployment benefits;

deleted text begin (iii) deleted text end new text begin (3) new text end if an applicant was compensated for a loss of work of 27 to 39 weeks,
the base period is the first four of the last eight completed calendar quarters before the
effective date of the application for unemployment benefits; and

deleted text begin (iv) deleted text end new text begin (4) new text end if an applicant was compensated for a loss of work of 40 to 52 weeks, the
base period is the first four of the last nine completed calendar quarters before the effective
date of the application for unemployment benefits deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (3) if the applicant has insufficient wage credits to establish a benefit account under
clause (1), an alternate base period of the last four completed calendar quarters before the
date the applicant's application for unemployment benefits is effective will be used. This
base period can be used only 30 calendar days or more after the end of the last completed
quarter, when a wage detail report has been, or should have been, filed for that quarter
under section 268.044; and
deleted text end

deleted text begin (4) deleted text end new text begin (d) new text end No base period under deleted text begin clause (1), (2), or (3) deleted text end new text begin paragraph (a), (b), or (c) new text end may
include wage credits upon which a prior benefit account was established.

new text begin (e) Notwithstanding paragraph (a), the base period calculated under paragraph (b)
using the first four of the last five complete calendar quarters before the effective date of
the applicant's application for unemployment benefits must be used for an applicant if the
applicant has more wage credits under that base period than under the base period in
paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for unemployment
benefits filed effective on or after July 1, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 268.035, subdivision 21a, is amended to read:

Subd. 21a.

Reemployment assistance training.

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

(1) new text begin a new text end reasonable deleted text begin and deleted text end new text begin opportunity for new text end suitable employment for the applicant does not
exist in the labor market area and deleted text begin it is necessary that the applicant receive deleted text end new text begin additional new text end
training deleted text begin in order to obtain deleted text end new text begin will assist the applicant in obtaining new text end suitable employment;

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

(3) the training is vocational deleted text begin in nature deleted text end or short term academic training deleted text begin vocationally deleted text end
directed to an occupation or skill deleted text begin for which there are reasonable deleted text end new text begin that will substantially
enhance the new text end employment opportunities available to the applicant new text begin in the applicant's labor
market area new text end ;

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

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

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

(c) new text begin Apprenticeship training provided in order to meet the requirements of an
apprenticeship program under chapter 178 is considered "reemployment assistance
training."
new text end

new text begin (d) new text end An applicant is considered in reemployment assistance training only if the
training course has actually started or is scheduled to start within 30 calendar days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for determinations and appeal
decisions issued on or after the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2008, 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. new text begin The commissioner shall accept a valid individual taxpayer
identification number from an applicant who is applying for benefits. new text end If the applicant is
not unemployed at the time of the application or fails to provide all requested information,
the communication is not considered an application for unemployment benefits.

(b) The commissioner shall examine each application for unemployment benefits to
determine the base period and the benefit year, and based upon all the covered employment
in the base period the commissioner shall determine the weekly unemployment benefit
amount available, if any, and the maximum amount of unemployment benefits available, if
any. The determination is known as the 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 information for the applicant as
provided for in section 268.044, or provided erroneous information, the commissioner
may accept an applicant certification as to wage credits, based upon the applicant's records,
and issue a determination of benefit account.

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

(e) 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 considered 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.

Sec. 5.

Minnesota Statutes 2008, section 268.085, subdivision 15, is amended to read:

Subd. 15.

Available for suitable employment defined.

(a) "Available for suitable
employment" means an applicant is ready and willing to accept suitable employment in
the labor market area. The attachment to the work force must be genuine. An applicant
may restrict availability to suitable employment, but there must be no other restrictions,
either self-imposed or created by circumstances, temporary or permanent, that prevent
accepting suitable employment.

(b) new text begin Unless the applicant is in reemployment assistance training, new text end to be considered
"available for suitable employment," a student new text begin who has regularly scheduled classes new text end must
be willing to deleted text begin quit school deleted text end new text begin discontinue classes new text end to accept suitable employment new text begin when:
new text end

new text begin (1) class attendance restricts the applicant from accepting suitable employment; and
new text end

new text begin (2) the applicant is unable to change the scheduled class or make other arrangements
that excuse the applicant from attending class new text end .

(c) An applicant who is absent from the labor market area for personal reasons, other
than to search for work, is not "available for suitable employment."

(d) An applicant who has restrictions on the hours of the day or days of the week
that the applicant can or will work, that are not normal for the applicant's usual occupation
or other suitable employment, is not "available for suitable employment." An applicant
must be available for daytime employment, if suitable employment is performed during
the daytime, even though the applicant previously worked the night shift.

(e) An applicant must have transportation throughout the labor market area to be
considered "available for suitable employment."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for determinations and appeal
decisions issued on or after the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2008, section 504B.151, is amended to read:

504B.151 RESTRICTION ON RESIDENTIAL LEASE TERMS FOR
BUILDINGS IN FINANCIAL DISTRESS; REQUIRED NOTICE OF PENDING
FORECLOSURE new text begin ; RIGHTS OF TENANTS OF FORECLOSED PROPERTY new text end .

Subdivision 1.

Limitation on lease and notice to tenant.

(a) Once a landlord
has received notice of a contract for deed cancellation under section 559.21 or notice of
a mortgage foreclosure sale under chapter 580 or 582, the landlord may only enter into
(i) a periodic residential lease agreement with a term of not more than two months or
the time remaining in the contract cancellation period or the mortgagor's redemption
period, whichever is less or (ii) a fixed term residential tenancy not extending beyond the
cancellation period or the landlord's period of redemption until:

(1) the contract for deed has been reinstated or paid in full;

(2) the mortgage default has been cured and the mortgage reinstated;

(3) the mortgage has been satisfied;

(4) the property has been redeemed from a foreclosure sale; or

(5) a receiver has been appointed.

(b) Before entering into a lease under this section and accepting any rent or security
deposit from a tenant, the landlord must notify the prospective tenant in writing that the
landlord has received notice of a contract for deed cancellation or notice of a mortgage
foreclosure sale as appropriate, and the date on which the contract cancellation period or
the mortgagor's redemption period ends. new text begin The landlord must also inform the prospective
tenant of the tenant's right to continued utility services if the landlord defaults on utility
payments during the foreclosure process.
new text end

(c) This section does not apply to a manufactured home park as defined in section
327C.01, subdivision 5.

Subd. 2.

Exception allowing a longer term lease.

deleted text begin This section deleted text end new text begin Subdivision 1 new text end
does not apply if:

(1) the holder or the mortgagee agrees not to terminate the tenant's lease other than
for lease violations for at least one year from the commencement of the tenancy; and

(2) the lease does not require the tenant to prepay rent for any month commencing
after the end of the cancellation or redemption period, so that the rent payment would be
due prior to the end of the cancellation or redemption period.

For the purposes of this section, a holder means a contract for deed vendor or a
holder of the sheriff's certificate of sale or any assignee of the contract for deed vendor or
of the holder of the sheriff's certificate of sale.

Subd. 3.

Transfer of tenancy by operation of law.

(a) A tenant who enters into a
lease under subdivision 2 is:

(1) deemed by operation of law to become the tenant of the holder immediately upon
the holder succeeding to the interest of the landlord under the lease; and

(2) bound to the holder under all the provisions of the lease for either the balance of
the lease term or for one year after the start of the tenancy, whichever occurs first.

(b) A tenant who becomes the tenant of the holder under this subdivision is not
obligated to pay rent to the holder until the holder mails, by first class mail to the tenant at
the property address, written notice that the holder has succeeded to the interest of the
landlord. A letter from the holder to the tenant to that effect is prima facie evidence that
the holder has succeeded to the interest of the landlord.

Subd. 4.

Holder not bound by certain acts.

A holder succeeding to an interest in
a lease lawfully entered into under subdivision 2 is not:

(1) liable for any act or omission of any prior landlord;

(2) subject to any offset or defense which the tenant had against any prior landlord; or

(3) bound by any modification of the lease entered into under subdivision 2, unless
the modification is made with the holder's consent.

new text begin Subd. 5. new text end

new text begin Rights of tenant of foreclosed property. new text end

new text begin (a) When a holder takes over a
rental property as the result of a foreclosure:
new text end

new text begin (1) a tenant is deemed by operation of law to become the tenant of the holder; and
new text end

new text begin (2) all leases, verbal or written, and all terms and conditions of those agreements
shall be transferred to the holder.
new text end

new text begin (b) A holder shall:
new text end

new text begin (1) maintain as rental property, property that was used as rental property by the
landlord;
new text end

new text begin (2) offer renewal leases to tenants of the foreclosed property; and
new text end

new text begin (3) keep affordable rent levels in place.
new text end

new text begin Subd. 6. new text end

new text begin Eviction. new text end

new text begin Notwithstanding any other law to the contrary, a holder must not
begin an eviction action against a tenant without cause.
new text end

new text begin Subd. 7. new text end

new text begin Termination of tenancy. new text end

new text begin Except for lease violations, a holder must not
terminate the tenancy of a tenant of foreclosed property without cause.
new text end

new text begin Subd. 8. new text end

new text begin Periodic leases. new text end

new text begin A holder must offer a fixed-term lease option to a tenant
with a periodic lease in place at the time the tenant becomes a tenant of the holder.
new text end

new text begin Subd. 9. new text end

new text begin Applicability. new text end

new text begin The provisions of subdivisions 5 to 8 apply to all tenants
regardless of when a tenant entered into a rental agreement with the property owner or at
what stage the foreclosure process was in when the rental agreement was entered.
new text end

Sec. 7.

new text begin [582.33] FORECLOSURE MORATORIUM.
new text end

new text begin Subdivision 1. new text end

new text begin Emergency declared to exist. new text end

new text begin The legislature of the state of
Minnesota declares that a public economic emergency exists in the state of Minnesota
due to the increase in foreclosure rates. The legislature declares that these conditions
have created a housing emergency that justifies legislation creating a moratorium on
mortgage foreclosures.
new text end

new text begin Subd. 2. new text end

new text begin Court stay. new text end

new text begin In an action to foreclose a mortgage upon residential property
under chapter 580 or 581, in which a judgment of foreclosure has not been entered by the
effective date of this section, the district court having jurisdiction over the matter, upon
motion of a defendant, shall order the action stayed for two years after the entry of the
stay. The court may order that certain conditions relating to the property are met during
the stay, including, but not limited to, possession of the property, payments by the person
in possession, and preservation of the property.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin This section applies only to mortgages executed before
the effective date of this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin SPECIAL STATE EMERGENCY UNEMPLOYMENT COMPENSATION
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin Federal law currently provides for a federally funded
extension of unemployment insurance benefits for applicants who have exhausted
entitlement to regular Minnesota unemployment insurance benefits. But, because federal
law contains a special requirement that an applicant has earned a certain amount of base
period insured wages, a significant group of applicants who exhausted their regular
Minnesota unemployment insurance benefits do not qualify for the federally funded
extension. The purpose of this section is to provide a state-funded extension to that group.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) Special state emergency unemployment insurance benefits
are payable to an applicant who does not qualify for a federally funded extension
of unemployment insurance benefits solely because the applicant does not meet the
requirement under section 4001(d)(2)(a) of the federal Supplemental Appropriations
Act of 2008 that an applicant have wage credits of not less than 40 times the applicant's
weekly benefit amount.
new text end

new text begin (b) Except as provided in paragraph (a), all requirements for federally funded
extended unemployment benefits and all requirements of Minnesota Statutes, chapter
268, must be met in order for the applicant to be eligible for special state emergency
unemployment insurance benefits.
new text end

new text begin (c) Special state emergency unemployment insurance benefits are payable in the
same amounts, the same duration, and for the same time period as provided for under the
federal Supplemental Appropriations Act of 2008, and any later amendments, but shall
be no less than 13 times the applicant's weekly special state emergency unemployment
insurance benefit amount.
new text end

new text begin Subd. 3. new text end

new text begin Payment from trust fund. new text end

new text begin Special state emergency unemployment
insurance benefits are payable from the Minnesota unemployment insurance trust fund.
Special state emergency unemployment insurance benefits will not be used in computing
the future unemployment insurance tax rate of a taxpaying employer nor will they be
charged to the reimbursing account of government or nonprofit employers.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires on June 30, 2010, and no benefits shall be
paid under this section for a week beginning after that date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the Sunday following final enactment
and applies only to weeks of unemployment after that date.
new text end

Sec. 9. new text begin JOBS CREATION GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic
development shall develop and implement a jobs creation grant program to make grants
available to cities and towns for public and private projects that will generate new jobs
and produce a stronger state economy.
new text end

new text begin Subd. 2. new text end

new text begin Fund distribution. new text end

new text begin In distributing funds, the commissioner shall give
priority consideration to projects that are available to begin immediately and to projects
that promote environmental sustainability and a green economy.
new text end

new text begin Subd. 3. new text end

new text begin Funding. new text end

new text begin To the extent that the commissioner receives funds for this
purpose in fiscal year 2009, funding for the jobs creation grant program shall be done
through federal stimulus dollars. If federal stimulus dollars are not available, funds shall
come from state sources.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin $....... is appropriated from the general fund to the
commissioner of employment and economic development to develop and implement
a jobs creation grant program. This appropriation is only available if federal stimulus
dollars are not available. This appropriation is available until expended.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text begin STATE EMPLOYEE LAYOFFS.
new text end

new text begin For the 2010 and 2011 biennium, in order to prevent increased unemployment and to
protect jobs, the legislature shall not mandate layoffs of state employees, including, but
not limited to, employees of the University of Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

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