Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 516-S.F.No. 2395 
           An act relating to unemployment compensation; making 
          various technical changes; regulating eligibility of 
          conservation corps members and entertainers; 
          increasing the income disregard; regulating 
          eligibility for persons receiving holiday pay; 
          regulating administrative hearings; providing for data 
          sharing; appropriating certain federal money; amending 
          Minnesota Statutes 1988, sections 268.08, subdivision 
          3; 268.10, subdivision 9; and 268.12, subdivision 13; 
          Minnesota Statutes 1989 Supplement, sections 84.965, 
          subdivision 2; 84.98, subdivision 5; 268.07, 
          subdivision 2; 268.12, subdivision 12; 270B.14, 
          subdivision 8; and 290.92, subdivision 21.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:  
    Section 1.  Minnesota Statutes 1989 Supplement, section 
84.965, subdivision 2, is amended to read:  
    Subd. 2.  [CORPS MEMBER STATUS; FEES.] All camp staff 
except camp directors in the young adult program are corps 
members.  Corps members are not eligible covered for 
unemployment compensation or if their services are excluded 
under section 268.04, subdivision 12, and they are not eligible 
for other benefits except workers' compensation, and they.  The 
corps members are not employees of the state of Minnesota within 
the meaning of section 43A.02, subdivision 21.  The commissioner 
may charge a fee for any service performed by the corps.  
    Sec. 2.  Minnesota Statutes 1989 Supplement, section 84.98, 
subdivision 5, is amended to read:  
    Subd. 5.  [CORPS MEMBER STATUS.] Minnesota conservation 
corps members are not eligible covered for unemployment 
compensation or if their services are excluded under section 
268.04, subdivision 12, and they are not eligible for other 
benefits except workers' compensation, and.  The corps members 
are not employees of the state within the meaning of section 
43A.02, subdivision 21.  
    Sec. 3.  Minnesota Statutes 1989 Supplement, section 
268.07, subdivision 2, is amended to read:  
    Subd. 2.  [WEEKLY BENEFIT AMOUNT AND DURATION.] (a) To 
establish a benefit year for unemployment insurance benefits, 
effective after January 1, 1988, and thereafter, an individual 
must have:  
    (1) wage credits in two or more calendar quarters of the 
individual's base period; 
    (2) minimum total base period wage credits equal to the 
high quarter wages multiplied by 1.25; 
    (3) high quarter wage credits of not less than $1,000; and 
    (4) performed work in 15 or more calendar weeks in the base 
period.  
    (b) If the commissioner finds that an individual has 
sufficient wage credits and weeks worked within the base period 
to establish a valid claim, the weekly benefit amount payable to 
the individual during the individual's benefit year shall be 
equal to 1/26 of the individual's high quarter wage credits, 
rounded to the next lower whole dollar.  
    (c) Notwithstanding paragraph (b), the maximum weekly 
benefit amount of claims for benefits which establish a benefit 
year subsequent to July 1, 1979, shall be a percentage of the 
average weekly wage as determined under paragraphs (d) and (e).  
    (d) On or before June 30 of each year the commissioner 
shall determine the average weekly wage for purposes of 
paragraph (c) paid by employers subject to sections 268.03 to 
268.24 in the following manner:  
    (1) The sum of the total monthly employment reported for 
the previous calendar year shall be divided by 12 to determine 
the average monthly employment.  
    (2) The sum of the total wages reported for the previous 
calendar year shall be divided by the average monthly employment 
to determine the average annual wage.  
    (3) The average annual wage shall be divided by 52 to 
determine the average weekly wage.  
    (e) The maximum weekly benefit amount for any claim filed 
during the 12-month period subsequent to June 30 of any year 
shall be determined on the basis of the unemployment fund 
balance on December 31 of the preceding year.  If the fund 
balance is less than $70,000,000 on that date, the maximum 
weekly benefit amount shall be 66-2/3 percent of the average 
weekly wage; if the fund balance is more than $70,000,000 but 
less than $100,000,000, the maximum weekly benefit amount is 66 
percent of the average weekly wage; if the fund balance is more 
than $100,000,000 but less than $150,000,000, the maximum weekly 
benefit amount is 65 percent of the average weekly wage; if the 
fund balance is more than $150,000,000 but less than 
$200,000,000, the maximum weekly benefit amount is 64 percent of 
the average weekly wage; if the fund balance is more than 
$200,000,000 but less than $250,000,000, the maximum weekly 
benefit amount is 63 percent of the average weekly wage; if the 
fund balance is more than $250,000,000 but less than 
$300,000,000, the maximum weekly benefit amount is 62 percent of 
the average weekly wage; if the fund balance is more than 
$300,000,000 but less than $350,000,000, the maximum weekly 
benefit amount is 61 percent of the average weekly wage; if the 
fund balance is more than $350,000,000, the maximum weekly 
benefit amount is 60 percent.  The maximum weekly benefit amount 
as determined under this paragraph computed to the nearest whole 
dollar shall apply to claims for benefits which establish a 
benefit year which begins subsequent to June 30 of each year.  
    (f) Any eligible individual shall be entitled during any 
benefit year to a total amount of benefits equal to one-third of 
the individual's total base period wage credits rounded to the 
next lower dollar, not to exceed 26 times the individual's 
weekly benefit amount.  
    (g) Each eligible individual who is unemployed in any week 
shall be paid with respect to such week a benefit in an amount 
equal to the individual's weekly benefit amount less that part 
of the individual's earnings, including holiday pay, payable to 
the individual with respect to such week which is in excess of 
$200 for earnings from service in the national guard or a United 
States military reserve unit and the greater of $25 $50 or 25 
percent of the earnings in other work; provided that no 
deduction may be made from the weekly benefit amount for 
earnings from service as a volunteer firefighter or volunteer 
ambulance service personnel.  Jury duty pay is not considered as 
earnings and shall not be deducted from benefits paid.  Such 
benefit, if not a whole dollar amount shall be rounded down to 
the next lower dollar amount.  
    Sec. 4.  Minnesota Statutes 1988, section 268.08, 
subdivision 3, is amended to read:  
    Subd. 3.  [NOT ELIGIBLE.] An individual shall not be 
eligible to receive benefits for any week with respect to which 
the individual is receiving, has received, or has filed a claim 
for remuneration in an amount equal to or in excess of the 
individual's weekly benefit amount in the form of 
    (1) termination, severance, or dismissal payment or wages 
in lieu of notice whether legally required or not; provided that 
if a termination, severance, or dismissal payment is made in a 
lump sum, the employer may allocate such lump sum payment over a 
period equal to the lump sum divided by the employee's regular 
pay while employed by such employer; provided any such payment 
shall be applied for a period immediately following the last day 
of work but not to exceed 28 calendar days; or 
    (2) vacation allowance paid directly by the employer for a 
period of requested vacation, including vacation periods 
assigned by the employer under the provisions of a collective 
bargaining agreement, or uniform vacation shutdown; or 
    (3) compensation for loss of wages under the workers' 
compensation law of this state or any other state or under a 
similar law of the United States, or under other insurance or 
fund established and paid for by the employer except that this 
does not apply to an individual who is receiving temporary 
partial compensation pursuant to section 176.101, subdivision 
3k; or 
    (4) 50 percent of the pension payments from any fund, 
annuity or insurance maintained or contributed to by a base 
period employer including the armed forces of the United States 
if the employee contributed to the fund, annuity or insurance 
and all of the pension payments if the employee did not 
contribute to the fund, annuity or insurance; or 
    (5) 50 percent of a primary insurance benefit under title 
II of the Social Security Act as amended, or similar old age 
benefits under any act of congress or this state or any other 
state; or 
    (6) holiday pay, in excess of $25.  
    Provided, that if such remuneration is less than the 
benefits which would otherwise be due under sections 268.03 to 
268.24, the individual shall be entitled to receive for such 
week, if otherwise eligible, benefits reduced by the amount of 
such remuneration; provided, further, that if the appropriate 
agency of such other state or the federal government finally 
determines that the individual is not entitled to such benefits, 
this provision shall not apply.  If the computation of reduced 
benefits, required by this subdivision, is not a whole dollar 
amount, it shall be rounded down to the next lower dollar amount.
    Sec. 5.  Minnesota Statutes 1988, section 268.10, 
subdivision 9, is amended to read:  
    Subd. 9.  [REPRESENTATION BY ATTORNEY.] In any proceeding 
under these sections before a referee or the commissioner, a 
party may be represented by an any agent or attorney, but no 
individual claiming.  Except for services provided by an 
attorney-at-law, a claimant for benefits shall not be charged 
fees of any kind in a proceeding before a referee, the 
commissioner, commissioner's representatives, or by any court or 
any officers thereof.  Any individual claiming benefits in any 
proceedings before the commissioner or representatives or a 
court may be represented by counsel or other duly authorized 
agent, except that said agent in any court proceedings under 
these sections, must be an attorney at law; but no counsel shall 
either charge or receive for the services more than an amount 
approved by the commissioner and no fees shall be collected from 
an individual claiming benefits by any agent unless the agent is 
an attorney at law.  
    Sec. 6.  Minnesota Statutes 1989 Supplement, section 
268.12, subdivision 12, is amended to read:  
    Subd. 12.  [INFORMATION.] Except as hereinafter otherwise 
provided, data gathered from any employing unit, employer or 
individual pursuant to the administration of sections 268.03 
to 268.24 268.231, and from any determination as to the benefit 
rights of any individual are private data on individuals or 
nonpublic data not on individuals as defined in section 13.02, 
subdivisions 9 and 12, and may not be disclosed except pursuant 
to this subdivision or a valid court order.  These data may be 
disseminated to and used by the following agencies without the 
consent of the subject of the data:  
    (a) State and federal agencies specifically authorized 
access to the data by state or federal law; 
    (b) Any agency of this or any other state; or any federal 
agency charged with the administration of an employment security 
law or the maintenance of a system of public employment offices; 
    (c) Local human rights groups within the state which have 
enforcement powers; 
    (d) The Minnesota department of revenue on an 
interchangeable basis with the department of jobs and training 
subject to the following restrictions and notwithstanding any 
law to the contrary:  
    (1) The department of revenue may shall have access to 
department of jobs and training private data on individuals and 
employing units nonpublic data not on individuals only to the 
extent necessary for proper enforcement of Minnesota tax laws; 
and 
    (2) The department of jobs and training shall have access 
to department of revenue individual income tax return data 
pertaining to the identity, whereabouts, employment, income, and 
property of an individual who:  owes or allegedly owes an 
obligation to the department of jobs and training; is subject to 
a benefit overpayment or fraud investigation; or is subject to 
an investigation, for possible criminal prosecution under this 
chapter.  Upon receipt of the data, the department of jobs and 
training may not disseminate the data to any other individual or 
agency except in connection with a prosecution for violation of 
the provisions of sections 268.03 to 268.24.  Information 
pertaining to corporations or other employing units shall be 
disclosed to the extent necessary for the proper enforcement of 
this chapter; 
    (e) Public and private agencies responsible for 
administering publicly financed assistance programs for the 
purpose of monitoring the eligibility of the program's 
recipients; 
    (f) The department of labor and industry on an 
interchangeable basis with the department of jobs and training 
subject to the following limitations and notwithstanding any law 
to the contrary:  
    (1) the department of jobs and training shall have access 
to private data on individuals and nonpublic data not on 
employers, individuals, and employing units for uses consistent 
with the administration of its duties under sections 268.03 
to 268.24 268.231; and 
    (2) the department of labor and industry shall have access 
to private data on individuals and nonpublic data not on 
employers, individuals, and employing units for uses consistent 
with the administration of its duties under state law; 
    (g) The department of trade and economic development may 
have access to private data on individual employing units and 
nonpublic data as defined in section 13.02, subdivision 9, not 
on individual employing units for its internal use only; when 
received by the department of trade and economic development, 
the data remain private data on individuals or nonpublic data; 
    (h) Local and state welfare agencies for monitoring the 
eligibility of the data subject for assistance programs, or for 
any employment or training program administered by those 
agencies, whether alone, in combination with another welfare 
agency, or in conjunction with the department of jobs and 
training; and 
    (i) Local, state and federal law enforcement agencies for 
the sole purpose of ascertaining the last known address and 
employment location of the data subject, provided the data 
subject is the subject of a criminal investigation.  
    Data on individuals, employers, and employing units which 
are collected, maintained, or used by the department in an 
investigation pursuant to section 268.18, subdivision 3, are 
confidential as to data on individuals and protected nonpublic 
data not on individuals as defined in section 13.02, 
subdivisions 3 and 13, as to nonindividual employers and 
employing units, and shall not be disclosed except pursuant to 
statute or valid court order or to a party named in a criminal 
proceeding, administrative or judicial, for preparation of a 
defense.  
    Data on individuals, employers, and employing units which 
are collected, maintained, or used by the department in the 
adjudication of a separation or eligibility issue pursuant to 
the administration of section 268.10, subdivision 2, are private 
as to data on individuals and protected nonpublic data as to 
nonindividual employers and employing units as defined in 
section 13.02, subdivisions 3 and 13, and shall not be disclosed 
except pursuant to the administration of section 268.10, 
subdivisions 3 to 8, or pursuant to a valid court order.  
    Tape recordings and transcripts of recordings of 
proceedings before a referee of the department and exhibits 
offered by parties other than the department and received into 
evidence at those proceedings are private data on individuals 
and nonpublic data not on individuals and shall be disclosed 
only pursuant to the administration of section 268.10, 
subdivisions 3 to 8, or pursuant to a court order.  
    Aggregate data about employers compiled from individual job 
orders placed with the department of jobs and training are 
private data on individuals and nonpublic data not on 
individuals as defined in section 13.02, subdivision 
subdivisions 9 and 12, if the commissioner determines that 
divulging the data would result in disclosure of the identity of 
the employer.  The general aptitude test battery and the 
nonverbal aptitude test battery as administered by the 
department are also classified as private data on individuals or 
nonpublic data.  
    Data on individuals collected, maintained or created 
because an individual applies for benefits or services provided 
by the energy assistance and weatherization programs 
administered by the department of jobs and training is private 
data on individuals and shall not be disseminated except 
pursuant to section 13.05, subdivisions 3 and 4.  
    Data gathered by the department pursuant to the 
administration of sections 268.03 to 268.24 268.231 shall not be 
made the subject or the basis for any suit in any civil 
proceedings, administrative or judicial, unless the action is 
initiated by the department.  
    Sec. 7.  Minnesota Statutes 1988, section 268.12, 
subdivision 13, is amended to read:  
    Subd. 13.  [DETERMINATIONS.] (1) An official, designated by 
the commissioner, upon the commissioner's own motion or upon 
application of an employing unit, shall determine if an 
employing unit is an employer within the meaning of this chapter 
or as to whether services performed for it constitute employment 
within the meaning of this chapter, and shall notify the 
employing unit of the determination.  The determination shall be 
final unless the employing unit, within 30 days after the 
mailing of notice of the determination to the employing unit's 
last known address, files a written appeal from it. 
    (2) The commissioner shall designate one or more referees 
to conduct hearings on appeals.  The employing unit and any 
claimant whose filed claim for benefits may be affected by a 
determination issued under clause (1) shall be interested 
parties to an appeal.  The referee shall fix a time and place 
within this state for the hearing and give interested parties 
written notice of it, by mail, not less than ten days prior to 
the time of the hearing.  In the discharge of the duties imposed 
by this subdivision, the referee may administer oaths and 
affirmations, take depositions, certify to official acts, and 
issue subpoenas to compel the attendance of witnesses and the 
production of books, papers, correspondence, memoranda, and 
other records deemed necessary as evidence in connection with 
the subject matter of the hearing.  The written report of any 
employee of the department of jobs and training, made in the 
regular course of the performance of the employee's duties, 
shall be competent evidence of the facts contained in it and 
shall be prima facie correct, unless refuted by other credible 
evidence.  
    (3) Upon the conclusion of the hearing, the referee shall 
serve upon the interested parties by mail findings of fact and 
decision.  The decision of the referee, together with the 
findings of fact and reasons in support of them, is final unless 
an interested party, within 30 days after the mailing of a copy 
of it to the interested parties' last known addresses, files an 
appeal with the commissioner, or unless the commissioner, within 
30 days after mailing of the decision, on the commissioner's own 
motion orders the matter certified to the commissioner for 
review.  Appeal from and review by the commissioner of the 
decision of the referee shall be in the manner provided by 
rule.  The commissioner may without further hearing affirm, 
modify, or set aside the findings of fact or decision, or both, 
of the referee on the basis of the evidence previously submitted 
in the case, or direct the taking of additional evidence.  The 
commissioner may disregard the findings of fact of the referee 
and examine the testimony taken and make any findings of fact as 
the evidence taken before the referee may, in the judgment of 
the commissioner, require, and make any decision as the facts 
found by the commissioner require.  The commissioner shall 
notify the employing unit of the commissioner's findings and 
decision by mail, mailed to the interested parties' last known 
addresses.  The decision of the commissioner is final unless 
judicial review of it is sought as provided by this 
subdivision.  Any interested party to a proceeding before the 
commissioner may obtain a transcript of the testimony taken 
before the referee upon payment to the commissioner of the cost 
of the transcript at the rate of ten cents per 100 words.  
    (4) The court of appeals may, by writ of certiorari to the 
commissioner, review all questions of law and fact presented by 
the record in accordance with chapter 14, and section 268.10, 
subdivision 8.  The commissioner shall not be required to 
certify the record to the court unless the party commencing the 
proceedings for review pays to the commissioner the cost of 
certification of the record at the rate of ten cents per 100 
words less any amount previously paid by the party for a 
transcript.  The commissioner shall, upon receipt of the 
payment, prepare and certify to the court a true and correct 
typewritten copy of all matters contained in the record.  The 
costs collected by the commissioner shall be deposited in the 
economic security administration fund provided for in section 
268.15.  
    (5) A final decision of the commissioner or referee, in the 
absence of appeal, is conclusive for all the purposes of 
sections 268.03 to 268.24 268.231 except as otherwise provided, 
and, together with the records therein made, shall be admissible 
in any subsequent judicial proceeding involving liability for 
contributions.  A The final decision of the commissioner or 
referee on an appeal may be introduced in any proceeding 
involving a claim for benefits.  
    (6) In the event a final decision of the commissioner or 
referee on an appeal determines the amount of contributions due 
under sections 268.03 to 268.24 268.231, then, if the amount, 
together with interest and penalties, is not paid within 30 days 
after the decision, the provisions of section 268.161 shall 
apply.  The commissioner shall proceed thereunder, substituting 
a certified copy of the final decision in place of the 
contribution report.  
    Sec. 8.  Minnesota Statutes 1989 Supplement, section 
270B.14, subdivision 8, is amended to read:  
    Subd. 8.  [EXCHANGE BETWEEN DEPARTMENTS OF JOBS AND 
TRAINING, LABOR AND INDUSTRY, AND REVENUE.] Notwithstanding any 
law to the contrary, the departments of jobs and training, labor 
and industry, and revenue may exchange information on a 
reciprocal basis.  Data that may be disclosed are limited to 
data used in determining whether a business is an employer or a 
contracting agent.  
    Sec. 9.  Minnesota Statutes 1989 Supplement, section 
290.92, subdivision 21, is amended to read:  
    Subd. 21.  [EXTENSION OF WITHHOLDING NOTICE TO UNEMPLOYMENT 
COMPENSATION BENEFITS CLAIMANTS.] (a) At the time an individual 
makes a claim for unemployment compensation benefits, the 
commissioner of jobs and training must notify the individual 
that the individual's unemployment compensation may be subject 
to state income taxes depending on the individual's other income 
and that the individual may elect to have the payments subject 
to withholding under this section.  If the individual does not 
notify the commissioner of jobs and training that the individual 
elects to have the payments not be subject to withholding within 
five working days of receipt of the notice from the 
commissioner, unemployment compensation benefits paid to the 
individual shall be treated as if it were a payment of wages by 
an employer to an employee for a payroll period.  
    (b) For purposes of this section, any supplemental 
unemployment compensation benefit paid to an individual to the 
extent includable in such individual's Minnesota gross income, 
shall be treated as if it were a payment of wages by an employer 
to an employee for a payroll period.  
    Sec. 10.  [APPROPRIATION OF REED ACT MONEY.] 
    (a) $200,000 of funds made available to the state under 
United States Code, title 42, section 1103, is appropriated from 
the unemployment compensation fund to the commissioner of jobs 
and training and is available for obligation until two years 
after the date of enactment of this section for use in the 
procurement of electronic data processing equipment by the 
department of jobs and training for administration of the 
unemployment compensation program and the system of public 
employment offices. 
    (b) The amount that may be obligated during a fiscal year 
is limited as required by United States Code, title 42, section 
1104(d)(2)(D). 
    Sec. 11.  [EFFECTIVE DATE.] 
    Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10 are effective the 
day following final enactment.  Section 3 is effective July 1, 
1990. 
    Presented to the governor April 24, 1990 
    Signed by the governor April 26, 1990, 10:35 p.m.